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August 5, 2024 Newswires No comments

FG Summer 2024 Investor Presentation

U.S. Markets via PUBT

F&G Investor Update

Summer 2024

Non-GAAP Financial Measures

Generally Accepted Accounting Principles ("GAAP") is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this document includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of thesenon-GAAPfinancial measures to the most directly comparable GAAP measures are provided within.

F&G Investor Update | Summer 2024

Executing To Deliver Shareholder Value

Strong 2Q24 with record AUM, record gross sales and ROA expansion; well on pace to achieve Investor Day targets

Record gross sales of $4.4B in 2Q24
Record assets under management (AUM); well positioned for sustained growth

1H24 Gross Sales	1H24 Net Sales
$7.9B	$5.7B
+ 25% YoY	+ 30% YoY
AUM before
flow reinsurance1	AUM1

Diversified, high quality investment portfolio well matched to liabilities
Consistent economics and margin expansion over time despite short-term earnings volatility
Strong balance sheet with financial flexibility
Capital allocation supports growth and retuof capital to shareholders

$61.4B

+ 21% YoY

1H24 Adjusted ROA2

1.30%

Above

1.10% baseline

1H24 Capital Retuto

Shareholders

$62M

Common and

Preferred Dividends

$52.2B

+ 13% YoY

1H24 Adjusted ROE2

12%

+ 2% YoY

Market

Capitalization3

$5.4B

64%YoY

1As of 6/30/2024

2Attributable to common shareholders; metrics refer to retuon assets ex significant items and adjusted retuon equity ex AOCI and ex significant items 3As of 7/31/2024

F&G Investor Update | Summer 2024

Second Quarter Financial Highlights

F&G expects steady and growing adjusted net earnings over time, excluding significant items which include short-termmark-to-market effects

Financial Highlights

($M) - except per share data and ROA	Quarterly	Year-to-Date
	2Q23	2Q24	1H23	1H24
Gross sales	$3,008	$4,420	$6,289	$7,915
Net sales	$2,212	$3,445	$4,421	$5,747
Assets under management (AUM)	$46,004	$52,208	$46,004	$52,208
AUM before flow reinsurance	$50,948	$61,370	$50,948	$61,370
Adjusted retuon assets (ROA)1	0.62%	0.98%	0.62%	0.98%
Net earnings (loss)1	$130	$198	($65)	$309
Net earnings (loss) per diluted share1	$1.04	$1.55	($0.52)	$2.45
Adjusted net earnings (ANE)1	$79	$139	$140	$247
Adjusted net earnings per diluted share1	$0.63	$1.10	$1.12	$1.97
Adjusted weighted average diluted shares	125	131	125	130
Adjusted ROA - ex significant items1	1.16%	1.30%	1.16%	1.30%
ANE - ex significant items1	$129	$171	$260	$325
ANE per diluted share - ex significant items1	$1.03	$1.34	$2.08	$2.57

1Attributable to common shareholders

Significant Items - Quarterly

ANE ($M) and Per Share	2Q23	2Q24

Favorable / (Unfavorable)	($M)	Per	($M)	Per
share	share

Alternatives investment short-term returns versus	(55)	($0.44)	(20)	($0.15)
long-term retuexpectations

Other significant (income) expense items	5	$0.04	(12)	($0.09)

Significant Items - Year-to-Date

ANE ($M) and Per Share		1H23	1H24
Favorable / (Unfavorable)	($M)	Per	($M)	Per
share	share

Alternatives investment short-term returns versus	(88)		($0.70)	(72)	($0.56)
long-term retuexpectations

Other significant (income) expense items	(32)		($0.26)	(6)	($0.04)

F&G Investor Update | Summer 2024

We Are Driving Sustainable ROE Expansion

Adjusted ROE ex AOCI - 2020 to 2Q24

20%

15%			6%	(2%)	12%

10%	8%


5%
0%
2020		Earnings		MTM & Other	2Q24


ANE ($M)1 -	233					604
Rolling 4
quarters
F&G Equity ex.	2,771					5,234
AOCI2 ($M) -
5 pt average

Adjusted ROE ex AOCI expansion +4% vs. 2020, driven by strong profit generation and balanced capital management

Adjusted net earnings reflects asset growth and margin expansion
Change in equity reflects mark-to-market movements which are unrealized and point in time, retuof capital and one- time effects

1Attributable to common shareholders; metric refers to adjusted net earnings ex significant items. 2020 reflects post merger period from 6/1/2020 to 12/31/2020

2F&G Equity attributable to common shareholders, excluding accumulated other comprehensive income (ex AOCI). 2020 reflects average equity as 3 point average for 2Q20, 3Q20 and 4Q20

F&G Investor Update | Summer 2024

… With Strong ROE Driving Book Value Growth

BVPS ex AOCI1 - 12/31/2020 to 6/30/2024

$45.00														12.74	$40.73	(0.94)		$39.79	2.73	$42.52
$40.00


$35.00	$27.40	4.08	(3.49)
$30.00		$27.99

$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
		YE 2020		LTDI		Debt-to-		BVPS After		Earnings		BVPS With		Retuof		BVPS		MTM		QE 2Q24

					Recast &			Equity		1x Effects				Underlying			Capital		Before		Movements
					System		Conversion								Earnings						MTM
				Conversion

F&G Equity ex.			2,877		428		400		3,705		1,482		5,187		(120)		5,067	290		5,357
AOCI1 ($M)

Shares O/S2 (M)			105				21															126

BVPS ex AOCI of $39.79;

45% before MTM vs. 2020

BVPS ex AOCI of $42.52;

55% after MTM vs. 2020

$12.74 per share increase due to underlying business performance
($0.94) per share decrease for capital actions
$2.73 per share increase due to mark-to-market movements which are unrealized and point in time

1Attributable to common shareholders and excluding accumulated other comprehensive income (ex AOCI) 2Outstanding shares of 105,000,000 as of 12/31/2020 and 126,104,247 as of 6/30/2024

F&G Investor Update | Summer 2024

We Are Achieving Higher Ratings Over Time

F&G's Recent History

F&G has received multiple ratings

			Launched
	FNF Merger	Institutional
	Completed	Markets
	Launched Bank &	(PRT & FABN)	F&G Partial Spinoff

		$2.4B Market Cap
	Broker Dealer	Launched

	Channels	Owned
			Distribution
	Launched Flow
	Reinsurance			2022


			2021
	2020
	Upgraded to 'A-'
Upgraded to 'A-'

Upgraded to 'Baa1'

Note: Reflects financial strength rating of primary operating subsidiaries

F&G at 7/31/2024

$5.4B Market Cap

2024

2023

Upgraded to 'A'

Upgraded to 'A3'

Upgraded Hold co

upgrades over time, reflecting our upward trajectory

Scaling business to generate profitable growth
Diversifying sources of earnings
Actively positioning our high quality and diversified investment portfolio
Maintaining strong capitalization and financial flexibility
Conservatively managing to the most stringent capital requirements of our regulators & rating agencies, including our offshore entities

F&G Investor Update | Summer 2024

About F&G Snapshot

Our Product Lines

Retail Annuities

Fixed indexed annuity (FIA)
Registered index-linked annuities (RILA)
Multi-yearguaranteed annuity (MYGA)
Pension Risk Transfer (PRT) Life Insurance
Indexed universal life (IUL)

Funding Agreements

Funding agreement backed notes (FABN)
Federal Home Loan Bank (FHLB)

Background

Founded in 1959 as a life insurance company
Listed on the New York Stock Exchange (NYSE: FG) eff. 12/1/2022
Fidelity National Financial (NYSE: FNF) retains ~85% ownership
Headquartered in Des Moines, IA; 1,200+ employees
Ranking as a Top Workplaces company for 6 consecutive years

Five Distinct Distribution Channels / Markets

Retail Channels

Independent insurance agents (IMOs)
Broker Dealers
Banks

Institutional Markets

Pension risk transfer
Funding agreements

Financial Strength Ratings

A	A-	A-	A3
Stable	Stable	Stable	Stable
A.M. Best	S&P Global	Fitch Ratings	Moody's

F&G Investor Update | Summer 2024

F&G's Competitive Advantages

Targeting Large and Growing Markets

Superior Ecosystem

F&G is a nationwide leader in the large markets we play in, and we expect demographic trends will provide tailwinds to give us significant room to continue growing - including untapped Middle Market demand for Life coverage and the opportunity to migrate consumers from CDs to fixed annuities

We have long-standing relationships with multiple distribution channels, an investment edge, and a track record of attracting top talent

Track Record of Success

We have delivered consistent top line growth and retuon assets across varying market cycles, and we expect to continue to outperform the rest of the market, whether rates are rising or falling

Driving Margin Expansion and

Improved Returns

F&G is pursuing strategies to grow earnings, while generating significant positive net cash flow and diversifying into "capital light" flow reinsurance and accretive owned distribution to generate higher ROEs

F&G Investor Update | Summer 2024

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F&G Annuities & Life Inc. published this content on 05 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2024 20:35:06 UTC.