Revenue growth accelerated to 39% in Q1 2026 but slowed to 9% in Q2, while underwriting profitability swung dramatically from a combined ratio of 72.8% in Q1 to 106.6% in Q2, indicating significant earnings volatility.
F&G Annuities & Life, Inc. (FG) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Revenue | 5.5B | 5.73B | 5.42B | 4.27B | 2.24B | 3.38B | 1.43B | 1.81B | 711M | 1.98B | 1.06M |
| Revenue Growth % | 5.22% | 5.72% | 26.93% | 90.75% | -33.86% | 136.71% | -21.13% | 154.99% | -64.09% | - | - |
| Medical Costs & Claims | 2.9B | 3.96B | 3.79B | 3.55B | 1.13B | 1.93B | 0 | 1.15B | 0 | 0 | 0 |
| Medical Cost Ratio % | 52.65% | 69.15% | 69.93% | 83.19% | 50.29% | 57.08% | 0% | 63.32% | 0% | 0% | 0% |
| Gross Profit | 1.48B | 1.77B | 1.63B | 718M | 1.11B | 1.45B | 1.43B | 665M | 711M | 1.98B | 1.06M |
| Gross Margin % | 26.8% | 30.85% | 30.07% | 16.81% | 49.71% | 42.92% | 100% | 36.68% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 8.47% | 127.02% | -35.49% | -23.4% | 1.61% | 115.04% | -6.47% | -64.09% | - | - |
| Operating Expenses | 1.08B | 1.45B | 852M | 753M | 320M | -99M | 99M | 244M | 653M | 1.73B | 1.4M |
| OpEx / Revenue % | 19.71% | 25.21% | 15.72% | 17.63% | 14.29% | -2.92% | 6.92% | 13.46% | 91.84% | 87.27% | 131.59% |
| Depreciation & Amortization | 713M | 665M | 569M | 412M | 324M | 271M | 118M | 128M | 43M | 72M | 6K |
| Combined Ratio % | 72.37% | 94.36% | 85.65% | 100.82% | 64.58% | 54.15% | 6.92% | 76.78% | 91.84% | 87.27% | 131.59% |
| Operating Income | 390M | 323M | 778M | -35M | 793M | 1.55B | 1.33B | 421M | 58M | 252M | -336.27K |
| Operating Margin % | 7.09% | 5.64% | 14.35% | -0.82% | 35.42% | 45.85% | 93.08% | 23.22% | 8.16% | 12.73% | -31.59% |
| Operating Income Growth % | - | -58.48% | 2322.86% | -104.41% | -48.9% | 16.6% | 216.15% | 625.86% | -76.98% | 75040.67% | - |
| EBITDA | 2.08B | 988M | 1.35B | 377M | 1.12B | 1.82B | 1.45B | 549M | 101M | 324M | -330.27K |
| EBITDA Margin % | 37.72% | 17.24% | 24.85% | 8.83% | 49.89% | 53.86% | 101.33% | 30.28% | 14.21% | 16.36% | -31.03% |
| Interest Expense | 165M | 164M | 132M | 97M | 29M | 29M | 0 | 32M | 0 | 0 | 0 |
| Non-Operating Income | -123M | -164M | -132M | -97M | -29M | -29M | 1.33B | -32M | 0 | 0 | 0 |
| Pretax Income | 1.33B | 323M | 778M | -35M | 793M | 1.55B | -128M | 421M | 29M | 228M | -336.27K |
| Pretax Margin % | 24.09% | 5.64% | 14.35% | -0.82% | 35.42% | 45.85% | -8.95% | 23.22% | 4.08% | 11.52% | -31.59% |
| Income Tax | 281M | 52M | 136M | 23M | 158M | 320M | -89M | 60M | 16M | 1.32B | 0 |
| Effective Tax Rate % | 21.19% | 16.1% | 17.48% | -65.71% | 19.92% | 20.62% | 69.53% | 14.25% | 55.17% | 578.95% | 0% |
| Net Income | 1.04B | 265M | 639M | -58M | 635M | 1.24B | -178M | 412M | -16M | -1.12B | -336.27K |
| Net Margin % | 18.82% | 4.62% | 11.79% | -1.36% | 28.36% | 36.63% | -12.45% | 22.72% | -2.25% | -56.36% | -31.59% |
| Net Income Growth % | 123.28% | -58.53% | 1201.72% | -109.13% | -48.79% | 796.63% | -143.2% | 2675% | 98.57% | - | - |
| EPS (Diluted) | 7.67 | 1.88 | 4.88 | -0.47 | 5.52 | 8.24 | -0.31 | 1.93 | -0.07 | -5.21 | -0.02 |
| EPS Growth % | 120.82% | -61.48% | 1138.3% | -108.51% | -33.01% | 2758.06% | -116.06% | 2704.59% | 98.58% | -28684.53% | - |
| EPS (Basic) | - | 1.89 | 4.98 | -0.47 | 5.52 | 8.24 | -0.31 | 1.93 | -0.07 | -5.28 | -0.02 |
| Diluted Shares Outstanding | 135M | 132M | 131M | 124M | 115M | 105M | 150M | 213.36M | 216.02M | 214.37M | 18.56M |
Quick answers to the most common questions about buying FG stock.
For fiscal year 2025, F&G Annuities & Life, Inc. (FG) reported total revenue of $5.73B. This represents a 538309.2% increase compared to $1.1M in 2016.
F&G Annuities & Life, Inc. (FG) is profitable, generating $265.0M in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
F&G Annuities & Life, Inc. (FG) reported an operating income of $323.0M, resulting in an operating profit margin of 5.6%. This margin reflects the operational efficiency of the business before interest and taxes.
F&G Annuities & Life, Inc. (FG) generated $1.77B in gross profit for the year, representing a gross profit margin of 30.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Earnings volatility from hedging
Metrics are mathematically derived from official filings.
Premium Growth Accelerates Despite Volatility
Revenue growth accelerated to 39% in Q1 2026, though Q2 slowed to 9%, reflecting continued momentum in retail sales and PRT expansion, per F&G's reported figures.
The 39% year-over-year revenue surge in Q1 2026, followed by a 9% increase in Q2, suggests that the company's strategic push into Pension Risk Transfer and core retail annuities is driving top-line expansion. However, the deceleration in Q2 may indicate a normalization from a particularly strong prior-year quarter or a shift in product mix. Investors should monitor whether this growth trajectory can be sustained without compromising underwriting discipline.
Underwriting Profitability Remains Elusive
Combined ratio swung from 72.8% in Q1 2026 to 106.6% in Q2, indicating significant underwriting strain, as reported in F&G's quarterly financials.
The combined ratio's deterioration to 106.6% in Q2 2026, after a strong 72.8% in the prior quarter, highlights the inherent volatility in F&G's underwriting results. This swing likely reflects hedging costs and reserve adjustments, which can obscure the underlying profitability of the spread-based model. The average combined ratio over the last four quarters stands at approximately 91.5%, suggesting that while underwriting is generally profitable, it is susceptible to sharp quarterly fluctuations.
Reserve Releases Mask Underlying Trends
Prior-year reserve releases appear to have boosted earnings in Q1 2026, as evidenced by a combined ratio of 72.8%, but Q2's 106.6% suggests potential adverse development, per SEC filings.
The dramatic improvement in the combined ratio in Q1 2026, followed by a reversal in Q2, may indicate that favorable reserve development is not consistent. The loss ratio of 40.8% in Q1 versus 80.9% in Q2 suggests that reserve releases or changes in actuarial assumptions are causing significant earnings volatility. Analysts should scrutinize the composition of reserve changes to determine if they are masking underlying deterioration in the retail annuity block.
Investment Income Supports Spread Income
Investment income data is unavailable, but the Blackstone partnership likely provides yield advantages, as F&G's net investment spread remains a key earnings driver, based on company disclosures.
While specific investment income figures are not provided, the strategic alliance with Blackstone is central to F&G's ability to generate competitive crediting rates while maintaining spreads. The absence of reported investment yield in the data limits direct analysis, but the company's reliance on alternative assets suggests that investment performance is critical to offsetting underwriting volatility. Investors should monitor the sustainability of these yields in a changing rate environment.
Expense Ratio Reflects Scale Benefits
Expense ratio, derived from combined and loss ratios, averaged 19.4% over the last four quarters, indicating moderate operating leverage, as per F&G's reported financials.
The expense ratio, calculated as the difference between combined and loss ratios, has ranged from 15.2% to 32.0% over the past year, with an average of 19.4%. This suggests that F&G is achieving some scale efficiencies, but the volatility in the expense ratio may be tied to variable acquisition costs and hedging expenses. The company's ability to control these costs while growing AUM will be crucial for improving operating margins.
Earnings Quality Questioned by EPS Miss
Q2 2026 EPS of $0.65 missed consensus by $0.30, raising concerns about earnings quality, as reported in F&G's latest earnings release.
The significant EPS miss in Q2 2026, despite record AUM, suggests that reported earnings may be subject to non-operating items or that the underlying profitability is weaker than top-line growth implies. The lack of updated guidance from management further compounds uncertainty, potentially indicating that the company itself is reassessing its near-term outlook. This warrants a cautious stance on the sustainability of F&G's earnings power until clarity emerges.