F&g Annuities & Life . 7.95 Stock Earnings Reports

F&G Annuities & Life delivered a solid Q1 2026 consistent with guidance: record gross AUM near $75B (18% CAGR since 2019) and retained AUM of $56B. Management emphasized a strategic shift toward higher-margin, capital-light fee businesses (flow reinsurance, owned distribution, middle market life) with fee-based strategies expected to grow from ~15% of adjusted net earnings in 2025 to ~25% by year-end 2028. The retained investment portfolio ($53B) is high quality (97% of fixed maturities investment grade) and diversified across five asset classes (fixed income, public structured, private origination, mortgage loans, alternatives). Credit impairments remain low (3 bps in Q1; ~6 bps five-year average). Management is actively managing product mix, flow reinsurance and pricing to protect spreads and expand ROE over time. Capital allocation: $67M returned in Q1 (dividends + $29M buybacks), new $100M three-year repurchase authorization, continuing $135M annual common dividend target, and commitment to ~25% debt-to-capitalization (ex-AOCI) and >400% RBC. They initiated a process to explore strategic alternatives for their owned distribution business (Peak Altitude) to unlock value. Near-term earnings are expected to track AUM growth with some variability from alternative investment returns; management is conservative in capital planning for alternative returns (LP/equity long-term expected return now 12–14%).