Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. junior Avg
|
New words:
acknowledgment, adapt, advice, advisor, assembled, automatically, began, care, Carlo, challenged, Circuit, CIT, CODM, Committee, compensation, Concurrent, conduct, consultation, Corbeau, counsel, discretionary, distinct, DOL, earlier, employer, EPS, ERISA, essentially, expert, extended, fiduciary, final, forma, found, goodwill, highest, IA, implementation, implementing, impose, inclusion, incremental, irrevocable, Labor, lastly, left, lend, Lending, longstanding, loyalty, Mandatory, meaningfully, media, Monte, noncontrolling, omitted, organization, outflow, owner, par, path, platform, preamble, precautionary, professional, prohibited, PTE, publicly, readily, reclassified, recommendation, regular, reinterpretation, relationship, relied, resident, RILA, Roar, role, rollover, rulemaking, scope, shareholder, Task, trajectory, unaffiliated, vacated, Venture, version, vii, volume, workforce
Removed:
accreted, achieve, actuarial, adequacy, admitted, allocated, allocation, ALM, America, analytical, annuitant, applying, ASC, attempting, avoid, backing, BBB, behavioral, block, Bloomberg, burden, canceled, cap, capitalized, capped, captured, cede, certificate, certified, cessation, cession, clarified, cohort, commodity, commute, conform, consent, conserving, consistency, continuation, conventional, countervailing, country, create, creating, criteria, critical, cycle, cyclical, deal, dealing, declining, defer, Deferral, deficit, deviation, difficulty, direction, disintermediation, distributable, document, Dow, dramatically, drawn, earliest, earning, effort, element, emergence, enable, encourage, ending, estimating, exceeded, execution, exhaust, expensed, explicitly, fact, factor, fifty, Fitch, forced, forgoing, front, fulfilled, function, GMDB, grouping, hand, headcount, hindsight, historic, honor, impacting, inception, incidence, indexing, interpolation, investee, issuing, Kubera, lender, lengthen, letter, limiting, linear, maintenance, matching, materialize, matrix, migrate, migration, minimized, mismatch, mitigate, mix, modification, modified, Moody, narrowing, NASDAQ, naturally, NLC, Nomura, novated, NPR, observed, occasional, OCI, offered, opening, optional, original, overhead, parallel, parenthetically, pattern, penalty, perspective, predict, principle, projected, prolonged, prospectively, protected, provision, proximity, qualifying, quantity, quickly, quota, Rapidly, raw, reaction, realize, realizing, Reassurance, recalculate, recalculated, receipt, recognizing, reducing, reform, remained, remeasure, removal, rendered, renewal, replaced, repositioning, respond, revision, revoked, SAC, sensitive, separately, setoff, settled, shadow, shorten, shortfall, simulate, small, split, spousal, subsequently, successful, sunset, surrendered, sustained, swing, target, transition, translate, treat, UL, underwriting, underwritten, unexpected, unsuccessful, validate, variability, vested, VIF, voluntary, WACC, worthy
Financial report summary
?Risks
- Our debt instruments may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
- Our ability to grow depends in large part upon the continued availability of capital.
- A financial strength ratings downgrade, potential downgrade, or any other negative action by a rating agency could increase our cost of capital, making it challenging to grow our business, and could hinder our ability to participate in certain market segments, thereby adversely affecting our results of operations and our financial condition.
- We may face losses if our actual experience differs significantly from our reserving assumptions.
- Our valuation of investments and the determinations of the amounts of allowances and impairments taken on our investments may include methodologies, estimates and assumptions which are subject to differing interpretations and, if changed, could materially adversely affect our results of operations and financial condition.
- Change in our evaluation of the recoverability of our deferred tax assets could materially adversely affect our results of operations and financial condition.
- We have recorded goodwill as a result of past acquisitions, and adverse events affecting the value of our reporting unit could cause the balance to become impaired, requiring write-downs that would reduce our operating income.
- If we are unable to attract and retain national marketing organizations and independent agents, sales of our products may be reduced.
- We operate in a highly competitive industry, which could limit our ability to gain or maintain our position in the industry and could materially adversely affect our business, financial condition and results of operations.
- Concentration in certain states for the distribution of our products may subject us to losses attributable to economic downturns or catastrophes in those states.
- Concentration in one or more of our products (for example, FIAs) may subject us to greater volatility of sales if such products experienced a significant decrease in sales.
- We are subject to the credit risk of our counterparties, including companies with whom we have reinsurance agreements or from whom we have purchased options.
- Our business could be interrupted or compromised if we experience difficulties arising from outsourcing relationships.
- The loss of key personnel could negatively affect our financial results and impair our ability to implement our business strategy.
- Our risk management policies and procedures may not capture unidentified or unanticipated risk, which could negatively affect our business or result in losses.
- Interruption or other operational failures in telecommunication, information technology and other operational systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on such systems, including as a result of human error, could result in a loss or disclosure of confidential information, damage to our reputation, monetary losses, additional costs and impairment of our ability to conduct business effectively.
- We rely on our investment management or advisory agreements with BIS and other investment managers and sub-managers for the management of portions of certain of our life insurance companies’ investment portfolios.
- We have a long-term contractual relationship with BIS that limits our ability to terminate this relationship or retain another investment manager without BIS’s consent.
- The historical performance of BIS, or any other asset manager we engage, should not be considered as indicative of the future results of our investment portfolio, our future results or any returns expected on our common stock.
- Increased regulation or scrutiny of alternative investment advisers, arrangements with such investment advisers and investment activities may affect BIS’s or, if engaged, any other asset manager’s ability to manage our investment portfolio or impact the reputation of our business.
- Conditions in the economy generally could adversely affect our business, results of operations and financial condition.
- Our investments are subject to geopolitical risk. The on-going conflict in Russia and Ukraine could heighten and expand to peripheral countries in the region.
- Our investments are subject to market risks that could be heightened during periods of extreme volatility or disruption in financial and credit markets.
- Our investments are subject to credit risks of the underlying issuer, borrower, or physical collateral which can change over time with the credit cycle.
- Interest rate fluctuations could adversely affect our business, financial condition, liquidity and results of operations.
- Equity market volatility could negatively impact our business.
- We are exposed to liquidity risk as a result of our other risks.
- Our business could be materially and adversely affected by the occurrence of a catastrophe, including natural or man-made disasters.
- The COVID-19 pandemic could have a material adverse effect on our liquidity, financial condition and results of operations.
- Our business is highly regulated and subject to numerous legal restrictions and regulations.
- Our business is subject to government regulation in each of the jurisdictions in which we conduct business and regulators have broad administrative and discretionary authority over our business and business practices.
- Our regulation in the United States is influenced by the NAIC, which continues to consider reforms including relating to cybersecurity regulations, best interest standards, RBC and life insurance reserves.
- Current and emerging developments relating to market conduct standards for the financial industry emerging from the DOL’s implementation of the “fiduciary rule” may over time materially affect our business.
- Our regulation in Bermuda and the Cayman Islands may limit or curtail our activities, and changes to existing regulations may affect our ability to continue to offer our existing products and services, or new products and services.
- The SECURE 2.0 Act of 2022 may impact our business and the markets in which we compete.
- The amount of statutory capital that our insurance subsidiaries have and the amount of statutory capital that they must hold to maintain their financial strength ratings and meet other requirements can vary significantly from time to time due to a number of factors outside of our control.
- Changes in federal or state tax laws may affect sales of our products and profitability.
- Changes in tax law may increase our future tax liabilities and related compliance costs.
- We may be the target of future litigation, law enforcement investigations or increased scrutiny which may negatively affect our operations or financial strength or reduce profitability.
- We may not be able to protect our intellectual property and may be subject to infringement claims.
- We are a holding company and depend on distributions from our subsidiaries for cash.
- We may not achieve some or all of the expected benefits of the separation and distribution, and the separation and distribution may materially adversely affect our business, financial condition or operating results.
- Although we have past history of operating as a public company, our historical financial information and summary historical financial information are not necessarily representative of the results that we would have achieved as a separate, publicly traded company and may not be a reliable indicator of our future results.
- FNF is our principal shareholder and retains significant rights with respect to our governance and certain corporate actions. In certain cases, FNF may have interests which differ from our other shareholders.
- Certain of our directors may have actual or potential conflicts of interest because of their FNF equity ownership or their current or former FNF positions.
- Provisions in our amended and restated certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of us, which could decrease the trading price of our common stock.
- We are a “controlled company” within the meaning of the NYSE rules and, as a result, we qualify for, and rely on, exemptions from certain corporate governance requirements.
- FNF or F&G may fail to perform under various transaction agreements that were executed as part of the separation and distribution, or we may fail to have necessary systems and services in place when certain of the transaction agreements expire.
- In connection with the separation and distribution, FNF has agreed to indemnify us for certain liabilities and we have agreed to indemnify FNF for certain liabilities. If we are required to pay under these indemnities to FNF, our financial results could be negatively impacted. FNF’s indemnification of us may not be sufficient to hold us harmless from the full amount of all liabilities that will be allocated to us, and FNF may not be able to satisfy its indemnification obligations in the future.
- We may have received better terms from unaffiliated third parties than the terms we received in our agreements with FNF.
- Insurance holding company laws generally provide that no person, corporation or other entity may acquire control of an insurance company, which is presumed to exist if a person owns, directly or indirectly, 10% or more of the voting securities of an insurance company, without the prior approval of such insurance company’s domiciliary state insurance regulator. Persons considering an investment in our common stock should take into consideration their ownership of FNF voting securities and consult their own legal advisors regarding such laws in light of their particular circumstances.
- Our amended and restated bylaws contain an exclusive forum provision that could limit our shareholders’ ability to choose a judicial forum that they find favorable for certain disputes with us or our directors, officers, shareholders, employees or agents, and may discourage lawsuits with respect to such claims.
- We and certain of our subsidiaries file consolidated federal income tax returns with FNF.
- Our stock price may fluctuate significantly.
- If we are unable to implement and maintain the effectiveness of our internal control over financial reporting, our investors may lose confidence in the accuracy and completeness of our financial reports, which could adversely affect our stock price.
- Substantial sales of our common stock may occur which could cause our stock price to be volatile and to decline.
- We cannot guarantee the timing, amount or payment of dividends on our common stock in the future.
- Your percentage of ownership in F&G may be diluted in the future.
Management Discussion
- •Total annuity sales were slightly higher for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, reflecting F&G's productive and expanding retail distribution through independent agents, banks and broker dealers, enhanced product features and pricing actions taken to align to the macro environment.
- •Funding agreements, reflecting new Federal Home Loan Bank funding (“FHLB”) agreements, were lower for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 and are subject to fluctuation period to period based on economic conditions and the timing of entering the new agreements.
- •PRT sales increased for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 reflecting the robust PRT market. During the three months ended March 31, 2024, we closed three pension risk transfer transactions.