F&G Annuities & Life’s first quarter was marked by significant challenges as management pointed to market volatility and a deliberate pullback in multi-year guaranteed annuity (MYGA) sales as major contributors to underperformance. CEO Chris Blunt explained that MYGA sales were reduced to optimize returns amid rate uncertainty, while fixed indexed annuity and pension risk transfer sales remained steady. The company also faced short-term margin compression, with Blunt noting, “We believe much of that was short term in nature and not indicative of any longer-term challenge to our business model.” Management acknowledged that lower surrender activity and a softer quarter for its owned distribution business further pressured results, citing these as temporary factors.

Is now the time to buy FG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions F&G Annuities & Life’s Q1 Earnings Call

• John Barnidge (Piper Sandler): Asked about growth prospects for the RILA product and distribution strategy. CEO Chris Blunt described ongoing platform expansion and broker-dealer adoption, saying RILA sales could reach the billions medium-term.
• John Barnidge (Piper Sandler): Queried the impact of lower industry volume versus platform investment on owned distribution. Blunt estimated both factors contributed equally and noted positive trends in recent months.
• Wesley Carmichael (Autonomous Research): Questioned the rationale behind the recent equity raise and whether capital would be held back amid volatility. Blunt and CFO Conor Murphy clarified that proceeds support new business, with limited deployment possible until the second quarter.
• Wesley Carmichael (Autonomous Research): Asked about the sequential rise in cost of funds and the role of market competition. Management attributed the increase mainly to lower surrender income and timing of in-force pricing changes, expecting improvement ahead.
• Mark Hughes (Truist Securities): Probed the nature of the distribution partner investment and its recurring impact. Blunt called it a one-off opportunity with rapid payback, not expected to repeat in future quarters.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the rebound and sustainability of MYGA and RILA sales volumes as market conditions evolve, (2) the pace of recovery in owned distribution margins and volume, and (3) stabilization and improvement in alternative investment returns. Effective deployment of new capital and execution on cost discipline will also be key markers for the company’s progress toward its long-term targets.

F&G Annuities & Life currently trades at $32.55, down from $35.89 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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