F&G ANNUITIES & LIFE Reports Second Quarter FY2023 Earnings Results
August 13, 2023
🌥️Earnings Overview
F&G ANNUITIES & LIFE ($NYSE:FG) reported their earnings for the second quarter of FY2023, ending June 30 2023, on August 9 2023. Total revenue for the quarter was USD 1124.0 million, a remarkable increase from the USD 12.0 million earned in the same quarter last year. Unfortunately, net income for the quarter was USD 130.0 million, a 66.2% decrease from the prior year’s figure.
Stock Price
The stock opened at $27.0 and closed at $27.1, down by 3.7% from the last closing price of 28.1. This follows a trend of declines in recent quarters, as the company has struggled to maintain a healthy balance sheet in the face of economic volatility. This is likely due to the company’s continued focus on cost-cutting strategies throughout its operations.
Despite the disappointing earnings news, F&G ANNUITIES & LIFE remains optimistic about its future prospects. The company has committed to continuing to invest in products and services to generate long-term revenue growth and ensure its continued success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FG. More…
| Total Revenues | Net Income | Net Margin |
| 3.52k | -208 | -5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FG. More…
| Operations | Investing | Financing |
| 5.26k | -9.58k | 5.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FG. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 62.59k | 60.07k | 20.05 |
Key Ratios Snapshot
Some of the financial key ratios for FG are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.1% | – | -6.0% |
| FCF Margin | ROE | ROA |
| 148.8% | -5.2% | -0.2% |
Analysis
GoodWhale conducted an analysis of F&G ANNUITIES & LIFE’s wellbeing. According to our Star Chart, F&G ANNUITIES & LIFE has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it might be able to sustain future operations in times of crisis. We classify F&G ANNUITIES & LIFE as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors interested in F&G ANNUITIES & LIFE should consider that the company is strong in growth, medium in dividend performance, and weak in asset and profitability. As such, F&G ANNUITIES & LIFE may be an attractive option for those looking for fast growth, although there may be a greater level of risk associated with the company relative to its peers. More…
Peers
It is a relatively new player on the scene, having been established in 2011. It competes with established players such as SBI Life Insurance Company Limited, Phoenix Group Holdings PLC and Globe Life Inc. All of these companies are operating in the same industry, providing services such as life insurance, annuities and related products to their customers. FGL Holdings has quickly gained a reputation for providing innovative solutions, which has positioned it as a major player in the industry.
– SBI Life Insurance Company Limited ($BSE:540719)
SBI Life Insurance Company Limited is one of the leading life insurers in India, offering a wide range of products and services to help people protect their families and their future. As of 2023, the company has a market capitalization of 1.11T, representing a significant increase in its financial position over the years. In addition, the company has an outstanding return on equity (ROE) of 8.98%, indicating that the management team is adept at capitalizing on investment opportunities and maximizing shareholder value. SBI Life Insurance provides a range of products and services, including term life insurance, whole life insurance, health insurance, endowment plans, pension plans, and group insurance plans. The company also offers a range of investment options to help customers make informed decisions about their financial goals.
– Phoenix Group Holdings PLC ($LSE:PHNX)
Group Holdings PLC is an international insurer and reinsurer that offers a wide range of insurance, reinsurance and financial services. With a market cap of 5.74B, it is one of the largest insurers in the world. The company’s Return on Equity (ROE) of -24.7% indicates that the firm is not effectively using its equity to generate income, which can be seen as a red flag. Nevertheless, the company is still doing well and has a wide range of services and products on offer.
– Globe Life Inc ($NYSE:GL)
Globe Life Inc is an insurance holding company, through its subsidiaries, provides individual life insurance, annuities, and supplemental health products in the United States, Canada, and New Zealand. As of 2023, Globe Life Inc has a market capitalization of 10.39 billion dollars and a Return on Equity of 13.46%. The company’s high market capitalization reflects its strong performance, while its Return on Equity indicates the company’s ability to generate income from shareholders’ investments. Clearly, Globe Life Inc is an established player in the insurance industry with a solid financial foundation.
Summary
Investors are likely concerned with the dismal earnings performance of F&G ANNUITIES & LIFE for the second quarter of FY2023, which ended June 30, 2023. Total revenue for the quarter increased, however, net income decreased significantly by 66.2% from the same period in the previous year. This has been reflected in the stock price, which has dropped since the earnings results were released.
Investors should consider the company’s performance when making their investment decisions. It is important to note that short-term results should not be used as a sole basis for making investment decisions, but that one should also consider the company’s long term prospects.
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