F&G (FG) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 20, 2026
AI-Generated Deep Dive Summary
F&G (FG) reported strong financial performance in its Q4 2025 earnings call, driven by robust asset growth and revenue generation. Assets Under Management (AUM) rose to $73.1 billion, a 12% year-over-year increase fueled by $14.6 billion in gross sales. Key highlights included record Retained AUM of $57.6 billion, reflecting a 7% YoY growth, and Core Sales reaching $9.0 billion for the year. While Fee-Based Earnings Contribution reached 15%, the company aims to boost this to 25% by 2028. Notably, the Investment Portfolio Quality remained strong at 97% investment grade, with Alternative Investments generating a 7% annualized return despite falling short of the long-term target.
The company also highlighted operational efficiency improvements, with the Operating Expense Ratio dropping to 50 basis points from 60, meeting its target. Adjusted Net Earnings for Q4 were $123 million, up 19% year-over-year, driven by fee income growth and strategic initiatives. However, risks emerged, including potential declines in surrender fees and investment income volatility, which could impact future earnings. Additionally, the announced sale of F&G Life Re Limited to Ancient Financial Holdings LP may reduce AUM by $1.9 billion and lower annual adjusted net earnings by approximately $10 million per quarter before redeployment.
F&G’s financial resilience and strategic moves position it as a key player in the insurance sector. Investors should monitor its ability to sustain growth amid market uncertainties, particularly regarding surrender fees and investment performance. The company’s focus on operational efficiency and capital returns through dividends underscores its commitment to shareholder value.
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Originally published on The Motley Fool on 2/20/2026