F&G's Second-Quarter Sales and Adjusted Earnings Ease
Adjusted net earnings were $85 million, or $0.65 a share, as gross sales slipped to $2.7 billion after a $3.2 billion first quarter.
F&G Annuities & Life (FG), a Des Moines insurer serving retail annuity and life customers and institutional clients, reported a second-quarter net loss of $81 million, or $0.62 a share, after $35 million of net earnings, or $0.26 a share, a year earlier.
The loss included $144 million of net unfavorable mark-to-market effects and $22 million of other unfavorable items, all excluded from adjusted results. Adjusted net earnings attributable to common shareholders were $85 million, or $0.65 a share, down from $110 million, or $0.82 a share, in the first quarter.
Gross sales declined to $2.7 billion from $3.2 billion in the first quarter, and net sales declined to $1.5 billion from $2.2 billion. Chief Executive Officer Conor Murphy said the quarter reflected continued momentum in core retail and a disciplined approach to sales, pricing and capital allocation.
Assets under management before reinsurance rose to $74.7 billion as of June 30, 2026, from $74.5 billion at March 31, an 8% increase from the second quarter of 2025. Retained AUM was $55.9 billion. Some 97% of fixed maturities were investment grade, and the portfolio remained matched to its liability profile. Credit-related impairments averaged 6 basis points over the past five years and remained below pricing assumptions through the first half of 2026.
Adjusted ROE excluding AOCI was 8.0%, down from 8.4% in the first quarter. Adjusted ROA was 68 basis points, down from 76 basis points. Adjusted ROA of 85 basis points over the last twelve months was in line with full-year 2025. Those ratios include short-term fluctuations in investment income from alternative investments.
Capital returned to shareholders increased to $128 million in the second quarter from $67 million in the first quarter, including $91 million of share repurchases versus $29 million. Common and preferred dividends were $37 million. First-half 2026 capital returned was approximately $195 million, through $75 million of dividends and $120 million of share repurchases.
In the first quarter, the board had authorized a three-year program under which F&G may repurchase up to $100 million of common stock. Murphy said the company sees opportunities to scale fee-based, higher-margin and less capital-intensive earnings streams while continuing to grow its core spread-based franchise.
F&G is well positioned to navigate a dynamic market environment, supported by its diversified distribution platform and strategic reinsurance relationships. Adjusted net earnings include significant income and expense items, as well as investment income from alternative investments below management’s long-term expected return.