F&G Annuities & Life Reports Sharp Decline in Quarterly Profit Amid Record Assets

F&G Annuities & Life has presented a mixed financial picture for its latest reporting period. The company announced a significant contraction in profitability for the fourth quarter of 2025, even as assets under management reached a new peak, creating a complex scenario for investors.

Profitability Under Pressure

The insurer’s net income for Q4 2025 fell dramatically to $124 million, or $0.92 per share. This result marks a drop of more than 60% from the $323 million earned in the same quarter the previous year. Adjusted net earnings also disappointed, coming in at $0.91 per share and missing market forecasts.

For the full 2025 fiscal year, net profit stood at $248 million. This figure represents a substantial decline from the $622 million reported for the prior year. Annual revenue remained largely unchanged at $5.73 billion. The stark divergence between asset growth and earnings performance raises questions about the company’s near-term profit trajectory.

Strategic Shift and Capital Management

In response to these challenges, management is executing a strategic repositioning. The initiative aims to improve capital efficiency and grow the proportion of fee-based revenue. A key component of this plan is the pending sale of the Bermuda-based subsidiary, F&G Life Re. That transaction is anticipated to close in March 2026, with expected net proceeds of approximately $300 million.

Should investors sell immediately? Or is it worth buying F G Annuities Life?

The company’s capital position remains robust, with a Risk-Based Capital Ratio of 430%, well above internal target levels. Shareholders will receive a quarterly dividend of $0.25 per share, scheduled for payment on March 31, 2026. Following the earnings release, the analysis firm Wall Street Zen downgraded the stock to a “Hold” rating.

Record Funds Under Management Contrast with Earnings

Operational metrics told a more positive story. F&G Annuities posted strong growth in its core business, with assets under management climbing 12% year-over-year to a record $73.1 billion. Full-year gross sales were a robust $14.6 billion, indicating powerful net inflows.

The quality of the investment portfolio remained high, with 97% of fixed-income securities holding an investment-grade rating. This growth in managed assets, however, stood in sharp contrast to the declining earnings, highlighting the current pressures on the company’s bottom line.