Revenue growth remains highly volatile, swinging from a 42.1% contraction in 2025Q1 to a 30.7% expansion by 2026Q1, while underwriting profitability fluctuates significantly with combined ratios ranging from 22.6% to 90.9%.
| Revenue | 6.01B | 5.73B | 5.74B | 4.54B | 2.38B | 3.97B |
| Revenue Growth % | 17.98% | -0.23% | 26.6% | 90.39% | -39.97% | - |
| Medical Costs & Claims | 1.26B | 3.96B | 0 | 0 | 0 | 0 |
| Medical Cost Ratio % | 21.05% | 69.15% | 0% | 0% | 0% | 0% |
| Gross Profit | 3.56B | 1.77B | 5.74B | 4.54B | 2.38B | 3.97B |
| Gross Margin % | 59.2% | 30.85% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -69.22% | 26.6% | 90.39% | -39.97% | - |
| Operating Expenses | 495M | 1.45B | 4.8B | 232M | 157M | 129M |
| OpEx / Revenue % | 8.24% | 25.21% | 83.57% | 5.11% | 6.59% | 3.25% |
| Depreciation & Amortization | 347M | 665M | 569M | 0 | 0 | 0 |
| Combined Ratio % | 29.28% | 94.36% | 83.57% | 5.11% | 6.59% | 3.25% |
| Operating Income | 3.06B | 323M | 944M | 4.3B | 2.23B | 3.84B |
| Operating Margin % | 50.97% | 5.64% | 16.43% | 94.89% | 93.41% | 96.75% |
| Operating Income Growth % | - | -65.78% | -78.07% | 93.4% | -42.05% | - |
| EBITDA | 3.77B | 988M | 1.51B | 4.3B | 2.23B | 3.84B |
| EBITDA Margin % | 62.71% | 17.24% | 26.34% | 94.89% | 93.41% | 96.75% |
| Interest Expense | 165M | 164M | 132M | 97M | 29M | 29M |
| Non-Operating Income | 2.86B | -164M | 34M | 4.3B | 2.23B | 3.84B |
| Pretax Income | 672M | 323M | 778M | -35M | 793M | 1.55B |
| Pretax Margin % | 11.18% | 5.64% | 13.54% | -0.77% | 33.28% | 39.09% |
| Income Tax | 131M | 52M | 136M | 23M | 158M | 320M |
| Effective Tax Rate % | 19.49% | 16.1% | 17.48% | -65.71% | 19.92% | 20.62% |
| Net Income | 530M | 265M | 622M | -58M | 635M | 1.24B |
| Net Margin % | 8.82% | 4.62% | 10.83% | -1.28% | 26.65% | 31.23% |
| Net Income Growth % | -25.56% | -57.4% | 1172.41% | -109.13% | -48.79% | - |
| EPS (Diluted) | 3.81 | 1.88 | 4.75 | -0.47 | 5.52 | 8.24 |
| EPS Growth % | 81.41% | -60.42% | 1110.64% | -108.51% | -33.01% | - |
| EPS (Basic) | - | 1.89 | 4.98 | -0.47 | 5.52 | 8.24 |
| Diluted Shares Outstanding | 139M | 132M | 131M | 124M | 115M | 105M |
Alternative asset credit exposure
As reported in recent financial filings, F&G's revenue growth has exhibited significant quarterly variance, ranging from a 42.1% contraction in 2025Q1 to a 30.7% expansion by 2026Q1, suggesting that the company's reliance on lumpy institutional PRT transactions creates substantial top-line instability for investors to monitor.
The erratic revenue trajectory appears to be a direct consequence of the company's strategic pivot toward large-scale institutional funding agreements and pension risk transfers. While this shift provides necessary scale, it introduces a level of quarterly lumpiness that complicates the assessment of underlying retail annuity demand.
Based on the provided income statement data, the combined ratio fluctuated from 22.6% in 2024Q3 to 90.9% in 2025Q4, indicating that underwriting profitability is subject to significant period-over-period swings that may not reflect the long-term economic stability of the core annuity spread business.
The wide variance in the combined ratio suggests that F&G's operational efficiency is heavily influenced by the timing of policy acquisitions and the accounting treatment of derivative hedges. Investors should be cautious in extrapolating these ratios, as they likely mask the underlying stability of the net investment spread.
According to company disclosures, the reliance on Blackstone for asset management is a central pillar of the firm's profitability, as the company seeks to capture a yield advantage through private credit originations that traditional life insurers may struggle to replicate within their own internal investment portfolios.
The investment strategy appears to prioritize high-yield structured credit to support the interest crediting rates promised to annuity holders. This approach warrants further investigation into the potential for credit spread widening to impact the net interest margin, particularly if the underlying asset quality faces a cyclical downturn.
As indicated by the divergence between GAAP net income and operating income, the company's earnings are heavily impacted by mark-to-market accounting for embedded derivatives, which may lead to a distorted view of the firm's actual cash-generating capacity during periods of high financial market volatility.
The frequent swings between net losses and significant profits suggest that headline earnings are not a reliable proxy for the company's fundamental performance. Analysts should focus on adjusted operating metrics to strip out the noise created by derivative accounting and the periodic unlocking of deferred acquisition costs.
Quick answers to the most common questions about buying FGN stock.
For fiscal year 2025, F&G Annuities & Life, Inc. (FGN) reported total revenue of $5.73B. This represents a 44.4% increase compared to $3.97B in 2021.
F&G Annuities & Life, Inc. (FGN) 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. (FGN) 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. (FGN) 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.