FG

F&G Annuities ($FG) CEO Buys Shares During 16% Plunge, Insiders Bet $150M in Two-Month Buying Spree

05/10/2025 01:23

Christopher Blunt, CEO of F&G Annuities & Life Inc ($FG), purchased 10,000 shares of company stock on May 9, 2025, the same day the stock plummeted approximately 16% to close at $30.17. The transaction, executed at an average price of $30.80, totaled $307,953 and came at a critical moment for the mid-sized insurance provider. Blunt's purchase extends a pattern of insider buying that has accelerated in recent months. Most notably, March 2025 saw a significant cluster of insider purchases. Between March 24 and 27, Blunt acquired 30,000 shares over three consecutive days, investing approximately $1.06 million. During the same period, Director Celina Wang Doka purchased 3,000 shares, while EVP Michael Gravelle acquired 7,000 shares. The most substantial transaction came from major shareholder Fidelity National Financial, Inc (FNF), which purchased 4,500,000 shares at $33.60 per share on March 24, a massive $151.2 million investment. This transaction was executed through Chicago Title Insurance Company, a wholly-owned subsidiary of FNF, indicating an indirect ownership structure. F&G Annuities & Life, with a market capitalization of approximately $4.9 billion, specializes in annuity and life insurance products. The company has recently struggled to meet performance expectations. On February 21, 2025, F&G reported fourth-quarter earnings of $143 million, or $1.12 per share, missing analyst expectations and triggering an 8.2% stock decline. According to Piper Sandler analysis, the earnings shortfall was primarily attributed to decreased net investment income resulting from recent interest rate cuts. More concerning was the decline in fourth-quarter net sales to $2.44 billion, marking the first year-over-year decline since Q2 2023. This suggests potential challenges in the competitive annuity and life insurance markets, possibly reflecting changing consumer demand patterns. Despite these performance challenges, the substantial insider buying, particularly by the CEO, signals confidence in the company's long-term value proposition. Blunt's most recent purchase, made with the stock trading near 52-week lows, suggests management believes the current share price significantly undervalues the company's fundamentals. Financial analysts note that F&G's stock has declined approximately 37% from its November 2024 peak, falling from around $46 in early 2025 to the low $30s currently. The current analyst consensus price target ranges from $44 to $47, substantially above current trading levels. The U.S. insurance industry is particularly sensitive to interest rate environments. Recent Federal Reserve signals of rate cuts and increasing economic uncertainty have pressured insurers' profitability. However, long-term demographic trends toward an aging population and increased retirement planning focus are expected to support annuity product demand. The upcoming May quarterly results will be a crucial indicator of F&G's recovery trajectory and future outlook. Investors will be particularly focused on how the company adjusts its investment strategy to the changing interest rate environment and its plans for new product launches. The consistent insider buying suggests confidence that the company's current challenges are temporary rather than structural, with management clearly signaling belief in the long-term growth potential despite short-term performance headwinds.

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