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F&G Annuities & Life (NYSE:FG) Posts Better-Than-Expected Sales In Q2

By Max Juang | August 06, 2025, 8:53 PM

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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.

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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.

F&G Annuities & Life Quarterly Revenue
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.

F&G Annuities & Life Year-On-Year Revenue Growth
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.

F&G Annuities & Life Quarterly Net Premiums Earned as % of Revenue
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.

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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.

F&G Annuities & Life Quarterly Book Value per Share

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.

Is F&G Annuities & Life an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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