F&G Annuities Q2 adjusted EPS falls

Adjusted net earnings were reduced by investment income from alternative investments falling below management's long-term expected return. Lower total product margin after the F&G Life Re (Bermuda) sale, reduced surrender charge fee income, and higher liability costs also weighed on results. Gross and net sales declined, with opportunistic sales dropping as the company prioritized pricing discipline and capital allocation.

The company expects to grow assets under management and expand returns, citing favorable demographic trends. F&G said it sees opportunities to scale fee-based, higher margin and less capital intensive earnings streams, while remaining focused on disciplined capital allocation and navigating a dynamic market environment.

The current average analyst rating on the shares is hold. Wall Street's median 12-month price target for F&G Annuities & Life Inc is $27.00, about 9% below its August 4 closing price of $29.67.

F&G Annuities & Life Inc reported second-quarter adjusted earnings per share of $0.65, down from a year earlier. Assets under management before reinsurance rose 8% year over year to $74.7 billion. The company said it returned $128 million to shareholders through dividends and share buybacks in the quarter.