F&G Annuities & Life Inc (FG) Q3 2024 Earnings Call Highlights: Record Sales and ...

In This Article:

  • Gross Sales: $3.9 billion in Q3, up 39% year-over-year; $11.8 billion year-to-date, up 30% over the first nine months of 2023.

  • Retail Sales: $3.5 billion in Q3, nearly double the prior year quarter; $9.5 billion year-to-date.

  • Pension Risk Transfer Sales: Over $300 million in Q3; $2.1 billion for the first 10 months of 2024.

  • Net Sales: $2.4 billion, increased 4% over the prior year quarter.

  • Assets Under Management: $62.9 billion at the end of Q3, up 20% year-over-year.

  • Retained Assets Under Management: $52.5 billion, an 11% increase over Q3 2023.

  • Fixed Income Yield: 4.66% in Q3, 15 basis points higher than Q3 2023.

  • Adjusted Net Earnings: $156 million or $1.22 per share in Q3.

  • Adjusted Net Earnings (Excluding Significant Items): $179 million in Q3, up 21% year-over-year.

  • Adjusted ROA (Excluding Significant Items): 132 basis points in Q3.

  • Equity Attributable to Common Shareholders (Excluding AOCI): $5.3 billion or $42.28 per share.

  • Debt to Capitalization Ratio (Excluding AOCI): 26.5%.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • F&G Annuities & Life Inc (NYSE:FG) reported strong gross sales of $3.9 billion in the third quarter, up 39% from the prior year.

  • Retail sales from agency, bank, and broker dealer channels reached a record $3.5 billion in the third quarter.

  • Assets under management grew to a record $62.9 billion, a 20% increase over the third quarter of 2023.

  • The investment portfolio is diversified and high quality, with 96% of fixed maturities being investment grade.

  • The company has successfully launched Ryla with four broker dealer distribution partners, with potential for significant sales growth in the medium term.

Negative Points

  • Elevated surrender activity due to higher interest rates has impacted earnings, although the company has adjusted assumptions accordingly.

  • There were no new funding agreements in the third quarter, indicating potential challenges in capital allocation priorities.

  • The impact of lower interest rates on sales remains a concern, although demographic tailwinds are expected to mitigate this.

  • The company faces competition in the pension risk transfer market, which could affect future sales growth.

  • The alternative investments portfolio has underperformed long-term assumptions recently, impacting overall returns.

Q & A Highlights

Q: How do you view the opportunity to grow flow reinsurance with existing partners into new products, especially with Ryla being added? A: Christopher Blunt, CEO: We haven't set a specific target for reinsurance. It's more about the capacity available, product category fit, and how creative it is. Currently, we don't see constraints on flow reinsurance availability, and we're optimistic about its impact on margins.

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