JACKSONVILLE, Fla., Dec. 1, 2022
/PRNewswire/ -- Fidelity National Financial, Inc. (NYSE: FNF)
("FNF" or 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
subsidiary, F&G Annuities & Life, Inc. ("F&G"), today
announced completion of the distribution to FNF shareholders, on a
pro rata basis, of approximately 15% of the common stock of its
subsidiary, F&G. Effective today, F&G has commenced
"regular-way" trading of its common stock on the New York Stock
Exchange ("NYSE") under the symbol "FG". FNF retains control of
F&G through an approximate 85% equity ownership stake and will
continue to trade on the NYSE under the symbol "FNF".
William P. Foley, II, Chairman of
the Board of FNF, commented, "We are pleased to have successfully
completed our planned dividend to FNF shareholders, on a pro rata
basis, of approximately 15% of F&G's common stock, which we
believe will highlight the substantial equity value of F&G that
has been and will continue to be created. At the time of our
acquisition of F&G in June of 2020, we committed to F&G
doubling assets under management to $50
billion over five years through organic growth. In just over
two years, Chris and his team are well ahead of expectations with
F&G's assets under management increasing to $42 billion as of the third quarter of 2022. This
financial performance not only validates our initial strategy
during the acquisition, it also provides confidence for the future
of F&G and its ability to generate value for both FNF and
F&G shareholders."
Mike Nolan, Chief Executive
Officer of FNF, said, "We want to congratulate the F&G team on
their transition back to a public company. Importantly, we remain
committed to F&G's business and talented team as F&G
continues to grow through its multi-channel new business platform,
while also benefitting from the rising interest rate environment.
As F&G continues to scale, their steady and growing earnings
over time will provide a counterbalance for our business during
higher mortgage rate environments. In fact, F&G has contributed
$900 million of adjusted net earnings
over the last nine quarters on a cumulative basis. By retaining an
approximate 85% majority interest in F&G, we will continue to
benefit from F&G's growth and cash flow generation."
Chris Blunt, President and Chief
Executive Officer of F&G, added, "We are thrilled to achieve
this milestone in partnership with FNF and appreciate their
continued support. Since the time of our merger with FNF, we have
successfully and profitably increased our market share as a result
of greater exposure to new and existing products and distribution
channels, growing assets under management to $42 billion. As a result, our business has
reached an inflection point to balance our deployment of capital to
fund growth, while also returning capital to shareholders through a
quarterly cash dividend at an initial aggregate amount of
approximately $100 million per year
beginning in 2023. Looking forward, we are well-positioned for
continued growth and I would like to thank our team for their
extraordinary efforts."
BofA Securities, Inc. served as FNF's financial advisor and
Skadden, Arps, Slate, Meagher & Flom LLP and Weil, Gotshal
& Manges LLP served as FNF's legal counsel in connection with
the distribution transaction.
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 www.fnf.com.
About F&G
F&G is part of the FNF family of companies. F&G (NYSE:
FG) 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
www.fglife.com.
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: diversion of management's
attention and the potential impact of the consummation of the
F&G transaction on relationships, including with employees,
suppliers, customers and competitors; our ability to successfully
realize the anticipated benefits of the separation and
distribution; changes in general economic, business, political
crisis, war 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.
FNF-G
Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
515.330.3307
FNF shareholders contact:
Investors@fnf.com
F&G shareholders contact:
Investor.relations@fglife.com
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SOURCE Fidelity National Financial, Inc.