FG Summer 2024 Investor Presentation
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.
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F&G Investor Update | Summer 2024 |
3 
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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
$4.4B in 2Q24 - Record assets under management (AUM); well positioned for sustained growth
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1H24 Gross Sales |
1H24 |
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+ 25% YoY |
+ 30% YoY |
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AUM before |
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flow reinsurance1 |
AUM1 |
- Diversified, high quality investment portfolio well matched to liabilities
- Consistent economics and margin expansion over time despite short-term earnings volatility
- Strong balance sheet with financial flexibility
- Capital allocation supports growth and retuof capital to shareholders
+ 21% YoY
1H24 Adjusted ROA2
1.30%
Above
1.10% baseline
1H24 Capital Retuto
Shareholders
Common and
Preferred Dividends
+ 13% YoY
1H24 Adjusted ROE2
12%
+ 2% YoY
Market
Capitalization3
- 64%YoY
1As of
2Attributable to common shareholders; metrics refer to retuon assets ex significant items and adjusted retuon equity ex AOCI and ex significant items 3As of
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F&G Investor Update | Summer 2024 |
4 |
Second Quarter Financial Highlights
F&G expects steady and growing adjusted net earnings over time, excluding significant items which include short-termmark-to-market effects
Financial Highlights
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($M) - except per share data and ROA |
Quarterly |
Year-to-Date |
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2Q23 |
2Q24 |
1H23 |
1H24 |
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Gross sales |
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Net sales |
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Assets under management (AUM) |
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AUM before flow reinsurance |
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Adjusted retuon assets (ROA)1 |
0.62% |
0.98% |
0.62% |
0.98% |
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Net earnings (loss)1 |
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( |
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Net earnings (loss) per diluted share1 |
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( |
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Adjusted net earnings (ANE)1 |
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Adjusted net earnings per diluted share1 |
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Adjusted weighted average diluted shares |
125 |
131 |
125 |
130 |
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Adjusted ROA - ex significant items1 |
1.16% |
1.30% |
1.16% |
1.30% |
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ANE - ex significant items1 |
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ANE per diluted share - ex significant items1 |
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1Attributable to common shareholders
Significant Items - Quarterly
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ANE ($M) and Per Share |
2Q23 |
2Q24 |
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Favorable / (Unfavorable) |
($M) |
Per |
($M) |
Per |
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share |
share |
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Alternatives investment short-term returns versus |
(55) |
( |
(20) |
( |
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long-term retuexpectations |
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Other significant (income) expense items |
5 |
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(12) |
( |
Significant Items - Year-to-Date
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ANE ($M) and Per Share |
1H23 |
1H24 |
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Favorable / (Unfavorable) |
($M) |
Per |
($M) |
Per |
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share |
share |
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Alternatives investment short-term returns versus |
(88) |
( |
(72) |
( |
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long-term retuexpectations |
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Other significant (income) expense items |
(32) |
( |
(6) |
( |
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F&G Investor Update | Summer 2024 |
5 |
We Are Driving Sustainable ROE Expansion
Adjusted ROE ex AOCI - 2020 to 2Q24
20%
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15% |
6% |
(2%) |
12% |
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10% |
8% |
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5% |
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0% |
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2020 |
Earnings |
MTM & Other |
2Q24 |
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ANE ($M)1 - |
233 |
604 |
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Rolling 4 |
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quarters |
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F&G Equity ex. |
2,771 |
5,234 |
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AOCI2 ($M) - |
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5 pt average |
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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
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
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F&G Investor Update | Summer 2024 |
6 |
… With Strong ROE Driving Book Value Growth
BVPS ex AOCI1 -
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12.74 |
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(0.94) |
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2.73 |
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4.08 |
(3.49) |
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YE 2020 |
LTDI |
Debt-to- |
BVPS After |
Earnings |
BVPS With |
Retuof |
BVPS |
MTM |
QE 2Q24 |
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Recast & |
Equity |
1x Effects |
Underlying |
Capital |
Before |
Movements |
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System |
Conversion |
Earnings |
MTM |
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Conversion |
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F&G Equity ex. |
2,877 |
428 |
400 |
3,705 |
1,482 |
5,187 |
(120) |
5,067 |
290 |
5,357 |
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AOCI1 ($M) |
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Shares |
105 |
21 |
126 |
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BVPS ex AOCI of
- 45% before MTM vs. 2020
BVPS ex AOCI of
- 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
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F&G Investor Update | Summer 2024 |
7 |
We Are Achieving Higher Ratings Over Time
F&G's Recent History
F&G has received multiple ratings
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Launched |
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FNF Merger |
Institutional |
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Completed |
Markets |
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(PRT & FABN) |
F&G Partial Spinoff |
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Broker Dealer |
Launched |
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Channels |
Owned |
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Distribution |
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Launched Flow |
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Reinsurance |
2022 |
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2021 |
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2020 |
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Upgraded to 'A-' |
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Upgraded to 'A-' |
Upgraded to 'Baa1'
Note: Reflects financial strength rating of primary operating subsidiaries
F&G at
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
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F&G Investor Update | Summer 2024 |
8 |
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
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A |
A- |
A- |
A3 |
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Stable |
Stable |
Stable |
Stable |
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Fitch Ratings |
Moody's |
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F&G Investor Update | Summer 2024 |
9 |
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
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
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F&G Investor Update | Summer 2024 |
10 |
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