$648 Million in Valuation Gains Lift F&G’s Third-Quarter Profit

Key Facts

F&G said its third-quarter 2026 net income included $648 million in favorable net market valuation impacts, lifting reported profit relative to adjusted earnings, which excluded those impacts. Adjusted earnings were $96 million, or $0.74 per share, versus $165 million, or $1.22 per share, in the same period of 2025. The comparison shows that higher reported net income alone does not reflect a comparable improvement in the adjusted measure. The company said market valuation impacts were excluded from adjusted earnings. That puts adjusted earnings performance, rather than market gains alone, at the center of the quarter’s results.

Gross sales totaled $3 billion in the quarter, including $2.357 billion in core sales, while net sales were $1.405 billion. Net sales were $2.8 billion in the third quarter of 2025, showing a year-over-year decline. The company attributed net sales to flow reinsurance, in line with capital targets for multi-year guaranteed annuities and fixed indexed annuities. Elsewhere in the business, the company said product margin was affected by the sale of F&G Life Re Bermuda, lower surrender fee income and higher other liability costs, including increased amortization expense. These factors were partly offset by flow reinsurance fees, owned distribution margins and expense management.

Assets under management before reinsurance were $76.232 billion as of September 30, 2026, up 7% year over year, and included $56.212 billion in assets held. On the same date, common shareholders’ equity, excluding accumulated other comprehensive income, was $6.729 billion, or $51.37 per share. Equity increased $712 million from June 30, driven by $652 million in favorable market-related liability adjustments. The adjustments included a $297 million release of actuarial reserves following the annual assumption review. The figures reflect asset growth and higher shareholders’ equity during the quarter, with market-related liability adjustments remaining a factor in the change in equity.

F&G returned $37 million to shareholders in the third quarter through common and preferred dividends. In the first nine months of 2026, total capital returned was $232 million. That comprised $112 million in dividends and $120 million in share repurchases. Alternative investment income was $60 million, or $0.46 per share, below the current long-term expected return of about 12% estimated by management. The shortfall provides additional context for the quarter alongside the year-over-year decline in adjusted earnings, while the capital return shows what the company paid back to shareholders during the period.