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F&G Annuities & Life: Weak Alternative Returns Limit Q2 Profits

F&G Annuities & Life: Weak Alternative Returns Limit Q2 Profits

F&G Annuities & Life remains a 'strong buy' due to its significant discount to book value despite recent underperformance and credit concerns. FG is shifting toward fee-based revenue and increasing reinsurance to improve ROE, targeting 25% fee-based earnings by 2028. The investment portfolio is 97% investment grade, with manageable private credit risk and a conservative insurance book.

Source: Seeking Alpha
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