F&G Reports Mixed 2025 Results Amid Record AUM Growth
Event summary
- F&G reported $124M in net earnings for Q4 2025, down from $323M in Q4 2024, with full-year net earnings of $248M, down from $622M in 2024.
- Record AUM before flow reinsurance reached $73.1B, up 12% from 2024, driven by $14.6B in gross sales.
- Company announced the planned sale of its Bermuda subsidiary, F&G Life Re Ltd, expected to close in Q1 2026.
- F&G returned $137M in capital to shareholders through dividends in 2025.
- Adjusted ROA was 87 basis points for Q4, with adjusted ROE excluding AOCI at 8.2%.
The big picture
F&G's 2025 results reflect a mixed performance, with strong AUM growth offset by declining net earnings. The company is executing on its strategy to shift toward a more fee-based, higher-margin business model, as evidenced by its record AUM and disciplined expense management. The planned sale of its Bermuda subsidiary signals a strategic realignment, potentially freeing up capital for other initiatives. The broader industry is seeing increased focus on capital efficiency and fee-based revenue streams, aligning with F&G's strategic direction.
What we're watching
- Capital Efficiency
- Whether F&G can sustain its adjusted ROA and ROE metrics amid volatile alternative investment returns.
- Strategic Repositioning
- How the sale of the Bermuda subsidiary will impact F&G's reinsurance strategy and capital structure.
- Market Demand
- The pace at which F&G can grow core sales in indexed annuities and universal life products.
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