FG - Earnings call 4 2023 | F&G Annuities & Life, Inc.

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Operator

Good morning, and welcome to F&G's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Lisa Foxworthy-Parker, Senior Vice President, Investor and External Relations. Please go ahead.

Lisa Foxworthy-Parker

Thanks, operator, and welcome, everyone.

Joining me today are Chris Blunt, Chief Executive Officer; and Wendy Young, Chief Financial Officer. which addressing include following under forward-looking Securities Reform to earnings prepared the forward future Litigation may guarantee call statements Act, look your performance. our questions remarks. Today's Private events We or not do and projections any events We subsequent or update new changes in strategy. to such do duty revise to statements not reflect undertake or information, also Please of differ could discussion that results to non-GAAP the materially implied. This refer those includes cause meaningful to or our most that may recent SEC measures factors filings for a expressed from we discussion financial be investors. actual morning's believe to measures where all is for and will SEC financial with Non-GAAP the which reconciled webcast been earnings and being recorded replay supplement have on to call of required, in release, website. Today's available our within GAAP, be are accordance fglife.com. presentation, at investor available rules company's replay It today will beginning at X:XX through be available also telephone p.m. to call Chris Eastern Blunt. I'll turn Time the XX, now through our CEO, XXXX. And over February

Christopher Blunt

fourth to Good morning, everyone. our Thanks full us for discuss results. year quarter joining and

numerous support parent annuity XXXX highest worth well in among to providers being to our reviewing highlighting. with New my express and you achievements one. best of XX% been customers for over was the to On partial listed resulted progress our to Exchange. you of on In short, satisfaction was the F&G by share interest, completed the spin-off over like I'd for U.S. retaining company and last for F&G the work #X year. hard whose majority the start all employees their Thank like to first York J.D. year with appreciation years company, in our of our partners by public our Since to December a the a then, its and as accomplishments made last I'd year. as throughout many year. F&G, the FNF, like one we've successful Stock quarter, Before XXXX, ranked feedback X, has FNF very customer recognizing lastly, our Power. And I'd their

First, retail our our of the all sales in hitting our multichannel billion of with in and generate to and annual our is $X billion gross double-digit agent, of the demonstrates sustainable and provided of that were range prior end generated to reported October distribution of transfer FHLB billion the risk our continue pension growing we sales XXXX, well cylinders pension $XX and a on Investor Day clip. This retail the broker-dealer funding of year, asset billion bank through $X strength which gross platform sales transfer billion of top record $XX We growth. channels. and exceeded gross agreements. XX% $XX.X line goal businesses $XX sales of risk up in billion over at

the increased provides expanded capacity. business additional to of from new XXXX record had The AUM ceded Net during of our $X X of and also counterparty to net while billion successfully which billion, the $XX.X flow and X months. to XX% our XX net $X a reinsurance of which XX% net the and annual net expected. F&G diversification higher retained F&G. We've in-force accretive is the second in-force MYGA of managed allocating reinsurance cumulative retention an steady returns has flow with retained reinsurance of cash sales percentage prior as stable approximately to We to and in our has new ceded. A by December and adjusting flow profitably well earnings sales performance highlight established management was profitable requirement billion retained high-quality sales for record $X year a billion lower provides partners, debt flow AUM This area has billion fee-based to capital enhances from the capital over capital reinsurance, resulting XX% business, $X.X at proceeds billion over third-party to highest to assets in grow XXXX, last sales flows, the under predictable before of needed increase line reflect returning grown been threshold and $XX.X targets. above in and generates new was business of driven the flow business XX. of book.

volatile While from the that book in-force superior we XXXX, benefited markets through were foundation our provides.

issues. liability legacy no has book our Importantly,

XXXX, positive and returns of immediate funding portfolio very our nonsurrenderable, clean for charge annuities XX% credit our and value also and strong enhanced the continually In we quality and to the adjustments. We uncertainty. on market investment portfolio. continuing over in in are third achievement the derisk our to light protection our portfolio net and was annuities has portfolio in to executing months while by liability dislocations return market further matched and Wendy the pension We Our are XXXX of inflows XX outstanding is to well of performance provide risk-adjusted surrender ongoing evaluate insights and agreements, subject current in opportunities our market risk the a investment downside that environment allocation profile. retail our environment improving dynamic upside, stable macro area protected, and of transfer last generated trends will in minutes. A fixed been our XX% surrender few

partner, We agreement with a Blackstone. new also our successfully fee negotiated

lower fixed points portfolio. is X and hold in sectors our XXXX, assets. At and in XXXX. quarter floating X.XX% below This fourth fixed on yield, pricing as XXXX, X.XX% expanded the with We to office assumptions. to investment upside quarter grade. During being variable exposure Credit-related compared the our X commercial of reflects has the years, investments our alternative from yields quality, significantly low, remained past to CML fourth XX% estate over year-end the averaging of and real in excluding rate maturities investment income well the portfolio impairments volatility higher income new high basis investment

in originally table by billion and the off $X downside for approximately floating rate what our in. margin Given to took of billion X our X locking of $XX economic hedging an was next about portfolio, to the rates some XX potential yield ahead, of the years. risk in above lower asset we investment translates interest XXX slowdown years the points priced points incremental pricing basis annual over basis beyond This incremental approximately

$X.XX our growth capital and first a we planned drive have self-funded confirmed balance that prepared allocation expect our to generation, increase highlight per action given $XXX We launch we the of a [indiscernible] portfolio withstand public hedging to and to strength management of to economy. A downturn sharp on capital rate programs common the and year to from area market debt. increased we've advantage a positioned assets XXXX centers company, $X.XX where reinsurance repurchase continue opportunity. capture in is well to is share million, sheet capital the X% our evaluate our well to stress and our has possible. Also, portfolio were growth fourth senior assumes once in conservative take locations. And additional In through and F&G its and issuance our which in-force beneficial annual is floating our to no new share allocated annual refreshed dividend program to again and test, as

provide AX Our excellent us our organic These rating through A Best flexibility. strategic commitment Moody's third-party to time was upgrades recognition strong X further achieving progress, upgrades upgrades by and recognized or in A.M. greater last to support ratings July. and growth ratings to of by over and month give

market is the confidence FNF's assets compelling grow further distribution Another under million strategy. of final in that convertible given retained investment own mandatory came vote our last management, stock highlight exists. A I'd area F&G opportunity to from $XXX preferred month like to that

strengthens As acquired $XXX ownership provider we for broker-dealer of cumulative in key products a our financial ownership and for cost as fifth and of a to XX% us institutions earnings with of above a higher majority marginal community be is a key company. public date first Investor is well capital, stake providing and at a with a distribution be wholesaler in transaction F&G F&G to year In providing and from the and accretive in said as for margins This XXXX terms partners. our year partners capital expected our further distribution to uniquely of ROE. Overall, execution is XXXX, was January our million. Own million. lower largest stakes, to deployed our to life approximately Day, brings as annuity us our relationships which positioned an to capital big stream $XXX

reported For adjusted points, delivered generated the full we A&E ROE and XXX adjusted significant in basis items, an of year excluding XX%. excess which and we ROA million, $XXX of of an

to the during We end utilization the has to time continue the from F&G's of on $X.X plans in Investor December spin-off approximately investors XXXX billion $X.X than doubled more and our at execute partial we at XXXX. success, recognize pleased billion to outlined see of the are Day

of asset in plenty deliver ahead margin margin to Looking growth have to transfer expansion benefits and strategies pension accretive risk momentum and scale ongoing growth opportunities, continue we fee-based investment to from from enhanced from earnings operational flow retail, reinsurance. XXXX, our sustainable

of F&G market strategies. I'm our owned our strong to that distribution business also diversify insurance well accomplishments earnings develop continue continued has that culture allowed through exceptional value strong and to recruit strategic created, to talent. execution positioned the confident our of are given of life shareholder We we've growth and middle and our the generate us priorities of very and proud which will because

year to Wendy and further details quarter to financial turn highlights. F&G's now over Let fourth me on full the provide call

Wendy Young

Thanks, Chris.

million We and performance $X.XX $XXX with $XXX $X.XX share return maintain or earnings million XX% $X.XX we income Adjusted full investment on share significant per share other Alternative financial included expected $XX full was return and XXXX million or $XXX approximately or per items. earnings to $X.XX overall per per items. $X.XX capitalization and share or per and share are investments, from for long-term XXXX growth were significant expense other the share. Adjusted of based $XX execute per approximately the $XXX year $X.XX the continue income of of $XXX or investment $XXX strategy. of were for was million alternative XX% year, share. million Alternative financial long-term investments or investment or income and $X.XX management's or alternative and to on million of flexibility million expected year $X.XX strong of from share net for F&G's based our pleased income income included full management's investments investments, per successfully net per investment million

asset our these by earnings expense from planned up expansion above For significant with costs basis forecast XXXX activity in basis offset our $XXX for platform. Adjusted in reflect full to an net year our investments reinsurance continued higher full points year XXX and partially with comparison, and return in interest in points prior fees and in were point increase growth year market assets was basis in operating both margin million periods, capital flow in in line in items XXX $XXX in full and and XXXX, million XXX adjusting operating assets due product line sales XXXX, accretive growth, year. the XX% on adjusted and

Excluding equity, significant XX.X% approximately in on as X.X% items, in excluding AOCI, XXXX. to adjusted compared was return XXXX

asset onetime $X.XX on and million income share. $X.XX XX% long-term onetime XX% million Alternative of $XX Next, net from Adjusted $X.XX the Alternative $X.XX comprised per were fourth turning significant investment expected quarter. significant return investment a $XXX $X.XX per million expense alternative earnings for $XXX capital income $X income share $XX or net management's or of income million million of $XX $XXX of and share quarter results management's per $X.XX $X.XX for losses. share share or long-term $XX share quarter return per $XXX included industry the earnings or XXXX on based of $XX XXXX or from and or and investment was of assumption impairment was actuarial of or from update fixed unfavorable the per for of or were based investments and tax expected income $X.XX per other share. Adjusted million million carryback million million investment benefit to and of investments, approximately per for alternative approximately included investments items the fourth per million of share charge.

and to adjusting planned accretive our which in by interest more in comparison, growth continued net X% XXXX activity and both $XXX were inherent in and than were line of the earnings precipitous flow XXXX fourth and quarter higher investments with in reinsurance million product due market adjusted pricing between and expansion our these For the reflect timing items to periods, sales operating quarter costs XXXX, our $XXX of platform. in margin decline actions offset and for fees, in expense modest in from million rates assets lag fourth operating the capital fourth significant due down higher in quarter

year. net XXXX a adjusted $XXX We $XX in the the and income excluded not mark-to-market short-term GAAP quarter a which loss movement, result net of view full earnings. million Turning accounting-driven in mark-to-market reported is on fourth net million net economic. basis. unfavorable in by driven time, is XXXX This reported loss movements to and for point as primarily from We

losses saw over From year. provide and we Given levers recap, adequate liquidity the contractual retention value successive set expansion liquidity perspective builds expect our fixed which to in levers, not towards of from at quarter, earnings outflows corporate on to and additional to volatility on that MYGA some our the we progress needs. To in asset realize margin growth, despite and perspective demonstrates proven our sell do years rate maturity in performance, securities earnings full creation annuities, encountered year our like track record origination. nonetheless, meet the date fourth now our XXXX, predictable reinsurance. I'd are past to volatility we from enhanced a this aligned targeted flow

a For industry can hasn't for have surrender expected was This given elevated strong balance and grow exchanges. charge profile. surrenders annuities the in annuity rates policies demand over which which we higher record generated We annual the although liability further both quarterly offset steadily fixed positive new on very by to in seen annuities, our this money given a period, improving inflows. basis. that restart the inflows in their XXXX seen new And year, XXXX, spike to new decade, spur under volumes, consumer indexed account business in-force continues net our surrender

reminder, a the surrenders freed companies earnings insurance typically boost higher charge from fees lapse. for capital policy As F&G, like provide and a from surrender up to the

market time. and we business over are to new That volatility. in-force can pricing managed being expect actively said, targets our of Importantly, maintain pockets

fell a annuities dynamic fourth end managed actively targets. saw experienced for business year the in compression and and were quarter, creating to lock the the of rates rush disciplined as we margin dramatically the the and industry maintain pricing interest to rate rates During some from volatility that rates, through environment strategy. We new consumers crediting

have rates. both the between rate movements renewal expected for no is volatility for in pricing our or we navigated margins. is economics given our these However, timing for annual precipitous change the we And resulting there are in as outlook setting. lags and view remains blip time rate issues. the in-force pricing experience, business This new quarterly XXXX expectation and not actions our a And rapid in long-term unchanged. movement There the our business first

We margin and are rate environments. of our product in positioned interest variety to a sustain economic

peak profitably pricing proven consistent in recent demonstrates the rate record Our any or trough. business grow spread that in we can and maintain environment, whether track and years

provide an distribution own like on to I'd Next, update our strategy.

wholesaler $XXX million increased and January of earlier. million we annuity that Chris throughout Notably, for from $XXX to life ownership XXXX, stake own that million. in $XX in approximately mentioned During excludes XXXX our stakes distribution the this the majority approximately a year closed

enhancements first financial GAAP We performance and provide to time. the quarter our basis, we to reflect higher which over on on of emerging are owned fee-based returns the to for reporting expect supplement a XXXX earnings distribution working

long-term January line million excluding as XX% and XXXX. book stock shares was turning issuance page in outstanding excluding XX. presentation excludes sheet. December per common with an share, of This the in of of million a with December investor of Now value, $XXX There billion as the AOCI, $X.X We with per XX.X% providing is preferred in balance debt-to-capitalization XXX to share. F&G's GAAP ended year analysis or of value XX. a ratio, target $XX.XX our our book our is AOCI,

including senior of million ROA points of basis to to as in or the X support and million we XXXX, years million the in February $XXX was million XX, The line to which issuance $XXX compared or into XX pay million with restated On maturity executed XX on the of with quarter. In $XX fourth adjusted ROA and over issuance interest $XX facility $XXX and paydown. January to basis December as $XXX points XXXX, our in entered markets from extended size the we last in issuances, an agreement, the XXXX, balance increase XXXX, XXXX, X included which amended and capital profile by in to successfully reflects our During an facility X months. million of note and of AUM million, financial commitments adjusted the our credit a revolver partial enhancing a down million activity XXXX, and used growth liquidity proceeds outstanding expected $XXX expense is $XXX thereby November flexibility. a

million Our annualized the roughly approximately of $XXX interest debt $X.X yield on or expense outstanding. billion is X.X% total blended

Xx continue company charge at assets target coverage. invested and cash We holding to fixed

capitalization supports distributable growth both cash. Our strong and

of XXXX, capital $XXX During F&G returned dividends $XX of million million million repurchases. and $XXX share to of including shareholders, common

we under During program year, December X, approximately cost XX million million. of million On dividend share per remaining $XX November $XX stockholders authorization $XX the advantage to we of to shares purchased per dislocation. share as to from the On future $XX.XX. of the payable we at as the expanded program XX The on the XX, take a average share yet of March an XXX,XXX was XX. March repurchased to of market declared capacity $X.XX be record February XXXX, of repurchase

opportunity. AUM, will the As FNF's retained accelerate given current earlier, Chris in growth mentioned the market of recent F&G our investment

shares. company holding support X-X/X% Here's F&G A use the of fund issued a proceeds $XXX FNF preferred our & held the net Directors. declaration dividends proceeds subject F&G XX, top to is of forma its paid common ratio, portion year-end a cumulative investment in on by or stock to the dividends payment cash outstanding, of equity. The would management. be to stock few XXXX XX, If the a $X.XXXX investment XXXX, growth announced AOCI, stock dividend, to will million held converted Board we excluding of XX.X% based of be are on into basis, pro to preferred be debt to under current the cash preferred the convertible On including FNF. share its by conversion which of closing common deferred shares. On capitalization in FNF. F&G the will the either debt a XXXX, per mandatory intends as XXXX, quarterly points. preferred On new our dividend and Life, date can January declared preferred assets be mandatory from until by Annuities dividends February

would we forward, earnings our expect to net report and earnings available to conform common to shareholders net to shareholders. common adjusted earnings presentation available Going

our on moving strong to position. Now statutory capital

XX positioned future growth of our ample debt with well January our As with proceeds primary book for excludes stable our stock operating ratio ended as providing self-fund and to well a RBC December year available an XXXX. F&G XXX% and of approximately FNF positive growing XXX% our buffer value having expected, company the Notably, capital over prior in capacity is the with capital time million target from strong line growth ratio as a risk-based year programs. and the or subsidiary in balance in-force opportunity we reinsurance for preferred and delevers $XXX action estimated sheet capital RBC position, net generation, of level, above investment of its with continued

our to be our and down growth, to debt in expect to XXXX pay the capital revolver maturities. in We fund active markets

also profitable generate more stable $X in-force than in We capital. billion expect to our

to the Chris up. Let turn wrap call me now to over

Christopher Blunt

returns year's growth, real as build positions enhanced power asset to across and have To as momentum successes. Wendy. earnings that we XXXX conclude, upon we enter margin our past Thanks, as well to this us many ongoing expansion strive as improved platform sustainable deliver we

we in a growth tailwind as can our growth Importantly, will I to deliver of we market. and nice that launch month be sales remain growth our enter transfer continue earlier double-digit this RILA XXXX, by retail The optimistic driven to our fast-growing a gross pension sales product large risk and strategies.

a billion product and record to In it forecasted take and meet the uniquely this year, between gain offering We though time sales is $XX fact, our ramp industry to past be RILA some in will believe up. we $XX obviously differentiated billion which customers' and level. traction are market needs, is

expansion our earnings reinsurance. from managing organization We enhanced to ongoing and margin fee-based from also margin our expect while flow effectively operating time investment accretive over opportunities, driving deliver expenses scaling

have XXX goal have to of therefore, basis historically an significant points been and, of Investor We we of as a adjusted excluding items delivering spoken the Day. XXX during ROA, points, our baseline new basis exceeding which reset

to additional excluding increase an XX of points distribution core points medium adjusted margin margin own to expect We basis expansion items X to baseline over ROA, to expansion XX XX deliver our basis and of the term. significant

XXX basis to XXX of time also ROE, We that adjusted same and expect achieve AOCI, items excluding points expansion to horizon. over significant to

as on to own our continue execute we our we enhance diversify Lastly, power and earnings strategy. distribution

Our cost higher ownership of a stream a our expect time. to returns to margin over we which at capital, lower be stakes generate accretive earnings

could I the we concludes us As in not prepared of tell, with front be opportunities our we have more XXXX. This remarks. can as excited entered you

So let for now to turn questions. me back our call operator the

Operator

from [Operator John comes Our first Instructions] Barnidge with Piper question Sandler.

John Barnidge

costs for product, total that? and RILA the talk view new then needed how addressable about market ramp, positioning and can you maybe distributions you The

Christopher Blunt

to. happy John, this Yes, is Chris.

So this. yes, about really we're really, excited

category put probably think, or surface. heard to the the about, in last me you think one of categories year. it before, scratching it's in fastest-growing sales I billion just perspective, is But $XX as just annuities the fastest-growing since I So say RILA RILA of

that as I now with compete know, think you a product which, is this to starts funds, marketplace. trillion $X is very mutual actively a

So psyched we're it. really about

we fact, this contracts our few first RILA in In got week.

have well excited side take our about we're various frankly, individual approved to on get Obviously, this but shelves, on broker-dealer think We and, something really time agents is us. distribution the for milestone positioned. big a really it's So that clients it'll asking been we're for.

So pumped. we're pretty

John Barnidge

impact to out any that? go-forward charge, The there actuarial earnings is of

Christopher Blunt

one? do you to want that take Wendy,

Wendy Young

the every year MRB the But little the where significant around this MRB. for reserve that John. will impact benefit reserve expect will changes but this withdrawal Again, impacts more bit don't tables happen that changes how the time. significantly. will get over any Thanks, actuarial the current that old it than I is to No, expect the Sure. I fluctuate guaranteed so don't regime, a this updated same charge --

Operator

Jon comes Stephens. with question next The Bass from

Jonathan Bass

could latest we considering get I capital moving your dividend. parts, a preferred on common there thoughts Maybe allocation? are know and now the few

You been talked also have remaining you've a active buyback. you've with authorization of our to, on recent lot quarters in And also strategy. the own distribution

you your if just guys all maybe of So could give view it? on

Christopher Blunt

in just start. is sure Wendy we're #X our in for I'll chime is Yes, well. a management. going right priority products. to fantastic is I'm retained quite robust. environment to I want assets mean Demand as But now under

I we're to pleased sales. returns new we're with accretive flow expand priority reinsurance overall is be gross really on continue new to in fund We're that business returns right think would sales the to now. just to Having getting. allows and the getting first us place

So say priority I would that is #X.

to want and we to strong and able do we've to pay For a obviously, us, that. dividend continue been common growing

some distribution opportunities think us. there for be opportunistically acquisition will I own

change and largest that assets debt under saw but $XXX space. Obviously, now think don't the how is distribution capital. I to capital speak allocating cost management brings annual of own dividend, million to to the the about or the preferred what invested we You in deal, just we dramatically cost Wendy can which of did that's our going think about us

been Fortunately, doing the well. stock has

market in should have think add but there there's really I some authorization, that's want pretty that. don't a know, place disruptions. I So to buyback be to Wendy, if you dramatic anything we

Wendy Young

you hit on No, all key the points.

Jonathan Bass

any commentary you guys us or as the market some changes maybe it? for you the reinsurance then economics to XXXX? anticipating Are see maybe outlook there And Okay. you're could reinsurance give on significant

Christopher Blunt

Wendy, why don't you start?

Wendy Young

Sure. in don't Thanks. outlook. significant see any I changes

we get to that as potential retained by and AUM. Chris grow continue said, partners. But sales want to approached We

rates and too I'm the see in 'XX. the to on go So 'XX, we into in not where market go depending head expand from much interest there. differences us But we as expecting could

Operator

[Operator Mark Hughes Instructions] Our Truist next question from Securities. with comes

Mark Hughes

a Where double do year? on lot management guidance up new will think the you end given assets under You've digits. sales of

billion You've generation internally. capital in got $X

in lot a debt obviously, got, You've terms capital. of

$X you you billion grow kind given here, to up? sheet just sales I your you given Any anticipate management. rough think, under you $X mentioned need assets thoughts AUM to balance about think will of where of billion where the opportunity end net

Christopher Blunt

bread crumbs think little and some maybe the drop line maybe I Wendy is But provide probably specifics yes, could more a that. around I'll top environment Sure. fantastic.

saw did past billion in I you gross So sales. this sales. $XX of we say, net year, billion $X-and-change to want

So from FNF helpful. obviously, infusion the capital is

publicly, at healthy we've think better to grow can So obviously years continue we said we pace. We've line in still a that past. top double-digit done than

we there. a retain higher think now I can given what's level

assets despite my in I years. at that X last doubled is the net sales, we've our think in add can traditional a that's barometer the if you the look growth guess still pretty decent for fact we what

yes, well, we hoopla about, really a feel are way up. lot surrenders There's been inflows it. of are about So but good up,

with surrendering we're with bank, a we're And but profile someone's booking improving unlike someone brand-new odd, so contract of surrender risk a sounds the contract I bringing generally, a a then And charge, small liabilities. charge. Ironically, a surrender know actually charge. but a surrender brand-new old it profit in when very paying our a

So Yes, pattern changes there's our bit, you little don't unusual sales. I kind net any give if precise up Wendy, but there. it know, of a materially can of more it's scenario. think surrenders I are an don't

Wendy Young

Yes.

the every business us $XXX of about billion said you we So million. Mark, retained dollars in what think cost if about past,

on So you million can can our possibly that do retained. math $XXX what the do net to increasing

Mark Hughes

lately lot still good to bogey? better XX% that a we is about hit like with the the that? markets. return, assumption? Okay. of should think likely obviously, there's that been It a return you more been assumption The How Are that's about challenging market equity seems volatility

Christopher Blunt

that sitting at I We've I something a mean realizations better expectation. dry in to same in be yes, equity opportunity to anything number. debate just want forward, it again, right going still would we're Yes. lot with on I opportunities. happened think the to particularly lot more has comfortably see traditionally number. say we would this Obviously, But very private you're very had think the could of way. that We look because But a think and done I than there's going regular comfortable that. I move a volatility in of return very are cause robust in But terms basis. is estate, is don't a off us real do what to selectively powder of attractive on down. probably long-term

Mark Hughes

can million of you terms deal parameters around the you EBITDA, And valuation did earnings contribution. then PE expected in in share January, anything $XXX

you've you of think if expand, could some I that great. that, be would on but touched

Christopher Blunt

Yes. sure. Yes,

start which the one, retain not daily equal, it highest better return level, an least come if just than I'll playbook, assets running to with which is, to it So using is at our at expectation under has management.

look then of intensive. that's capital high most which And right? of one, cash we importantly, generally acquisitions intensive, as with they're helpful if looking that are flow not businesses, capital businesses If we're all teens, not are ongoing when not at they're so well. expectations. These in these at particular, heavy so yes, IRRs north or XX% And

we a earnings. get just to that obviously, confidence of us a give time, those into long-term higher know it had for then AUM. And has earnings, of there there's we than get the XX mean investments an many of some hope, importantly, making even years. the Management the that over we will by in teams, strategic benefit. those our I for ones putting we are are multiple So think I most have well. going new these lot a businesses in return and of could consistency that company relationships which we diversification that rewarded believe in But we're is

a something so is relationship further we cementing And just benefit. that think of strategic has lot

Operator

John Our is next follow-up question a Piper by Barnidge with Sandler.

John Barnidge

little the talk talked you of your to floating to line that of about sight of for You of more, options sensitivity other short that the can the the the remains? considering evaluate hedging And end about that. that? curve portfolio the into a portion bit What's and remainder

Christopher Blunt

Yes, XXX%.

insights that we deep fancy traders an to where in just by lot and some given rates Investment but table. start profitability was on. not. exposure rate excess where a floating our which lock take the put what variability ourselves it's Officer had are We a about Chief some interest as rate insight, had good of very don't off going, ability maybe So having I saying think or We

So hedging. assets. we that in substantial cut position half pretty a now floating rate some had doing by We've by more effectively than

saw you the outperformance. commentary of in think points basis in approximately XXX we locked I

risk would the how and we table. be when the I consistent with about take opportunities is some just world, to it's So greedy, think have you off say, don't which

How So exposure. spot open down. for expect back to the bit kind a what's for come knows more landing down the of in it's your It's ultimate near to of But question continue more. floating an at stability We're march would point, to there. of down, see going rate look, I on a going term, come nobody when. to you going forward and part exactly go do much let's some rates our choice this is was going

Operator

session. and you you, our presentation, for has conference today's question-and-answer will attending concluded. the and Thank call this conclude Thank

lines. disconnect You may now your

F&G Annuities & Life (FG) 22 Feb 242023 Q4 Earnings call transcript