FG - Earnings call transcript Q2 2024 | F&G Annuities & Life, Inc.

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Operator

Good morning, and welcome to the F&G's Second Quarter Earnings Conference Call. [Operator Instructions] And as a reminder, this conference call is being recorded.

I would now like to turn the call over to Lisa Foxworthy-Parker, SVP, Investor and External Relations. Please go ahead.

Lisa Foxworthy-Parker

Great. everyone. welcome, and operator, Thanks,

in call such Joining which me strategy. not the Wendy any actual refer to Executive a and events or duty Securities statements Today's Blunt, your projections update to statements from materially under performance. the undertake or not are Chief subsequent Financial guarantee for reflect Chris Private earnings to remarks. expressed do Young, prepared forward results most Reform following We Chief include Officer. forward-looking questions and Act, or factors Officer; our Litigation or revise changes Please to filings cause recent our today implied. information, new may to do differ those that SEC We addressing could of events look future discussion

This p.m. believe also presentation, earnings have required we replay August within recorded today on SEC financial also may Non-GAAP available all being measures reconciled call be is rules It be for will in through to morning's that measures includes and investor investors. where financial supplement GAAP with been at be to website. XX, discussion of non-GAAP available accordance available release, meaningful XXXX. telephone Today's are the webcast X:XX will through company's at replay which Eastern and Time fglife.com. beginning our

over call Blunt. Chris CEO, turn our I'll to now the And

Christopher Blunt

We've quarter on morning, another us our Good second record. discuss quarter results. track delivered joining and everyone. Thanks to proven for terrific our continue build to

levers. Day made over delivering year to last months, like we've the performance towards value highlight strong in our the progress last Before creation X over our Investor reviewing the I'd

asset for expansion XXXX, held potential the growth, multiple our October uplift. in upside Day we During margin outlined and Investor from

looked used over X-year performance key a horizon out and as quarter baseline financial in to targets. XXXX illustrate We medium-term of our second the

our and on to cylinders targets. XX we business hitting been last pace the achieve are currently months, our Over has on all

growth. asset with Starting

of driven $XX.X over PRT reinsurance the flow before AUM billion last XX% year, and retail by quarter Second increased sales.

our earlier toward this XX% We before on now accelerate reinsurance investment We growth proceeds from deploy that flow are of at made our to as $XXX the preferred year achieve above a by the net in considered well, to million AUM targeted retained stock FNF the growth target Day. way on well XXXX. our basis as of this we AUM our the level Investor expect time

expense our range multiple both has we on We've adjusted of XX%. and are to range return as earnings strong last from XX% items, points closing Next, expanded Investor is margin quarter, owned expansion. point primarily from significant Adjusted reinsurance the and well XXX-basis targeted as Day and in ROE XXX XXX as management XX% enhanced year basis disciplined This ROA items generated performance baseline flow in on to return toward targeted expanded XXX points. our of our driven distribution. our excluding second equity, excluding assets, accretive margin, we above advance significant basis on This investment the to XX% to from by power expansion. over

uplift. multiple Lastly,

multiple financial from XXXX intrinsic F&G's at trading We a which are Xx and of book line and now of have up multiple we in new improvement in see distribution on we're pleased to approximately strategy. core is reflecting achieve in-force ago fully X great rate market recognition is pace and P/E our from although platform business the potential price, executing was to its as to earnings. targets. of momentum XX. year the on with growing see peers, more stock at in increasing value consensus June This business our earnings multiple Xx own our multiple strategy, for on the growth to continue to rerating well as further not and expansion Overall, yet margin a our We our

XX% pension institutional which surge in of broker-dealer of that from billion billion of second prior the sales retail results $XXX in sales record delivered a topping and included can quarterly $X.X our transfer quarter-to-quarter. quarter record of turning $XXX million we million for channels the billion quarter, sales due sales first first market Record as were level This in Robust the FABN X gross given sales. of of years, bank return for with $X.X to agency to market favorable prior institutional the billion, the to sales, contributed quarter, the market to fluctuate funding Now line by quarter, sales. economic retail industry with the increased and over quarter, year year. risk in is starting conditions. robust million This prior from time. for sales up PRT $XXX annuity record first and year up $X We the year and $X.X agreements driven favorable new to conditions. the the sales XX% more over in continue the half million for $XXX And time

in F&G's year XX% second $X.X billion up retained the quarter, quarter. sales were prior over the

as the a line flow to market reinsurance economics in As manage able are level with up down adjust targets and or of over change. we our reminder, capital time

stable a under or of This XXXX quarter over $X flow $X.X over $XX.X We is flows, billion XX retention reinsurance net proceeds management at driven have billion, assets and business cumulative for approximately the of XX% XX. adjusting billion record in-force second months. AUM new seeded. equity new billion the net profitably of an before grown and last increase and $XX.X retained June business was debt to by

last new for XX,XXX serve every platform well markets. to retirees for advisers as demographic across volatility. products, turning traditional business boomers momentum are an strong could our demand for to large that annuities XX-plus fixed our to demographic alternative rates, guaranteed tailwinds relatively multichannel to very fixed continues higher see investment are given growth interest attractive very and tailwinds day. years long-term as and attractive Demand principal are with sustainable can for deferred market annuity grow that the our a protection growing products solutions as retirement portfolio. and baby as and market and Both retiring plan growth tax We simplicity, seeking XX-XX for as withstand continue people We

funds more trillion and than growth a positioned the by as large strategically their cash money the products life for markets are and on $X sidelines rates remains are market down. to work parked currently beyond of investors start We growing retail money and long-term traditional come expected and in with cash reached targeting market where annuity our sector to have lot putting of money

our year, XXXX. strong in in of look industry annuities surge the higher index-linked in to entered sales near fast-growing registered a fixed continue RILA, products billion generated term as We see through sales annuities. industry market consumers or the this we rates will like in $XX Earlier expect to lock which

market, product of in the uniquely the differentiated relatively is meeting a Our younger demographic. offering needs

We meaningful on focused in are XXXX broker-dealer sales XXXX. onboarding in expect key growth the in towards channel and steady partners

are We big few FIA will potential a as be contributor significant sales expect as next RILA sales our to over grow the years today. to with the

corporate see to pension transfer risk pipeline we Additionally, of with a pension trillion $X.X industry continue funding. near in full plans the at or healthy

F&G investments relationships upmarket to our million strong both competitive portfolio institutional meet to and terrific for distribution needs, for targeted our opportunities positioned potential or and and arise. $X markets new with scalable partners, market well with as Overall, business in has product deal growth as is our across our compete our billion and move $XXX down to including superior and our to size leverage our momentum positioned We more retail designed ecosystem. are strategically comprehensive multichannel consumer platform growth, we

XXXX, That when sales expanding when of cycles. generated rates environment we higher interest generated return and have we in the resiliency were through consistent grew on rates F&G interest importantly, model. success is a managing highs. performs at stable nearly we environment. record were better Most grew and even at In sales of a rate assets track and a well multi-decade assets business low-rate our X. return and stable on XXXX, market In

portfolio. our to investment Turning

fixed of volatility new This upside investment the from excluding was in XX investments. on higher yields basis higher alternative income points and investment XXXX. Our second quarter, reflects than quarter second yield, income variable X.X% the

we X/X forward, rate speak to will floating which income investment our in more less our now make asset of time. susceptible moment. should Wendy a exposure, Going have rates over hedged this lower to

exceptionally investment disruption low Through over impairments bank remains given portfolio from basis being was of interest market The high our X the quality XX% in uptick fixed grade. of credit-related regional below maturities X the Credit-related averaged to the the which pricing. and years, half pandemic, crisis, sharp rates. the XXXX first XXXX during last remained year, with impairments points

is it high in portfolio, real the commercial majority sectors. diversified our estate invested defensive vast Regarding debt quality, with

is with is nearly portfolio loan average of one XX%. debt an loan-to-value coverage book the mortgages mortgage of commercial ratio the next in time Healthy loans XX% XX above X% of and only Our months. maturing for first entirely service

our limited portfolio Regarding managed in the programs office. of the X.X% positioned derisking CMLs perform comprised varying we and a with through to partnerships concentration. below-average total portfolio CMBS, actively sector, only selective conditions. our XX% office well total and have is market in Overall, diversified,

stable liability clean remains our are profile. strategy stable invested matched well allocation asset and and our to Our assets

strategy. our Next, distribution to turning own

approximately multicultural accelerate life ownership and FEG, to Freedom During market IUL XXX%. to of strategically has minority is risk XX% ownership July the and XXXX, underserved needs top rapidly distribution, FEG retirement expanding our stake investment the us those our and sales late of from in XXXX, F&G in IMO first longtime or increased in position stake and FEG expectations. segments. a partner taken partnership its having Equity efforts positioned own joint exceeded F&G growth Group, to was our meet successful in markets a

great meaningfully business our with provides return own retain a believe industry which than earnings, example distribution own distribution strengthens consolidation our we source further uniquely to and generates as with a key is consolidator. and of on partners a partner distribution higher we are of relationships strategy, capital a diversifying positioned underway, FEG risk-adjusted

we EBITDA margin. $XXX to term. $XX invested growth the the from is to already million portfolio million we strategy medium to To meaningful contributor to $XX double-digit have over and Our million, expect XXXX proving annual be be with a overall in date,

has first half for us year another the positioned well in of performance XXXX. strong summary, In

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

We own are strategies. of business the insurance poised distribution given and further life our to our earnings middle-market diversify strong growth

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

Wendy Young

as Starting hedging capital $XXX income. and bond or or gains are alternative share my strong included an from net million or our position. investment separate investments surrender $X.XX million that well flow income in quarter net earnings shareholders share share on annual focus and from million details net from common attributable per I'll strong morning, $X.XX quarter our and of quarter. as update $X.XX and on updates This will the asset third Chris. which and position, our earnings. of program expense per to $X refinements, reduction million per floating comments $XXX or CLO on $XX liquidity experience our and earnings, $X.XX of cash model following: the adjusted Thanks, prepayment review per The for actuarial included rate be the Adjusted second with was assumption share positive performed actuarial also

return investments of $XXX alternative share. based XX% management's on from or expected per million long-term income approximately $X.XX Investment was

adjusted adjusted $XXX increase excluding owned distribution, interest flow XXXX. result reflects asset disciplined in basis on XXX $XXX the million points. accretive last basis market Adjusted margin. assets, of income second as return XXX XXX basis over significant million XX% the from higher the second ROA growth, reinsurance core expense capital of in of XX XXXX and of and brings flow distribution was Excluding the and over quarter, the points points management quarter, a basis This net margin reinsurance second up quarter to activity. second and basis margin, over comprised X were points was items, This points quarter of months our points earnings planned XX items, in up fee owned of XX significant expense diversification basis

quarter, FIA shown deposits new regard as in outpace as FIA we terminations. With value the continued surrenders, over first on second XXXX well our consistent business steady inflows to were $XXX to net Page in positive growth net see presentation. of from with to million the Summer our XX continue investor account quarter

capital funding from older new earnings having boost As and typically business profile. F&G the surrender longer contracts, further and companies reminder, improving that, F&G, immediate a agreements, typically details deployed periods X-, transfer charge a and Fixed surrender rate predictable both in annuities to on release annuities a X- fixed insurance our fees have guaranteed to are for indexed net nonsurrenderable. XX in contractual than and diversified lumpy. pensioners our disclosed from Further supplement. for X-year turn, terminations multi-year the liability the flows are be or in-force book annuities charges provide financial rate Page maturity higher volumes like are quarterly benefits surrender on a can and that

our rate floating to Turning portfolio. asset

billion approximately existing rate floating X/X the assets or to We our preserve assets. on have now of investment hedged $X.X margin

by yield to going over over increased. we was the incremental This of interest Through margin above very incremental increased in earnings to X next hedging, about and exposure points the above forward our pricing. predictability annual rate basis points couple rates floating of approximately beneficial XXX XX have Our as original translates last pricing years. years locking X of XX into investment basis stability

For short the now, of asset objectives current are will we liability most within and net level support term expect remain mature rate floating billion help X the years. management asset to our $X.X around exposure remaining as to

the value our share $XX.XX There common June of turning of as excluding Finally, couple quarter F&G billion share. per to a of per in shares outstanding presentation analysis an with million pages We book $X.X common XXX balance were AOCI investor to ended our are attributable equity of sheet. with XX. providing shareholders,

$X.X June XX, for net partial at and tender to successful increase offer a increased XXXX billion upcoming of reflecting outstanding refinance debt our million maturity. consolidated $XXX Our note the senior

debt excluding XX. Our was to AOCI, ratio, as June capitalization XX.X% of

revert in our the notes to million of ratio XX% this mature target XXXX. once to $XXX of expect long-term We remaining senior

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

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

continued Our to cash investment shareholder returning business, maximize capital capital well through value allocation our priorities, our as shareholders. focused on as deploying in to

scale F&G at self-fund capital our allows in-force us positioned growth market issuances. generate is to well and generation, returns, reinsurance to growth with and attractive capital our

in strong our billion of profitable is from more than For to $X stable capital, book generate a arrangements we the generation range $XXX expected XXXX, and existing capital and in in-force reinsurance have million.

dividend common common which statutory time. shareholders approximately well F&G dividend continues million to sheets, and offshore held Our maintain $XXX strong capitalization and financial of million We flexibility dividend X to with annual the also on stock of capital FNF. as including priorities all balance entities, our our of agencies. and is regulators stringent allocation $XX the support by as rating increase conservatively to expected sustainable annual requirements over our managed the preferred feel our are most our to capital

build on track record. summary, In continue to our we proven

and momentum objectives remain asset good growth executing and We Day retained momentum delivered expansion. margin have We in in strategy driving Investor another are solid our on our and quarter. seeing good achieving we both focused

that Importantly, consistently strong that over concludes to with positioned across margins attractive deliver perform and this we This quarter and prepared remarks. are we expanding can once market again cycles our results time. demonstrates

questions. me operator to Let now back our it turn for

Operator

[Operator John Instructions] our Sandler. today with from come And Barnidge question will first Piper

John Barnidge

Can talk deployment. Freedom XXX% the decision the you additional pipeline to to maybe Group about in ownership increase stake Equity for

in deploying of wood here that capital on owned target the into clearly You of billion lot in amount a time a targets. short chopped $X

Equity Group the and yes, curious So Freedom about additional. for pipeline

Christopher Blunt

represent of like more dominant They for which We One, the chunk of the profitable U.S., Thanks, one the just business. how of partnership positioned. Great. growth, but a earnings in our products, It's us. rapidly. Sure. which in a IUL business. huge say the like sales, have very a very, love I'd is our they're of couple the Yes, John. in been business, things. growth market, just a specifically They position middle markets we the growing the long-standing the really cultural we are

it. about really -- So excited

when the played was out. think would out play the way this I that hope took minority we stake, that it's that the

almost And $XXX owned you're now right, we've deployed distribution. into million

giving making a spread a think to you diversified heard and already contribution meaningful of source earnings. it's Wendy, from I us

pipeline, deal terms specific. it's In of very

billion $X for question think target other the interesting a question. opportunity was the more to deployment. us. there's for for Again, probably a near-term the around do But yes, So opposed But we as opportunities thanks

John Barnidge

answer, My Thanks floating for is that Chris. follow-up on question the rate portfolio.

And You about floating well? maybe the clearly rate X/X. trended earnings to talk as reduced the rates? portion remaining movements sensitivity exposure by is Can in maybe of new your of your you how about the then portfolio money

Christopher Blunt

Yes. Great.

key be mean the -- respect I'd hedging, the here we're I yes, we really to to is with So again, say not greedy. pleased.

So of anticipation X we derisking do portfolio in perspective, portfolio respect We X of credit years. over number portfolio a the the eventually in getting continue only you the just credit to a the rates. close not XX% floaters. our done up or pretty to were a But to we've thing turn same in to last of tighten From with cycle. try

on was Now X. of rates a lot put were that to close ago pretty when years short-term

smart that take at time. an off seemed as to a So call that the rates opportunity like had up But we table. the risk popped

believe down about that to hedged portfolio. of it's we've where the X.X% So I now

to short-term So in interest a drop we've our reduced rates. dramatically here exposure

XXX-basis XX basis seen volatility. to rates corporate couple running drop XX dynamic XX points. don't widen in we're new our you've to point seen think about But basis money the to of if weeks, drop-in again, the would continue be with strong. point portfolio last business. be impact then yes, a probably but points, to Obviously, spreads in basis a theoretically, rates, And really some yield. seen that you So XX of short-term treasury X.X% floaters, overall we've to a X.X only rates respect know, We've I

products frequently. reprice we quite our So

it's in is us, to for market so the is quickly. there and an premiums those opportunity really pretty And the deploy spread

we still. feel about So environment really the good

Operator

And from will our John with Campbell come Stephens. next question

Jonathan Bass

on Jonathan John. for is This

So guys this you different had records quarter. a few

I there. to on want congrats particular. one annuity those records, in So touch sales of

would that's seems on think 'XX the back the in are the still trajectory any trends And half we you that could I there there it obviously. be this maybe direction driving like year? out, is going touched but about But and appreciated. growth of the should how know You of ways continue, provide strength a thinking kind to

Christopher Blunt

Chris. is continues think too. positive. momentum be I'll may This the But Sure. to incredibly here, start, in to want jump I Wendy

So there big rates to of the demand going up dry probably start one now misnomers is going well, and fixed out as moving are annuities. to down for

I the exact with Money points, see trillion talking to my think a in COVID market we're going trillion. post doubled I've fund assets T have opposite. $X to mentioned from $X

So going extremely start when that's think we seeing there's and to massive go cash market think those sitting amount they're X.X to money to a X to and I going products. well core people rate, in our some lock for potentially yields X, look to from in bode

if stay the a in the end demand in traditional more is end bit short yield a the fall stable, curve well. as see steep longer of you Plus, curve positive for

and So on the as -- demographics, that, XX,XXX right? every got day in the boomers of single U.S. retiring then top just You

second outlook the right now. outlook I think yes, for of So the slowing the I see down the for line anything growth demand top year, don't XXXX, demand half

Jonathan Bass

ROA, guys quarter, Day, pressure a clearly like expect follow-up, but Last upwards a the but seen of sustainability. ahead the in a talked talked ahead as seems record Analyst schedule. then running your posted see And you bit you you're the down you've you normalized that, last it Okay. at to to

another you record. quarter, This posted

there So in some things maybe just play. maybe were was that favorable or conservatism conservative

can about rate whether a you moving bit talk quarter. a strength are this thinking lot and forward, environment. metric And So the the I'm depending changes that outlook the you import more to how hoping on

Christopher Blunt

really quarter in just But talk to about of you frame specific Wendy everybody we on where the a presentation of year. continually take be itself. come and Investor we high-level optimizing I'll uplift going seen October couple rates, think we've from. back was I how can rise uplift And of progress specifics again, last And of Yes. short-term uplift, the seen in about were should portion just investment We've the trying Day from to there. the to our the the things. then had of to of We obviously, a floaters. portfolio and portfolio significant the good saw portfolio, some

expenses operating We're to at to pretty been been assets rate, single-digit scale we've doing that. a we've hold committed as expense And healthy our fixed we've getting yet clip. growing and a our

you're that's the balance capturing sheet. a sale flow reinsurance. of a getting amount to amount we're and from it a source as required leverage capital. on relative uplift. When generally see, disproportionate to of then So starting tremendous we We're a reinsurance And take put the of spread

accretive. lastly, And has that's obviously distribution. been So then owned

yes, would are those anticipated. say, clip faster we a things So probably than I at progressing overall,

you than not to So up be third runs get want in Games third few the over a in rather the too by you'd right? down. excited, inning, but

the And one-timers and some then, you of about Wendy, maybe to be there? in do the might talk that want XXX

Wendy Young

Sure. Thanks, Chris.

there. you Page We've quarter, added of I'll we point negatives will quarter-to-quarter, that XX out the to that a even last positive be investor last in some normalize months. get any And of and kind the presentation. noise there'll column So XX

had we materiality the had place into we then prepayments in model quarter, CLO and put some This that a quarter. due additional we to conversion

bit noise very months and a now So at in there. the last XXX, sustainable. XX as that is But of view we

Operator

Wes Research. from Autonomous our with Carmichael come next question And will

Wesley Carmichael

about First the funding in little question a we think quarter. outlook that attractive? the bit issuance for remainder in of about for issuance what more is FABN? how your made And on talk you agreement year Can the market should

Christopher Blunt

come new your money spread. we good seen opportunities was effect that lag statutory affects the that stabilize to could yields cost market there's rates couple and as and down, a in earn saw attractive of you the a where of us were a have pretty up, for same bit terms say, rate for obviously of capital. Yes. last investment I But would years. a of the time, dormant we And Wes it's start coming at

pretty when So makes to want it's -- constantly. tend anything something other to add you we I makes that of particularly we to sense that uses that? participate. know, look Wendy, at relative to And it sense much don't it capital, if when

Wendy Young

you No, the nail the hit on head there.

depend rate those the spread going and that that. far valuation As of it the factors, we earn will forward, on can off as

So But if it looks could a we view additional of positive, of see very activity. potentially market, then it's just closely. it kind we monitor the week-to-week and

Wesley Carmichael

and on little just it. about then in couple surrender but talked outside up about remarks, the can sequential the surrenders Got sitting still realize a And pretty -- of big just experience of and it's values but FIA quarter? FIA, I it talk your know the in a I in you flow prepared about you've bit you're there's charge now. right net tick account billion a think that and of position, a I are

near So wondering in surrenders the of term. kind bit if expect of you elevated little a just

Christopher Blunt

and for out I Yes. surrender they're say already. would priced expect if that Two charge things that of would we

that's just So refinancing not reiterate mortgage. Wendy -- is necessarily more your outlier we going I And in be an how what analogous, terms this want of to probably said, to forward. someone planned wouldn't

So that's what's happening.

do that as customer the smart it's you where a and strong refinancing blocks huge well. actually where incented to new move terms. movement are obviously this the for add better get rates that in into of policy, so were You're business yes, to Agents policies

charge for surrender all. well. at capturing they're income. we're thing actually, So I a mean, bad us, not And it's doing

from covered perspective. that we're So

move think it's going And rates those we've here, now impact right a prematurely. stickiest the might because to meaning assets be we're policy, move written hard stuff fact, what to the some I do, writing of people of underestimate now to that, writing new ever from prove we're very if the and in down be contracts

year. probably or there of you yes, it I the I want either activity and specifically? next think anything going that to probably So And in us Wendy, call anything continue for surprised we're that quarters was couple to expect stabilize troubling. don't would another will was But think out see

Wendy Young

indicated, there's that. an I No. we're to yes, in if just as uptick, activity lags was at a the of Chris mean looking but FIA, refinancing, on going also there's lot that there and

we as to drop said, So Chris excess until continue do significantly. expect rates renders

Christopher Blunt

only just not is lot I'd have crushing been the of they're a sales, but we've add it in in some in only annuity-oriented terms the of obviously, investments benefits new IMOs thing replacement environment, smart less because to our in it that of terms sales. this own And obviously distribution and made of

Wesley Carmichael

That's helpful. base kind maybe quarter-over-quarter more. of But just all, did exclude on of And wondering you're little bit. we a that one contract kind of And think how I kind thinking just kind if about that going are peers could potentially forward, peaked pointing compress -- probably your a little of few investment going There's have of especially in and the macro where a backdrop. to spreads bit forward. spreads,

guys too. you that, are just how about curious So thinking

Christopher Blunt

to to generalize, got investment say, really right, just because would access hard different everybody's opportunities. was I it's

consider few yes, a And material basis so that like points. wouldn't we

see not going compression. -- experiencing spread that You're we're now, to noise we're right quarter-to-quarter. I wouldn't But characterize

pretty have business I now. runoff we're comfortable volatility, new this our less with to but it's hugely You'll see not oh, we're right on we mean returns be profitable. generating replaced the by profitable like, blocks

be So comment choose also margin" and then that how a some on I you that? retain. function know, to want do much of could of Wendy, we don't flow versus "core out to

Wendy Young

go, Wes. where was going to that's I Yes,

that ROA, items. our from What's, highlight the margin those And the at there's but X we've additional actually own coming in tried what's look then increase to QFS. you FIA, sequentially, core flow from distribution. the and If did

So that and what and has expenses -- margins into core, and you can back go product increased. the and of the the we get -- the to kind consider taking core by that

Operator

next Hughes Our Instructions] [Operator question Mark with Truist. come will from

Mark Hughes

see going Chris, opportunities? a interest to declining is rates, the the we do what for PRT pipeline, new business, if that

Christopher Blunt

There's to a question. and It's pipeline. the to see change to do RFPs. people Yes. a a an material run lead long think I for particular, time excellent you're going don't in in process consultants for

there's So see the can a certainly above that. on any level, pretty them. Most that where of are you near-term impact I comfortably don't of plans XXX-funding lot think

really pipeline right looks strong. really, the So now

If to to could market. some think points. basis XXX we're any see dramatic we're plummeted think see the material don't I going don't slowing in But going anytime you you soon. that. I rates that Maybe a saw change to pipeline see

Mark Hughes

all the on and then demographic. great. mentioned you also, to of about of some us about RILA, give kind means, the then what you extent that? targeting I timing relationships sort you talk And pursuing some talked it sense that be of you're magnitude, the Could think And younger that can strategic you would

Christopher Blunt

Yes, don't demographic, to. for folks younger to actually income, that know turn general relative they're just bought great as one. products on if when but category, an smiling rule I I younger meaning who have purpose. they're I'm that but fall because to timeline a for Happy elevated in Sure. looking I

extremely have as also one, people. but talked about one a we've large different to risk So bit product floor for with folks with sold two to us a tap before, into allows market, has X of we a tolerance. Every younger, complete date

risk. for upside. I'll limited downside. can downside a I'll And therefore, buffer a some folks take an Here's cushion get say, the opportunity hey, on more to have

that. super we're excited about So

you because to that's a will slow up have simply be add process. It a and distributors, ramp

big of couple a added ones we've Now recently.

to accelerate help think our going So of some growth. that's I

not we So significant. 'XX it start plenty business, and get will it, think other gee, the start if said, term, we would that much next in medium the think I I we X also over said, think opportunities. to years, be beyond, probably this that FIA be think I sales call see as pretty our I it you a could actually But contributor that this to of will rival can. volumes But the it into becoming And have we say we when modest. year of

great diversifier one longer It's we product. is terms really another now of And that's of a ton a -- which Initially, people these need also of niche platform. I in a off consumer it whole think product. piece no kind miss. a indexed platform. platform was a meet It's of that right, this core It's

annuity. upside, style the more of you So can you now, fixed of in income income guaranteed can have a buffer have more future, of sort plan

ton a right core need hit to one with consumer able of now chassis. we're So

Mark Hughes

I'll Well, demographic. that's things, one it's for of younger when Wendy a note, when buys these

Christopher Blunt

Perfect.

Mark Hughes

Here we question. One other go.

way. major One talked targeted flows some past, in kind way, know of that getting I'll do you think different the What funds, about of of RILA in in a is kind say of opportunity? about the you've that participating other some players in I that? times these

Christopher Blunt

suspect Yes. research it's the a -- great say closer annuities adoption. some is to real I great is plans priority. we point, would see slot do and will idea. at it's It getting constantly. the idea our And we been some of play, think us and for it We I to it hasn't play. looks there #X just a getting I XXX(k) like market a

in some you core complex, it's off. pull -- these so opportunities other We to of know, as right have channels, now many more much more

into. anything we're So perspective. yes, the I think has of that urgently that something segment expecting we don't I think that as changed jump view a don't to from this we're market

Operator

to CEO, like I'd Chris conclude for our remarks. the turn Blunt, any question-and-answer session. conference to back will over this closing And

Wendy Young

Great. very well business the positioned the pleased is growth. performance longer-term our and F&G's current half Thanks. the through of first market year. for for with We're the

with expansion Our accretive compelling drive asset and opportunities are returns. generate ahead margin deliver growth, many to prospects

thanks So third forward earnings updating your us. F&G appreciate you joining on in and for look interest to quarter our We call.

Operator

And the now for conference today's concluded. presentation. attending Thank has you

lines disconnect You this your time. at may now

F&G Annuities & Life (FG) 6 Aug 242024 Q2 Earnings call transcript