JACKSONVILLE, Fla., Nov. 7, 2023
/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 its
majority-owned, publicly traded subsidiary F&G Annuities &
Life, Inc. (NYSE:FG) ("F&G"), today reported financial results
for the third quarter ended September 30, 2023.
Net earnings attributable to common shareholders for
the third quarter of $426 million, or
$1.57 per diluted share (per share),
compared to $362 million, or
$1.32 per share, for the third
quarter of 2022. Net earnings attributable to common
shareholders for the third quarter of 2023 includes $155 million of net favorable mark-to-market
effects and $62 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
$333 million, or $1.23 per share, compared to $272 million, or $0.99 per share, for the third quarter of 2022.
The Title Segment contributed $245
million for the third quarter, compared to $298 million for the third quarter 2022.
The F&G Segment contributed $102
million for the third quarter, compared to an adjusted net
loss of $12 million for the third
quarter 2022. The Corporate Segment had an adjusted net loss
of $14 million for the third quarter,
compared to an adjusted net loss of $14
million for the third quarter of 2022. The results reflect
Title's considerable decline in volumes as compared to the prior
year given higher mortgage rates. In addition, F&G's
adjusted net earnings include alternative investment returns below
our long-term expectations by $0.09
per share. Please see "Segment Financial Results" for F&G
under "Non-GAAP Measures and Other Information" for further
explanation.
Company Highlights
- Solid Title Revenue: For the Title Segment, total
revenue of $1.9 billion, an 18%
decrease from $2.3 billion in the
third quarter of 2022. Total revenue, excluding recognized gains
and losses, of $1.9 billion for the
third quarter, which, although an 18% decrease from $2.3 billion in the third quarter of 2022, is
more comparable with historical levels as seen in 2018 and
2019
- Steady F&G Segment gross sales and record assets under
management: For the F&G Segment, gross sales of
$2.8 billion for the third quarter, a
3% decrease from the third quarter of 2022, reflecting lower retail
channel sales offset by higher institutional market sales. F&G
achieved record assets under management (AUM) of $47.4 billion as of September 30, 2023
- Ample deployable capital in a challenging market: FNF
paid common dividends of $0.45 per
share for $123 million and ended the
third quarter with $949 million in
cash and short-term liquid investments at the holding company
William P. Foley, II, commented,
"Our third quarter Title results highlight the strength of our
business and the competitive advantage that we continue to maintain
and grow. While residential purchase applications hit their
lowest levels since 1995, we once again delivered an industry
leading adjusted pre-tax title margin of 16.2%, further
demonstrating our ability to navigate an extremely challenging
environment. Our results also display the increasingly
important contribution of F&G's counter cyclical business whose
assets under management grew to a record $47
billion in the quarter, while the F&G segment's adjusted
net earnings contributed 31% of FNF's consolidated adjusted net
earnings."
Mr. Foley continued, "Given the market backdrop, we have
maintained excess liquidity given the impact of higher rates on the
real estate market and the risk that interest rates could stay
higher for a prolonged period. As a result, we ended the
third quarter with $949 million in
cash and short-term liquid investments which compares to
$885 million at the end of the second
quarter. We continue to be committed to our quarterly cash
dividend and are well positioned to take advantage of opportunities
that could arise from any market dislocation."
Summary Financial Results
|
(In millions, except
per share data)
|
Three Months
Ended
|
Year to
Date
|
|
September 30,
2023
|
|
September 30,
2022
|
2023
|
|
2022
|
|
Total
revenue
|
$
2,778
|
|
$
3,206
|
$ 8,320
|
|
$ 9,008
|
|
F&G total gross
sales1
|
$
2,781
|
|
$
2,873
|
$ 9,070
|
|
$ 8,535
|
|
F&G assets under
management1
|
$
47,437
|
|
$
41,988
|
$
47,437
|
|
$
41,988
|
|
Total assets
|
$
74,002
|
|
$
61,725
|
$
74,002
|
|
$
61,725
|
|
Adjusted pre-tax title
margin
|
16.2 %
|
|
17.1 %
|
14.3 %
|
|
17.7 %
|
|
Net earnings
attributable to common shareholders
|
$
426
|
|
$
362
|
$
586
|
|
$ 1,299
|
|
Net earnings per share
attributable to common shareholders
|
$
1.57
|
|
$
1.32
|
$
2.16
|
|
$
4.66
|
|
Adjusted net
earnings1
|
$
333
|
|
$
272
|
$
758
|
|
$ 1,215
|
|
Adjusted net earnings
per share1
|
$
1.23
|
|
$
0.99
|
$
2.80
|
|
$
4.35
|
|
Weighted average common
diluted shares
|
271
|
|
275
|
271
|
|
279
|
|
Total common shares
outstanding
|
272
|
|
273
|
272
|
|
273
|
|
____________
|
|
1 See
definition of non-GAAP measures below
|
Segment Financial Results
Title Segment
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.
Mike Nolan, Chief Executive
Officer, said, "We ended the third quarter in a strong
position. Over the last year, we have been reducing our
expenses as residential orders have declined while continuing to
invest in exceptional talent, technology and acquiring businesses
that, taken together, position FNF for long term growth. We
have done this while also maintaining our market presence, industry
leading profitability and our strong balance sheet. While we
expect interest rates will moderate and mortgage volumes will
improve at some point, we stand ready for the difficult market
conditions to persist and will be opportunistic as we strive to
expand our business and capabilities now and in the future."
Mr. Nolan added, "Our scale, profitability and balance sheet
provide us with the ability to invest through cycles while
returning cash to our shareholders. During the first nine
months of 2023, we have continued to invest in acquisitions and
technology, while returning $366
million to our shareholders through our common
dividend."
Third Quarter 2023 Highlights
- Total revenue of $1.9
billion, compared with $2.3
billion in the third quarter of 2022
- Total revenue, excluding recognized gains and losses, of
$1.9 billion, an 18% decrease from
third quarter of 2022
- Direct title premiums of $524
million, a 24% decrease from third quarter of 2022
- Agency title premiums of $728
million, a 25% decrease from third quarter of 2022
- Commercial revenue of $263
million, a 31% decrease from third quarter of 2022
- Purchase orders opened decreased 7% on a daily basis and
purchase orders closed decreased 13% on a daily basis from the
third quarter of 2022
- Refinance orders opened decreased 25% on a daily basis
and refinance orders closed decreased 35% on a daily basis from
third quarter of 2022
- Commercial orders opened decreased 10% and commercial
orders closed decreased 27% from third quarter of 2022
- Total fee per file of $3,618 for the third quarter, in line with third
quarter of 2022
Third Quarter 2023 Financial Results
- Pre-tax title margin of 13.2% and industry leading
adjusted pre-tax title margin of 16.2% for the third quarter
of 2023, compared to 14.6% and 17.1%, respectively, in the third
quarter of 2022
- Pre-tax earnings from continuing operations in Title for
the third quarter of $248 million,
compared with $335 million for the
third quarter of 2022
- Adjusted pre-tax earnings in Title for the third quarter
of $311 million compared with
$400 million for the third quarter of
2022. The decrease from the prior year quarter was primarily a
result of the considerable decline in residential and commercial
volumes due to higher mortgage rates
F&G Segment
This segment consists of
operations of FNF's majority-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, commented, "We generated gross sales of
$2.8 billion in the third quarter
driven by strength in our institutional markets. Net sales
were $2.3 billion, and we ended the
quarter with $52.9 billion in assets
under management before flow reinsurance, up 20% over $44.0 billion at the end of the third quarter of
2022. Of note, we have added a second flow reinsurance
partner and increased our flow reinsurance to 90% of MYGA sales
starting in September. Overall, the demand environment
continues to be healthy, and we remain on track to achieve
$12 to $13
billion of full year sales having delivered total gross
sales of $9.1 billion thus far in
2023."
Mr. Blunt concluded, "We continue to execute on our initiatives
to grow our business while delivering margin expansion and enhanced
returns. Additionally, the credit quality of our portfolio
remains strong as we continue to conservatively manage our
investment portfolio. Taken together, the business is
performing well as we head into the final quarter of the year."
Third Quarter 2023
- Gross sales: Gross sales of $2.8
billion for the third quarter, a decrease of 3% from the
third quarter of 2022, driven by lower retail channel sales offset
by higher institutional market sales
- Profitable Retail channel sales of $1.9 billion for the third quarter, a 17%
decrease from $2.3 billion in the
third quarter of 2022. Coming off record sales in the first half of
the year, retail sales were intentionally lower in the quarter as
we finalized our reinsurance agreements and enhanced product
features to position us to finish strong in 2023 and create
momentum for 2024
- Strong Institutional market sales of $0.9 billion, comprised of $0.5 billion pension risk transfer and
$0.4 billion funding agreements,
compared to $0.6 billion of pension
risk transfer in the third quarter of 2022
- Net sales of $2.3 billion
for the third quarter, compared to $2.2
billion in the third quarter of 2022. In addition, F&G
has increased flow reinsurance to 90% of MYGA sales in September of
2023
- Assets under management (AUM) of $47.4 billion as of September 30, 2023, an increase of 13% from
$42.0 billion as of September 30, 2022, driven by net new business
flows, stable inforce retention and net debt proceeds over the past
twelve months. AUM before flow reinsurance was $52.9 billion as of September 30, 2023
- Net earnings attributable to common shareholders for F&G
Segment of $259 million for the
third quarter due to favorable mark-to-market movement, compared to
$187 million for the third quarter of
2022 which included favorable mark-to-market movement
- Adjusted net earnings for F&G Segment of
$102 million for the third quarter,
compared to adjusted net loss of $12
million for the third quarter of 2022. F&G's adjusted
net earnings (loss) reflect significant items and alternatives
investment portfolio short-term mark-to-market movement that
differs from long-term return expectation. As compared to the prior
year, adjusted net earnings reflect asset growth, product margin
expansion and earnings from accretive flow reinsurance. In
addition, the third quarter of 2023 includes short term investment
income from alternative investments, whereas the third quarter of
2022 included short term investment losses from alternative
investments. Please see "Segment Financial Results" for F&G
under "Non-GAAP Measures and Other Information" for further
explanation.
Conference Call
We will host a call with investors and
analysts to discuss FNF's third quarter 2023 results on
Wednesday, November 8, 2023,
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
3:00 p.m. Eastern Time on
November 8, 2023, through
November 15, 2023, by dialing
1-844-512-2921 (USA) or
1-412-317-6671 (International). The access code will be
13735002.
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: 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
SOURCE: Fidelity National Financial, Inc.; F&G
Annuities & Life, Inc.
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Three Months
Ended
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
Direct title
premiums
|
|
$
524
|
|
$
524
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
728
|
|
728
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,196
|
|
577
|
|
582
|
|
37
|
|
Total title and
escrow
|
|
2,448
|
|
1,829
|
|
582
|
|
37
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
686
|
|
92
|
|
578
|
|
16
|
|
Recognized gains and
losses, net
|
|
(356)
|
|
(46)
|
|
(309)
|
|
(1)
|
|
Total
revenue
|
|
2,778
|
|
1,875
|
|
851
|
|
52
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
734
|
|
654
|
|
58
|
|
22
|
|
Agent
commissions
|
|
564
|
|
564
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
380
|
|
313
|
|
38
|
|
29
|
|
Benefits & other
policy reserve changes
|
|
292
|
|
—
|
|
292
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(49)
|
|
—
|
|
(49)
|
|
—
|
|
Depreciation and
amortization
|
|
153
|
|
39
|
|
108
|
|
6
|
|
Provision for title
claim losses
|
|
57
|
|
57
|
|
—
|
|
—
|
|
Interest
expense
|
|
44
|
|
—
|
|
24
|
|
20
|
|
Total
expenses
|
|
2,175
|
|
1,627
|
|
471
|
|
77
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
603
|
|
$
248
|
|
$
380
|
|
$
(25)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
141
|
|
73
|
|
74
|
|
(6)
|
|
Earnings (loss)
from equity investments
|
|
15
|
|
15
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
51
|
|
5
|
|
47
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
426
|
|
$
185
|
|
$
259
|
|
$
(18)
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
270
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
271
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Three Months
Ended
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
426
|
|
$
185
|
|
$
259
|
|
$
(18)
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
603
|
|
$
248
|
|
$
380
|
|
$
(25)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
43
|
|
46
|
|
(4)
|
|
1
|
|
Market related
liability adjustments
|
|
(237)
|
|
—
|
|
(237)
|
|
—
|
|
Purchase price
amortization
|
|
26
|
|
17
|
|
5
|
|
4
|
|
Transaction
costs
|
|
1
|
|
—
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
436
|
|
$
311
|
|
$
145
|
|
$
(20)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(167)
|
|
$
63
|
|
$
(235)
|
|
$
5
|
|
Income taxes on
non-GAAP adjustments
|
|
33
|
|
(15)
|
|
49
|
|
(1)
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
29
|
|
—
|
|
29
|
|
—
|
|
Deferred tax
asset valuation allowance
|
|
12
|
|
12
|
|
—
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
(93)
|
|
$
60
|
|
$
(157)
|
|
$
4
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
333
|
|
$
245
|
|
$
102
|
|
$
(14)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
1.23
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(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
|
|
1,371
|
|
623
|
|
702
|
|
46
|
|
Total title and
escrow
|
|
3,025
|
|
2,277
|
|
702
|
|
46
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
411
|
|
62
|
|
340
|
|
9
|
|
Recognized gains and
losses, net
|
|
(230)
|
|
(48)
|
|
(140)
|
|
(42)
|
|
Total
revenue
|
|
3,206
|
|
2,291
|
|
902
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
796
|
|
725
|
|
46
|
|
25
|
|
Agent
commissions
|
|
747
|
|
747
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
430
|
|
372
|
|
28
|
|
30
|
|
Benefits & other
policy reserve changes
|
|
570
|
|
—
|
|
570
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(68)
|
|
—
|
|
(68)
|
|
—
|
|
Depreciation and
amortization
|
|
126
|
|
38
|
|
82
|
|
6
|
|
Provision for title
claim losses
|
|
74
|
|
74
|
|
—
|
|
—
|
|
Interest
expense
|
|
28
|
|
—
|
|
6
|
|
22
|
|
Total
expenses
|
|
2,703
|
|
1,956
|
|
664
|
|
83
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
503
|
|
$
335
|
|
$
238
|
|
$
(70)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
136
|
|
93
|
|
51
|
|
(8)
|
|
Earnings from
equity investments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
5
|
|
5
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
362
|
|
$
237
|
|
$
187
|
|
$
(62)
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
273
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
275
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Three Months
Ended
|
|
|
|
|
|
September 30,
2022
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
362
|
|
$
237
|
|
$
187
|
|
$
(62)
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
503
|
|
$
335
|
|
$
238
|
|
$
(70)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
65
|
|
48
|
|
(25)
|
|
42
|
|
Market related
liability adjustments
|
|
(237)
|
|
—
|
|
(237)
|
|
—
|
|
Purchase price
amortization
|
|
26
|
|
17
|
|
5
|
|
4
|
|
Transaction
costs
|
|
7
|
|
—
|
|
4
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
364
|
|
$
400
|
|
$
(15)
|
|
$
(21)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(139)
|
|
$
65
|
|
$
(253)
|
|
$
49
|
|
Income taxes on
non-GAAP adjustments
|
|
27
|
|
(16)
|
|
54
|
|
(11)
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
|
Deferred tax
asset valuation allowance
|
|
23
|
|
12
|
|
—
|
|
11
|
|
Total non-GAAP
adjustments
|
|
$
(90)
|
|
$
61
|
|
$
(199)
|
|
$
48
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
272
|
|
$
298
|
|
$
(12)
|
|
$
(14)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
0.99
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Nine Months
Ended
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
Direct title
premiums
|
|
$
1,493
|
|
$
1,493
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
1,991
|
|
1,991
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
3,288
|
|
1,629
|
|
1,523
|
|
136
|
|
Total title and
escrow
|
|
6,772
|
|
5,113
|
|
1,523
|
|
136
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,915
|
|
252
|
|
1,622
|
|
41
|
|
Recognized gains and
losses, net
|
|
(367)
|
|
(74)
|
|
(257)
|
|
(36)
|
|
Total
revenue
|
|
8,320
|
|
5,291
|
|
2,888
|
|
141
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,166
|
|
1,908
|
|
167
|
|
91
|
|
Agent
commissions
|
|
1,534
|
|
1,534
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
1,134
|
|
939
|
|
107
|
|
88
|
|
Benefits & other
policy reserve changes
|
|
1,921
|
|
—
|
|
1,921
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(20)
|
|
—
|
|
(20)
|
|
—
|
|
Depreciation and
amortization
|
|
438
|
|
115
|
|
302
|
|
21
|
|
Provision for title
claim losses
|
|
157
|
|
157
|
|
—
|
|
—
|
|
Interest
expense
|
|
129
|
|
—
|
|
71
|
|
58
|
|
Total
expenses
|
|
7,459
|
|
4,653
|
|
2,548
|
|
258
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
861
|
|
$
638
|
|
$
340
|
|
$
(117)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
245
|
|
165
|
|
99
|
|
(19)
|
|
Earnings (loss)
from equity investments
|
|
16
|
|
16
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
46
|
|
11
|
|
36
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
586
|
|
$
478
|
|
$
205
|
|
$
(97)
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
2.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
270
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
271
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Nine Months
Ended
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
586
|
|
$
478
|
|
$
205
|
|
$
(97)
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
861
|
|
$
638
|
|
$
340
|
|
$
(117)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
210
|
|
74
|
|
100
|
|
36
|
|
Market related
liability adjustments
|
|
(95)
|
|
—
|
|
(95)
|
|
—
|
|
Purchase price
amortization
|
|
81
|
|
54
|
|
16
|
|
11
|
|
Transaction
costs
|
|
8
|
|
—
|
|
3
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,065
|
|
$
766
|
|
$
364
|
|
$
(65)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
204
|
|
$
128
|
|
$
24
|
|
$
52
|
|
Income taxes on
non-GAAP adjustments
|
|
(48)
|
|
(31)
|
|
(5)
|
|
(12)
|
|
Deferred tax
asset valuation allowance
|
|
19
|
|
11
|
|
—
|
|
8
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(3)
|
|
—
|
|
(3)
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
172
|
|
$
108
|
|
$
16
|
|
$
48
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
758
|
|
$
586
|
|
$
221
|
|
$
(49)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
2.80
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
|
|
|
|
F&G
|
|
|
|
Nine Months
Ended
|
|
Consolidated
|
|
Title
|
|
|
Corporate and
Other
|
|
September 30,
2022
|
|
|
|
|
|
Direct title
premiums
|
|
$
2,314
|
|
$
2,314
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
3,268
|
|
3,268
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
3,449
|
|
1,994
|
|
1,369
|
|
86
|
|
Total title and
escrow
|
|
9,031
|
|
7,576
|
|
1,369
|
|
86
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,352
|
|
124
|
|
1,216
|
|
12
|
|
Recognized gains and
losses, net
|
|
(1,375)
|
|
(472)
|
|
(863)
|
|
(40)
|
|
Total
revenue
|
|
9,008
|
|
7,228
|
|
1,722
|
|
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
|
|
396
|
|
—
|
|
396
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(187)
|
|
—
|
|
(187)
|
|
—
|
|
Depreciation and
amortization
|
|
361
|
|
105
|
|
238
|
|
18
|
|
Provision for title
claim losses
|
|
251
|
|
251
|
|
—
|
|
—
|
|
Interest
expense
|
|
89
|
|
—
|
|
23
|
|
66
|
|
Total
expenses
|
|
7,218
|
|
6,377
|
|
657
|
|
184
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,790
|
|
$
851
|
|
$
1,065
|
|
$
(126)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
494
|
|
261
|
|
254
|
|
(21)
|
|
Earnings from
equity investments
|
|
16
|
|
16
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
13
|
|
14
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,299
|
|
$
592
|
|
$
811
|
|
$
(104)
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
4.69
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
4.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
277
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
279
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Nine Months
Ended
|
|
|
|
|
|
September 30,
2022
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,299
|
|
$
592
|
|
$
811
|
|
$
(104)
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,790
|
|
$
851
|
|
$
1,065
|
|
$
(126)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
493
|
|
472
|
|
(19)
|
|
40
|
|
Market related
liability adjustments
|
|
(751)
|
|
—
|
|
(751)
|
|
—
|
|
Purchase price
amortization
|
|
70
|
|
43
|
|
16
|
|
11
|
|
Transaction
costs
|
|
4
|
|
—
|
|
8
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,606
|
|
$
1,366
|
|
$
319
|
|
$
(79)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(184)
|
|
$
515
|
|
$
(746)
|
|
$
47
|
|
Income taxes on
non-GAAP adjustments
|
|
23
|
|
(124)
|
|
158
|
|
(11)
|
|
Deferred tax
asset valuation allowance
|
|
78
|
|
67
|
|
—
|
|
11
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
|
Total non-GAAP
adjustments
|
|
$
(84)
|
|
$
458
|
|
$
(588)
|
|
$
46
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
1,215
|
|
$
1,050
|
|
$
223
|
|
$
(58)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
4.35
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SUMMARY BALANCE
SHEET INFORMATION
(In
millions)
|
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash and investment
portfolio
|
|
|
$
53,639
|
|
|
$
47,656
|
|
Goodwill
|
|
|
4,830
|
|
|
4,635
|
|
Title plant
|
|
|
417
|
|
|
416
|
|
Total assets
|
|
|
74,002
|
|
|
65,143
|
|
Notes
payable
|
|
|
3,695
|
|
|
3,238
|
|
Reserve for title claim
losses
|
|
|
1,768
|
|
|
1,810
|
|
Secured trust
deposits
|
|
|
853
|
|
|
862
|
|
Accumulated other
comprehensive (loss) earnings
|
|
|
(3,067)
|
|
|
(2,870)
|
|
Non-controlling
interests
|
|
|
426
|
|
|
453
|
|
Total equity and
non-controlling interests
|
|
|
6,584
|
|
|
6,569
|
|
Total equity
attributable to common shareholders
|
|
|
6,158
|
|
|
6,116
|
Non-GAAP Measures and Other Information
Title Segment
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,
2023
|
September 30,
2022
|
|
|
September 30,
2023
|
September 30,
2022
|
|
Pre-tax
earnings
|
$
248
|
$
335
|
|
|
$
638
|
$
851
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
46
|
48
|
|
|
74
|
472
|
|
Purchase price
amortization
|
17
|
17
|
|
|
54
|
43
|
|
Total non-GAAP
adjustments
|
63
|
65
|
|
|
128
|
515
|
|
Adjusted pre-tax
earnings
|
$
311
|
$
400
|
|
|
$
766
|
$
1,366
|
|
Adjusted pre-tax
margin
|
16.2 %
|
17.1 %
|
|
|
14.3 %
|
17.7 %
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
QUARTERLY OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Q3
2023
|
|
Q2
2023
|
|
Q1
2023
|
|
Q4
2022
|
|
Q3
2022
|
|
Q2
2022
|
|
Q1
2022
|
|
Q4
2021
|
|
Quarterly Opened
Orders ('000's except % data)
|
|
Total opened
orders*
|
|
318
|
|
347
|
|
308
|
|
266
|
|
363
|
|
443
|
|
522
|
|
536
|
|
Total opened orders per
day*
|
|
5.0
|
|
5.4
|
|
5.0
|
|
4.3
|
|
5.7
|
|
6.9
|
|
8.6
|
|
8.5
|
|
Purchase % of opened
orders
|
|
80 %
|
|
79 %
|
|
78 %
|
|
76 %
|
|
76 %
|
|
75 %
|
|
62 %
|
|
53 %
|
|
Refinance % of opened
orders
|
|
20 %
|
|
21 %
|
|
22 %
|
|
24 %
|
|
24 %
|
|
25 %
|
|
38 %
|
|
47 %
|
|
Total closed
orders*
|
|
224
|
|
233
|
|
188
|
|
216
|
|
278
|
|
348
|
|
380
|
|
477
|
|
Total closed orders per
day*
|
|
3.6
|
|
3.6
|
|
3.0
|
|
3.5
|
|
4.3
|
|
5.4
|
|
6.2
|
|
7.6
|
|
Purchase % of closed
orders
|
|
80 %
|
|
81 %
|
|
78 %
|
|
76 %
|
|
76 %
|
|
71 %
|
|
55 %
|
|
51 %
|
|
Refinance % of closed
orders
|
|
20 %
|
|
19 %
|
|
22 %
|
|
24 %
|
|
24 %
|
|
29 %
|
|
45 %
|
|
49 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(millions, except orders in '000's)
|
|
Total commercial
revenue
|
|
$ 263
|
|
$ 263
|
|
$ 241
|
|
$ 344
|
|
$ 381
|
|
$ 436
|
|
$ 374
|
|
$ 546
|
|
Total commercial opened
orders
|
|
49.1
|
|
50.2
|
|
48.5
|
|
44.9
|
|
54.8
|
|
64.2
|
|
66.1
|
|
64.5
|
|
Total commercial closed
orders
|
|
25.6
|
|
27.7
|
|
24.7
|
|
30.5
|
|
35.2
|
|
39.7
|
|
37.4
|
|
46.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$ 128
|
|
$ 128
|
|
$ 118
|
|
$ 173
|
|
$ 191
|
|
$ 220
|
|
$ 196
|
|
$ 313
|
|
National commercial
opened orders
|
|
18.9
|
|
19.3
|
|
18.5
|
|
17.8
|
|
22.1
|
|
26.7
|
|
27.5
|
|
26.0
|
|
National commercial
closed orders
|
|
9.2
|
|
9.9
|
|
8.5
|
|
11.9
|
|
14.0
|
|
15.3
|
|
14.6
|
|
18.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per
File
|
|
Fee per file
|
|
$
3,618
|
|
$
3,598
|
|
$
3,446
|
|
$
3,649
|
|
$
3,621
|
|
$
3,557
|
|
$
2,891
|
|
$
3,023
|
|
Residential fee per
file
|
|
$
2,861
|
|
$
2,897
|
|
$
2,601
|
|
$
2,542
|
|
$
2,697
|
|
$
2,695
|
|
$
2,188
|
|
$
2,158
|
|
Total commercial fee
per file
|
|
$ 10,300
|
|
$
9,500
|
|
$
9,800
|
|
$
11,300
|
|
$ 10,800
|
|
$
11,000
|
|
$
10,000
|
|
$
11,800
|
|
National commercial fee
per file
|
|
$ 13,900
|
|
$
12,900
|
|
$
13,900
|
|
$
14,600
|
|
$ 13,600
|
|
$
14,400
|
|
$
13,400
|
|
$
17,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Staffing
|
|
Total field operations
employees
|
|
10,400
|
|
10,600
|
|
10,400
|
|
10,700
|
|
12,000
|
|
12,700
|
|
13,400
|
|
13,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual title claims
paid ($ millions)
|
|
$ 69
|
|
$
67
|
|
$
62
|
|
$
79
|
|
$ 65
|
|
$
55
|
|
$
54
|
|
$
62
|
|
Title Segment
(continued)
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
MONTHLY TITLE ORDER
STATISTICS
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
|
Month
|
|
/ (%
Purchase)
|
|
/ (%
Purchase)
|
|
July 2023
|
|
|
107,000
|
80 %
|
|
|
74,000
|
81 %
|
|
August 2023
|
|
|
114,000
|
79 %
|
|
|
80,000
|
80 %
|
|
September
2023
|
|
|
97,000
|
79 %
|
|
|
70,000
|
80 %
|
|
Third Quarter
2023
|
|
|
318,000
|
80 %
|
|
|
224,000
|
80 %
|
|
|
|
|
|
|
|
|
|
|
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 %
|
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
F&G Segment
The table below reconciles net earnings (loss) attributable to
common shareholders to adjusted net earnings attributable to common
shareholders. The F&G Segment is reported net of
noncontrolling minority interest.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(Dollars in
millions)
|
September 30,
2023
|
|
September 30,
2022
|
|
September 30,
2023
|
|
September 30,
2022
|
|
Net earnings
attributable to common shareholders
|
$
259
|
|
$
187
|
|
$
205
|
|
$
811
|
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
Recognized (gains)
losses, net
|
(4)
|
|
(25)
|
|
100
|
|
(19)
|
|
Market related
liability adjustments
|
(237)
|
|
(237)
|
|
(95)
|
|
(751)
|
|
Purchase price
amortization
|
5
|
|
5
|
|
16
|
|
16
|
|
Transaction
costs
|
1
|
|
4
|
|
3
|
|
8
|
|
Income taxes on
non-GAAP adjustments
|
49
|
|
54
|
|
(5)
|
|
158
|
|
Non-controlling
interest on non-GAAP adjustments
|
29
|
|
—
|
|
(3)
|
|
—
|
|
Adjusted net
earnings (loss) attributable to common
shareholders(1)
|
$
102
|
|
$
(12)
|
|
$
221
|
|
$
223
|
- Adjusted net earnings of $102
million for the third quarter of 2023 included
$97 million, or $0.36 per share, of investment income from
alternative investments. Alternative investments investment income
based on management's long-term expected return of approximately
10% was $121 million, or $0.45 per share.
- Adjusted net loss of $12
million for the third quarter of 2022 included
$11 million, or $0.04 per share, of investment loss from
alternative investments and $11
million, or $0.04 per share,
of other net expense items. Alternative investments investment
income based on management's long-term expected return of
approximately 10% was $106 million,
or $0.39 per share.
- Adjusted net earnings of $221
million for the nine months ended September 30, 2023 included $250 million, or $0.92 per share, of investment income from
alternative investments, $4 million,
or $0.02 per share, of bond prepay
income, partially offset by $31
million, or $0.12 per share,
tax valuation allowance expense. Alternative investments investment
income based on management's long-term expected return of
approximately 10% was $349 million,
or $1.29 per share.
- Adjusted net earnings of $223
million for the nine months ended September 30, 2022 included $161 million, or $0.58 per share, of investment income from
alternative investments, $66 million,
or $0.24 per share, gain from
actuarial assumption updates, $24
million, or $0.09 per share,
income of CLO redemption gains and other investment income,
partially offset by $38 million, or
$0.14 per share, tax valuation
allowance expense and $11 million, or
$0.04 per share, of other net expense
items. Alternative investments investment income based on
management's long-term expected return of approximately 10% was
$306 million, or $1.10 per share.
The table below provides a summary of sales highlights.
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
(In
millions)
|
|
September 30,
2023
|
|
September 30,
2022
|
|
|
September 30,
2023
|
|
September 30,
2022
|
|
Total annuity
sales
|
|
$
1,858
|
|
$
2,217
|
|
|
$
6,870
|
|
$
5,853
|
|
Indexed universal life
sales
|
|
38
|
|
36
|
|
|
117
|
|
92
|
|
Funding agreements
(FABN/FHLB)
|
|
415
|
|
—
|
|
|
871
|
|
1,443
|
|
Pension risk
transfer
|
|
470
|
|
620
|
|
|
1,212
|
|
1,147
|
|
Gross
sales(1)
|
|
$
2,781
|
|
$
2,873
|
|
|
$
9,070
|
|
$
8,535
|
|
Sales attributable to
flow reinsurance to third parties
|
|
(513)
|
|
(660)
|
|
|
(2,381)
|
|
(1,440)
|
|
Net
Sales(1)
|
|
$
2,268
|
|
$
2,213
|
|
|
$
6,689
|
|
$
7,095
|
|
|
Footnotes:
|
|
1. Non-GAAP financial measure. See the Non-GAAP Measures
section below for additional information.
|
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) attributable to
common shareholders to eliminate:
i. 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 and other derivatives, including interest rate swaps and
forwards;
ii. Market related liability adjustments: 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; the
impact of initial pension risk transfer deferred profit liability
losses, including amortization from previously deferred pension
risk transfer deferred profit liability losses; and the changes in
the fair value of market risk benefits by deferring current period
changes and amortizing that amount over the life of the market risk
benefit;
iii. 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;
iv. Transaction costs: the impacts related to
acquisition, integration and merger related items;
v. 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;
vi. 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;
vii. Income taxes: the income tax impact related
to the above mentioned adjustments is measured using an effective
tax rate, as appropriate by tax jurisdiction; and
viii. Non-controlling interest on non-GAAP
adjustments: the portion of the non-GAAP adjustments attributable
to the equity interest of F&G that FNF does not own
While these adjustments are an integral part of the overall
performance of FNF, 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 comprised of the following components and is reported net
of reinsurance qualifying for risk transfer in accordance with
GAAP:
(i) total invested assets at amortized cost, excluding
investments in unconsolidated affiliates and derivatives;
(ii) investments in unconsolidated affiliates at carrying
value;
(iii) related party loans and investments;
(iv) accrued investment income;
(v) the net payable/receivable for the purchase/sale of
investments; and
(vi) cash and cash equivalents excluding derivative collateral at
the end of the period.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
size of our investment portfolio that is retained.
AUM before Flow Reinsurance
AUM before Flow Reinsurance is comprised of components
consistent with AUM, but also includes flow reinsured assets.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
size of our investment portfolio including reinsured assets.
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 retained assets.
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-2023-financial-results-301980595.html
SOURCE Fidelity National Financial, Inc.
