Alternative returns lag as F&G (NYSE: FG) projects CLO capital ratio hit

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

F&G Annuities & Life, Inc. is providing preliminary figures for investment income from alternative investments and the impact of new capital rules before releasing full second-quarter results. For the three months ended June 30, 2026, it estimates pre-tax investment income from alternative investments of about $56 million to $66 million, implying an annualized return near 6%. Management expects this to be roughly $65 million pre-tax and $51 million post-tax below its current long-term expected return of about 12%. The company also estimates that applying new NAIC CLO Risk Based Capital factors to FGL Insurance’s June 30, 2026 CLO portfolio could reduce its December 31, 2026 pro forma U.S. RBC ratio by around 10 percentage points. All figures are preliminary, unaudited, and may change once closing procedures and final RBC calculations are completed.

Positive

None.

Negative

Alternative investment income for Q2 2026 is estimated at $56–$66 million pre-tax, with the midpoint implying about a 6% annualized return, which management states is roughly $65 million pre-tax and $51 million post-tax below its long-term expected 12% return.
New NAIC CLO Risk Based Capital factors, effective December 31, 2026, are estimated to reduce FGL Insurance’s December 31, 2026 pro forma U.S. RBC ratio by about 10 percentage points when applied to its June 30, 2026 CLO portfolio.

Insights

F&G flags weaker alternative investment returns and a notable future capital ratio impact.

F&G estimates alternative investment income of $56–$66 million pre-tax for Q2 2026, an annualized return of about 6%. Management indicates this is roughly $65 million pre-tax and $51 million post-tax below its long-term return expectation of about 12%, signaling softer performance from these assets.

The company also estimates that new NAIC CLO Risk Based Capital factors, effective December 31, 2026, applied to FGL Insurance’s June 30, 2026 CLO portfolio could reduce its pro forma U.S. RBC ratio by about 10%-points. That indicates a meaningful, though still quantified, capital headwind tied to CLO holdings and evolving regulation.

All numbers are preliminary, unaudited, and may change after full closing and RBC calculations. Future company disclosures around the quarter ended June 30, 2026 and the final December 31, 2026 RBC position will clarify how these early estimates translate into reported earnings and statutory capital ratios.

8-K Event Classification

2 items: 2.02, 7.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Key Figures

Alternative investment income (pre-tax): $56–$66 million Annualized alternative return: Approximately 6% Shortfall vs long-term expectation (pre-tax): $65 million +3 more

6 metrics

Alternative investment income (pre-tax) $56–$66 million Estimated for three months ended June 30, 2026

Annualized alternative return Approximately 6% Implied by midpoint of Q2 2026 estimate

Shortfall vs long-term expectation (pre-tax) $65 million Below management’s long-term expected 12% return for Q2 2026

Shortfall vs long-term expectation (post-tax) $51 million Below management’s long-term expected 12% return for Q2 2026

Estimated RBC ratio impact Approximately 10 percentage points Pro forma U.S. RBC ratio reduction at December 31, 2026 from new NAIC CLO factors

Effective date of new CLO RBC factors December 31, 2026 NAIC CLO Risk Based Capital factor changes

Key Terms

alternative investments, Risk Based Capital, Collateralized Loan Obligation, adjusted net earnings, +1 more

5 terms

alternative investments financial

"investment income from alternative investments for the three months ended June 30, 2026"

Alternative investments are assets outside traditional stocks, bonds and cash, such as real estate, private equity, hedge funds, commodities, collectibles, and venture capital. They matter to investors because they can provide different sources of return and risk, like adding a new flavor to a meal, helping diversify a portfolio, potentially smoothing volatility or boosting long-term returns when conventional markets struggle.

Risk Based Capital regulatory

"new National Association of Insurance Commissioners (“NAIC”) Collateralized Loan Obligation ("CLO") Risk Based Capital (“RBC”) factor requirements"

A regulatory measure that sets how much capital a financial firm—often an insurer—must hold based on the types and size of risks it carries. Think of it as a tailored safety cushion: riskier investments or policies require a bigger reserve. Investors care because it signals how well a company can absorb losses, affects credit ratings and dividends, and determines whether regulators may require corrective action, all of which influence share value and business continuity.

Collateralized Loan Obligation financial

"new NAIC CLO RBC factors, that take effect on December 31, 2026"

A collateralized loan obligation (CLO) is a financial product that bundles many corporate loans into a single pool and then sells pieces of that pool to investors, with each piece offering different levels of risk and return. Think of it like a large box of varied loans sliced into portions so investors can choose higher safety with lower yield or higher reward with more risk; CLO performance matters because it concentrates credit and interest-rate risk and affects income stability for holders.

adjusted net earnings financial

"mark-to-market movement that is reflected in adjusted net earnings, from certain limited partnerships"

Adjusted net earnings are a company’s reported profit after removing one-time, unusual or non-cash items (like asset write-downs, restructuring costs or large legal settlements) so investors can see the recurring core profit. Think of it like looking at a household’s monthly budget after excluding a rare emergency expense; it helps investors judge ongoing business health and compare performance across periods without distortion from isolated events.

forward-looking statements regulatory

"constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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Understanding 8-K Material Events →

Available on EDGAR 07/08/2026 - 04:11 PM Accepted by SEC EDGAR 07/08/2026 - 04:10 PM

FAQ

What preliminary alternative investment income did F&G (FG) report for Q2 2026?

F&G estimates pre-tax investment income from alternative investments of about $56 million to $66 million for the quarter ended June 30, 2026. The midpoint implies an annualized return near 6%, based on preliminary results that remain unaudited and subject to change.

How does F&G’s Q2 2026 alternative investment return compare with its long-term expectations?

F&G indicates the estimated return on alternative investments, around a 6% annualized rate, is below its long-term expected return of roughly 12%. Management estimates this shortfall at about $65 million pre-tax and $51 million post-tax for the quarter.

What impact do new NAIC CLO RBC factors have on F&G (FG)?

Applying new NAIC CLO Risk Based Capital factors to FGL Insurance’s June 30, 2026 CLO portfolio could reduce its December 31, 2026 pro forma U.S. RBC ratio by about 10 percentage points. The final effect depends on credit ratings and tranches held at that time.

When will F&G (FG) release full Q2 2026 results and more detail?

F&G plans to release its quarterly earnings report and financial supplement for the quarter ended June 30, 2026 on August 5, 2026. It also expects to provide further updates during its second quarter earnings call on August 6, 2026.

What investments are included in F&G’s alternative investment income estimate?

Alternative investment income includes mark-to-market movement in certain limited partnerships, other equity interests, unconsolidated affiliates, and some company-owned life insurance. These positions are generally reported on a one-quarter lag and are reflected in F&G’s adjusted net earnings measures.

Are F&G’s preliminary figures for Q2 2026 final and audited?

No. F&G states the preliminary figures are unaudited and based on information available as of the disclosure date. The company has not completed financial closing procedures or full RBC calculations, so actual results for Q2 2026 and year-end 2026 could differ materially.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 8, 2026

F&G Annuities & Life, Inc.

(Exact Name of Registrant as Specified in its Charter)

001-41490

(Commission File Number)


Delaware			85-2487422
(State or Other Jurisdiction of Incorporation)			(IRS Employer Identification No.)
801 Grand Avenue, Suite 2600 Des Moines, Iowa 50309 (Address of Principal Executive Offices) (866) 846-4660 (Registrant’s Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
F&G Common Stock, $0.001 par value	FG	New York Stock Exchange
7.950% Senior Notes due 2053	FGN	New York Stock Exchange
7.300% Junior Subordinated Notes due 2065	FGSN	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

The information contained in Item 7.01 of this Current Report on Form 8-K under the heading “Preliminary estimates for investment income from alternative investments” is hereby incorporated by reference into this Item 2.02.

Item 7.01. Regulation FD Disclosure

F&G Annuities & Life, Inc. (the “Company” or “F&G”) is furnishing this Current Report on Form 8-K to disclose certain preliminary financial information related to investment income from alternative investments prior to the availability of the Company’s quarterly earnings release and quarterly financial supplement for the quarter ended June 30, 2026, scheduled for release on August 5, 2026. The Company is also providing preliminary information related to the estimated impact of the new National Association of Insurance Commissioners (“NAIC”) Collateralized Loan Obligation ("CLO") Risk Based Capital (“RBC”) factor requirements.

Preliminary estimates for investment income from alternative investments

Based on preliminary results received to date, the Company estimates that its investment income from alternative investments for the three months ended June 30, 2026 will be approximately $56 million to $66 million (pre-tax). The midpoint of this range represents an annualized return of approximately 6%. As a result, investment income from alternative investments is estimated to be pre-tax and post-tax respectively at $65 million and $51 million below management’s current long-term expected return of approximately 12%.

Investment income from alternative investments includes mark-to-market movement that is reflected in adjusted net earnings, from certain limited partnerships and other equity interests, including limited liability corporations classified as investments in unconsolidated affiliates and certain company owned life insurance ("COLI") classified as other long-term investments which are generally reported on a one-quarter lag. We expect to provide further updates on the upcoming second quarter earnings call on August 6, 2026.

Preliminary estimate for impact of new NAIC CLO RBC factor requirements

The Company estimates that applying the new NAIC CLO RBC factors, that take effect on December 31, 2026, to Fidelity & Guaranty Life Insurance Company’s (“FGL Insurance”) June 30, 2026 CLO portfolio (including both broadly syndicated loans and middle market loans) could reduce FGL Insurance’s December 31, 2026 pro forma estimated U.S. RBC ratio by approximately 10 percentage points. The final impact will be dependent on the ultimate credit ratings and tranches held at that time.

The preliminary financial information presented above is the responsibility of management and has been prepared in good faith based on information available to management as of the date hereof. However, we have not completed our financial closing procedures for the three months ended June 30, 2026, or RBC calculations for the year ended December 31, 2026, and our actual results could be materially different from this preliminary financial information. As a result, prospective investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided. This preliminary financial information is estimated and unaudited and should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP. In addition, this preliminary financial information is not necessarily indicative of the results to be achieved in any future period.

This Current Report on Form 8-K includes statements, which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of terms such as “believes”, “expects”, “may”, “preliminary”, “will”, “could”, “seeks”, “intends”, “plans”, “estimates”, “anticipates” or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are

based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

The information in this Current Report on Form 8-K is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	F&G Annuities & Life, Inc.


Date: July 8, 2026	By:	/s/ Michael L. Gravelle
		Name:	Michael L. Gravelle
		Title:	Executive Vice President, General Counsel and Corporate Secretary

Source: View Original Filing on SEC EDGAR

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