F&G Annuities & Life, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. The quarter’s numbers.

Key takeaways

GAAP net loss in the quarter: Net loss attributable to common shareholders was $81 million, or $0.62 per diluted share, against net earnings of $35 million, or $0.26 per share, a year earlier. Source
Adjusted earnings below last year: Adjusted net earnings were $85 million, or $0.65 per share, compared with $103 million, or $0.77 per share, in the second quarter of 2025. Source
Record AUM before reinsurance: AUM before reinsurance reached $74.7 billion at June 30, 2026, up 8% from $69.2 billion a year earlier. Retained AUM was $55.9 billion, up 1%. Source
Opportunistic sales fell sharply: Opportunistic sales were $0.7 billion against $1.9 billion. The decline reflects lower multiyear guaranteed annuity volume, partly offset by $0.6 billion of higher funding agreements. Source
Product margin declined, partly offset: Total product margin was reduced, with lower surrender charge fee income and higher other liability costs, as expected. Asset growth and fees partly offset these items. Source
Book value per share excluding AOCI up: Book value per share excluding AOCI was $45.93 at June 30, 2026, up $1.50 from December 31, 2025. Reported book value per common share was $33.27. Source
Second-quarter shareholder returns: Capital returned in the quarter was $128 million: $37 million of common and preferred dividends and $91 million of repurchases of about 3.3 million shares at an average $27.27. Source

“We achieved record assets under management before reinsurance of $74.7 billion underpinned by continued momentum in core retail, while maintaining our disciplined approach to sales, pricing and capital allocation.”
Conor Murphy, F&G’s Chief Executive Officer and President

Guidance

Area	Period	Figure	Against last quarter
Alternative investment return Source	Long-term	approximately 12%

What changed from last quarter

New: A $1.8 billion inforce block was ceded with the F&G Life Re (Bermuda) sale effective March 1, 2026. A $750 million funding agreement-backed note matured in the second quarter, and both reduced retained AUM. Source

Results and earnings

GAAP net loss in the quarter: Net loss attributable to common shareholders was $81 million, or $0.62 per diluted share, against net earnings of $35 million, or $0.26 per share, a year earlier. Source
Adjusted earnings below last year: Adjusted net earnings were $85 million, or $0.65 per share, compared with $103 million, or $0.77 per share, in the second quarter of 2025. Source
Mark-to-market effects excluded from adjusted: The GAAP loss included $144 million of net unfavorable mark-to-market effects and $22 million of other unfavorable items, all excluded from adjusted net earnings. Source
Adjusted ROE and ROA reported: Adjusted ROE excluding AOCI was 8.0% and adjusted ROA was 68 basis points for the quarter, against 8.8% and 71 basis points a year earlier. Trailing twelve-month adjusted ROA was 85 basis points. Source

Sales and assets under management

Record AUM before reinsurance: AUM before reinsurance reached $74.7 billion at June 30, 2026, up 8% from $69.2 billion a year earlier. Retained AUM was $55.9 billion, up 1%. Source
Core sales slightly below last year: Core sales were $2.0 billion against $2.2 billion, including $1.8 billion of core retail indexed annuity and indexed universal life sales and $0.2 billion of pension risk transfer sales. Source
Opportunistic sales fell sharply: Opportunistic sales were $0.7 billion against $1.9 billion. The decline reflects lower multiyear guaranteed annuity volume, partly offset by $0.6 billion of higher funding agreements. Source
Gross and net sales lower: Gross sales were $2.7 billion against $4.1 billion. Net sales were $1.5 billion against $2.7 billion, after sales attributable to flow reinsurance to third parties. Source

“Having spent the past year working closely with our employees, distribution partners and leadership team, my confidence in the future of F&G has only grown stronger.”
Conor Murphy, F&G’s Chief Executive Officer and President

Investment portfolio and credit

Portfolio largely investment grade: Management said 97% of fixed maturities in the retained investment portfolio are investment grade. Source
Portfolio matched to liabilities: Management described the portfolio as matched to its liability profile and diversified across asset types. Source
Credit impairments remain low: Credit-related impairments averaged 6 basis points over the past five years and continued below pricing assumptions through the first half of 2026. Source

Margins, costs and pricing

Product margin declined, partly offset: Total product margin was reduced, with lower surrender charge fee income and higher other liability costs, as expected. Asset growth and fees partly offset these items. Source
Operating costs held flat: Personnel costs were $77 million, unchanged from the year-earlier quarter. Other operating expenses were $41 million against $42 million. Source
Disciplined pricing maintained: Management said adjusted net earnings reflect consistent core spread, with the business maintaining disciplined pricing relative to the prior year quarter. Source

“Combined with our diversified distribution platform and strategic reinsurance relationships, we believe F&G is well positioned to navigate a dynamic market environment.”
Conor Murphy, F&G’s Chief Executive Officer and President

Capital, book value and shareholder returns

Book value per share excluding AOCI up: Book value per share excluding AOCI was $45.93 at June 30, 2026, up $1.50 from December 31, 2025. Reported book value per common share was $33.27. Source
Second-quarter shareholder returns: Capital returned in the quarter was $128 million: $37 million of common and preferred dividends and $91 million of repurchases of about 3.3 million shares at an average $27.27. Source
First-half returns reach $195 million: First-half capital returned was about $195 million, including $75 million of dividends and $120 million of repurchases of about 4.5 million shares at an average $26.44. Source
Book value per share bridge: Book value per share excluding AOCI rose from $44.43 at December 31, 2025. Adjusted net earnings and other added $1.05 and capital actions added $0.27, before mark-to-market. Source

Strategy and growth priorities

Inforce earnings support growth: Management cited inforce earnings, financial flexibility and favorable demographic trends as support for growing assets under management, expanding returns and creating shareholder value. Source
Fee-based earnings to scale: Management sees scope to scale fee-based, higher margin and less capital intensive earnings streams while continuing to grow the core spread-based franchise. Source
Flow reinsurance reduces gross sales: Flow reinsurance to third parties, which includes a reinsurance sidecar, accounted for $1,255 million of sales in the quarter, reducing net sales relative to gross sales. Source

Figures management reported

Figure	Reported
Book value per share Source	$33.27
Investment income Source	$718 million

Risks management discussed

Financial: Alternative investment returns in the short term can differ from the long-term expectation, and adjusted net earnings reflect that difference. Source
Demand: Opportunistic sales volumes vary with economics and market conditions, so quarterly sales can move sharply. Source

Earlier plans management reported on

Not stated: Management said second-quarter gross sales were lower than the prior year, which included near-record opportunistic sales, and tied this to managing growth for the long-term. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

F&G Annuities & Life Reports Second Quarter 2026 Results

Des Moines, Iowa - (August 5, 2026) - F&G Annuities & Life, Inc. (NYSE: FG) (F&G or the Company) a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, today reported financial results for the second quarter ended June 30, 2026. Net loss attributable to common shareholders for the second quarter of $81 million, or $0.62 per diluted share (per share), compared to net earnings of $35 million, or $0.26 per share, for the second quarter of 2025. Net loss for the second quarter included $144 million of net unfavorable mark-to-market effects and $22 million of other unfavorable items; all of which are excluded from adjusted net earnings. Net earnings for the second quarter of 2025 included $49 million of net unfavorable mark-to-market effects and $19 million of other unfavorable items; all of which are excluded from adjusted net earnings. Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter were $85 million, or $0.65 per share, compared with $103 million, or $0.77 per share, for the second quarter of 2025. Adjusted net earnings include significant income and expense items, as well as investment income from alternative investments below management’s long-term expected return. Please see the “Second Quarter 2026 Results” and “Non- GAAP Measures and Other Information” sections for further explanation.

Company Highlights

Achieved record assets under management before reinsurance of nearly $75 billion: F&G achieved assets under management before reinsurance of $74.7 billion as of June 30, 2026, an increase of 8% over the second quarter of 2025. This included retained AUM of $55.9 billion. F&G’s gross sales were $2.7 billion and net sales were $1.5 billion for the second quarter
Excellent credit performance in our high quality asset portfolio: The retained investment portfolio is performing well, with 97% of fixed maturities being investment grade. It is well matched to our liability profile and diversified across asset types. Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years, and continuing below pricing assumptions through the first half of 2026
Reported adjusted return on equity (ROE) ex AOCI and adjusted return on assets (ROA) include short-term fluctuations in investment income from alternative investments: Adjusted ROE excluding AOCI was 8.0% and adjusted ROA was 68 basis points for the second quarter; adjusted ROA of 85 basis points over the last twelve months (LTM) was in line with full year 2025
Solid balance sheet supports both organic growth and higher return of capital to shareholders: During the second quarter, F&G returned $128 million of capital to shareholders through $37 million of common and preferred dividends and $91 million of share repurchases. This brought the first half of 2026 capital returned to shareholders to approximately $195 million, through $75 million of dividends and $120 million of share repurchases

Conor Murphy, F&G’s Chief Executive Officer and President, commented, “The second quarter reflects the strength and resilience of the business we have built at F&G. We achieved record assets under management before reinsurance

of $74.7 billion underpinned by continued momentum in core retail, while maintaining our disciplined approach to sales, pricing and capital allocation. Our investment portfolio continues to perform well, with strong credit performance and impairments remaining below pricing assumptions, reinforcing the consistent earnings power of our business. Combined with our diversified distribution platform and strategic reinsurance relationships, we believe F&G is well positioned to navigate a dynamic market environment.”

Mr. Murphy continued, “Having spent the past year working closely with our employees, distribution partners and leadership team, my confidence in the future of F&G has only grown stronger. We see meaningful opportunities to further scale our fee-based, higher margin and less capital intensive earnings streams while continuing to grow our core spread-based franchise. Supported by strong inforce earnings generation, substantial financial flexibility and favorable demographic trends, we are confident in our ability to grow assets under management, expand returns and create long-term shareholder value.”

Summary Financial Results 1

(In millions, except per share data)

Three months ended	Six months ended
June 30, 2026	June 30, 2025	2026	2025
AUM before reinsurance	$ 74,687	$ 69,161	$ 74,687	$ 69,161
Assets under management (AUM)	$ 55,868	$ 55,565	$ 55,868	$ 55,565
Gross sales	$ 2,719	$ 4,106	$ 5,892	$ 7,008
Net sales	$ 1,464	$ 2,744	$ 3,709	$ 4,925
Net earnings (loss)	$ (81)	$ 35	$ 163	$ 10
Net earnings (loss) per share	$ (0.62)	$ 0.26	$ 1.24	$ 0.08
Adjusted net earnings	$ 85	$ 103	$ 195	$ 194
Adjusted net earnings per share	$ 0.65	$ 0.77	$ 1.49	$ 1.48
Adjusted return on average equity (ex. AOCI)	8.0 %	8.8 %	8.0 %	8.8 %
Adjusted return on assets	0.68 %	0.71 %	0.68 %	0.71 %
Book value per common share	$ 33.27	$ 31.02	$ 33.27	$ 31.02
Book value per common share, excluding AOCI	$ 45.93	$ 43.39	$ 45.93	$ 43.39

Second Quarter 2026 Results

Record AUM before reinsurance was $74.7 billion as of June 30, 2026, an increase of 8% over $69.2 billion at the end of the second quarter of 2025. This included AUM of $55.9 billion as of June 30, 2026, an increase of 1% over $55.6 billion at the end of the second quarter of 2025; retained AUM reflects net asset flows offset by $1.8 billion inforce block ceded with the F&G Life Re (Bermuda) sale effective March 1, 2026 and a $750 million funding agreement-backed note maturity in the second quarter of 2026 . A rollforward of AUM can be found in the “Non- GAAP Measures and Other Information” section of this release.

Gross sales were $2.7 billion for the second quarter, compared with $4.1 billion for the second quarter of 2025 which included near record opportunistic sales; reflects our commitment to manage growth for the long-term. Core sales were $2.0 billion for the second quarter, compared with $2.2 billion for the second quarter of 2025; reflects strong momentum with $1.8 billion of core retail (indexed annuities and indexed universal life) sales, one of our strongest quarters on record, and $0.2 billion of pension risk transfer sales.

1See definition of non-GAAP measures below

Opportunistic sales were $0.7 billion for the second quarter, compared with $1.9 billion for the second quarter of 2025; reflects $1.8 billion decrease in multiyear guaranteed annuities as we prioritize pricing discipline and capital allocation to the highest return opportunities, partially offset by $0.6 billion of higher funding agreements. Opportunistic volumes vary quarter to quarter depending on economics and market opportunity. Net sales were $1.5 billion for the second quarter, compared with $2.7 billion for the second quarter of 2025; reflects flow reinsurance in line with capital targets for fixed indexed annuities and multiyear guaranteed annuities. Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter, compared with $103 million, or $0.77 per share, for the second quarter of 2025. Adjusted net earnings include alternative investment portfolio short- term returns that differ from long-term return expectations.

Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter of 2026. Investment income from alternative investments was $49 million, or $0.38 per share, below management’s current long- term expected return of approximately 12%
Adjusted net earnings were $103 million, or $0.77 per share, for the second quarter of 2025. Investment income from alternative investments was $67 million, or $0.50 per share, below management’s long-term expected return
As compared with the prior year quarter and excluding the above items, adjusted net earnings reflect consistent core spread as the business maintained disciplined pricing. Total product margin was reduced after reflecting the F&G Life Re (Bermuda) sale, as well as lower surrender charge fee income and higher other liability costs, as expected. These items were partially offset by asset growth, steady fees from accretive flow reinsurance and owned distribution margin, and disciplined expense management which continued to drive scale benefit

Capital and Liquidity Highlights

Total F&G equity attributable to common shareholders, excluding AOCI, was $6.0 billion, or $45.93 per share, as of June 30, 2026. This reflects an increase of $1.50 per share as compared with December 31, 2025.

1H26 Book value per common share excluding AOCI - As of December 31, 2025	$44.43
Effect of F&G Life Re (Bermuda) sale (one-time item)	0.10
Subtotal, after one-time items	$44.53
Adjusted net earnings and other	1.05
Subtotal, before capital actions & mark-to-market	$45.58
Capital actions	0.27
Subtotal, before mark-to-market	$45.85
Mark-to-market movement	0.08
Book value per common share excluding AOCI - As of June 30, 2026	$45.93

During the second quarter, F&G returned $128 million of capital to shareholders through $37 million of common and preferred dividends and $91 million to repurchase approximately 3.3 million shares of common stock at an average price of $27.27. This brought the first half of 2026 capital returned to shareholders to approximately $195 million, through $75 million of dividends and $120 million to repurchase approximately 4.5 million shares of common stock at an average price of $26.44.

Earnings Conference Call

Members of F&G’s senior management team will host a conference call with the investment community to discuss F&G’s second quarter 2026 results on Thursday, August 6, 2026, beginning at 9:00 a.m. Eastern Time. The conference call will be broadcast live over F&G’s Investor Relations website at investors.fglife.com. A replay will also be available at the same location.

About F&G

F&G 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 fglife.com.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.

Forward-Looking Statements and Risk Factors

Forward-looking statements notice

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; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; 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).

SOURCE: F&G Annuities & Life, Inc.

CONTACT: Lisa Foxworthy-Parker SVP of Investor & External Relations Investor.relations@fglife.com 515.330.3307

F&G ANNUITIES & LIFE, INC. CONSOLIDATED BALANCE SHEETS

(In millions, except per share data) (Unaudited)

Assets	June 30, 2026	December 31, 2025
Investments
Fixed maturity securities available for sale, at fair value, net of allowance	$ 52,228	$ 52,700
Fixed maturity securities, at fair value under fair value option	94	-
Equity securities, at fair value	293	341
Derivative investments	1,305	1,148
Mortgage loans, net of allowance	9,265	7,891
Investments in unconsolidated affiliates	5,065	4,878
Other long-term investments	1,315	1,294
Policy loans	171	147
Short-term investments	545	1,043
Total investments	$ 70,281	$ 69,442
Cash and cash equivalents	2,103	1,486
Reinsurance recoverable, net of allowance	20,876	17,545
Goodwill	2,124	2,180
Prepaid expenses and other assets	1,142	1,052
Other intangible assets, net	6,536	6,275
Market risk benefits asset	364	285
Income taxes receivable	81	83
Deferred tax asset, net	85	82
Total assets	$ 103,592	$ 98,430
Liabilities and Equity
Contractholder funds	$ 64,398	$ 62,726
Future policy benefits	10,856	10,755
Market risk benefits liability	1,102	903
Accounts payable and accrued liabilities	2,846	2,701
Notes payable	2,239	2,237
Funds withheld for reinsurance liabilities	17,457	14,191
Total liabilities	$ 98,898	$ 93,513
Equity
Preferred stock, at par value	-	-
Common stock, at par value	-	-
Additional paid-in-capital	3,765	3,764
Retained earnings	2,665	2,568
Accumulated other comprehensive income (loss) ("AOCI")	(1,658)	(1,488)
Treasury stock	(163)	(40)
Total F&G Annuities & Life, Inc. shareholders' equity	$ 4,609	$ 4,804
Non-controlling interests	85	113
Total equity	$ 4,694	$ 4,917
Total liabilities and equity	$ 103,592	$ 98,430

F&G ANNUITIES & LIFE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS SECOND QUARTER INFORMATION

(In millions, except per share data) (Unaudited)

Three months ended	Six months ended
June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenues
Life insurance premiums and other fees	$ 394	$ 608	$ 873	$ 1,097
Interest and investment income	718	682	1,441	1,348
Owned distribution revenues	19	23	36	39
Recognized gains and (losses), net	290	51	258	(212)
Total revenues	1,421	1,364	2,608	2,272
Benefits and expenses
Benefits and other changes in policy reserves	1,149	993	1,633	1,517
Market risk benefit losses (gains)	32	(4)	105	105
Depreciation and amortization	175	158	348	311
Personnel costs	77	77	137	144
Other operating expenses	41	42	74	83
Interest expense	41	41	82	81
Total benefits and expenses	1,515	1,307	2,379	2,241
Earnings (loss) before income taxes	(94)	57	229	31
Income tax expense (benefit)	(19)	15	55	10
Net earnings (loss)	(75)	42	174	21
Less: Non-controlling interests	1	2	2	2
Net earnings (loss) attributable to F&G	(76)	40	172	19
Less: Preferred stock dividend	5	5	9	9
Net earnings (loss) attributable to F&G common shareholders	$ (81)	$ 35	$ 163	$ 10
Net earnings (loss) attributable to F&G common shareholders per common share
Basic	$ (0.62)	$ 0.26	$ 1.24	$ 0.08
Diluted	$ (0.62)	$ 0.26	$ 1.24	$ 0.08
Weighted average common shares used in computing net earnings (loss) per common share
Basic	130	133	131	130
Diluted	130	134	131	131

Non-GAAP Measures and Other Information

RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS

Three months ended	Six months ended
Non-GAAP adjustments
Recognized (gains) and losses, net
Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets	137	12	171	27
Change in allowance for expected credit losses	(8)	19	(9)	41
Change in fair value of reinsurance related embedded derivatives	30	61	(189)	102
Change in fair value of other derivatives and embedded derivatives	31	(13)	54	(62)
Recognized (gains) losses, net	190	79	27	108
Market related liability adjustments	(10)	(16)	(47)	87
Purchase price amortization	15	18	30	33
Transaction costs, other and non-recurring items	14	8	19	9
Non-controlling interest	(2)	(2)	(4)	(4)
Income taxes adjustment	$ (41)	$ (19)	$ 7	$ (49)
Adjusted net earnings attributable to common shareholders 1	$ 85	$ 103	$ 195	$ 194

1See definition of non-GAAP measures below

Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter of 2026. Investment income from alternative investments was $49 million, or $0.38 per share, below management’s current long-term expected return of approximately 12%
Adjusted net earnings were $103 million, or $0.77 per share, for the second quarter of 2025. Investment income from alternative investments was $67 million, or $0.50 per share, below management’s long-term expected return
Adjusted net earnings of $195 million, or $1.49 per share, for the first six months ended June 30, 2026 included $5 million, or $0.04 per share, from investment and other income true-up adjustments. Investment income from alternative investments was $93 million, or $0.71 per share, below management’s long-term expected return
Adjusted net earnings of $194 million, or $1.48 per share, for the first six months ended June 30, 2025 included $16 million, or $0.12 per share, of income from a reinsurance true-up adjustment. Investment income from alternative investments was $112 million, or $0.86 per share, below management’s long-term expected return

RECONCILIATION OF TOTAL EQUITY, TOTAL EQUITY EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI), BOOK VALUE PER SHARE AND BOOK VALUE PER SHARE EXCLUDING AOCI

Three months ended (In millions)	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025
Total F&G Annuities & Life, Inc. shareholders' equity	4,609	4,639	4,804	4,824
Less: Preferred stock	250	250	250	250
Total F&G equity attributable to common shareholders	4,359	4,389	4,554	4,574
Less: AOCI	(1,658)	(1,843)	(1,488)	(1,376)
Total F&G equity attributable to common shareholders, excluding AOCI	$ 6,017	$ 6,232	$ 6,042	$ 5,950
Common shares outstanding	131	134	136	135
Book value per common share	$ 33.27	$ 32.75	$ 33.49	$ 33.88
Book value per common share, excluding AOCI	$ 45.93	$ 46.51	$ 44.43	$ 44.07

ASSETS UNDER MANAGEMENT (AUM) ROLLFORWARD, AVERAGE ASSETS UNDER MANAGEMENT (AAUM) AND AUM BEFORE REINSURANCE

AUM at beginning of period	$ 56,436	$ 57,574	$ 56,647	$ 55,565
Net new business asset flows	233	1,364	1,660	2,269
Net flow reinsurance to third parties	(801)	(688)	(733)	(1,187)
Net inforce reinsurance to third parties	-	(1,814)	-	-
Net capital transaction proceeds (disbursements)	-	-	-	-
AUM at end of period1	$ 55,868	$ 56,436	$ 57,574	$ 56,647
AAUM YTD1	$ 56,939	$ 57,905	$ 55,384	$ 54,870
AUM before reinsurance	$ 74,687	$ 74,454	$ 73,090	$ 71,430

SALES HIGHLIGHTS

Three months ended	Six months ended
(In millions)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Indexed annuities ("FIA/RILA")	$ 1,744	$ 1,701	$ 3,323	$ 3,162
Indexed universal life ("IUL")	42	53	86	96
Pension risk transfer ("PRT")	232	445	549	756
Subtotal: Core sales	2,018	2,199	3,958	4,014
Fixed rate annuities ("MYGA")	101	1,907	284	2,469
Funding agreements ("FABN/FHLB")	600	-	1,650	525
Subtotal: Opportunistic sales2	701	1,907	1,934	2,994
Gross sales	2,719	4,106	5,892	7,008
Sales attributable to flow reinsurance to third parties3	(1,255)	(1,362)	(2,183)	(2,083)
Net sales	1,464	2,744	3,709	4,925

1See definition of non-GAAP measures below

2Opportunistic sales volumes fluctuate quarter to quarter depending on economics and market opportunity

3Sales attributable to flow reinsurance to third parties includes the reinsurance sidecar

DEFINITIONS

The following represents the definitions of non-GAAP measures used by F&G:

Adjusted Net Earnings Attributable to Common Shareholders

Adjusted net earnings attributable to common shareholders (ANE) is a non-GAAP economic measure used to evaluate financial performance each period. ANE eliminates the impact of specific items that are not indicative of the underlying economics of our business, including certain market volatility, asymmetrical and noneconomic accounting, nonrecurring items and other income and expense adjustments. These items are volatile in our reported GAAP earnings and are not indicative of the underlying profitability drivers reflected in the design and pricing of our products and/or our investment and hedging strategy, as such items fluctuate from period to period in a manner inconsistent with these drivers. ANE provides information to enhance an investor’s understanding of our results and underlying profitability drivers by removing the impact of short-term market volatility (i.e. recognized gains and losses, market risk benefits remeasurement gains and losses, derivative gains and losses), asymmetrical and non-economic accounting (i.e. derivatives and investment hedges that do not qualify for hedge accounting, deferred pension risk transfer deferred profit liability losses), and other adjustments. ANE is calculated by adjusting net earnings or loss attributable to common shareholders to eliminate: (i) Recognized gains and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effects of changes in fair value of the reinsurance related embedded derivative and other derivatives, including interest rate swaps and forwards; (ii) Market related liability adjustments: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; the impact of initial pension risk transfer deferred profit liability losses, including amortization from previously deferred pension risk transfer deferred profit liability losses; and the changes in the fair value of market risk benefits by deferring current period changes and amortizing that amount over the life of the market risk benefit; (iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset and the change in fair value of liabilities recognized as a result of acquisition activities); (iv) Transaction costs: the impacts related to acquisition, integration and merger related items; (v) Other and “non-recurring,” “infrequent” or “unusual items”: Other adjustments include removing any charges associated with U.S. guaranty fund assessments as these charges neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, but result from external situations not controlled by the Company. Further, Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these items are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years; (vi) Non-controlling interest on non-GAAP adjustments: the portion of the non-GAAP adjustments attributable to the equity interest of entities that F&G does not wholly own; and (vii) Income taxes: the income tax impact related to the above-mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. Recognized gains and losses are excluded from ANE as part of both adjustments (i) and (ii). As part of those two adjustments to ANE, all material recognized gains and losses are removed except for periodic settlements of interest rate swaps used to economically hedge our floating rate investments. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.

Adjusted Weighted Average Diluted Shares Outstanding

Adjusted weighted average diluted shares outstanding is the same as weighted average diluted shares outstanding except for periods in which our preferred stocks are calculated to be dilutive to either net earnings attributable to common shareholders or adjusted net earnings attributable to common shareholders, but not both, or there is a net earnings loss attributable to common shareholders on a GAAP basis, but positive adjusted net earnings attributable to common shareholders using the non-GAAP measure. The above exceptions are made to include relevant diluted shares when dilution occurs and exclude relevant diluted shares when dilution does not occur for adjusted net earnings attributable to common shareholders. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Adjusted Net Earnings attributable to common shareholders per Diluted Share

Adjusted net earnings attributable to common shareholders per diluted share is calculated as adjusted net earnings plus preferred stock dividend (if the preferred stock has created dilution). This sum is then divided by the adjusted weighted-average diluted shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Adjusted Return on Assets attributable to Common Shareholders

Adjusted return on assets attributable to common shareholders is calculated by dividing year-to-date annualized adjusted net earnings attributable to common shareholders by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, flow reinsurance fee income, owned distribution margin and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.

Adjusted Return on Average Common Shareholder Equity, excluding AOCI

Adjusted return on average common shareholder equity is calculated by dividing the rolling four quarters adjusted net earnings attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level return driven by the Company's adjusted earnings.

Assets Under Management (AUM)

AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP: (i) total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives; (ii) investments in unconsolidated affiliates at carrying value; (iii) related party loans and investments; (iv) accrued investment income; (v) the net payable/receivable for the purchase/sale of investments; and (vi) cash and cash equivalents excluding derivative collateral at the end of the period. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained.

AUM before Reinsurance

AUM before Reinsurance is comprised of AUM plus flow reinsured assets, including certain block reinsured assets. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets.

Average Assets Under Management (AAUM) (Quarterly and YTD)

AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets.

Book Value per Common Share, excluding AOCI

Book value per Common share, excluding AOCI is calculated as total F&G equity attributable to common shareholders divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company.

Debt-to-Capitalization Ratio, excluding AOCI

Debt-to-capitalization ratio is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity, excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.

Return on Average F&G common shareholder Equity, excluding AOCI

Return on average F&G common shareholder equity, excluding AOCI is calculated by dividing the rolling four quarters net earnings (loss) attributable to common shareholders, by total average F&G equity attributable to common shareholders, excluding AOCI. Average F&G equity attributable to common shareholders, excluding AOCI for the twelve month rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.

Sales

Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

Total Capitalization, excluding AOCI

Total capitalization, excluding AOCI is based on total equity excluding the effect of AOCI and the total aggregate principal amount of debt. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.

Total Equity, excluding AOCI

Total equity, excluding AOCI is based on total equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on total equity.

Total F&G Equity attributable to common shareholders, excluding AOCI

Total F&G equity attributable to common shareholder, excluding AOCI is based on total F&G Annuities & Life, Inc. shareholders' equity excluding the effect of AOCI and preferred stocks, including additional paid-in-capital. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, changes in instrument-specific credit risk for market risk benefits and discount rate assumption changes for the future policy benefits, management considers this non- GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders.