| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 67.92 | 165 |
| Intrinsic value (DCF) | 113.98 | 344 |
| Graham-Dodd Method | 24.54 | -4 |
| Graham Formula | 167.06 | 551 |
F&G Annuities & Life, Inc. (NYSE: FGN) is a leading provider of fixed annuity and life insurance products, specializing in retirement planning and wealth transfer solutions. Founded in 1959 and headquartered in Des Moines, Iowa, the company operates in the life insurance and annuities sector, catering to individuals seeking financial security and long-term wealth preservation. With a market capitalization of approximately $4.3 billion, F&G has established itself as a trusted name in the financial services industry. The company’s product portfolio includes fixed index annuities, traditional fixed annuities, and life insurance policies, designed to meet the evolving needs of retirees and pre-retirees. F&G’s strong financial position, with $2.26 billion in cash and equivalents and $5.74 billion in annual revenue, underscores its stability in a competitive market. As demographic trends favor retirement-focused financial products, F&G is well-positioned to capitalize on growing demand for annuities and life insurance in the U.S.
F&G Annuities & Life presents an attractive investment opportunity due to its stable revenue base ($5.74B in FY 2023), strong profitability ($622M net income), and low beta (0.30), indicating resilience against market volatility. The company’s focus on fixed annuities and life insurance aligns with aging demographics, supporting long-term demand. However, risks include interest rate sensitivity (fixed annuity returns depend on bond yields) and regulatory scrutiny in the insurance sector. F&G’s solid cash flow ($5.99B operating cash flow) and moderate leverage ($2.17B debt) suggest financial flexibility, while its dividend yield (~3.5% based on current data) adds income appeal. Investors should weigh these strengths against sector-wide challenges like low interest rates compressing margins.
F&G competes in the U.S. life insurance and annuities market, where differentiation hinges on product innovation, financial strength, and distribution reach. The company’s competitive advantage lies in its specialization in fixed annuities, which are less exposed to market volatility than variable products. Its focus on retirement solutions aligns with demographic tailwinds, but it faces intense competition from larger diversified insurers (e.g., MetLife, Prudential) and niche annuity providers. F&G’s relatively small scale compared to industry giants may limit bargaining power with reinsurers and distribution partners, but its asset-light model (minimal capex) supports margins. The company’s ability to maintain competitive crediting rates on annuities—driven by its investment portfolio—is critical. Regulatory expertise in fixed-indexed annuities (a complex, growing segment) further strengthens its positioning. However, its lack of a global footprint or diversified product suite (e.g., health insurance) could constrain growth versus broader peers.