F&G, a provider of retail annuity and life insurance solutions, has secured preferred stock investment worth $250m from its parent company, Fidelity National Financial (FNF).

The infusion will help bolster the growth of F&G’s insurance company subsidiaries.

In November last year, F&G announced plans to secure investment from FNF, which owned a nearly 85% stake in F&G as of 30 September 2023.

To facilitate this investment, the board of directors of F&G constituted a special committee of independent board members to evaluate and negotiate the investment terms.

As per the deal, FNF will invest $250m in exchange for five million shares of 6.875% Series A Mandatory Convertible Preferred Stock of F&G.

If the shares are not converted earlier at the holder’s discretion, the outstanding share of mandatory convertible preferred stock will be converted into shares of F&G common stock on 15 January 2027.

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By GlobalData

The investment agreement was negotiated on market terms and pricing by the special committee, with Barclays acting as the independent financial advisor and Sullivan & Cromwell as the independent legal counsel.

In November last year, F&G Annuities & Life reported that its board of directors raised the share repurchase authorisation of the company by $25m to a total of $50m. 

Based in Des Moines, Iowa, F&G was founded in 1959. It focuses on offering tailored life insurance and annuity solutions.

The offerings are delivered through a national network comprising financial experts.

F&G became a FNF subsidiary in 2020. Its products are said to have provided protection for approximately 900,000 individuals in the US.