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 | 1,421,000,000.00 | 1,364,000,000.00 | ||
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| Income tax expense (benefit) | -19,000,000.00 | 15,000,000.00 | ||
| Interest expense | 0.00 | 41,000,000.00 | ||
| Interest expense, operating | 41,000,000.00 | 41,000,000.00 | ||
| Net income attributable to noncontrolling interests | 1,000,000.00 | 2,000,000.00 | ||
| Other income statement items (derived) | 1,474,000,000.00 | 1,225,000,000.00 | ||
| Total Expenses | ||||
| Net Income | - | |||
| Less: preferred stock dividends | -5,000,000.00 | -5,000,000.00 | ||
| Net income (loss) available to common stockholders | - | |||
| Basic earnings per share | - |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 2,103,000,000.00 | 1,486,000,000.00 |
| Debt securities available for sale | 52,228,000,000.00 | 52,700,000,000.00 |
| Deferred policy acquisition costs | 3,843,000,000.00 | 3,628,000,000.00 |
| Deferred tax assets | 85,000,000.00 | 82,000,000.00 |
| Goodwill and intangibles | 2,124,000,000.00 | 2,731,000,000.00 |
| Loans receivable, net | 9,265,000,000.00 | 7,891,000,000.00 |
| Other assets (derived) | 5,046,000,000.00 | 4,651,000,000.00 |
| Other intangible assets, net | 6,536,000,000.00 | 6,275,000,000.00 |
| Other investments | 1,315,000,000.00 | 1,294,000,000.00 |
| Policy loans | 171,000,000.00 | 147,000,000.00 |
| Reinsurance recoverables | 20,876,000,000.00 | 17,545,000,000.00 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable and accrued liabilities | 2,846,000,000.00 | 2,701,000,000.00 |
| Debt | 2,239,000,000.00 | 2,237,000,000.00 |
| Deferred revenue | 633,000,000.00 | 551,000,000.00 |
| Funds held under reinsurance agreements | 17,457,000,000.00 | 14,191,000,000.00 |
| Future policy benefits | 10,856,000,000.00 | 10,755,000,000.00 |
| Operating lease liabilities | 11,000,000.00 | 12,000,000.00 |
| Other liabilities (derived) | 458,000,000.00 | 340,000,000.00 |
| Policyholder account balances | 64,398,000,000.00 | 62,726,000,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 4,609,000,000.00 | 4,804,000,000.00 |
| Total stockholders equity attributable to parent | ||
| Noncontrolling interests | 85,000,000.00 | 113,000,000.00 |
| Total Equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 172,000,000.00 | 19,000,000.00 |
| Depreciation and amortization | 348,000,000.00 | 311,000,000.00 |
| Changes in operating assets and liabilities, net | 1,710,000,000.00 | 2,246,000,000.00 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -831,000,000.00 | -4,273,000,000.00 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | -782,000,000.00 | 1,317,000,000.00 |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 2,264,000,000.00 | |
| Cash at end of period | 1,884,000,000.00 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 4,917,000,000.00 | 4,076,000,000.00 |
| Net income | 172,000,000.00 | 19,000,000.00 |
| Other equity movements | -395,000,000.00 | 462,000,000.00 |
| Balance at end of period | 4,694,000,000.00 | 4,557,000,000.00 |
F&G Annuities & Life, Inc. is a public reporting company operating in the life insurance industry, focused on the sector of the insurance industry serving the needs of middle-income Americans. The accompanying condensed financial statements are unaudited, have been prepared from the Company's connected books and records, and, in the opinion of management, reflect all adjustments necessary for a fair presentation of the interim periods presented; results for the interim period are not necessarily indicative of the results that may be expected for the full year. These notes relate to the period ended June 30, 2026.
Revenue for the period was $1,421 million, compared with $1,364 million in the prior period, an increase of 4.2%. Deferred revenue was $633 million at period end, compared with $474 million at the prior period end, an increase of 33.5%. The Company reported a net loss of $76 million for the period. Based on weighted-average basic shares outstanding of 130,000,000, basic loss per share was $(0.62) for the period. Net income attributable to noncontrolling interests was $1 million, compared with $2 million in the prior period.
Debt outstanding was $2,239 million at period end, compared with $2,235 million at the prior period end, an increase of 0.2%. Interest expense on operations was $41 million, unchanged from the prior period, while other interest expense of $41 million in the prior period did not recur in the current period. Operating lease liabilities were $11 million at period end, compared with $9 million at the prior period end, an increase of 22.2%. Policyholder account balances were $64,398 million at period end, compared with $59,813 million at the prior period end, an increase of 7.7%. Total liabilities were $98,898 million at period end. A 100 basis point shift in interest rates on the Company's floating rate debt and funding agreements would increase or decrease floating expense by approximately $33 million per year.
Stockholders' equity was $4,609 million at period end, compared with $4,438 million at the prior period end, an increase of 3.9%. Noncontrolling interests were $85 million at period end, compared with $119 million at the prior period end, a decrease of 28.6%. Total equity, including noncontrolling interests, was $4,694 million at period end.
| Current | Prior | |
|---|---|---|
| Debt | 2,239,000,000.00 | 2,237,000,000.00 |
| Operating lease liabilities | 11,000,000.00 | 12,000,000.00 |
| Policyholder account balances | 64,398,000,000.00 | 62,726,000,000.00 |
| Total debt | 66,648,000,000.00 | 64,975,000,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 4,609,000,000.00 | 4,804,000,000.00 |
| Total stockholders' equity | 4,609,000,000.00 | 4,804,000,000.00 |
F&G Annuities & Life, Inc. is a public reporting company operating in the life insurance industry. For the period ended June 30, 2026, we reported total revenue of $1,421 million, an increase of 4.2% from $1,364 million in the comparable prior-year period. Notwithstanding the growth in revenue, we recorded a net loss of $76 million for the period, which resulted in a basic loss per share of $0.62 based on weighted-average basic shares outstanding of 130 million. The net loss was driven primarily by other income statement items of $1,474 million, which increased 20.3% from $1,225 million in the prior-year period, outpacing the growth in revenue. Interest expense declined to zero from $41 million in the prior-year period, while operating interest expense was unchanged at $41 million. We recognized an income tax benefit of $19 million in the current period, compared to income tax expense of $15 million in the prior-year period, reflecting the pre-tax loss position for the period. Net income attributable to noncontrolling interests was $1 million, down from $2 million in the prior-year period.
Our balance sheet continued to grow, with policyholder account balances of $64,398 million, up 7.7% from $59,813 million, and future policy benefits of $10,856 million, up 14.7% from $9,463 million. Our investment portfolio expanded as debt securities available for sale increased 4.1% to $52,228 million from $50,193 million and other investments increased 31.8% to $1,315 million from $998 million. Reinsurance activity increased significantly, with reinsurance recoverables of $20,876 million, up 32.3% from $15,777 million, and funds held under reinsurance agreements of $17,457 million, up 40.0% from $12,469 million. Deferred policy acquisition costs increased 14.7% to $3,843 million from $3,351 million, consistent with continued new business activity. Stockholders equity increased 3.9% to $4,609 million from $4,438 million.
Our liquidity position strengthened during the period, with cash and cash equivalents of $2,103 million as of June 30, 2026, an increase of 11.6% from $1,884 million in the prior-year period. Total debt remained substantially unchanged at $2,239 million compared to $2,235 million in the prior-year period. 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. Based on our current cash and cash equivalents, investment portfolio, and expected cash flows from operations, management believes that our existing capital resources are sufficient to meet our operating, investing, and financing needs for at least the next twelve months.
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, our balance sheet included cash and cash equivalents of $2,103 million, an increase of 11.6% from $1,884 million in the prior period, and debt securities available for sale of $52,228 million, an increase of 4.1% from $50,193 million in the prior period. Changes in prevailing interest rates could affect the fair value of these instruments as well as the investment income we earn on them.
Our exposure to interest rate movements also extends to other interest-sensitive positions on our balance sheet, including other investments of $1,315 million, loans receivable, net of $9,265 million, and policy loans of $171 million as of June 30, 2026. In addition, we hold policyholder account balances of $64,398 million, an increase of 7.7% from $59,813 million in the prior period, which may be sensitive to changes in the interest rate environment. [COMPLETE: description of interest rate risk management practices and quantitative sensitivity analysis, if applicable].
We do not have material foreign currency or commodity price exposure. Statements 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, and all such forward-looking statements are based on information available to us on the date hereof; we assume no obligation to update any such forward-looking statements.
Management of F&G Annuities & Life, Inc., with the participation of its principal executive officer and principal financial officer, evaluated the effectiveness of the company's disclosure controls and procedures as of the end of the period covered by this report and concluded that the disclosure controls and procedures were effective at the reasonable assurance level. This evaluation pertains to the period ended June 30, 2026. [NOTE: Management's conclusion language must be reviewed and adopted by management before filing.]
Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports the company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
There were no changes in the company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the quarter ended June 30, 2026.
The Company is involved in legal proceedings arising in the ordinary course of business from time to time. We are subject to litigation risk in the normal course of our operations, and although management does not currently believe any pending matter is material to the financial statements, adverse developments in such matters could affect our results.
Management does not currently believe that any pending legal matter is material to the Company's financial statements. There can be no assurance, however, that risks will not materialize or that other risks not currently known to us, or that we currently deem immaterial, will not adversely affect our business, financial condition, or results of operations.
There have been no material changes to the risk factors previously disclosed in our prior filings with the Securities and Exchange Commission, except as supplemented below. [COMPLETE: reference to specific prior Annual Report on Form 10-K, including filing date]. 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.
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and prolonged volatility in interest rates could adversely affect our results of operations and financial condition. 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, for our liability for future policy benefits 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).
Adverse developments in any of the foregoing risks could affect our operating performance in future periods. For the period ended June 30, 2026, we reported revenue of $1,421 million and a net loss of $76 million, and continuation of the current macroeconomic environment could result in further pressure on our results. We are also involved in legal proceedings arising in the ordinary course of business from time to time; while management does not currently believe any pending matter is material to our financial statements, an unfavorable outcome in one or more of these matters could adversely affect us.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K with respect to Rule 10b5-1 trading arrangements of directors and officers of F&G Annuities & Life, Inc. for the quarterly period ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]