What Happened?
Shares of insurance solutions provider F&G Annuities & Life (NYSE: FG) fell 9.6% in the morning session after the company reported weaker-than-expected fourth-quarter earnings and a significant drop in profitability compared to the previous year.
The insurance solutions provider posted adjusted earnings per share of $0.91, missing analyst expectations of $1.20 by 24.4%. Additionally, its book value per share of $33.49 fell well short of the $47.05 consensus estimate. The company's pre-tax profit margin also declined by 16.7 percentage points compared to the same quarter last year. While the results showed some strength, with revenue of $1.77 billion beating estimates and growing 10.8% year-on-year, investors appeared to focus on the weaker bottom-line figures.
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What Is The Market Telling Us
F&G Annuities & Life’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock dropped 2.6% on the news that the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs.
Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.
F&G Annuities & Life is down 16.7% since the beginning of the year, and at $25.03 per share, it is trading 43.2% below its 52-week high of $44.02 from February 2025. Investors who bought $1,000 worth of F&G Annuities & Life’s shares at the IPO in November 2022 would now be looking at an investment worth $1,494.
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