On August 5, 2024, F&G Annuities & Life Inc (FG, Financial) released its 8-K filing for the second quarter ended June 30, 2024. The company, a leading provider of insurance solutions serving retail annuity and life customers as well as institutional clients, reported significant financial achievements and growth.
Performance Overview
F&G Annuities & Life Inc (FG, Financial) reported net earnings attributable to common shareholders of $198 million, or $1.55 per diluted share, surpassing the analyst estimate of $1.15 per share. This represents a substantial increase from the $130 million, or $1.04 per share, reported in the same quarter of 2023. Adjusted net earnings were $139 million, or $1.10 per share, compared to $79 million, or $0.63 per share, in the prior year quarter.
Company Highlights
F&G Annuities & Life Inc (FG, Financial) achieved record gross sales of $4.4 billion for the second quarter, marking a 47% increase over the same period in 2023. This growth was driven by record retail channel sales and robust institutional market sales. The company also reported record assets under management (AUM) of $52.2 billion as of June 30, 2024, up 13% from $46.0 billion in the prior year quarter.
Financial Achievements
Key financial metrics for the second quarter include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Gross Sales | $4.4 billion | $3.0 billion |
| Net Sales | $3.4 billion | $2.2 billion |
| Assets Under Management (AUM) | $52.2 billion | $46.0 billion |
| Net Earnings per Share | $1.55 | $1.04 |
| Adjusted Net Earnings per Share | $1.10 | $0.63 |
Income Statement Highlights
F&G Annuities & Life Inc (FG, Financial) reported total revenues of $1.17 billion for the second quarter, consistent with the $1.17 billion reported in the same period last year. The company saw a significant increase in interest and investment income, which rose to $684 million from $525 million in Q2 2023. However, life insurance premiums and other fees decreased to $487 million from $576 million in the prior year quarter.
Balance Sheet and Cash Flow
As of June 30, 2024, F&G Annuities & Life Inc (FG, Financial) reported total assets of $78.5 billion, up from $70.2 billion at the end of 2023. The company's total liabilities increased to $74.7 billion from $67.1 billion over the same period. The company also returned $32 million of capital to shareholders through common and preferred dividends during the second quarter.
Commentary
Chris Blunt, Chief Executive Officer, commented, “We delivered record assets under management before flow reinsurance in the second quarter of $61.4 billion, a 21% increase over the second quarter of 2023. This strong growth was driven by record gross sales of $4.4 billion, a 47% increase over the second quarter of 2023, with record retail sales and robust institutional market sales. We continue to benefit from strong demand for our products given demographic tailwinds, prior investments in building out our multi-channel sales platform and continued strong investment performance. Excluding significant items, we generated $171 million of adjusted net earnings and expanded our adjusted return on assets to 130 basis points as benefits from investment margin, accretive flow reinsurance and owned distribution margin, as well as disciplined expense management, continue to emerge. Overall, it was an outstanding quarter and we are well on pace to achieve our Investor Day targets.”
Analysis
F&G Annuities & Life Inc (FG, Financial) has demonstrated robust financial performance in the second quarter of 2024, significantly exceeding analyst estimates for earnings per share. The company's record sales growth and substantial increase in assets under management highlight its strong market position and effective business strategies. However, the decrease in life insurance premiums and other fees may warrant closer monitoring in future quarters.
Overall, F&G Annuities & Life Inc (FG, Financial) appears well-positioned for continued growth, supported by strong demand for its products, effective expense management, and strategic investments in its sales platform.
Explore the complete 8-K earnings release (here) from F&G Annuities & Life Inc for further details.
