JACKSONVILLE, Fla., Nov. 8, 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 third
quarter ended September 30, 2022.
Net earnings attributable to common shareholders for
the third quarter of $289 million, or
$1.05 per diluted share (per share),
compared to $732 million, or
$2.57 per share, for the third
quarter of 2021. Net earnings attributable to common
shareholders for the third quarter of 2022 includes $42 million of net favorable mark-to-market
effects and $48 million of other
unfavorable items; all of which are excluded from adjusted net
earnings attributable to common shareholders. Net earnings
attributable to common shareholders for the third quarter of 2021
included $224 million of one-time
favorable adjustment from an actuarial system conversion,
$130 million of net unfavorable
mark-to-market effects and $25
million of other unfavorable items; all of which are
excluded from adjusted net earnings attributable to common
shareholders.
Adjusted net earnings attributable to common shareholders
(adjusted net earnings) for the third quarter of
$295 million, or $1.07 per share, compared to $663 million, or $2.33 per share, for the third quarter of
2021. For the third quarter of 2022, the Title segment
contributed $298 million, F&G
contributed $12 million and the
Corporate segment had an adjusted net loss of $15 million. For the third quarter of 2021,
the Title segment contributed $521
million, F&G contributed $160
million and the Corporate segment had an adjusted net loss
of $18 million. The decrease
from the prior year quarter was primarily a result of Title's
considerable decline in refinance volume, representing trough level
activity, and moderating residential purchase volume; partially
offset by higher average fee per file and healthy volume of
commercial orders closed, and lower earnings from F&G driven by
a new reporting presentation for alternatives investment portfolio
mark-to-market.
Effective this quarter, presentations of adjusted net earnings
for F&G will no longer include the alternative investment yield
adjustment to normalize alternative investment portfolio
returns. Prior periods are presented on a comparable basis to
reflect the new definition of adjusted net earnings. Please
see "Segment Financial Results" for F&G for further explanation
and "Non-GAAP Measures and Other Information" for a comparison of
adjusted net earnings under the former and new definition.
Company Highlights
- Solid Title Revenue despite challenging environment: For
the Title segment, total revenue of $2.3
billion, compared with $2.9
billion in total revenue in the third quarter of 2021. Total
revenue, excluding recognized gains and losses, of $2.3 billion, compared with $3.1 billion in the third quarter of 2021
- Strong sales for F&G continue: Total gross sales of
$2.9 billion for the third quarter, a
7% decrease from third quarter 2021 and second quarter 2022;
reflects record retail sales, partially offset by lower
institutional sales which we expect to be lumpier and more
opportunistic than in our retail channels
- Partial spin-off of F&G remains on track: The
previously announced transaction to distribute 15% ownership of
F&G to FNF shareholders on a pro rata basis remains on track to
close in the fourth quarter of 2022, subject to the satisfaction of
certain conditions, including that a Registration Statement on Form
10 filed by F&G with the U.S. Securities and Exchange
Commission is declared effective
- Ample deployable capital supports shareholder value: FNF
has repurchased 5.3 million shares for $205
million, at an average price of $38.74 per share, in the third quarter and paid
common dividends at $0.44 per share
for $120 million. On September 1, 2022, FNF retired all of the
$400 million aggregate principal
amount of its outstanding 5.50% Senior Notes upon maturity. FNF
ended the third quarter with $1.1
billion in cash and short-term liquid investments at the
holding company. As announced last week, the board of directors has
increased the quarterly cash dividend to $0.45 per share, payable December 30, 2022, to shareholders of record as
of December 16, 2022
William P. Foley, II, commented,
"Our Title results for the third quarter moderated from the prior
year's record performance as higher mortgage rates pressured title
volumes across the industry. That said, our management team
continued to deliver solid results having achieved total revenue of
$3.2 billion while aggressively
reducing expenses to protect FNF's margins in a more challenging
environment. While rising rates are pressuring the housing
sector, they are proving to be a tailwind to F&G's results as
assets under management grew to $42
billion at September 30,
2022. Looking forward, we remain on track to dividend 15% of
F&G to FNF shareholders over the coming weeks, which we believe
will begin to unlock the significant value that Chris and his team
have created over the last two years."
Mr. Foley concluded, "While the Federal Reserve continues on
their aggressive interest rate tightening cycle to combat
persistently high inflation, investors have become increasingly
concerned that the risks of a recession are rising which has led to
significant market volatility through the third quarter.
During challenging environments such as these, I have always
stressed the importance of maintaining a fortress like balance
sheet with ample liquidity to take advantage of market
dislocations. To that end, we paid off all of our
$400 million Senior Notes which
matured on September 1st
leaving FNF with a debt to capitalization ratio, excluding
accumulated other comprehensive income, of 23%. We also
accelerated the pace of our share buyback having repurchased
$205 million shares, as compared to
$172 million in the second
quarter. Year to date, we have returned $876 million of capital to our shareholders,
through $511 million of shares
repurchase and $365 million of common
dividends, while ending the third quarter with $1.1 billion of cash and short-term liquid
investments. We remain in a strong liquidity position and
ready to capitalize on strategically aligned opportunities as they
present themselves."
Summary Financial Results
(In millions, except
per share data)
|
Three Months
Ended
|
Year to
Date
|
|
September 30,
2022
|
|
September 30,
2021
|
2022
|
|
2021
|
Total
revenue
|
$
3,207
|
|
$
3,892
|
$ 9,003
|
|
$
10,846
|
F&G total
sales1
|
$
2,873
|
|
$
3,076
|
$ 8,535
|
|
$ 7,397
|
F&G assets under
management1
|
$
41,988
|
|
$
34,665
|
$
41,988
|
|
$
34,665
|
Total assets
|
$
62,164
|
|
$
58,506
|
$
62,164
|
|
$
58,506
|
Adjusted pre-tax title
margin
|
17.1 %
|
|
21.7 %
|
17.7 %
|
|
21.5 %
|
Net earnings
attributable to common shareholders
|
$
289
|
|
$
732
|
$ 1,068
|
|
$ 1,889
|
Net earnings per share
attributable to common shareholders
|
$
1.05
|
|
$
2.57
|
$
3.83
|
|
$
6.56
|
Adjusted net
earnings1
|
$
295
|
|
$
663
|
$ 1,198
|
|
$ 1,790
|
Adjusted net earnings
per share1
|
$
1.07
|
|
$
2.33
|
$
4.29
|
|
$
6.22
|
Total common shares
outstanding
|
273
|
|
285
|
273
|
|
285
|
________________________________
|
1 See
definition of non-GAAP measures below
|
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 loan sub-servicing, valuations, default services, and
home warranty products.
Third Quarter 2022 Highlights
Mike Nolan, Chief Executive
Officer, said, "While mortgage rates have experienced one of the
fastest increases ever, we continued to manage our business to
react quickly to adjust to order volumes and have delivered
adjusted pre-tax Title earnings of $400
million and an adjusted pre-tax margin of 17.1%.
Strength in the commercial market where we delivered record revenue
of $381 million for a third quarter
helped to buffer declines in the residential purchase and refinance
markets. Importantly, we believe refinance volumes are at or
near trough levels while commercial volumes remain healthy though
slowing. We remain confident in our ability to navigate the
challenges of operating in a cyclical business and our strong
balance sheet allows us to not only withstand periods of
dislocation but take advantage of opportunities to build our Title
business for the long term."
- Total revenue of $2.3
billion, compared with $2.9
billion in total revenue in the third quarter of 2021
- Total revenue, excluding recognized gains and losses, of
$2.3 billion, a 24% decrease compared
with the third quarter of 2021
-
- Direct title premiums of $688
million, a 23% decrease from third quarter of 2021
- Agency title premiums of $1.0
billion, a 27% decrease from third quarter of 2021
- Commercial revenue of $381
million, a 4% increase from third quarter of 2021
- Purchase orders opened decreased 22% on a daily basis
and purchase orders closed decreased 23% on a daily basis from the
third quarter of 2021
- Refinance orders opened decreased 75% on a daily basis
and refinance orders closed decreased 76% on a daily basis from
third quarter of 2021
- Commercial orders opened decreased 18% and commercial
orders closed decreased 12% from third quarter of 2021
- Total fee per file of $3,621 for the third quarter, a 40% increase over
third quarter of 2021
Third Quarter 2022 Financial Results
- Pre-tax title margin of 14.6% and industry leading
adjusted pre-tax title margin of 17.1% for the third quarter
of 2022, compared to 16.6% and 21.7%, respectively, in the third
quarter of 2021
- Pre-tax earnings from continuing operations in Title for
the third quarter of $335 million,
compared with $486 million for the
third quarter of 2021
- Adjusted pre-tax earnings in Title for the third quarter
of $400 million compared with
$669 million for the third quarter of
2021. The decrease from the prior year quarter was primarily a
result of the considerable decline in refinance volume representing
trough level activity and moderating residential purchase volume;
partially offset by higher average fee per file and healthy volume
of commercial orders closed
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.
Third Quarter 2022
Chris Blunt, President and Chief
Executive Officer of F&G, commented, "F&G had another solid
quarter. We generated total gross sales of $2.9 billion which, in turn, drove our assets
under management to $42
billion. In the retail channels, we generated a record
$2.3 billion of sales, up 45% from
the prior year. In addition to increased demand from rising
interest rates, our Retail sales volume reflects expanding
relationships with new and existing distribution partners in the
agent, bank and broker dealer channels while maintaining a
disciplined approach to pricing. Momentum continues in our
institutional channels as we placed over $0.6 billion in pension risk transfer
transactions, including our first repeat transaction."
Regarding the recently announced transaction to distribute 15%
ownership of F&G to FNF shareholders, Mr. Blunt said, "We are
on track for a targeted closing in the fourth quarter of 2022,
subject to the satisfaction of certain conditions, and our board of
directors has approved the initiation of a dividend program under
which F&G intends to pay quarterly cash dividends on our common
stock at an initial aggregate amount of approximately $100 million per year, commencing in early
2023. Overall, we are well positioned for future growth
opportunities and view the transition to being a publicly traded
company as a vote of confidence for our business."
- Total gross sales of $2.9
billion for the third quarter, a decrease of 7% from the
third quarter 2021 and second quarter 2022; reflects record retail
sales, partially offset by lower institutional sales which we
expect to be lumpier and more opportunistic than in our retail
channels
- Record Retail sales of $2.3
billion for the third quarter, a 45% increase over third
quarter of 2021 and 1% increase over second quarter 2022; reflects
execution of diversified growth strategy
- Institutional sales of $620
million of pension risk transfer transactions, compared to
$371 million of pension risk transfer
transactions in the third quarter 2021. There were no funding
agreement issuances in the current quarter, compared with
$1.2 billion for the third quarter
2021
- Average assets under management (AAUM) of $41.1 billion for the third quarter, an increase
of 26% from $32.6 billion in the
third quarter 2021, driven by net new business flows. Ending assets
under management were $42.0 billion
as of September 30, 2022
- Net earnings attributable to common shareholders for
F&G of $115 million for the
third quarter, compared to $230
million for the second quarter of 2022
- Adjusted net earnings for F&G of $12 million for the third quarter, compared to
$112 million for the second quarter
of 2022.
-
- Beginning in the third quarter, presentations of adjusted net
earnings for F&G will no longer include the alternative
investment yield adjustment for the current period yield impact of
market volatility that differs from management's expectation of
long-term returns. Adjusted net earnings for F&G over the past
9 quarters have been adjusted to reflect this updated presentation.
Please see "Non-GAAP Measures and Other Information" for a
comparison of adjusted net earnings under the former and new
definition.
- Adjusted net earnings for the third quarter of 2022 included a
$10 million unrealized loss from
alternative investments and $5
million of other net expense items. Alternative investments
net investment income based on management's long-term expected
return of approximately 10% was $83
million
- Adjusted net earnings for the second quarter of 2022 included
$30 million income from actuarial
assumption updates and $6 million of
CLO redemption gains and other income, as well as a $38 million unrealized gain from alternative
investments. Alternative investments net investment income based on
management's long-term expected return of approximately 10% was
$54 million
Conference Call
We will host a call with investors and analysts to discuss FNF's
third quarter 2022 results on Wednesday,
November 9, 2022, beginning at 11:00
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 2:00 p.m. Eastern Time
on November 9, 2022, through
November 16, 2022, by dialing
1-844-512-2921 (USA) or
1-412-317-6671 (International). The access code will be 13730097.
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), 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.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
September 30,
2022
|
|
|
|
|
Direct title
premiums
|
|
$
688
|
|
$
688
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
966
|
|
966
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
1,372
|
|
623
|
|
702
|
|
47
|
Total title and
escrow
|
|
3,026
|
|
2,277
|
|
702
|
|
47
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
411
|
|
62
|
|
340
|
|
9
|
Recognized gains and
losses, net
|
|
(230)
|
|
(48)
|
|
(140)
|
|
(42)
|
Total
revenue
|
|
3,207
|
|
2,291
|
|
902
|
|
14
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
796
|
|
725
|
|
46
|
|
25
|
Agent
commissions
|
|
747
|
|
747
|
|
—
|
|
—
|
Other operating
expenses
|
|
430
|
|
372
|
|
28
|
|
30
|
Benefits & other
policy reserve changes
|
|
592
|
|
—
|
|
592
|
|
—
|
Depreciation and
amortization
|
|
131
|
|
38
|
|
87
|
|
6
|
Provision for title
claim losses
|
|
74
|
|
74
|
|
—
|
|
—
|
Interest
expense
|
|
28
|
|
—
|
|
6
|
|
22
|
Total
expenses
|
|
2,798
|
|
1,956
|
|
759
|
|
83
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
409
|
|
$
335
|
|
$
143
|
|
$
(69)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
115
|
|
93
|
|
28
|
|
(6)
|
Earnings (loss)
from equity investments
|
|
—
|
|
—
|
|
—
|
|
—
|
Earnings (loss)
from discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling
interests
|
|
5
|
|
5
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
289
|
|
$
237
|
|
$
115
|
|
$
(63)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
1.06
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
1.05
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
273
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
275
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
September 30,
2022
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
289
|
|
$
237
|
|
$
115
|
|
$
(63)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
289
|
|
$
237
|
|
$
115
|
|
$
(63)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
409
|
|
$
335
|
|
$
143
|
|
$
(69)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
65
|
|
48
|
|
(25)
|
|
42
|
Indexed product
related derivatives
|
|
(148)
|
|
—
|
|
(148)
|
|
—
|
Purchase price
amortization
|
|
26
|
|
17
|
|
5
|
|
4
|
Transaction
costs
|
|
7
|
|
—
|
|
4
|
|
3
|
Amortization of
actuarial intangibles
|
|
33
|
|
—
|
|
33
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
392
|
|
$
400
|
|
$
12
|
|
$
(20)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(17)
|
|
$
65
|
|
$
(131)
|
|
$
49
|
Income taxes on
non-GAAP adjustments
|
|
1
|
|
(16)
|
|
28
|
|
(11)
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Deferred tax
asset valuation allowance
|
|
23
|
|
12
|
|
—
|
|
11
|
Total non-GAAP
adjustments
|
|
$
6
|
|
$
61
|
|
$
(103)
|
|
$
48
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to common
shareholders
|
|
$
295
|
|
$
298
|
|
$
12
|
|
$
(15)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to common shareholders -
diluted
|
|
$
1.07
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
September 30,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
896
|
|
$
896
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
1,318
|
|
1,318
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
1,324
|
|
849
|
|
431
|
|
44
|
Total title and
escrow
|
|
3,538
|
|
3,063
|
|
431
|
|
44
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
508
|
|
27
|
|
481
|
|
—
|
Recognized gains and
losses, net
|
|
(154)
|
|
(169)
|
|
15
|
|
—
|
Total
revenue
|
|
3,892
|
|
2,921
|
|
927
|
|
44
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
894
|
|
838
|
|
32
|
|
24
|
Agent
commissions
|
|
1,010
|
|
1,010
|
|
—
|
|
—
|
Other operating
expenses
|
|
498
|
|
451
|
|
22
|
|
25
|
Benefits & other
policy reserve changes
|
|
185
|
|
—
|
|
185
|
|
—
|
Depreciation and
amortization
|
|
252
|
|
36
|
|
210
|
|
6
|
Provision for title
claim losses
|
|
100
|
|
100
|
|
—
|
|
—
|
Interest
expense
|
|
27
|
|
—
|
|
6
|
|
21
|
Total
expenses
|
|
2,966
|
|
2,435
|
|
455
|
|
76
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
926
|
|
$
486
|
|
$
472
|
|
$
(32)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
213
|
|
126
|
|
96
|
|
(9)
|
Earnings from
equity investments
|
|
27
|
|
26
|
|
—
|
|
1
|
Earnings (loss)
from discontinued operations, net of tax
|
|
(3)
|
|
—
|
|
(3)
|
|
—
|
Non-controlling
interests
|
|
5
|
|
4
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
732
|
|
$
382
|
|
$
373
|
|
$
(23)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
2.60
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
$
(0.01)
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
2.58
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
$
(0.01)
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
2.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
283
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
285
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
September 30,
2021
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
732
|
|
$
382
|
|
$
373
|
|
$
(23)
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
from discontinued operations, net of tax
|
|
$
(3)
|
|
$
—
|
|
$
(3)
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations, attributable to common
shareholders
|
|
$
735
|
|
$
382
|
|
$
376
|
|
$
(23)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
926
|
|
486
|
|
472
|
|
(32)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
146
|
|
169
|
|
(23)
|
|
—
|
Indexed product
related derivatives
|
|
14
|
|
—
|
|
14
|
|
—
|
Purchase price
amortization
|
|
25
|
|
14
|
|
7
|
|
4
|
Transaction
costs
|
|
3
|
|
—
|
|
1
|
|
2
|
Amortization of
actuarial intangibles
|
|
12
|
|
—
|
|
12
|
|
—
|
Other
non-recurring items
|
|
(284)
|
|
—
|
|
(284)
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
842
|
|
$
669
|
|
$
199
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(84)
|
|
$
183
|
|
$
(273)
|
|
$
6
|
Income taxes on
non-GAAP adjustments
|
|
12
|
|
(44)
|
|
57
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
(72)
|
|
$
139
|
|
$
(216)
|
|
$
5
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings attributable to common shareholders
|
|
$
663
|
|
$
521
|
|
$
160
|
|
$
(18)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
2.33
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Nine Months
Ended
|
|
|
|
|
September 30,
2022
|
|
|
|
|
Direct title
premiums
|
|
$
2,314
|
|
$
2,314
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
3,268
|
|
3,268
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
3,444
|
|
1,994
|
|
1,364
|
|
86
|
Total title and
escrow
|
|
9,026
|
|
7,576
|
|
1,364
|
|
86
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,352
|
|
124
|
|
1,216
|
|
12
|
Recognized gains and
losses, net
|
|
(1,375)
|
|
(472)
|
|
(863)
|
|
(40)
|
Total
revenue
|
|
9,003
|
|
7,228
|
|
1,717
|
|
58
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,458
|
|
2,322
|
|
110
|
|
26
|
Agent
commissions
|
|
2,521
|
|
2,521
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,329
|
|
1,178
|
|
77
|
|
74
|
Benefits & other
policy reserve changes
|
|
382
|
|
—
|
|
382
|
|
—
|
Depreciation and
amortization
|
|
474
|
|
105
|
|
351
|
|
18
|
Provision for title
claim losses
|
|
251
|
|
251
|
|
—
|
|
—
|
Interest
expense
|
|
89
|
|
—
|
|
23
|
|
66
|
Total
expenses
|
|
7,504
|
|
6,377
|
|
943
|
|
184
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,499
|
|
$
851
|
|
$
774
|
|
$
(126)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
434
|
|
261
|
|
193
|
|
(20)
|
Earnings (loss)
from equity investments
|
|
16
|
|
16
|
|
—
|
|
—
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling
interests
|
|
13
|
|
14
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,068
|
|
$
592
|
|
$
581
|
|
$
(105)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
3.86
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
3.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
3.83
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
3.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
277
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
279
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Nine Months
Ended
|
|
|
|
|
September 30,
2022
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,068
|
|
$
592
|
|
$
581
|
|
$
(105)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
1,068
|
|
$
592
|
|
$
581
|
|
$
(105)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,499
|
|
$
851
|
|
$
774
|
|
$
(126)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
493
|
|
472
|
|
(19)
|
|
40
|
Indexed product
related derivatives
|
|
(566)
|
|
—
|
|
(566)
|
|
—
|
Purchase price
amortization
|
|
70
|
|
43
|
|
16
|
|
11
|
Transaction
costs
|
|
4
|
|
—
|
|
8
|
|
(4)
|
Amortization of
actuarial intangibles
|
|
87
|
|
—
|
|
87
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,587
|
|
$
1,366
|
|
$
300
|
|
$
(79)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
88
|
|
$
515
|
|
$
(474)
|
|
$
47
|
Income taxes on
non-GAAP adjustments
|
|
(35)
|
|
(124)
|
|
100
|
|
(11)
|
Deferred tax
asset valuation allowance
|
|
78
|
|
67
|
|
—
|
|
11
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
130
|
|
$
458
|
|
$
(374)
|
|
$
46
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to common
shareholders
|
|
$
1,198
|
|
$
1,050
|
|
$
207
|
|
$
(59)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to common shareholders -
diluted
|
|
$
4.29
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
|
|
|
|
F&G
|
|
|
Nine Months
Ended
|
|
Consolidated
|
|
Title
|
|
|
Corporate and
Other
|
September 30,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
2,546
|
|
$
2,546
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
3,632
|
|
3,632
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
3,123
|
|
2,433
|
|
557
|
|
133
|
Total title and
escrow
|
|
9,301
|
|
8,611
|
|
557
|
|
133
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,424
|
|
83
|
|
1,341
|
|
—
|
Recognized gains and
losses, net
|
|
121
|
|
(258)
|
|
370
|
|
9
|
Total
revenue
|
|
10,846
|
|
8,436
|
|
2,268
|
|
142
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,596
|
|
2,418
|
|
93
|
|
85
|
Agent
commissions
|
|
2,787
|
|
2,787
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,432
|
|
1,281
|
|
76
|
|
75
|
Benefits & other
policy reserve changes
|
|
734
|
|
—
|
|
734
|
|
—
|
Depreciation and
amortization
|
|
540
|
|
103
|
|
419
|
|
18
|
Provision for title
claim losses
|
|
278
|
|
278
|
|
—
|
|
—
|
Interest
expense
|
|
83
|
|
—
|
|
21
|
|
62
|
Total
expenses
|
|
8,450
|
|
6,867
|
|
1,343
|
|
240
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
2,396
|
|
$
1,569
|
|
$
925
|
|
$
(98)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
555
|
|
389
|
|
189
|
|
(23)
|
Earnings from
equity investments
|
|
54
|
|
48
|
|
—
|
|
6
|
Earnings (loss)
from discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
Non-controlling
interests
|
|
14
|
|
13
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,889
|
|
$
1,215
|
|
$
744
|
|
$
(70)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
6.57
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
$
0.03
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
6.60
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
6.53
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
$
0.03
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
6.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
286
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
288
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Nine Months
Ended
|
|
|
|
|
September 30,
2021
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,889
|
|
$
1,215
|
|
$
744
|
|
$
(70)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
1,881
|
|
$
1,215
|
|
$
736
|
|
$
(70)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
2,396
|
|
1,569
|
|
925
|
|
(98)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
154
|
|
258
|
|
(95)
|
|
(9)
|
Indexed product
related derivatives
|
|
(167)
|
|
—
|
|
(167)
|
|
—
|
Purchase price
amortization
|
|
74
|
|
42
|
|
20
|
|
12
|
Transaction
costs
|
|
13
|
|
—
|
|
5
|
|
8
|
Amortization of
actuarial intangibles
|
|
110
|
|
—
|
|
110
|
|
—
|
Other
non-recurring items
|
|
(284)
|
|
—
|
|
(284)
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
2,296
|
|
$
1,869
|
|
$
514
|
|
$
(87)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(100)
|
|
$
300
|
|
$
(411)
|
|
$
11
|
Income taxes on
non-GAAP adjustments
|
|
10
|
|
(72)
|
|
84
|
|
(2)
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
(91)
|
|
$
228
|
|
$
(327)
|
|
$
8
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
1,790
|
|
$
1,443
|
|
$
409
|
|
$
(62)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
6.22
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SUMMARY BALANCE
SHEET INFORMATION
(In
millions)
|
|
|
|
September
30,
2022
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash and investment
portfolio
|
|
|
$
45,294
|
|
|
$
47,135
|
Goodwill
|
|
|
4,609
|
|
|
4,539
|
Title plant
|
|
|
418
|
|
|
400
|
Total assets
|
|
|
62,164
|
|
|
60,690
|
Notes
payable
|
|
|
2,693
|
|
|
3,096
|
Reserve for title claim
losses
|
|
|
1,853
|
|
|
1,883
|
Secured trust
deposits
|
|
|
1,043
|
|
|
934
|
Accumulated other
comprehensive (loss) earnings
|
|
|
(3,186)
|
|
|
779
|
Non-controlling
interests
|
|
|
87
|
|
|
43
|
Total equity and
non-controlling interests
|
|
|
5,799
|
|
|
9,457
|
Total equity
attributable to common shareholders
|
|
|
5,712
|
|
|
9,414
|
Non-GAAP Measures and Other Information
Title
The table below reconciles pre-tax title earnings to adjusted
pre-tax title earnings.
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
(Dollars in
millions)
|
September 30,
2022
|
September 30,
2021
|
|
|
September 30,
2022
|
September 30,
2021
|
Pre-tax
earnings
|
$
335
|
$
486
|
|
|
$
851
|
$
1,569
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
48
|
169
|
|
|
472
|
258
|
Purchase price
amortization
|
17
|
14
|
|
|
43
|
42
|
Total non-GAAP
adjustments
|
65
|
183
|
|
|
515
|
300
|
Adjusted pre-tax
earnings
|
$
400
|
$
669
|
|
|
$
1,366
|
$
1,869
|
Adjusted pre-tax
margin
|
17.1 %
|
21.7 %
|
|
|
17.7 %
|
21.5 %
|
FIDELITY NATIONAL
FINANCIAL, INC.
QUARTERLY OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Q3
2022
|
|
Q2
2022
|
|
Q1
2022
|
|
Q4
2021
|
|
Q3
2021
|
|
Q2
2021
|
|
Q1
2021
|
|
Q4
2020
|
Quarterly Opened
Orders ('000's except % data)
|
Total opened
orders*
|
|
363
|
|
443
|
|
522
|
|
536
|
|
688
|
|
695
|
|
770
|
|
728
|
Total opened orders per
day*
|
|
5.7
|
|
6.9
|
|
8.6
|
|
8.5
|
|
10.8
|
|
10.9
|
|
12.6
|
|
11.6
|
Purchase % of opened
orders
|
|
76 %
|
|
75 %
|
|
62 %
|
|
53 %
|
|
50 %
|
|
53 %
|
|
42 %
|
|
38 %
|
Refinance % of opened
orders
|
|
24 %
|
|
25 %
|
|
38 %
|
|
47 %
|
|
50 %
|
|
47 %
|
|
58 %
|
|
62 %
|
Total closed
orders*
|
|
278
|
|
348
|
|
380
|
|
477
|
|
527
|
|
568
|
|
597
|
|
617
|
Total closed orders per
day*
|
|
4.3
|
|
5.4
|
|
6.2
|
|
7.6
|
|
8.2
|
|
8.9
|
|
9.8
|
|
9.8
|
Purchase % of closed
orders
|
|
76 %
|
|
71 %
|
|
55 %
|
|
51 %
|
|
50 %
|
|
47 %
|
|
34 %
|
|
38 %
|
Refinance % of closed
orders
|
|
24 %
|
|
29 %
|
|
45 %
|
|
49 %
|
|
50 %
|
|
53 %
|
|
66 %
|
|
62 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(millions, except orders in '000's)
|
Total commercial
revenue
|
|
$ 381
|
|
$ 436
|
|
$ 374
|
|
$ 546
|
|
$ 366
|
|
$ 347
|
|
$ 257
|
|
$ 322
|
Total commercial opened
orders
|
|
54.8
|
|
64.2
|
|
66.1
|
|
64.5
|
|
66.8
|
|
69.4
|
|
62.2
|
|
57.0
|
Total commercial closed
orders
|
|
35.2
|
|
39.7
|
|
37.4
|
|
46.1
|
|
40.1
|
|
42.3
|
|
34.8
|
|
39.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$ 191
|
|
$ 220
|
|
$ 196
|
|
$ 313
|
|
$ 183
|
|
$ 176
|
|
$ 127
|
|
$ 177
|
National commercial
opened orders
|
|
22.1
|
|
26.7
|
|
27.5
|
|
26.0
|
|
27.7
|
|
27.4
|
|
23.4
|
|
21.4
|
National commercial
closed orders
|
|
14.0
|
|
15.3
|
|
14.6
|
|
18.1
|
|
14.8
|
|
14.9
|
|
11.2
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per
File
|
Fee per file
|
|
$
3,621
|
|
$
3,557
|
|
$
2,891
|
|
$
3,023
|
|
$
2,581
|
|
$
2,444
|
|
$
1,944
|
|
$
2,116
|
Residential fee per
file
|
|
$
2,697
|
|
$
2,695
|
|
$
2,188
|
|
$
2,158
|
|
$
2,097
|
|
$
2,030
|
|
$
1,644
|
|
$
1,661
|
Total commercial fee
per file
|
|
$ 10,800
|
|
$
11,000
|
|
$
10,000
|
|
$
11,800
|
|
$
9,100
|
|
$
8,200
|
|
$
7,400
|
|
$
8,200
|
National commercial fee
per file
|
|
$ 13,600
|
|
$
14,400
|
|
$
13,400
|
|
$
17,300
|
|
$ 12,400
|
|
$
11,800
|
|
$
11,300
|
|
$
13,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Staffing
|
Total field operations
employees
|
|
12,000
|
|
12,700
|
|
13,400
|
|
13,600
|
|
13,700
|
|
13,500
|
|
13,200
|
|
12,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual title claims
paid ($ millions)
|
|
$ 65
|
|
$
55
|
|
$
54
|
|
$
62
|
|
$ 55
|
|
$
56
|
|
$
46
|
|
$
54
|
Title (continued)
FIDELITY NATIONAL
FINANCIAL, INC.
MONTHLY TITLE ORDER
STATISTICS
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
Month
|
|
/ (%
Purchase)
|
|
/ (%
Purchase)
|
July 2022
|
|
|
119,000
|
76 %
|
|
|
92,000
|
75 %
|
August 2022
|
|
|
132,000
|
76 %
|
|
|
98,000
|
75 %
|
September
2022
|
|
|
112,000
|
76 %
|
|
|
88,000
|
76 %
|
|
|
|
|
|
|
|
Third Quarter
2022
|
|
|
363,000
|
76 %
|
|
|
278,000
|
76 %
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
Month
|
|
/ (%
Purchase)
|
|
|
/ (%
Purchase)
|
July 2021
|
|
|
230,000
|
50 %
|
|
|
171,000
|
52 %
|
August 2021
|
|
|
242,000
|
49 %
|
|
|
181,000
|
48 %
|
September
2021
|
|
|
216,000
|
50 %
|
|
|
175,000
|
49 %
|
|
|
|
|
|
|
|
Third Quarter
2021
|
|
|
688,000
|
50 %
|
|
|
527,000
|
50 %
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
F&G
The table below reconciles net earnings attributable to common
shareholders to adjusted net earnings attributable to common
shareholders.
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
(Dollars in
millions)
|
September 30,
2022
|
|
September 30,
2021
|
|
|
September 30,
2022
|
|
September 30,
2021
|
Net earnings (loss)
attributable to common shareholders
|
$
115
|
|
$
373
|
|
|
$
581
|
|
$
744
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
—
|
|
(3)
|
|
|
—
|
|
8
|
Net earnings (loss)
from continuing operations attributable to
common shareholders
|
$
115
|
|
$
376
|
|
|
$
581
|
|
$
736
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
(25)
|
|
(23)
|
|
|
(19)
|
|
(95)
|
Indexed product
related derivatives
|
(148)
|
|
14
|
|
|
(566)
|
|
(167)
|
Purchase price
amortization
|
5
|
|
7
|
|
|
16
|
|
20
|
Transaction
costs
|
4
|
|
1
|
|
|
8
|
|
5
|
Amortization of
actuarial intangibles
|
33
|
|
12
|
|
|
87
|
|
110
|
Other
non-recurring items
|
—
|
|
(284)
|
|
|
—
|
|
(284)
|
Income taxes on
non-GAAP adjustments
|
28
|
|
57
|
|
|
100
|
|
84
|
Adjusted net
earnings attributable to common
shareholders(1)
|
$
12
|
|
$
160
|
|
|
$
207
|
|
$
409
|
Adjusted net earnings for the third quarter of 2022
included a $10 million unrealized
loss from alternative investments and $5
million of other net expense items. Alternative
investments net investment income based on management's long-term
expected return of approximately 10% was $83
million
Adjusted net earnings for the third quarter of 2021
included a $108 million unrealized
gain from alternative investments and $27
million of CLO redemption gains and other income.
Alternative investments net investment income based on management's
long-term expected return of approximately 10% was $49 million
Adjusted net earnings for the nine months ended September 30, 2022 included a
$66 million unrealized gain from
alternative investments, $42 million
income from actuarial assumption updates and other changes in
reserves, and $20 million of CLO
redemption gains and other income; partially offset by ($47) million income tax valuation allowance and
other expense items. Alternative investments net investment
income based on management's long-term expected return of
approximately 10% was $174
million
Adjusted net earnings for the nine months ended September 30, 2021 included a
$241 million unrealized gain from
alternative investments, $36 million
of CLO redemption gains and other income, $17 million income from net favorable mortality
experience and other reserve changes, and $8
million income from actuarial intangibles unlocking.
Alternative investments net investment income based on management's
long-term expected return of approximately 10% was $103 million
F&G (continued)
The tables below provide a comparison of adjusted net earnings
by quarter per the new definition, which no longer includes the
alternative investment yield adjustment to normalize alternative
investment portfolio returns, versus results previously reported
for the F&G segment in the 9 quarters subsequent to the
acquisition by FNF on June 1,
2020:
|
Three Months
Ended
|
(Dollars in
millions)
|
September 30,
2022
|
|
June
30,
2022
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
September 30,
2021
|
Net earnings (loss)
attributable to common shareholders
|
$
115
|
|
$
230
|
|
$
236
|
|
|
$
121
|
|
$
373
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
|
—
|
|
(3)
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
$
115
|
|
$
230
|
|
$
236
|
|
|
$
121
|
|
$
376
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
(25)
|
|
23
|
|
(17)
|
|
|
(14)
|
|
(23)
|
Indexed product
related derivatives
|
(148)
|
|
(198)
|
|
(220)
|
|
|
21
|
|
14
|
Purchase price
amortization
|
5
|
|
5
|
|
6
|
|
|
6
|
|
7
|
Transaction
costs
|
4
|
|
4
|
|
—
|
|
|
—
|
|
1
|
Amortization of
actuarial intangibles
|
33
|
|
17
|
|
37
|
|
|
13
|
|
12
|
Other
non-recurring items
|
—
|
|
—
|
|
—
|
|
|
—
|
|
(284)
|
Income taxes on
non-GAAP adjustments
|
28
|
|
31
|
|
41
|
|
|
(5)
|
|
57
|
Adjusted net
earnings attributable to common
shareholders(1)
|
$
12
|
|
$
112
|
|
$
83
|
|
|
$
142
|
|
$
160
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
under previous definition
|
$
105
|
|
$
128
|
|
$
82
|
|
|
$
90
|
|
$
101
|
Difference in adjusted
net earnings to amounts previously reported under old
definition
|
$
(93)
|
|
$
(16)
|
|
$
1
|
|
|
$
52
|
|
$
59
|
|
|
Three Months
Ended
|
(Dollars in
millions)
|
|
June
30,
2021
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
September 30,
2020
|
Net earnings (loss)
attributable to common shareholders
|
|
$
82
|
|
$
289
|
|
|
$
137
|
|
$
38
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
|
6
|
|
5
|
|
|
(2)
|
|
(28)
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
76
|
|
$
284
|
|
|
$
139
|
|
$
66
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
9
|
|
(81)
|
|
|
(99)
|
|
(28)
|
Indexed product
related derivatives
|
|
67
|
|
(248)
|
|
|
46
|
|
19
|
Purchase price
amortization
|
|
6
|
|
7
|
|
|
7
|
|
7
|
Transaction
costs
|
|
2
|
|
2
|
|
|
4
|
|
10
|
Amortization of
actuarial intangibles
|
|
12
|
|
86
|
|
|
38
|
|
6
|
Other
non-recurring items
|
|
—
|
|
—
|
|
|
—
|
|
—
|
Income taxes on
non-GAAP adjustments
|
|
(20)
|
|
47
|
|
|
(2)
|
|
(8)
|
Adjusted net
earnings attributable to common
shareholders(1)
|
|
$
152
|
|
$
97
|
|
|
$
133
|
|
$
72
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
under previous definition
|
|
$
92
|
|
$
78
|
|
|
$
128
|
|
$
74
|
Difference in adjusted
net earnings to amounts previously reported under old
definition
|
|
$
60
|
|
$
19
|
|
|
$
5
|
|
$
(2)
|
|
|
|
|
|
|
|
|
|
|
|
F&G (continued)
The table below provides a summary of sales highlights.
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
September 30,
2022
|
|
September 30,
2021
|
Total annuity
sales(1)
|
|
$
2,217
|
|
$
1,531
|
|
|
$
5,853
|
|
$
4,692
|
Indexed universal life
sales(1)
|
|
$
36
|
|
$
24
|
|
|
$
92
|
|
$
59
|
Institutional
sales(1)(2)
|
|
$
620
|
|
$
1,521
|
|
|
$
2,590
|
|
$
2,646
|
Total gross
sales(1)
|
|
$
2,873
|
|
$
3,076
|
|
|
$
8,535
|
|
$
7,397
|
Footnotes:
- Non-GAAP financial measure. See the Non-GAAP Measures section
below for additional information.
- 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 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; 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;
- Certain income tax adjustments: the impacts related to unusual
tax items that do not reflect our core operating performance such
as the establishment or reversal of significant deferred tax asset
valuation allowances in our Title and Corporate and Other
segments;
- 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;
- Amortization of actuarial intangibles and SOP 03-1 reserve
offset: The intangibles amortization and SOP 03-1 change offsets
related to the above mentioned adjustments; and
- Income taxes: the income tax impact related to the above
mentioned 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.
Assets Under Management (AUM)
AUM is calculated as the sum of:
-
- total invested assets at amortized cost, excluding derivatives,
net of reinsurance qualifying for risk transfer in accordance with
GAAP;
- 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, funding agreement and non-life contingent PRT
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. Life contingent 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.
View original
content:https://www.prnewswire.com/news-releases/fnf-reports-third-quarter-2022-financial-results-301672199.html
SOURCE Fidelity National Financial, Inc.; FGL Holdings