DES MOINES, Iowa - F&G Annuities & Life, Inc. (NYSE: FG), a prominent provider of annuity and life insurance solutions, announced its financial results for the first quarter ended March 31, 2024.
The company reported a significant increase in revenue, reaching $3.3 billion, surpassing analyst expectations which did not provide a comparative figure. However, the company fell short on earnings per share (EPS), posting $0.76 against an analyst estimate of $1.08.
The first quarter showed a marked improvement from the previous year, with net earnings for common shareholders at $111 million, or $0.88 per diluted share, a substantial recovery from a net loss of $195 million, or -$1.56 per share, in the first quarter of 2023.
Adjusted net earnings also saw an increase, reaching $108 million, or $0.86 per share, compared to $61 million, or $0.49 per share in the same quarter last year. This improvement is attributed to a combination of factors, including a 6% increase in gross sales to $3.5 billion, a 10% rise in assets under management (AUM) to $49.8 billion, and a robust investment portfolio performance with minimal credit-related impairments.
Chris Blunt, President and Chief Executive Officer, commented on the company's performance, "We achieved record assets under management before flow reinsurance in the first quarter of $58.0 billion, an increase of 18% compared to the year-ago first quarter."
"Growth was driven by $3.5 billion of gross sales, an increase of 6% over the first quarter of 2023, powered by our retail and institutional market sales."
Despite the mixed financial results, the company's stock saw a marginal increase of 0.1% following the earnings release, indicating a relatively neutral market response. This subtle movement reflects the revenue beat as the primary driver, overshadowing the EPS miss.
The company's forward guidance was not provided in the press release, making it challenging to compare with analyst consensus for future periods.
However, with the company's confidence in their outlook for double-digit gross sales growth in 2024 and the launch of their RILA product, F&G Annuities & Life remains optimistic about its growth trajectory and its ability to continue delivering strong returns.
Investors and analysts will continue to monitor F&G's performance closely, particularly how the company capitalizes on its robust sales channels and manages investment margins and operating expenses to drive further growth and profitability.
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