F&G Explains Registered Index-Linked Annuity Launch Strategy
Adjusted net earnings, which exclude the effects of the “mark to market” items, fell from $80 million to $49 million.
Non-variable indexed annuity sales increased from $962 million to $1.2 billion, and MYGA sales increased to $1.5 million, from $473 million.
F&G uses product design features and reinsurance to limit the amount of risk associated with the products sold, Blunt said.
The Market
Blunt said recent market volatility has helped F&G’s sales.
“Insurers and banks are the only folks that are legally allowed to use the G word, for guarantees,” Blunt said. “I think that’s a huge positive.”
Non-variable annuities are now paying higher rates than bank certificates of deposit, and that helps, too, Blunt said.
“I would suspect, given the capital pressures, that banks will likely be a little less competitive on CDs,” Blunt said.
Meanwhile, pressure on banks may help F&G’s investments by creating lending and investment opportunities for Blackstone and other non-bank capital providers, Blunt added.
Chris Blunt. (Photo: F&G)
