UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of June 30, 2026, the registrant had
Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 1,421,000,000 | 1,364,000,000 | 2,608,000,000 | 2,272,000,000 |
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| Interest expense, operating | ||||
| Other income statement items (derived) | ||||
| Total operating expenses | ||||
| Operating income | - | |||
| Other income (expense) | ||||
| Interest expense | 0 | 41,000,000 | 81,000,000 | |
| Income before income taxes | - | |||
| Income tax expense (benefit) | - | |||
| Net income including noncontrolling interests | - | |||
| Less: net income attributable to noncontrolling interests | ||||
| Net Income | - | |||
| Less: preferred stock dividends | -5,000,000 | -5,000,000 | -9,000,000 | |
| Net income (loss) available to common stockholders | - | |||
| Basic earnings per share | - | |||
| Diluted earnings per share | - | |||
| Weighted average shares outstanding, basic | ||||
| Weighted average shares outstanding, diluted | ||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Net income | -76,000,000 | 40,000,000 | 172,000,000 | 19,000,000 |
| Foreign currency translation adjustment, net of tax | - | |||
| Other comprehensive income (loss), other components | 192,000,000 | 55,000,000 | ||
| Other comprehensive income (loss), net of tax | - | |||
| Comprehensive income including noncontrolling interests | ||||
| Less: comprehensive income attributable to noncontrolling interests | 1,000,000 | 2,000,000 | ||
| Comprehensive income attributable to parent |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | ||
| Debt securities available for sale | ||
| Deferred policy acquisition costs | ||
| Deferred tax assets | ||
| Goodwill | ||
| Intangible assets, net | 0 | 551,000,000 |
| Loans receivable, net | ||
| Other assets (derived) | ||
| Other intangible assets, net | ||
| Other investments | ||
| Policy loans | ||
| Reinsurance recoverables | ||
| Total Assets | ||
| Liabilities | ||
| Accounts payable and accrued liabilities | ||
| Debt | ||
| Deferred revenue | ||
| Funds held under reinsurance agreements | ||
| Future policy benefits | ||
| Operating lease liabilities | ||
| Other liabilities (derived) | ||
| Policyholder account balances | ||
| Total Liabilities | ||
| Equity | ||
| Preferred stock | ||
| Preferred stock, par value per share | ||
| Preferred stock, shares authorized | ||
| Preferred stock, shares issued | ||
| Preferred stock, shares outstanding | ||
| Common stock, par value per share | ||
| Common stock, shares authorized | ||
| Common stock, shares issued | ||
| Common stock, shares outstanding | ||
| Accumulated other comprehensive income (loss) | - | - |
| Additional paid-in capital | ||
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Treasury stock, common shares held | ||
| Total stockholders equity attributable to parent | ||
| Noncontrolling interests | ||
| Total Equity | ||
| Total liabilities and equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | ||
| Depreciation and amortization | ||
| Change in income taxes payable | - | |
| Change in other operating capital, net | - | - |
| Changes in operating assets and liabilities, net | ||
| Net cash from operating activities | ||
| Investing activities | ||
| Purchases of available-for-sale securities | - | - |
| Proceeds from maturities, prepayments and calls of available-for-sale securities | ||
| Other investing activities (derived) | ||
| Net cash from investing activities | - | - |
| Financing activities | ||
| Repurchases of common stock | - | - |
| Dividends paid | - | - |
| Proceeds from issuance of common stock | ||
| Other financing activities (derived) | - | |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 2,264,000,000 | |
| Cash at end of period | 1,884,000,000 | |
| Supplemental cash flow information | ||
| Cash paid for interest | ||
| Cash paid for income taxes | ||
| Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Treasury stock, at cost | Noncontrolling interests | Total | |
|---|---|---|---|---|---|---|
| Balance at March 31, 2025 | 3,741,000,000 | 2,389,000,000 | -1,734,000,000 | -33,000,000 | 122,000,000 | 4,485,000,000 |
| Net income | ||||||
| Other equity movements | 6,000,000 | -35,000,000 | 64,000,000 | 0 | -5,000,000 | 30,000,000 |
| Balance at June 30, 2025 | 3,747,000,000 | 2,394,000,000 | -1,670,000,000 | -33,000,000 | 119,000,000 | 4,557,000,000 |
| Balance at March 31, 2026 | 3,773,000,000 | 2,778,000,000 | -1,843,000,000 | -69,000,000 | 110,000,000 | 4,749,000,000 |
| Net income | - | - | ||||
| Other equity movements | -8,000,000 | -37,000,000 | 185,000,000 | -94,000,000 | -26,000,000 | 20,000,000 |
| Balance at June 30, 2026 | 3,765,000,000 | 2,665,000,000 | -1,658,000,000 | -163,000,000 | 85,000,000 | 4,694,000,000 |
| Balance at December 31, 2024 | 3,464,000,000 | 2,440,000,000 | -1,923,000,000 | -30,000,000 | 125,000,000 | 4,076,000,000 |
| Net income | ||||||
| Other equity movements | 283,000,000 | -65,000,000 | 253,000,000 | -3,000,000 | -8,000,000 | 460,000,000 |
| Balance at June 30, 2025 | 3,747,000,000 | 2,394,000,000 | -1,670,000,000 | -33,000,000 | 119,000,000 | 4,557,000,000 |
| Balance at December 31, 2025 | - | - | ||||
| Net income | ||||||
| Dividends | - | - | ||||
| Treasury stock acquired | - | - | ||||
| Other equity movements | 1,000,000 | 0 | -170,000,000 | 0 | -30,000,000 | -199,000,000 |
| Balance at June 30, 2026 | - | - |
F&G Annuities & Life, Inc. is a public reporting company classified under Life Insurance. We operate in the sector of the insurance industry that focuses on the needs of middle-income Americans, and the underserved middle-income market represents a major growth opportunity for us. The accompanying interim condensed financial statements are unaudited and have been prepared from the connected books, and results for the interim period are not necessarily indicative of the results to be expected for a full year. The statements should be read in conjunction with the audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure.
Revenue for the period ended June 30, 2026 was $1,421 million compared with $1,364 million in the prior period, an increase of 4.2%. Loss before income taxes was $94 million, and we recorded an income tax benefit of $19 million compared with income tax expense of $15 million in the prior period, while net income attributable to noncontrolling interests was $1 million compared with $2 million in the prior period. Net loss for the period was $76 million. Basic and diluted loss per share were each $(0.62), based on weighted-average basic shares outstanding of 130,000,000. Depreciation and amortization for the period totaled $175 million. Revenue is recognized in accordance with the accounting policies described in our Annual Report on Form 10-K, and [COMPLETE: disaggregation of revenue by product line and description of revenue recognition policies for the interim period].
Debt totaled $2,239 million at June 30, 2026 compared with $2,235 million at the prior period end, an increase of 0.2%, and is presented net of unamortized debt issuance costs of $31 million. Interest expense on debt for the period was $41 million. A 100 basis points shift in interest rates for our floating rate debt and funding agreements will increase or decrease floating expense by approximately $33 million per year. Operating lease liabilities were $11 million compared with $9 million in the prior period, and policyholder account balances were $64,398 million compared with $59,813 million, an increase of 7.7%. Total liabilities at June 30, 2026 were $98,898 million. [COMPLETE: description of debt instruments, maturities, interest rates, and covenant compliance, and lease terms including remaining lease term and discount rate.]
Total equity at June 30, 2026 was $4,694 million. Additional paid-in capital was $3,765 million compared with $3,747 million in the prior period, and retained earnings were $2,665 million compared with $2,394 million, an increase of 11.3%. Accumulated other comprehensive loss was $1,658 million compared with $1,670 million in the prior period, and treasury stock, at cost, was $163 million compared with $33 million in the prior period. Accumulated gross unrealized gains on available-for-sale debt securities were $361 million and accumulated gross unrealized losses were $3,268 million. Noncontrolling interests were $85 million compared with $119 million in the prior period, a decrease of 28.6%. [COMPLETE: description of share repurchase activity, dividends declared, and changes in shares issued and outstanding during the period.]
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the applicable rules and regulations of the Securities and Exchange Commission. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented.
The financial statements include the accounts of the Company and its consolidated subsidiaries, if any. All intercompany balances and transactions have been eliminated in consolidation.
Investments are classified at the time of purchase based on the nature of the security and the Company's intent and ability to hold it, and are subsequently measured under the accounting framework applicable to that classification, as presented in the investments note.
Debt is carried at amortized cost. Debt issuance costs and discounts or premiums are presented as an adjustment to the carrying amount of the related debt and amortized to interest expense over the contractual term of the debt.
Derivative instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. Changes in the fair value of derivatives are recognized in earnings unless the derivative is designated and qualifies as a hedging instrument, in which case recognition follows the applicable hedge accounting model.
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized.
Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when the effect would be antidilutive.
Equity instruments issued by the Company are classified in stockholders' equity based on their terms. The components of stockholders' equity and the changes in those components for the periods presented are set forth in the equity note.
The Company evaluates the applicability and impact of Accounting Standards Updates issued by the Financial Accounting Standards Board as they are issued. Adopted updates and updates not yet effective are not expected to have a material effect on the financial statements, except as otherwise described in these notes.
| Current | Prior | |
|---|---|---|
| Debt | ||
| Operating lease liabilities | ||
| Policyholder account balances | ||
| Total debt | 66,648,000,000 | 64,975,000,000 |
| Current | Prior | |
|---|---|---|
| Unamortized debt issuance costs |
| Current | Prior | |
|---|---|---|
| Accumulated other comprehensive income (loss) | - | - |
| Additional paid-in capital | ||
| Retained earnings (accumulated deficit) | ||
| Treasury stock, at cost | - | - |
| Total stockholders' equity | 4,609,000,000 | 4,804,000,000 |
| Current | Prior | |
|---|---|---|
| Net income available to common stockholders | - | |
| Weighted average shares outstanding, basic | ||
| Weighted average shares outstanding, diluted | ||
| Basic earnings per share | -0.62 | 0.26 |
| Diluted earnings per share | - |
| Current | Prior | |
|---|---|---|
| Deferred tax assets, gross | ||
| Operating loss carryforwards | ||
| Other deferred tax assets | ||
| Valuation allowance | ||
| Deferred tax assets, net | ||
| Tax credit carryforwards | ||
| Capital loss carryforwards | ||
| Derivative instruments | ||
| Investments | ||
| Property, plant and equipment | ||
| Employee benefits | ||
| Accrued liabilities | ||
| Alternative minimum tax credit carryforwards | ||
| Operating loss carryforwards, pre-tax | ||
| Deferred income tax liabilities | ||
| Property and equipment | ||
| Other deferred tax liabilities | ||
| Deferred policy acquisition costs | ||
| Derivatives | ||
| Goodwill and intangible assets | ||
| Net deferred tax position |
| Amount | |
|---|---|
| Balance at beginning of period |
| Current | Prior | |
|---|---|---|
| Income (loss) before income taxes | ( |
| Current | Prior | |
|---|---|---|
| Depreciation and amortization |
| Current | Prior | |
|---|---|---|
| Interest expense on debt |
| Current | Prior | |
|---|---|---|
| Accumulated gross unrealized gains | ||
| Accumulated gross unrealized losses |
| Current | Prior | |
|---|---|---|
| Derivative assets, gross fair value | ||
| Derivative assets | ||
| Derivative liabilities, gross fair value | ||
| Derivative liabilities, current |
| Balance sheet captions for these amounts are not separately disclosed: |
The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, hopes, intentions or strategies regarding the future. All forward-looking statements included in this Quarterly Report on Form 10-Q are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. F&G Annuities & Life, Inc. is a public reporting company classified under Life Insurance. The following discussion should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this report.
Revenue for the period ended June 30, 2026 was $1,421 million, compared with $1,364 million for the comparable prior-year period, an increase of 4.2%. The growth in revenue was accompanied by an increase in debt securities available for sale to $52,228 million from $50,193 million, or 4.1%, and an increase in policyholder account balances to $64,398 million from $59,813 million, or 7.7%. Other income statement expense items increased 20.3% to $1,474 million from $1,225 million, outpacing the growth in revenue and representing the principal driver of the change in our results, with the increase attributable to [COMPLETE: description of the components driving the increase in other benefits and expenses]. Operating interest expense was unchanged at $41 million in both periods, while the separate interest expense line of $41 million recorded in the prior-year period did not recur in the current period. We recorded an income tax benefit of $19 million in the current period compared with income tax expense of $15 million in the prior-year period, and net income attributable to noncontrolling interests decreased to $1 million from $2 million. As a result of these factors, we reported a net loss of $76 million for the period, or a basic loss per share of $0.62 on weighted-average basic shares outstanding of 130,000,000.
Cash and cash equivalents were $2,103 million at June 30, 2026, compared with $1,884 million at the end of the prior period, an increase of $219 million, or 11.6%. Total debt was $2,239 million, essentially flat compared with $2,235 million in the prior period, and operating lease liabilities were $11 million compared with $9 million. Total liabilities were $98,898 million and total equity was $4,694 million at period end. Our reinsurance activity expanded significantly during the period, with reinsurance recoverables increasing 32.3% to $20,876 million from $15,777 million and funds held under reinsurance agreements increasing 40.0% to $17,457 million from $12,469 million. Loans receivable, net grew 33.5% to $9,265 million from $6,940 million, other investments increased 31.8% to $1,315 million from $998 million, and deferred policy acquisition costs increased 14.7% to $3,843 million from $3,351 million, while future policy benefits rose 14.7% to $10,856 million from $9,463 million. Retained earnings increased 11.3% to $2,665 million from $2,394 million, and treasury stock, at cost, increased to $163 million from $33 million, reflecting repurchases of our common stock during the period. Management believes that [COMPLETE: statement regarding whether existing cash and cash equivalents, investment portfolio cash flows, and available financing are sufficient to meet operating, investing, and financing requirements for at least the next twelve months]. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. We do not have material foreign currency or commodity price exposure.
The principal assumptions used to establish liabilities for future policy benefits are established at issue of the contract and include discount rates, mortality and cash surrender or policy lapse for our traditional life insurance products, and the assumptions used require considerable judgment. We review policyholder behavior experience at least annually and update these assumptions when deemed necessary based on additional information that becomes available. Discount rate assumptions are updated at each reporting period and also incorporate changes in risk free rates and option market values. Changes in, or deviations from, the assumptions previously used can significantly affect our reserve levels and related results of operations in a positive or negative direction. Mortality refers to the incidence of death on covered lives, which triggers contractual death benefit provisions, and on our deferred annuities and life insurance products, these provisions may allow for lump sum payments, payments over a period of time, or spousal continuation of the contract. We are involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
F&G Annuities & Life, Inc. is a public reporting company classified under Life Insurance, and our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. As of June 30, 2026, cash and cash equivalents were $2,103 million, compared with $1,884 million at the prior period end, an increase of 11.6%. Debt securities available for sale totaled $52,228 million, compared with $50,193 million at the prior period end, an increase of 4.1%, and other investments totaled $1,315 million, compared with $998 million, an increase of 31.8%. Changes in market interest rates affect the fair value of our fixed-income portfolio, with unrealized gains and losses on securities available for sale reflected in stockholders' equity. Accumulated other comprehensive loss was $1,658 million at June 30, 2026, compared with $1,670 million at the prior period end. [COMPLETE: estimated change in fair value of the fixed-income portfolio resulting from a hypothetical 100 basis point increase and decrease in market interest rates as of June 30, 2026.]
Interest rate movements also affect the crediting rates, surrender activity, and reserve levels associated with our insurance and annuity obligations. Policyholder account balances were $64,398 million at June 30, 2026, compared with $59,813 million at the prior period end, an increase of 7.7%, and future policy benefits were $10,856 million, compared with $9,463 million, an increase of 14.7%. Funds held under reinsurance agreements were $17,457 million, compared with $12,469 million, an increase of 40.0%, while reinsurance recoverables were $20,876 million, compared with $15,777 million, an increase of 32.3%. Loans receivable, net, were $9,265 million, compared with $6,940 million, an increase of 33.5%, and policy loans were $171 million, compared with $125 million, an increase of 36.8%. We seek to manage the interest rate sensitivity of our balance sheet by matching the duration and cash flow characteristics of our invested assets with those of our policyholder liabilities. [COMPLETE: description of asset-liability management program, including duration matching targets and use of derivative instruments, if any.] Debt was $2,239 million at June 30, 2026, compared with $2,235 million at the prior period end, an increase of 0.2%, and operating interest expense was $41 million for the current period, unchanged from $41 million in the prior period. [COMPLETE: fixed versus floating rate composition of outstanding debt and estimated impact of a hypothetical change in interest rates on interest expense.]
We do not have material foreign currency or commodity price exposure. Statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, hopes, intentions or strategies regarding the future. All forward-looking statements included in this Quarterly Report on Form 10-Q are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements.
F&G Annuities & Life, Inc. maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, management evaluated disclosure controls and procedures as of the end of the period and concluded they were effective at the reasonable assurance level. This evaluation covered our disclosure controls and procedures as of June 30, 2026. [COMPLETE: management to review and formally adopt the foregoing conclusion language, including the identification of the certifying officers, prior to filing.]
Any system of controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud.
No changes materially affected internal control over financial reporting during the quarter. Accordingly, there were no changes in our internal control over financial reporting during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We continue to monitor our controls and processes and will report any future changes that materially affect our internal control over financial reporting as required.
F&G Annuities & Life, Inc. is involved in legal proceedings arising in the ordinary course of business from time to time. These matters may include claims and disputes incidental to the conduct of the Company's life insurance and annuity operations. Management does not currently believe any pending matter is material to the financial statements.
As of June 30, 2026, management does not believe that any pending matter is material to the Company's financial statements. The outcome of legal proceedings is inherently uncertain, and the Company cannot predict with certainty the ultimate resolution of any pending or future matter. The Company will continue to monitor these matters and will make additional disclosure if and when any proceeding is determined to be material.
We anticipate various macroeconomic factors will continue to drive uncertainty and instability, which could have a significant impact on the Company during fiscal year 2026. These factors include, among others, consumer spending, business investment, government spending, government shutdown, the volatility and strength of the capital markets, investor and consumer confidence, foreign currency exchange rates, commodity prices, inflation levels, changes in trade policy, tariffs and trade sanctions on goods, trade wars, United States-China relations and supply chain disruptions. In light of increasing uncertainty in the markets we serve, we are unable to predict how long the current environment will last or the significance of the financial and operational impacts to us. These conditions contributed to a challenging operating environment during the period, in which we reported revenue of $1,421 million and a net loss of $76 million for the period ended June 30, 2026. There can be no assurance that our results in future periods will not be adversely affected by a continuation or worsening of these conditions.
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Our investment portfolio is substantial, with debt securities available for sale of $52,228 million as of the end of the period, compared with $50,193 million in the prior period, and changes in interest rates or credit spreads could affect the value of these holdings and our investment income. Our results also depend on policyholder behavior, which is sensitive to market conditions. To enhance the attractiveness and profitability of our products and services, we continually monitor the behavior of our customers, as evidenced by annuitization rates and lapse rates, which vary in response to changes in market conditions. If actual surrender rates are significantly different from those estimated, such differences could have a significant effect on our reserve levels and related results of operations. In addition, our reserves are sensitive to the discount rates used in their measurement. For liability for FPB reserves the discount rate used is based on the yield curve for A-rated corporate bonds as of the valuation date, and changes in the discount rates from the at-issue or at-purchase discount rates flow through other comprehensive income (loss). Our accumulated other comprehensive loss was $1,658 million as of the end of the period, and future policy benefits increased to $10,856 million from $9,463 million in the prior period.
We rely on reinsurance arrangements to manage risk and capital, and the failure of a reinsurer to perform could adversely affect our financial condition. Reinsurance recoverables increased to $20,876 million from $15,777 million in the prior period, and funds held under reinsurance agreements increased to $17,457 million from $12,469 million. We are also involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements. However, the outcome of litigation and regulatory matters is inherently uncertain and could differ from our expectations. [COMPLETE: statement regarding whether there have been any material changes to the risk factors disclosed in the Company's most recent Annual Report on Form 10-K, with cross-reference to Part I, Item 1A of that report.]
During the quarter ended June 30, 2026, F&G Annuities & Life, Inc. provides the following disclosure pursuant to Item 408(a) of Regulation S-K regarding the adoption or termination of Rule 10b5-1 trading arrangements and non-Rule 10b5-1 trading arrangements by its directors and officers. Company: F&G Annuities & Life, Inc. Period: 2026-06-30
[COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]