F&G Annuities & Life Inc. (FG)FG

F&G Annuities & Life Inc. - Stock Overview

Company Profile

Detailed History and Background:

F&G Annuities & Life Inc. (NYSE: FG) is a subsidiary of FGL Holdings, a financial services holding company based in Des Moines, Iowa. F&G Annuities & Life was initially established in 1963 as Fidelity Guaranty Life Insurance Company. The company primarily focused on selling fixed and indexed annuities through independent marketing organizations and financial institutions. In 2013, FGL Holdings changed its name from Fidelity & Guaranty Life to FGL Holdings and reorganized its operations. F&G Annuities & Life became a publicly traded company in 2018.

Core Business Areas:

F&G Annuities & Life primarily operates in two segments:

• Annuities: This segment offers a range of fixed, indexed, and variable annuity products designed to help individuals accumulate savings for retirement and provide guaranteed income streams.
• Life Insurance: This segment offers individual life insurance products, including term life, whole life, and universal life, designed to provide financial protection for individuals and their families.

Leadership and Corporate Structure:

• CEO: Chris D. Blunt
• President: Chris Sloan
• CFO: Douglas W. Anderson
• Board of Directors:
  • Chris Blunt (Chairman)
  • Robert G. Bland
  • Timothy P. Burke
  • Charles A. Cox
  • Mark W. Dielmann
  • David A. Epperson
  • Susan M. Keating
  • Douglas L. Konyha
  • Thomas G. Long
  • William T. McDaniel Jr.
  • Timothy R. Niccum
  • Judith S. Olson
  • Michael A. Rand

Top Products and Market Share

Top Products:

• Fixed Annuities: F&G offers a range of fixed annuities with different guaranteed interest rates and terms.
• Indexed Annuities: F&G's indexed annuities offer potential for growth based on the performance of a stock market index, while protecting against downside risk.
• Variable Annuities: F&G's variable annuities allow investors to choose from a variety of investment options to potentially grow their savings.
• Term Life Insurance: F&G offers term life insurance for various periods, providing death benefits to beneficiaries.
• Whole Life Insurance: F&G's whole life insurance offers lifetime coverage and builds cash value over time.
• Universal Life Insurance: F&G's universal life insurance offers flexible premium payments and adjustable death benefits.

Market Share:

F&G is a relatively small player in the annuity and life insurance markets. According to LIMRA, F&G's market share for individual annuities in the US was 1.4% in 2022. For life insurance, F&G's market share was 0.2% in 2022.

Product Performance and Market Reception:

F&G's annuity products have received generally positive reviews from consumers and industry analysts. The company's indexed annuities have been particularly popular, due to their potential for growth and downside protection. F&G's life insurance products have also received positive reviews, with customers particularly appreciating the company's flexible product options and customer service.

Total Addressable Market

The total addressable market for F&G Annuities & Life is significant. The global annuity market is expected to reach $14.4 trillion by 2027, while the US life insurance market is expected to reach $3.7 trillion by 2028.

Financial Performance

Recent Financial Statements:

• Revenue: F&G's revenue for the year ended December 31, 2022, was $1.6 billion, an increase of 12% from the previous year.
• Net Income: F&G's net income for the year ended December 31, 2022, was $154.7 million, an increase of 24% from the previous year.
• Profit Margin: F&G's profit margin for the year ended December 31, 2022, was 9.7%, an increase from 7.9% in the previous year.
• Earnings per Share (EPS): F&G's EPS for the year ended December 31, 2022, was $2.15, an increase from $1.74 in the previous year.

Financial Performance Comparison:

F&G's financial performance has been improving in recent years. The company's revenue, net income, profit margin, and EPS have all grown significantly in the past few years. F&G's strong financial performance can be attributed to several factors, including growth in sales of indexed annuities and improved expense management.

Cash Flow and Balance Sheet Health:

F&G's cash flow from operations was $244.3 million for the year ended December 31, 2022. The company's balance sheet is relatively healthy, with a debt-to-equity ratio of 0.47.

Dividends and Shareholder Returns

Dividend History:

F&G has paid a dividend every quarter since going public in 2018. The company's current annual dividend is $0.88 per share, resulting in a dividend yield of approximately 2.5%.

Shareholder Returns:

F&G's stock price has performed well in recent years. Over the past year, the stock has returned 25.4%. Over the past five years, the stock has returned 175.5%.