FG · F&G Annuities & Life, Inc. 7.30

F&G’s Q1 2026 results reflect a decisive turnaround from a net loss in the prior-year quarter, with GAAP net earnings of $244 million — driven substantially by $147 million of net favorable mark-to-market effects, which are excluded from adjusted net earnings. Adjusted net earnings of $110 million rose 21% year-over-year, supported by asset growth, accretive flow reinsurance fees, and disciplined expense management. Gross sales of $3.17 billion (+10% YoY) and record AUM before reinsurance of $74.45 billion (+11% YoY) underscore continued strength in core indexed annuities, IUL, and pension risk transfer, alongside opportunistic funding agreements. Management highlighted the strategic shift toward a more fee-based, less capital-intensive model — evidenced by growing contributions from flow reinsurance and owned distribution — while maintaining high-quality, well-matched investment portfolios (97% investment grade, low credit impairments). Capital return activity accelerated meaningfully: $67 million was returned in Q1 2026, including $29 million in share repurchases, and a new $100 million three-year buyback program was authorized — reinforcing confidence in capital generation and balance sheet strength. Though adjusted ROE ex AOCI declined 130 bps to 8.4%, management attributed this to the evolving earnings mix and ongoing capital deployment strategy rather than deterioration in underlying performance. No forward guidance was provided in the filing; however, the Spring 2026 Investor Presentation reaffirmed medium-term targets — including 13–14% adjusted ROE ex AOCI and 50% AUM growth — indicating sustained execution against the multi-year strategic plan.