F&G Annuities And Life: Addressing Market Fears Over Its Private Credit Exposure

Seeking Profits5.36K FollowersFollow5ShareSavePlay(12min)CommentsSummaryF&G Annuities & Life (FG) remains a strong buy despite a 43% share price decline and heightened private credit fears.FG's low-risk liabilities enable higher portfolio risk, but private credit and software sector exposure drive investor caution and valuation discounts.FG's book value ex-AOCI is $44.43/share, with shares trading at a ~$20 discount, pricing in mass private credit losses beyond management's recessionary estimates.I see fair value at ~$35/share, supported by manageable credit risk, a secure 4.2% dividend yield, and a new $100M buyback authorization. William_Potter/iStock via Getty Images Shares of F&G Annuities & Life (FG) have been a terrible performer over the past year, losing 43% of their value. The simple truth is that I have been decidedly wrong on this stock, moving to a “buy” last This article was written bySeeking Profits5.36K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.