Fidelity & Guaranty Posts Drop in Fiscal Fourth-Quarter Net on Investments
November 20, 2015 by David Pilla, news editor, BestWeek: David.Pilla@ambest.com
DES MOINES, Iowa – Fidelity & Guaranty Life Insurance Co.’s fiscal fourth-quarter net income fell to $30 million from $39 million a year earlier as the life and annuities firm reported net investment losses of $112 million versus gains of $40 million a year earlier.
Net income for the fiscal year ended Sept. 30 fell to $118 million from $163 million a year earlier. Fiscal fourth-quarter revenue fell to $150 million from $272 million.
Beijing-based Anbang Insurance Group plans to acquire Fidelity & Guaranty Life in a deal set to close in the second quarter of 2016 (Best’s News Service, Nov. 9, 2015). The transaction will make Anbang one of the largest insurers by market share in fixed indexed annuity products in the United States, the companies said in a joint statement.
Fidelity & Guaranty wrote $2.52 billion in direct individual annuity premiums in 2014, comprising 85.3% of its total premiums for the year, according to BestLink. Fidelity & Guaranty is a top 10 writer of fixed index annuities in the United States.
Fidelity & Guaranty Life Insurance Co. currently has a Best’s Financial Strength Rating of B++ (Good).
Shares of Fidelity & Guaranty Life closed at $25.70 on the afternoon of Nov. 18, up 0.51% from the previous close.
