Fidelity & Guaranty Life (F&G) Annuities: Q3 2026 10-Q Read

What is true today, and what older summaries get wrong

Searches for “fidelity and guaranty life” land on a name that covers three layers. F&G Annuities & Life, Inc. is the listed parent that files with the SEC. Fidelity & Guaranty Life Insurance Company (“FGL Insurance”, domiciled in Iowa) is the main insurer that issues the annuity contracts. FGL NY Insurance is the New York company. Your contract is a promise of the insurer that issued it, not of the parent. Four points from the November 2026 filings differ from what many summaries still say.

1. F&G Life Re is no longer F&G's. The 10-Q says: “On March 1, 2026, the Company completed the sale of its Bermuda based subsidiary, F&G Life Re, to Ancient Financial Holdings, LP (“Ancient”), an unrelated third party.” It was renamed Ancient Re Ltd. and “is no longer considered a related party.” F&G received about $102 million in cash and a 19.9% limited partnership interest in Ancient. Blackstone kept the asset management of the in-force assets, and a new forward flow agreement cedes certain MYGA business to Ancient Re. Any article that still lists F&G Life Re as an affiliated Bermuda reinsurer is a year out of date.
2. The 10-Q does not quote F&G's ratings. The only rating table in the Q3 10-Q is for F&G's reinsurers. The ratings of the insurer itself are in the 10-K filed on February 26, 2026, and we show them below with that date.
3. No RBC ratio is stated. The filings say whether each subsidiary's risk-based capital would be above or below the minimum without permitted accounting practices; they do not publish a ratio. We do not estimate one.
4. Ownership is FNF, with Blackstone as manager. The 10-Q says FNF retained approximately 70% of the common stock after its December 31, 2025 distribution “(approximately 72% as of September 30, 2026).” Blackstone's role in these filings is investment manager and sub-manager.

On November 5, 2026 F&G furnished its third-quarter press release and financial supplement under Item 2.02 of a Form 8-K (accession 0001934850-26-000105). The numbers on this page come from the filed 10-Q, not from the press release. The last filing of CIK 1934850 when we compiled this page was the 10-Q of November 6, 2026.

What F&G owes policyholders, by product

The table is Note I of the 10-Q (contractholder funds) and Note J (future policy benefits for payout products), in millions of dollars. “Ceded” is the reinsurance recoverable the 10-Q subtracts from the gross liability for that product.

Source: F&G Annuities & Life, Form 10-Q for the quarter ended September 30, 2026, Notes I and J. Ceded shares are our arithmetic from the recoverable and gross liability lines; the Note I recoverable for each product is the amount subtracted to reach the net liability.

Three readings follow from the table. First, indexed annuities grew while fixed rate annuities shrank: the 10-Q shows indexed issuances of $5,570 million for the nine months and fixed rate issuances of only $357 million, against $3,801 million of fixed rate issuances in all of 2025. Second, about two thirds of the fixed rate annuity block (68.6%, our arithmetic) sits with reinsurers, and the share of indexed annuities ceded more than doubled in nine months (9.5% to 21.9%). Third, ceding is not a transfer of your contract. The 10-Q says: “The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer.”

Worked example (our arithmetic). On a $300,000 fixed rate annuity, the average ceded share of the whole block, 68.6%, would be $205,800. That is the block average, not your contract: the 10-Q lists which reinsurer covers “certain MYGA” or “certain FIA” policies but not which contracts. Your contract's reinsurance, if any, is something the insurer can tell you in writing.

Crediting rates and how much money is leaving

Source: Form 10-Q for September 30, 2026 (Note I and Results of Operations) and Form 10-Q for September 30, 2025 (Note I). The 2025 full-year percentages are our arithmetic from the 10-Q's December 31, 2025 table and the opening 2025 balances ($30,235 million and $17,442 million).

The nine-month figures are not annualized. The 10-Q describes penalty-free withdrawals as “up to 10% of the prior year's value, subject to certain limitations,” and surrender charges as the fee on withdrawals above that. Cash surrender value is below the account balance: $33,637 million against a $36,175 million balance for indexed annuities, and $18,428 million against $18,427 million for fixed rate annuities, before any reinsurance.

Where the money is invested

The bond portfolio is $50,712 million at fair value ($55,495 million amortized cost). The 10-Q shows an unrealized loss position and explains it this way: “Most components of the portfolio exhibited price depreciation caused primarily by higher treasury rates.” Gross unrealized losses on available-for-sale bonds were $4,892 million at September 30, 2026 against $3,091 million at December 31, 2025.

Source: Form 10-Q for September 30, 2026, Item 2, credit quality table. NAIC ratings of structured securities follow NAIC methodologies and can differ from agency ratings.

Private and structured credit. The 10-Q's top-ten list is the clearest view. CLOs were $9,926 million, 19% of fixed maturity and equity securities (December 31, 2025: $10,890 million, 21%). ABS were $7,923 million, 16% (15%). Commercial mortgage-backed securities were $4,106 million, 8% (10%), and whole loan CMOs $2,323 million, 5%. CLOs and ABS together equal the $17,849 million “Asset-backed securities” line in Note C, 35.2% of the bond portfolio (our arithmetic; 35.5% in December). The filing calls its CLO holdings “generally senior tranches of CLOs which have leveraged loans as their underlying collateral.”

Source: Form 10-Q for September 30, 2026, CLO, ABS and fixed maturity credit tables; sums and shares are our arithmetic.

Loans and partnerships. Mortgage loans reached $10,246 million from $7,891 million, now 14.7% of invested assets (11.4% in December, our arithmetic): $3,799 million commercial and $6,447 million residential. The 10-Q gives a weighted-average debt service coverage of 1.9 times (2.3 times in December), a weighted-average loan-to-value of 56%, and one delinquent commercial loan. Non-performing residential loans were $127 million, 2% of the gross book, against $67 million, 1%. Investments in unconsolidated affiliates (mostly limited partnerships) were $5,150 million. One vehicle, Blackstone Wave Asset Holdco, is above the 10% of shareholders' equity concentration line at $605 million ($655 million in December).

A further fact matters for who holds the assets: 30.2% of the bond portfolio ($15,312 million, our arithmetic) now sits in funds withheld accounts, up from 23.8% ($12,530 million), because assets backing reinsured business stay on F&G's balance sheet for the reinsurer's account. The funds withheld line includes $781 million of mortgage loans, up from $65 million.

Who reinsures what

Reinsurance recoverable at September 30, 2026, in millions of dollars, with the ratings the 10-Q quotes (AM Best first, then S&P or Fitch where given):

Source: Form 10-Q for September 30, 2026, Note E, reinsurance recoverable and financial strength ratings tables; Form 10-Q for September 30, 2025, Note E. In the 2025 10-Q Aspida is named “Aspida Life Re Ltd.”; the 2026 table includes Aspida Life Re Ltd. and Aspida Re Cayman Ltd.

What changed in 2026, from the 10-Q: Ancient Re became a reinsurer on February 28 and March 1, 2026 as part of the F&G Life Re sale, on a funds withheld quota share basis; effective July 1, 2026 F&G ceded base contract benefits and GMWB riders on certain future flow FIA policies to Talcott on a coinsurance quota share basis; and effective September 30, 2026 it amended its agreement with New Reinsurance Company Ltd., a Munich Re subsidiary, to cede certain in-force and future flow MYGA policies. In the 10-K, Fort Greene is described as “a new reinsurance vehicle backed by Blackstone managed funds, with approximately $1 billion in anticipated capital commitments,” and F&G “does not hold any ownership stake” in it. The 10-Q also reports that gross sales ceded to third-party flow reinsurers were $3,778 million of $8,892 million in nine months (42.5%, our arithmetic) against $3,521 million of $11,246 million (31.3%) a year earlier.

The wholly owned reinsurers that remain inside the group are Raven Re and Corbeau Re (Vermont) and F&G Cayman Re (Cayman Islands). The 10-Q states that, without permitted accounting practices approved by the Vermont regulator, “Corbeau Re’s risk-based capital would have fallen below the minimum regulatory requirements.” For F&G Cayman Re it says statutory surplus would be $57 million, instead of the reported $1,215 million, if it had not been permitted to use best estimate reserves for assumed PRT business or to count letters of credit as an admitted asset. These are practices its regulators permit; the filing does not describe either company as in breach.

Statutory capital: the number the policyholder's regulator watches

Source: Form 10-Q for September 30, 2026 and September 30, 2025, Note O. The Raven Re, Corbeau Re and FGL NY lines are subsidiaries of FGL Insurance, so the columns should not be added together.

FGL Insurance's figure fell by $744 million (42.9%, our arithmetic) between December 31, 2025 and September 30, 2026. The 10-Q gives two items inside that: a $159 million statutory net loss for the nine months and a $250 million return of capital paid to its parent in the third quarter, with the Iowa Insurance Division's approval. Together they are $409 million; the 10-Q does not itemize the other $335 million (our arithmetic). The 10-Q also says that the prescribed and permitted practices increased statutory capital and surplus of the U.S. subsidiaries by $169 million at September 30, 2026 ($249 million at December 31, 2025), and: “Without such permitted statutory accounting practices, FGL Insurance’s risk-based capital would have been above the minimum regulatory requirements as of September 30, 2026 and December 31, 2025.” Statutory figures are not GAAP figures. On a GAAP basis F&G reported total equity of $4,458 million and net earnings of $741 million for the quarter, compared with $120 million a year earlier; the income statement includes a $167 million market risk benefit gain in the quarter.

Blackstone: who manages the assets and what it costs

The 10-K explains the arrangement. FGL Insurance and other subsidiaries have investment management agreements with Blackstone ISG-I Advisors LLC, “pursuant to which BIS is appointed as investment manager of substantially all assets in the general and separate accounts of those entities.” At December 31, 2025 about 78% of the $69 billion portfolio was managed by BIS, 20% by other third parties and 2% internally. BIS delegates to Blackstone's Credit, Real Estate Debt and Asset-Based Finance businesses under sub-management agreements.

The 10-K adds that F&G keeps the investment strategy decisions and risk limits, and that “BIS is primarily responsible for security selection.” For a policyholder the point is concentration, not cost: one manager selects most of the securities that back the contract, and F&G describes a “long-term contractual relationship with BIS that limits our ability to terminate this relationship.” That sentence is from the 10-K risk factor summary.

The ratings F&G quotes, with their date

The Q3 10-Q does not restate them. The 10-K, filed on February 26, 2026, lists them as of its date:

Source: Form 10-K for 2025 (accession 0001934850-26-000026), Item 1, ratings table. Rating agencies can change ratings at any time; check each agency's site for the current rating.

Guaranty associations and what exiting costs

A state guaranty association pays covered policyholders if a life insurer is placed in liquidation. The limit depends on your state of residence and the type of contract, which is why we keep a state-by-state guaranty limits table; we do not restate any limit here. The F&G filings contain no sign of such a proceeding. Leaving a contract has costs the 10-Q itself lists: surrender charges, market value adjustments on some contracts, and tax. A 1035 exchange moves an annuity without immediate tax; see 1035 exchange rules and how they differ from a 1031 and deferred annuity taxation. If your contract is a registered index-linked annuity, our RILA prospectus census includes the F&G Confidence Builder. For the pension buyout side of the market, see the Athene pension buyout rulings.

What a reader can do with this

This is analysis of public documents, not investment, legal or tax advice.

1. Find your contract's insurer. The statement names the issuing company. If it is Fidelity & Guaranty Life Insurance Company, the rows above for FGL Insurance apply; if it is Fidelity & Guaranty Life Insurance Company of New York, the small FGL NY Insurance line applies.
2. Compare your balance with your state limit from our table, per person per insurer.
3. Ask for the surrender schedule and the market value adjustment terms in writing, and the cash surrender value today. The 10-Q shows these differ from account balance.
4. Ask whether your contract is reinsured and with whom. The 10-Q lists reinsurers by product group, not by contract.
5. Read the next filings. The Form 10-K for 2026 is the next place the ratings table and Blackstone fees are updated; the 10-Q for March 31, 2027 will show whether statutory capital moved again.

FAQ

Sources, read on November 10, 2026: F&G Annuities & Life, Inc., Form 10-Q for the quarter ended September 30, 2026 (accession 0001934850-26-000110, filed November 6, 2026), Form 10-Q for the quarter ended September 30, 2025 (accession 0001934850-25-000072), Form 10-K for the year ended December 31, 2025 (accession 0001934850-26-000026, filed February 26, 2026) and Form 8-K of November 5, 2026 (accession 0001934850-26-000105), all on SEC EDGAR under CIK 1934850. Percentages marked “our arithmetic” are computed from those filings.