Executive Summary

Q2 2025 revenue was $2.19B, down 7% sequentially but up 3% YoY, while net income to common improved to $141M from a $236M loss in Q1, driven by a sharp reduction in benefits/expenses and favorable market risk benefit and derivative marks .
Distributable Operating Earnings (DOE) of $311M fell 21% QoQ but rose 23% YoY; Annuity pre-tax DOE remained the growth engine at $372M, offset by weaker P&C and higher tax expense .
Sales mix favoring Fixed Index annuities continued: retail FIA sales rose 37% QoQ and 69% YoY to $2.51B; Funding agreements added $400M, though PRT slowed to $262M QoQ (-31%) .
Preferred capital update: Series B preferred rate will reset to 6.30% plus 5-year Treasury on Sep 1, 2025; a potential catalyst for ANG’s cost of capital and investor focus on spread dynamics .

What Went Well and What Went Wrong

Strong annuity production and investment spread: Total gross annuity sales rose 13% QoQ and 30% YoY to $4.28B, with non-GAAP net investment income of $1.24B and net spread of $370M (18% QoQ; 27% YoY) on average invested assets of $83.17B .
Benefits/expenses compression: Total benefits and expenses fell 23% QoQ to $1.99B, supported by a reversal in market risk benefits FV to $(47)M and lower operating expenses ($216M, -21% QoQ) .
Credit quality and balance sheet resilience: AFS fixed maturities are ~94% of the AFS book; corporate debt NAIC 1–2 is 97% of the U.S. corporate portfolio, and commercial MBS NAIC 1 is 85% (June 30) .

Sequential revenue and DOE declines: Revenue fell 7% QoQ as net investment income moderated to $1.16B, and DOE declined 21% QoQ to $311M due to lower segment pre-tax DOE and higher tax expense .
PRT slowdown: PRT sales decreased 31% QoQ to $262M (and 4% YoY), reflecting market cadence and pricing discipline amid rate/credit cycles .
Derivative/insurance mark volatility persists: Change in FV of insurance-related derivatives fell to $131M from $199M, while MRB FV swung to $(47)M from $361M in Q1, underscoring continued earnings sensitivity to hedge/valuation dynamics .

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Total revenue ($USD Millions)	$2,115	$3,714	$2,339	$2,186
Net income attributable to common ($USD Millions)	$244	$638	$(236)	$141
Net investment income ($USD Millions)	$924	$1,232	$1,275	$1,160
Operating expenses ($USD Millions)	$335	$214	$275	$216
Net income margin (%)	—	—	—	6.95%*
EBITDA margin (%)	—	—	—	10.38%*

Values with asterisk retrieved from S&P Global (no document citations available).

Net Income Margin % Q2 2025: 6.9533%; EBITDA Margin % Q2 2025: 10.3842% (S&P Global).

Segment (DOE, pre-tax)

Segment DOE ($USD Millions)	Q2 2024	Q1 2025	Q2 2025
Annuity	$291	$407	$372
Property & Casualty (P&C)	$(10)	$64	$(4)
Life	$56	$32	$40
Corporate & other DOE	$(27)	$(24)	$(29)
Tax expense	$(57)	$(87)	$(68)
Distributable Operating Earnings	$253	$392	$311

KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Non-GAAP net investment income ($USD Millions)	$740	$1,238	$1,238
Cost of funds ($USD Millions)	$449	$924	$868
Net investment spread ($USD Millions)	$291	$314	$370
Average invested assets ($USD Millions)	$70,233	$80,139	$83,173

Metric	Period	Previous Guidance	Current Guidance	Change
Corporate guidance (revenue/EPS/margins)	FY/Q2 2025	Not provided	Not provided	Maintained: No formal guidance
Preferred Series B dividend rate	Effective Sep 1, 2025	6.625% fixed-rate reset	Resets to 6.30% + 5-year UST	Update provided
Dividends (preferred)	Q2 2025	—	$11M preferred dividends/redemption noted	Informational

Note: Company did not furnish formal revenue/EPS/margin guidance in the 8-K financial supplement .

Note: No Q2 2025 earnings call transcript was available in the filings catalog.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Annuity sales mix (FIA/Fixed Rate)	FIA $1.80B (Q4); $1.84B (Q1) with Fixed Rate decelerating to $1.04B	FIA $2.51B; Fixed Rate $1.03B; Variable $80M	Strong shift to FIA; Fixed Rate stable; Variable up materially
Funding agreements & PRT cadence	Funding agreements $500M (Q1); PRT $382M (Q1)	Funding $400M; PRT $262M	Funding steady; PRT slower QoQ
Cost of funds/hedging dynamics	Cost of funds rose to $924M (Q1) from $748M (Q4)	Cost of funds moderated to $868M	Improving sequentially
Market risk benefits (MRB) FV	MRB FV +$361M (Q1); prior quarter volatility	MRB FV $(47)M	Negative FV reduces expenses; volatility persists
Credit quality (NAIC 1–2)	Corporate debt NAIC 1–2 ~97%; CMBS NAIC 1 87% (Q1)	Corporate NAIC 1–2 97%; CMBS NAIC 1 85% (Q2)	High quality sustained
Capital structure (preferred reset)	Series B reset noted in Q1 footnote	Series B reset to 6.30% + 5Y UST effective 9/1/25	Upcoming rate reset focus

The Company furnished a quarterly financial supplement via 8-K 2.02, emphasizing non-GAAP measures used to assess operating performance, including DOE and cost of funds metrics (definitions provided) .
Quote (Non-GAAP policy): “Management believes the use of these non-GAAP measures together with the relevant US GAAP measures provides information that may enhance a user’s understanding of our results of operations and the underlying profitability drivers of our business.”
CFO attestation: The 8-K was signed by CFO & EVP Reza Syed on August 18, 2025 .

No Q2 2025 earnings call transcript available; therefore, Q&A themes and clarifications are not accessible in the filings set for this period.

Wall Street consensus for EPS and revenue was unavailable via S&P Global for Q2 2025; the S&P feed did not return consensus counts or means for EPS or revenue. As a result, estimate comparisons cannot be made. Values retrieved from S&P Global.
Actual revenue recognized for Q2 2025: $2.186B (company 8-K supplement), consistent with S&P’s “actual” field . Values retrieved from S&P Global.

Sequential improvement in profitability driven by lower benefits/expenses and improved cost of funds; DOE remains robust but was down QoQ, suggesting some normalization after Q1’s elevated marks .
Strong FIA-led sales and scaled average invested assets underpin spread economics; continued discipline in PRT and steady funding agreements diversify growth vectors .
Earnings remain sensitive to MRB and derivative FV changes; volatility in marks can materially swing quarterly results—risk-aware positioning is warranted .
Credit-quality metrics remain solid with high NAIC 1–2 exposure and manageable non-performing mortgage loans ($100M, ~1%) .
Preferred capital update (Series B reset on 9/1/25) is a near-term catalyst influencing investor focus on dividend cost and spread management .
Absence of formal guidance and call commentary limits forward visibility; focus on operational KPIs (sales mix, cost of funds, spread) and statutory ratings strength .
Near-term trading: watch for rate path impacts on MRB/derivative marks and annuity option costs; medium-term thesis: spread capture via FIA growth and asset deployment against high-quality credit book .