EX-99.2 3 fg3q2022financialsupplemen.htm EX-99.2
Exhibit 99.2
F&G Annuities & Life, Inc. (F&G) - An Operating Segment of Fidelity National Financial, Inc. (NYSE:FNF)
Financial Supplement
September 30, 2022
(Year Ended December 31)
The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF ("the Company") and these financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K. F&G was acquired by FNF on June 1, 2020.
All dollar amounts are presented in millions.
Non-GAAP Financial Measures
Generally Accepted Accounting Principles ("GAAP") is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this document includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.
1

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)

| Page
A. Financial Highlights |
Consolidated Financial Highlights | 3
Sales Results by Product | 3
Condensed Consolidated Balance Sheets | 4
Condensed Consolidated Statements of Earnings | 6
Reconciliation from Net Earnings to Adjusted Net Earnings | 7
Adjusted Net Earnings Statement | 8
Adjusted Net Earnings - Significant Income and Expense Items | 9
Adjusted Return on Assets (Dollars) | 10
Adjusted Return on Assets (Basis Points) | 10
Capitalization and Reconciliation of Total Equity to Total Equity excluding AOCI | 11
Financial Strength Ratings | 11
B. Product Summary |
Assets Under Management Rollforward and Average Assets Under Management | 13
Annuity Account Balance Rollforward | 14
Annuity Liability Characteristics | 15
C. Investment Summary |
Summary of Invested Assets by Asset Class | 16
Credit Quality of Fixed Maturity Securities | 17
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation | 18
D. Counterparty Risk |
Top 5 Reinsurers | 18
E. Non-GAAP Financial Measures Definitions | 19

2

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Consolidated Financial Highlights

| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Select Income Statement Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders | 115 |  |  | 230 |  |  | 236 |  |  | 121 |  |  | 373 |  |  |  | 581 |  |  | 744 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted net earnings attributable to common shareholders ("Adjusted net earnings") (a) (b) | 12 |  |  | 112 |  |  | 83 |  |  | 142 |  |  | 160 |  |  |  | 207 |  |  | 409 |  |  |  |  |  |  |  |  |  |  |  |  |
Select Metrics: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average assets under management ("AAUM") (a) | 41,081 |  |  | 39,306 |  |  | 37,459 |  |  | 35,699 |  |  | 32,692 |  |  |  | 39,246 |  |  | 30,706 |  |  |  |  |  |  |  |  |  |  |  |  |
Assets under management ("AUM") (a) | 41,988 |  |  | 40,322 |  |  | 38,601 |  |  | 36,494 |  |  | 34,665 |  |  |  | 41,988 |  |  | 34,665 |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted return on assets (a) (b) (c) | 0.70 | % |  | 1.02 | % |  | 0.89 | % |  | 1.72 | % |  | 1.77 | % |  |  | 0.70 | % |  | 1.77 | % |  |  |  |  |  |  |  |  |  |  |  |

(a) Refer to "Non-GAAP Financial Measures Definitions"
(b) Effective this quarter, presentations of adjusted net earnings and adjusted return on assets will no longer include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings.
(c) Adjusted return on assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM..
Sales Results by Product

| Three months ended |  |  | Nine months ended
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021
Sales (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed indexed annuities ("FIA") | 1,109 |  |  | 1,114 |  |  | 962 |  |  | 1,055 |  |  | 1,073 |  |  |  | 3,185 |  |  | 3,255 |
Fixed rate annuities ("MYGA") | 1,108 |  |  | 1,087 |  |  | 473 |  |  | 301 |  |  | 458 |  |  |  | 2,668 |  |  | 1,437 |
Total annuity | 2,217 |  |  | 2,201 |  |  | 1,435 |  |  | 1,356 |  |  | 1,531 |  |  |  | 5,853 |  |  | 4,692 |
Indexed universal life ("IUL") | 36 |  |  | 29 |  |  | 27 |  |  | 28 |  |  | 24 |  |  |  | 92 |  |  | 59 |
Funding agreements ("FABN/FHLB") | — |  |  | 843 |  |  | 600 |  |  | 35 |  |  | 1,150 |  |  |  | 1,443 |  |  | 2,275 |
Pension risk transfer ("PRT") | 620 |  |  | — |  |  | 527 |  |  | 776 |  |  | 371 |  |  |  | 1,147 |  |  | 371 |
Total Gross Sales | 2,873 |  |  | 3,073 |  |  | 2,589 |  |  | 2,195 |  |  | 3,076 |  |  |  | 8,535 |  |  | 7,397 |
Sales attributable to flow reinsurance to third parties | (660) |  |  | (544) |  |  | (236) |  |  | (151) |  |  | (229) |  |  |  | (1,440) |  |  | (718) |
Total Net Sales | $ | 2,213 |  |  | $ | 2,529 |  |  | $ | 2,353 |  |  | $ | 2,044 |  |  | $ | 2,847 |  |  |  | $ | 7,095 |  |  | $ | 6,679 |

(a) Refer to "Non-GAAP Financial Measures Definitions"
3

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Condensed Consolidated Balance Sheets

| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |
Assets |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $15 at September 30, 2022 | $ | 29,359 |  |  | $ | 28,398 |  |  | $ | 29,478 |  |  | $ | 29,962 |  |  | $ | 28,550 |  |
Preferred securities, at fair value | 812 |  |  | 839 |  |  | 934 |  |  | 1,028 |  |  | 870 |  |
Equity securities, at fair value | 110 |  |  | 119 |  |  | 139 |  |  | 143 |  |  | 156 |  |
Derivative investments | 108 |  |  | 145 |  |  | 487 |  |  | 816 |  |  | 581 |  |
Mortgage loans, net of allowance for credit losses of $38 at September 30, 2022 | 4,533 |  |  | 4,437 |  |  | 4,217 |  |  | 3,749 |  |  | 3,484 |  |
Investments in unconsolidated affiliates | 2,789 |  |  | 2,668 |  |  | 2,696 |  |  | 2,350 |  |  | 2,022 |  |
Other long-term investments | 537 |  |  | 528 |  |  | 510 |  |  | 489 |  |  | 454 |  |
Short-term investments | 42 |  |  | 823 |  |  | 387 |  |  | 373 |  |  | 258 |  |
Total investments | $ | 38,290 |  |  | $ | 37,957 |  |  | $ | 38,848 |  |  | $ | 38,910 |  |  | $ | 36,375 |  |
Cash and cash equivalents | 1,384 |  |  | 992 |  |  | 1,168 |  |  | 1,533 |  |  | 2,320 |  |
Trade and notes receivables | 2 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 11 |  |
Reinsurance recoverable, net of allowance for credit losses of $19 at September 30, 2022 | 4,806 |  |  | 4,215 |  |  | 3,801 |  |  | 3,610 |  |  | 3,492 |  |
Goodwill | 1,756 |  |  | 1,756 |  |  | 1,756 |  |  | 1,756 |  |  | 1,756 |  |
Prepaid expenses and other assets | 851 |  |  | 1,000 |  |  | 625 |  |  | 613 |  |  | 662 |  |
Lease assets | 8 |  |  | 9 |  |  | 9 |  |  | 8 |  |  | 8 |  |
Other intangible assets, net | 3,438 |  |  | 3,143 |  |  | 2,699 |  |  | 2,234 |  |  | 2,086 |  |
Property and equipment, net | 13 |  |  | 14 |  |  | 14 |  |  | 13 |  |  | 13 |  |
Income taxes receivable | 49 |  |  | 64 |  |  | 46 |  |  | 50 |  |  | — |  |
Deferred tax asset | 713 |  |  | 473 |  |  | 142 |  |  | — |  |  | — |  |
Total assets | $ | 51,310 |  |  | $ | 49,626 |  |  | $ | 49,111 |  |  | $ | 48,730 |  |  | $ | 46,723 |  |

4

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)

Condensed Consolidated Balance Sheets (continued) |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |
Contractholder funds | $ | 39,127 |  |  | $ | 37,707 |  |  | $ | 36,237 |  |  | $ | 35,525 |  |  | $ | 33,988 |  |
Future policy benefits | 5,734 |  |  | 5,177 |  |  | 5,217 |  |  | 4,732 |  |  | 3,985 |  |
Accounts payable and accrued liabilities | 1,289 |  |  | 1,384 |  |  | 1,536 |  |  | 1,297 |  |  | 1,670 |  |
Income taxes payable | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |
Deferred tax liability | — |  |  | — |  |  | — |  |  | 24 |  |  | 9 |  |
Notes payable | 571 |  |  | 573 |  |  | 975 |  |  | 977 |  |  | 979 |  |
Funds withheld for reinsurance liabilities | 2,900 |  |  | 2,277 |  |  | 1,852 |  |  | 1,676 |  |  | 1,508 |  |
Lease liabilities | 14 |  |  | 14 |  |  | 14 |  |  | 14 |  |  | 14 |  |
Total liabilities | $ | 49,635 |  |  | $ | 47,132 |  |  | $ | 45,831 |  |  | $ | 44,245 |  |  | $ | 42,156 |  |
Equity: |  |  |  |  |  |  |  |  |  |
Additional paid-in-capital | 3,159 |  |  | 3,156 |  |  | 2,753 |  |  | 2,750 |  |  | 2,748 |  |
Retained earnings | 1,582 |  |  | 1,468 |  |  | 1,238 |  |  | 1,001 |  |  | 880 |  |
Accumulated other comprehensive (loss) income ("AOCI") | (3,066) |  |  | (2,130) |  |  | (711) |  |  | 734 |  |  | 939 |  |
Total equity | $ | 1,675 |  |  | $ | 2,494 |  |  | $ | 3,280 |  |  | $ | 4,485 |  |  | $ | 4,567 |  |
Total liabilities and equity | $ | 51,310 |  |  | $ | 49,626 |  |  | $ | 49,111 |  |  | $ | 48,730 |  |  | $ | 46,723 |  |

5

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Condensed Consolidated Statements of Earnings

| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Life insurance premiums and other fees (a) | $ | 702 |  |  | $ | 68 |  |  | $ | 594 |  |  | $ | 838 |  |  | $ | 431 |  |  |  | $ | 1,364 |  |  | $ | 557 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and investment income | 340 |  |  | 425 |  |  | 451 |  |  | 511 |  |  | 481 |  |  |  | 1,216 |  |  | 1,341 |  |  |  |  |  |  |  |  |  |  |  |  |
Recognized gains and losses, net | (140) |  |  | (426) |  |  | (297) |  |  | 345 |  |  | 15 |  |  |  | (863) |  |  | 370 |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenues | 902 |  |  | 67 |  |  | 748 |  |  | 1,694 |  |  | 927 |  |  |  | 1,717 |  |  | 2,268 |  |  |  |  |  |  |  |  |  |  |  |  |
Benefits and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefits and other changes in policy reserves | 592 |  |  | (418) |  |  | 208 |  |  | 1,404 |  |  | 185 |  |  |  | 382 |  |  | 734 |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel costs | 46 |  |  | 34 |  |  | 30 |  |  | 36 |  |  | 32 |  |  |  | 110 |  |  | 93 |  |  |  |  |  |  |  |  |  |  |  |  |
Other operating expenses | 28 |  |  | 31 |  |  | 18 |  |  | 29 |  |  | 22 |  |  |  | 77 |  |  | 76 |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization | 87 |  |  | 121 |  |  | 143 |  |  | 65 |  |  | 210 |  |  |  | 351 |  |  | 419 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense | 6 |  |  | 9 |  |  | 8 |  |  | 8 |  |  | 6 |  |  |  | 23 |  |  | 21 |  |  |  |  |  |  |  |  |  |  |  |  |
Total benefits and expenses | 759 |  |  | (223) |  |  | 407 |  |  | 1,542 |  |  | 455 |  |  |  | 943 |  |  | 1,343 |  |  |  |  |  |  |  |  |  |  |  |  |
Pre-tax earnings | 143 |  |  | 290 |  |  | 341 |  |  | 152 |  |  | 472 |  |  |  | 774 |  |  | 925 |  |  |  |  |  |  |  |  |  |  |  |  |
Income tax expense | (28) |  |  | (60) |  |  | (105) |  |  | (31) |  |  | (96) |  |  |  | (193) |  |  | (189) |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings from continuing operations | 115 |  |  | 230 |  |  | 236 |  |  | 121 |  |  | 376 |  |  |  | 581 |  |  | 736 |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) earnings from discontinued operations, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  |  | — |  |  | 8 |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders | $ | 115 |  |  | $ | 230 |  |  | $ | 236 |  |  | $ | 121 |  |  | $ | 373 |  |  |  | $ | 581 |  |  | $ | 744 |  |  |  |  |  |  |  |  |  |  |  |  |

(a) Included within "Escrow, title-related and other fees" in FNF 10-K/ 10-Q.
6

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Reconciliation from Net Earnings to Adjusted Net Earnings (a) (b)
The table below provides a comparison of adjusted net earnings by quarter and year to date per the new adjusted net earnings definition (Refer to "Non-GAAP Financial Measures Definitions"), which no longer includes the alternative investment yield adjustment to normalize alternative investment portfolio returns, versus results previously reported:

| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |
Net earnings from continuing operations | $ | 115 |  |  | $ | 230 |  |  | $ | 236 |  |  | $ | 121 |  |  | $ | 376 |  |  |  | $ | 581 |  |  | $ | 736 |  |  |  |  |  |  |  |  |  |
Non-GAAP adjustments (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recognized (gains) and losses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized and unrealized gains (losses) on fixed maturity available-for-sale securities, equity securities and other invested assets | 70 |  |  | 161 |  |  | 105 |  |  | 2 |  |  | 5 |  |  |  | 336 |  |  | (58) |  |  |  |  |  |  |  |  |  |
Change in allowance for expected credit losses | 6 |  |  | 7 |  |  | — |  |  | — |  |  | (2) |  |  |  | 13 |  |  | (5) |  |  |  |  |  |  |  |  |  |
Change in fair value of reinsurance related embedded derivatives | (94) |  |  | (141) |  |  | (122) |  |  | (11) |  |  | (23) |  |  |  | (357) |  |  | (23) |  |  |  |  |  |  |  |  |  |
Change in fair value of other derivatives and embedded derivatives | (7) |  |  | (4) |  |  | — |  |  | (5) |  |  | (3) |  |  |  | (11) |  |  | (9) |  |  |  |  |  |  |  |  |  |
Recognized (gains) losses, net | (25) |  |  | 23 |  |  | (17) |  |  | (14) |  |  | (23) |  |  |  | (19) |  |  | (95) |  |  |  |  |  |  |  |  |  |
Indexed product related derivatives | (148) |  |  | (198) |  |  | (220) |  |  | 21 |  |  | 14 |  |  |  | (566) |  |  | (167) |  |  |  |  |  |  |  |  |  |
Purchase price amortization | 5 |  |  | 5 |  |  | 6 |  |  | 6 |  |  | 7 |  |  |  | 16 |  |  | 20 |  |  |  |  |  |  |  |  |  |
Transaction costs and other non-recurring items (c) | 4 |  |  | 4 |  |  | — |  |  | — |  |  | (283) |  |  |  | 8 |  |  | (279) |  |  |  |  |  |  |  |  |  |
Amortization of actuarial intangibles and SOP-03-1 reserve offset on non-GAAP adjustments | 33 |  |  | 17 |  |  | 37 |  |  | 13 |  |  | 12 |  |  |  | 87 |  |  | 110 |  |  |  |  |  |  |  |  |  |
Income taxes on non-GAAP adjustments | 28 |  |  | 31 |  |  | 41 |  |  | (5) |  |  | 57 |  |  |  | 100 |  |  | 84 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings (a) | $ | 12 |  |  | $ | 112 |  |  | $ | 83 |  |  | $ | 142 |  |  | $ | 160 |  |  |  | $ | 207 |  |  | $ | 409 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings under previous definition | 105 |  |  | 128 |  |  | 82 |  |  | 90 |  |  | 101 |  |  |  | 315 |  |  | 271 |  |  |  |  |  |  |  |  |  |
Difference in adjusted net earnings to amounts previously reported under old definition | $ | (93) |  |  | $ | (16) |  |  | $ | 1 |  |  | $ | 52 |  |  | $ | 59 |  |  |  | $ | (108) |  |  | $ | 138 |  |  |  |  |  |  |  |  |  |

(a) Refer to "Non-GAAP Financial Measures Definitions."
(b) Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 9.
(c) For the three and nine months ended September 30, 2021, reflects a one-time favorable adjustment to benefits and other changes in policy reserves and depreciation and amortization resulting from an actuarial system conversion which reflects modeling enhancement and other refinements of $284.
7

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Adjusted Net Earnings Statement (a)(b)
The table below provides a comparison of adjusted net earnings by quarter and year to date per the new adjusted net earnings definition (Refer to "Non-GAAP Financial Measures Definitions"), which no longer includes the alternative investment yield adjustment to normalize alternative investment portfolio returns, versus results previously reported:

| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Life insurance premiums and other fees (c) (h) | $ | 687 |  |  | $ | 87 |  |  | $ | 593 |  |  | $ | 840 |  |  | $ | 431 |  |  |  | $ | 1,367 |  |  | $ | 557 |  |  |  |  |  |  |  |  |  |
Interest and investment income | 340 |  |  | 425 |  |  | 451 |  |  | 511 |  |  | 481 |  |  |  | 1,216 |  |  | 1,341 |  |  |  |  |  |  |  |  |  |
Recognized gains and losses, net (d) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  |  |  |  |  |  |  |
Total revenues | 1,027 |  |  | 512 |  |  | 1,044 |  |  | 1,351 |  |  | 912 |  |  |  | 2,583 |  |  | 1,898 |  |  |  |  |  |  |  |  |  |
Benefits and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefits and other changes in policy reserves (e) (h) | 902 |  |  | 223 |  |  | 777 |  |  | 1,028 |  |  | 590 |  |  |  | 1,902 |  |  | 1,011 |  |  |  |  |  |  |  |  |  |
Personnel costs | 46 |  |  | 34 |  |  | 30 |  |  | 36 |  |  | 32 |  |  |  | 110 |  |  | 93 |  |  |  |  |  |  |  |  |  |
Other operating expenses (f) | 24 |  |  | 28 |  |  | 18 |  |  | 29 |  |  | 22 |  |  |  | 70 |  |  | 71 |  |  |  |  |  |  |  |  |  |
Depreciation and amortization (g) | 36 |  |  | 78 |  |  | 64 |  |  | 73 |  |  | 62 |  |  |  | 178 |  |  | 188 |  |  |  |  |  |  |  |  |  |
Interest expense | 6 |  |  | 9 |  |  | 8 |  |  | 8 |  |  | 6 |  |  |  | 23 |  |  | 21 |  |  |  |  |  |  |  |  |  |
Total benefits and expenses | 1,014 |  |  | 372 |  |  | 897 |  |  | 1,174 |  |  | 712 |  |  |  | 2,283 |  |  | 1,384 |  |  |  |  |  |  |  |  |  |
Pre-tax earnings | 13 |  |  | 140 |  |  | 147 |  |  | 177 |  |  | 200 |  |  |  | 300 |  |  | 514 |  |  |  |  |  |  |  |  |  |
Income tax expense | (1) |  |  | (28) |  |  | (64) |  |  | (35) |  |  | (40) |  |  |  | (93) |  |  | (105) |  |  |  |  |  |  |  |  |  |
Adjusted net earnings (a) | $ | 12 |  |  | $ | 112 |  |  | $ | 83 |  |  | $ | 142 |  |  | $ | 160 |  |  |  | $ | 207 |  |  | $ | 409 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings under previous definition | 105 |  |  | 128 |  |  | 82 |  |  | 90 |  |  | 101 |  |  |  | 315 |  |  | 271 |  |  |  |  |  |  |  |  |  |
Difference in adjusted net earnings to amounts previously reported under old definition | $ | (93) |  |  | $ | (16) |  |  | $ | 1 |  |  | $ | 52 |  |  | $ | 59 |  |  |  | $ | (108) |  |  | $ | 138 |  |  |  |  |  |  |  |  |  |

(a) Refer to "Non-GAAP Financial Measures Definitions."
(b) Refer to Adjusted Net Earnings - Significant Income and Expense Items on page 9.
(c) Life insurance premiums and other fees are included within "Escrow, title-related and other fees" in FNF 10-K/ 10-Q, and have been adjusted to remove primarily the impact of unearned revenue on the adjustments below.
(d) Recognized gains and losses (net) have been adjusted to remove the effect of recognized (gains) losses including changes in allowance for expected credit losses and OTTI; changes in fair values of indexed product related derivatives and embedded derivatives, net of hedging costs; and the change in fair value of the reinsurance related embedded derivative.
(e) Benefits and other changes in policy reserves has been adjusted to remove the effects of the changes in fair values of indexed product embedded derivatives, changes in allowance for expected credit losses on reinsurance recoverables, the fair value impacts of assumed reinsurance, those resulting from the implementation of a new actuarial system at September 30, 2021, and changes in the SOP 03-1 reserve resulting from the adjustments above, as applicable.
(f) Other operating expenses have been adjusted to remove the effects of transaction costs.
(g) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, and DSI of the adjustments above, as applicable, purchase price amortization and those resulting from the implementation of a new actuarial valuation system at September 30, 2021.
(h) Includes premiums from agreements related to our new PRT business beginning in the three months ended September 30, 2021.
8

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Adjusted Net Earnings - Significant Income and Expense Items (a)
Each reporting period, we identify significant income and expense items that help explain the trends in our adjusted net earnings, as we believe these items provide further clarity to the financial performance of the business. Those significant income and expense items are reported after actuarial intangibles and SOP 03-1 reserve offsets and taxes.

Three months ended |  |  |  |  |  |  |  |  |  |
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $12 million for the three months ended September 30, 2022 included a $10 million unrealized loss from alternative investments and $5 million of other net expense items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $83 million. |  |  |  |  |  |  |  |  |  |
June 30, 2022 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $112 million for the three months ended June 30, 2022 included a $38 million unrealized gain from alternative investments, $30 million income from actuarial assumption updates and $6 million of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $54 million. |  |  |  |  |  |  |  |  |  |
March 31, 2022 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $83 million for the three months ended March 31, 2022 included a $38 million unrealized gain from alternative investments, $22 million income of CLO redemption gains and other income; partially offset by ($38) million tax valuation allowance expense. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $37 million. |  |  |  |  |  |  |  |  |  |
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $142 million for the three months ended Decmber 31, 2021 included a $118 million unrealized gain from alternative investments and $3 million income of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $66 million. |  |  |  |  |  |  |  |  |  |
September 30, 2021 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $160 million for the three months ended September 30, 2021 included a $108 million unrealized gain from alternative investments and $27 million of CLO redemption gains and other income. Alternative investments net investment income based on management’s long-term expected return of approximately 9% was $49 million. |  |  |  |  |  |  |  |  |  |
Nine months ended |  |  |  |  |  |  |  |  |  |
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $207 million for the nine months ended September 30, 2022 included a $66 million unrealized gain from alternative investments, $42 million income from actuarial assumption updates and other changes in reserves, $20 million of CLO redemption gains and other income; partially offset by ($47) million income tax valuation allowance and other expense items. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $174 million. |  |  |  |  |  |  |  |  |  |
September 30, 2021 |  |  |  |  |  |  |  |  |  |
Adjusted net earnings of $409 million for the nine months ended September 30, 2021 included a $241 million unrealized gain from alternative investments, $36 million of CLO redemption gains and other income, $17 million income from net favorable mortality experience and other reserve changes, and $8 million income from actuarial intangibles unlocking. Alternative investments net investment income based on management’s long-term expected return of approximately 10% was $103 million. |  |  |  |  |  |  |  |  |  |

(a) Refer to Reconciliation from Net Earnings to Adjusted Net Earnings on page 7 and Adjusted Net Earnings Statement on page 8.
9

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)

Adjusted Return on Assets |  |  |  |  |  |  |  |  |
(Dollars) |  |  |  |  |  |
| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |
Net investment income | $ | 340 |  |  | $ | 425 |  |  | $ | 451 |  |  | $ | 511 |  |  | $ | 481 |  |  |  | $ | 1,216 |  |  | $ | 1,341 |  |  |  |  |  |  |  |  |  |
Cost of funds | (250) |  |  | (201) |  |  | (240) |  |  | (261) |  |  | (219) |  |  |  | (691) |  |  | (645) |  |  |  |  |  |  |  |  |  |
Product margin | 90 |  |  | 224 |  |  | 211 |  |  | 250 |  |  | 262 |  |  |  | 525 |  |  | 696 |  |  |  |  |  |  |  |  |  |
Expenses (Operating, interest & taxes) | (78) |  |  | (112) |  |  | (128) |  |  | (108) |  |  | (102) |  |  |  | (318) |  |  | (287) |  |  |  |  |  |  |  |  |  |
Adjusted net earnings (a) (b) | 12 |  |  | 112 |  |  | 83 |  |  | 142 |  |  | 160 |  |  |  | 207 |  |  | 409 |  |  |  |  |  |  |  |  |  |

Adjusted Return on Assets
(Basis Points)

| Three months ended |  |  | Nine months ended
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021
Portfolio earned yield | 4.13 | % |  | 4.57 | % |  | 4.82 | % |  | 5.79 | % |  | 5.82 | % |  |  | 4.13 | % |  | 5.82 | %
Cost of funds | (2.35) | % |  | (2.30) | % |  | (2.57) | % |  | (2.83) | % |  | (2.80) | % |  |  | (2.35) | % |  | (2.80) | %
Product margin | 1.78 | % |  | 2.27 | % |  | 2.25 | % |  | 2.96 | % |  | 3.02 | % |  |  | 1.78 | % |  | 3.02 | %
Expenses (Operating, interest & taxes) | (1.08) | % |  | (1.25) | % |  | (1.36) | % |  | (1.24) | % |  | (1.25) | % |  |  | (1.08) | % |  | (1.25) | %
Adjusted return on assets (a) (b) (c) | 0.70 | % |  | 1.02 | % |  | 0.89 | % |  | 1.72 | % |  | 1.77 | % |  |  | 0.70 | % |  | 1.77 | %
AAUM YTD (a) | $ | 39,246 |  |  | $ | 38,351 |  |  | $ | 37,459 |  |  | $ | 31,974 |  |  | $ | 30,742 |  |  |  | $ | 39,246 |  |  | $ | 30,742 |

(a) Refer to "Non-GAAP Financial Measures Definitions"
(b) Effective this quarter, presentations of adjusted net earnings and adjusted return on assets will no longer include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings.
(c) Adjusted return on assets (Basis Points) is calculated by dividing annualized adjusted net earnings by year-to-date AAUM..
10

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Capitalization and Reconciliation of Total Equity to Total Equity excluding AOCI

| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021
| (Dollars in millions, except per share data)
Capitalization: |  |  |  |  |  |  |  |  |
Notes payable (aggregate principal amount) | 550 |  |  | 550 |  |  | 950 |  |  | 950 |  |  | 950 |
Total Equity | 1,675 |  |  | 2,494 |  |  | 3,280 |  |  | 4,485 |  |  | 4,567 |
Total Capitalization | 2,225 |  |  | 3,044 |  |  | 4,230 |  |  | 5,435 |  |  | 5,517 |
Less: AOCI | (3,066) |  |  | (2,130) |  |  | (711) |  |  | 734 |  |  | 939 |
Total Capitalization excluding AOCI (a) | $ | 5,291 |  |  | $ | 5,174 |  |  | $ | 4,941 |  |  | $ | 4,701 |  |  | $ | 4,578 |
Reconciliation of Total Equity to Total Equity excluding AOCI: |  |  |  |  |  |  |  |  |
Total Equity | 1,675 |  |  | 2,494 |  |  | 3,280 |  |  | 4,485 |  |  | 4,567 |
Less: AOCI | (3,066) |  |  | (2,130) |  |  | (711) |  |  | 734 |  |  | 939 |
Total Equity excluding AOCI (a) | $ | 4,741 |  |  | $ | 4,624 |  |  | $ | 3,991 |  |  | $ | 3,751 |  |  | $ | 3,628 |
Debt-to-Capital Ratios: |  |  |  |  |  |  |  |  |
Total Debt to Capitalization, excluding AOCI (a) | 10.4 | % |  | 10.6 | % |  | 19.2 | % |  | 20.2 | % |  | 20.8 | %

(a) Refer to "Non-GAAP Financial Measures Definitions."
11

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Financial Strength Ratings

|  | A.M. Best |  | S&P |  | Fitch |  | Moody's
Holding Company Ratings |  |  |  |  |  |  |  |
F&G Annuities & Life, Inc. |  |  |  |  |  |  |  |
Issuer Credit / Default Rating |  | Not Rated |  | BBB- |  | BBB |  | Ba2
Outlook |  |  |  | Stable |  | Stable |  | Positive
CF Bermuda Holdings Limited |  |  |  |  |  |  |  |
Issuer Credit / Default Rating |  | Not Rated |  | BBB- |  | BBB |  | Ba1
Outlook |  |  |  | Stable |  | Stable |  | Positive
Fidelity & Guaranty Life Holdings, Inc. |  |  |  |  |  |  |  |
Issuer Credit / Default Rating |  | bbb- |  | BBB- |  | BBB |  | Not Rated
Outlook |  | Stable |  | Stable |  | Stable |  |
Senior Unsecured Notes |  | bbb- |  | BBB |  | BBB |  | Baa2
Outlook |  | Stable |  |  |  |  |  | Stable
Operating Subsidiary Ratings |  |  |  |  |  |  |  |
Fidelity & Guaranty Life Insurance Company |  |  |  |  |  |  |  |
Financial Strength Rating |  | A- |  | A- |  | A- |  | Baa1
Outlook |  | Stable |  | Stable |  | Stable |  | Positive
Fidelity & Guaranty Life Insurance Company of New York |  |  |  |  |  |  |  |
Financial Strength Rating |  | A- |  | A- |  | A- |  | Not Rated
Outlook |  | Stable |  | Stable |  | Stable |  |
F&G Life Re Ltd |  |  |  |  |  |  |  |
Financial Strength Rating |  | Not Rated |  | A- |  | A- |  | Baa1
Outlook |  |  |  | Stable |  | Stable |  | Positive
F&G Cayman Re Ltd |  |  |  |  |  |  |  |
Financial Strength Rating |  | Not Rated |  | Not Rated |  | A- |  | Not Rated
Outlook |  |  |  |  |  | Stable |  |

12

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Assets Under Management Rollforward and Average Assets Under Management

| Three months ended |  |  | Nine months ended |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |
AUM at beginning of period (a) | $ | 40,322 |  |  | $ | 38,601 |  |  | $ | 36,494 |  |  | $ | 34,665 |  |  | $ | 31,760 |  |  |  | $ | 36,494 |  |  | $ | 28,553 |  |  |  |  |  |  |  |
Net new business asset flows | 2,177 |  |  | 2,271 |  |  | 2,223 |  |  | 2,050 |  |  | 2,747 |  |  |  | 6,671 |  |  | 6,343 |  |  |  |  |  |  |  |
Net reinsurance and other transactions | (511) |  |  | (550) |  |  | (116) |  |  | (221) |  |  | 158 |  |  |  | (1,177) |  |  | (231) |  |  |  |  |  |  |  |
AUM at end of period (a) | $ | 41,988 |  |  | $ | 40,322 |  |  | $ | 38,601 |  |  | $ | 36,494 |  |  | $ | 34,665 |  |  |  | $ | 41,988 |  |  | $ | 34,665 |  |  |  |  |  |  |  |
AAUM (a) | $ | 41,081 |  |  | $ | 39,306 |  |  | $ | 37,459 |  |  | $ | 35,699 |  |  | $ | 32,692 |  |  |  | $ | 39,246 |  |  | $ | 30,706 |  |  |  |  |  |  |  |
Yield on AAUM (b) | 3.31 | % |  | 4.32 | % |  | 4.82 | % |  | 5.73 | % |  | 5.89 | % |  | $ | — |  | 4.13 | % |  | 5.82 | % |  |  |  |  |  |  |
(a) Refer to "Non-GAAP Financial Measures Definitions." |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(b) Yield on AAUM reflects significant income and expense items, such as alternative investment mark-to-market, gains on CLO redemptions and bond prepay income. See page 9 for further discussion of these items.

13

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Annuity Account Balance Rollforward (a)

| Three months ended |  |  | Nine months ended |  |  |  |  |  |  |
| September 30, 2022 |  | June 30, 2022 |  | March 31, 2022 |  | December 31, 2021 |  | September 30, 2021 |  |  | September 30, 2022 |  | September 30, 2021 |  |  |  |  |  |  |  |  |
Account balances at beginning of period: | $ | 28,478 |  |  | $ | 27,331 |  |  | $ | 26,673 |  |  | $ | 25,662 |  |  | $ | 24,774 |  |  |  | $ | 26,673 |  |  | $ | 22,992 |  |  |  |  |  |  |  |  |  |
Net deposits | 1,598 |  |  | 1,673 |  |  | 1,073 |  |  | 1,321 |  |  | 1,311 |  |  |  | 4,344 |  |  | 3,966 |  |  |  |  |  |  |  |  |  |
Surrenders, withdrawals, deaths, etc. | (600) |  |  | (596) |  |  | (539) |  |  | (517) |  |  | (625) |  |  |  | (1,735) |  |  | (1,838) |  |  |  |  |  |  |  |  |  |
Net flows | 998 |  |  | 1,077 |  |  | 534 |  |  | 804 |  |  | 686 |  |  |  | 2,609 |  |  | 2,128 |  |  |  |  |  |  |  |  |  |
Premium and interest bonuses | 19 |  |  | 21 |  |  | 22 |  |  | 23 |  |  | 20 |  |  |  | 62 |  |  | 59 |  |  |  |  |  |  |  |  |  |
Fixed interest credited and index credits | 58 |  |  | 91 |  |  | 142 |  |  | 226 |  |  | 217 |  |  |  | 291 |  |  | 590 |  |  |  |  |  |  |  |  |  |
Guaranteed product rider fees | (39) |  |  | (42) |  |  | (40) |  |  | (42) |  |  | (35) |  |  |  | (121) |  |  | (107) |  |  |  |  |  |  |  |  |  |
Account balance at end of period | $ | 29,514 |  |  | $ | 28,478 |  |  | $ | 27,331 |  |  | $ | 26,673 |  |  | $ | 25,662 |  |  |  | $ | 29,514 |  |  | $ | 25,662 |  |  |  |  |  |  |  |  |  |

(a) The rollforward reflects the vested account balance of our fixed index annuities and fixed rate annuities, net of reinsurance.
14

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Annuity Liability Characteristics

|  | Fixed Annuities Account Value |  | Fixed Index Annuities Account Value
|  | September 30, 2022
SURRENDER CHARGE PERCENTAGES: |  |  |  |
No surrender charge |  | $ | 340 |  |  | $ | 2,591 |
0.0% < 2.0% |  | 20 |  |  | 147 |
2.0% < 4.0% |  | 43 |  |  | 959 |
4.0% < 6.0% |  | 857 |  |  | 2,278 |
6.0% < 8.0% |  | 1,502 |  |  | 3,766 |
8.0% < 10.0% |  | 2,841 |  |  | 8,567 |
10.0% or greater |  | — |  |  | 5,603 |
|  | $ | 5,603 |  |  | $ | 23,911 |

|  | Fixed Annuities Account Value |  | Fixed Index Annuities Account Value |  |
|  | September 30, 2022 |  |
CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL: |  |  |  |  |  |
No differential |  | $ | 528 |  |  | $ | 1,373 |  |  |
0.0% - 1.0% |  | 611 |  |  | 1,148 |  |  |
1.0% - 2.0% |  | 1,691 |  |  | 20 |  |  |
2.0% - 3.0% |  | 2,287 |  |  | 11 |  |  |
3.0% - 4.0% |  | 486 |  |  | — |  |  |
Allocated to index strategies |  | — |  |  | 21,359 |  |  |
|  | $ | 5,603 |  |  | $ | 23,911 |  |  |

15

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Summary of Invested Assets by Asset Class

|  | September 30, 2022 |  |  | December 31, 2021
|  | Amortized Cost |  | Fair Value |  | Percent |  |  | Amortized Cost |  | Fair Value |  | Percent
Fixed maturity securities, available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |
United States Government full faith and credit |  | $ | 189 |  |  | $ | 179 |  |  | — | % |  |  | $ | 50 |  |  | $ | 50 |  |  | — | %
United States Government sponsored entities |  | 49 |  |  | 45 |  |  | — | % |  |  | 74 |  |  | 74 |  |  | — | %
United States municipalities, states and territories |  | 1,550 |  |  | 1,268 |  |  | 3 | % |  |  | 1,386 |  |  | 1,441 |  |  | 4 | %
Foreign Governments |  | 186 |  |  | 143 |  |  | 1 | % |  |  | 197 |  |  | 205 |  |  | 1 | %
Corporate securities: |  |  |  |  |  |  |  |  |  |  |  |  |
Finance, insurance and real estate |  | 5,699 |  |  | 4,753 |  |  | 13 | % |  |  | 4,881 |  |  | 5,109 |  |  | 13 | %
Manufacturing, construction and mining |  | 900 |  |  | 705 |  |  | 2 | % |  |  | 880 |  |  | 932 |  |  | 2 | %
Utilities, energy and related sectors |  | 2,894 |  |  | 2,174 |  |  | 6 | % |  |  | 2,881 |  |  | 2,987 |  |  | 8 | %
Wholesale/retail trade |  | 2,612 |  |  | 1,986 |  |  | 5 | % |  |  | 2,503 |  |  | 2,627 |  |  | 7 | %
Services, media and other |  | 3,437 |  |  | 2,563 |  |  | 7 | % |  |  | 3,227 |  |  | 3,349 |  |  | 8 | %
Hybrid securities |  | 784 |  |  | 710 |  |  | 2 | % |  |  | 812 |  |  | 881 |  |  | 2 | %
Non-agency residential mortgage-backed securities |  | 1,066 |  |  | 961 |  |  | 3 | % |  |  | 648 |  |  | 648 |  |  | 2 | %
Commercial mortgage-backed securities |  | 3,213 |  |  | 3,028 |  |  | 8 | % |  |  | 2,669 |  |  | 2,964 |  |  | 7 | %
Asset-backed securities |  | 7,196 |  |  | 6,747 |  |  | 18 | % |  |  | 4,514 |  |  | 4,550 |  |  | 12 | %
CLO securities |  | 4,408 |  |  | 4,097 |  |  | 11 | % |  |  | 4,002 |  |  | 4,145 |  |  | 11 | %
Total fixed maturity securities, available for sale |  | $ | 34,183 |  |  | $ | 29,359 |  |  | 79 | % |  |  | $ | 28,724 |  |  | $ | 29,962 |  |  | 77 | %
Equity securities |  | 1,075 |  |  | 922 |  |  | 2 | % |  |  | 1,135 |  |  | 1,171 |  |  | 3 | %
Alternative investments: |  |  |  |  |  |  |  |  |  |  |  |  |
Private equity |  | 1,300 |  |  | 1,300 |  |  | 3 | % |  |  | 1,181 |  |  | 1,181 |  |  | 3 | %
Real assets |  | 433 |  |  | 420 |  |  | 1 | % |  |  | 339 |  |  | 340 |  |  | 1 | %
Credit |  | 1,069 |  |  | 1,069 |  |  | 3 | % |  |  | 829 |  |  | 829 |  |  | 2 | %
Commercial mortgage loans |  | 2,333 |  |  | 2,017 |  |  | 5 | % |  |  | 2,168 |  |  | 2,265 |  |  | 6 | %
Residential mortgage loans |  | 2,200 |  |  | 1,952 |  |  | 5 | % |  |  | 1,581 |  |  | 1,549 |  |  | 4 | %
Other (primarily derivatives and company owned life insurance) |  | 1,112 |  |  | 645 |  |  | 2 | % |  |  | 971 |  |  | 1,305 |  |  | 3 | %
Short term investments |  | 42 |  |  | 42 |  |  | — | % |  |  | 373 |  |  | 373 |  |  | 1 | %
Total (a) |  | $ | 43,747 |  |  | $ | 37,726 |  |  | 100 | % |  |  | $ | 37,301 |  |  | $ | 38,975 |  |  | 100 | %
(a) Asset duration of 5.0 years and 6.4 years vs. liability duration of 4.9 years and 7.1 years for the periods ending September 30, 2022 and December 31, 2021, respectively.

16

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Credit Quality of Fixed Maturity Securities

|  | September 30, 2022
NAIC Designation |  | Fair Value |  | Percent
1 |  | $ | 17,464 |  |  | 60 | %
2 |  | 9,691 |  |  | 33 | %
3 |  | 1,539 |  |  | 5 | %
4 |  | 532 |  |  | 2 | %
5 |  | 72 |  |  | — | %
6 |  | 61 |  |  | — | %
|  | $ | 29,359 |  |  | 100 | %

|  | September 30, 2022
Rating Agency Rating |  | Fair Value |  | Percent
AAA |  | $ | 1,040 |  |  | 3 | %
AA |  | 2,026 |  |  | 7 | %
A |  | 7,320 |  |  | 25 | %
BBB |  | 7,986 |  |  | 27 | %
Not rated |  | 8,969 |  |  | 31 | %
Total investment grade |  | 27,341 |  |  | 93 | %
BB |  | 1,043 |  |  | 4 | %
B and below |  | 305 |  |  | 1 | %
Not rated |  | 670 |  |  | 2 | %
Total below investment grade |  | 2,018 |  |  | 7 | %
|  | $ | 29,359 |  |  | 100 | %

17

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation

|  | September 30, 2022
Total by collateral type |  | Amortized Cost |  | Fair Value
Government Agency |  | $ | 49 |  |  | $ | 45 |
Prime |  | 954 |  |  | 860 |
Subprime |  | 46 |  |  | 43 |
Alt-A |  | 66 |  |  | 58 |
|  | $ | 1,115 |  |  | $ | 1,006 |
|  | September 30, 2022
Total by NAIC designation |  | Amortized Cost |  | Fair Value
1 |  | $ | 1,087 |  |  | $ | 980 |
2 |  | 20 |  |  | 19 |
3 |  | 5 |  |  | 4 |
4 |  | 1 |  |  | 1 |
5 |  | 2 |  |  | 2 |
|  | $ | 1,115 |  |  | $ | 1,006 |

Top 5 Reinsurers

|  |  |  | September 30, 2022
|  |  |  | Financial Strength Rating
Parent Company/Principal Reinsurers |  | Reinsurance Recoverable (a) |  | AM Best |  | S&P |  | Fitch |  | Moody's
Aspida Life Re Ltd |  | $ | 2,304 |  |  | A- |  | not rated |  | not rated |  | not rated
Wilton Re |  | 1,241 |  |  | A+ |  | not rated |  | A |  | not rated
Somerset Reinsurance Ltd |  | 591 |  |  | A- |  | BBB+ |  | not rated |  | not rated
London Life Reinsurance Co. |  | 100 |  |  | A+ |  | not rated |  | not rated |  | not rated
Security Life of Denver |  | 95 |  |  | not rated |  | A- |  | A- |  | Baa1

(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.
18

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)
Non-GAAP Financial Measures Definitions
The following represents the definitions of non-GAAP measures used by F&G, as an operating segment of FNF:

Adjusted Net Earnings Attributable to Common Shareholders (Adjusted Net Earnings)
Adjusted net earnings attributable to common shareholders (“Adjusted net earnings”) is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations attributable to common shareholders to eliminate:
(i) Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment (“OTTI”) losses, recognized in operations; and the effect of changes in fair value of the reinsurance related embedded derivative;
(ii) Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost;
(iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (“VODA”)) recognized as a result of acquisition activities;
(iv) Transaction costs: the impacts related to acquisition, integration and merger related items;
(v) Other “non-recurring,” “infrequent” or “unusual items”: Management excludes certain items determined to be “non-recurring,” “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years.
(vi) Amortization of actuarial intangibles and SOP 03-1 reserve offset: The intangibles amortization and SOP 03-1 change offsets related to the above mentioned adjustments; and
(vii) Income taxes: the income tax impact related to the above mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction.
While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.
Total Equity excluding AOCI
Total Equity excluding AOCI is based on Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on Total Equity.
Total Capitalization excluding AOCI |  |
Total Capitalization excluding AOCI is based on Total Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts to help assess the capital position of the Company.
Debt-to-Capitalization excluding AOCI |  |
Debt-to-capitalization excluding AOCI ratio is computed by dividing total debt by total capitalization excluding AOCI. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing its capital position.

19

F&G - An Operating Segment of FNF
Financial Supplement - September 30, 2022
(All periods are unaudited)

Non-GAAP Financial Measures Definitions (continued)
Assets Under Management (AUM)
AUM is calculated as the sum of:
(i) total invested assets at amortized cost, excluding derivatives, net of reinsurance qualifying for risk transfer in accordance with GAAP;
(ii) related party loans and investments;
(iii) accrued investment income;
(iv) the net payable/receivable for the purchase/sale of investments; and
(v) cash and cash equivalents excluding derivative collateral at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.
Average Assets Under Management (AAUM) (Quarterly and YTD)
AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.
Adjusted Return on Assets
Adjusted return on assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Return on assets is comprised of net investment income, less cost of funds, and less expenses (including operating expenses, interest expense and income taxes) consistent with our adjusted net earnings definition and related adjustments. Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.
Yield on AAUM
Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
Sales
Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

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