FG 2024 Annual Report

ANNUAL REPORT

2024 ANNUAL REPORT

2 | F&G Annuities & Life, Inc.

Forward-Looking Statements

This annual report contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking

statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact

of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of this annual report and other filings with the Securities and Exchange Commission (SEC).

2024 ANNUAL REPORT F&G Annuities & Life, Inc. | 3

William P. Foley, II Christopher O. Blunt

Executive Chairman Chief Executive Officer

Dear Fellow Shareholders:

I am very pleased that we have delivered record results once again in 2024, highlighted by record sales and assets under management. Our success is a testament to the hard work and dedication of our employees - it truly would not be possible without them.

I would also like to thank our parent company Fidelity National Financial, Inc. (FNF) and the F&G Board of Directors for their support. I am very pleased to say that we have significantly exceeded all of the financial guidance that the FNF management team outlined at the time of the acquisition in June of 2020.

Fast forward over four years since the merger, and we have continued to successfully execute on our diversified growth strategy. This proven track record and our strong balance sheet have been recognized by ratings upgrades in 2024, including A.M. Best's upgrade of our financial strength rating to 'A', (Excellent) and Moody's upgrade of our long-term issuer rating.

Well positioned for secular tailwinds

F&G is a market leader and in an enviable position as we serve large and growing markets that are also benefiting from favorable market conditions and attractive secular tailwinds that are expected to continue.

First, we serve a growing retirement population, with more than 10,000 Americans turning 65 years old every day and a projected 30% increase over the next 25 years in people aged 65 to 100 years old. This is fueling strong demand for our fixed annuity products as people plan for a retirement that could last more than 30 years. We are also seeing robust growth in our middle market life insurance business, where consumers are seeking solutions for both protection and retirement needs.

Additionally, both retirees and advisors are turning to fixed annuities as a bond alternative in the traditional balanced portfolio. In light of today's market volatility, it is not hard to see where the guaranteed tax deferred growth and principal protection that our products offer is attractive.

Finally, we are seeing that U.S. consumers are holding more than $4 trillion in retail money market fund assets. As money market rates continue to decline, we would expect that these consumers will look to lock in the relatively higher interest rates through attractive solutions like fixed annuities.

As demonstrated in 2024, we are well positioned to benefit from these secular trends and deliver long term

growth through our multi-channel sales platform.

Delivered record results in 2024

2024 was an exceptionally strong year, as we achieved record sales growth, record assets under management (AUM) and record adjusted net earnings, while also continuing to diversify our earnings and expand our margin beyond spread-based sources.

4 | F&G Annuities & Life, Inc. 2024 ANNUAL REPORT

Turning to our 2024 results, F&G delivered record gross sales of $15.3 billion, a 16% increase over 2023. Net sales were $10.6 billion, a 14% increase over 2023.

AUM before flow reinsurance was a record $65.3 billion at year end 2024, an increase of 17% over year end 2023. This included record retained AUM of $53.8 billion, a 10% increase over year end 2023.

Our retained investment portfolio remained high quality with 96% of our fixed maturities being investment grade. Importantly, we continue to hold very little exposure to commercial mortgages in the office sector at only 1.7% of our total portfolio. Credit related impairments remained low and stable having averaged 6 basis points over the past five years, below our pricing assumption. Given the uncertain interest rate outlook,

we have hedged approximately two-thirds of our floating rate assets, which are now only 6% of our total

portfolio, net of hedging.

We continue to execute our capital light, strategic initiatives through utilizing flow reinsurance and growing our owned distribution business which, taken together, offer F&G a higher retuearnings stream. Specific to owned distribution, the purchase of two majority stakes in 2024 brought our cumulative investment to

$680 million and the portfolio is performing well.

F&G's strong balance sheet positioned us well to drive growth and capture the market opportunity in 2024. Our growth was funded through strong inforce capital generation, reinsurance and excess debt capacity. Given the compelling market opportunity that exists, FNF's Board of Directors made the decision to invest

$250 million into F&G's mandatory convertible preferred stock issued to FNF in early 2024.

Our capital allocation priorities focus on deploying capital to best maximize shareholder value through both continued investment in our business and generation of distributable cash for retuof capital to shareholders. In 2024, we returned approximately $125 million of capital to our shareholders, through common and preferred stock dividends.

Looking to the year ahead

We have made strong progress toward the medium term financial targets that we laid out at our 2023 Investor Day. As we enter 2025, we have real momentum and remain focused on continuing to deliver long-term shareholder value by:

• driving sustainable asset growth from our retail and pension risk transfer growth strategies, including continued traction for our new registered indexed-linked annuity (RILA) product launched in 2024,

• generating adjusted retuon asset (ROA) expansion from enhanced investment margin, scale benefits and fee-based earnings from accretive flow reinsurance, and

• diversifying earnings through strong growth in our middle market life insurance business and

owned distribution strategies.

To conclude, this is an exciting time for F&G and I remain optimistic about the opportunities ahead.

I would like to thank our shareholders for their continued support as we continue to create shareholder value.

Christopher Blunt

Chief Executive Officer

2024 ANNUAL REPORT F&G Annuities & Life, Inc. | 5

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F&G Annuities & Life Inc. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 19:47 UTC.