JACKSONVILLE,
Fla., Feb. 23,
2022 /PRNewswire/ -- Fidelity National
Financial, Inc. (NYSE:FNF) (the Company), a leading provider of
title insurance and transaction services to the real estate and
mortgage industries and a leading provider of insurance solutions
serving retail annuity and life customers and institutional clients
through FNF's wholly-owned subsidiary, F&G, today reported
financial results for the fourth quarter and twelve months (full
year) ended December 31, 2021. FNF acquired F&G on
June 1, 2020 and financial results
for full year 2020 include F&G results for the partial year
period subsequent to the acquisition.
Net earnings available to common
shareholders for the fourth quarter of
$533 million, or $1.87 per diluted share (per share), compared to
$801 million, or $2.73 per share, for the fourth quarter of
2020. Full year net earnings available to common shareholders
of $2.4 billion, or $8.44 per share, compared to $1.4 billion, or $4.99 per share, for the year ended
December 31, 2020. Net earnings available to common
shareholders include mark-to-market effects, non-recurring items
and discontinued operations; all of which are excluded from
adjusted net earnings available to common shareholders.
Adjusted net earnings available to common shareholders
(adjusted net earnings) for the fourth quarter of
$616 million, or $2.16 per share, compared to $588 million, or $2.01 per share, for the fourth quarter of
2020. Full year adjusted net earnings of $2.3 billion, or $7.90 per share, compared to $1.5 billion, or $5.34 per share, for the year ended
December 31, 2020.
Company Highlights
- Strong profitability: Adjusted net
earnings increased 5% over fourth quarter 2020 and 49% over full
year 2020, driven by Title's record top line performance and
industry leading margins, F&G's record sales boosting asset
growth, and strong execution across the team
- Robust continued demand across mortgage
market: Total revenue of $4.8 billion and $15.6
billion for the quarter and full year, respectively. Total
revenue, excluding recognized gains and losses, of $4.6 billion for the fourth quarter, a 43%
increase over fourth quarter 2020, and a record $15.3 billion for the full year, a 49% increase
over full year 2020 primarily driven by strong Title segment
performance
- Strong growth for F&G continues
: F&G total sales of $2.2 billion for the fourth quarter, a 50%
increase over fourth quarter 2020, and a record $9.6 billion for the full year, a 98% increase
over full year 2020 from expansion into new channels
- Significant deployable capital: FNF
has repurchased 2.1 million shares for a total $104 million, at an average price of $50.70 per share, in the fourth quarter.
For the full year 2021, FNF has repurchased 10.2 million
shares for a total $461 million, at
an average price of $45.22 per share,
and paid common dividends at $1.56
per share for a total $446 million
reflecting 16% growth over full year 2020. FNF ended the year with
$1.5 billion in cash and short-term
liquid investments at the holding company
- Ratings momentum: FNF ratings were
placed on Rating Watch Positive by Fitch Ratings and F&G
ratings were placed on Review for Upgrade by Moody's Investors
Service in the fourth quarter
- Executive management transition
: In January, announced Mike Nolan appointed Chief Executive Officer and
Randy Quirk appointed Executive
Vice-Chairman of the Board of Directors, effective February 1, 2022
William P. Foley, II,
commented, "We have continued to deliver outstanding results as we
increased revenues 27% to $4.8
billion in the fourth quarter, while our full year 2021
revenues grew 45% to a record $15.6
billion. Our Title business continued to perform at
record levels despite the decline in refinance volumes and
F&G's expansion into new institutional channels positions us
well for continued strong asset growth. Importantly, our
results validate our vision of putting these two dynamic businesses
together as we build a company that has a resilient financial model
designed to deliver earnings through varying market
cycles."
Mr. Foley concluded, "Our disciplined strategy is focused
on returning capital to shareholders, while making strategic
investments in our businesses to drive profitable growth and
attractive returns for all of our stakeholders. Our holding
company cash balance held steady at $1.5
billion, generated from a record level of net cash from
operations in recent quarters. During the fourth quarter, we
deployed $231 million through our
quarterly dividend and share repurchase program. Over the
last year, we have paid $446 million
in common dividends and repurchased $461
million of shares as we returned over $900 million of capital to our
shareholders."
Summary Financial
Results
|
|
|
|
|
|
|
|
Quarterly
|
Year to
Date
|
(in millions, except per share
data)
|
4Q21
|
|
4Q20
|
2021
|
|
2020
|
Total
revenue
|
$
4,797
|
|
$
3,770
|
$
15,643
|
|
$
10,778
|
F&G total
sales1
|
$
2,195
|
|
$
1,459
|
$
9,592
|
|
$
4,837
|
Total
assets
|
$
60,690
|
|
$ 50,455
|
$
60,690
|
|
$
50,455
|
Adjusted pre-tax
title margin
|
22.4 %
|
|
22.7 %
|
21.7 %
|
|
19.6 %
|
Net earnings
available to common shareholders
|
$
533
|
|
$
801
|
$
2,422
|
|
$
1,427
|
Net earnings
available to common shareholders per share
|
$
1.87
|
|
$
2.73
|
$
8.44
|
|
$
4.99
|
Adjusted Net
Earnings1
|
$
616
|
|
$
588
|
$
2,268
|
|
$
1,526
|
Adjusted Net Earnings
per share1
|
$
2.16
|
|
$
2.01
|
$
7.90
|
|
$
5.34
|
Weighted average
common diluted shares
|
285
|
|
293
|
287
|
|
286
|
Total common shares
outstanding
|
284
|
|
291
|
284
|
|
291
|
______________________
|
1 See
definition of non-GAAP measures below
|
Fourth Quarter and Full Year 2021 Consolidated Financial
Results
Net earnings available to common shareholders for the
fourth quarter of 2021 of $533 million, or $1.87 per share, compared to $801 million, or $2.73 per share, for the fourth quarter of
2020. Net earnings available to common shareholders for the
fourth quarter of 2021 includes $65
million net unfavorable mark-to-market effects and
$18 million other unfavorable items;
all of which are excluded from adjusted net earnings.
Net earnings available to common shareholders for the
full year of 2021 of $2.4
billion, or $8.44 per share,
compared to $1.4 billion, or
$4.99 per share, for the full year
2020. Net earnings available to common shareholders of 2021
includes $224 million one-time
favorable adjustment from F&G's actuarial system conversion and
$6 million net favorable
mark-to-market effects, partially offset by $84 million other unfavorable items; all of which
are excluded from adjusted net earnings.
Adjusted net earnings for the fourth quarter of
2021 of $616
million, or $2.16 per share,
compared to $588 million, or
$2.01 per share, for the fourth
quarter of 2020. The increase from the prior year quarter was
driven by Title's record revenue and strong pre-tax title margin,
as well as F&G's sales boosting asset growth.
Adjusted net earnings for the full year 2021
of $2.3 billion, or
$7.90 per share, compared to
$1.5 billion, or $5.34 per share, for the full year 2020. The
increase from the prior year was driven by Title's top line
performance and industry leading margins, F&G's record sales
boosting asset growth, and strong execution across the
team.
Segment Financial Results
Title
This segment consists of the operations of the Company's
title insurance underwriters and related businesses, which provide
core title insurance and escrow and other title-related services
including trust activities, trustee sales guarantees, and home
warranty products. This segment also includes the Company's
transaction services business, which includes other title-related
services used in the production and management of mortgage
loans.
Fourth Quarter 2021 Highlights
Mike Nolan, Chief Executive
Officer, said, "We delivered record adjusted pre-tax title earnings
of $717 million and an adjusted
pre-tax title margin of 22.4% in the fourth quarter. Momentum
in our residential purchase and commercial revenue more than offset
the ongoing and expected contraction in refinance volumes, which
hold a significantly lower fee per file. Looking ahead to 2022, we
are well-positioned for success with scale advantage as the
nationwide market leader, technology driven innovation, growth and
efficiency, and our disciplined operating
strategy."
- Total revenue of $3.1 billion, versus $3.0
billion in total revenue in the fourth quarter of
2020
- Total revenue, excluding recognized gains and
losses, of $3.2
billion, a 16% increase over $2.8
billion for the fourth quarter of 2020
-
- Direct title premiums of $1.0 billion, a 21% increase over fourth quarter
of 2020
- Agency title premiums of $1.4 billion, a 23% increase over fourth quarter
of 2020
- Commercial revenue of $546 million, a 70% increase over fourth quarter
of 2020
- Purchase orders opened increased 2%
on a daily basis and purchase orders closed increased 4% on a daily
basis over fourth quarter of 2020
- Refinance orders opened decreased 44%
on a daily basis and refinance orders closed decreased 39% on a
daily basis from fourth quarter of 2020
- Commercial orders opened increased
13% and commercial orders closed increased 17% over fourth quarter
of 2020
- Total fee per file of $3,023 for the fourth quarter, a 43% increase
over fourth quarter of 2020
Fourth Quarter 2021 Financial
Results
- Industry-leading pre-tax title margin
of 18.5% and adjusted pre-tax title margin of 22.4%
for the fourth quarter of 2021, compared to 29.4% and 22.7%,
respectively, in the fourth quarter of 2020
- Pre-tax earnings from continuing operations in
Title for the fourth quarter of $567 million, compared to $896 million for the fourth quarter of
2020
- Adjusted pre-tax earnings in Title
for the fourth quarter of $717
million compared to $624
million for the fourth quarter of 2020. The increase from
the prior year quarter was driven by record revenue and strong
pre-tax title margin
Full year 2021 Financial Results
- Total revenue, excluding recognized gains and
losses , of $11.9
billion for the full year, a 29% increase over $9.2 billion for the full year 2020
- Industry-leading pre-tax title margin
of 18.6% and adjusted pre-tax title margin of 21.7%
for the full year, compared to 20.0% and 19.6%, respectively, for
the full year 2020; primarily driven by the Company's market
leading position combined with noteworthy execution
- Pre-tax earnings from continuing operations in
Title for the full year of $2.1 billion compared to $1.9 billion for the full year 2020
- Adjusted pre-tax earnings in Title
for the full year of $2.6
billion compared to $1.8
billion for the full year 2020. The increase from the prior
year was driven by both record revenue and pre-tax title
margin
F&G
This segment consists of operations of FNF's wholly-owned
subsidiary F&G, a leading provider of insurance solutions
serving retail annuity and life customers and funding agreement and
pension risk transfer institutional clients.
Chris Blunt, President and
Chief Executive Officer of F&G, commented, "The benefits from
our diversified growth strategy generated fourth quarter sales of
$2.2 billion and full year sales of
$9.6 billion, nearly double the prior
year. We ended the year with assets under management of
$36.5 billion and are well ahead of
our goal of doubling assets under management over five years, as
outlined at the time of our acquisition by FNF. Looking ahead
to 2022, we are well-positioned for sustainable growth in sales and
assets under management while consistently managing
spread."
Fourth Quarter 2021
- Total sales of $2.2 billion for the fourth quarter, an increase
of 50% over the fourth quarter 2020, reflecting successful
execution of F&G's diversified growth strategy with a
disciplined approach to pricing
- Retail sales of $1.4 billion for the fourth quarter, an increase
of 5% over the fourth quarter 2020, driven by steady growth in the
independent agent, bank and broker dealer channels
- Institutional sales of $811 million includes $776
million of pension risk transfer transactions and funding
agreement issuance of $35 million for
the fourth quarter, compared to $100
million funding agreement issuance for the fourth quarter
2020; reflects entrance into new markets
- Average assets under management (AAUM)
of $35.7 billion for the fourth
quarter, up 9% from $32.7 billion in
the sequential quarter and 28% from $27.9
billion in the fourth quarter 2020, driven by net new
business asset flows.
- Net earnings for F&G for the
fourth quarter of $121 million
compared to $137 million for the
fourth quarter of 2020
- Adjusted net earnings for F&G for
the fourth quarter of $90 million
compared to $128 million for the
fourth quarter of 2020 which included $68
million of net favorable notable items. Adjusted net
earnings excluding notable items were $87
million in the fourth quarter, an increase of $27 million compared to $60 million in the prior year quarter, driven by
growth in assets under management
Full Year 2021
- Total sales record of $9.6 billion for the full year, an increase of
98% over the full year 2020, reflecting execution of the Company's
diversified growth strategy with a disciplined approach to
pricing
- Retail sales record of $6.1 billion for the full year, an increase of
43% over the full year 2020, driven by ongoing growth in
independent agent distribution and continued expansion in bank and
broker dealer channels
- Institutional sales of $3.5 billion for the full year, including funding
agreement issuances of $2.3 billion
and pension risk transfer transactions of nearly $1.2 billion; reflects entrance into new
markets
- Average assets under management (AAUM)
of $31.9 billion for the full
year. Ending assets under management (AUM) of $36.5 billion at December
31, 2021
- Net earnings for F&G for the full
year of $865 million
- Adjusted net earnings for F&G for
the full year of $361 million
primarily driven by strong growth in assets under
management
Conference Call
We will host a call with investors and analysts to discuss
fourth quarter and full year 2021 FNF results on Thursday, February 24, 2022, beginning at
10:00 a.m. Eastern Time. A live
webcast of the conference call will be available on the Events and
Multimedia page of the FNF Investor Relations website at
fnf.com. The conference call replay will be available via
webcast through the FNF Investor Relations website at fnf.com. The
telephone replay will be available from 1:00
p.m. Eastern Time on February 24,
2022, through March 3, 2022,
by dialing 1-844-512-2921 (USA) or
1-412-317-6671 (International). The access code will be 13726447.
An expanded quarterly financial supplement providing F&G
segment results is available on the FNF Investor Relations
website.
About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading
provider of title insurance and transaction services to the real
estate and mortgage industries. FNF is the
nation's largest title insurance company through its title
insurance underwriters - Fidelity National Title, Chicago Title,
Commonwealth Land Title, Alamo Title and National Title of
New York - that collectively issue
more title insurance policies than any other title company in
the United States.
More information about FNF can be found at
fnf.com.
About F&G
F&G is part of the FNF family of companies. F&G is
committed to helping Americans turn their aspirations into reality.
F&G is a leading provider of insurance solutions serving retail
annuity and life customers and institutional clients and is
headquartered in Des Moines, Iowa.
For more information, please visit fglife.com.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the
term used to refer to the standard framework of guidelines for
financial accounting. GAAP includes the standards, conventions, and
rules accountants follow in recording and summarizing transactions
and in the preparation of financial statements. In addition to
reporting financial results in accordance with GAAP, this earnings
release includes non-GAAP financial measures, which the Company
believes are useful to help investors better understand its
financial performance, competitive position and prospects for the
future. These non-GAAP measures include, adjusted net earnings per
share, adjusted pre-tax title earnings, adjusted pre-tax title
earnings as a percentage of adjusted title revenue (adjusted
pre-tax title margin), adjusted net earnings attributable to common
shareholders (adjusted net earnings), net investment spread, assets
under management (AUM), average assets under management (AAUM) and
sales.
Management believes these non-GAAP financial measures may
be useful in certain instances to provide additional meaningful
comparisons between current results and results in prior operating
periods. Our non-GAAP measures may not be comparable to
similarly titled measures of other organizations because other
organizations may not calculate such non-GAAP measures in the same
manner as we do.
The presentation of this financial information is not
intended to be considered in isolation of or as a substitute for,
or superior to, the financial information prepared and presented in
accordance with GAAP. By disclosing these non-GAAP financial
measures, FNF believes it offers investors a greater understanding
of, and an enhanced level of transparency into, the means by which
the Company's management operates the Company.
Any non-GAAP measures should be considered in context with
the GAAP financial presentation and should not be considered in
isolation or as a substitute for GAAP net earnings, net earnings
attributable to common shareholders, net earnings per share, or any
other measures derived in accordance with GAAP as measures of
operating performance or liquidity. Further, FNF's non-GAAP
measures may be calculated differently from similarly titled
measures of other companies. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
are provided below.
Forward-Looking Statements and Risk
Factors
This press release contains forward-looking statements
that involve a number of risks and uncertainties. Statements that
are not historical facts, including statements regarding our
expectations, hopes, intentions or strategies regarding the future
are forward-looking statements. Forward-looking statements are
based on management's beliefs, as well as assumptions made by, and
information currently available to, management. Because such
statements are based on expectations as to future financial and
operating results and are not statements of fact, actual results
may differ materially from those projected. We undertake no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. The risks
and uncertainties which forward-looking statements are subject to
include, but are not limited to: the potential impact of the
consummation of the F&G transaction on relationships, including
with employees, suppliers, customers and competitors; changes in
general economic, business, political and COVID-19 conditions,
including changes in the financial markets; weakness or adverse
changes in the level of real estate activity, which may be caused
by, among other things, high or increasing interest rates, a
limited supply of mortgage funding or a weak U. S. economy; our
potential inability to find suitable acquisition candidates; our
dependence on distributions from our title insurance underwriters
as a main source of cash flow; significant competition that F&G
and our operating subsidiaries face; compliance with extensive
government regulation of our operating subsidiaries; and other
risks detailed in the "Statement Regarding Forward-Looking
Information," "Risk Factors" and other sections of FNF's Form 10-K
and other filings with the Securities and Exchange Commission
(SEC).
FNF-E
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months Ended
|
|
|
|
|
December 31, 2021
|
|
|
|
|
Direct title
premiums
|
|
$
1,025
|
|
$
1,025
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
1,350
|
|
1,350
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
1,672
|
|
795
|
|
838
|
|
39
|
Total title and
escrow
|
|
4,047
|
|
3,170
|
|
838
|
|
39
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
537
|
|
26
|
|
511
|
|
—
|
Recognized gains and
losses, net
|
|
213
|
|
(135)
|
|
345
|
|
3
|
Total
revenue
|
|
4,797
|
|
3,061
|
|
1,694
|
|
42
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
932
|
|
874
|
|
36
|
|
22
|
Agent
commissions
|
|
1,034
|
|
1,034
|
|
—
|
|
—
|
Other operating
expenses
|
|
497
|
|
444
|
|
29
|
|
24
|
Benefits & other
policy reserve changes
|
|
1,404
|
|
—
|
|
1,404
|
|
—
|
Depreciation and
amortization
|
|
105
|
|
35
|
|
65
|
|
5
|
Provision for title
claim losses
|
|
107
|
|
107
|
|
—
|
|
—
|
Interest
expense
|
|
31
|
|
—
|
|
8
|
|
23
|
Total
expenses
|
|
4,110
|
|
2,494
|
|
1,542
|
|
74
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
$
687
|
|
$
567
|
|
$
152
|
|
$
(32)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
158
|
|
122
|
|
31
|
|
5
|
Earnings
(loss) from equity investments
|
|
10
|
|
10
|
|
—
|
|
—
|
Earnings
(loss) from discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling interests
|
|
6
|
|
6
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - basic
|
|
$
1.89
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - basic
|
|
—
|
|
|
|
|
|
|
EPS attributable to common shareholders -
basic
|
|
$
1.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - diluted
|
|
$
1.87
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - diluted
|
|
—
|
|
|
|
|
|
|
EPS attributable to common shareholders -
diluted
|
|
$
1.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
282
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
285
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months Ended
|
|
|
|
|
December 31, 2021
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
attributable to common shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
$
687
|
|
$
567
|
|
$
152
|
|
$
(32)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
56
|
|
135
|
|
(76)
|
|
(3)
|
Indexed
product related derivatives
|
|
32
|
|
—
|
|
32
|
|
—
|
Purchase price
amortization
|
|
25
|
|
15
|
|
6
|
|
4
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax earnings
(loss)
|
|
$
800
|
|
$
717
|
|
$
114
|
|
$
(31)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
113
|
|
$
150
|
|
$
(38)
|
|
$
1
|
Income taxes
on non-GAAP adjustments
|
|
(30)
|
|
(36)
|
|
7
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
83
|
|
$
114
|
|
$
(31)
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings (loss) from continuing
operations attributable to common
shareholders
|
|
$
616
|
|
$
563
|
|
$
90
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations attributable
to common shareholders - diluted
|
|
2.16
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months Ended
|
|
|
|
|
December 31, 2020
|
|
|
|
|
Direct title
premiums
|
|
$
845
|
|
$
845
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
1,102
|
|
1,102
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
891
|
|
775
|
|
58
|
|
58
|
Total title and
escrow
|
|
2,838
|
|
2,722
|
|
58
|
|
58
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
359
|
|
31
|
|
327
|
|
1
|
Recognized gains and
losses, net
|
|
573
|
|
290
|
|
282
|
|
1
|
Total
revenue
|
|
3,770
|
|
3,043
|
|
667
|
|
60
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
863
|
|
786
|
|
33
|
|
44
|
Agent
commissions
|
|
842
|
|
842
|
|
—
|
|
—
|
Other operating
expenses
|
|
453
|
|
396
|
|
30
|
|
27
|
Benefits & other
policy reserve changes
|
|
460
|
|
—
|
|
460
|
|
—
|
Depreciation and
amortization
|
|
107
|
|
36
|
|
64
|
|
7
|
Provision for title
claim losses
|
|
87
|
|
87
|
|
—
|
|
—
|
Interest
expense
|
|
28
|
|
—
|
|
8
|
|
20
|
Total
expenses
|
|
2,840
|
|
2,147
|
|
595
|
|
98
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss)
|
|
$
930
|
|
$
896
|
|
$
72
|
|
$
(38)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
128
|
|
192
|
|
(67)
|
|
3
|
Earnings from
equity investments
|
|
6
|
|
6
|
|
—
|
|
—
|
Earnings
(loss) from discontinued operations, net of tax
|
|
(2)
|
|
—
|
|
(2)
|
|
—
|
Non-controlling interests
|
|
5
|
|
5
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
801
|
|
$
705
|
|
$
137
|
|
$
(41)
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - basic
|
|
$
2.75
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - basic
|
|
$
(0.01)
|
|
|
|
|
|
|
EPS attributable to common shareholders -
basic
|
|
$
2.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - diluted
|
|
$
2.74
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - diluted
|
|
$
(0.01)
|
|
|
|
|
|
|
EPS attributable to common shareholders -
diluted
|
|
$
2.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
292
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
293
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months Ended
|
|
|
|
|
December 31, 2020
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
801
|
|
$
705
|
|
$
137
|
|
$
(41)
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
|
$
(2)
|
|
$
—
|
|
$
(2)
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations,
attributable to
common shareholders
|
|
$
803
|
|
$
705
|
|
$
139
|
|
$
(41)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
930
|
|
896
|
|
72
|
|
(38)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
(367)
|
|
(290)
|
|
(76)
|
|
(1)
|
Indexed
product related derivatives
|
|
54
|
|
—
|
|
54
|
|
—
|
Purchase price
amortization
|
|
29
|
|
18
|
|
7
|
|
4
|
Transaction
costs
|
|
5
|
|
—
|
|
4
|
|
1
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax earnings
(loss)
|
|
$
651
|
|
$
624
|
|
$
61
|
|
$
(34)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
(279)
|
|
$
(272)
|
|
$
(11)
|
|
$
4
|
Income taxes
on non-GAAP adjustments
|
|
64
|
|
65
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
(215)
|
|
$
(207)
|
|
$
(11)
|
|
$
3
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings attributable to common
shareholders
|
|
$
588
|
|
$
498
|
|
$
128
|
|
$
(38)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS attributable to common shareholders -
diluted
|
|
$
2.01
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT INFORMATION (In
millions, except order information in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Twelve Months Ended
|
|
|
|
|
December 31, 2021
|
|
|
|
|
Direct title
premiums
|
|
$
3,571
|
|
$
3,571
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
4,982
|
|
4,982
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
4,795
|
|
3,228
|
|
1,395
|
|
172
|
Total title and
escrow
|
|
13,348
|
|
11,781
|
|
1,395
|
|
172
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
1,961
|
|
109
|
|
1,852
|
|
—
|
Recognized gains and
losses, net
|
|
334
|
|
(393)
|
|
715
|
|
12
|
Total
revenue
|
|
15,643
|
|
11,497
|
|
3,962
|
|
184
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
3,528
|
|
3,292
|
|
129
|
|
107
|
Agent
commissions
|
|
3,821
|
|
3,821
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,929
|
|
1,725
|
|
105
|
|
99
|
Benefits & other
policy reserve changes
|
|
2,138
|
|
—
|
|
2,138
|
|
—
|
Depreciation and
amortization
|
|
645
|
|
138
|
|
484
|
|
23
|
Provision for title
claim losses
|
|
385
|
|
385
|
|
—
|
|
—
|
Interest
expense
|
|
114
|
|
—
|
|
29
|
|
85
|
Total
expenses
|
|
12,560
|
|
9,361
|
|
2,885
|
|
314
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
$
3,083
|
|
$
2,136
|
|
$
1,077
|
|
$
(130)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
713
|
|
511
|
|
220
|
|
(18)
|
Earnings
(loss) from equity investments
|
|
64
|
|
58
|
|
—
|
|
6
|
Earnings from
discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
Non-controlling interests
|
|
20
|
|
19
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
2,422
|
|
$
1,664
|
|
$
865
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - basic
|
|
$
8.47
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - basic
|
|
0.03
|
|
|
|
|
|
|
EPS attributable to common shareholders -
basic
|
|
$
8.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - diluted
|
|
$
8.41
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - diluted
|
|
0.03
|
|
|
|
|
|
|
EPS attributable to common shareholders -
diluted
|
|
$
8.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
285
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
287
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT INFORMATION (In
millions, except order information in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Twelve Months Ended
|
|
|
|
|
December 31, 2021
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
2,422
|
|
$
1,664
|
|
$
865
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
attributable to common shareholders
|
|
$
2,414
|
|
$
1,664
|
|
$
857
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
$
3,083
|
|
$
2,136
|
|
$
1,077
|
|
$
(130)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
62
|
|
393
|
|
(319)
|
|
(12)
|
Indexed
product related derivatives
|
|
(52)
|
|
—
|
|
(52)
|
|
—
|
Purchase price
amortization
|
|
99
|
|
57
|
|
26
|
|
16
|
Transaction
costs
|
|
13
|
|
—
|
|
5
|
|
8
|
Other
non-recurring items(1)
|
|
(284)
|
|
—
|
|
(284)
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax earnings
(loss)
|
|
$
2,921
|
|
$
2,586
|
|
$
453
|
|
$
(118)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
(162)
|
|
$
450
|
|
$
(624)
|
|
$
12
|
Income taxes
on non-GAAP adjustments
|
|
17
|
|
(108)
|
|
128
|
|
(3)
|
Non-controlling interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
(146)
|
|
$
342
|
|
$
(496)
|
|
$
8
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings (loss) from continuing
operations attributable to common
shareholders
|
|
$
2,268
|
|
$
2,006
|
|
$
361
|
|
$
(99)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations attributable
to common shareholders - diluted
|
|
$
7.90
|
|
|
|
|
|
|
|
(1) See
Non-GAAP Measures and Other Information
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT INFORMATION (In
millions, except order information in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
F&G
|
|
|
Twelve Months Ended
|
|
Consolidated
|
|
Title
|
|
|
Corporate and
Other
|
December 31, 2020
|
|
|
|
|
Direct title
premiums
|
|
$
2,699
|
|
$
2,699
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
3,599
|
|
3,599
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
3,092
|
|
2,782
|
|
138
|
|
172
|
Total title and
escrow
|
|
9,390
|
|
9,080
|
|
138
|
|
172
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
900
|
|
151
|
|
743
|
|
6
|
Recognized gains and
losses, net
|
|
488
|
|
143
|
|
352
|
|
(7)
|
Total
revenue
|
|
10,778
|
|
9,374
|
|
1,233
|
|
171
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,951
|
|
2,778
|
|
65
|
|
108
|
Agent
commissions
|
|
2,749
|
|
2,749
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,759
|
|
1,536
|
|
75
|
|
148
|
Benefits & other
policy reserve changes
|
|
866
|
|
—
|
|
866
|
|
—
|
Depreciation and
amortization
|
|
296
|
|
149
|
|
123
|
|
24
|
Provision for title
claim losses
|
|
283
|
|
283
|
|
—
|
|
—
|
Interest
expense
|
|
90
|
|
1
|
|
18
|
|
71
|
Total
expenses
|
|
8,994
|
|
7,496
|
|
1,147
|
|
351
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
$
1,784
|
|
$
1,878
|
|
$
86
|
|
$
(180)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
322
|
|
432
|
|
(75)
|
|
(35)
|
Earnings from
equity investments
|
|
15
|
|
14
|
|
—
|
|
1
|
Earnings
(loss) from discontinued operations, net of tax
|
|
(25)
|
|
—
|
|
(25)
|
|
—
|
Non-controlling interests
|
|
25
|
|
25
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
1,427
|
|
$
1,435
|
|
$
136
|
|
$
(144)
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - basic
|
|
$
5.11
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - basic
|
|
$
(0.09)
|
|
|
|
|
|
|
EPS attributable to common shareholders -
basic
|
|
$
5.02
|
|
|
|
|
|
|
EPS from continuing operations attributable to common
shareholders - diluted
|
|
$
5.08
|
|
|
|
|
|
|
EPS from discontinued operations attributable to
common shareholders - diluted
|
|
$
(0.09)
|
|
|
|
|
|
|
EPS attributable to common shareholders -
diluted
|
|
$
4.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
284
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
286
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT
INFORMATION (millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Twelve Months Ended
|
|
|
|
|
December 31, 2020
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
|
$
1,427
|
|
$
1,435
|
|
$
136
|
|
$
(144)
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
|
(25)
|
|
—
|
|
(25)
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
attributable to common shareholders
|
|
$
1,452
|
|
$
1,435
|
|
$
161
|
|
$
(144)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings (loss) from continuing
operations
|
|
1,784
|
|
1,878
|
|
86
|
|
(180)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
(181)
|
|
(143)
|
|
(45)
|
|
7
|
Indexed
product related derivatives
|
|
111
|
|
—
|
|
111
|
|
—
|
Debt issuance
costs
|
|
5
|
|
—
|
|
—
|
|
5
|
Purchase price
amortization
|
|
106
|
|
73
|
|
16
|
|
17
|
Transaction
costs
|
|
68
|
|
—
|
|
21
|
|
47
|
Other
adjustments
|
|
1
|
|
1
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax earnings
(loss)
|
|
$
1,894
|
|
$
1,809
|
|
$
189
|
|
$
(104)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
110
|
|
$
(69)
|
|
$
103
|
|
$
76
|
Income taxes
on non-GAAP adjustments
|
|
(29)
|
|
18
|
|
(29)
|
|
(18)
|
Non-controlling interest on non-GAAP adjustments
|
|
(7)
|
|
(6)
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
74
|
|
$
(57)
|
|
$
74
|
|
$
57
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings (loss) attributable to common
shareholders
|
|
$
1,526
|
|
$
1,378
|
|
$
235
|
|
$
(87)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS attributable to common shareholders -
diluted
|
|
$
5.34
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. SUMMARY BALANCE SHEET
INFORMATION (In millions)
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash and investment
portfolio
|
|
|
$
47,135
|
|
|
$
37,766
|
Goodwill
|
|
|
4,539
|
|
|
4,495
|
Title
plant
|
|
|
400
|
|
|
404
|
Total
assets
|
|
|
60,690
|
|
|
50,455
|
Notes
payable
|
|
|
3,096
|
|
|
2,662
|
Reserve for title
claim losses
|
|
|
1,883
|
|
|
1,623
|
Secured trust
deposits
|
|
|
934
|
|
|
711
|
Non-controlling
interests
|
|
|
43
|
|
|
41
|
Total equity and
non-controlling interests
|
|
|
9,457
|
|
|
8,392
|
Total equity
attributable to common shareholders
|
|
|
9,414
|
|
|
8,351
|
Non-GAAP Measures and Other Information
Title
The table below reconciles pre-tax title earnings to
adjusted pre-tax title earnings.
|
Three Months Ended
|
|
|
Year Ended
|
(Dollars in
millions)
|
December 31,
2021
|
December 31,
2020
|
|
|
December 31,
2021
|
December 31,
2020
|
Pre-tax earnings
|
$
567
|
$
896
|
|
|
$
2,136
|
$
1,878
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
135
|
(290)
|
|
|
393
|
(143)
|
Purchase price
amortization
|
15
|
18
|
|
|
57
|
73
|
Other
adjustments
|
—
|
—
|
|
|
—
|
1
|
Total non-GAAP
adjustments
|
150
|
(272)
|
|
|
450
|
(69)
|
Adjusted pre-tax earnings
|
$
717
|
$
624
|
|
|
$
2,586
|
$
1,809
|
Adjusted pre-tax margin
|
22.4
%
|
22.7
%
|
|
|
21.7
%
|
19.6
%
|
FIDELITY NATIONAL
FINANCIAL, INC. QUARTERLY OPERATING
STATISTICS (Unaudited)
|
|
|
|
Q4 2021
|
|
Q3 2021
|
|
Q2 2021
|
|
Q1 2021
|
|
Q4 2020
|
|
Q3 2020
|
|
Q2 2020
|
|
Q1 2020
|
Quarterly Opened Orders ('000's except %
data)
|
Total opened
orders*
|
|
536
|
|
688
|
|
695
|
|
770
|
|
728
|
|
847
|
|
693
|
|
682
|
Total opened orders
per day*
|
|
8.5
|
|
10.8
|
|
10.9
|
|
12.6
|
|
11.6
|
|
13.2
|
|
10.8
|
|
11.0
|
Purchase % of opened
orders
|
|
53 %
|
|
50 %
|
|
53 %
|
|
42 %
|
|
38 %
|
|
40 %
|
|
37 %
|
|
41 %
|
Refinance % of opened
orders
|
|
47 %
|
|
50 %
|
|
47 %
|
|
58 %
|
|
62 %
|
|
60 %
|
|
63 %
|
|
59 %
|
Total closed
orders*
|
|
477
|
|
527
|
|
568
|
|
597
|
|
617
|
|
571
|
|
487
|
|
377
|
Total closed orders
per day*
|
|
7.6
|
|
8.2
|
|
8.9
|
|
9.8
|
|
9.8
|
|
8.9
|
|
7.6
|
|
6.1
|
Purchase % of closed
orders
|
|
51 %
|
|
50 %
|
|
47 %
|
|
34 %
|
|
38 %
|
|
42 %
|
|
35 %
|
|
46 %
|
Refinance % of closed
orders
|
|
49 %
|
|
50 %
|
|
53 %
|
|
66 %
|
|
62 %
|
|
58 %
|
|
65 %
|
|
54 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (millions, except orders in
'000's)
|
Total commercial
revenue
|
|
$
546
|
|
$
366
|
|
$
347
|
|
$
257
|
|
$
322
|
|
$
216
|
|
$
184
|
|
$
245
|
Total commercial
opened orders
|
|
64.5
|
|
66.8
|
|
69.4
|
|
62.2
|
|
57.0
|
|
58.1
|
|
43.9
|
|
56.3
|
Total commercial
closed orders
|
|
46.1
|
|
40.1
|
|
42.3
|
|
34.8
|
|
39.5
|
|
30.6
|
|
25.7
|
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$
313
|
|
$
183
|
|
$
176
|
|
$
127
|
|
$
177
|
|
$
113
|
|
$
96
|
|
$
132
|
National commercial
opened orders
|
|
26.0
|
|
27.7
|
|
27.4
|
|
23.4
|
|
21.4
|
|
21.7
|
|
15.2
|
|
21.5
|
National commercial
closed orders
|
|
18.1
|
|
14.8
|
|
14.9
|
|
11.2
|
|
13.4
|
|
9.8
|
|
8.8
|
|
10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per File
|
Fee per
file
|
|
$
3,023
|
|
$
2,581
|
|
$
2,444
|
|
$
1,944
|
|
$
2,116
|
|
$
2,063
|
|
$
1,889
|
|
$
2,224
|
Residential fee per
file
|
|
$
2,158
|
|
$
2,097
|
|
$
2,030
|
|
$
1,644
|
|
$
1,661
|
|
$
1,803
|
|
$
1,614
|
|
$
1,744
|
Total commercial fee
per file
|
|
$ 11,800
|
|
$
9,100
|
|
$
8,200
|
|
$
7,400
|
|
$
8,200
|
|
$
7,100
|
|
$
7,200
|
|
$
7,900
|
National commercial
fee per file
|
|
$ 17,300
|
|
$
12,400
|
|
$
11,800
|
|
$
11,300
|
|
$ 13,200
|
|
$
11,500
|
|
$
10,900
|
|
$
12,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Staffing
|
Total field
operations employees
|
|
13,600
|
|
13,700
|
|
13,500
|
|
13,200
|
|
12,800
|
|
12,300
|
|
10,900
|
|
12,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual title claims paid ($
millions)
|
|
$
62
|
|
$
55
|
|
$
56
|
|
$
46
|
|
$
54
|
|
$
50
|
|
$
51
|
|
$
48
|
FIDELITY NATIONAL
FINANCIAL, INC. MONTHLY TITLE ORDER
STATISTICS
|
|
|
|
|
Direct Orders Opened *
|
|
|
Direct Orders Closed *
|
Month
|
|
/ (% Purchase)
|
|
/ (% Purchase)
|
October
2021
|
|
|
196,000
|
53%
|
|
|
165,000
|
50%
|
November
2021
|
|
|
182,000
|
53%
|
|
|
153,000
|
50%
|
December
2021
|
|
|
158,000
|
51%
|
|
|
159,000
|
54%
|
|
|
|
|
|
|
|
Fourth Quarter 2021
|
|
|
536,000
|
53%
|
|
|
477,000
|
51%
|
|
|
|
|
|
Direct Orders Opened *
|
|
|
Direct Orders Closed *
|
Month
|
|
/ (% Purchase)
|
|
|
/ (% Purchase)
|
October
2020
|
|
|
259,000
|
40%
|
|
|
210,000
|
39%
|
November
2020
|
|
|
227,000
|
38%
|
|
|
190,000
|
37%
|
December
2020
|
|
|
242,000
|
34%
|
|
|
217,000
|
38%
|
|
|
|
|
|
|
|
Fourth Quarter 2020
|
|
|
728,000
|
38%
|
|
|
617,000
|
38%
|
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
F&G
The table below reconciles the reported after-tax net
earnings from continuing operations to adjusted net earnings from
continuing operations attributable to common
shareholders.
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
December 31,
2021
|
(Dollars in
millions)
|
|
|
|
|
|
|
Net earnings (loss) attributable to common
shareholders
|
$
121
|
|
$
137
|
|
|
$
865
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
—
|
|
(2)
|
|
|
8
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
$
121
|
|
$
139
|
|
|
$
857
|
Non-GAAP
adjustments(1,2):
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
(76)
|
|
(76)
|
|
|
(319)
|
Indexed
product related derivatives
|
32
|
|
54
|
|
|
(52)
|
Purchase price
amortization
|
6
|
|
7
|
|
|
26
|
Transaction
costs
|
—
|
|
4
|
|
|
5
|
Other
non-recurring items(3)
|
—
|
|
—
|
|
|
(284)
|
Income taxes
on non-GAAP adjustments
|
7
|
|
—
|
|
|
128
|
Adjusted net earnings from continuing operations
attributable to common
shareholders(1)
|
$
90
|
|
$
128
|
|
|
$
361
|
Adjusted net earnings from continuing operations include
$3 million and $64 million of net favorable items in the three
and twelve months ended December 31,
2021 respectively and $68
million net favorable items in the three months ended
December 31, 2020.
The table below provides summary financial
highlights.
|
Three Months Ended
|
|
|
Twelve Months Ended
|
(Dollars in
millions)
|
December 31,
2021
|
|
December 31,
2020
|
|
|
December 31,
2021
|
Average assets under
management (AAUM)(1)
|
$
35,699
|
|
$
27,864
|
|
|
$
31,938
|
Net investment spread
- FIA(1)
|
3.59 %
|
|
3.02 %
|
|
|
3.33 %
|
Net investment spread
- All products(1)
|
2.89 %
|
|
2.55 %
|
|
|
2.81 %
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
$
121
|
|
$
139
|
|
|
$
857
|
Adjusted net earnings
from continuing operations attributable to common
shareholders(1)
|
$
90
|
|
$
128
|
|
|
$
361
|
The table below provides a summary of sales highlights,
which are not affected by PGAAP and are comparable to prior period
data.
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
(In
millions)
|
|
December 31, 2021
|
|
December 31, 2020
|
|
|
December 31, 2021
|
|
December 31, 2020
|
Total
sales(1)
|
|
$
2,195
|
|
$
1,459
|
|
|
$
9,592
|
|
$
4,837
|
Fixed indexed annuity
(FIA) sales(1)
|
|
$
1,055
|
|
$
947
|
|
|
$
4,310
|
|
$
3,459
|
Total annuity
sales(1)
|
|
$
1,356
|
|
$
1,309
|
|
|
$
6,048
|
|
$
4,235
|
Institutional
sales(1)(4)
|
|
$
811
|
|
$
100
|
|
|
$
3,457
|
|
$
200
|
Footnotes:
- Non-GAAP financial measure. See the Non-GAAP Measures
section below for additional information.
- Amounts are net of offsets related to value of business
acquired (VOBA), deferred acquisition cost (DAC), deferred sale
inducement (DSI) amortization, and unearned revenue (UREV)
amortization, as applicable.
- Reflects adjustments to benefits and other changes in
policy reserves and depreciation and amortization resulting from
the implementation of a new actuarial valuation system.
- Institutional sales include funding agreements
(FABN/FHLB) and pension risk transfer.
DEFINITIONS
The following represents the definitions of non-GAAP
measures used by the Company.
Adjusted Net Earnings Attributable to Common
Shareholders (Adjusted Net Earnings)
Adjusted net earnings attributable to common shareholders
(adjusted net earnings) is a non-GAAP economic measure we use to
evaluate financial performance each period. Adjusted net earnings
is calculated by adjusting net earnings (loss) from continuing
operations attributable to common shareholders to
eliminate:
- Recognized (gains) and losses, net: the impact of net
investment gains/losses, including changes in allowance for
expected credit losses and other than temporary impairment ("OTTI")
losses, recognized in operations; the impact of market volatility
on the alternative asset portfolio that differ from management's
expectation of returns over the life of these assets; and the
effect of changes in fair value of the reinsurance related embedded
derivative;
- Indexed product related derivatives: the impacts related
to changes in the fair value, including both realized and
unrealized gains and losses, of index product related derivatives
and embedded derivatives, net of hedging cost;
- Purchase price amortization: the impacts related to the
amortization of certain intangibles (internally developed software,
trademarks and value of distribution asset (VODA)) recognized as a
result of acquisition activities;
- Transaction costs: the impacts related to acquisition,
integration and merger related items; and
- Other "non-recurring", "infrequent" or "unusual items":
Management excludes certain items determined to be "non-recurring",
"infrequent" or "unusual" from adjusted net earnings when incurred
if it is determined these expenses are not a reflection of the core
business and when the nature of the item is such that it is not
reasonably likely to recur within two years and/or there was not a
similar item in the preceding two years.
Adjustments to adjusted net earnings are net of the
corresponding impact on amortization of intangibles, as
appropriate. The income tax impact related to these adjustments is
measured using an effective tax rate, as appropriate by tax
jurisdiction. While these adjustments are an integral part of the
overall performance of F&G, market conditions and/or the
non-operating nature of these items can overshadow the underlying
performance of the core business. Accordingly, management considers
this to be a useful measure internally and to investors and
analysts in analyzing the trends of our operations. Adjusted net
earnings should not be used as a substitute for net earnings
(loss). However, we believe the adjustments made to net earnings
(loss) in order to derive adjusted net earnings provide an
understanding of our overall results of operations.
Net Investment Spread
Net investment spread is the excess of net investment
income, adjusted for market volatility on the alternative asset
investment portfolio, earned over the sum of interest credited to
policyholders and the cost of hedging our risk on indexed product
policies. Management considers this non-GAAP financial
measure to be useful internally and to investors and analysts when
assessing the performance of the Company's invested assets against
the level of investment return provided to policyholders, inclusive
of hedging costs.
Assets Under Management (AUM)
AUM is calculated as the sum of:
- total invested assets at amortized cost, excluding
derivatives;
- related party loans and investments;
- accrued investment income;
- the net payable/receivable for the purchase/sale of
investments, and
- cash and cash equivalents excluding derivative collateral
at the beginning of the period and the end of each month in the
period, divided by the total number of months in the period plus
one.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
rate of return on assets available for reinvestment.
Average Assets Under Management
(AAUM)
AAUM is calculated as AUM at the beginning of the period
and the end of each month in the period, divided by the total
number of months in the period plus one.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
rate of return on assets available for reinvestment.
Sales
Annuity, IUL and funding agreement sales are not derived
from any specific GAAP income statement accounts or line items and
should not be viewed as a substitute for any financial measure
determined in accordance with GAAP. Sales from these products
are recorded as deposit liabilities (i.e. contractholder funds)
within the Company's consolidated financial statements in
accordance with GAAP. PRT sales are recorded as premiums in
revenues within the consolidated financial statements. Management
believes that presentation of sales, as measured for management
purposes, enhances the understanding of our business and helps
depict longer term trends that may not be apparent in the results
of operations due to the timing of sales and revenue
recognition.
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SOURCE Fidelity National Financial, Inc.