FNF Reports Fourth Quarter and Full Year 2022 Financial Results
On
Net earnings attributable to common shareholders for the fourth quarter of
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the fourth quarter of
Company Highlights
- Solid Title Revenue despite challenging environment, and as compared to record prior year: For the Title segment, total revenue of
$1.9 billion and$9.1 billion for the quarter and full year, respectively. Total revenue, excluding recognized gains and losses, of$1.8 billion for the fourth quarter, a 42% decrease from fourth quarter 2021, and$9.5 billion for the full year, a 20% decrease from full year 2021 - Industry leading adjusted pre-tax Title margin of 16.7% for full year 2022, reflecting the third best since 2003
- Strong sales for F&G continue: Total gross sales of
$2.7 billion for the fourth quarter, a 23% increase over fourth quarter 2021, and a record$11.3 billion for the full year, a nearly 18% increase over full year 2021 - F&G partial spinoff completed: F&G began trading on the
New York Stock Exchange under the ticker symbol 'FG' onDecember 1, 2022 , upon completion of the distribution of approximately 15% of its common stock to FNF shareholders; FNF retains control of F&G through an approximate 85% equity ownership stake - Ample deployable capital supports shareholder value: FNF has repurchased 1 million shares for
$38 million , at an average price of$37.87 per share, in the fourth quarter and paid common dividends at$0.45 per share for$124 million . For the full year, FNF has repurchased 13.4 million shares for a total$549 million , at an average price of$41.05 per share, and paid common dividends at$1.77 per share for a total$489 million reflecting 10% growth over full year 2021. FNF ended the fourth quarter with$939 million in cash and short-term liquid investments at the holding company. As announced last week, the board of directors has declared a quarterly cash dividend of$0.45 per share, payableMarch 31, 2023 , to shareholders of record as ofMarch 17, 2023 .
Summary Financial Results
(In millions, except per share data) |
Three Months Ended |
Twelve Months Ended |
||||
|
|
2022 |
2021 |
|||
Total revenue |
$ 2,553 |
$ 4,797 |
$ 11,556 |
$ 15,643 |
||
F&G total gross sales1 |
$ 2,719 |
$ 2,195 |
$ 11,254 |
$ 9,592 |
||
F&G assets under management1 |
$ 43,568 |
$ 36,494 |
$ 43,568 |
$ 36,494 |
||
Total assets |
$ 65,589 |
$ 60,690 |
$ 65,589 |
$ 60,690 |
||
Adjusted pre-tax title margin |
12.3 % |
22.4 % |
16.7 % |
21.7 % |
||
Net earnings attributable to common shareholders2 |
$ 68 |
$ 533 |
$ 1,136 |
$ 2,422 |
||
Net earnings per share attributable to common shareholders2 |
$ 0.25 |
$ 1.87 |
$ 4.10 |
$ 8.44 |
||
Adjusted net earnings1,2 |
$ 287 |
$ 668 |
$ 1,485 |
$ 2,458 |
||
Adjusted net earnings per share1,2 |
$ 1.06 |
$ 2.34 |
$ 5.36 |
$ 8.56 |
||
Weighted average common diluted shares |
271 |
285 |
277 |
287 |
||
Total common shares outstanding |
272 |
284 |
272 |
284 |
1 |
See definition of non-GAAP measures below |
||||||
2 |
FNF's consolidated earnings, per share metrics and related non-GAAP measures reflect 100% ownership of F&G Segment for |
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.
Fourth Quarter 2022 Highlights
- Total revenue of
$1.9 billion , compared with$3.1 billion in total revenue in the fourth quarter of 2021 - Total revenue, excluding recognized gains and losses, of
$1.8 billion , a 42% decrease compared with the fourth quarter of 2021- Direct title premiums of
$544 million , a 47% decrease from fourth quarter of 2021 - Agency title premiums of
$708 million , a 48% decrease from fourth quarter of 2021 - Commercial revenue of
$344 million , a 37% decrease from fourth quarter of 2021
- Direct title premiums of
- Purchase orders opened decreased 31% on a daily basis and purchase orders closed decreased 36% on a daily basis from the fourth quarter of 2021
- Refinance orders opened decreased 76% on a daily basis and refinance orders closed decreased 79% on a daily basis from fourth quarter of 2021
- Commercial orders opened decreased 30% and commercial orders closed decreased 34% from fourth quarter of 2021
- Total fee per file of
$3,649 for the fourth quarter, a 21% increase over fourth quarter of 2021
Fourth Quarter 2022 Financial Results
- Pre-tax title margin of 12.7% and industry leading adjusted pre-tax title margin of 12.3% for the fourth quarter of 2022, compared to 18.5% and 22.4%, respectively, in the fourth quarter of 2021
- Pre-tax earnings from continuing operations in Title for the fourth quarter of
$239 million , compared with$567 million for the fourth quarter of 2021 - Adjusted pre-tax earnings in Title for the fourth quarter of
$227 million compared with$717 million for the fourth quarter of 2021. 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, partially offset by higher average fee per file
Full year 2022 Financial Results
- Total revenue, excluding recognized gains and losses, of
$9.5 billion for the full year, a 20% decrease from$11.9 billion for the full year 2021 - Industry leading pre-tax title margin of 12.0% and adjusted pre-tax title margin of 16.7% for the full year, compared to 18.6% and 21.7% for the full year 2021, respectively; reflects the Company's noteworthy execution to manage the business based on market conditions in the current economic cycle
- Pre-tax earnings from continuing operations in Title for the full year of
$1.1 billion compared to$2.1 billion for the full year 2021 - Adjusted pre-tax earnings in Title for the full year of
$1.6 billion compared to$2.6 billion for the full year 2021. The decrease from the prior year was primarily a result of the considerable decline in refinance volume representing trough level activity and moderating residential purchase volume; due to higher mortgage rates, partially offset by higher average fee per file and healthy volume of commercial orders closed for the full year
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.
Fourth Quarter 2022
- Total gross sales of
$2.7 billion for the fourth quarter, an increase of 23% over the fourth quarter 2021; 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
$2.5 billion for the fourth quarter, a 79% increase over fourth quarter of 2021; reflects execution of diversified growth strategy - Institutional sales of
$0.2 billion of pension risk transfer transactions, compared to$0.8 billion of pension risk transfer transactions in the fourth quarter 2021. There were no funding agreement issuances in the current quarter, compared with$35 million for the fourth quarter 2021 - Net retained sales of
$1.9 billion for the fourth quarter, a decrease of 7% from the fourth quarter 2021, reflecting increase from 50% to 75% of multiyear guaranteed annuity sales to Aspida Re effectiveSeptember 1, 2022 - Average assets under management (AAUM) of
$42.6 billion for the fourth quarter, an increase of 19% from$35.7 billion in the fourth quarter 2021 driven by net new business flows. Ending assets under management (AUM) were$43.6 billion as ofDecember 31, 2022 - Net loss attributable to common shareholders for F&G Segment of
$100 million for the fourth quarter due to unfavorable mark-to-market and related economic assumption review updates, compared to net earnings attributable to common shareholders for F&G Segment of$121 million for the fourth quarter of 2021 - Adjusted net earnings for F&G Segment of
$131 million for the fourth quarter, compared to$142 million for the fourth quarter of 2021; F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation.
Full Year 2022
- Record total gross sales of
$11.3 billion for the full year, an increase of nearly 18% over the full year 2021, reflecting execution of the Company's diversified growth strategy with a disciplined approach to pricing - Record Retail sales of
$8.5 billion for the full year, an increase of 37% over the full year 2021, driven by ongoing growth in independent agent distribution and continued expansion in bank and broker dealer channels - Institutional sales of
$2.8 billion for the full year, including funding agreement issuances of$1.4 billion and pension risk transfer transactions of$1.4 billion , compared to funding agreement issuances of$2.3 billion and pension risk transfer transactions of$1.2 billion in full year 2021 - Net retained sales of
$9.0 billion for the full year, an increase of 3% over the full year 2021, reflecting third party flow reinsurance - Average assets under management (AAUM) of
$40.1 billion for the full year, an increase of 25% over$31.9 billion in the prior year driven by net new business flows. Ending assets under management (AUM) of$43.6 billion atDecember 31, 2022 - Net earnings for F&G Segment for the full year of
$481 million , compared to$865 million for the full year 2021 - Adjusted net earnings for F&G Segment for the full year of
$338 million , compared to$551 million for the full year 2021; F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation.
Conference Call
We will host a call with investors and analysts to discuss FNF's fourth quarter and full year 2022 results on
About
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
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
FNF-E
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Three Months Ended |
||||||||
|
||||||||
Direct title premiums |
$ 544 |
$ 544 |
$ — |
$ — |
||||
Agency title premiums |
708 |
708 |
— |
— |
||||
Escrow, title related and other fees |
880 |
508 |
331 |
41 |
||||
Total title and escrow |
2,132 |
1,760 |
331 |
41 |
||||
Interest and investment income |
539 |
89 |
439 |
11 |
||||
Recognized gains and losses, net |
(118) |
29 |
(147) |
— |
||||
Total revenue |
2,553 |
1,878 |
623 |
52 |
||||
Personnel costs |
734 |
665 |
47 |
22 |
||||
Agent commissions |
543 |
543 |
— |
— |
||||
Other operating expenses |
392 |
337 |
25 |
30 |
||||
Benefits & other policy reserve changes |
743 |
— |
743 |
— |
||||
Depreciation and amortization |
22 |
37 |
(22) |
7 |
||||
Provision for title claim losses |
57 |
57 |
— |
— |
||||
Interest expense |
26 |
— |
6 |
20 |
||||
Total expenses |
2,517 |
1,639 |
799 |
79 |
||||
Pre-tax earnings (loss) from continuing operations |
$ 36 |
$ 239 |
$ (176) |
$ (27) |
||||
Income tax expense (benefit) |
(36) |
37 |
(76) |
3 |
||||
Earnings (loss) from equity investments |
(1) |
(1) |
— |
— |
||||
Earnings (loss) from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Non-controlling interests |
3 |
3 |
— |
— |
||||
Net earnings (loss) attributable to common shareholders |
$ 68 |
$ 198 |
$ (100) |
$ (30) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 0.25 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
— |
|||||||
EPS attributable to common shareholders - basic |
$ 0.25 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 0.25 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
— |
|||||||
EPS attributable to common shareholders - diluted |
$ 0.25 |
|||||||
Weighted average shares - basic |
270 |
|||||||
Weighted average shares - diluted |
271 |
2 FNF's consolidated earnings, per share metrics and related non-GAAP measures reflect 100% ownership of F&G Segment for |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Three Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 68 |
$ 198 |
$ (100) |
$ (30) |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ 68 |
$ 198 |
$ (100) |
$ (30) |
||||
Pre-tax earnings (loss) from continuing operations |
$ 36 |
$ 239 |
$ (176) |
$ (27) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
107 |
(29) |
136 |
— |
||||
Indexed product related derivatives |
212 |
— |
212 |
— |
||||
Purchase price amortization |
25 |
17 |
5 |
3 |
||||
Transaction costs |
8 |
— |
2 |
6 |
||||
Amortization of actuarial intangibles |
(81) |
— |
(81) |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 307 |
$ 227 |
$ 98 |
$ (18) |
||||
Total non-GAAP, pre-tax adjustments |
$ 271 |
$ (12) |
$ 274 |
$ 9 |
||||
Income taxes on non-GAAP adjustments |
(35) |
3 |
(36) |
(2) |
||||
Non-controlling interest on non-GAAP adjustments |
(7) |
— |
(7) |
— |
||||
Deferred tax asset valuation allowance |
(10) |
(9) |
— |
(1) |
||||
Total non-GAAP adjustments |
$ 219 |
$ (18) |
$ 231 |
$ 6 |
||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ 287 |
$ 180 |
$ 131 |
$ (24) |
||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
$ 1.06 |
2 FNF's consolidated earnings, per share metrics and related non-GAAP measures reflect 100% ownership of F&G Segment for |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Three Months Ended |
||||||||
|
||||||||
Direct title premiums |
$ 1,025 |
$ 1,025 |
$ — |
$ — |
||||
Agency title premiums |
1,350 |
1,350 |
— |
— |
||||
Escrow, title related and other fees |
1,672 |
795 |
838 |
39 |
||||
Total title and escrow |
4,047 |
3,170 |
838 |
39 |
||||
Interest and investment income |
537 |
26 |
511 |
— |
||||
Recognized gains and losses, net |
213 |
(135) |
345 |
3 |
||||
Total revenue |
4,797 |
3,061 |
1,694 |
42 |
||||
Personnel costs |
932 |
874 |
36 |
22 |
||||
Agent commissions |
1,034 |
1,034 |
— |
— |
||||
Other operating expenses |
497 |
444 |
29 |
24 |
||||
Benefits & other policy reserve changes |
1,404 |
— |
1,404 |
— |
||||
Depreciation and amortization |
105 |
35 |
65 |
5 |
||||
Provision for title claim losses |
107 |
107 |
— |
— |
||||
Interest expense |
31 |
— |
8 |
23 |
||||
Total expenses |
4,110 |
2,494 |
1,542 |
74 |
||||
Pre-tax earnings (loss) |
$ 687 |
$ 567 |
$ 152 |
$ (32) |
||||
Income tax expense (benefit) |
158 |
122 |
31 |
5 |
||||
Earnings from equity investments |
10 |
10 |
— |
— |
||||
Earnings (loss) from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Non-controlling interests |
6 |
6 |
— |
— |
||||
Net earnings (loss) attributable to common shareholders |
$ 533 |
$ 449 |
$ 121 |
$ (37) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 1.89 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
$ — |
|||||||
EPS attributable to common shareholders - basic |
$ 1.89 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 1.87 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
$ — |
|||||||
EPS attributable to common shareholders - diluted |
$ 1.87 |
|||||||
Weighted average shares - basic |
282 |
|||||||
Weighted average shares - diluted |
285 |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Three Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 533 |
$ 449 |
$ 121 |
$ (37) |
||||
Earnings (loss) from discontinued operations, net of tax |
$ — |
$ — |
$ — |
$ — |
||||
Net earnings (loss) from continuing operations, attributable to common shareholders |
$ 533 |
$ 449 |
$ 121 |
$ (37) |
||||
Pre-tax earnings (loss) from continuing operations |
687 |
567 |
152 |
(32) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
118 |
135 |
(14) |
(3) |
||||
Indexed product related derivatives |
21 |
— |
21 |
— |
||||
Purchase price amortization |
25 |
15 |
6 |
4 |
||||
Amortization of actuarial intangibles |
13 |
— |
13 |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 864 |
$ 717 |
$ 178 |
$ (31) |
||||
Total non-GAAP, pre-tax adjustments |
$ 177 |
$ 150 |
$ 26 |
$ 1 |
||||
Income taxes on non-GAAP adjustments |
(42) |
(36) |
(5) |
(1) |
||||
Total non-GAAP adjustments |
$ 135 |
$ 114 |
$ 21 |
$ — |
||||
Adjusted net earnings attributable to common shareholders |
$ 668 |
$ 563 |
$ 142 |
$ (37) |
||||
Adjusted EPS attributable to common shareholders - diluted |
$ 2.34 |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Twelve Months Ended |
||||||||
|
||||||||
Direct title premiums |
$ 2,858 |
$ 2,858 |
$ — |
$ — |
||||
Agency title premiums |
3,976 |
3,976 |
— |
— |
||||
Escrow, title related and other fees |
4,324 |
2,502 |
1,695 |
127 |
||||
Total title and escrow |
11,158 |
9,336 |
1,695 |
127 |
||||
Interest and investment income |
1,891 |
213 |
1,655 |
23 |
||||
Recognized gains and losses, net |
(1,493) |
(443) |
(1,010) |
(40) |
||||
Total revenue |
11,556 |
9,106 |
2,340 |
110 |
||||
Personnel costs |
3,192 |
2,987 |
157 |
48 |
||||
Agent commissions |
3,064 |
3,064 |
— |
— |
||||
Other operating expenses |
1,721 |
1,515 |
102 |
104 |
||||
Benefits & other policy reserve changes |
1,125 |
— |
1,125 |
— |
||||
Depreciation and amortization |
496 |
142 |
329 |
25 |
||||
Provision for title claim losses |
308 |
308 |
— |
— |
||||
Interest expense |
115 |
— |
29 |
86 |
||||
Total expenses |
10,021 |
8,016 |
1,742 |
263 |
||||
Pre-tax earnings (loss) from continuing operations |
$ 1,535 |
$ 1,090 |
$ 598 |
$ (153) |
||||
Income tax expense (benefit) |
398 |
298 |
117 |
(17) |
||||
Earnings (loss) from equity investments |
15 |
15 |
— |
— |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Non-controlling interests |
16 |
17 |
— |
(1) |
||||
Net earnings (loss) attributable to common shareholders |
$ 1,136 |
$ 790 |
$ 481 |
$ (135) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 4.13 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
— |
|||||||
EPS attributable to common shareholders - basic |
$ 4.13 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 4.10 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
— |
|||||||
EPS attributable to common shareholders - diluted |
$ 4.10 |
|||||||
Weighted average shares - basic |
275 |
|||||||
Weighted average shares - diluted |
277 |
2 FNF's consolidated earnings, per share metrics and related non-GAAP measures reflect 100% ownership of F&G Segment for |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Twelve Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 1,136 |
$ 790 |
$ 481 |
$ (135) |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ 1,136 |
$ 790 |
$ 481 |
$ (135) |
||||
Pre-tax earnings (loss) from continuing operations |
$ 1,535 |
$ 1,090 |
$ 598 |
$ (153) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
600 |
443 |
117 |
40 |
||||
Indexed product related derivatives |
(354) |
— |
(354) |
— |
||||
Purchase price amortization |
95 |
60 |
21 |
14 |
||||
Transaction costs |
12 |
— |
10 |
2 |
||||
Amortization of actuarial intangibles |
6 |
— |
6 |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 1,894 |
$ 1,593 |
$ 398 |
$ (97) |
||||
Total non-GAAP, pre-tax adjustments |
$ 359 |
$ 503 |
$ (200) |
$ 56 |
||||
Income taxes on non-GAAP adjustments |
(70) |
(121) |
64 |
(13) |
||||
Deferred tax asset valuation allowance |
68 |
58 |
— |
10 |
||||
Non-controlling interest on non-GAAP adjustments |
(8) |
— |
(7) |
(1) |
||||
Total non-GAAP adjustments |
$ 349 |
$ 440 |
$ (143) |
$ 52 |
||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ 1,485 |
$ 1,230 |
$ 338 |
$ (83) |
||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
$ 5.36 |
2 FNF's consolidated earnings, per share metrics and related non-GAAP measures reflect 100% ownership of F&G Segment for |
|
||||||||
Twelve Months Ended |
Consolidated |
Title |
F&G |
Corporate and |
||||
|
||||||||
Direct title premiums |
$ 3,571 |
$ 3,571 |
$ — |
$ — |
||||
Agency title premiums |
4,982 |
4,982 |
— |
— |
||||
Escrow, title related and other fees |
4,795 |
3,228 |
1,395 |
172 |
||||
Total title and escrow |
13,348 |
11,781 |
1,395 |
172 |
||||
Interest and investment income |
1,961 |
109 |
1,852 |
— |
||||
Recognized gains and losses, net |
334 |
(393) |
715 |
12 |
||||
Total revenue |
15,643 |
11,497 |
3,962 |
184 |
||||
Personnel costs |
3,528 |
3,292 |
129 |
107 |
||||
Agent commissions |
3,821 |
3,821 |
— |
— |
||||
Other operating expenses |
1,929 |
1,725 |
105 |
99 |
||||
Benefits & other policy reserve changes |
2,138 |
— |
2,138 |
— |
||||
Depreciation and amortization |
645 |
138 |
484 |
23 |
||||
Provision for title claim losses |
385 |
385 |
— |
— |
||||
Interest expense |
114 |
— |
29 |
85 |
||||
Total expenses |
12,560 |
9,361 |
2,885 |
314 |
||||
Pre-tax earnings (loss) from continuing operations |
$ 3,083 |
$ 2,136 |
$ 1,077 |
$ (130) |
||||
Income tax expense (benefit) |
713 |
511 |
220 |
(18) |
||||
Earnings from equity investments |
64 |
58 |
— |
6 |
||||
Earnings (loss) from discontinued operations, net of tax |
8 |
— |
8 |
— |
||||
Non-controlling interests |
20 |
19 |
— |
1 |
||||
Net earnings (loss) attributable to common shareholders |
$ 2,422 |
$ 1,664 |
$ 865 |
$ (107) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 8.47 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
$ 0.03 |
|||||||
EPS attributable to common shareholders - basic |
$ 8.50 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 8.41 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
$ 0.03 |
|||||||
EPS attributable to common shareholders - diluted |
$ 8.44 |
|||||||
Weighted average shares - basic |
285 |
|||||||
Weighted average shares - diluted |
287 |
|
||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||
Twelve Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 2,422 |
$ 1,664 |
$ 865 |
$ (107) |
||||
Earnings from discontinued operations, net of tax |
8 |
— |
8 |
— |
||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ 2,414 |
$ 1,664 |
$ 857 |
$ (107) |
||||
Pre-tax earnings (loss) from continuing operations |
3,083 |
2,136 |
1,077 |
(130) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
272 |
393 |
(109) |
(12) |
||||
Indexed product related derivatives |
(146) |
— |
(146) |
— |
||||
Purchase price amortization |
99 |
57 |
26 |
16 |
||||
Transaction costs |
13 |
— |
5 |
8 |
||||
Amortization of actuarial intangibles |
123 |
— |
123 |
— |
||||
Other non-recurring items |
(284) |
— |
(284) |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 3,160 |
$ 2,586 |
$ 692 |
$ (118) |
||||
Total non-GAAP, pre-tax adjustments |
$ 77 |
$ 450 |
$ (385) |
$ 12 |
||||
Income taxes on non-GAAP adjustments |
(32) |
(108) |
79 |
(3) |
||||
Non-controlling interest on non-GAAP adjustments |
(1) |
— |
— |
(1) |
||||
Total non-GAAP adjustments |
$ 44 |
$ 342 |
$ (306) |
$ 8 |
||||
Adjusted net earnings (loss) attributable to common shareholders |
$ 2,458 |
$ 2,006 |
$ 551 |
$ (99) |
||||
Adjusted EPS attributable to common shareholders - diluted |
$ 8.56 |
|
||||||
|
|
|||||
(Unaudited) |
(Unaudited) |
|||||
Cash and investment portfolio |
$ 47,656 |
$ 47,135 |
||||
|
4,642 |
4,539 |
||||
Title plant |
416 |
400 |
||||
Total assets |
65,589 |
60,690 |
||||
Notes payable |
3,238 |
3,096 |
||||
Reserve for title claim losses |
1,810 |
1,883 |
||||
Secured trust deposits |
862 |
934 |
||||
Accumulated other comprehensive (loss) earnings |
(2,862) |
779 |
||||
Non-controlling interests |
360 |
43 |
||||
Total equity and non-controlling interests |
5,979 |
9,457 |
||||
Total equity attributable to common shareholders |
5,619 |
9,414 |
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 |
Twelve Months Ended |
|||||
(Dollars in millions) |
|
|
|
|
||
Pre-tax earnings |
$ 239 |
$ 567 |
$ 1,090 |
$ 2,136 |
||
Non-GAAP adjustments before taxes |
||||||
Recognized (gains) and losses, net |
(29) |
135 |
443 |
393 |
||
Purchase price amortization |
17 |
15 |
60 |
57 |
||
Total non-GAAP adjustments |
(12) |
150 |
503 |
450 |
||
Adjusted pre-tax earnings |
$ 227 |
$ 717 |
$ 1,593 |
$ 2,586 |
||
Adjusted pre-tax margin |
12.3 % |
22.4 % |
16.7 % |
21.7 % |
|
||||||||||||||||
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
|||||||||
Quarterly Opened Orders ('000's except % data) |
||||||||||||||||
Total opened orders* |
266 |
363 |
443 |
522 |
536 |
688 |
695 |
770 |
||||||||
Total opened orders per day* |
4.3 |
5.7 |
6.9 |
8.6 |
8.5 |
10.8 |
10.9 |
12.6 |
||||||||
Purchase % of opened orders |
76 % |
76 % |
75 % |
62 % |
53 % |
50 % |
53 % |
42 % |
||||||||
Refinance % of opened orders |
24 % |
24 % |
25 % |
38 % |
47 % |
50 % |
47 % |
58 % |
||||||||
Total closed orders* |
216 |
278 |
348 |
380 |
477 |
527 |
568 |
597 |
||||||||
Total closed orders per day* |
3.5 |
4.3 |
5.4 |
6.2 |
7.6 |
8.2 |
8.9 |
9.8 |
||||||||
Purchase % of closed orders |
76 % |
76 % |
71 % |
55 % |
51 % |
50 % |
47 % |
34 % |
||||||||
Refinance % of closed orders |
24 % |
24 % |
29 % |
45 % |
49 % |
50 % |
53 % |
66 % |
||||||||
Commercial (millions, except orders in '000's) |
||||||||||||||||
Total commercial revenue |
$ 344 |
$ 381 |
$ 436 |
$ 374 |
$ 546 |
$ 366 |
$ 347 |
$ 257 |
||||||||
Total commercial opened orders |
44.9 |
54.8 |
64.2 |
66.1 |
64.5 |
66.8 |
69.4 |
62.2 |
||||||||
Total commercial closed orders |
30.5 |
35.2 |
39.7 |
37.4 |
46.1 |
40.1 |
42.3 |
34.8 |
||||||||
National commercial revenue |
$ 173 |
$ 191 |
$ 220 |
$ 196 |
$ 313 |
$ 183 |
$ 176 |
$ 127 |
||||||||
National commercial opened orders |
17.8 |
22.1 |
26.7 |
27.5 |
26.0 |
27.7 |
27.4 |
23.4 |
||||||||
National commercial closed orders |
11.9 |
14.0 |
15.3 |
14.6 |
18.1 |
14.8 |
14.9 |
11.2 |
||||||||
Total |
||||||||||||||||
Fee per file |
$ 3,649 |
$ 3,621 |
$ 3,557 |
$ 2,891 |
$ 3,023 |
$ 2,581 |
$ 2,444 |
$ 1,944 |
||||||||
Residential fee per file |
$ 2,542 |
$ 2,697 |
$ 2,695 |
$ 2,188 |
$ 2,158 |
$ 2,097 |
$ 2,030 |
$ 1,644 |
||||||||
Total commercial fee per file |
|
$ 10,800 |
$ 11,000 |
$ 10,000 |
|
$ 9,100 |
$ 8,200 |
$ 7,400 |
||||||||
National commercial fee per file |
|
$ 13,600 |
$ 14,400 |
$ 13,400 |
|
$ 12,400 |
$ 11,800 |
$ 11,300 |
||||||||