F&G Annuities & Life has gotten torched over the last six months – since September 2025, its stock price has dropped 35.9% to $22.43 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Is there a buying opportunity in F&G Annuities & Life, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.
Even though the stock has become cheaper, we don’t have much confidence in F&G Annuities & Life. Here are three reasons you should be careful with FG and a stock we’d rather own.
Book value per share (BVPS) serves as a key indicator of an insurer’s financial stability, reflecting a company’s ability to maintain adequate capital levels and meet its long-term obligations to policyholders.
Although F&G Annuities & Life’s BVPS declined at a 4.6% annual clip over the last four years. the good news is that its growth inflected positive over the past two years as BVPS grew at an excellent 20.1% annual clip (from $24.56 to $35.43 per share).
Return on Equity, or ROE, ties everything together and is a vital metric. It tells us how much profit the insurer generates for each dollar of shareholder equity entrusted to management. Over a long period, insurers with higher ROEs tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.
Over the last five years, F&G Annuities & Life has averaged an ROE of 9.4%, uninspiring for a company operating in a sector where the average shakes out around 12.5%.
F&G Annuities & Life isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 0.6× forward P/B (or $22.43 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We’re pretty confident there are more exciting stocks to buy at the moment. We’d suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce.
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