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Section 1: 8-K (8-K)

Document




 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K

 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): February 28, 2018


FGL HOLDINGS
(Exact name of registrant as specified in its charter)


 
 
 
 
 
 
Cayman Islands
 
001-37779
 
98-1354810
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
 
Sterling House
16 Wesley Street
Hamilton HM CX, Bermuda

 
 
(Address of principal executive offices)
 
(Zip Code)
 
Registrant's telephone number, including area code: (800) 445-6758
Former name or former address, if changed since last report.


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
     
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


 
Item 2.02.
Results of Operations and Financial Condition.
 
 The following information, including the Exhibits referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
On February 28, 2018, FGL Holdings (the “Company”) issued a press release announcing its results of operations for the quarter ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Report. In addition, the Company is including as Exhibit 99.2 to this report the related quarterly financial supplement.


Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits
 
 
 
 
 
Exhibit
No.
  
 
Description
 
 
99.1
 

99.2
 

 





 

 
 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
FIDELITY & GUARANTY LIFE
 
 
 
 
 
 
/s/ Eric L. Marhoun
 
 
Eric L. Marhoun
 
 
General Counsel and Secretary
 
 
 
 
Dated: February 28, 2018


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


FGL Holdings Reports Fourth Quarter 2017 Results
GEORGE TOWN, Cayman Islands: February 28, 2018 - FGL Holdings (NYSE: FG), a leading provider of annuities and life insurance, today announced financial results for the fourth calendar quarter of 2017.
On November 30, 2017, the company completed its previously announced merger of Fidelity & Guaranty Life with CF Corporation
Annuity sales totaled $623 million in the quarter, including $462 million of fixed indexed annuities (FIA)
Average assets under management increased to $24.7 billion, up 25 percent over prior year primarily due to merger and purchase accounting effects, including the recognition of a $1.2 billion net unrealized gain and $1.7 billion purchase of Front Street Re
In February 2018, the company completed a $2.7 billion block trade as part of its planned portfolio repositioning activities, resulting in $40 million higher annualized net investment income; yield increase was 150 basis points on the block trade and 20 basis points on the overall portfolio
FGL Holdings reported operating results for the first period following the completion of the merger transaction. As a result of acquisition accounting (purchase accounting or PGAAP), financial results for periods after the closing of the transaction are generally not comparable to the results of prior periods. Certain metrics, such as sales and policyholder account values, are not affected by PGAAP and are comparable to prior period data.
"In the fourth quarter, we finalized the merger with CF Corporation, began the relaunch of our company and worked to position it for future success," said Chris Littlefield, President and CEO of FGL Holdings. "We are pleased with the consistent and positive trends in assets under management and adjusted operating income, while net income was down largely due to the impact of tax reform and a one-time adjustment to the net deferred tax asset. Our FIA sales were $462 million in the current quarter, up 9 percent from the sequential quarter. 2017 FIA sales were $1.8 billion, down 9 percent from the prior year and in line with our plan and the overall industry decline. FIA sales across the industry were impacted by the uncertainty surrounding the Department of Labor fiduciary rule as well as from strong equity market performance, which can reduce consumer demand for safe money products. We are making good progress on repositioning our investment portfolio with the help of Blackstone and expect net investment spread to increase meaningfully over the next 12 to 24 months."
Because the merger transaction occurred during the quarter, information herein shows both portions of the current quarter. As such, the reader may find it helpful to view the entire three month results of the current quarter when comparing prior periods. Concurrent with the 10-K filing as of December 31, 2017, the company will report on a calendar year basis. The company presents the tables and financial results herein as follows:
FGL (the Predecessor Company)--October 1 through November 30, 2017
FG (the Successor Company)--December 1, 2017 and subsequent periods
The table below reconciles reported after-tax net (loss) to adjusted operating income (AOI) (Unaudited).
(In millions)
 
Period from December 1 to December 31, 2017
 
 
Period from October 1 to November 30, 2017
 
Period from October 1 to December 31, 2016 (Unaudited)
Reconciliation from Net (Loss) Income to AOI(1):
 
FG (Successor)
 
 
FGL (Predecessor)
 
FGL
Net (loss) income
 
$
(102
)
 
 
$
28

 
$
108

Effect of investment losses (gains), net of offsets
 

 
 
(6
)
 
(1
)
Effect of change in FIA embedded derivative discount rate, net of offsets
 
6

 
 
(10
)
 
(92
)
Effect of change in fair value of reinsurance related embedded derivative, net of offsets
 

 
 
(1
)
 
(10
)
Effect of integration, merger related & other non-operating items
 
(8
)
 
 
29

 

Net impact of Tax Cuts and Jobs Act
 
131

 
 

 

Effects of tax impact of affiliated reinsurance embedded derivative
 
(20
)
 
 

 

Tax impact of adjusting items
 
(4
)
 
 
(4
)
 
36

Adjusted operating income
 
$
3

 
 
$
36

 
$
41






(1)
Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.

The Tax Cuts and Jobs Act of 2017 (Tax Reform) was enacted on December 22, 2017, reducing the statutory federal income tax rate from 35 percent to 21 percent effective January 1, 2018. The impact of Tax Reform was a reduction of net income for the quarter of $131 million, or $0.61 per share, due to the revaluation of net deferred tax assets at the time of enactment. The company excluded the net impact of Tax Reform from adjusted operating income. For 2016, the GAAP effective tax rate (ETR) was 35% and, for 2017, the underlying ETR was 31% primarily excluding the previously noted deferred tax asset write-off.
The current quarter results for December 2017 included net unfavorable items of ($11) million or ($0.05) per diluted share. The current quarter results for October and November 2017 included net favorable items of $5 million or $0.08 per diluted share. The prior year quarter included net favorable items of $4 million, or $0.07 per diluted share. All periods reflect the weighted average diluted shares then outstanding. The table below details notable items in each period.
 
 
 
 
 
 
 
Current Year Month of December 2017 (FG)
 
 
 
 
 
  Net unfavorable adjustment related to higher intangible amortization due to equity market fluctuations
 
($9) million
 
 
 
  Unfavorable actual to expected mortality within single premium immediate annuity (SPIA) product line
 
($2) million
 
 
Current Year Months of October and November 2017 (FGL)
 
 
 
 
 
  Net favorable adjustment related to lower DAC amortization due to unlocking
 
$4 million
 
 
 
  Favorable actual to expected mortality within the SPIA product line
 
$1 million
 
 
Prior Year Quarter (FGL)
 
 
 
 
 
  Favorable actual to expected mortality within the SPIA product line
 
$2 million
 
 
 
  Higher net investment income from bond prepayment income
 
$2 million
 
 
 
 
 
 
 

Summary Financial Results (Unaudited)
 
 
December 31, 2017
 
December 31, 2016
(In millions, except per share data)
 
FG (Successor)
 
FGL
Fixed indexed annuity sales (1) (2)
 
$
1,779

 
$
1,946

Total annuity sales (1) (2)
 
$
2,525

 
$
2,684

Average assets under management (1)
 
$
24,722

 
$
19,768

Weighted average basic shares
 
214.4

 
58.3

Weighted average diluted shares
 
214.4

 
58.4

Total common shares outstanding
 
214.4

 
59.0

Book value per common share
 
$
7.45

 
$
29.70

Book value per common share, excluding AOCI (1)
 
$
7.10

 
$
27.11







 
 
Period from December 1 to December 31, 2017 (Unaudited)
 
 
Period from October 1 to November 30, 2017 (Unaudited)
 
Period from October 1 to December 31, 2016 (Unaudited)
(In millions, except per share data)
 
FG (Successor)
 
 
FGL (Predecessor)
 
FGL
Net investment spread - FIA (1)
 
2.67
%
 
 
3.05
%
 
3.00
%
Net investment spread - All products (1)
 
2.01
%
 
 
2.44
%
 
2.29
%
Net (loss) income
 
$
(102
)
 
 
$
28

 
$
108

Net (loss) income per diluted share
 
$
(0.49
)
 
 
$
0.47

 
$
1.85

Adjusted operating income (“AOI”) (1)
 
$
3

 
 
$
36

 
$
41

AOI available to common shareholders per diluted share (1)
 
$

 
 
$
0.62

 
$
0.70

See footnotes below.

Sales Results
In the discussions that follow, sales for the fourth quarter of 2017 are compared to those of the fourth quarter of 2016.
For the current quarter, sales of the company's core fixed indexed annuity (FIA) product were $462 million, a 16 percent decrease over the prior year quarter. This decline is due to intentional pricing actions to achieve profitability and capital targets, the effects of Department of Labor (DOL) fiduciary rule and reduced appetite for safe money products given strong equity market performance. FIA sales increased 9 percent as compared to the third quarter of 2017. FIA sales levels in recent quarters reflect strong and productive relationships with our distribution partners. FIA sales were $1.8 billion for the calendar year 2017, a decrease of 9 percent over the prior year and in line with company's objectives.
Sales of multi-year guarantee annuities (MYGA) were $161 million in the current quarter as compared to $97 million in the same period last year. Total annuity sales were $623 million for the fourth quarter, a decrease of 4 percent compared to the fourth quarter of 2016. For the calendar year, total annuity sales were $2.5 billion, a 6 percent decrease over the prior year.
Indexed universal life (IUL) sales in the quarter were $7 million compared to $17 million last year. The decline in IUL sales reflects the company's focus on quality of new business and pricing discipline to achieve profitability and capital targets. IUL sales were $36 million for the current calendar year compared to $60 million in the prior year.
Investment Portfolio Performance
The investment portfolio is performing well and in line with expectations. Asset purchases over the latest 12 months were at an average new money yield of 5.12%. Asset purchases during the fourth quarter were $1.1 billion at an average new money yield of 4.73 percent, primarily reflecting purchases in investment grade corporate bonds and structured securities. The average NAIC rating for the portfolio is approximately 1.6.
Following the merger, the company implemented purchase accounting whereby it reset all balance sheet amounts to fair market value. Overall, fair value balance sheet amounts have an impact on earnings as they change and are amortized over time. As of the date of the merger, the company completed its mark-to-market valuation of the investment portfolio, a non-cash adjustment, resulting in a net unrealized gain of approximately $1.2 billion. This premium will be amortized over time, net of offsets for value of business acquired (VOBA) amortization and taxes. Average assets under management (AAUM) were $24.7 billion at December 31, 2017, reflecting an increase of $3.9 billion over the sequential quarter comprised of the previously noted $1.2 billion purchase accounting mark-to-market, the inclusion of acquired $1.9 billion Front Street Re and FGL Holdings, and $0.8 billion other miscellaneous items. A reconciliation of AAUM can be found in the non-GAAP measurements section of this release.
Net investment income was $266 million in the fourth calendar quarter of 2017, up $5 million or 2 percent from the sequential quarter. Net investment income was ($7) million lower in December, before amortization of intangibles and taxes, from purchase accounting amortization of the portfolio net unrealized gain which is non-cash in nature. The average earned yield on the total portfolio in the quarter was 4.31 percent, down approximately 70 basis points from the sequential quarter primarily due to the significant increase in AAUM noted above, the inclusion of only one month of net investment income for Front Street Re and the $7 million of unfavorable premium amortization related to the fair value mark on the investment portfolio.






Net investment spread across all product lines was 201 basis points in the fourth quarter of 2017 compared to an historical sequential quarter spread of 244 basis points. The decline was due to the effects of purchase accounting on the earned yield noted above, while interest credited and option costs were consistent with prior periods. Net investment spreads for fixed indexed annuities declined from approximately 300 basis points for the historical sequential quarter to 267 basis points in the fourth quarter of 2017 due to the purchase accounting impacts on earned yield. On a Statutory basis, the yield on the investment portfolio remained unchanged on an economic basis at 5.17 percent in the fourth calendar quarter of 2017.
Capital Management & Rating Trends
GAAP book value per common share at December 31, 2017 was $7.45 on a reported basis; book value per common share excluding accumulated other comprehensive income (AOCI) was $7.10, with 214.4 million common shares outstanding as of December 31, 2017. For book value per common share excluding accumulated other comprehensive income, the unfavorable impact of one-time Tax Reform effects was ($0.61) per share and the unfavorable impact of merger transaction costs was ($0.36) per share.
During the quarter, the Company refinanced and increased its unsecured revolving credit facility to $250 million from $150 million. The remaining undrawn amount available is $145 million.
Strong capital position with estimated combined statutory risk-based capital (RBC) ratio of approximately 500% at year-end.
Most rating agencies have completed their review of our credit ratings following the merger
S&P Global provided a two notch upgrade on the financial strength rating for Fidelity & Guaranty Life Insurance Company to 'BBB+', with Stable rating outlook, and a two notch upgrade on the issuer credit rating for Fidelity & Guaranty Life Holdings, Inc. to 'BB+', with a Positive rating outlook.
Fitch upgraded the issuer credit rating for Fidelity & Guaranty Life Holdings, Inc. one notch to ‘BB+’ and the senior note rating one notch to ‘BB’.
A.M. Best outlook remains “Under Review with developing implications” at this time.
Appointment of Tom Sanzone to Board of Directors
The Company announced the appointment of Tom Sanzone to its board of directors effective as of February 28. Tom serves as Chief Executive Officer of Black Knight, Inc. (NYSE: BKI), a premier provider of software and data and analytics to the mortgage and consumer loan, real estate and capital markets vertical. Tom has more than 25 years of experience in the financial services industry. Prior to joining Black Knight (formerly known as Black Knight Financial Services), Tom was Executive Vice President at Booz Allen Hamilton, where he led the firm’s commercial financial services business. Tom also held senior level positions at Merrill Lynch, Credit Suisse, Citigroup and Salomon Brothers. In 2015, HousingWire recognized Tom with its HW Vanguard Award, and the Jacksonville Business Journal selected Tom for its Ultimate CEO award. In 2016, Tom was also recognized by Ernst & Young as EY Entrepreneur of the Year - Florida (Technology Category). Tom earned his bachelor’s degree in computer science from Hofstra University, which presented him in 2014 with the Alumnus of the Year award.
Timing of the Company’s Form 10-K Filing

The Company has elected to delay the filing of its Form 10K in order to finalize the disclosure of the recently completed merger between CF Corp and FGL, as well as the related activities required under purchase accounting and a shift of its reporting period from fiscal to calendar year-end.
The Company plans to file a Form 12b-25 with the Securities and Exchange Commission on March 2. This filing provides the Company an additional 15 day period in which to submit its Form 10-K and still be deemed a timely filer.

The Company does not anticipate any changes from the results reported in this earnings release.





FGL HOLDINGS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - (Unaudited)
(In millions, except share data)
 
December 31,
2017
 
 
September 30,
2017
 
September 30,
2016
 
Successor
 
 
Predecessor
 
Predecessor
ASSETS

 
 

 

Investments:

 
 

 

Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $21,475; September 30, 2017 - $20,063; September 30, 2016 - $18,521)
$
21,590

 
 
$
21,154

 
$
19,411

Equity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $764; September 30, 2017 - $733; September 30, 2016 - $640)
761

 
 
773

 
683

Derivative investments
492

 
 
413

 
276

Short term investments
25

 
 

 

Commercial mortgage loans
548

 
 
547

 
595

Other invested assets
188

 
 
185

 
60

Total investments
23,604

 
 
23,072

 
21,025

Related party loans

 
 
71

 
71

Cash and cash equivalents
1,215

 
 
885

 
864

Accrued investment income
211

 
 
231

 
214

Funds withheld for reinsurance receivables, at fair value
756

 
 

 

Reinsurance recoverable
2,506

 
 
3,375

 
3,464

Intangibles, net
844

 
 
1,129

 
1,026

Deferred tax assets, net
163

 
 

 

Goodwill
470

 
 

 

Other assets
160

 
 
202

 
371

Total assets
$
29,929

 
 
$
28,965

 
$
27,035

 

 
 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
 

 

 

 
 

 

Contractholder funds
$
21,844

 
 
$
20,792

 
$
19,251

Future policy benefits, including $728 at fair value at December 31, 2017
4,751

 
 
3,412

 
3,467

Funds withheld for reinsurance liabilities
2

 
 
1,083

 
1,172

Liability for policy and contract claims
78

 
 
67

 
55

Debt
307

 
 
300

 
300

Revolving credit facility
105

 
 
105

 
100

Deferred tax liability, net

 
 
62

 
10

Other liabilities
867

 
 
897

 
746

Total liabilities
27,954

 
 
26,718

 
25,101

 

 
 

 

Commitments and contingencies

 
 

 

 

 
 

 

 Shareholders' equity:

 
 

 

Preferred stock ($.0001 par value, 100,000,000 shares authorized, 375,000 shares issued and outstanding at December 31, 2017; $.01 par value, 50,000,000 shares authorized, no shares issued at September 30, 2017 and September 30, 2016, respectively)

 
 

 

Common stock ($.0001 par value, 800,000,000 shares authorized, 214,370,000 issued and outstanding at December 31, 2017; $.01 par value, 500,000,000 shares authorized, 58,933,415 and 58,956,127 issued and outstanding at September 30, 2017 and September 30, 2016, respectively)

 
 
1

 
1

Additional paid-in capital
2,060

 
 
716

 
714

Retained earnings (Accumulated deficit)
(160
)
 
 
1,000

 
792

Accumulated other comprehensive income
75

 
 
543

 
439

Treasury stock, at cost (no shares at December 31, 2017; 568,847 shares at September 30, 2017; 537,613 shares at September 30, 2016)

 
 
(13
)
 
(12
)
Total shareholders' equity
1,975

 
 
2,247

 
1,934

Total liabilities and shareholders' equity
$
29,929

 
 
$
28,965

 
$
27,035






FGL HOLDINGS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - (Unaudited)
(In millions, except per share data)

 
 
 
 
 
 
 
 
Year ended September 30,
 
Period from December 1 to December 31, 2017 (Unaudited)
 
 
Period from October 1 to November 30, 2017 (Unaudited)
 
Period from October 1 to December 31, 2016 (Unaudited)
 
2017
 
2016
 
2015
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
3

 
 
$
7

 
$
11

 
$
42

 
$
70

 
$
58

Net investment income
92

 
 
174

 
240

 
1,005

 
923

 
851

Net investment gains (losses)
42

 
 
146

 
51

 
316

 
19

 
(37
)
Insurance and investment product fees and other
28

 
 
35

 
38

 
167

 
127

 
89

Total revenues
165

 
 
362

 
340

 
1,530

 
1,139

 
961

Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Benefits and other changes in policy reserves
141

 
 
227

 
20

 
843

 
791

 
578

Acquisition and operating expenses, net of deferrals
16

 
 
51

 
28

 
137

 
119

 
113

Amortization of intangibles
1

 
 
36

 
123

 
193

 
54

 
64

        Total benefits and expenses
158

 
 
314

 
171

 
1,173

 
964

 
755

Operating income
7

 
 
48

 
169

 
357

 
175

 
206

Interest expense
(2
)
 
 
(4
)
 
(6
)
 
(24
)
 
(22
)
 
(24
)
Income before income taxes
5

 
 
44

 
163

 
333

 
153

 
182

Income tax expense
(107
)
 
 
(16
)
 
(55
)
 
(110
)
 
(56
)
 
(64
)
        Net (loss) income
$
(102
)
 
 
$
28

 
$
108

 
$
223

 
$
97

 
$
118

Less Preferred stock dividend
2

 
 

 

 

 

 

Net income (loss) available to common shareholders
$
(104
)
 
 
$
28

 
$
108

 
$
223

 
$
97

 
$
118

 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.49
)
 
 
$
0.48

 
$
1.85

 
$
3.83

 
$
1.67

 
$
2.03

Diluted
$
(0.49
)
 
 
$
0.47

 
$
1.85

 
$
3.83

 
$
1.66

 
$
2.02

Weighted average common shares used in computing net income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
214,370,000

 
 
58,341,112

 
58,280,532

 
58,319,517

 
58,275,013

 
58,117,884

Diluted
214,370,000

 
 
58,494,043

 
58,366,009

 
58,415,187

 
58,578,163

 
58,360,841

 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividend per common share
$

 
 
$
0.07

 
$
0.07

 
$
0.26

 
$
0.26

 
$
0.26







RECONCILIATION OF BOOK VALUE PER COMMON SHARE EXCLUDING AOCI (Unaudited)

(In millions, except per share data)
December 31, 2017
 
 
September 30, 2017
 
September 30, 2016
Reconciliation to total shareholder's equity:
Successor
 
 
Predecessor
 
Predecessor
Total shareholder's equity
$
1,975

 
 
$
2,247

 
$
1,934

     Less: AOCI
75

 
 
543

 
439

     Less: Preferred equity
377

 
 

 

Total shareholder's equity excluding AOCI
$
1,523

 
 
$
1,704

 
$
1,495

 
 
 
 
 
 
 
Total common shares outstanding
214.4

 
 
58.9

 
59.0

Weighted average common shares outstanding - basic
214.4

 
 
58.3

 
58.3

Weighted average common shares outstanding - diluted
214.4

 
 
58.4

 
58.6

 
 
 
 
 
 
 
Book value per common share
$
7.45

 
 
$
38.13

 
$
32.80

Book value per common share, excluding AOCI(1)
$
7.10

 
 
$
28.92

 
$
25.36


RECONCILIATION OF ASSETS UNDER MANAGEMENT (AAUM) (Unaudited)

 
 
 
 
(In billions)
 
 
AAUM
AAUM as of September 30, 2017
 
 
$
20.8

Purchase accounting mark-to-market valuation of investment portfolio
 
 
1.2

Inclusion of acquired Front Street Re and FGL Holdings
 
 
1.9

Sales volumes
 
 
0.3

Other items
 
 
0.5

AAUM as of December 31, 2017
 
 
$
24.7



 
 
 
 
 
Footnotes:
(1)
Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.
(2)
Reflects 11-months Predecessor and 1-month Successor for December 31, 2017.


Purchase Accounting
On November 30, 2017, Fidelity & Guaranty Life completed its merger transaction with CF Corp, emerging as FGL Holdings. As of the merger date, the company applied the acquisition method of accounting (purchase accounting or PGAAP), including the initial recognition of most of FGL's and Front Street Re assets and liabilities at fair value, and the recognition of goodwill and other merger-related intangible assets. Prior period results are not restated for the new basis of accounting, which is used in the preparation of future financial statements and related disclosures.

Non-GAAP Measures
Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Reconciliations of such measures to the most comparable GAAP measures are included herein.
AOI is a non-GAAP economic measure we use to evaluate financial performance each period. AOI is calculated by adjusting net income (loss) to eliminate (i) the impact of net investment gains including other than temporary impairment ("OTTI") losses recognized in operations, but excluding gains and losses on derivatives hedging our indexed annuity policies, (ii) the effect of changes in the interest rates used to discount the FIA embedded derivative liability, (iii) the effect of change in fair value of affiliated reinsurance embedded derivative, (iv) the effect of integration, merger related & other non-operating items, (v) impact of





extinguishment of debt, and (vi) net impact from Tax Cuts and Jobs Act. Adjustments to AOI are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these adjustments is measured using an effective tax rate of 35%, as appropriate. While these adjustments are an integral part of the overall performance of FG, market conditions and/or the non-recurring or non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, Management considers using a measure which excludes their impact is effective in analyzing the trends of our operations. 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.

Net investment spread is the excess of net investment income earned over the sum of interest credited to policyholders and the cost of hedging our risk on FIA policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return, inclusive of hedging costs, provided to policyholders.
AAUM is the sum of (i) total invested assets at amortized cost, excluding derivatives; (ii) related party loans and investments; (iii) accrued investment income; (iv) funds withheld at fair value; (v) the net payable/receivable for the purchase/sale of investments and (iv) 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.
Book Value per Common Share including and excluding AOCI is calculated as Common Shareholders’ Equity and Common Shareholders Equity Excluding AOCI divided by the total number of shares of common stock outstanding. Management considers this to be a useful measure internally and for investors and analysts to assess the capital position of the Company.
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. For GAAP purposes annuity and IUL sales are recorded as deposit liabilities (i.e. contract holder funds). 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.
While management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace GAAP financial results and should be read in conjunction with those GAAP results.
Conference Call and Earnings Release
This press release and the financial supplement will be posted to the Company’s website at investors.fglife.bm.

FGL Holdings will conduct a conference call on Thursday, March 1, 2018 at 10:00 a.m. ET to discuss fourth quarter 2017 results.
The event can be accessed the following ways:
For internet webcast, visit investors.fglife.bm/investors at least 15 minutes prior to the start of the call to register.
For conference call, dial 877-883-0383 (U.S. callers) or 412-902-6506 (International callers) approximately 10 minutes prior to the start of the call. The access code is 6742331.
A replay of the event via webcast will be available after the call at investors.fglife.bm/investors.
A replay of the event via telephone will be available by dialing 877-344-7529 (U.S. callers) or 412-317-0088 (International callers). The access code is 10116560.
The replay information will be available through March 22, 2018.

About FGL Holdings
FGL Holdings, an insurance holding company, helps middle-income Americans prepare for retirement. Through its subsidiaries, the company is a leading provider of annuity and life insurance products. FGL Holdings, domiciled in the Cayman Islands, trades on the New York Stock Exchange under the ticker symbol FG. For more information, please visit www.fglife.bm.
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This document contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements. These statements are based on the beliefs and assumptions of FG's management and the management of FG's subsidiaries (including target businesses). Forward-looking statements are generally identifiable by use of the words





"believes," "expects," "intends," "anticipates," "plans," "seeks," "estimates," "projects," "may," "will," "could," "might," or "continues" or similar expressions. Factors that could cause actual results, events and developments to differ include, without limitation:  the accuracy of FG's assumptions and estimates; FG's and its insurance subsidiaries' ability to maintain or improve financial strength ratings; FG's ability to manage its business in a highly regulated industry; regulatory changes or actions; the impact of FG's reinsurers failing to meet their assumed obligations; restrictions on FG's ability to use captive reinsurers; the impact of interest rate fluctuations; changes in the federal income tax laws and regulations; litigation (including class action litigation), enforcement investigations or regulatory scrutiny; the performance of third parties; the loss of key personnel; telecommunication, information technology and other operational systems failures; the continued availability of capital; new accounting rules or changes to existing accounting rules; general economic conditions; FG's ability to protect its intellectual property; the ability to maintain or obtain approval of the Iowa Insurance Department and other regulatory authorities as required for FG's operations; and other factors discussed in FG’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, and Fidelity & Guaranty Life's Annual Report on Form 10-K for the year ended September 30, 2017, which can be found at the SEC's website www.sec.gov.
All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. FG does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results, except as required by law.


Investor Contact:
Diana Hickert-Hill
FGL Holdings
Investors@fglife.bm
410-487-0992


Source: FGL Holdings


(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit
Exhibit 99.2

392388156_fglletterhead.jpg

Investor Supplement
Period from December 1 to December 31, 2017
(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. 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.

Fidelity & Guaranty Life (“FGL”; NYSE: FGL), a former majority owned subsidiary of HRG Group, Inc. (“HRG”; NYSE: HRG), completed the merger with CF Corporation (NASDAQ: CFCO) (“CF Corp”) and its related entities (“CF Entities”), on November 30, 2017. As a result of the Business Combination completed November 30, 2017, CF Corp changed their name to FGL Holdings (NYSE: FG). For accounting purposes, FGL Holdings was determined to be the acquirer and FGL was deemed the acquired party and accounting predecessor. In addition, on November 30, 2017 CF Corp acquired all of the issued and outstanding shares of Front Street Re (Cayman) Ltd. and Front Street Re. Ltd (collectively "FSR Companies"). Our financial statement presentation includes the financial statements of FGL and its subsidiaries as “Predecessor” for the periods prior to the completion of the Business Combination and FGL Holdings, including the consolidation of FGL and its subsidiaries and FSR Companies, as "Successor" for periods from and after the Closing Date. Our Consolidated Financial Statements are presented: (i) unaudited as of December 31, 2017 and for the period December 1, 2017 to December 31, 2017 (Successor); (ii) unaudited for the period October 1, 2017 to November 30, 2017 (Predecessor); (iii) for the unaudited period October 1, 2016 to December 31, 2016 (Predecessor); and (iv) as of September 30, 2017 and 2016, and for each of the years in the three year period ended September 30, 2017 (Predecessor).

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures commonly used in our industry that, together with the relevant GAAP measures, may enhance a user’s ability to analyze the Company's operating performance and capital position for the periods presented. These measures should be considered supplementary to our results in accordance with GAAP and should not be viewed as a substitute for the GAAP measures. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP financial measures to those of other companies.





FGL HOLDINGS
Financial Supplement
December 31, 2017
(All periods are unaudited)
 
Page
 
Consolidated Financial Highlights
Condensed Consolidated Balance Sheets
Quarterly Summary - Most Recent 5 Quarters
Non-GAAP Definitions
Summary of Adjustments to Arrive at AOI
Notable items Included in Net Income and AOI
 
Capitalization/Book Value per Share
Net Investment Spread Results
Sales Results by Product
 
 
B. Product Summary
 
 
 
C. Investment Summary
 
 
 
D. Counterparty Risk
 
 
 
 
 


FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


FGL HOLDINGS
Consolidated Financial Highlights

 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions, except per share data)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
$
3

 
 
$
7

 
$
16

 
$
12

 
$
3

 
$
11

Net investment income
92

 
 
174

 
261

 
257

 
247

 
240

Net investment gains (losses)
42

 
 
146

 
117

 
67

 
81

 
51

Insurance and investment product fees and other
28

 
 
35

 
41

 
44

 
44

 
38

Total revenues
165

 
 
362

 
435

 
380

 
375

 
340

 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

Adjusted Operating Income ("AOI") (1)
$
3

 
 
$
36

 
$
63

 
$
37

 
$
36

 
$
41

Dividends on preferred stock
(2
)
 
 

 

 

 

 

AOI available to common shareholders
1

 
 
36

 
63

 
37

 
36

 
41

 
 
 
 
 
 
 
 
 
 
 
 
 
Per Unrestricted Common Shares Amounts:
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders
$
(0.49
)
 
 
$
0.48

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

AOI available to common shareholders (1)
$

 
 
$
0.62

 
$
1.08

 
$
0.63

 
$
0.62

 
$
0.70

Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders
$
(0.49
)
 
 
$
0.47

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

AOI available to common shareholders (1)
$

 
 
$
0.62

 
$
1.08

 
$
0.63

 
$
0.62

 
$
0.70

 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Paid to Common Shareholders Per Share
$

 
 
$
0.065

 
$
0.065

 
$
0.065

 
$
0.065

 
$
0.065

 
 
 
 
 
 
 
 
 
 
 
 
 
At Period End
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,215

 
 
$
924

 
$
885

 
$
799

 
$
887

 
$
632

Total investments
$
23,604

 
 
$
23,326

 
$
23,072

 
$
22,627

 
$
21,813

 
$
21,076

Total assets
$
29,929

 
 
$
29,227

 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

Contractholder funds
$
21,844

 
 
$
21,083

 
$
20,792

 
$
20,342

 
$
20,052

 
$
19,486

Future policy benefits
$
4,751

 
 
$
3,401

 
$
3,412

 
$
3,423

 
$
3,435

 
$
3,453

Debt (including revolving credit facility)
$
412

 
 
$
405

 
$
405

 
$
405

 
$
405

 
$
400

Total equity
$
1,975

 
 
$
2,284

 
$
2,247

 
$
2,113

 
$
1,908

 
$
1,752

Total equity excluding Accumulated Other Comprehensive Income (AOCI)
$
1,900

 
 
$
1,729

 
$
1,704

 
$
1,646

 
$
1,617

 
$
1,599

Common shares issued and outstanding
214.37

 
 
59.00

 
58.93

 
58.99

 
58.99

 
58.98

 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Book value per common share (1)
$
7.45

 
 
$
38.71

 
$
38.13

 
$
35.82

 
$
32.34

 
$
29.70

GAAP Book value per common share excluding AOCI (1)
$
7.10

 
 
$
29.31

 
$
28.92

 
$
27.90

 
$
27.41

 
$
27.11

Debt to total Capitalization excluding AOCI (1)
17.8
%
 
 
19.0
%
 
19.2
%
 
19.7
%
 
20.0
%
 
20.0
%
Return on average common shareholders' equity excluding AOCI (1)
N/M

 
 
6.5
%
 
14.6
%
 
7.8
%
 
5.5
%
 
27.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 

3

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory Book value per share
$
4.26

 
 
$
25.91

 
$
25.91

 
$
25.18

 
$
26.06

 
$
22.43

Statutory Book value per share excluding IMR and AVR
$
6.92

 
 
$
34.99

 
$
34.99

 
$
34.30

 
$
35.28

 
$
32.18

(1) Refer to "Non-GAAP Financial Measures" for further details
N/M - Not meaningful

4

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

FGL HOLDINGS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
ASSETS
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $21,475; September 30, 2017 - $20,063; September 30, 2016 - $18,521)
$
21,590

 
 
$
21,154

 
$
20,766

 
$
20,052

 
$
19,437

Equity securities, available-for-sale, at fair value (amortized cost: December 31, 2017 - $764; September 30, 2017 - $733; September 30, 2016 - $640)
761

 
 
773

 
774

 
712

 
696

Derivative investments
492

 
 
413

 
361

 
351

 
314

Short term investments
25

 
 

 

 

 

Commercial mortgage loans
548

 
 
547

 
550

 
579

 
582

Other invested assets
188

 
 
185

 
176

 
119

 
47

Total investments
23,604

 
 
23,072

 
22,627

 
21,813

 
21,076

Related party loans

 
 
71

 
71

 
71

 
71

Cash and cash equivalents
1,215

 
 
885

 
799

 
887

 
632

Accrued investment income
211

 
 
231

 
204

 
225

 
201

Funds withheld for reinsurance receivables at fair value
756

 
 

 

 

 

Reinsurance recoverable
2,506

 
 
3,375

 
3,390

 
3,426

 
3,444

Intangibles, net
844

 
 
1,129

 
1,097

 
1,184

 
1,228

Deferred tax assets, net
163

 
 

 

 
87

 
68

Goodwill
470

 
 

 

 

 

Other assets
160

 
 
202

 
214

 
204

 
232

Total assets
$
29,929

 
 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY

 
 
 
 
 
 
 
 
 
Contractholder funds
$
21,844

 
 
$
20,792

 
$
20,342

 
$
20,052

 
$
19,486

Future policy benefits, including $728 at fair value at December 31, 2017
4,751

 
 
3,412

 
3,423

 
3,435

 
3,453

Funds withheld for reinsurance liabilities
2

 
 
1,083

 
1,106

 
1,134

 
1,142

Liability for policy and contract claims
78

 
 
67

 
57

 
60

 
53

Debt
307

 
 
300

 
300

 
300

 
300

Revolving credit facility
105

 
 
105

 
105

 
105

 
100

Deferred tax liability, net

 
 
62

 
11

 

 

Other liabilities
867

 
 
897

 
945

 
903

 
666

Total liabilities
27,954

 
 
26,718

 
26,289

 
25,989

 
25,200

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

 
December 31,
2017
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
 
 
 
 
 
 
 
 
 
 
Shareholders' equity:

 
 
 
 
 
 
 
 
 
Preferred stock ($.0001 par value, 100,000,000 shares authorized, 375,000 shares issued and outstanding at December 31, 2017; $.01 par value, 50,000,000 shares authorized, no shares issued at September 30, 2017 and September 30, 2016, respectively)

 
 

 

 

 

Common stock ($.0001 par value, 800,000,000 shares authorized, 214,370,000 issued and outstanding at December 31, 2017; $.01 par value, 500,000,000 shares authorized, 58,933,415 and 58,956,127 issued and outstanding at September 30, 2017 and September 30, 2016, respectively)

 
 
1

 
1

 
1

 
1

Additional paid-in capital
2,060

 
 
716

 
716

 
715

 
715

Retained earnings (Accumulated deficit)
(160
)
 
 
1,000

 
942

 
914

 
896

Accumulated other comprehensive income
75

 
 
543

 
467

 
291

 
153

Treasury stock, at cost (no shares at December 31, 2017; 568,847 shares at September 30, 2017; 537,613 shares at September 30, 2016)

 
 
(13
)
 
(13
)
 
(13
)
 
(13
)
Total shareholders' equity
1,975

 
 
2,247

 
2,113

 
1,908

 
1,752

Total liabilities and shareholders' equity
$
29,929

 
 
$
28,965

 
$
28,402

 
$
27,897

 
$
26,952

 
 
 
 
 
 
 
 
 
 
 
Equity attributable to preferred shareholders (1)
$
377

 
 
$

 
$

 
$

 
$

(1) Refer to "Non-GAAP Financial Measures" for further details


6

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)

Quarterly Summary - Most Recent 5 Quarters
 
One Month Ended
 
 
Two Months Ended
 
Three Months Ended
 
December 31,
2017
 
 
November 30,
2017
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
Successor
 
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
Predecessor
 
(Unaudited)
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Dollars in millions, except per share data)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional life insurance premiums
$
3

 
 
$
6

 
$
10

 
$
7

 
$

 
$
10

Life contingent immediate annuity

 
 
1

 
6

 
5

 
3

 
1

Net investment income
92

 
 
174

 
261

 
257

 
247

 
240

Net investment gains (losses)
42

 
 
146

 
117

 
67

 
81

 
51

Surrender charges
3

 
 
10

 
9

 
9

 
9

 
7

Cost of insurance fees and other income
25

 
 
25

 
32

 
35

 
35

 
31

Total revenues
165

 
 
362

 
435

 
380

 
375

 
340

Benefits and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Traditional life insurance policy benefits and change in future policy benefits
7

 
 
12

 
18

 
21

 
11

 
22

Life contingent immediate annuity benefits and changes in future policy benefits
11

 
 
13

 
26

 
20

 
18

 
18

Interest sensitive and index product benefits and changes in future policy benefits
123

 
 
202

 
276

 
194

 
239

 
(20
)
General expenses
11

 
 
47

 
30

 
35

 
30

 
25

Acquisition expenses
27

 
 
44

 
65

 
72

 
81

 
92

Deferred acquisition costs ("DAC")
(22
)
 
 
(40
)
 
(59
)
 
(67
)
 
(78
)
 
(89
)
Amortization of intangibles
1

 
 
36

 
(14
)
 
51

 
33

 
123

        Total benefits and expenses
158

 
 
314

 
342

 
326

 
334

 
171

Operating income
7

 
 
48

 
93

 
54

 
41

 
169

Interest expense
(2
)
 
 
(4
)
 
(6
)
 
(6
)
 
(6
)
 
(6
)
Income before income taxes
5

 
 
44

 
87

 
48

 
35

 
163

Income tax expense
(107
)
 
 
(16
)
 
(26
)
 
(16
)
 
(13
)
 
(55
)
Net (loss) income
$
(102
)
 
 
$
28

 
$
61

 
$
32

 
$
22

 
$
108

Less Preferred stock dividend
2

 
 

 

 

 

 

Net (loss) income available to common shareholders
(104
)
 
 
28

 
61

 
32

 
22

 
108

 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income available to common shareholders per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.49
)
 
 
$
0.48

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

Diluted
$
(0.49
)
 
 
$
0.47

 
$
1.06

 
$
0.54

 
$
0.38

 
$
1.85

Weighted average common shares used in computing net income per common share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
214.37

 
 
$
58.34

 
58.34

 
58.34

 
58.33

 
58.28

Diluted
214.37

 
 
$
58.49

 
58.48

 
58.44

 
58.38

 
58.37



7

FGL HOLDINGS
Financial Supplement - December 31, 2017
(unaudited)


Reconciliation from Net (Loss) Income to Adjusted Operating Income ("AOI ")