F&G Annuities & Life closed its second quarter as a freshly capital-restructured franchise, with the parent's FNF spin of another twelve percent of the company in late December 2025 cutting F&G's public float and triggering a sharp step-up in share buybacks. Net loss attributable to common shareholders landed at negative eighty-one million dollars for the three months ended June 30, 2026, but the swing was almost entirely a remeasurement story on the long-duration insurance liabilities, not a deterioration of the operating spread engine. Recognized investment gains of two hundred ninety million dollars in the quarter versus fifty-one million a year ago partially masked a remeasurement loss of two million dollars that flipped from a thirteen-million-dollar gain in the prior-year quarter. Stripping those, the core spread-and-fee business kept producing, with net sales of one point four six billion dollars across the second quarter and total revenues of one point four two one billion dollars, up modestly from one point three six four billion in the year-ago period.
The half-year picture looks healthier. Total revenues for the six months ended June 30, 2026 reached two point six zero eight billion dollars, up fourteen point eight percent year over year from two point two seven two billion, while net income attributable to F&G common shareholders climbed to one hundred sixty-three million dollars from ten million. Earnings per diluted share of one point two four for the first half compares with eight cents a year ago, and the company deployed ninety-four million dollars of treasury repurchases during the second quarter alone, taking the share count down to one hundred thirty point nine million outstanding at June 30, 2026 from one hundred thirty-five point six million at year-end 2025.
The market is paying for an insurance business with a sticky spread engine and a high-quality institutional book, but a low rating, not a low business. The headline P/E of seven point eight times trailing earnings (per market data) and a forward P/E of four point eight times compresses any concern about the second-quarter GAAP loss into a single quarter, while the price-to-book of zero point six seven suggests the market is also capital-rationing an insurer that is actually returning capital. The load-bearing risk is a remeasurement loss repeating in future quarters if interest rates fall again, but the company's hedging program and capital position are built to absorb that. Falsifiable clock: the third-quarter 2026 print, expected in early November, is positioned to tell us whether the new run-rate of buybacks and indexed-annuity sales holds without another big remeasurement hit.