Monitor execution on the fee-based earnings shift and alternative investment return normalization; the $100M buyback and AUM growth provide a floor, but continued ROE compression warrants caution. Watch for upcoming reinsurance sidecar contributions and owned distribution margin progression.
Price Chart
Executive Summary
F&G reported Q1 2026 adjusted net earnings of $110M ($0.82/share), up 21% YoY from $91M, driven by record AUM before reinsurance of $74.5B (+11% YoY) and strong gross sales of $3.2B. GAAP net earnings swung to a profit of $244M ($1.78/share) from a loss of $25M, supported by favorable mark-to-market. The company also authorized a $100M share repurchase program and completed the sale of its F&G Life Re entity, while alternative investment income remained below long-term targets.
Key Facts
- Q1 adjusted net earnings $110M, up 21% YoY from $91M
- Record AUM before reinsurance of $74.5B, +11% YoY
- Gross sales $3.2B, +10% YoY; net sales $2.2B in line with prior year
- Adjusted ROE ex AOCI declined to 8.4% from 9.7% YoY due to alternative investment headwinds
- Book value per share ex AOCI rose to $46.51 from $44.43 at Dec 2025
- Returned $67M to shareholders via dividends and $29M share repurchases (1.2M shares at avg $24.14)
- New $100M three-year share repurchase program authorized March 13, 2026
- Sold F&G Life Re Ltd, ceding $1.8B inforce block and adding Ancient Re as flow reinsurance partner
- Credit impairments remained low at 3 bps in Q1; 97% of fixed maturities investment grade
Financial Impact
Adjusted net earnings of $110M vs $91M prior year (+21%), GAAP net earnings swing from -$25M to +$244M
Risk Factors
- Alternative investment returns remaining below long-term expectations (12-14% target)
- Interest rate volatility impacting investment portfolio and liability matching
- Equity market downturn affecting indexed annuity product fees and hedging costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001934850-26-000053 |
| Document: fg1q2026financialsupplem.htm | 0001934850-26-000053 |
| Document: a1q26fgearningsrelease_f.htm | 0001934850-26-000053 |
| Document: fg-20260506.htm | 0001934850-26-000053 |
| Document: 0001934850-26-000053-index-headers.html | 0001934850-26-000053 |
| Document: 0001934850-26-000053-index.html | 0001934850-26-000053 |
| Document: 0001934850-26-000053.txt | 0001934850-26-000053 |
| 8-K Data (Synthetic) | 0001934850-26-000053 |
US Market Status
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