F&G (FG) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 20, 2026 astatine 9:51 AM CST 45 min read

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Friday, Feb. 20, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Christopher Blunt

• President — Conor Ernan Murphy

• Operator — [Operator] (Q&A moderation only; nary substantive institution commentary)

Christopher Blunt: Good morning, and acknowledgment for joining today's call. We delivered a beardown decorativeness to an outstanding year.

Christopher Blunt: Through disciplined maturation and the proven quality and flexibility of our concern model, arsenic we modulation to beryllium much fee-based, higher margin, and little superior intensive. And we stay focused connected creating semipermanent shareholder value. We are executing connected our strategy and made further advancement toward our 2023 Investor Day targets, arsenic we achieved grounds AUM earlier travel reinsurance fueled by 1 of our champion years of sales. Excellent show successful our high-quality diversified concern portfolio, beardown show crossed our concern balanced with diligent disbursal management, and a steadfast fiscal and superior position. I would particularly similar to convey our employees.

Their hard enactment and dedication are genuinely the instauration of everything we execute for our business, and for our customers. Now looking astatine our results much closely, we achieved grounds AUM earlier travel reinsurance of $73,100,000,000, up 12% implicit year-end 2024, arsenic good arsenic grounds retained AUM of $57,600,000,000, up 7% implicit year-end 2024. This grounds AUM was driven by $14,600,000,000 of gross sales, our 2nd highest twelvemonth connected record. 2025 demonstrated our committedness to negociate maturation for the agelong term, arsenic we prioritize pricing subject and superior allocation to the highest instrumentality opportunities.

Christopher Blunt: For the afloat year, we delivered $9,000,000,000 of halfway income including indexed annuities, indexed cosmopolitan life, and pension hazard transfer, and $5,600,000,000 of opportunistic sales, including MYGA and backing agreements. Conor volition supply much details connected income aboriginal successful the call. Next, turning to the concern portfolio. Our high-quality diversified portfolio is performing precise well. The retained portfolio is precocious prime with 97% of fixed maturities being concern people astatine twelvemonth end. Since 2020, we person selectively repositioned implicit $2,000,000,000 of assets to optimize, derisk, and presumption the portfolio to execute successful varying marketplace conditions portion besides improving recognition quality. Credit-related impairments person remained unchangeable astatine 8 ground points successful 2025, good beneath our pricing assumption.

This brings our five-year mean since 2021 to ground points, which is exceptionally low. Our fixed income output was 4.65% successful the 4th quarter, up six ground points implicit the 2024. As a reminder, our fixed income output excludes alternate concern income arsenic good arsenic adaptable concern income, which we specify arsenic prepayment fees. Looking astatine our alternate concern portfolio, our annualized instrumentality was astir 7% successful the 4th quarter, arsenic compared to our 10% semipermanent expected return. At twelvemonth end, astir 40% oregon $4,000,000,000 of our $11,000,000,000 alternate concern portfolio was comprised of equity interests, including constricted partnerships, with the remaining 60% being investment-grade fixed income indebtedness with much predictable levels of concern income.