F&G Annuities & Life Inc (FG) Faces Net Loss in Q4 and Full Year 2023 Despite Record ...
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Net Loss: Reported a net loss of $299 million in Q4 and $58 million for the full year 2023.
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Adjusted Net Earnings: Q4 adjusted net earnings were $75 million, full year adjusted net earnings stood at $335 million.
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Gross Sales: Achieved record gross sales of $4.1 billion in Q4, a 52% increase year-over-year, and $13.2 billion for the full year.
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Assets Under Management (AUM): AUM reached a record $49.5 billion, a 14% increase from the previous year.
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Dividends and Share Repurchases: Paid $0.21 per share in Q4 dividends and returned $119 million to shareholders in the full year.
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Solvency and Ratings: Estimated RBC ratio for the primary operating subsidiary was approximately 440%, with a ratings upgrade from A.M. Best.
On February 21, 2024, F&G Annuities & Life Inc (NYSE:FG) released its 8-K filing, detailing its financial results for the fourth quarter and full year ended December 31, 2023. Despite achieving record gross sales and assets under management, the company reported a net loss for both the quarter and the full year, primarily due to unfavorable mark-to-market effects and other items.
Company Overview
F&G Annuities & Life Inc is a leading provider of insurance solutions serving retail annuity and life customers as well as institutional clients. Through its insurance subsidiaries, including FGL Insurance and Fidelity & Guaranty Life Insurance Company of New York, it markets a broad portfolio of products such as fixed indexed annuities, multi-year guarantee annuities, immediate annuities, indexed universal life insurance, funding agreements, and pension risk transfer solutions.
Financial Performance and Challenges
The net loss for Q4 2023 stood at $299 million, or $2.41 per diluted share, compared to a net loss of $176 million, or $1.41 per share, for the same period in 2022. The full year net loss was $58 million, or $0.47 per share, a significant downturn from the net earnings of $635 million, or $5.52 per share, in the previous year. These losses included substantial net unfavorable mark-to-market effects, which were excluded from adjusted net earnings.
Adjusted net earnings for Q4 were $75 million, or $0.60 per share, a decrease from $130 million, or $1.04 per share in Q4 2022. For the full year, adjusted net earnings were $335 million, or $2.68 per share, compared to $353 million, or $3.07 per share in the previous year. These figures reflect the company's resilience in the face of market volatility, particularly in the annuities industry.