FGNHIGH SIGNALFINANCIAL10-K

FGN experienced a dramatic 58.5% decline in net income despite significant asset growth, indicating deteriorating operational efficiency and profitability.

The company's net income collapsed from $639M to $265M while total assets grew 15.7% to $98.4B, suggesting major operational challenges or one-time charges that severely impacted profitability. The removal of specific business metrics (731K policyholders, $52.3B in-force liabilities) and conflict-related risk language may indicate management is downplaying operational transparency during this period of financial stress.

Comparing 2026-02-26 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

FGN shows a troubling disconnect between growth and profitability, with total assets expanding 15.7% to $98.4B and stockholders' equity increasing 21.6% to $4.8B, yet net income plummeting 58.5% to $265M. Operating cash flow declined 22% to $4.7B while interest expense surged 36.1% to $132M, and cash reserves dropped significantly by 34.4% to $1.5B. This pattern suggests the company is growing through acquisitions (evidenced by new goodwill from the Roar Joint Venture acquisition) but at the expense of operational efficiency and cash generation, creating potential liquidity and profitability concerns for investors.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-58.5%
$639.0M→$265.0M

Net income declined 58.5% — review whether driven by operations, interest costs, or non-recurring items.

Interest Expense
P&L
+36.1%
$97.0M→$132.0M

Interest expense surged 36.1% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-34.4%
$2.3B→$1.5B

Cash declined 34.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Operating Cash Flow
Cash Flow
-22%
$6.0B→$4.7B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
+21.6%
$4.0B→$4.8B

Equity base grew 21.6% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Share Buybacks
Cash Flow
-16.7%
$12.0M→$10.0M

Buyback activity reduced 16.7% — capital being redeployed elsewhere or cash conservation underway.

Total Assets
Balance Sheet
+15.7%
$85.0B→$98.4B

Asset base grew 15.7% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+15.5%
$81.0B→$93.5B

Liabilities increased 15.5% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-28
ADDED
There have been no changes in goodwill since the FNF acquisition.
Refer to Note A - Business and Summary of Significant Accounting Policies regarding our accounting policy for Goodwill and discussion of impairment testing.
Subsequent to December 31, 2023, we recorded $ 262 million of goodwill associated with the acquisition of Roar Joint Venture, LLC.
See Note W - Subsequent Events for further details about the acquisition and goodwill recorded.
The registrant had outstanding 135,610,118 shares of common stock as of January 31, 2026.
Form 10-K Summary 238 Signatures 239 3 Introductory Note The following describes the business of F G Annuities Life, Inc.
The geopolitical events such as the on-going conflicts in Russia, Ukraine and the Middle East may adversely affect our business, financial condition, results of operations and cash flows.
Changes in trade policies, tariffs, or global economic conditions could materially affect our business and financial results.
Risks associated with a shutdown of the United States Government.
Changes to regulations under ERISA could adversely affect the Company by increasing the Company s regulatory and compliance burden.
REMOVED
The registrant had outstanding 126,773,653 shares of common stock as of January 31, 2025.
Form 10-K Summary 223 Signatures 224 3 Introductory Note The following describes the business of F G Annuities Life, Inc.
The on-going conflicts in Russia, Ukraine and the Middle East may adversely affect our business, financial condition, results of operations and cash flows.
As of December 31, 2024, F G has approximately 731,000 policyholders who count on the safety and protection of our fixed annuity and life insurance products.
Gross sales profitability increased from $4.5 billion for the full year 2020 to $15.3 billion in 2024.
We have in-force liabilities of $52.3 billion at December 31, 2024, with a liability duration of approximately 6 years, well matched to our assets.
For the year ended December 31, 2024, net earnings attributable to F G totaled $639 million, we produced adjusted net earnings attributable to F G common shareholders of $546 million, and we had an adjusted return on assets attributable to F G common shareholders ( ROA ) of 106 basis points.
Adjusted net earnings attributable to F G common shareholders the year ended December 31, 2024 included $514 million of investment income from alternative investments and $46 million of collateralized loan obligations ( CLOs ) redemptions and bond prepay income, and $14 million tax valuation allowance, partially offset by $26 million of net expense from actuarial assumption and model updates and other items.
Alternative investments investment income based on management s long-term expected return of approximately 10% was $659 million.
We are focused on growing our inforce liabilities and AUM, driven by sales of attractively priced liabilities across our multi-channel new business platform.
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