FNF Reports Fourth Quarter and Full Year 2023 Financial Results

February 21, 2024 at 4:17 PM EST

JACKSONVILLE, Fla., Feb. 21, 2024 /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 fourth quarter and twelve months (full year) ended December 31, 2023.

Net loss attributable to common shareholders for the fourth quarter of $69 million, or $0.25 per diluted share (per share), compared to $5 million, or $0.02 per share, for the fourth quarter of 2022.  Full year net earnings attributable to common shareholders of $517 million, or $1.91 per share, compared to $1.3 billion, or $4.67 per share, for the year ended December 31, 2022.  Net earnings attributable to common shareholders include mark-to-market effects and non-recurring 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 fourth quarter of $204 million, or $0.75 per share, compared to $274 million, or $1.01 per share, for the fourth quarter of 2022. Full year adjusted net earnings of $962 million, or $3.55 per share, compared to $1.5 billion, or $5.38 per share, for the year ended December 31, 2022.

  • The Title Segment contributed $174 million and $760 million for the fourth quarter and full year 2023, respectively, compared to $180 million and $1.2 billion for the fourth quarter and full year 2022, respectively
  • The F&G Segment contributed $64 million and $285 million for the fourth quarter and full year 2023, respectively, compared to $119 million and $342 million for the fourth quarter and full year 2022, respectively
  • The Corporate Segment had adjusted net losses of $34 million and $83 million for the fourth quarter and full year 2023, respectively, compared to adjusted net losses of $25 million and $83 million for the fourth quarter and full year of 2022
  • The full year results reflect Title's considerable decline in volumes as compared to the prior year given higher mortgage rates. F&G's adjusted net earnings include alternative investment returns below our long-term expectations of $0.11 and $0.48 for the fourth quarter and full year 2023, respectively, as compared to $0.25 and $0.77 for the fourth quarter and full year 2022, respectively. In addition, F&G's adjusted net earnings include significant expense items of $0.06 and $0.16 for the fourth quarter and full year 2023, respectively, as compared to significant income items of $0.20 and $0.35 for the fourth quarter and full year 2022, respectively. Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation

Company Highlights

  • Solid Title Revenue Despite Current Environment: For the Title Segment, total revenue of $1.7 billion and $7.0 billion for the quarter and full year, respectively, a 7% decrease from $1.9 billion in the fourth quarter of 2022, and a 23% decrease from $9.1 billion in full year 2022. Total revenue, excluding recognized gains and losses, of $1.7 billion for the fourth quarter, a 9% decrease from $1.8 billion in the fourth quarter of 2022, and $7.0 billion for the full year, a 26% decrease from full year 2022
  • Record F&G Segment gross sales and record assets under management: For the F&G Segment, gross sales of $4.1 billion for the fourth quarter, a 52% increase from the fourth quarter of 2022. Gross sales of $13.2 billion for the full year, a 17% increase from full year 2022. F&G achieved record assets under management (AUM) of $49.5 billion as of December 31, 2023
  • Ample deployable capital in a challenging market: FNF paid common dividends of $0.48 per share for $133 million and ended the fourth quarter with $886 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 $0.48 per share, payable March 29, 2024, to shareholders of record as of March 15, 2024

William P. Foley, II, Chairman, commented, "Our fourth quarter and full year results clearly demonstrate both the strength of our business combined with our durable competitive advantage in the market that continues to grow.  This can be seen in our Title business which delivered an industry leading adjusted pre-tax title margin of 13.7% for the full year in what has been the most challenging mortgage market in more than three decades.  Additionally, F&G achieved record assets under management of $49.5 billion, rising 14% as compared to year end 2022, and significantly outpacing our expectations.  F&G now comprises 30% of FNF's annual adjusted net earnings, which provides an important counter cyclical earnings stream with strong growth tailwinds supported by F&G's recent ratings upgrades from both Moody's and AM Best."

Mr. Foley continued, "In light of F&G's success, we made the decision to invest $250 million given their many opportunities to grow and expand their business.  This capital will allow F&G to accelerate their retained asset growth.  We also deployed $300 million across more than ten acquisitions as we opportunistically expand our Title business through the downturn.  Looking forward, we will continue to pursue a balanced capital allocation strategy focused on growing our business through attractive acquisitions while maintaining a steady return of capital to our shareholders."

Summary Financial Results

(In millions, except per share data)

Three Months Ended

Twelve Months Ended

 

December 31,
2023

 

December 31,
2022

2023

 

2022

Total revenue

$       3,432

 

$       2,557

$  11,752

 

$  11,565

F&G total gross sales1

$       4,083

 

$       2,719

$  13,153

 

$  11,254

F&G assets under management1

$     49,453

 

$     43,568

$  49,453

 

$  43,568

Total assets

$     80,614

 

$     65,143

$  80,614

 

$  65,143

Adjusted pre-tax title margin

11.8 %

 

12.3 %

13.7 %

 

16.7 %

Net earnings attributable to common shareholders

$           (69)

 

$             (5)

$       517

 

$    1,294

Net earnings per share attributable to common shareholders

$        (0.25)

 

$        (0.02)

$      1.91

 

$      4.67

Adjusted net earnings1

$          204

 

$          274

$       962

 

$    1,489

Adjusted net earnings per share1

$         0.75

 

$         1.01

$      3.55

 

$      5.38

Weighted average common diluted shares

272

 

271

271

 

277

Total common shares outstanding

273

 

272

273

 

272

                     

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, "Over the past year we have demonstrated our capability to closely manage our expenses as mortgage volumes have continued to decline as a result of the persistent rise in mortgage rates.  A clear benefit of our financial strength, scale, and profitability is our ability to strategically build and expand our Title business by investing in technology, recruiting talent and making acquisitions, which we have continued to do while maintaining our industry leading margins."

Mr. Nolan added, "Looking ahead, we are well positioned for the current market and poised to benefit from the eventual turn in the housing market.  Importantly, we remain optimistic on the longer-term fundamentals of the housing market given the favorable demographic trends that continue to build in the U.S."

Fourth Quarter 2023 Highlights

  • Total revenue of $1.7 billion, compared with $1.9 billion in the fourth quarter of 2022
  • Total revenue, excluding recognized gains and losses, of $1.7 billion, a 9% decrease from fourth quarter of 2022
    • Direct title premiums of $489 million, a 10% decrease from fourth quarter of 2022
    • Agency title premiums of $619 million, a 13% decrease from fourth quarter of 2022
    • Commercial revenue of $294 million, a 15% decrease from fourth quarter of 2022
  • Purchase orders opened increased 1% on a daily basis and purchase orders closed decreased 7% on a daily basis from the fourth quarter of 2022
  • Refinance orders opened decreased 11% on a daily basis and refinance orders closed decreased 23% on a daily basis from fourth quarter of 2022
  • Commercial orders opened decreased 3% and commercial orders closed decreased 14% from fourth quarter of 2022
  • Total fee per file of $3,806 for the fourth quarter, a 4% increase over the fourth quarter of 2022

Fourth Quarter 2023 Financial Results

  • Pre-tax title margin of 14.0% and industry leading adjusted pre-tax title margin of 11.8% for the fourth quarter of 2023, compared to 12.7% and 12.3%, respectively, in the fourth quarter of 2022. The Company's cyber security incident negatively impacted adjusted pre-tax title margin in the fourth quarter of 2023 by approximately 0.5%; excluding this one-time item, adjusted pre-tax title margin for the fourth quarter of 2023 was in line with the prior year quarter
  • Pre-tax earnings from continuing operations in Title for the fourth quarter of $245 million, compared with $239 million for the fourth quarter of 2022
  • Adjusted pre-tax earnings in Title for the fourth quarter of $198 million compared with $227 million for the fourth 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

Full year 2023 Financial Results

  • Total revenue, excluding recognized gains and losses, of $7.0 billion for the full year, a 26% decrease from $9.5 billion for the full year 2022
  • Pre-tax title margin of 12.5% and adjusted pre-tax title margin of 13.7% for the full year, compared to 12.0% and 16.7% for the full year 2022, respectively; reflects the Company's noteworthy execution to manage the business despite market conditions in the current economic cycle
  • Pre-tax earnings from continuing operations in Title for the full year of $883 million compared to $1.1 billion for the full year 2022
  • Adjusted pre-tax earnings in Title for the full year of $964 million compared to $1.6 billion for the full year 2022. The decrease from the prior year was primarily a result of historical low volumes 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.

Chris Blunt, President and Chief Executive Officer, commented, "I could not be more proud of our accomplishments over the last year highlighted by record gross sales of more than $13 billion and record AUM of $49.5 billion, the expansion of our flow reinsurance partners which provides diversification and return upside, the strong performance of our investment portfolio combined with an improved yield, and the successful execution of our owned distribution strategy, under which we have now closed on approximately $500 million of acquisitions."

Mr. Blunt continued, "Looking at our fourth quarter results in more detail, they were impacted by the interest rate volatility that the annuities industry experienced as rates fell dramatically through the end of the year.  We are able to actively manage our new business and inforce to maintain pricing targets over time in varying rate environments, however, there can be short-term timing lags between precipitous rate movements and dynamic pricing actions as we saw in the fourth quarter.  Nonetheless, the economics and long-term outlook for our business remains unchanged.  I remain optimistic, as we outlined in our recent Investor Day, that we can deliver double digit sales growth in 2024 supported by the launch of our RILA product earlier this month.  Additionally, the drivers to continued margin expansion remain firmly in place as we effectively manage our operating expenses, benefit from enhanced investment margin opportunities and grow the earnings power of F&G.  Lastly, we are well positioned to continue to execute on our owned distribution strategy, which will generate a higher value earnings stream over time.  Our business remains very well positioned for the future as we enter 2024."    

Fourth Quarter 2023

  • Record gross sales: Gross sales of $4.1 billion for the fourth quarter, an increase of 52% from $2.7 billion in the fourth quarter of 2022, driven by record retail channel sales and strong institutional market sales
  • Record profitable Retail channel sales of $3.0 billion for the fourth quarter, a 20% increase from $2.5 billion in the fourth quarter of 2022, driven by robust multiyear guaranteed annuity sales in the higher rate environment
  • Strong Institutional market sales of $1.1 billion, compared to $0.2 billion of pension risk transfer in the fourth quarter of 2022, driven by higher pension risk transfer and FHLB funding agreement sales
  • Net sales of $2.5 billion for the fourth quarter, compared to $1.9 billion in the fourth quarter of 2022
  • Record assets under management (AUM) of $49.5 billion as of December 31, 2023, an increase of 14% from $43.6 billion as of December 31, 2022, driven by net new business flows, stable inforce retention and net debt proceeds over the past twelve months. AUM before flow reinsurance was $56.3 billion as of December 31, 2023
  • Net loss attributable to common shareholders for F&G Segment of $251 million for the fourth quarter due to unfavorable mark-to-market movement, compared to a net loss of $172 million for the fourth quarter of 2022 which included unfavorable mark-to-market movement
  • Adjusted net earnings for F&G Segment of $64 million for the fourth quarter, compared to $119 million for the fourth quarter of 2022. F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation. As compared to the prior year, the adjusted net earnings decrease reflects modest product margin expansion, due to the inherent timing lag between the precipitous decline in rates and our pricing actions in the fourth quarter of 2023, and accretive flow reinsurance fees, which were more than offset by higher interest expense due to planned capital market activity. The fourth quarter of 2023 includes short term investment income from alternative investments and $16 million of significant expense items, whereas the fourth quarter of 2022 included short term investment income from alternative investments and $55 million of significant income items. Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation.

Full Year 2023

  • Record gross sales: Gross sales of $13.2 billion for the full year, an increase of 17% from $11.3 billion for the full year 2022, driven by record retail channel sales and robust institutional market sales
  • Record profitable Retail channel sales of $10.0 billion for the full year, an 18% increase from $8.5 billion for the full year 2022, driven by growth across our agent, bank and broker dealer channels
  • Robust Institutional market sales of $3.2 billion, comprised of $2.0 billion pension risk transfer and $1.2 billion funding agreements, compared to $2.8 billion for the full year 2022, comprised of $1.4 billion pension risk transfer and $1.4 billion funding agreements
  • Record net sales of $9.2 billion for the full year, compared to $9.0 billion for the full year 2022
  • Record assets under management (AUM) of $49.5 billion as of December 31, 2023, an increase of 14% from $43.6 billion as of December 31, 2022, driven by net new business flows, stable inforce retention and net debt proceeds over the past twelve months. AUM before flow reinsurance was $56.3 billion as of December 31, 2023
  • Net loss attributable to common shareholders for F&G Segment for the full year of $46 million due to unfavorable mark-to-market movement, compared to net earnings of $639 million for the full year 2022 which included favorable mark-to-market movement
  • Adjusted net earnings for F&G Segment for the full year of $285 million, compared to $342 million for the full year 2022. F&G's adjusted net earnings reflect 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 full year 2023 includes short term investment income from alternative investments and $43 million of significant expense items, whereas the full year 2022 included short term investment income from alternative investments and $96 million of significant income items. 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 fourth quarter and full year 2023 results on Thursday, February 22, 2024, 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 February 22, 2024, through February 29, 2024, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13743446.

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

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

December 31, 2023

       

Direct title premiums

 

$            489

 

$            489

 

$             —

 

$                  —

Agency title premiums

 

619

 

619

 

 

Escrow, title related and other fees

 

1,429

 

488

 

890

 

51

Total title and escrow

 

2,537

 

1,596

 

890

 

51

                 

Interest and investment income

 

692

 

86

 

589

 

17

Recognized gains and losses, net

 

203

 

65

 

133

 

5

Total revenue

 

3,432

 

1,747

 

1,612

 

73

                 

Personnel costs

 

742

 

636

 

65

 

41

Agent commissions

 

474

 

474

 

 

Other operating expenses

 

387

 

303

 

39

 

45

Benefits & other policy reserve changes

 

1,632

 

 

1,632

 

Market risk benefit (gains) losses

 

115

 

 

115

 

Depreciation and amortization

 

155

 

39

 

110

 

6

Provision for title claim losses

 

50

 

50

 

 

Interest expense

 

45

 

 

26

 

19

Total expenses

 

3,600

 

1,502

 

1,987

 

111

                 

Pre-tax earnings (loss) from continuing operations

 

$          (168)

 

$            245

 

$         (375)

 

$                (38)

                 

  Income tax expense (benefit)

 

(53)

 

16

 

(76)

 

7

  Earnings (loss) from equity investments

 

1

 

1

 

 

  Non-controlling interests

 

(45)

 

2

 

(48)

 

1

                 

Net earnings (loss) attributable to common shareholders

 

$            (69)

 

$            228

 

$         (251)

 

$                (46)

                 

EPS attributable to common shareholders - basic

 

$         (0.25)

           
                 

EPS attributable to common shareholders - diluted

 

$         (0.25)

           
                 

Weighted average shares - basic

 

271

           

Weighted average shares - diluted

 

272

           

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

December 31, 2023

       

Net earnings (loss) attributable to common shareholders

 

$                (69)

 

$                228

 

$         (251)

 

$                (46)

                 

Pre-tax earnings (loss) from continuing operations

 

$              (168)

 

$                245

 

$         (375)

 

$                (38)

                 

 Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

44

 

(65)

 

114

 

(5)

  Market related liability adjustments

 

353

 

 

353

 

  Purchase price amortization

 

27

 

18

 

6

 

3

  Pension Retirement Charge

 

8

 

 

 

8

  Cybersecurity incident

 

10

 

 

 

10

  Transaction costs

 

1

 

 

 

1

                 

Adjusted pre-tax earnings (loss)

 

$                275

 

$                198

 

$             98

 

$                (21)

                 

Total non-GAAP, pre-tax adjustments

 

$                443

 

$                (47)

 

$           473

 

$                  17

  Income taxes on non-GAAP adjustments

 

(91)

 

12

 

(99)

 

(4)

  Non-controlling interest on non-GAAP adjustments

 

(60)

 

 

(59)

 

(1)

  Deferred tax asset valuation allowance

 

(19)

 

(19)

 

 

Total non-GAAP adjustments

 

$                273

 

$                (54)

 

$           315

 

$                  12

                 

Adjusted net earnings (loss) attributable to common shareholders

 

$                204

 

$                174

 

$             64

 

$                (34)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               0.75

           

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

December 31, 2022

       

Direct title premiums

 

$            544

 

$            544

 

$             —

 

$                  —

Agency title premiums

 

708

 

708

 

 

Escrow, title related and other fees

 

884

 

508

 

335

 

41

Total title and escrow

 

2,136

 

1,760

 

335

 

41

                 

Interest and investment income

 

539

 

89

 

439

 

11

Recognized gains and losses, net

 

(118)

 

29

 

(147)

 

Total revenue

 

2,557

 

1,878

 

627

 

52

                 

Personnel costs

 

734

 

665

 

47

 

22

Agent commissions

 

543

 

543

 

 

Other operating expenses

 

392

 

337

 

25

 

30

Benefits & other policy reserve changes

 

730

 

 

730

 

Market risk benefit (gains) losses

 

5

 

 

5

 

Depreciation and amortization

 

130

 

37

 

86

 

7

Provision for title claim losses

 

57

 

57

 

 

Interest expense

 

26

 

 

6

 

20

Total expenses

 

2,617

 

1,639

 

899

 

79

                 

Pre-tax earnings (loss)

 

$            (60)

 

$            239

 

$         (272)

 

$                (27)

                 

  Income tax expense (benefit)

 

(55)

 

37

 

(96)

 

4

  Earnings from equity investments

 

(1)

 

(1)

 

 

  Non-controlling interests

 

(1)

 

3

 

(4)

 

                 

Net earnings (loss) attributable to common shareholders

 

$              (5)

 

$            198

 

$         (172)

 

$                (31)

                 

EPS attributable to common shareholders - basic

 

$         (0.02)

           
                 

EPS attributable to common shareholders - diluted

 

$         (0.02)

           
                 

Weighted average shares - basic

 

270

           

Weighted average shares - diluted

 

271

           

 

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

December 31, 2022

       

Net earnings (loss) attributable to common shareholders

 

$                   (5)

 

$                198

 

$              (172)

 

$                (31)

                 

Pre-tax earnings (loss) from continuing operations

 

$                (60)

 

$                239

 

$              (272)

 

$                (27)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

107

 

(29)

 

136

 

  Market related liability adjustments

 

217

 

 

217

 

  Purchase price amortization

 

25

 

17

 

5

 

3

  Transaction costs

 

8

 

 

2

 

6

                 

Adjusted pre-tax earnings (loss)

 

$                297

 

$                227

 

$                  88

 

$                (18)

                 

Total non-GAAP, pre-tax adjustments

 

$                357

 

$                (12)

 

$                360

 

$                    9

  Income taxes on non-GAAP adjustments

 

(53)

 

3

 

(54)

 

(2)

  Non-controlling interest on non-GAAP adjustments

 

(15)

 

 

(15)

 

  Deferred tax asset valuation allowance

 

(10)

 

(9)

 

 

(1)

Total non-GAAP adjustments

 

$                279

 

$                (18)

 

$                291

 

$                    6

                 

Adjusted net earnings (loss) attributable to common shareholders

 

$                274

 

$                180

 

$                119

 

$                (25)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               1.01

           

 

FIDELITY NATIONAL FINANCIAL, INC. 

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Twelve Months Ended

       

December 31, 2023

       

Direct title premiums

 

$        1,982

 

$         1,982

 

$          —

 

$               —

Agency title premiums

 

2,610

 

2,610

 

 

Escrow, title related and other fees

 

4,717

 

2,117

 

2,413

 

187

Total title and escrow

 

9,309

 

6,709

 

2,413

 

187

                 

Interest and investment income

 

2,607

 

338

 

2,211

 

58

Recognized gains and losses, net

 

(164)

 

(9)

 

(124)

 

(31)

Total revenue

 

11,752

 

7,038

 

4,500

 

214

                 

Personnel costs

 

2,908

 

2,544

 

232

 

132

Agent commissions

 

2,008

 

2,008

 

 

Other operating expenses

 

1,521

 

1,242

 

146

 

133

Benefits & other policy reserve changes

 

3,553

 

 

3,553

 

Market risk benefit (gains) losses

 

95

 

 

95

 

Depreciation and amortization

 

593

 

154

 

412

 

27

Provision for title claim losses

 

207

 

207

 

 

Interest expense

 

174

 

 

97

 

77

Total expenses

 

11,059

 

6,155

 

4,535

 

369

                 

Pre-tax earnings (loss) from continuing operations

 

$            693

 

$            883

 

$        (35)

 

$          (155)

                 

  Income tax expense (benefit)

 

192

 

181

 

23

 

(12)

  Earnings (loss) from equity investments

 

17

 

17

 

 

  Non-controlling interests

 

1

 

13

 

(12)

 

                 

Net earnings (loss) attributable to common shareholders

 

$            517

 

$            706

 

$        (46)

 

$          (143)

                 

EPS attributable to common shareholders - basic

 

$          1.91

           
                 

EPS attributable to common shareholders - diluted

 

$          1.91

           
                 

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

Twelve Months Ended

       

December 31, 2023

       

Net earnings (loss) attributable to common shareholders

 

$                517

 

$                706

 

$           (46)

 

$              (143)

                 

Pre-tax earnings (loss) from continuing operations

 

$                693

 

$                883

 

$           (35)

 

$              (155)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

254

 

9

 

214

 

31

  Market related liability adjustments

 

258

 

 

258

 

  Purchase price amortization

 

108

 

72

 

22

 

14

  Pension Retirement Charge

 

8

 

 

 

8

  Cybersecurity incident

 

10

 

 

 

10

  Transaction costs

 

9

 

 

3

 

6

                 

Adjusted pre-tax earnings (loss)

 

$             1,340

 

$                964

 

$           462

 

$                (86)

                 

Total non-GAAP, pre-tax adjustments

 

$                647

 

$                  81

 

$           497

 

$                  69

  Income taxes on non-GAAP adjustments

 

(139)

 

(19)

 

(104)

 

(16)

  Deferred tax asset valuation allowance

 

 

(8)

 

 

8

  Non-controlling interest on non-GAAP adjustments

 

(63)

 

 

(62)

 

(1)

Total non-GAAP adjustments

 

$                445

 

$                  54

 

$           331

 

$                  60

                 

Adjusted net earnings (loss) attributable to common shareholders

 

$                962

 

$                760

 

$           285

 

$                (83)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               3.55

           

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 

Twelve Months Ended

 

Consolidated

 

Title

     

Corporate and
Other

December 31, 2022

     

F&G

 

Direct title premiums

 

$        2,858

 

$        2,858

 

$                  —

 

$                  —

Agency title premiums

 

3,976

 

3,976

 

 

Escrow, title related and other fees 

 

4,333

 

2,502

 

1,704

 

127

Total title and escrow

 

11,167

 

9,336

 

1,704

 

127

                 

Interest and investment income

 

1,891

 

213

 

1,655

 

23

Recognized gains and losses, net

 

(1,493)

 

(443)

 

(1,010)

 

(40)

Total revenue

 

11,565

 

9,106

 

2,349

 

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

 

1,126

 

 

1,126

 

Market risk benefit (gains) losses

 

(182)

 

 

(182)

 

Depreciation and amortization

 

491

 

142

 

324

 

25

Provision for title claim losses

 

308

 

308

 

 

Interest expense

 

115

 

 

29

 

86

Total expenses

 

9,835

 

8,016

 

1,556

 

263

                 

Pre-tax earnings (loss) from continuing operations

 

$        1,730

 

$        1,090

 

$                793

 

$              (153)

                 

  Income tax expense (benefit)

 

439

 

298

 

158

 

(17)

  Earnings from equity investments

 

15

 

15

 

 

  Non-controlling interests

 

12

 

17

 

(4)

 

(1)

                 

Net earnings (loss) attributable to common shareholders

 

$        1,294

 

$            790

 

$                639

 

$              (135)

                 

EPS attributable to common shareholders - basic

 

$          4.71

           

EPS attributable to common shareholders - diluted

 

$          4.67

           
                 

Weighted average shares - basic

 

275

           

Weighted average shares - diluted

 

277

           

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)

 

 

Twelve Months Ended
December 31, 2022

 

Consolidated

 

Title

 

F&G

 

Corporate and Other

Net earnings (loss) attributable to common shareholders

 

$             1,294

 

$                790

 

$           639

 

$              (135)

                 

Pre-tax earnings (loss) from continuing operations

 

$             1,730

 

$             1,090

 

$           793

 

$              (153)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

600

 

443

 

117

 

40

  Market related liability adjustments

 

(534)

 

 

(534)

 

  Purchase price amortization

 

95

 

60

 

21

 

14

  Transaction costs

 

12

 

 

10

 

2

                 

Adjusted pre-tax earnings (loss)

 

$             1,903

 

$             1,593

 

$           407

 

$                (97)

                 

Total non-GAAP, pre-tax adjustments

 

$                173

 

$                503

 

$         (386)

 

$                  56

  Income taxes on non-GAAP adjustments

 

(30)

 

(121)

 

104

 

(13)

  Deferred tax asset valuation allowance

 

68

 

58

 

 

10

  Non-controlling interest on non-GAAP adjustments

 

(16)

 

 

(15)

 

(1)

Total non-GAAP adjustments

 

$                195

 

$                440

 

$         (297)

 

$                  52

                 

Adjusted net earnings (loss) attributable to common shareholders

 

$             1,489

 

$             1,230

 

$           342

 

$                (83)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               5.38

           

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)

 
   

December 31,
2023

 

December 31,
2022

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$         58,816

   

$         47,656

Goodwill

   

4,830

   

4,635

Title plant

   

418

   

416

Total assets

   

80,614

   

65,143

Notes payable

   

3,887

   

3,238

Reserve for title claim losses

   

1,770

   

1,810

Secured trust deposits

   

731

   

862

Accumulated other comprehensive (loss) earnings

   

(2,119)

   

(2,870)

Non-controlling interests

   

552

   

453

Total equity and non-controlling interests

   

7,460

   

6,569

Total equity attributable to common shareholders

   

6,908

   

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

   

Twelve Months Ended

(Dollars in millions)

December 31, 2023

December 31, 2022

   

December 31, 2023

December 31, 2022

Pre-tax earnings

$                   245

$                    239

   

$                   883

$               1,090

Non-GAAP adjustments before taxes

           

  Recognized (gains) and losses, net

(65)

(29)

   

9

443

  Purchase price amortization

18

17

   

72

60

Total non-GAAP adjustments

(47)

(12)

   

81

503

Adjusted pre-tax earnings

$                   198

$                    227

   

$                   964

$               1,593

Adjusted pre-tax margin

11.8 %

12.3 %

   

13.7 %

16.7 %

 

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)

 
   

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

Q3 2022

 

Q2 2022

 

Q1 2022

Quarterly Opened Orders ('000's except % data)

Total opened orders*

 

257

 

318

 

347

 

308

 

266

 

363

 

443

 

522

Total opened orders per day*

 

4.1

 

5.0

 

5.4

 

5.0

 

4.3

 

5.7

 

6.9

 

8.6

Purchase % of opened orders

 

78 %

 

80 %

 

79 %

 

78 %

 

76 %

 

76 %

 

75 %

 

62 %

Refinance % of opened orders

 

22 %

 

20 %

 

21 %

 

22 %

 

24 %

 

24 %

 

25 %

 

38 %

Total closed orders*

 

192

 

224

 

233

 

188

 

216

 

278

 

348

 

380

Total closed orders per day*

 

3.1

 

3.6

 

3.6

 

3.0

 

3.5

 

4.3

 

5.4

 

6.2

Purchase % of closed orders

 

80 %

 

80 %

 

81 %

 

78 %

 

76 %

 

76 %

 

71 %

 

55 %

Refinance % of closed orders

 

20 %

 

20 %

 

19 %

 

22 %

 

24 %

 

24 %

 

29 %

 

45 %

                                 

Commercial (millions, except orders in '000's)

Total commercial revenue

 

$      294

 

$      263

 

$      263

 

$      241

 

$      344

 

$      381

 

$      436

 

$      374

Total commercial opened orders

 

43.7

 

49.1

 

50.2

 

48.5

 

44.9

 

54.8

 

64.2

 

66.1

Total commercial closed orders

 

26.3

 

25.6

 

27.7

 

24.7

 

30.5

 

35.2

 

39.7

 

37.4

                                 

National commercial revenue

 

$      161

 

$      128

 

$      128

 

$      118

 

$      173

 

$      191

 

$      220

 

$      196

National commercial opened orders

 

18.0

 

18.9

 

19.3

 

18.5

 

17.8

 

22.1

 

26.7

 

27.5

National commercial closed orders

 

9.8

 

9.2

 

9.9

 

8.5

 

11.9

 

14.0

 

15.3

 

14.6

                                 

Total Fee Per File

Fee per file

 

$   3,806

 

$   3,618

 

$   3,598

 

$   3,446

 

$   3,649

 

$   3,621

 

$   3,557

 

$   2,891

Residential fee per file

 

$   2,889

 

$   2,861

 

$   2,897

 

$   2,601

 

$   2,542

 

$   2,697

 

$   2,695

 

$   2,188

Total commercial fee per file

 

$ 11,200

 

$  10,300

 

$   9,500

 

$   9,800

 

$ 11,300

 

$  10,800

 

$  11,000

 

$  10,000

National commercial fee per file

 

$ 16,400

 

$  13,900

 

$  12,900

 

$  13,900

 

$ 14,600

 

$  13,600

 

$  14,400

 

$  13,400

                                 

Total Staffing

Total field operations employees

 

9,900

 

10,400

 

10,600

 

10,400

 

10,700

 

12,000

 

12,700

 

13,400

                                 

Actual title claims paid ($ millions)

 

$       64

 

$        69

 

$        67

 

$        62

 

$       79

 

$        65

 

$        55

 

$        54

 

FIDELITY NATIONAL FINANCIAL, INC.

MONTHLY TITLE ORDER STATISTICS

 
     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

 

 / (% Purchase)

October  2023

   

101,000

78 %

   

70,000

80 %

November 2023 

   

75,000

79 %

   

54,000

80 %

December 2023 

   

81,000

78 %

   

68,000

79 %

             

Fourth  Quarter 2023

   

257,000

78 %

   

192,000

80 %

 

     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

   

 / (% Purchase)

October 2022

   

102,000

76 %

   

78,000

75 %

November  2022

   

87,000

77 %

   

68,000

77 %

December 2022

   

77,000

75 %

   

70,000

78 %

             

Fourth  Quarter 2022

   

266,000

76 %

   

216,000

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

 

Twelve Months Ended

(Dollars in millions)

December 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

Net earnings attributable to common shareholders

$               (251)

 

$               (172)

 

$               (46)

 

$                 639

Non-GAAP adjustments(1):

             

Recognized (gains) losses, net

114

 

136

 

214

 

117

Market related liability adjustments

353

 

217

 

258

 

(534)

Purchase price amortization

6

 

5

 

22

 

21

Transaction costs

 

2

 

3