F&G Annuities & Life Inc. (FG)

F&G Annuities & Life Inc.: A Comprehensive Overview

Company Profile:

History and Background: Established in 1984, F&G Annuities & Life Inc. (NYSE: FG) is a subsidiary of Fidelity National Financial, Inc. (NYSE: FNF). Headquartered in Jacksonville, Florida, F&G specializes in offering individual and group annuities, life insurance products, and retirement plan solutions.

Core Business Areas: F&G operates through two segments:

1. Annuities: This segment offers various fixed, indexed, and variable annuities to individuals and groups.
2. Life Insurance: This segment provides term, universal, and whole life insurance products to individuals and groups.

Leadership Team:

• Christopher M. Liddell, Chairman and CEO
• Michael J. Pappagallo, President and Chief Operating Officer
• Mark A. Konen, Chief Financial Officer
• William G. Hennig, Executive Vice President and Chief Administrative Officer
• Karen E. Jensen, Chief Legal Officer

Corporate Structure: F&G operates as a subsidiary of Fidelity National Financial (FNF), a diversified financial services holding company. F&G maintains its own board of directors and management team.

Top Products and Market Share:

Top Products: F&G's top products include:

• Individual Annuities:
  • Fixed Annuities: F&G Advantage Premier 6
  • Indexed Annuities: F&G Dynamic Advantage Index 9
  • Variable Annuities: F&G Freedom Choice
• Group Annuities:
  • F&G Secure Choice
  • F&G Secure Choice Plus
• Life Insurance:
  • F&G Term Life
  • F&G Universal Life
  • F&G Whole Life

Market Share: F&G holds a significant market share in the individual annuity segment, ranking among the top 10 providers in the United States. However, the exact market share figure is not publicly available.

Product Performance Comparison: F&G's products consistently receive positive reviews and ratings from industry experts. The F&G Freedom Choice Variable Annuity, for example, received a 4.5-star rating from Investopedia.

Total Addressable Market:

The US annuities market was valued at $2.8 trillion in 2022 and is expected to reach $3.5 trillion by 2027, indicating a growing market for F&G's products and services.

Financial Performance:

Revenue and Net Income: F&G reported $1.4 billion in total revenue and $127.7 million in net income for the fiscal year ending December 31, 2022. This represents a year-over-year increase of 10% and 18% respectively.

Profit Margins: F&G's profit margin has consistently been around 8-10% in recent years, indicating efficient cost management and healthy profitability.

Earnings per Share (EPS): F&G's EPS for 2022 was $4.01, representing a 15% year-over-year increase.

Cash Flow and Balance Sheet: F&G maintains a healthy cash flow and balance sheet with a strong capital position. The company has consistently generated positive operating cash flow in recent years, which helps support its dividend payout and growth initiatives.

Dividends and Shareholder Returns:

Dividend History: F&G has a history of paying regular dividends, currently at an annual rate of $1.88 per share, resulting in a dividend yield of around 3.5%. The company has also increased its dividend payout in recent years.

Shareholder Returns: F&G's total shareholder return (TSR) for the past year was 14.5%, outperforming the S&P 500 index. Over the past 5 years, F&G's TSR has been approximately 45%, demonstrating its potential for generating long-term value for shareholders.

Growth Trajectory:

Historical Growth: F&G has experienced significant growth over the past 5 to 10 years, driven by strong sales of its annuity products and effective expense management.

Future Growth Projections: The company expects continued growth in the coming years, supported by the aging population and increasing demand for retirement savings products. F&G aims to achieve this growth through organic initiatives such as expanding its product offerings and distribution channels and strategic acquisitions.

Recent Growth Initiatives: F&G recently launched a new line of indexed annuities and expanded its distribution network to include independent insurance agents.

Market Dynamics:

Industry Overview: The annuity and life insurance market is highly competitive and is influenced by several factors, including interest rates, market volatility, and regulatory changes. The aging population and increasing demand for retirement savings are driving growth in this market.

F&G's Positioning: F&G is well-positioned within the industry due to its strong brand recognition, diverse product offerings, and efficient operating model. The company is adapting to market changes through product innovation and technology adoption.

Competitors:

Key Competitors: F&G's key competitors in the individual annuity and life insurance market include:

• Prudential Financial (PRU)
• MetLife (MET)
• **Amer