NEW Arrows 640
Executives at a big annuity issuer think the market for multi-year guaranteed annuity contracts looks unappealing.
F&G Annuities & Life plans to reinsure a majority of the risk associated with the new MYGA contracts it sells and focus more on writing fixed indexed annuities and registered index-linked annuities.
Conor Murphy, F&G's chief financial officer, told securities analysts about the change last week during a conference call.
He attributed the company's current view of MYGAs to market conditions and "competitive dynamics."
"We are seeing better relative returns elsewhere," Murphy said. We will continue to write MYGA, but we'll be a little more selective about it."
The company held the call to go over results for the fourth quarter of 2025 with the analysts. The company streamed the call live on the web and posted a recording on its website.
What it means: For retirement savers, MYGA contracts may be a great deal right now. But the great deals might vanish if other companies start to agree with F&G and think returns on the contracts look too low.
Annuity types: The issuer of a MYGA agrees to pay a fixed interest rate for a specific number of years. It's the annuity equivalent of a bank certificate of deposit.
A fixed indexed annuity pays a minimum rate of interest and may pay a higher rate based on the performance of one or more investment indexes.
A RILA contract is registered as a security. It pays a rate tied to the performance of one or more investment indexes. The issuer can charge separately for any protection it provides against loss of account value.
F&G: F&G ranked 15th in terms of overall U.S. individual annuity sales during the first three quarters of 2025, according to LIMRA.
The company increased sales of fixed indexed annuities and RILA contracts to $1.9 billion in the fourth quarter of 2025, from $1.8 billion in the fourth quarter of 2024.
Sales of MYGA contracts fell to $356 million, from $648 million.
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