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F&G Annuities & Life Inc (FG)
NYSE:FG
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F&G Annuities & Life Inc
(NYSE:FG)
70Outperform
F&G Annuities & Life Inc (FG) vs. S&P 500 (SPY)
Market Cap
$4.75B
Dividend Yield2.41%
Average Volume (3M)285.05K
Price to Earnings (P/E)7.4
Beta (1Y)1.55
Revenue Growth27.35%
EPS GrowthN/A
CountryUS
Employees1,338
SectorFinancial
Sector Strength81
IndustryInsurance - Life
Share Statistics
EPS (TTM)4.75
Shares Outstanding134,773,650
10 Day Avg. Volume668,012
30 Day Avg. Volume285,053
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.79
Price to Cash Flow (P/CF)0.80
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.00Price Target Upside33.48% Upside
Rating ConsensusHold
Number of Analyst Covering1
F&G Annuities & Life Inc Business Overview & Revenue Model
Company DescriptionF&G Annuities & Life, Inc. provides fixed annuities and life insurance products. It serves retail annuity and life customers, as well as institutional clients. The company was founded in 1959 and is headquartered in Des Moines, Iowa. F&G Annuities & Life, Inc. is a subsidiary of Fidelity National Financial, Inc.
How the Company Makes MoneyF&G Annuities & Life Inc generates revenue primarily through the sale of its annuity and life insurance products. The company earns money by collecting premiums from policyholders, which are then invested to generate returns. These investments are typically managed in a way to ensure that the company can meet its obligations to policyholders while also earning a profit. Key revenue streams include income from policyholder premiums, investment income from the management of invested assets, and fees associated with managing and servicing insurance contracts. Significant partnerships with financial advisors and brokers also contribute to its earnings by expanding the company's distribution network and customer reach.
F&G Annuities & Life Inc Financial Statement Overview
Summary
F&G Annuities & Life Inc displays a strong financial position with substantial revenue growth from $1.43 billion in 2020 to $5.74 billion in 2024. Profitability improved significantly, with a net profit margin of 10.83% in 2024 and strong EBIT margins. Cash flow management is excellent, with a robust free cash flow of $5.975 billion in 2024. The balance sheet is solid, though the low equity ratio suggests potential risk from liabilities.Income Statement
F&G Annuities & Life Inc has demonstrated significant revenue growth, with Total Revenue increasing from $1.43 billion in 2020 to $5.74 billion in 2024. The Gross Profit margin remains strong at 100% due to no cost of goods sold. Net Profit Margin improved to 10.83% in 2024 from a negative margin in 2023, indicating a turnaround in profitability. EBIT and EBITDA margins also reflected robust performance, particularly with the EBIT margin increasing to 15.49% in 2024. The strong revenue growth and improved profitability metrics contribute to a high score.85
Very Positive
Balance Sheet
The company maintains a solid equity position with Stockholders' Equity increasing to $3.95 billion in 2024. The Debt-to-Equity ratio is low at 0.55, indicating prudent leverage management. However, the Return on Equity (ROE) is at a moderate 15.75%, suggesting scope for more efficient equity utilization. The Equity Ratio is low at 4.64%, reflecting a high reliance on liabilities, which could pose risks if not managed carefully.72
Positive
Cash Flow
F&G Annuities & Life Inc has exhibited impressive cash flow performance, with Free Cash Flow growing consistently to $5.975 billion in 2024. The Operating Cash Flow to Net Income ratio is exceptionally strong at 9.64, indicating robust cash generation relative to net earnings. The Free Cash Flow to Net Income ratio is also high at 9.61, reinforcing the company's strong cash conversion capabilities. These metrics highlight excellent cash flow management, leading to a high score.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.74B | 4.54B | 2.23B | 3.37B | 1.43B | Gross Profit |
| 5.74B | 4.39B | 2.13B | 3.37B | 1.43B | EBIT |
| 890.00M | 62.00M | 627.00M | 1.05B | -97.00M | EBITDA |
| 1.46B | 474.00M | 0.00 | 0.00 | 139.00M | Net Income Common Stockholders |
| 622.00M | -58.00M | 481.00M | 865.00M | -47.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.58B | 41.98B | 33.73B | 31.87B | 26.84B | Total Assets |
| 85.04B | 70.20B | 55.08B | 48.73B | 39.76B | Total Debt |
| 2.17B | 1.76B | 1.13B | 991.00M | 603.00M | Net Debt |
| -93.00M | 202.00M | 167.00M | -542.00M | -286.00M | Total Liabilities |
| 80.96B | 67.10B | 53.26B | 44.24B | 35.68B | Stockholders Equity |
| 3.95B | 3.10B | 1.82B | 4.49B | 4.07B |
| Cash Flow | Free Cash Flow | |||
| 5.97B | 5.81B | 3.14B | 1.84B | 35.00M | Operating Cash Flow |
| 6.00B | 5.83B | 3.17B | 1.87B | 63.00M | Investing Cash Flow |
| -7.95B | -8.92B | -9.37B | -6.86B | -2.59B | Financing Cash Flow |
| 2.65B | 3.69B | 5.63B | 5.63B | 2.52B |
F&G Annuities & Life Inc Technical Analysis
Negative
35.21
Price Trends
42.06
Negative
42.92
Negative
41.81
Negative
Market Momentum
-1.93
Positive
34.42
Neutral
18.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FG, the sentiment is Negative. The current price of 35.21 is below the 20-day moving average (MA) of 39.15, below the 50-day MA of 42.06, and below the 200-day MA of 41.81, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 18.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FG.
F&G Annuities & Life Inc Risk Analysis
F&G Annuities & Life Inc disclosed 65 risk factors in its most recent earnings report. F&G Annuities & Life Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
F&G Annuities & Life Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $49.61B | 16.51 | 7.10% | 1.86% | -28.56% | 1.14% | |
70 Outperform | $4.75B | 7.42 | 18.12% | 2.41% | 27.35% | ― | |
68 Neutral | $53.97B | 13.33 | 15.41% | 2.75% | 6.10% | 225.22% | |
67 Neutral | $6.08B | 1.94 | 43.24% | 5.04% | 47.95% | ― | |
64 Neutral | $6.43B | 10.90 | 16.27% | 2.60% | 9.55% | 10.22% | |
64 Neutral | $14.24B | 10.27 | 8.97% | 4.33% | 16.38% | -11.94% | |
61 Neutral | $38.96B | 14.67 | 9.79% | 4.77% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
FG
F&G Annuities & Life Inc
35.21
-4.42
-11.15%
AIG
American International Group
83.62
7.61
10.01%
LNC
Lincoln National
35.68
5.86
19.65%
MET
Metlife
79.23
7.66
10.70%
PRU
Prudential Financial
110.07
-1.17
-1.05%
VOYA
Voya Financial
67.27
-4.22
-5.90%
F&G Annuities & Life Inc Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -19.59% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance for F&G Annuities & Life, Inc. in 2024, with record sales, AUM, and robust growth in retail channels and pension risk transfer segments. The company demonstrated strong financial metrics and strategic investments, although faced challenges such as decreased funding agreements and sequential compression in fixed income yield. Overall sentiment remains positive with a focus on continued growth and strategic execution.Highlights
Record Sales and AUM
F&G Annuities & Life, Inc. reported record gross sales of $15.3 billion for the full year 2024, a 16% increase over 2023. Assets under management reached a record $65.3 billion, a 17% increase over the fourth quarter of 2023.
Strong Performance in Retail Channels
Record retail channel sales were $12 billion for the full year, a 20% increase over 2023. Record FIA, MYGA, and IUL sales were noted while maintaining service levels.
Pension Risk Transfer and Institutional Markets Success
Record pension risk transfer sales of nearly $2.3 billion for the full year reflect a 15% increase over 2023. The PRT in-force block crossed the $6.5 billion milestone.
Strong Financial Metrics
Adjusted net earnings for the full year 2024 were $657 million, up 22% over 2023. Adjusted ROA excluding significant items was 127 basis points, up ten basis points over 2023.
Strategic Investments and Partnerships
Invested $680 million in strategic owned distribution companies, generating EBITDA of $65 million in 2024 with an estimate of $90 million in 2025.
Credit Quality and Capital Allocation
97% of fixed maturities were investment grade with low credit-related impairments. Returned $125 million of capital to shareholders through dividends.
Lowlights
Funding Agreements Decline
Funding agreements were $1 billion for the full year, a decrease from $1.6 billion in 2023. No funding agreements were recorded in the fourth quarter.
Sequential Compression in Fixed Income Yield
Fixed income yield decreased by seven basis points sequentially due to higher cash balances and runoff of higher-yielding assets.
MYGA Sales Reduction
Decision to allocate capital to higher returning businesses resulted in a reduction in MYGA sales during the fourth quarter.
Company Guidance
During the F&G Annuities & Life, Inc.'s fourth-quarter and full-year 2024 earnings call, significant metrics were shared, highlighting a robust year. The company reported record gross sales of $15.3 billion for 2024, a 16% increase from 2023, with $3.5 billion in the fourth quarter alone. Retail channel sales soared to $12 billion for the year, marking a 20% rise, driven by strong demand for annuity and life solutions. Institutional market sales were $3.3 billion, including $2.3 billion in pension risk transfers (PRT). The company's AUM reached a record $65.3 billion, a 17% year-on-year increase, while net sales retained hit $10.6 billion, up 15%. Adjusted ROA excluding significant items was 127 basis points, a ten-basis point rise from the previous year, and adjusted ROE excluding AOCI and significant items climbed to over 12% from 10%. The year also saw $125 million returned to shareholders, alongside strategic investments in distribution companies, contributing to $65 million in EBITDA for 2024. Additionally, F&G maintained a strong balance sheet with a GAAP book value of $5.6 billion and a debt-to-capitalization target of approximately 25%.F&G Annuities & Life Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
F&G Annuities Reports Strong Q4 2024 Financial Growth
Positive
Feb 20, 2025
On February 20, 2025, F&G Annuities & Life Inc. released its financial results for the fourth quarter and the full year ending December 31, 2024, showcasing significant financial growth. The company reported net earnings of $323 million for Q4 2024 compared to a loss of $299 million in Q4 2023, with full-year net earnings reaching $622 million. The firm achieved record gross sales of $15.3 billion in 2024, marking a 16% increase from 2023. Assets under management also hit a record $65.3 billion by year-end, reflecting a 17% rise from the previous year. The results underscore F&G’s strategic success in capitalizing on favorable market conditions and expanding its distribution channels, positioning the company strongly for continued growth and enhanced shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.