FNF Group Reports Second Quarter 2017 Diluted EPS of $0.63 and Adjusted Diluted EPS of $0.75, Pre-Tax Title Margin of 15.3% and Adjusted Pre-Tax Title Margin of 16.2%

July 19, 2017 at 4:15 PM EDT

FNF Group Reports Second Quarter 2017 Diluted EPS of $0.63 and Adjusted Diluted EPS of $0.75, Pre-Tax Title Margin of 15.3% and Adjusted Pre-Tax Title Margin of 16.2% 175.8 KB

JACKSONVILLE, Fla., July 19, 2017 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results of FNF Group (NYSE:FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and six-month periods ended June 30, 2017.

Total revenue of approximately $2.3 billion in the second quarter versus $2.1 billion in the second quarter of 2016
Second quarter net earnings of $175 million and adjusted net earnings of $207 million versus net earnings of $187 million and adjusted net earnings of $207 million for the second quarter of 2016
Second quarter diluted EPS of $0.63 and adjusted diluted EPS of $0.75 versus diluted EPS of $0.67 and adjusted diluted EPS of $0.74 in the second quarter of 2016
Second quarter net cash flow provided by operations of $401 million versus net cash flow provided by operations of $277 million in the second quarter of 2016

Title

Approximately $1.9 billion in total revenue, a 5% increase over the approximately $1.8 billion in total revenue in the second quarter of 2016
Pre-tax earnings of $294 million and adjusted pre-tax earnings of $310 million versus pre-tax earnings of $281 million and adjusted pre-tax earnings of $300 million in the second quarter of 2016
Pre-tax title margin of 15.3% and adjusted pre-tax title margin of 16.2% versus pre-tax title margin of 15.4% and adjusted pre-tax title margin of 16.5% in the second quarter of 2016
Open orders per day of 8,188 for the second quarter versus 9,016 open orders per day for the second quarter of 2016
Closed orders per day of 5,781 for the second quarter versus 6,266 closed orders per day for the second quarter of 2016
Second quarter purchase orders opened and closed increased by 6% and 9%, respectively, versus the second quarter of 2016
Total commercial revenue of $261 million, a 7% increase over total commercial revenue in the second quarter of 2016, driven by a 7% increase in total commercial fee per file and flat closed orders; second quarter total commercial open orders increased 2% compared to the prior year; second quarter national commercial title revenue of $148 million, a 3% increase from the second quarter of 2016, driven by a 15% increase in closed orders and a 10% decline in the national commercial fee per file; second quarter national commercial open orders increased by 8%
Overall second quarter average fee per file of $2,428, a 15% increase versus the second quarter of 2016

Title Orders

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
April 2017		163,000	67%		109,000	66%
May 2017		181,000	67%		128,000	67%
June 2017		180,000	64%		133,000	69%

Second Quarter 2017		524,000	66%		370,000	67%

		Direct Orders Opened *		Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
April 2016		187,000	57%	127,000	56%
May 2016		189,000	58%	132,000	58%
June 2016		201,000	54%	142,000	59%

Second Quarter 2016		577,000	57%	401,000	58%

* Includes an immaterial number of non-purchase and non-refinance orders

	Open	Closed	Commercial
	Commercial	Commercial	Revenue	Commercial
	Orders	Orders	(In millions)	Fee Per File
Second Quarter 2017 - Total Commercial	50,800	33,600	$261		$7,800
Second Quarter 2016 - Total Commercial	49,900	33,600	$244		$7,300

Second Quarter 2017 - National Commercial	22,000	13,300	$148		$11,100
Second Quarter 2016 - National Commercial	20,300	11,600	$144		$12,400

BKFS

Revenue of $242 million, led by Servicing Technology revenue of approximately $184 million
Pre-tax earnings of $29 million, a $12 million, or 29% decrease compared to the second quarter of 2016
Adjusted EBITDA of $119 million, a $5 million, or 4%, increase compared to the second quarter of 2016 and an adjusted EBITDA margin of 47.9%, a 270 basis point increase from the second quarter of 2016

"The second quarter was another strong performance for our title insurance business," said Chairman William P. Foley, II. "We generated adjusted pre-tax title earnings of $310 million, a $10 million increase over a very strong 2016 second quarter and the largest amount of quarterly adjusted pre-tax title earnings since 2003. We also produced a 16.2% adjusted pre-tax title margin and our distributed title operations, which exclude ServiceLink, generated a 17.0% adjusted pre-tax title margin, equal to the second quarter of 2016. The residential purchase and commercial markets continued to drive our performance in the second quarter, as residential open and closed purchase orders increased 6% and 9%, respectively, in the quarter and total commercial revenue grew by 7% versus the second quarter of 2016. We look forward to continued strong, industry-leading performance from our title insurance business.

"Black Knight continues to perform to our expectations, generating revenue of $242 million and adjusted EBITDA of $119 million, for a 47.9% adjusted EBITDA margin. FNF's Black Knight ownership stake is currently worth approximately $3.5 billion, or approximately $12.65 per FNF share.

"Finally, we made significant progress on the Black Knight distribution during the second quarter, with several milestones achieved. We announced the receipt of the private letter ruling on May 10, signed the formal agreements with Black Knight on June 8, filed the preliminary Registration Statements on Forms S-4 and S-1 with the SEC on June 13 and June 21, respectively, received comments from the SEC on July 10 and filed Amendment No. 1 to Forms S-1 and S-4 with the SEC on July 18. Once the SEC declares the Registration Statements on Forms S-1 and S-4 effective, we can mail the proxy statement/prospectus to shareholders and then have the shareholder vote, at the earliest, twenty business days after the mailing. We still expect a late third quarter closing for the distribution."

Conference Call
We will host a call with investors and analysts to discuss second quarter 2017 FNF Group results on Thursday, July 20, 2017, beginning at 11:30 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 www.fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com. The telephone replay will be available from 1:30 p.m. Eastern time on July 20, 2017, through July 27, 2017, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 426236.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV). FNF is a leading provider of title insurance, technology 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. FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC. FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc. and Del Frisco's Restaurant Group, Inc. More information about FNF and FNFV can be found at www.fnf.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, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted pre-tax earnings from continuing operations, adjusted pre-tax earnings from continuing operations as a percentage of adjusted revenue (Adjusted pre-tax margin from continuing operations), adjusted net earnings and adjusted EPS.

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. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related 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: our ability to successfully achieve the conditions to and consummate the plans to distribute shares of Black Knight Financial Services and redeem and exchange the FNFV tracking stock with the result being an independent, publicly-traded FNFV common stock; changes in general economic, business and political 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, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries.

This press release should be read in conjunction with the press release filed for the results of FNFV on this same date as well as the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-Q, 10-K and other filings with the Securities and Exchange Commission.

FNF-E

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*Three Months Ended*
*June 30, 2017*
Direct title premiums	$	575		$	575		$	—		$	—
Agency title premiums	726			726			—			—
Escrow, title related and other fees (1)	966			575			259			132
Total title and escrow	2,267			1,876			259			132

Interest and investment income	33			33			—			—
Realized gains and losses, net	(12)			8			(17)			(3)
Total revenue	2,288			1,917			242			129

Personnel costs	723			602			97			24
Agent commissions	558			558			—			—
Other operating expenses	529			359			52			118
Depreciation and amortization	94			39			50			5
Claim loss expense	65			65			—			—
Interest expense	26			—			14			12
Total expenses	1,995			1,623			213			159

Pre-tax earnings (loss) from continuing operations	$	293		$	294		$	29		$	(30)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	12			(8)			17			3
Deferred revenue add back and management fee	3			1			2			—
Purchase price amortization	50			23			23			4
Spin-off costs	9			—			7			2
Total non-GAAP adjustments before taxes	$	74		$	16		$	49		$	9

Adjusted pre-tax earnings (loss) from continuing operations	$	367		$	310		$	78		$	(21)
Adjusted pre-tax margin from continuing operations	15.9		%	16.2		%	29.9		%	—

Purchase price amortization	(50)			(23)			(23)			(4)
Depreciation and amortization	94			39			50			5
Interest expense	26			—			14			12

Adjusted EBITDA	$	437		$	326		$	119		$	(8)
Adjusted EBITDA margin	19.0		%	17.1		%	47.9		%	—

1. BKFS also reported adjusted revenue of $263 million, which includes $1 million of deferred revenue

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*Three Months Ended*
*June 30, 2017*
Pre-tax earnings (loss) from continuing operations	$	293	$	294	$	29	$	(30)
Income tax expense	113		89		11		13
Earnings from equity investments	2		2		—		—
Non-controlling interests	7		—		7		—

Net earnings (loss) attributable to FNF Group common shareholders	$	175	$	207	$	11	$	(43)

EPS attributable to FNF Group common shareholders - basic	$	0.65	$	0.77	$	0.04	$	(0.16)
EPS attributable to FNF Group common shareholders - diluted	$	0.63	$	0.75	$	0.04	$	(0.16)

FNF Group weighted average shares - basic	271
FNF Group weighted average shares - diluted	277

Net earnings (loss) attributable to FNF Group common shareholders	$	175	$	207	$	11	$	(43)

Total non-GAAP, pre-tax adjustments	$	74	$	16	$	49	$	9
Income taxes on non-GAAP adjustments	(28)		(5)		(19)		(4)
Noncontrolling interest on non-GAAP adjustments	(18)		(4)		(14)		—
Nondeductible income taxes on litigation and regulatory settlements	4		—		4		—
Total non-GAAP adjustments	$	32	$	7	$	20	$	5

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	207	$	214	$	31	$	(38)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.75	$	0.77	$	0.11	$	(0.13)

Direct orders opened (000's)	524		524
Direct orders closed (000's)	370		370
Fee per file	$	2,428	$	2,428
Actual title claims paid	$	57	$	57

Cash flows provided by operations	$	401

FNF GROUP
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*Three Months Ended*
*June 30, 2016*
Direct title premiums	$	540		$	540		$	—		$	—
Agency title premiums	691			691			—			—
Escrow, title related and other fees (1)	867			552			256			59
Total title and escrow	2,098			1,783			256			59

Interest and investment income	36			36			—			—
Realized gains and losses, net	—			3			—			(3)
Total revenue	2,134			1,822			256			56

Personnel costs	667			557			95			15
Agent commissions	526			526			—			—
Other operating expenses	465			354			55			56
Depreciation and amortization	87			36			49			2
Claim loss expense	68			68			—			—
Interest expense	32			—			16			16
Total expenses	1,845			1,541			215			89

Pre-tax earnings (loss) from continuing operations	$	289		$	281		$	41		$	(33)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	—			(3)			—			3
Deferred revenue add back and management fee	3			1			2			—
Purchase price amortization	42			21			20			1
M&A costs	1			—			1			—
Other legal accruals	5			—			5			—
Total non-GAAP adjustments before taxes	$	51		$	19		$	28		$	4

Adjusted pre-tax earnings (loss) from continuing operations	$	340		$	300		$	69		$	(29)
Adjusted pre-tax margin from continuing operations	15.9		%	16.5		%	26.7		%	—

Purchase price amortization	(42)			(21)			(20)			(1)
Depreciation and amortization	87			36			49			2
Interest expense	32			—			16			16

Adjusted EBITDA	$	417		$	315		$	114		$	(12)
Adjusted EBITDA margin	19.5		%	17.3		%	45.2		%	—

1. BKFS also reported adjusted revenue of $258 million, which includes $2 million of deferred revenue

FNF GROUP SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Three Months Ended*	Total FNF						FNF Group Corporate and
*June 30, 2016*	Group		Title		BKFS		Other
Pre-tax earnings (loss) from continuing operations	$	289	$	281	$	41	$	(33)

Income tax expense (benefit)	98		106		14		(22)
Earnings from equity investments	3		3		—		—
Non-controlling interests	7		(4)		12		(1)

Net earnings (loss) attributable to FNF Group common shareholders	$	187	$	182	$	15	$	(10)

EPS attributable to FNF Group common shareholders - basic	$	0.69	$	0.67	$	0.06	$	(0.04)
EPS attributable to FNF Group common shareholders - diluted	$	0.67	$	0.65	$	0.06	$	(0.04)

FNF Group weighted average shares - basic	272
FNF Group weighted average shares - diluted	281

Net earnings (loss) attributable to FNF Group common shareholders	$	187	$	182	$	15	$	(10)

Total non-GAAP, pre-tax adjustments	$	51	$	19	$	28	$	4
Income taxes on non-GAAP adjustments	(20)		(7)		(11)		(2)
Noncontrolling interest on non-GAAP adjustments	(11)		(3)		(8)		—
Total non-GAAP adjustments	$	20	$	9	$	9	$	2

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	207	$	191	$	24	$	(8)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.74	$	0.68	$	0.09	$	(0.03)

Direct orders opened (000's)	577		577
Direct orders closed (000's)	401		401
Fee per file	$	2,116	$	2,116
Actual title claims paid	$	73	$	73

Cash flows provided by operations	$	277

FNF GROUP YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*Six Months Ended*
*June 30, 2017*
Direct title premiums	$	1,040		$	1,040		$	—		$	—
Agency title premiums	1,309			1,309			—			—
Escrow, title related and other fees (1)	1,785			1,071			517			197
Total title and escrow	4,134			3,420			517			197

Interest and investment income	61			61			—			—
Realized gains and losses, net	(18)			6			(19)			(5)
Total revenue	4,177			3,487			498			192

Personnel costs	1,392			1,150			198			44
Agent commissions	1,004			1,004			—			—
Other operating expenses	964			694			97			173
Depreciation and amortization	190			77			103			10
Claim loss expense	117			117			—			—
Interest expense	57			—			30			27
Total expenses	3,724			3,042			428			254

Pre-tax earnings (loss) from continuing operations	$	453		$	445		$	70		$	(62)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	18			(6)			19			5
Deferred revenue add back and management fee	4			1			3			—
Purchase price amortization	98			45			45			8
Spin-off costs	10			—			8			2
Total non-GAAP adjustments before taxes	$	130		$	40		$	75		$	15

Adjusted pre-tax earnings (loss) from continuing operations	$	583		$	485		$	145		$	(47)
Adjusted pre-tax margin from continuing operations	13.9		%	13.9		%	27.9		%	—

Purchase price amortization	(98)			(45)			(45)			(8)
Depreciation and amortization	190			77			103			10
Interest expense	57			—			30			27

Adjusted EBITDA	$	732		$	517		$	233		$	(18)
Adjusted EBITDA margin	17.4		%	14.9		%	47.0		%	—

1. BKFS also reported adjusted revenue of $523 million, which includes $3 million of deferred revenue

FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*Six Months Ended*
*June 30, 2017*
Pre-tax earnings (loss) from continuing operations	$	453	$	445	$	70	$	(62)

Income tax expense	193		167		24		2
Earnings from equity investments	4		4		—		—
Non-controlling interests	18		(1)		19		—

Net earnings (loss) attributable to FNF Group common shareholders	$	246	$	283	$	27	$	(64)

EPS attributable to FNF Group common shareholders - basic	$	0.91	$	1.05	$	0.10	$	(0.24)
EPS attributable to FNF Group common shareholders - diluted	$	0.88	$	1.02	$	0.10	$	(0.24)

FNF Group weighted average shares - basic	271
FNF Group weighted average shares - diluted	278

Net earnings (loss) attributable to FNF Group common shareholders	$	246	$	283	$	27	$	(64)

Total non-GAAP, pre-tax adjustments	$	130	$	40	$	75	$	15
Income taxes on non-GAAP adjustments	(48)		(13)		(29)		(6)
Noncontrolling interest on non-GAAP adjustments	(28)		(7)		(21)		—
Nondeductible income taxes on litigation and regulatory settlements	25		21		4		—
Total non-GAAP adjustments	$	79	$	41	$	29	$	9

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	325	$	324	$	56	$	(55)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	1.17	$	1.17	$	0.20	$	(0.20)

Direct orders opened (000's)	996		996
Direct orders closed (000's)	704		704
Fee per file	$	2,295	$	2,295
Actual title claims paid	$	108	$	108

Cash flows provided by operations:	$	389

FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*Six Months Ended*
*June 30, 2016*
Direct title premiums	$	962		$	962		$	—		$	—
Agency title premiums	1,221			1,221			—			—
Escrow, title related and other fees (1)	1,608			1,018			498			92
Total title and escrow	3,791			3,201			498			92

Interest and investment income	65			65			—			—
Realized gains and losses, net	(3)			3			—			(6)
Total revenue	3,853			3,269			498			86

Personnel costs	1,281			1,063			191			27
Agent commissions	928			928			—			—
Other operating expenses	870			685			96			89
Depreciation and amortization	172			71			97			4
Claim loss expense	120			120			—			—
Interest expense	63			—			32			31
Total expenses	3,434			2,867			416			151

Pre-tax earnings (loss) from continuing operations	$	419		$	402		$	82		$	(65)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	3			(3)			—			6
Deferred revenue add back and management fee	5			1			4			—
Purchase price amortization	83			42			40			1
M&A costs	1			—			1			—
Other legal accruals	5			—			5			—
Total non-GAAP adjustments before taxes	$	97		$	40		$	50		$	7

Adjusted pre-tax earnings (loss) from continuing operations	$	516		$	442		$	132		$	(58)
Adjusted pre-tax margin from continuing operations	13.4		%	13.5		%	26.3		%	—

Purchase price amortization	(83)			(42)			(40)			(1)
Depreciation and amortization	172			71			97			4
Interest expense	63			—			32			31

Adjusted EBITDA	$	668		$	471		$	221		$	(24)
Adjusted EBITDA margin	17.3		%	14.4		%	45.2		%	—

1. BKFS also reported adjusted revenue of $502 million, which includes $4 million of deferred revenue

FNF GROUP
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)

	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*Six Months Ended*
*June 30, 2016*
Pre-tax earnings (loss) from continuing operations	$	419	$	402	$	82	$	(65)

Income tax expense (benefit)	148		151		28		(31)
Earnings from equity investments	6		6		—		—
Non-controlling interests	17		(6)		24		(1)

Net earnings (loss) attributable to FNF Group common shareholders	$	260	$	263	$	30	$	(33)

EPS attributable to FNF Group common shareholders - basic	$	0.95	$	0.96	$	0.11	$	(0.12)
EPS attributable to FNF Group common shareholders - diluted	$	0.93	$	0.94	$	0.11	$	(0.12)

FNF Group weighted average shares - basic	273
FNF Group weighted average shares - diluted	281

Net earnings (loss) attributable to FNF Group common shareholders	$	260	$	263	$	30	$	(33)

Total non-GAAP, pre-tax adjustments	$	97	$	40	$	50	$	7
Income taxes on non-GAAP adjustments	(35)		(13)		(19)		(3)
Noncontrolling interest on non-GAAP adjustments	(21)		(7)		(14)		—
Total non-GAAP adjustments	$	41	$	20	$	17	$	4

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	301	$	283	$	47	$	(29)
Adjusted EPS attributable to FNF Group common shareholders - diluted	$	1.07	$	1.01	$	0.17	$	(0.11)

Direct orders opened (000's)	1,094		1,094
Direct orders closed (000's)	723		723
Fee per file	$	2,079	$	2,079
Actual title claims paid	$	113	$	113

Cash flows provided by operations:	$	349

FNF GROUP
QUARTERLY OPERATING STATISTICS
(Unaudited)

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015
Quarterly Open Orders ('000's except % data)
Total open orders*	524			472			474			616			577			517			441			514
Total open orders per day*	8.2			7.6			7.6			9.6			9.0			8.3			7.0			8.0
Purchase % of open orders	66		%	64		%	53		%	50		%	57		%	55		%	55		%	58		%
Refinance % of open orders	34		%	36		%	47		%	50		%	43		%	45		%	45		%	42		%
Total closed orders*	370			334			419			433			401			322			341			378
Total closed orders per day*	5.8			5.4			6.8			6.8			6.3			5.2			5.4			5.9
Purchase % of closed orders	67		%	58		%	51		%	54		%	58		%	55		%	58		%	60		%
Refinance % of closed orders	33		%	42		%	49		%	46		%	42		%	45		%	42		%	40		%

Commercial (millions, except orders in '000's)
Total commercial revenue	$	261		$	224		$	285		$	233		$	244		$	211		$	303		$	258
Total commercial open orders	50.8			49.4			45.9			50.4			49.9			48.5			46.3			50.3
Total commercial closed orders	33.6			30.0			34.7			31.9			33.6			30.7			36.3			33.0

National commercial revenue	$	148		$	127		$	167		$	130		$	144		$	121		$	183		$	146
National commercial open orders	22.0			21.1			17.9			20.4			20.3			19.3			18.1			21.0
National commercial closed orders	13.3			11.2			12.8			11.7			11.6			10.6			13.4			12.2

Total Fee Per File
Fee per file	$	2,428		$	2,148		$	2,091		$	2,015		$	2,116		$	2,032		$	2,272		$	2,133
Residential and local commercial fee per file	$	2,104		$	1,829		$	1,746		$	1,762		$	1,809		$	1,713		$	1,806		$	1,805
Residential fee per file	$	1,895		$	1,623		$	1,538		$	1,594		$	1,645		$	1,522		$	1,548		$	1,589
Total commercial fee per file	$	7,800		$	7,500		$	8,200		$	7,300		$	7,300		$	6,900		$	8,300		$	7,800
National commercial fee per file	$	11,100		$	11,300		$	13,000		$	11,100		$	12,400		$	11,400		$	13,600		$	12,000

Total Staffing
Total field operations employees	11,300			11,000			11,100			11,400			10,900			10,900			10,700			11,000

FNTG Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total open orders*	457			407			395			518			484			429			360			422
Total open orders per day*	7.2			6.6			6.4			8.1			7.5			6.9			5.7			6.6
Purchase % of open orders	72		%	69		%	59		%	55		%	63		%	61		%	62		%	65		%
Refinance % of open orders	28		%	31		%	41		%	45		%	37		%	39		%	38		%	35		%
Total closed orders*	324			277			352			369			338			265			285			314
Total closed orders per day*	5.1			4.5			5.7			5.8			5.3			4.3			4.5			4.9
Purchase % of closed orders	72		%	63		%	55		%	58		%	63		%	60		%	63		%	66		%
Refinance % of closed orders	28		%	37		%	45		%	42		%	37		%	40		%	37		%	34		%
Fee per file	$	2,618		$	2,395		$	2,313		$	2,205		$	2,337		$	2,261		$	2,521		$	2,364
Total title field operations employees	10,300			9,900			10,000			10,200			9,600			9,700			9,500			9,700

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Revenue (millions)	$	191		$	192		$	198		$	205		$	203		$	195		$	198		$	220
Total open orders*	67			65			79			98			93			87			81			92
Total open orders per day*	1.0			1.0			1.2			1.5			1.5			1.4			1.3			1.4
Purchase % of open orders	25		%	25		%	21		%	17		%	22		%	24		%	22		%	23		%
Refinance % of open orders	75		%	75		%	79		%	83		%	78		%	76		%	78		%	77		%
Total closed orders*	46			57			67			64			63			57			56			64
Total closed orders per day*	0.7			0.9			1.1			1.0			1.0			0.9			0.9			1.0
Purchase % of closed orders	28		%	30		%	24		%	27		%	27		%	28		%	31		%	26		%
Refinance % of closed orders	72		%	70		%	76		%	73		%	73		%	72		%	69		%	74		%
Fee per file	$	1,047		$	950		$	932		$	916		$	940		$	972		$	1,003		$	987
Total ServiceLink operations employees	1,000			1,100			1,100			1,200			1,300			1,200			1,200			1,300
* Includes an immaterial number of non-purchase and non-refinance orders

FNF GROUP

SUMMARY BALANCE SHEET INFORMATION

(In millions)

FNF Group

June 30, 2017

FNF Group

December 31, 2016

(Unaudited)

Cash and investment portfolio

4,705

4,965

Goodwill

4,905

4,859

Title plant

395

Total assets

12,848

13,063

Notes payable

2,320

2,513

Reserve for title claim losses

1,492

1,487

Secured trust deposits

892

860

Redeemable non-controlling interests

344

Non-redeemable non-controlling interests

770

786

Total equity and redeemable non-controlling interests

6,133

6,210

Total equity attributable to common shareholders

5,019

5,080

FNF Group

June 30, 2017

FNFV

June 30, 2017

Consolidated

June 30, 2017

Consolidated

December 31, 2016

(Unaudited)

(Unaudited)

Cash and investment portfolio

4,705

850

5,555

5,607

Goodwill

4,905

102

5,007

5,065

Title plant

395

—

395

Total assets

12,848

1,354

14,202

14,463

Notes payable

2,320

118

2,438

2,746

Reserve for title claim losses

1,492

—

1,492

1,487

Secured trust deposits

892

—

892

860

Redeemable non-controlling interests

344

—

344

Non-redeemable non-controlling interests

770

108

878

902

Total equity and redeemable non-controlling interests

6,133

1,130

7,263

7,242

Total equity attributable to common shareholders

5,019

1,022

6,041

5,996

Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2017						June 30, 2017
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	575	$	575	$	—	$	1,040	$	1,040	$	—
Agency title premiums	726		726		—		1,309		1,309		—
Total title premiums	1,301		1,301		—		2,349		2,349		—
Escrow, title-related and other fees	1,008		966		42		1,876		1,785		91
Total title and escrow and other	2,309		2,267		42		4,225		4,134		91

Restaurant revenue	288		—		288		561		—		561
Interest and investment income	34		33		1		63		61		2
Realized gains and losses, net	256		(12)		268		255		(18)		273
Total revenue	2,887		2,288		599		5,104		4,177		927

Personnel costs	788		723		65		1,503		1,392		111
Other operating expenses	558		529		29		1,018		964		54
Cost of restaurant revenue	249		—		249		485		—		485
Agent commissions	558		558		—		1,004		1,004		—
Depreciation and amortization	110		94		16		222		190		32
Title claim loss expense	65		65		—		117		117		—
Interest expense	29		26		3		64		57		7
Total expenses	2,357		1,995		362		4,413		3,724		689

Earnings from continuing operations before taxes	530		293		237		691		453		238
Income tax expense	226		113		113		304		193		111
Earnings from continuing operations before equity investments	304		180		124		387		260		127
(Loss) earnings from equity investments	(2)		2		(4)		(4)		4		(8)
Net earnings from continuing operations	302		182		120		383		264		119
Non-controlling interests	6		7		(1)		15		18		(3)
Net earnings attributable to common shareholders	$	296	$	175	$	121	$	368	$	246	$	122

Cash flows provided by (used in) operations	287		401		(114)		291		389		(98)

Fidelity National Financial, Inc.
CONSOLIDATED SUMMARY OF EARNINGS
(In millions)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2016						June 30, 2016
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	540	$	540	$	—	$	962	$	962	$	—
Agency title premiums	691		691		—		1,221		1,221		—
Total title premiums	1,231		1,231		—		2,183		2,183		—
Escrow, title-related and other fees	907		867		40		1,686		1,608		78
Total title and escrow and other	2,138		2,098		40		3,869		3,791		78

Restaurant revenue	292		—		292		585		—		585
Interest and investment income	37		36		1		67		65		2
Realized gains and losses, net	15		—		15		9		(3)		12
Total revenue	2,482		2,134		348		4,530		3,853		677

Personnel costs	707		667		40		1,359		1,281		78
Other operating expenses	493		465		28		925		870		55
Cost of restaurant revenue	245		—		245		490		—		490
Agent commissions	526		526		—		928		928		—
Depreciation and amortization	102		87		15		202		172		30
Title claim loss expense	68		68		—		120		120		—
Interest expense	33		32		1		67		63		4
Total expenses	2,174		1,845		329		4,091		3,434		657

Earnings from continuing operations before taxes	308		289		19		439		419		20
Income tax expense	101		98		3		150		148		2
Earnings from continuing operations before equity investments	207		191		16		289		271		18
(Loss) earnings from equity investments	(1)		3		(4)		1		6		(5)
Net earnings from continuing operations	206		194		12		290		277		13
Non-controlling interests	9		7		2		19		17		2
Net earnings attributable to common shareholders	$	197	$	187	$	10	$	271	$	260	$	11

Cash flows provided by operations	282		277		5		374		349		25

View original content:http://www.prnewswire.com/news-releases/fnf-group-reports-second-quarter-2017-diluted-eps-of-063-and-adjusted-diluted-eps-of-075-pre-tax-title-margin-of-153-and-adjusted-pre-tax-title-margin-of-162-300490840.html

SOURCE Fidelity National Financial, Inc.

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FNF Group Reports Second Quarter 2017 Diluted EPS of $0.63 and Adjusted Diluted EPS of $0.75, Pre-Tax Title Margin of 15.3% and Adjusted Pre-Tax Title Margin of 16.2%

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