8-K
F&G Annuities & Life, Inc. (FG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 22, 2023
F&G Annuities & Life, Inc.
(Exact Name of Registrant as Specified in its Charter)
001-41490
(Commission File Number)
| Delaware | 85-2487422 |
|---|---|
| (State or Other Jurisdiction of <br>Incorporation) | (IRS Employer Identification Number) |
| 801 Grand Avenue, Suite 2600<br><br>Des Moines, Iowa 50309<br><br>(Addresses of Principal Executive Offices)<br><br>(515) 330-3340<br><br>(Registrant’s Telephone Number, Including Area Code) | |
| (Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Securities registered pursuant to Section 12(b) of the Act: | ||
|---|---|---|
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
| F&G Common Stock, $0.001 par value | FG | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On February 22, 2023, F&G Annuities & Life, Inc. (the "Company", “F&G”) issued an earnings release announcing its financial results for the fourth quarter and full year ended December 31, 2022. A copy of the F&G earnings release is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, the Company is furnishing the quarterly financial supplement as Exhibit 99.2 to this Current Report on Form 8-K.
The following information, including the Exhibits referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure |
|---|
On February 22, 2023, the Company made available to investors a supplemental presentation for the fourth quarter and full year ended December 31, 2022. A copy of the F&G investor presentation is attached as Exhibit 99.3 to this Current Report on Form 8-K.
The following information, including the Exhibit referenced in this Item 7.01, is being furnished pursuant to this Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| F&G Annuities & Life, Inc. | ||
|---|---|---|
| Date: February 22, 2023 | By: | /s/ Jodi Ahlman |
| Name: Jodi Ahlman | ||
| Title: General Counsel & Secretary |
a4q22fgearningsrelease_f
F&G Annuities & Life Reports Fourth Quarter and Full Year 2022 Results Des Moines, Iowa – (February 22, 2023) – F&G Annuities & Life, Inc. (NYSE: FG) (“F&G” or the “Company”) a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, today reported financial results for the fourth quarter and twelve months (full year) ended December 31, 2022. Net loss for the fourth quarter of $100 million, or $0.80 per diluted share (per share) primarily due to unfavorable mark-to-market and related economic assumption review updates, compared to net earnings of $121 million, or $1.15 per share, for the fourth quarter of 2021. Full year net earnings of $481 million, or $4.18 per share, compared to $865 million, or $8.24 per share, for the year ended December 31, 2021. Net earnings include mark-to-market and other items which are not included in adjusted net earnings. Adjusted net earnings for the fourth quarter of $138 million, or $1.10 per share, compared to adjusted net earnings for the fourth quarter of 2021 of $142 million, or $1.35 per share. Full year adjusted net earnings of $345 million, or $3.00 per share, compared to $551 million, or $5.25 per share, for the year ended December 31, 2021. Adjusted net earnings include significant income and expense items, including alternative investment portfolio returns from short- term mark-to-market movement that differ from long-term return expectations. Company Highlights • F&G partial spinoff completed: F&G began trading on the New York Stock Exchange under the ticker symbol ‘FG’ on December 1, 2022, upon completion of the distribution of approximately 15% of its common stock to Fidelity National Financial, Inc.’s (FNF) shareholders. Our parent, FNF, retains control of F&G through an approximate 85% equity ownership stake • Record profitable gross sales for F&G continues: Total gross sales of $2.7 billion for the fourth quarter, an increase of 23% over the fourth quarter 2021, driven by record Retail sales. For the full year 2022, record total gross sales of $11.3 billion, an increase of nearly 18% over the full year 2021 • Net sales reflect third party flow reinsurance: Net sales retained of $1.9 billion for the fourth quarter, a decrease of 7% from the fourth quarter 2021, reflecting the increase from 50% to 75% of multiyear guaranteed annuity sales to Aspida Re effective September 1, 2022. For the full year 2022, net retained sales of $9.0 billion, an increase of 3% over the full year 2021 • Robust asset growth: Ending assets under management (AUM) were $43.6 billion as of December 31, 2022, an increase of 19% from $36.5 billion in the prior year, primarily driven by net new business flows • Inaugural quarterly cash common dividend: Paid first quarterly dividend in the amount of $25 million, or $0.20 per share of common stock on January 31, 2023 • Strong solvency: Estimated risk-based capital (RBC) ratio for our primary operating subsidiary of approximately 440% as of December 31, 2022, well above our 400% target • Ratings momentum, as A.M. Best has revised the ratings outlook to ‘positive’ from ‘stable’ in December 2022, and we continue on ‘positive’ outlook with Moody’s Chris Blunt, President and Chief Executive Officer of F&G, commented, “Following F&G’s successful public listing on the New York Stock Exchange in December, I would like to extend my appreciation for the support that we received from our majority owner, FNF, our employees and all of our partners who together made our return to the public markets possible. I am also very proud of our financial performance during the fourth quarter as we delivered record gross sales of $2.7 billion led by record Retail sales of $2.5 billion. We ended the year with $43.6 billion of assets under Exhibit 99.1
management which puts us on track to achieve our goal of doubling AUM to $50 billion in 2023, approximately two years ahead of our original guidance. The key to our success has been the transformation of F&G over the last three years as we have expanded into new products and distribution channels which firmly positions the Company for continued growth and profitability. Our strong financial results for 2022 also demonstrate the underlying earnings power of the F&G business model where asset growth drives earnings and we benefit from a rising rate environment. Our high-quality investment portfolio continues to perform well, and our strategic investment management partnership with Blackstone remains a competitive advantage.” Mr. Blunt concluded, “Looking to the year ahead, we have reached an inflection point in our business where our scale and strong capitalization now supports both organic growth and the distribution of a portion of our adjusted net earnings to our shareholders where we have committed to paying $100 million in dividends this year. We also have the financial flexibility as a stand-alone public company to make accretive acquisitions and investments to further expand our business and capabilities. Our recently announced equity investment in SYNCIS, a leading independent agent distribution partner, is an example of our approach to growth as we continue to build a strong footprint of owned distribution.” Summary Financial Results (In millions, except per share data) Three Months Ended Full Year December 31, 2022 December 31, 2021 2022 2021 Total gross sales1 $ 2,719 $ 2,195 $ 11,254 $ 9,592 Net retained sales $ 1,911 $ 2,044 $ 9,006 $ 8,723 Assets under management (AUM) $ 43,568 $ 36,494 $ 43,568 $ 36,494 Average assets under management (AAUM) $ 42,605 $ 35,699 $ 40,069 $ 31,938 Adjusted return on assets 0.86 % 1.73 % 0.86 % 1.73 % Net earnings (loss) $ (100) $ 121 $ 481 $ 865 Net earnings (loss) per diluted share $ (0.80) $ 1.15 $ 4.18 $ 8.24 Adjusted net earnings $ 138 $ 142 $ 345 $ 551 Adjusted net earnings per diluted share $ 1.10 $ 1.35 $ 3.00 $ 5.25 Weighted average diluted shares (in millions) 125 105 115 105 Common shares outstanding (in millions) 126 105 126 105 Book value per share $ 14.41 $ 42.71 $ 14.41 $ 42.71 Book value excluding AOCI per share $ 36.66 $ 35.72 $ 36.66 $ 35.72 1 See definition of non-GAAP measures below
Fourth Quarter 2022 Results • Total gross sales of $2.7 billion for the fourth quarter, an increase of 23% over the fourth quarter 2021; reflects record retail sales, partially offset by lower institutional sales which we expect to be lumpier and more opportunistic than in our retail channels • Record Retail sales of $2.5 billion for the fourth quarter, a 79% increase over fourth quarter of 2021; reflects increased demand for our products in the rising rate environment and expanding relationships with new and existing distribution partners • Institutional sales of $0.2 billion of pension risk transfer transactions, compared to $0.8 billion of pension risk transfer transactions in the fourth quarter 2021. There were no funding agreement issuances in the current quarter due to credit and equity market volatility • Net sales retained of $1.9 billion for the fourth quarter, a decrease of 7% from the fourth quarter 2021, reflecting the increase in flow reinsurance from 50% to 75% of multiyear guaranteed annuity sales to Aspida Re effective September 1, 2022 • Average assets under management (AAUM) of $42.6 billion for the fourth quarter, an increase of 19% from $35.7 billion in the fourth quarter 2021, driven by net new business flows and net debt proceeds from the revolving credit facility draw. Ending assets under management were $43.6 billion as of December 31, 2022 • Fixed income and other portfolio earned yield, excluding alternative investment volatility and variable investment income, has expanded to 4.27% for the fourth quarter, as compared to 3.75% in the fourth quarter 2021; primarily reflects upside from our floating rate assets and higher yield on new investments • Owned distribution acquisition of 49% equity investment in SYNCIS, a leading independent agent distribution partner, announced in January 2023 which aligns to our strategy to expand owned distribution while boosting our presence in underserved multi-cultural and middle-market segments • Adjusted net earnings for the fourth quarter of $138 million, or $1.10 per share. This included a $34 million recognized gain from alternative investments, a $58 million one-time tax benefit from carryback of capital losses, $12 million from actuarial assumption updates and other income items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $91 million. Please see “Non-GAAP Measures and Other Information” for further explanation. Full Year 2022 Results • Record Total gross sales of $11.3 billion for the full year, an increase of nearly 18% over the full year 2021, reflecting execution of the Company’s diversified growth strategy with a disciplined approach to pricing • Record Retail sales of $8.5 billion for the full year, an increase of 37% over the full year 2021, driven by ongoing growth in independent agent distribution and continued expansion in bank and broker dealer channels • Institutional sales of $2.8 billion for the full year, including funding agreement issuances of $1.4 billion and pension risk transfer transactions of $1.4 billion, compared to funding agreement issuances of $2.3 billion and pension risk transfer transactions of $1.2 billion in full year 2021 • Net sales retained of $9.0 billion for the full year, an increase of 3% over the full year 2021, reflecting third party flow reinsurance • Average assets under management (AAUM) of $40.1 billion for the full year, an increase of 26% over $31.9 billion in the prior year. Ending assets under management (AUM) of $43.6 billion at December 31, 2022 • Full year adjusted net earnings of $345 million, or $3.00 per share. This included a $100 million recognized gain from alternative investments, $49 million income from actuarial assumption and reserve updates, $21 million of CLO redemption gains and other income, $20 million of net income tax benefits, and $5 million of other expense. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $265 million. Please see “Non-GAAP Measures and Other Information” for further explanation
Capital and Liquidity Highlights • GAAP book value excluding AOCI of $4.6 billion or $36.66 per share, with 126 million common shares outstanding as of December 31, 2022, an increase of $0.94 or 3% year over year, including ($2.98) net decrease for capital actions, including conversion of FNF intercompany loan to equity prior to F&G’s partial spinoff and F&G’s initial common dividend, and $1.46 per share net increase for mark to market movements during the year. Underlying business fundamentals delivered solid growth in GAAP book value excluding AOCI of 7% year over year before capital actions and mark-to-market movement. Book value per share excluding AOCI as of December 31, 2021 $ 35.72 Adjusted net earnings 2.74 All other (0.28) Book value per share excluding AOCI, before capital actions & mark-to-market $ 38.18 Net debt conversion (2.78) Common dividend declared (0.20) Book value per share excluding AOCI, before mark-to-market $ 35.20 Liability-related mark-to-market movement $ 2.23 Investment-related mark-to-market movement $ (0.77) Book value per share excluding AOCI as of December 31, 2022 $ 36.66 • Dividend program initiation: F&G’s Board of Directors has approved the initiation of a dividend program at an initial aggregate amount of approximately $100 million per year; the initial quarterly dividend was paid on January 31, 2023 in the amount of $25 million, or $0.20 per share of common stock • Debt to capitalization ratio, excluding AOCI, was 19% as of December 31, 2022, including $550 million proceeds from a new three-year senior unsecured third party revolving credit facility that closed in the fourth quarter o On January 13, 2023, F&G successfully completed its first debt issuance as a public company issuing $500 million of 7.40% senior unsecured notes due in 2028. This senior note issuance, as well as a $35 million partial paydown on the revolving credit facility, is not reflected in the capital position as of December 31, 2022; on a pro forma basis, F&G’s debt to capitalization ratio, excluding AOCI, is approximately 25% and in line with its long-term target o On February 21, 2023, F&G entered into an amendment with the lenders to increase the aggregate principal amount of its revolving credit facility by $115 million to $665 million; the incremental capacity is undrawn • The Company continues to have a strong and stable capital position, with an estimated statutory company action level risk-based capital (RBC) ratio for our primary operating subsidiary of approximately 440% as of December 31, 2022, well above our 400% target • Ratings momentum has been positive. A.M. Best has revised our outlook to ‘positive’ from ‘stable’ in December 2022, and we continue on ‘positive’ outlook with Moody’s Conference Call We will host a call with investors and analysts to discuss F&G’s fourth quarter and full year 2022 results on Thursday, February 23, 2023, beginning at 9:00 a.m. Eastern Time. A live webcast of the conference call will be available on the F&G Investor Relations website at fglife.com. The conference call replay will be available via webcast through the F&G Investor Relations website at fglife.com. The telephone replay will be available from 1:00 p.m. Eastern Time on February 23, 2023, through March 9, 2023, by dialing 1-844-512-2921 (USA) or 1-412-317- 6671 (International). The access code will be 13735021.
About F&G F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com. Use of Non-GAAP Financial Information Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within. Forward-Looking Statements and Risk Factors This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as “believes”, “expects”, “may”, “will”, “could”, “seeks”, “intends”, “plans”, “estimates”, “anticipates” or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in “Risk Factors” and other sections of our information statement filed with the Securities and Exchange Commission (SEC). SOURCE: F&G Annuities & Life, Inc CONTACT: Lisa Foxworthy-Parker SVP of Investor & External Relations Investors@fnf.com 515.330.3307
F&G ANNUITIES & LIFE, INC. CONSOLIDATED BALANCE SHEETS (In millions) December 31, 2022 December 31, 2021 Assets: Investments: Fixed maturity securities available for sale, at fair value, at December 31, 2022 and December 31, 2021, at an amortized cost of $35,723 and $28,724, respectively, net of allowance for credit losses of $31 and $8, respectively $ 31,218 $ 29,962 Preferred securities, at fair value 722 1,028 Equity securities, at fair value 101 143 Derivative investments 244 816 Mortgage loans, net of allowance for credit losses of $42 and $31 at December 31, 2022 and December 31, 2021, respectively 4,554 3,749 Investments in unconsolidated affiliates 2,427 2,350 Other long-term investments 565 489 Short-term investments 1,556 373 Total investments $ 41,387 $ 38,910 Cash and cash equivalents 960 1,533 Trade and notes receivables 3 3 Reinsurance recoverable, net of allowance for credit losses of $10 and $20 at December 31, 2022 and December 31, 2021, respectively 5,587 3,610 Goodwill 1,756 1,756 Prepaid expenses and other assets 917 613 Lease assets 8 8 Other intangible assets, net 3,652 2,234 Property and equipment, net 13 13 Income taxes receivable 28 50 Deferred tax asset, net 764 — Total assets $ 55,075 $ 48,730 Liabilities and Equity: Contractholder funds $ 41,233 $ 35,525 Future policy benefits 5,923 4,732 Accounts payable and accrued liabilities 1,273 1,297 Income taxes payable — — Deferred tax liability, net — 24 Notes payable 1,114 977 Funds withheld for reinsurance liabilities 3,703 1,676 Lease liabilities 13 14 Total liabilities $ 53,259 $ 44,245 Equity: F&G common stock, $0.001 par value; authorized 500,000,000 shares as of December 31, 2022 and December 31, 2021; outstanding of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively, and issued of 126,409,904 and 105,000,000 as of December 31, 2022 and December 31, 2021, respectively — — Additional paid-in-capital 3,162 2,750 Retained earnings 1,457 1,001 Accumulated other comprehensive (loss) income ("AOCI") (2,803) 734 Total equity $ 1,816 $ 4,485 Total liabilities and equity $ 55,075 $ 48,730
F&G ANNUITIES & LIFE, INC. CONSOLIDATED STATEMENTS OF EARNINGS FOURTH QUARTER INFORMATION (In millions) Three months ended December 31, 2022 December 31, 2021 Revenues: Life insurance premiums and other fees $ 331 $ 838 Interest and investment income 439 511 Recognized gains and losses, net (147) 345 Total revenues 623 1,694 Benefits and expenses: Benefits and other changes in policy reserves 743 1,404 Personnel costs 47 36 Other operating expenses 25 29 Depreciation and amortization (22) 65 Interest expense 6 8 Total benefits and expenses 799 1,542 Pre-tax earnings (176) 152 Income tax expense (benefit) (76) 31 Net earnings (loss) from continuing operations (100) 121 Earnings from discontinued operations, net of tax — — Net earnings (loss) $ (100) $ 121 Net earnings (loss) per share, basic Basic $ (0.80) $ 1.15 Diluted $ (0.80) $ 1.15 Weighted average common shares used in computing net earnings (loss) per common share: Basic (millions) 125 105 Diluted (millions) 125 105
F&G ANNUITIES & LIFE, INC. RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS FOURTH QUARTER INFORMATION (In millions) Three months ended December 31, 2022 December 31, 2021 Net earnings (loss) from continuing operations $ (100) $ 121 Non-GAAP adjustments (1): Recognized (gains) and losses, net Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets 110 2 Change in allowance for expected credit losses 11 — Change in fair value of reinsurance related embedded derivatives 5 (11) Change in fair value of other derivatives and embedded derivatives 10 (5) Recognized (gains) losses, net 136 (14) Indexed product related derivatives 212 21 Purchase price amortization 5 6 Transaction costs and other non-recurring items (c) 2 — Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments (81) 13 Income taxes on non-GAAP adjustments (36) (5) Adjusted net earnings (1) $ 138 — $ 142 1 See definition of non-GAAP measures below
F&G ANNUITIES & LIFE, INC. CONSOLIDATED STATEMENTS OF EARNINGS YTD INFORMATION (In millions) (Unaudited) Year ended December 31, 2022 December 31, 2021 Revenues: Life insurance premiums and other fees $ 1,695 $ 1,395 Interest and investment income 1,655 1,852 Recognized gains and losses, net (1,010) 715 Total revenues 2,340 3,962 Benefits and expenses: Benefits and other changes in policy reserves 1,125 2,138 Personnel costs 157 129 Other operating expenses 102 105 Depreciation and amortization 329 484 Interest expense 29 29 Total benefits and expenses 1,742 2,885 Pre-tax earnings 598 1,077 Income tax expense (benefit) 117 220 Net earnings (loss) from continuing operations 481 857 Earnings from discontinued operations, net of tax — 8 Net earnings (loss) $ 481 $ 865 Net earnings (loss) per share, basic Basic $ 4.18 $ 8.24 Diluted $ 4.18 $ 8.24 Weighted average common shares used in computing net earnings (loss) per common share: Basic (millions) 115 105 Diluted (millions) 115 105
F&G ANNUITIES & LIFE, INC. RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED NET EARNINGS YTD INFORMATION (In millions) (Unaudited) Year ended December 31, 2022 December 31, 2021 Net earnings (loss) from continuing operations $ 481 $ 857 Non-GAAP adjustments (1): Recognized (gains) and losses, net Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets 446 (56) Change in allowance for expected credit losses 24 (5) Change in fair value of reinsurance related embedded derivatives (352) (34) Change in fair value of other derivatives and embedded derivatives (1) (14) Recognized (gains) losses, net 117 (109) Indexed product related derivatives (354) (146) Purchase price amortization 21 26 Transaction costs and other non-recurring items (c) 10 (279) Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments 6 123 Income taxes on non-GAAP adjustments 64 79 Adjusted net earnings (1) $ 345 $ 551 1 See definition of non-GAAP measures below
Non-GAAP Measures and Other Information RECONCILIATION OF NET EARNINGS AND ADJUSTED NET EARNINGS The table below reconciles net earnings to adjusted net earnings. Three Months Ended Full Year (Dollars in millions) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net earnings (loss) $ (100) $ 121 $ 481 $ 865 Less: Earnings (loss) from discontinued operations, net of tax — — — 8 Net earnings (loss) from continuing operations $ (100) $ 121 $ 481 $ 857 Non-GAAP adjustments(1): Recognized (gains) and losses, net 136 (14) 117 (109) Indexed product related derivatives 212 21 (354) (146) Purchase price amortization 5 6 21 26 Transaction costs 2 — 10 5 Amortization of actuarial intangibles (81) 13 6 123 Other non-recurring items — — — (284) Income taxes on non-GAAP adjustments (36) (5) 64 79 Adjusted net earnings(1) $ 138 $ 142 $ 345 $ 551 1 See definition of non-GAAP measures below • Adjusted net earnings of $138 million for the fourth quarter of 2022 included a $34 million recognized gain from alternative investments, a $58 million one-time tax benefit from carryback of capital losses and $12 million from actuarial assumption updates and other items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $91 million. • Adjusted net earnings of $142 million for the fourth quarter of 2021 included a $118 million recognized gain from alternative investments and $3 million income of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $66 million. • Adjusted net earnings of $345 million for the twelve months ended December 31, 2022 included a $100 million recognized gain from alternative investments, $49 million income from actuarial assumption and reserves updates, $21 million of CLO redemption gains and other income, $20 million of net income tax benefits and $5 million of other net expense items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $265 million. • Adjusted net earnings of $551 million for the twelve months ended December 31, 2021 included a $359 million recognized gain from alternative investments, $46 million of CLO redemption gains and other income, $10 million income from net favorable mortality experience and other reserve changes, and $8 million income from actuarial intangibles unlocking. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $169 million.
The tables below provide a comparison of adjusted net earnings by quarter per the new definition, which no longer includes the alternative investment yield adjustment to normalize alternative investment portfolio returns, versus results previously reported for the F&G segment in the 9 quarters subsequent to the acquisition by FNF on June 1, 2020 through the third quarter of 2022: Three Months Ended (Dollars in millions) September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Net earnings (loss) $ 115 $ 230 $ 236 $ 121 Less: Earnings (loss) from discontinued operations, net of tax — — — — Net earnings (loss) from continuing operations $ 115 $ 230 $ 236 $ 121 Non-GAAP adjustments(1): Recognized (gains) and losses, net (25) 23 (17) (14) Indexed product related derivatives (148) (198) (220) 21 Purchase price amortization 5 5 6 6 Transaction costs 4 4 — — Amortization of actuarial intangibles 33 17 37 13 Other non-recurring items — — — — Income taxes on non-GAAP adjustments 28 31 41 (5) Adjusted net earnings (1) $ 12 $ 112 $ 83 $ 142 Adjusted net earnings under previous definition(2) $ 105 $ 128 $ 82 $ 90 Difference in adjusted net earnings to amounts previously reported under old definition $ (93) $ (16) $ 1 $ 52 Three Months Ended (Dollars in millions) September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 Net earnings (loss) $ 373 $ 82 $ 289 $ 137 $ 38 Less: Earnings (loss) from discontinued operations, net of tax (3) 6 5 (2) (28) Net earnings (loss) from continuing operations $ 376 $ 76 $ 284 $ 139 $ 66 Non-GAAP adjustments(1): Recognized (gains) and losses, net (23) 9 (81) (99) (28) Indexed product related derivatives 14 67 (248) 46 19 Purchase price amortization 7 6 7 7 7 Transaction costs 1 2 2 4 10 Amortization of actuarial intangibles 12 12 86 38 6 Other non-recurring items (284) — — — — Income taxes on non-GAAP adjustments 57 (20) 47 (2) (8) Adjusted net earnings (1) $ 160 $ 152 $ 97 $ 133 $ 72 Adjusted net earnings under previous definition(2) $ 101 $ 92 $ 78 $ 128 $ 74 Difference in adjusted net earnings to amounts previously reported under old definition $ 59 $ 60 $ 19 $ 5 $ (2) 1 See definition of non-GAAP measures below 2 Reflects the former definition of adjusted net earnings, as previously reported for the F&G segment in periods prior to third quarter of 2022
RECONCILIATION OF TOTAL EQUITY, TOTAL EQUITY EXCLUDING ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI), BOOK VALUE PER SHARE AND BOOK VALUE PER SHARE EXCLUDING AOCI As of December 31, 2022 December 31, 2021 Reconciliation of Total Equity to Total Equity excluding AOCI: Total Equity $ 1,816 $ 4,485 Less: AOCI (2,803) 734 Total equity excluding AOCI (1) $ 4,619 $ 3,751 Common shares outstanding (in millions) 126 105 Book value per common share $ 14.41 $ 42.71 Book value per common share, excluding AOCI $ 36.66 $ 35.72 SALES HIGHLIGHTS Three Months Ended Twelve Months Ended (In millions) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Total annuity sales(1) $ 2,441 $ 1,356 $ 8,294 $ 6,048 Indexed universal life sales(1) 35 28 127 87 Funding agreements (FABN/FHLB) — 35 1,443 2,310 Pension risk transfer 243 776 1,390 1,147 Gross sales(1) $ 2,719 $ 2,195 $ 11,254 $ 9,592 Sales attributable to flow reinsurance to third parties (808) (151) (2,248) (869) Net Sales $ 1,911 $ 2,044 $ 9,006 $ 8,723 ROLLFORWARD OF ASSETS UNDER MANAGEMENT (AUM) AND AVERAGE ASSETS UNDER MANAGEMENT (AAUM) 1 See definition of non-GAAP measures below Three months ended Year ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 AUM at beginning of period (1) $ 41,988 $ 34,665 $ 36,494 $ 28,553 Net new business asset flows 1,868 2,050 8,539 8,393 Net flow reinsurance to third parties (835) (221) (2,012) (852) Debt issuance (repayment) proceeds, net 547 — 547 400 AUM at end of period (1) $ 43,568 $ 36,494 $ 43,568 $ 36,494 AAUM (1) $ 42,605 $ 35,699 $ 40,069 $ 31,938
DEFINITIONS The following represents the definitions of non-GAAP measures used by the Company. Adjusted Net Earnings Adjusted net earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations to eliminate: i. Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effect of changes in fair value of the reinsurance related embedded derivative; ii. Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; iii. Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (“VODA”)) recognized as a result of acquisition activities; iv. Transaction costs: the impacts related to acquisition, integration and merger related items; v. Other “non-recurring,” “infrequent” or “unusual items”: Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years; vi. Amortization of actuarial intangibles and SOP 03-1 reserve offset: The intangibles amortization and SOP 03-1 change offsets related to the above mentioned adjustments; and vii. Income taxes: the income tax impact related to the above mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non- operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). Adjusted Net Earnings per Common Share Adjusted net earnings per common share is calculated as adjusted net earnings divided by the weighted-average common shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Adjusted Net Earnings per Diluted Share Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the weighted-average diluted shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Adjusted Return on Assets Adjusted return on assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM. Assets Under Management (AUM) AUM uses the following components: i. total invested assets at amortized cost, excluding derivatives, net of reinsurance qualifying for risk transfer in accordance with GAAP; ii. related party loans and investments; iii. accrued investment income; iv. the net payable/receivable for the purchase/sale of investments; and v. cash and cash equivalents excluding derivative collateral at the end of the period Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Average Assets Under Management (AAUM) (Quarterly and YTD) AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Book Value per Share (including and excluding AOCI) Book value per share including and excluding AOCI is calculated as total equity (or total equity excluding AOCI) divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company. Sales Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition. Total Capitalization excluding AOCI Total Capitalization excluding AOCI is based on Total Equity and the aggregate principal amount of debt and Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments. Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company. Total Equity excluding AOCI Total Equity excluding AOCI is based on Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments.
Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on Total Equity. Yield on AAUM Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
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Exhibit 99.2 F&G Annuities & Life, Inc. ("F&G" or "the Company") (NYSE: FG) Financial Supplement December 31, 2022 (Year Ended December 31) The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K as applicable. All dollar amounts are presented in millions except for per share amounts. Non-GAAP Financial Measures Generally Accepted Accounting Principles ("GAAP") is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this document includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within. 1
Page A. Financial Highlights Consolidated Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Sales Results by Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Consolidated Statements of Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Reconciliation from Net Earnings to Adjusted Net Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Reconciliation from Net Earnings Per Diluted Share to Adjusted Net Earnings Per Diluted Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Adjusted Net Earnings Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Adjusted Net Earnings - Significant Income and Expense Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Adjusted Return on Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Assets Under Management Rollforward and Average Assets Under Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Interest and Investment Income and Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Capitalization and Reconciliation of Total Equity to Total Equity excluding AOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Reconciliation of Return on Equity (ROE) to Adjusted ROE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Ratings Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 B. Product Summary GAAP Net Reserve Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Annuity Account Balance Rollforward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Annuity Liability Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 C. Investment Summary Summary of Invested Assets by Asset Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Credit Quality of Fixed Maturity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 D. Counterparty Risk Top 5 Reinsurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 E. Shareholder Information Common Stock Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Quarterly Cash Dividend History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Research Analyst Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 F. Non-GAAP Financial Measures Definitions 19 F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 2
Consolidated Financial Highlights Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Select Income Statement Data: Net earnings (loss) $ (100) $ 115 $ 230 $ 236 $ 121 $ 481 $ 865 Adjusted net earnings (a) (b) 138 12 112 83 142 345 551 Per Share Metrics: Net earnings per diluted share (0.80) 0.92 2.15 2.25 1.15 4.18 8.24 Adjusted net earnings per diluted share (a) (b) 1.10 0.10 1.05 0.79 1.35 3.00 5.25 Book value per share 14.41 13.40 19.95 31.24 42.71 14.41 42.71 Book value per share, excluding AOCI (a) 36.66 37.93 36.99 38.01 35.72 36.66 35.72 Weighted-average diluted shares outstanding (in millions) 125 125 107 105 105 115 105 Common shares outstanding (in millions) 126 125 125 105 105 126 105 Select Metrics: Return on average equity 17.5 % 21.3 % 25.2 % 19.9 % 20.4 % 17.5 % 20.4 % Return on average equity, excluding AOCI (a) 11.1 % 16.9 % 24.9 % 22.8 % 25.9 % 11.1 % 25.9 % Adjusted return on average equity, excluding AOCI (a) (b) 7.9 % 8.4 % 12.9 % 15.1 % 16.5 % 7.9 % 16.5 % Average assets under management ("AAUM") (a) $ 42,605 $ 41,081 $ 39,306 $ 37,459 $ 35,699 $ 40,069 $ 31,938 Assets under management ("AUM") (a) $ 43,568 $ 41,988 $ 40,322 $ 38,601 $ 36,494 $ 43,568 $ 36,494 Adjusted return on assets (a) (b) 0.86 % 0.70 % 1.02 % 0.89 % 1.73 % 0.86 % 1.73 % Sales (a) Fixed indexed annuities ("FIA") $ 1,365 $ 1,109 $ 1,114 $ 962 $ 1,055 $ 4,550 $ 4,310 Fixed rate annuities ("MYGA") 1,076 1,108 1,087 473 301 3,744 1,738 Total annuity 2,441 2,217 2,201 1,435 1,356 8,294 6,048 Indexed universal life ("IUL") 35 36 29 27 28 127 87 Funding agreements ("FABN/FHLB") — — 843 600 35 1,443 2,310 Pension risk transfer ("PRT") 243 620 — 527 776 1,390 1,147 Gross Sales 2,719 2,873 3,073 2,589 2,195 11,254 9,592 Sales attributable to flow reinsurance to third parties (808) (660) (544) (236) (151) (2,248) (869) Net Sales $ 1,911 $ 2,213 $ 2,529 $ 2,353 $ 2,044 $ 9,006 $ 8,723 (a) Refer to "Non-GAAP Financial Measures Definitions" (b) Effective as of September 30, 2022, presentations of adjusted net earnings and adjusted return on assets does not include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 3
Consolidated Balance Sheets December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Assets: Investments: Fixed maturity securities available for sale, at fair value, (amortized cost of $35,723), net of allowance for credit losses of $31 at December 31, 2022 $ 31,218 $ 29,359 $ 28,398 $ 29,478 $ 29,962 Preferred securities, at fair value 722 812 839 934 1,028 Equity securities, at fair value 101 110 119 139 143 Derivative investments 244 108 145 487 816 Mortgage loans, net of allowance for credit losses of $42 at December 31, 2022 4,554 4,533 4,437 4,217 3,749 Investments in unconsolidated affiliates 2,427 2,789 2,668 2,696 2,350 Other long-term investments 565 537 528 510 489 Short-term investments 1,556 42 823 387 373 Total investments $ 41,387 $ 38,290 $ 37,957 $ 38,848 $ 38,910 Cash and cash equivalents 960 1,384 992 1,168 1,533 Trade and notes receivables 3 2 3 3 3 Reinsurance recoverable, net of allowance for credit losses of $10 at December 31, 2022 5,587 4,806 4,215 3,801 3,610 Goodwill 1,756 1,756 1,756 1,756 1,756 Prepaid expenses and other assets 917 851 1,000 625 613 Lease assets 8 8 9 9 8 Other intangible assets, net 3,652 3,438 3,143 2,699 2,234 Property and equipment, net 13 13 14 14 13 Income taxes receivable 28 49 64 46 50 Deferred tax asset, net 764 713 473 142 — Total assets $ 55,075 $ 51,310 $ 49,626 $ 49,111 $ 48,730 Liabilities and Equity: Contractholder funds $ 41,233 $ 39,127 $ 37,707 $ 36,237 $ 35,525 Future policy benefits 5,923 5,734 5,177 5,217 4,732 Accounts payable and accrued liabilities 1,273 1,289 1,384 1,536 1,297 Income taxes payable — — — — — Deferred tax liability, net — — — — 24 Notes payable 1,114 571 573 975 977 Funds withheld for reinsurance liabilities 3,703 2,900 2,277 1,852 1,676 Lease liabilities 13 14 14 14 14 Total liabilities $ 53,259 $ 49,635 $ 47,132 $ 45,831 $ 44,245 Equity: F&G common stock $0.001 par value; authorized 500,000,000 shares as of December 31, 2022; outstanding and issued shares of 126,409,904 as of December 31, 2022 — — — — — Additional paid-in-capital 3,162 3,159 3,156 2,753 2,750 Retained earnings 1,457 1,582 1,468 1,238 1,001 Accumulated other comprehensive (loss) income ("AOCI") (2,803) (3,066) (2,130) (711) 734 Total equity $ 1,816 $ 1,675 $ 2,494 $ 3,280 $ 4,485 Total liabilities and equity $ 55,075 $ 51,310 $ — $ 49,626 $ 49,111 $ 48,730 F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 4
Consolidated Statements of Earnings Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenues: Life insurance premiums and other fees $ 331 $ 702 $ 68 $ 594 $ 838 $ 1,695 $ 1,395 Interest and investment income 439 340 425 451 511 1,655 1,852 Recognized gains and losses, net (147) (140) (426) (297) 345 (1,010) 715 Total revenues 623 902 67 748 1,694 2,340 3,962 Benefits and expenses: Benefits and other changes in policy reserves 743 592 (418) 208 1,404 1,125 2,138 Personnel costs 47 46 34 30 36 157 129 Other operating expenses 25 28 31 18 29 102 105 Depreciation and amortization (22) 87 121 143 65 329 484 Interest expense 6 6 9 8 8 29 29 Total benefits and expenses 799 759 (223) 407 1,542 1,742 2,885 Pre-tax earnings (loss) (176) 143 290 341 152 598 1,077 Income tax expense (benefit) (76) 28 60 105 31 117 220 Net earnings (loss) from continuing operations (100) 115 230 236 121 481 857 Earnings from discontinued operations, net of tax — — — — — — 8 Net earnings (loss) $ (100) $ 115 $ 230 0 $ 236 $ 121 $ 481 $ 865 Net earnings (loss) per common share: Basic (millions) $ (0.80) $ 0.92 $ 2.15 $ 2.25 $ 1.15 $ 4.18 $ 8.24 Diluted (millions) $ (0.80) $ 0.92 $ 2.15 $ 2.25 $ 1.15 $ 4.18 $ 8.24 Weighted average common shares used in computing net earnings (loss) per common share: Basic (millions) 125 125 107 105 105 115 105 Diluted (millions) 125 125 107 105 105 115 105 F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 5
Reconciliation from Net Earnings to Adjusted Net Earnings (a) (b) The table below provides a comparison of adjusted net earnings by quarter and year to date (Refer to "Non-GAAP Financial Measures Definitions"). The three months ended periods beginning with September 30, 2022 and prior, as well as the year ended December 31, 2021 (i.e., the periods prior to the adjusted net earnings definition change), include the new definition of adjusted net earnings as compared to the prior definition. Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net earnings from continuing operations $ (100) $ 115 $ 230 $ 236 $ 121 $ 481 $ 857 Non-GAAP adjustments (a): Recognized (gains) and losses, net Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets 110 70 161 105 2 446 (56) Change in allowance for expected credit losses 11 6 7 — — 24 (5) Change in fair value of reinsurance related embedded derivatives 5 (94) (141) (122) (11) (352) (34) Change in fair value of other derivatives and embedded derivatives 10 (7) (4) — (5) (1) (14) Recognized (gains) losses, net 136 (25) 23 (17) (14) 117 (109) Indexed product related derivatives 212 (148) (198) (220) 21 (354) (146) Purchase price amortization 5 5 5 6 6 21 26 Transaction costs and other non-recurring items (c) 2 4 4 — — 10 (279) Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments (81) 33 17 37 13 6 123 Income taxes on non-GAAP adjustments (36) 28 31 41 (5) 64 79 Adjusted net earnings (a) (d) $ 138 $ 12 $ 112 $ 83 $ — $ 142 $ 345 $ 551 Adjusted net earnings under previous definition N/A 105 128 82 90 N/A 361 Difference in adjusted net earnings to amounts under previous definition N/A $ (93) $ (16) $ 1 $ 52 N/A $ 190 (a) Refer to "Non-GAAP Financial Measures Definitions." (b) Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 9. (c) The year ended December 31, 2021 amount includes a one-time favorable adjustment to benefits and other changes in policy reserves and depreciation and amortization resulting from an actuarial system conversion at September 31, 2021, which reflects modeling enhancement and other refinements of $284 million. (d) Effective as of September 30, 2022, presentations of adjusted net earnings and adjusted return on assets does not include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 6
Reconciliation from Net Earnings Per Diluted Share to Adjusted Net Earnings Per Diluted Share (a) (b) The table below provides a comparison of adjusted net earnings per diluted share by quarter and year to date (Refer to "Non-GAAP Financial Measures Definitions"). The three months ended periods beginning with September 30, 2022 and prior, as well as the year ended December 31, 2021 (i.e., the periods prior to the adjusted net earnings definition change), include the new definition of adjusted net earnings as compared to the prior definition. Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net earnings per diluted share from continuing operations $ (0.80) $ 0.92 $ 2.15 $ 2.25 $ 1.15 $ 4.18 $ 8.16 Non-GAAP adjustments (a): Recognized (gains) and losses, net Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets $ 0.88 $ 0.56 $ 1.50 $ 1.00 $ 0.02 $ 3.88 $ (0.53) Change in allowance for expected credit losses 0.09 0.05 0.07 — — 0.21 (0.05) Change in fair value of reinsurance related embedded derivatives 0.04 (0.75) (1.32) (1.16) (0.10) (3.06) (0.32) Change in fair value of other derivatives and embedded derivatives 0.08 (0.06) (0.04) — (0.05) (0.01) (0.13) Recognized (gains) losses, net 1.09 (0.20) 0.21 (0.16) (0.13) 1.02 (1.03) Indexed product related derivatives 1.69 (1.17) (1.85) (2.10) 0.20 (3.08) (1.39) Purchase price amortization 0.04 0.04 0.05 0.06 0.06 0.18 0.25 Transaction costs and other non-recurring items (c) 0.02 0.03 0.04 — — 0.09 (2.66) Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments (0.65) 0.26 0.16 0.35 0.12 0.05 1.17 Income taxes on non-GAAP adjustments (0.29) 0.22 0.29 0.39 (0.05) 0.56 0.75 Adjusted net earnings per diluted share (a) (d) $ 1.10 $ 0.10 $ 1.05 $ 0.79 $ 1.35 $ 3.00 $ 5.25 Adjusted net earnings under previous definition N/A 0.84 1.20 0.78 0.86 N/A 3.44 Difference in adjusted net earnings to amounts under previous definition N/A $ (0.74) $ (0.15) $ 0.01 $ 0.49 N/A $ 1.81 (a) Refer to "Non-GAAP Financial Measures Definitions." (b) Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 9. (c) The year ended December 31, 2021 amount includes a one-time favorable adjustment to benefits and other changes in policy reserves and depreciation and amortization resulting from an actuarial system conversion at September 31, 2021, which reflects modeling enhancement and other refinements of $284 million. (d) Effective as of September 30, 2022, presentations of adjusted net earnings and adjusted return on assets does not include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 7
Adjusted Net Earnings Statement (a) (b) The table below provides a comparison of adjusted net earnings by quarter and year to date (Refer to "Non-GAAP Financial Measures Definitions"). The three months ended periods beginning with September 30, 2022 and prior, as well as the year ended December 31, 2021 (i.e., the periods prior to the adjusted net earnings definition change), include the new definition of adjusted net earnings as compared to the prior definition. Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenues: Life insurance premiums and other fees (c) $ 333 $ 687 $ 87 $ 593 $ 840 $ 1,700 $ 1,397 Interest and investment income (d) 439 340 425 451 511 1,655 1,852 Recognized gains and losses, net (e) — — — — — — — Total revenues 772 1,027 512 1,044 1,351 3,355 3,249 Benefits and expenses: Benefits and other changes in policy reserves (c) (f) 541 902 223 777 1,028 2,443 2,039 Personnel costs 47 46 34 30 36 157 129 Other operating expenses (g) 22 24 28 18 29 92 100 Depreciation and amortization (h) 58 36 78 64 73 236 261 Interest expense 6 6 9 8 8 29 29 Total benefits and expenses 674 1,014 372 897 1,174 2,957 2,558 Pre-tax earnings 98 13 140 147 177 398 691 Income tax expense (benefit) (40) 1 28 64 35 53 140 Adjusted net earnings (a) $ 138 $ 12 $ 112 $ 83 $ 142 $ 345 $ 551 Adjusted net earnings under previous definition N/A 105 128 82 90 N/A 361 Difference in adjusted net earnings to amounts under previous definition N/A $ (93) $ (16) $ 1 $ 52 N/A $ 190 Adjusted net earnings per common share (a): Basic (millions) $ 1.10 $ 0.10 $ 1.05 $ 0.79 $ 1.35 $ 3.00 $ 5.25 Diluted (millions) $ 1.10 $ 0.10 $ 1.05 $ 0.79 $ 1.35 $ 3.00 $ 5.25 Weighted average common shares used in computing adjusted net earnings per common share: Basic (millions) 125 125 107 105 105 115 105 Diluted (millions) 125 125 107 105 105 115 105 (a) Refer to "Non-GAAP Financial Measures Definitions." (b) Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 9. (c) Includes premiums from agreements related to our new PRT business beginning in the three months ended September 30, 2021. (d) Refer to Interest and Investment Income and Yield on page 11 (e) Recognized gains and losses (net) have been adjusted to remove the effect of recognized (gains) losses including changes in allowance for expected credit losses and OTTI; changes in fair values of indexed product related derivatives and embedded derivatives, net of hedging costs; and the change in fair value of the reinsurance related embedded derivative. (f) Benefits and other changes in policy reserves has been adjusted to remove the effects of the changes in fair values of indexed product embedded derivatives, changes in allowance for expected credit losses on reinsurance recoverables, the fair value impacts of assumed reinsurance, and changes in the SOP 03-1 reserve resulting from the adjustments above, as applicable. The year ended December 31, 2021 balance removes changes resulting from the implementation of a new actuarial valuation system at September 30, 2021. (g) Other operating expenses have been adjusted to remove the effects of transaction costs. (h) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, and DSI of the adjustments above, as applicable and purchase price amortization. The year ended December 31, 2021 balance removes changes resulting from the implementation of a new actuarial valuation system at September 30, 2021. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 8
Adjusted Net Earnings - Significant Income and Expense Items (a) Each reporting period, we identify significant income and expense items that help explain the trends in our adjusted net earnings, as we believe these items provide further clarity to the financial performance of the business. Those significant income and expense items are reported after actuarial intangibles and SOP 03-1 reserve offsets and taxes ($ and shares in table in millions). Significant Income and Expense Items Reflected in ANE Alternatives Long-term Expected Return Not Reflected in ANE Weighted Average Diluted Shares Outstanding Three months ended December 31, 2022 Adjusted net earnings of $138 million for the three months ended December 31, 2022 included a $34 million recognized gain from alternative investments, a $58 million one-time tax benefit from carryback of capital losses and $12 million from actuarial assumption updates and other items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $91 million. $104 $91 125 September 30, 2022 Adjusted net earnings of $12 million for the three months ended September 30, 2022 included a $10 million recognized loss from alternative investments and $5 million of other net expense items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $83 million. $(15) $83 125 June 30, 2022 Adjusted net earnings of $112 million for the three months ended June 30, 2022 included a $38 million recognized gain from alternative investments, $30 million income from actuarial assumption updates and $6 million of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $54 million. $74 $54 107 March 31, 2022 Adjusted net earnings of $83 million for the three months ended March 31, 2022 included a $38 million recognized gain from alternative investments, $22 million income of CLO redemption gains and other income; partially offset by $38 million tax valuation allowance expense. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $37 million. $22 $37 105 December 31, 2021 Adjusted net earnings of $142 million for the three months ended December 31, 2021 included a $118 million recognized gain from alternative investments and $3 million income of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $66 million. $121 $66 105 Year ended December 31, 2022 Adjusted net earnings of $345 million for the twelve months ended December 31, 2022 included a $100 million recognized gain from alternative investments, $49 million income from actuarial assumption and reserves updates, $21 million of CLO redemption gains and other income, $20 million of net income tax benefits and $5 million of other net expense items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $265 million. $185 $265 115 December 31, 2021 Adjusted net earnings of $551 million for the twelve months ended December 31, 2021 included a $359 million recognized gain from alternative investments, $46 million of CLO redemption gains and other income, $10 million income from net favorable mortality experience and other reserve changes, and $8 million income from actuarial intangibles unlocking. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $169 million. $423 $169 105 (a) Refer to Reconciliation from Net Earnings to Adjusted Net Earnings on page 6, Reconciliation from Net Earnings Per Diluted Share to Adjusted Net Earnings Per Diluted Share on page 7 and Adjusted Net Earnings Statement on page 8. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 9
Adjusted Return on Assets Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Interest and investment income $ 439 $ 340 $ 425 $ 451 $ 511 $ 1,655 $ 1,852 Cost of funds (264) (250) (201) (240) (261) (955) (906) Product margin 175 90 224 211 250 700 946 Expenses (operating, interest & taxes) (37) (78) (112) (128) (108) (355) (395) Adjusted net earnings (a) (b) $ 138 $ 12 $ 112 $ 83 $ 142 $ 345 $ 551 Annualized year to date Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Portfolio earned yield (c) 4.13 % 4.13 % 4.57 % 4.82 % 5.80 % 4.13 % 5.80 % Cost of funds (c) (2.38) % (2.35) % (2.30) % (2.57) % (2.83) % (2.38) % (2.83) % Product margin (c) 1.75 % 1.78 % 2.27 % 2.25 % 2.97 % 1.75 % 2.97 % Expenses (operating, interest & taxes) (c) (0.89) % (1.08) % (1.25) % (1.36) % (1.24) % (0.89) % (1.24) % Adjusted return on assets (a) (b) (c) 0.86 % 0.70 % 1.02 % 0.89 % 1.73 % 0.86 % 1.73 % AAUM YTD (a) $ 40,069 $ 39,246 $ 38,351 $ 37,459 $ 31,938 $ 40,069 $ 31,938 Assets Under Management Rollforward and Average Assets Under Management Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 AUM at beginning of period (a) $ 41,988 $ 40,322 $ 38,601 $ 36,494 $ 34,665 $ 36,494 $ 28,553 Net new business asset flows 1,868 2,177 2,271 2,223 2,050 8,539 8,393 Net flow reinsurance to third parties (835) (511) (550) (116) (221) (2,012) (852) Debt issuance (repayment) proceeds, net 547 — — — — 547 400 AUM at end of period (a) $ 43,568 $ 41,988 $ 40,322 $ 38,601 $ 36,494 $ 43,568 $ 36,494 AAUM (a) $ 42,605 $ 41,081 $ 39,306 $ 37,459 $ 35,699 $ 40,069 $ 31,938 (a) Refer to "Non-GAAP Financial Measures Definitions" (b) Effective September 30, 2022, presentations of adjusted net earnings and adjusted return on assets will no longer include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings. (c) Calculated by dividing applicable annualized year-to-date amount by year-to-date AAUM. (d) Yield on AAUM reflects significant income and expense items, such as alternative investment mark-to-market, gains on CLO redemptions and bond prepay income. See page 9 for further discussion of these items. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 10
Interest and Investment Income and Yield Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Interest and investment income $ 439 $ 340 $ 425 $ 451 $ 511 $ 1,655 $ 1,852 AAUM (a) 42,605 41,081 39,306 37,459 35,699 40,069 31,938 Yield on AAUM (a) 4.12 % 3.31 % 4.33 % 4.82 % 5.73 % 4.13 % 5.80 % Less: Alternative investment income (b) 52 (16) 90 130 192 256 629 Less: Variable investment income (c) 2 — 8 22 26 32 96 Fixed income and other net investment income (d) $ 385 $ 356 $ 327 $ 299 $ 293 $ 1,367 $ 1,127 AAUM, excluding alternative investments 36,055 35,250 33,963 32,614 31,274 34,460 28,923 Yield on AAUM, excluding alternative investments 4.27 % 4.04 % 3.85 % 3.67 % 3.75 % 3.97 % 3.90 % (a) Refer to" Non-GAAP Financial Measures Definitions" (b) Includes interest and investment income from limited partnerships classified as investments in unconsolidated affiliates and whole loan and direct lending securitizations classified as asset backed securities. (c) Includes significant, non-recurring interest and investment income items, which could include call and tender income, commercial loan obligation prepayments and other miscellaneous investment income. (d) Includes interest and investment income from fixed maturity securities (excluding certain asset backed securities considered alternative investments), mortgage loans, equity securities, short-term investments, and long-term investments, net of investment expense and before offsets for actuarial intangibles and SOP 03-1 reserve offsets and taxes. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 11
Capitalization and Reconciliation of Total Equity to Total Equity excluding AOCI Three months ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Capitalization: Notes payable (aggregate principal amount) (b) 1,100 550 550 950 950 Total Equity 1,816 1,675 2,494 3,280 4,485 Total Capitalization (b) 2,916 2,225 3,044 4,230 5,435 Less: AOCI (2,803) (3,066) (2,130) (711) 734 Total Capitalization excluding AOCI (a) (b) $ 5,719 $ 5,291 $ 5,174 $ 4,941 $ 4,701 Reconciliation of Total Equity to Total Equity excluding AOCI: Total Equity 1,816 1,675 2,494 3,280 4,485 Less: AOCI (2,803) (3,066) (2,130) (711) 734 Total Equity excluding AOCI (a) $ 4,619 $ 4,741 $ 4,624 $ 3,991 $ 3,751 Debt-to-Capital Ratio: Total Debt to Capitalization, excluding AOCI (a) (b) 19.2 % 10.4 % 10.6 % 19.2 % 20.2 % (a) Refer to "Non-GAAP Financial Measures Definitions." (b) Excludes $500 million Senior Notes issued January 13, 2023, not reflected on balance sheet as of December 31, 2022. Reconciliation of Return on Equity (ROE) to Adjusted ROE Twelve months ended Reconciliation of the Twelve Month Rolling ROE to Adjusted ROE December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Return on average equity 17.5 % 21.3 % 25.2 % 19.9 % 20.4 % AOCI (6.4) % (4.3) % (0.2) % 2.9 % 5.5 % Return on average equity, excluding AOCI (a) 11.1 % 16.9 % 24.9 % 22.8 % 25.9 % Aggregate adjustments to arrive at adjusted net earnings (b) (3.1) % (8.5) % (12.0) % (7.7) % (9.4) % Adjusted return on average equity, excluding AOCI (a) 7.9 % 8.4 % 12.9 % 15.1 % 16.5 % (a) Refer to "Non-GAAP Financial Measures Definitions." (b) Refer to "Reconcilation from Net Earnings to Adjusted Net Earnings" on page 6 for further details on individual adjustments. (c) Adjusted return on average equity, excluding AOCI, does not include the alternatives investment yield adjustment to normalize alternative investment portfolio returns. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 12
Ratings Overview A.M. Best S&P Fitch Moody's Holding Company & Security Ratings F&G Annuities & Life, Inc. Issuer Credit / Default Rating Not Rated BBB- BBB Ba2 Outlook Stable Stable Positive Senior Unsecured Notes (2028 maturity) (a) Not Rated BBB- BBB- Not Rated CF Bermuda Holdings Limited Issuer Credit / Default Rating Not Rated BBB- BBB Ba1 Outlook Stable Stable Positive Fidelity & Guaranty Life Holdings, Inc. Issuer Credit / Default Rating BBB- BBB- BBB Not Rated Outlook Positive Stable Stable Senior Unsecured Notes (2025 maturity) (b) BBB- BBB BBB Baa2 Outlook Positive Stable Operating Subsidiary Ratings Fidelity & Guaranty Life Insurance Company Financial Strength Rating A- A- A- Baa1 Outlook Positive Stable Stable Positive Fidelity & Guaranty Life Insurance Company of New York Financial Strength Rating A- A- A- Not Rated Outlook Positive Stable Stable F&G Life Re Ltd Financial Strength Rating Not Rated A- A- Baa1 Outlook Stable Stable Positive F&G Cayman Re Ltd Financial Strength Rating Not Rated Not Rated A- Not Rated Outlook Stable (a) Issuance by F&G Annuities & Life, Inc. on January 13, 2023 (b) Explicitly guaranteed by parent Fidelity National Financial, Inc. upon acquisition of F&G on June 1, 2020 F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 13
GAAP Net Reserve Summary Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Fixed indexed annuities $ 24,813 $ 23,586 $ 23,168 $ 23,197 $ 23,370 $ 24,813 $ 23,370 Fixed rate annuities 5,640 5,611 5,263 4,805 4,681 5,640 4,681 Single premium immediate annuity and other 3,798 3,829 3,852 3,583 3,465 3,798 3,465 Indexed universal life 2,244 2,176 2,125 2,097 2,074 2,244 2,074 Funding agreements 2,613 2,613 2,608 2,305 1,904 2,613 1,904 Pension risk transfer 2,461 2,240 1,653 1,666 1,153 2,461 1,153 Total product reserves $ 41,569 $ 40,055 $ 38,669 $ 37,653 $ 36,647 $ 41,569 $ 36,647 Annuity Account Balance Rollforward (a) Three months ended Year ended December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Annuity balances at beginning of period: $ 29,514 $ 28,478 $ 27,331 $ 26,673 $ 25,662 $ 26,673 $ 22,992 Net deposits 1,661 1,598 1,673 1,073 1,321 6,005 5,287 Surrenders, withdrawals, deaths, etc. (806) (600) (596) (539) (517) (2,541) (2,355) Net flows 855 998 1,077 534 804 3,464 2,932 Premium and interest bonuses 23 19 21 22 23 85 82 Fixed interest credited and index credits 57 58 91 142 226 348 816 Guaranteed product rider fees (46) (39) (42) (40) (42) (167) (149) Account balance at end of period $ 30,403 $ 29,514 $ 28,478 $ 27,331 $ 26,673 $ 30,403 $ 26,673 (a) The rollforward reflects the vested account balance of our fixed index annuities and fixed rate annuities, net of reinsurance. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 14
Annuity Liability Characteristics Fixed Annuities Account Value Fixed Index Annuities Account Value SURRENDER CHARGE PERCENTAGES: December 31, 2022 No surrender charge $ 343 $ 2,545 0.0% < 2.0% 19 178 2.0% < 4.0% 38 1,042 4.0% < 6.0% 907 2,318 6.0% < 8.0% 1,595 4,034 8.0% < 10.0% 2,736 8,927 10.0% or greater — 5,721 $ 5,638 $ 24,765 Fixed Annuities Account Value Fixed Index Annuities Account Value CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL: December 31, 2022 No differential $ 514 $ 1,382 0.0% - 1.0% 604 1,149 1.0% - 2.0% 1,620 37 2.0% - 3.0% 2,146 66 3.0% - 4.0% 604 57 4.0% - 5.0% 150 5 Allocated to index strategies — 22,069 $ 5,638 $ 24,765 F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 15
Summary of Invested Assets by Asset Class December 31, 2022 December 31, 2021 Amortized Cost Fair Value Percent Amortized Cost Fair Value Percent Fixed maturity securities, available for sale: United States Government full faith and credit $ 34 $ 32 — % $ 50 $ 50 — % United States Government sponsored entities 46 42 — % 74 74 — % United States municipalities, states and territories 1,695 1,410 3 % 1,386 1,441 4 % Foreign Governments 185 148 — % 197 205 1 % Corporate securities: Finance, insurance and real estate 5,969 5,085 12 % 4,881 5,109 13 % Manufacturing, construction and mining 896 737 2 % 880 932 2 % Utilities, energy and related sectors 2,915 2,275 6 % 2,881 2,987 8 % Wholesale/retail trade 2,535 2,008 5 % 2,503 2,627 7 % Services, media and other 3,564 2,794 7 % 3,227 3,349 8 % Hybrid securities 781 705 2 % 812 881 2 % Non-agency residential mortgage-backed securities 1,585 1,479 4 % 648 648 2 % Commercial mortgage-backed securities 3,309 3,036 7 % 2,669 2,964 7 % Asset-backed securities 7,749 7,245 18 % 4,514 4,550 12 % CLO securities 4,460 4,222 10 % 4,002 4,145 11 % Total fixed maturity securities, available for sale $ 35,723 $ 31,218 76 % $ 28,724 $ 29,962 77 % Equity securities 992 823 2 % 1,135 1,171 3 % Limited partnerships: Private equity 1,129 1,129 3 % 1,181 1,181 3 % Real assets 436 431 1 % 339 340 1 % Credit 867 867 2 % 829 829 2 % Limited partnerships 2,432 2,427 6 % 2,349 2,350 6 % Commercial mortgage loans 2,406 2,083 5 % 2,168 2,265 6 % Residential mortgage loans 2,148 1,892 5 % 1,581 1,549 4 % Other (primarily derivatives and company owned life insurance) 1,137 809 2 % 971 1,305 3 % Short term investments 1,556 1,556 4 % 373 373 1 % Total investments (a) $ 46,394 $ 40,808 100 % $ 37,301 $ 38,975 100 % (a) Asset duration of 4.9 years and 6.4 years vs. liability duration of 5.1 years and 7.1 years for the periods ending December 31, 2022 and December 31, 2021, respectively. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 16
Credit Quality of Fixed Maturity Securities December 31, 2022 NAIC Designation Fair Value Percent 1 $ 19,234 61 % 2 10,250 33 % 3 1,419 5 % 4 220 1 % 5 39 — % 6 56 — % $ 31,218 100 % December 31, 2022 Rating Agency Rating Fair Value Percent AAA $ 1,358 4 % AA 2,297 7 % A 8,076 26 % BBB 8,158 26 % Not rated 9,529 31 % Total investment grade 29,418 94 % BB 986 3 % B and below 236 1 % Not rated 578 2 % Total below investment grade 1,800 6 % $ 31,218 100 % Top 5 Reinsurers December 31, 2022 Financial Strength Rating Parent Company/Principal Reinsurers Reinsurance Recoverable (a) AM Best S&P Fitch Moody's Aspida Life Re Ltd $ 3,121 A- — — — Wilton Re 1,231 A+ — A — Somerset Reinsurance Ltd 570 A- BBB+ — — London Life Reinsurance Co. 100 A+ — — — Security Life of Denver 93 — A- A- baa1 (a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies. '-' indicates not rated F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 17
Shareholder Information NYSE: FG Common Stock Information High Low Close 2022 (Unaudited) Fourth Quarter - period from 12/1/2022 to 12/30/2022 (a) $ 22.12 $ 17.34 $ 20.01 (a) For IRS Form 8937, see "Tax Basis Information for F&G Distribution to FNF Shareholders" dated December 1, 2022 available at www.investor.fnf.com/investor-relations. Quarterly Cash Dividend History Ex-Dividend Date Record Date Payable Date Amount per Share 2023 (Unaudited) First Quarter - Inaugural Dividend (b) 1/13/2023 1/17/2023 1/31/2023 $ 0.20 (b) F&G will announce the record date and payment date for each future dividend following completion of the relevant fiscal quarter and expects future dividends to be paid in the third month of each subsequent quarter. Corporate Headquarters: Research Analyst Coverage: F&G Annuities & Life, Inc. John Campbell 801 Grand Avenue Stephens, Inc. Suite 2600 (501) 377-6362 Des Moines, IA 50309 john.campbell@stephens.com Investor Contact: Mark DeVries Lisa Foxworthy-Parker Barclays Capital Inc. SVP, Investor & External Relations (212) 526-9484 Investor.relations@fglife.com mark.devries@barclays.com (515) 330-3307 Andrew Kligerman Transfer Agent: Credit Suisse Continental Stock Transfer & Trust Company (212) 325-5069 1 State Street, 30th Floor andrew.kligerman@credit-suisse.com New York, NY 10004 Phone: (212) 509-4000 http://www.continentalstock.com F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 18
Non-GAAP Financial Measures Definitions The following represents the definitions of non-GAAP measures used by F&G: Adjusted Net Earnings Adjusted net earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations to eliminate: (i) Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effect of changes in fair value of the reinsurance related embedded derivative; (ii) Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; (iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (“VODA”)) recognized as a result of acquisition activities; (iv) Transaction costs: the impacts related to acquisition, integration and merger related items; (v) Other “non-recurring,” “infrequent” or “unusual items”: Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years. (vi) Amortization of actuarial intangibles and SOP 03-1 reserve offset: The intangibles amortization and SOP 03-1 change offsets related to the above mentioned adjustments; and (vii) Income taxes: the income tax impact related to the above mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations. Adjusted Net Earnings per Common Share Adjusted net earnings per common share is calculated as adjusted net earnings divided by the weighted-average common shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Adjusted Net Earnings per Diluted Share Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the weighted-average diluted shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 19
Non-GAAP Financial Measures Definitions (continued) Adjusted Return on Assets Adjusted return on assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM. Adjusted Return on Average Equity excluding AOCI Adjusted return on average equity is calculated by dividing annualized adjusted earnings (loss), by total average equity excluding AOCI. Average equity excluding AOCI for the twelve months rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level return driven by the Company's adjusted earnings (loss). Assets Under Management (AUM) AUM uses the following components: (i) total invested assets at amortized cost, excluding derivatives, net of reinsurance qualifying for risk transfer in accordance with GAAP; (ii) related party loans and investments; (iii) accrued investment income; (iv) the net payable/receivable for the purchase/sale of investments; and (v) cash and cash equivalents excluding derivative collateral at the end of the period Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Average Assets Under Management (AAUM) (Quarterly and YTD) AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Book Value per Share excluding AOCI Book value per share excluding AOCI is calculated as total equity (or total equity excluding AOCI) divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company. Return on Average Equity excluding AOCI Return on average equity excluding AOCI is calculated by dividing the rolling four quarters net earnings (loss), by total average equity excluding AOCI. Average equity excluding AOCI for the twelve months rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 20
Non-GAAP Financial Measures Definitions (continued) Sales Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition. Total Capitalization excluding AOCI Total Capitalization excluding AOCI is based on Total Equity and the total aggregate principal amount of debt and Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company. Total Debt-to-Capitalization excluding AOCI Debt-to-capital ratio excluding AOCI is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position. Total Equity excluding AOCI Total Equity excluding AOCI is based on Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on Total Equity. Yield on AAUM Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM. F&G Annuities & Life, Inc. Financial Supplement - December 31, 2022 (All periods are unaudited) 21
fgwinter2022investorpres
F&G Investor Update Winter 2022 Exhibit 99.3
F&G Investor Update | Winter 2022 2 Disclaimer & Forward-Looking Statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as “believes”, “expects”, “may”, “will”, “could”, “seeks”, “intends”, “plans”, “estimates”, “anticipates” or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in “Risk Factors” and other sections of our information statement filed with the Securities and Exchange Commission.
F&G Investor Update | Winter 2022 3 Non-GAAP Financial Measures Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.
F&G Investor Update | Winter 2022 4 Fourth Quarter Financial Highlights 4Q22 Highlights (comparisons to PY) ► Record total gross sales of $2.7B for the fourth quarter, an increase of 23%, driven by expansion in new channels ► Record ending assets under management of nearly $44B at December 31, 2022 ► Consistent economics over time despite short-term volatility in earnings ► F&G began trading on the New York Stock Exchange under the ticker symbol ‘FG’ on December 1, 2022, upon completion of the distribution of approximately 15% of its common stock to FNF shareholders. Our parent FNF retains control of F&G through an approximate 85% equity ownership stake ► Strong balance sheet with financial flexibility; F&G’s Board of Directors approved the initiation of a dividend program at an initial aggregate amount of approximately $100M per year. We have paid our first quarterly dividend in January 2023 in the amount of $25M, or $0.20 per share of common stock ($M) - except per share data in millions Quarterly Full Year Period ended December 31 4Q21 4Q22 2021 2022 Total gross sales $2,195 $2,719 $9,592 $11,254 Net retained sales $2,044 $1,911 $8,723 $9,006 Assets under management (AUM) $36,494 $43,568 $36,494 $43,568 Average assets under management (AAUM) $35,699 $42,605 $31,938 $40,069 Adjusted return on assets 1.73% 0.86% 1.73% 0.86% Net earnings (loss) $121 ($100) $865 $481 Net earnings (loss) per diluted share $1.15 ($0.80) $8.24 $4.18 Adjusted net earnings $142 $138 $551 $345 Adjusted net earnings per diluted share $1.35 $1.10 $5.25 $3.00 Weighted average diluted shares 105 125 105 115 Common shares outstanding 105 126 105 126 Book value excluding AOCI per share1 $35.72 $36.66 $35.72 $36.66 1Accumulated other comprehensive income (AOCI)
F&G Investor Update | Winter 2022 5 About F&G Snapshot Five Distinct Distribution ChannelsOur Product Lines ► Retail Channels ► Independent insurance agents (IMOs) ► Broker Dealer ► Banks ► Institutional Channels ► Pension risk transfer ► Funding agreements Background ► Founded in 1959 as a life insurance company ► F&G commenced trading on New York Stock Exchange (NYSE: FG) on December 1, 2022 ► Fidelity National Financial (NYSE: FNF) retains ~85% ownership ► Headquartered in Des Moines, IA; nearly 880 employees ► Ranking as a Top Workplaces company for 5 consecutive years ► Fixed Deferred Annuities ► Fixed indexed annuity (FIA) ► Multi-year guaranteed annuity (MYGA) ► Pension Risk Transfer (PRT) ► Life Insurance ► Indexed universal life (IUL) ► Funding Agreements ► Funding agreement backed notes (FABN) ► Federal Home Loan Bank (FHLB) A- Positive A.M. Best A- Stable S&P Global A- Stable Fitch Ratings Baa1 Positive Moody’s Financial Strength Ratings
F&G Investor Update | Winter 2022 6 Compelling Investment Case for F&G Targeting Large and Growing Markets F&G is a nationwide leader in the large markets we play in, and demographic trends will provide tailwinds to give us significant room to continue growing – including untapped Middle Market demand for Life coverage and the opportunity to migrate consumers from CDs to fixed annuities F&G Public Listing To Unlock Value Investors can invest directly in F&G as our strategy and our platform have positioned us to grow earnings, while generating significant positive net cash flow and diversifying into “capital light” flow reinsurance and accretive owned distribution to generate higher ROE’s Track Record of Success Superior Ecosystem Our long-standing relationships with multiple distribution channels, durable investment edge, and track record of attracting top talent give us a sustainable competitive advantage We have delivered consistent top line growth and return on assets across varying market cycles, and we expect to continue to outperform the rest of the market, especially in a rising rate environment
F&G Investor Update | Winter 2022 7 How F&G Makes Money – Retained Sales Client deposits premium with F&G 1 F&G invests in high quality and well diversified portfolio 2 F&G’s yield outpaces cost of funds and expenses 3 F&G’s AAUM growth drives earnings 4 Spectrum of client needs met (accumulation, income & wealth transfer), with no principal loss F&G’s strategic partnership with Blackstone provides a competitive advantage Product margin is difference between portfolio earned yield and cost of funds F&G expects steady and growing earnings over time, excluding short-term mark-to-market effects Gross Sales Assets Under Management Product Margin, Net of Expenses Spread-Based Earnings
F&G Investor Update | Winter 2022 8 How F&G Makes Money – Flow Reinsurance Client deposits premium with F&G 1 F&G expands flow relationships given high market demand 2 F&G onboards new business at lower marginal cost of capital 3 F&G enhances cash flow, diversifies earnings & increases ROE 4 Spectrum of client needs met (accumulation, income & wealth transfer), with no principal loss F&G continues to expand flow relationships through new partners &/or adding new products Lower capital requirement on ceded new business, while allocating capital to highest returning retained business F&G receives stream of ceding commissions and expense allowances on ceded new business Gross Sales Flow Reinsurance Capital “Light”, Enhanced Returns Fee-Based Earnings
F&G Investor Update | Winter 2022 9 How F&G Makes Money – Owned Distribution F&G takes equity stake in independent agent distribution 1 F&G earns dividend stream on “capital light” distribution 2 F&G generates higher margins at lower marginal cost of capital 3 F&G diversifies earnings through accretive owned distribution 4 F&G’s deep distribution relationships, long-term focus and product expertise provide ‘win win’ F&G receives dividend income stream from ownership stake as share of earnings Partnership grants access to higher margins and preferred shelf space within capital “light” distribution F&G expects at-scale distribution to trade at higher multiple relative to Life & Annuity Investment in Owned Distribution Dividend Income Stream Capital “Light”, Greater Margin Potential Higher Multiple Earnings
F&G Investor Update | Winter 2022 We Have A Clean & Profitable Inforce Book GAAP Net Reserves1 Annuity Metrics1 10 Weighted average time remaining in surrender charge period 6 Years % Surrender protected 91% Average remaining surrender charge (% of account value) 7% % Subject to market value adjustment (MVA) 71% Average cost of options/interest credited 2.2% Distance to guaranteed minimum crediting rates 128 bps 60% 14% 9% 6% 6% 5% Fixed Index Annuities Fixed Rate Annuities Immediate Annuities Funding Agreement-Backed Notes PRT Life $41.6B Our inforce liabilities are surrender charge protected and our asset and liability cash flows are well matched; our inforce book does not contain typical problematic legacy business ► Our liability profile drives our investment strategy ► 91% of inforce annuity is surrender charge protected; actual surrenders and lapses are consistent with profitability targets ► New business and inforce are actively managed to maintain pricing targets ► Asset and liability cash flows are well matched 1As of December 31, 2022
F&G Investor Update | Winter 2022 11 We Are Playing In High Growth Markets … U.S. Consumer Savings1 Certificates of Deposit2 Retail Life & Annuities3 Pension Risk Transfer4 Funding Agreements6 $140B $210B $354B 12021 personal savings in the U.S. per Statista Research Department, May 10, 2022 22018 USD held in CD Accounts <$100K per Federal Reserve Bank of St. Louis 32020 direct written premiums for Individual Life and Individual Annuities per Conning, Inc. $600B 4Value of U.S. pension risk transfer (PRT) assets held with all current PRT writers per LIMRA 2Q22 Pension Risk Transfer Survey 5U.S. Pension Risk Transfer Market Posts Record-Breaking 2021 per Pensions & Investments, Source Legal & General, February 8, 2022 6Outstanding value of Funding Agreement Backed Securities per Conning, Inc., Source: Federal Reserve, June 30, 2021 $2.3T Untapped demand for permanent life insurance, especially in the Middle Market Transaction volume likely to increase5 The U.S. retirement and middle markets are growing and we are both well-established and well-positioned for continued growth in our retail and institutional channels Consumers increasingly rely on personal savings for retirement income Many of these consumers would be better served by fixed annuity products
2018 2019 2020 2021 2022 F&G Investor Update | Winter 2022 12 Funding Agreements Agent PRT Broker Dealer Bank $9.6B $4.5B $3.9B $3.4B +35% CAGR1 Annual Total Gross Sales by Distribution Channel ($B) • FNF and F&G Merger • F&G ratings upgrades (June 2020) 1CAGR reflects 2018-2022 annual periods … And We’re Winning … $11.3B
77% 17% 1% 5% $4.5B 46% 12% 6% 24% 12% $9.6B 43% 28% 4% 13% 12% $11.3B 13 … While Significantly Diversifying Our Business Note: Reflects Total Gross Sales FY2021 SalesFY2020 Sales FY2022 Sales Bank Broker Dealer Agent Funding Agreements Pension Risk Transfer (PRT) C h a n n e l P ro d u c t 45% 18%1% 24% 12% $9.6B 41% 33% 1% 13% 12% $11.3B Multi-year Guaranteed Annuity (MYGA) Indexed Universal Life (IUL) Funding Agreements Fixed Indexed Annuity (FIA) Pension Risk Transfer (PRT) 84% 5% 7% 4% $4.5B F&G Investor Update | Winter 2022
Our High Quality, Diversified Portfolio Is Well-Positioned F&G Investor Update | Winter 2022 14 Portfolio remains conservatively positioned & well-matched to liability profile ► Fixed income portfolio is 95% investment grade ► Asset / liability duration well-balanced ► Floating rate exposure offers upside in a rising short-term rate environment; also, a meaningful portion of our floating rate assets have LIBOR floors, limiting impact from falling short-term rates Credit quality in portfolio remains strong and impairment history demonstrates the portfolio is performing as expected ► Modest average credit-related impairments of 7 bps over the last 4 years, below our pricing assumption Investment Portfolio by NAIC Designation1 1GAAP Fair Values as of 12/31/2022 (ex. portion of deferred annuities to Kubera Somerset and Aspida Re) 2Other consists of ICOLI, FHLB stock, LIHTC, Options and Private Origination Equity Tranches Investment Portfolio by Asset Class1 28% Corporates 23% Structured Securities 16% Private Origination 11% Mortgage Loans 5% Alternatives (LP) 4% Municipal 3% Pfd/Hybrid 3% EMD 2% Other 1% Cash 4% Gov't & Treasury 56% NAIC 1 27% NAIC 2 3% NAIC 3 1% NAIC 4 0% NAIC 5 & 6 5% LP 3% Other 5% Cash $39B $39B 2 2
Our Investment Portfolio Key Attributes F&G Investor Update | Winter 2022 15 Structured Credit Portfolio1,2 ► Core fixed income: Focus remains high grade public and private securities with strong risk adjusted returns ► Structured credit: Provides access to well diversified, high quality assets across CLOs, CMBS and ABS ► Mortgage loans: Superior loss-adjusted performance relative to similar rated corporates ► Direct Origination: Diversified private credit exposure to a wide spectrum of underlying collateral Investment Rationale Fixed Income1,2 (ex Structured, Mtg. Loan & Private Origination) 1GAAP Fair Values as of 12/31/2022 (ex. portion of deferred annuities to Kubera Somerset and Aspida Re) 2Excludes $5B of alternatives/equity, FHLB, call options, and cash $8B Mortgage Loan Portfolio1,2 $4B Private Origination Portfolio1,2 $6B 66% Corporates 9% Pfd/Hybrid 7% EMD 9% Municipal 9% Gov't & Treasury $16B 39% CLO 34% CMBS 13% ABS 13% Non Agency RMBS 1% Agency RMBS 45% Corporate Lending 26% Asset Backed & Consumer Loans 26% Private Specialty Finance 3% Triple Net Lease 51% Residential 24% Multifamily 11% Industrial 8% Office 2% Retail 2% Student Housing 2% Other
247 551 345 142 138 2020 2021 2022 4Q21 4Q22 Significant Income & Expense Items ANE ex Significant Items 27.3 31.9 40.1 35.7 42.6 2020 2021 2022 4Q21 4Q22 F&G Investor Update | Winter 2022 16 F&G’s Track Record of Disciplined & Profitable Growth Total Gross Sales ($B) Average Assets Under Management (AAUM) ($B) Ending AUM 28.6 36.5 43.6 36.5 43.6 Return on Assets (ROA) – (YTD in bps) 90 173 86 173 86 Adjusted Net Earnings 247 551 345 142 138 Alts Short-term MTM (Actual) – ($M) (23) 359 100 118 34 Alts Long-term Return (Expected) – ($M) 27 169 265 66 91 All Other Significant Income & Expense Items 68 64 85 3 70 Adjusted Net Earnings ($M) Net Sales 4.5 8.7 9.0 2.0 1.9 4.3 6.1 8.5 1.4 2.5 0.2 3.5 2.8 0.8 0.2 4.5 9.6 11.3 2.2 2.7 2020 2021 2022 4Q21 4Q22 Institutional Retail +23% VPY +19% VPY 1CAGR reflects 2020-2022 annual periods 58% CAGR1 21% CAGR1
4.3 6.1 8.5 1.4 2.5 0.2 3.5 2.8 0.8 0.2 4.5 9.6 11.3 2.2 2.7 2020 2021 2022 4Q21 4Q22 Institutional Retail F&G Investor Update | Winter 2022 17 Our Proven Track Record: Sales 1CAGR reflects 2020-2022 annual periods Gross Sales Growth ($B) Gross sales reflect diversified growth strategy; sales volumes effectively managed within profitability & capital targets ► Transformed from previously ‘monoline’ business into well- diversified and leading provider in Retail and Institutional markets ► Record annual gross sales in 2022; strong growth of 18% vs. 2021, driven by ongoing agent channel growth, bank and broker dealer expansion and institutional markets ► Net sales reflect third party flow reinsurance; increased from 50% to 75% of multiyear guaranteed annuity sales to Aspida Re effective September 1, 2022 ► Ending assets under management at $43.6B, driven primarily by net new business flowsNet Sales 4.5 8.7 9.0 2.0 1.9 AUM 28.6 36.5 43.6 36.5 43.6 +23% VPY 58% CAGR1
247 551 345 142 138 2020 2021 2022 4Q21 4Q22 Significant Income & Expense Items ANE ex Significant Items F&G Investor Update | Winter 2022 18 Our Proven Track Record: Adjusted Net Earnings 1Excluding discontinued operations Adjusted Net Earnings (ANE) ($M) Net Income1 (39) 857 481 121 (100) AUM 28.6 36.5 43.6 36.5 43.6 AAUM ($B) 27.3 31.9 40.1 35.7 42.6 Adj. ROA (bps) 90 173 86 173 86 Adj. ROE 15% 17% 8% 17% 8% F&G expects steady and growing earnings over time, excluding significant income and expense items ► Effective 3Q22, we have updated our definition for adjusted net earnings or “ANE” to remove the prior normalization of alternative investment portfolio returns; prior periods are shown on a comparable basis ► Going forward, this will result in more volatility for adjusted net earnings although underlying economics have not changed
F&G Investor Update | Winter 2022 19 Scalable Return on Asset Model – FY2022 Illustrated 1See discussion of significant income and expense items in the Appendix 2Adjusted return on assets (ROA) in bps as reported, including short-term mark-to-market effects. 3Overall Product margin = portfolio earned yield – cost of funds 413 bps 238 bps 89 bps 86 bps1,2 Portfolio Earned Yield Cost of Funds Expenses (Operating, Interest & Taxes) Adjusted Net Earnings Unique Investment Capabilities Attractively Priced Liabilities Scalable Operating Platform Strong Earnings Growth Potential Overall Product Margin3: 1.75% 1 2 3 4$1,655M $955M $355M $345M 1 2 3 4 As a rule of thumb, target ROA of 100 bps, excluding short-term mark-to-market effects
F&G Investor Update | Winter 2022 20 Our Proven Track Record: Stable and Strong Capital Profile Stable and Strong GAAP Capital ProfileSolid F&G capitalization; executing on plan ► 4Q22 capital markets highlights, as planned: ► $550M drawn on new third party senior unsecured revolving credit facility (RCF); partial $35M paydown in January 2023 and expect to refinance the balance with proceeds from future senior note issuance ► $500M issuance of 7.40% senior unsecured notes due 2028, in January 2023; given a recent development, not reflected in capital position as of December 31, 2022 ► Net proceeds are intended to support the growth of assets under management and future liquidity requirements ► We expect to manage to a ~25% adjusted debt-to- capitalization ratio long term target, in line with ratings 2,877 3,751 4,619 4,619 550 950 1,100 1,565 3,427 4,701 5,719 6,184 2020 2021 2022 Pro Forma 2022 Debt Equity (ex AOCI) Adj. Debt to Capital % 16% 20% 19% 25% GAAP Capitalization ex AOCI1 ($M) Reflects Jan 2023 net debt proceeds 1Accumulated other comprehensive income (AOCI)
F&G Investor Update | Winter 2022 21 Our Strong Capitalization Supports Growth & Distributable Cash We have reached an inflection point to start distributing a portion of our adjusted net earnings to our shareholders over time; F&G’s board of directors has approved an initial common dividend program of approximately $100M per year, commencing in 2023 ► F&G’s capital allocation priorities will be focused on deploying capital to best maximize shareholder value through both continued investment in our business and generation of distributable cash for return of capital to shareholders ► F&G will have flexibility to adjust the level of retained sales as a “lever” to support net cash from operations with sustained asset growth Investing for Growth Reinvest in the Business Capital and other investments to support the growth strategy and maintain adequate capital buffer Net Cash from Operations Return to Shareholders Common Dividend Payout Upon board approval, potential for targeted increases to common dividend over time ► Maintain efficient capital structure ► Target long-term debt-to-total capitalization excl. AOCI of approximately 25% ► Maintain solvency and capital targets in line with ratings
Appendix F&G Investor Update | Winter 2022 22
$35.72 $38.18 $35.20 $36.66 2.74 (0.28) (2.78) 1.46 2021 ANE Other 2022 Before Capital & MTM Net Debt Conversion Common Dividend 2022 Before MTM MTM Movements 2022 ► Underlying business fundamentals deliver solid BVPS growth of 7%, before capital actions & mark-to- market movement ► Capital actions primarily reflect conversion of intercompany loan to equity before partial spinoff, as well as common dividend ► Mark-to-market movements are point in time Book Value Per Share Rollforward F&G Investor Update | Winter 2022 23 1Accumulated other comprehensive income (AOCI) Equity ex AOCI1 ($M): 3,751 345 (36) 4,060 400 (25) 4,435 184 4,619 Book Value Per Share ex AOCI1 – 12/31/2021 to 12/31/2022 Underlying Business Performance: + $2.46 or 7% Capital Actions: ($2.98) Market Movements (0.20)
F&G Investor Update | Winter 2022 24 Reconciliation Of GAAP To Adjusted Net Earnings Period Ended December 31, 2022 ($M) 4Q22 FY2022 Net earnings (loss) from continuing operations ($100) $481 Recognized (gains) and losses, net 136 117 Indexed product related derivatives 212 (354) Purchase price amortization 5 21 Transaction costs 2 10 Amortization of actuarial intangibles and SOP 03-1 reserve offset on non-GAAP adjustments (81) 6 Income taxes on non-GAAP adjustments (36) 64 Adjusted net earnings $138 $345 ► FY2022 GAAP net earnings from continuing operations of $481M includes asymmetry in accounting for assets and liabilities, which are primarily mark-to-market related and excluded from adjusted net earnings: ► $117M recognized gains and losses, net − The impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations, and − The effect of changes in fair value of the reinsurance related embedded derivative ► ($354M) indexed product related derivatives − Liability mark-to-market impacts and related economic assumption review updates due to FIA related and embedded derivative market movements pursuant to FAS 133 − Does not represent options or derivative instruments ► $21M purchase price amortization − The impacts related to the amortization of certain intangibles recognized as a result of acquisition activities ► $10M transaction costs − The impacts related to acquisition, integration and merger related items ► $6M amortization of actuarial intangibles and SOP 03-1 reserve offset on above non-GAAP adjustments ► $64M income taxes on above non-GAAP adjustments and $22M tax valuation allowance 4Q22 GAAP net loss of ($100M) prior to non-GAAP adjustments, due to mark-to-market and related economic assumption review updates
Period from January 1 to May 31, Period from June 1 to December 31, Year ended December 31, Year ended December 31, Three months ended December 31, 2020 2020 2021 2022 2021 2022 Predecessor Net earnings (loss) from continuing operations ($200) $161 $857 $481 $121 ($100) Less preferred stock dividend (8) — — — — — Net earnings (loss) from continuing operations attributable to common shareholders ($208) $161 $857 $481 $121 ($100) Non-GAAP adjustments (a): Recognized (gains) and losses, net Net realized and unrealized (gains) losses on fixed maturity available-for-sale securities, equity securities and other invested assets 121 (176) (56) 446 2 110 Change in allowance for expected credit losses 23 40 (5) 24 — 11 Change in fair value of reinsurance related embedded derivatives (19) 53 (34) (352) (11) 5 Change in fair value of other derivatives and embedded derivatives 1 — (14) (1) (5) 10 Recognized (gains) losses, net 126 (83) (109) 117 (14) 136 Indexed product related derivatives 195 123 (146) (354) 21 212 Purchase price amortization — 16 26 21 6 5 Transaction costs and other non-recurring items (b) 37 21 (279) 10 — 2 Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments (97) 24 123 6 13 (81) Income taxes on non-GAAP adjustments (39) (29) 79 64 (5) (36) Adjusted net earnings (a) $14 $233 $551 $345 $142 $138 F&G Investor Update | Winter 2022 25 Non-GAAP Measure Reconciliations (a) Refer to “Non-GAAP Financial Measures Definitions” (b) For the year ended December 31, 2021, reflects a one-time favorable adjustment to benefits and other changes in policy reserves and depreciation and amortization resulting from an actuarial system conversion which reflects modeling enhancement and other refinements of $284M (Dollars in millions) Reconciliation from Net Earnings (Loss) to Adjusted Net Earnings (Loss) (a)
F&G Investor Update | Winter 2022 26 ANE Results – Significant Income and Expense Items1 ► Adjusted net earnings of $138 million for the three months ended December 31, 2022 included a $34 million recognized gain from alternative investments, a $58 million one-time tax benefit from carryback of capital losses, $12 million from actuarial assumption updates and other items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $91 million. ► Adjusted net earnings of $142 million for the three months ended December 31, 2021 included a $118 million recognized gain from alternative investments and $3 million income of CLO redemption gains of other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $66 million. ► Adjusted net earnings of $345 million for the twelve months ended December 31, 2022 included a $100 million recognized gain from alternative investments, $49 million income from actuarial assumption and reserve updates, $21 million of CLO redemption gains and other income, $20 million of net income tax benefits, and $5 million of other net expense items. Alternative investments net investment income based on management’s long- term expected return of approximately 10% was $265 million. ► Adjusted net earnings of $551 million for the twelve months ended December 31, 2021 included a $359 million recognized gain from alternative investments, $46 million of CLO redemption gains and other income, $10 million income from net favorable mortality experience and other reserve changes, and $8 million income from actuarial intangibles unlocking. Alternative investments net investment income based on management’s long- term expected return of approximately 10% was $169 million. ► Adjusted net earnings of $233 million for the seven months ended December 31, 2020 is comprised of $14 million income from net favorable mortality experience and other reserve changes and $70 million income of other net favorable items, primarily related to a favorable income tax benefit. ► Adjusted net earnings of $14 million for the predecessor five months ended May 31, 2020 is comprised of ($16) million primarily from tax valuation allowance expense, and alternative investments net investment loss of ($23) million. Alternative investments net investment income based on management’s long-term expected return of approximately 11% was $27 million. 1Refer to “Non-GAAP Financial Measures Definitions”
F&G Investor Update | Winter 2022 27 Non-GAAP Measures and Definitions DEFINITIONS The following represents the definitions of non-GAAP measures used by the Company. Adjusted Net Earnings Adjusted net earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations to eliminate: i. Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effect of changes in fair value of the reinsurance related embedded derivative; ii. Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; iii. Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (“VODA”)) recognized as a result of acquisition activities; iv. Transaction costs: the impacts related to acquisition, integration and merger related items; v. Other “non-recurring,” “infrequent” or “unusual items”: Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years; vi. Amortization of actuarial intangibles and SOP 03-1 reserve offset: The intangibles amortization and SOP 03-1 change offsets related to the above mentioned adjustments; and vii. Income taxes: the income tax impact related to the above mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.
F&G Investor Update | Winter 2022 28 Non-GAAP Measures and Definitions (continued) Adjusted Net Earnings per Common Share Adjusted net earnings per common share is calculated as adjusted net earnings divided by the weighted-average common shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Adjusted Net Earnings per Diluted Share Adjusted net earnings per diluted share is calculated as adjusted net earnings divided by the weighted-average diluted shares outstanding. Management considers this non-GAAP financial measure to be useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Adjusted Return on Assets (ROA) Adjusted return on assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM. Adjusted Return on Average Equity excluding AOCI (Adj. ROE) Adjusted return on average equity is calculated by dividing annualized adjusted earnings (loss), by total average equity excluding AOCI. Average equity excluding AOCI for the twelve months rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level return driven by the Company's adjusted earnings (loss).
F&G Investor Update | Winter 2022 29 Non-GAAP Measures and Definitions (continued) Assets Under Management (AUM) AUM uses the following components: i. total invested assets at amortized cost, excluding derivatives, net of reinsurance qualifying for risk transfer in accordance with GAAP; ii. related party loans and investments; iii. accrued investment income; iv. the net payable/receivable for the purchase/sale of investments, and v. cash and cash equivalents excluding derivative collateral at end of the period Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Average Assets Under Management (AAUM) AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment. Book Value per Share (including and excluding AOCI) Book value per share including and excluding AOCI is calculated as total equity (or total equity excluding AOCI) divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company. Debt-to-Capital ratio excluding AOCI Debt-to-capital ratio excluding AOCI is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.
F&G Investor Update | Winter 2022 30 Non-GAAP Measures and Definitions (continued) Return on Average Equity Return on average equity is calculated by dividing the rolling four quarters net earnings (loss), by total average equity. Average equity for the twelve months rolling period, is the simple average of 5 points throughout the period. Management considers this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Return on Average Equity excluding AOCI Return on average equity excluding AOCI is calculated by dividing the rolling four quarters net earnings (loss), by total average equity excluding AOCI. Average equity excluding AOCI for the twelve months rolling period is the average of 5 points throughout the period. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, management considers this non-GAAP financial measure to be a useful internally and for investors and analysts to assess the level of return driven by the Company that is available to common shareholders. Sales Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition. Total Capitalization excluding AOCI Total Capitalization excluding AOCI is based on Total Equity and the aggregate principal amount of debt and Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.
F&G Investor Update | Winter 2022 31 Non-GAAP Measures and Definitions (continued) Total Debt-to-Capitalization excluding AOCI Debt-to-capital ratio excluding AOCI is computed by dividing total aggregate principal amount of debt by total capitalization (total debt plus total equity excluding AOCI). Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position. Total Equity excluding AOCI Total Equity excluding AOCI is based on Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on Total Equity. Yield on AAUM Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.