Latest news with #ChrisBlunt
Yahoo
07-08-2025
- Business
- Yahoo
F&G Annuities & Life (NYSE:FG) Posts Better-Than-Expected Sales In Q2
Insurance solutions provider F&G Annuities & Life (NYSE:FG) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 14.1% year on year to $1.36 billion. Its non-GAAP profit of $0.77 per share was 34.9% above analysts' consensus estimates. Is now the time to buy F&G Annuities & Life? Find out in our full research report. F&G Annuities & Life (FG) Q2 CY2025 Highlights: Revenue: $1.36 billion vs analyst estimates of $1.18 billion (14.1% year-on-year growth, 15.4% beat) Pre-Tax Profit Margin: 4.2% (17.1 percentage point year-on-year decrease) Adjusted EPS: $0.77 vs analyst estimates of $0.57 (34.9% beat) Market Capitalization: $4.47 billion Chris Blunt, F&G's Chief Executive Officer, said, "We grew AUM before flow reinsurance to $69.2 billion at the end of the second quarter, an increase of 13% from second quarter 2024, driven by strong sales. Our business is benefiting from increased scale, as our ratio of operating expense to AUM before flow reinsurance has decreased by 5 basis points from the second quarter of 2024, and we expect further improvement in the second half of the year. Our high quality investment portfolio is performing well and credit related impairments remain below our pricing assumption. Overall, we have had tremendous growth since FNF acquired F&G in June 2020, with a cumulative 58% increase in book value per share excluding AOCI since year-end 2020, to $43.39 at the end of the second quarter." Company Overview Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE:FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients. Revenue Growth Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the 'float' (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services. Over the last four years, F&G Annuities & Life grew its revenue at an exceptional 14.4% compounded annual growth rate. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. F&G Annuities & Life's annualized revenue growth of 21.1% over the last two years is above its four-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, F&G Annuities & Life reported year-on-year revenue growth of 14.1%, and its $1.36 billion of revenue exceeded Wall Street's estimates by 15.4%. Net premiums earned made up 50.1% of the company's total revenue during the last five years, meaning F&G Annuities & Life's growth drivers strike a balance between insurance and non-insurance activities. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Book Value Per Share (BVPS) Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring: Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits) BVPS is essentially the residual value for shareholders. We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate. To investors' benefit, F&G Annuities & Life's BVPS grew at an exceptional 24.4% annual clip over the last two years. Over the next 12 months, Consensus estimates call for F&G Annuities & Life's BVPS to grow by 59.7% to $45.29, elite growth rate. Key Takeaways from F&G Annuities & Life's Q2 Results We were impressed by how significantly F&G Annuities & Life blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. On the other hand, its book value per share missed. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $33.15 immediately following the results. Big picture, is F&G Annuities & Life a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
F&G Annuities & Life Announces Strategic Partnership With New Reinsurer Backed by Blackstone Managed Funds
DES MOINES, Iowa, Aug. 6, 2025 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) (F&G) today announced that F&G has launched a strategic partnership with a new reinsurance vehicle backed by Blackstone managed funds, with approximately $1 billion in anticipated capital commitments. The reinsurer will provide long-term, on demand growth capital to F&G through a forward flow reinsurance agreement on a quota share basis of certain fixed indexed annuity products, effective August 1, 2025. This structure enables F&G to efficiently manage its liabilities, reinsure a portion of its fixed indexed annuity sales and enhance its capital-light model, which remains core to its strategy. The partnership also reflects the strength of F&G's strategic relationship with Blackstone and underscores our shared commitment to delivering innovative, value-enhancing solutions. "We are very excited for this opportunity that recognizes Blackstone as a trusted partner and enables us to fund a portion of our growth with participation from private, long-term capital providers," said Chris Blunt, Chief Executive Officer. "This transaction positions us to further capitalize on growth opportunities that we see in the market and positions us to provide life and annuity solutions to more distribution partners, helping them meet their customer needs. The partnership will also move F&G toward a more fee-based, higher margin and less capital intensive business and is expected to be quite positive in our efforts to expand our return on equity over time." Jefferies served as F&G's financial advisor and Sidley Austin LLP served as F&G's legal counsel in connection with the transaction. About F&G F&G Annuities and Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit Forward-Looking Statements This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC). Contact:Lisa Foxworthy-ParkerSVP of Investor & External View original content to download multimedia: SOURCE F&G Annuities & Life, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
18-07-2025
- Business
- The Hill
Almost 1 in 4 delaying retirement over economic concerns: Poll
Nearly a quarter of Americans are considering delaying their retirement date over economic concerns, according to a survey released earlier this week. The Wednesday poll from F&G Annuities & Life, an insurance provider based in Des Moines, Iowa, found that almost 1 in 4 — 23 percent — pre-retirees said that they are pushing back their retirement date, a nearly 10-point increase from last year when it was around 14 percent. Some concerns respondents listed for delaying retirement were worries about not having enough money for retirement, wanting to have more financial options and a larger safety net, inflation and potential stock market downturn. Nearly 1 in 3 Americans, at 29 percent, said they are considering returning to work. The figure increases to 54 percent when surveying younger or early retirees in Generation X. Among Baby Boomers, it is at 28 percent, according to the survey. 'The current economic environment is creating significantly more stress and uncertainty for younger American investors, leading many to rethink their timelines for retirement as our third annual study shows,' Chris Blunt, the CEO of F&G, said in a statement. 'This shift means Americans near and in retirement are more likely to be working longer or delaying retirement altogether,' Blunt added. 'Amid this dynamic, the need for guaranteed income from products like annuities becomes increasingly important to maintain a quality of life they are accustomed to through retirement.' The poll was conducted from May 9-26 among 2,000 U.S. adults.
