FNF Reports Second Quarter 2022 Financial Results

August 2, 2022 at 4:15 PM EDT

JACKSONVILLE, Fla., Aug. 2, 2022 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE:FNF) (the Company), a leading provider of title insurance and transaction services to the real estate and mortgage industries and a leading provider of insurance solutions serving retail annuity and life customers and institutional clients through FNF's wholly-owned subsidiary, F&G, today reported financial results for the second quarter ended June 30, 2022.

Net earnings attributable to common shareholders for the second quarter of $382 million, or $1.37 per diluted share (per share), compared to $552 million, or $1.92 per share, for the second quarter of 2021. Net earnings attributable to common shareholders for the second quarter of 2022 includes $80 million of net unfavorable mark-to-market effects and $68 million of other unfavorable items; all of which are excluded from adjusted net earnings attributable to common shareholders.

Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter of $530 million, or $1.90 per share, compared to $593 million, or $2.06 per share, for the second quarter of 2021. The decrease from the prior year quarter was primarily a result of Title's decline in refinance volume, representing trough level activity versus the record levels set in the prior year period; partially offset by higher average fee per file, steady volume of commercial orders closed and higher earnings from F&G.  F&G's adjusted net earnings for the second quarter of 2022 were $128 million, including $36 million of net favorable items primarily as a result of actuarial assumption updates, compared to $92 million, including $22 million of net favorable items, for the second quarter of 2021.

Company Highlights

  • Solid Title Revenue: For the Title segment, total revenue of $2.6 billion, compared with $3.0 billion in total revenue in the second quarter of 2021. Total revenue, excluding recognized gains and losses, of $2.8 billion, compared with $3.0 billion in the second quarter of 2021
  • Growth strategy drives strong sales for F&G: Total sales of $3.1 billion for the second quarter, a 15% increase over second quarter 2021 and a 19% increase over first quarter 2022; reflects successful execution of F&G's diversified growth strategy and a disciplined approach to pricing
  • Partial spin-off of F&G remains on track: Pursuant to the previously announced transaction to distribute 15% ownership of F&G to FNF shareholders on a pro rata basis, F&G has filed its confidential Form 10 registration statement with the U.S. Securities and Exchange Commission for the partial spin-off. The filing represents a significant milestone in the transaction process, which remains on track to close early in the fourth quarter of 2022, subject to customary approvals. As expected, the Company executed on the conversion of the $400 million intercompany term loan into F&G equity during the second quarter
  • Ample deployable capital supports shareholder value: FNF has repurchased 4.3 million shares for $172 million, at an average price of $39.76 per share, in the second quarter and paid common dividends at $0.44 per share for $122 million. FNF ended the second quarter with $1.6 billion in cash and short-term liquid investments at the holding company

William P. Foley, II, commented, "As we continue to navigate the market volatility due to rising interest rates and the ongoing economic uncertainty, we are proud of our second quarter results where we delivered total revenue of $2.6 billion, reflecting a moderation from the record setting mortgage market activity experienced in the year ago second quarter. Our Title business performed well and reflects management's execution and flexible operating model designed to rapidly adapt to changing market conditions. F&G delivered near record sales in the second quarter, as investors sought safe haven investments given the sharp increase in market volatility, which generated growth in assets under management to $40.3 billion at June 30, 2022. F&G's performance in the current market environment continues to support our acquisition thesis given their countercyclical business model which benefits from higher interest rates and provides a balance to our business as Title revenues begin to contract given higher mortgage rates."

Mr. Foley concluded, "Looking forward, we remain optimistic that the F&G partial spin-off is on track for the fourth quarter of this year and, once completed, will highlight the value creation that has occurred at F&G over the last two years.  This planned transaction represents the Board's and management's commitment to delivering value to our shareholders.  Our capital allocation strategy is another lever that we utilize to provide a steady stream of capital to our shareholders through our quarterly dividend while maintaining our share repurchase program as we deploy our strong free cash flow.  During the quarter, we accelerated our buyback activity having repurchased $172 million of stock as compared to $134 million in the first quarter.  Year to date, we have repurchased $306 million of stock while returning $245 million through our quarterly dividend."

Summary Financial Results

(In millions, except per share data)

Three Months Ended

Year to Date

 

June 30, 2022

 

June 30, 2021

2022

 

2021

Total revenue

$            2,631

 

$            3,854

$      5,796

 

$      6,954

F&G total sales1

$            3,073

 

$            2,667

$      5,662

 

$      4,321

F&G assets under management1

$          40,322

 

$          31,760

$    40,322

 

$    31,760

Total assets

$          61,230

 

$          54,520

$    61,230

 

$    54,520

Adjusted pre-tax title margin

18.9 %

 

22.7 %

18.0 %

 

21.4 %

Net earnings attributable to common shareholders

$               382

 

$               552

$         779

 

$      1,157

Net earnings per share attributable to common shareholders

$              1.37

 

$              1.92

$        2.77

 

$        4.00

Adjusted net earnings1

$               530

 

$               593

$         918

 

$      1,048

Adjusted net earnings per share1

$              1.90

 

$              2.06

$        3.27

 

$        3.63

Total common shares outstanding

277

 

286

277

 

286

_______________________________

1  See definition of non-GAAP measures below

 

Segment Financial Results

Title

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.

Second Quarter 2022 Highlights

Mike Nolan, Chief Executive Officer, said, "Our Title business produced a strong performance in the second quarter, despite the housing market experiencing headwinds from higher mortgage rates which has impacted residential refinance and purchase volumes.  We are pleased with our adjusted pre-tax title earnings of $529 million and adjusted pre-tax title margin of 18.9% during the second quarter as we continue to benefit from strength in the commercial market combined with stability in the purchase market, both as compared to the first quarter of 2022, while our refinance volumes appear to be bottoming.  Though the economic outlook and near-term market trends are uncertain, we will continue to manage the business the way we have through prior cycles, effectively managing margin by adjusting expenses to align with trends in opened and closed order volumes.  We will also be opportunistic and use market dislocation to continue expanding our business through attractive acquisitions and recruiting of established and experienced producers."

  • Total revenue of $2.6 billion, compared with $3.0 billion in total revenue in the second quarter of 2021
  • Total revenue, excluding recognized gains and losses, of $2.8 billion, a 7% decrease compared with the second quarter of 2021
    • Direct title premiums of $859 million, a 5% decrease from second quarter of 2021
    • Agency title premiums of $1.2 billion, a 4% decrease from second quarter of 2021
    • Commercial revenue of $436 million, a 26% increase from second quarter of 2021
  • Purchase orders opened decreased 12% on a daily basis and purchase orders closed decreased 11% on a daily basis from the second quarter of 2021
  • Refinance orders opened decreased 67% on a daily basis and refinance orders closed decreased 68% on a daily basis from second quarter of 2021
  • Commercial orders opened decreased 7% and commercial orders closed decreased 6% from second quarter of 2021
  • Total fee per file of $3,557 for the second quarter, a 46% increase over second quarter of 2021

Second Quarter 2022 Financial Results

  • Pre-tax title margin of 10.5% and industry leading adjusted pre-tax title margin of 18.9% for the second quarter of 2022, compared to 21.5% and 22.7%, respectively, in the second quarter of 2021
  • Pre-tax earnings from continuing operations in Title for the second quarter of $267 million, compared with $644 million for the second quarter of 2021
  • Adjusted pre-tax earnings in Title for the second quarter of $529 million compared with $688 million for the second quarter of 2021. The decrease from the prior year quarter was primarily a result of the considerable decline in refinance volume representing trough level activity versus the record levels set in the prior year period; partially offset by higher average fee per file and steady volume of commercial orders closed

F&G

This segment consists of operations of FNF's wholly-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.

Second Quarter 2022

Chris Blunt, President and Chief Executive Officer of F&G, commented, "F&G had a terrific quarter, demonstrated by our top line and bottom line results.  We generated total gross sales of $3.1 billion which, in turn, drove our assets under management to $40.3 billion.  In the retail channels, we generated a record $2.2 billion of sales, up 34% from the prior year quarter. Our retail sales volumes reflect expanding relationships with new and existing distribution partners, traction from a comprehensive product portfolio that meets a broad range of consumer needs, and increased demand given higher interest rates. Momentum continues in our institutional channels as we issued nearly $0.9 billion in funding agreements, even amidst a challenging rate environment for that space.  On the bottom line, we delivered adjusted net earnings of $128 million, including $36 million of favorable notable items, which comprised 24% of FNF's consolidated adjusted net earnings."

Regarding the recently announced transaction to distribute 15% ownership of F&G to FNF shareholders, Mr. Blunt said, "We are making progress toward a targeted closing early in the fourth quarter of 2022.  Overall, we are well positioned for future growth opportunities and view the transition to being a publicly traded company as a vote of confidence for our business."

  • Total gross sales of $3.1 billion for the second quarter, an increase of 15% over the second quarter 2021 and an increase of 19% over first quarter 2022; reflects successful execution of F&G's diversified growth strategy and a disciplined approach to pricing
  • Record Retail sales of $2.2 billion for the second quarter, a 34% increase over second quarter of 2021 and 53% increase over first quarter 2022 as sales resumed our planned growth trajectory, following moderated volume in first quarter from an inflection point in pricing actions taken in response to the macro environment
  • Institutional sales of approximately $0.9 billion funding agreement issuances, compared to $1.0 billion funding agreement issuances for the second quarter 2021
  • Average assets under management (AAUM) of $39.3 billion for the second quarter, an increase of 29% from $30.4 billion in the second quarter 2021, driven by net new business asset flows. Ending assets under management were $40.3 billion as of June 30, 2022
  • Net earnings attributable to common shareholders for F&G of $230 million for the second quarter, compared to $82 million for the second quarter of 2021
  • Adjusted net earnings for F&G of $128 million for the second quarter, compared to $92 million for the second quarter of 2021. Adjusted net earnings excluding notable items were $92 million in the second quarter, an increase of $22 million or 31% compared to $70 million in the prior year quarter, primarily driven by growth in assets under management
    • Net favorable items in second quarter of 2022 were $36 million, primarily as a result of actuarial assumption updates; we have updated assumptions for our fixed indexed annuity guaranteed minimum withdrawal benefits, based on utilization experience relative to our more conservative assumptions, as well as our net earned rate assumptions which we will continue to monitor in response to significant changes in the macro environment
    • Net favorable items in second quarter of 2021 were $22 million, primarily as a result of favorable CLO redemptions

Conference Call
We will host a call with investors and analysts to discuss FNF's second quarter 2022 results on Wednesday, August 3, 2022, 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 2:00 p.m. Eastern Time on August 3, 2022, through August 10, 2022, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13730096. An expanded quarterly financial supplement providing F&G segment results is available on the FNF Investor Relations website.

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), net investment spread, 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: the potential impact of the consummation of the F&G transaction on relationships, including with employees, suppliers, customers and competitors; changes in general economic, business, political and COVID-19 conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission (SEC).

FNF-E

SOURCE:  Fidelity National Financial, Inc.; FGL Holdings

 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 

Consolidated

 

Title

 

F&G

 

Corporate and
Other

         

Three Months Ended

       

June 30, 2022

       

Direct title premiums

 

$            859

 

$            859

 

$             —

 

$                  —

Agency title premiums

 

1,203

 

1,203

 

 

Escrow, title related and other fees

 

782

 

706

 

68

 

8

Total title and escrow

 

2,844

 

2,768

 

68

 

8

                 

Interest and investment income

 

463

 

35

 

425

 

3

Recognized gains and losses, net

 

(676)

 

(249)

 

(426)

 

(1)

Total revenue

 

2,631

 

2,554

 

67

 

10

                 

Personnel costs

 

839

 

821

 

34

 

(16)

Agent commissions

 

930

 

930

 

 

Other operating expenses

 

457

 

409

 

31

 

17

Benefits & other policy reserve changes

 

(418)

 

 

(418)

 

Depreciation and amortization

 

161

 

34

 

121

 

6

Provision for title claim losses

 

93

 

93

 

 

Interest expense

 

31

 

 

9

 

22

Total expenses

 

2,093

 

2,287

 

(223)

 

29

                 

Pre-tax earnings (loss) from continuing operations

 

$            538

 

$            267

 

$           290

 

$                 (19)

                 

  Income tax expense (benefit)

 

164

 

111

 

60

 

(7)

  Earnings (loss) from equity investments

 

14

 

14

 

 

  Earnings (loss) from discontinued operations, net of tax

 

 

 

 

  Non-controlling interests

 

6

 

6

 

 

                 

Net earnings (loss) attributable to common shareholders

 

$            382

 

$            164

 

$           230

 

$                 (12)

                 

EPS from continuing operations attributable to common
shareholders - basic

 

$          1.37

           

EPS from discontinued operations attributable to common
shareholders - basic

 

           

EPS attributable to common shareholders - basic

 

$          1.37

           
                 

EPS from continuing operations attributable to common
shareholders - diluted

 

$          1.37

           

EPS from discontinued operations attributable to common
shareholders - diluted

 

           

EPS attributable to common shareholders - diluted

 

$          1.37

           
                 

Weighted average shares - basic

 

278

           

Weighted average shares - diluted

 

279

           

 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

June 30, 2022

       

Net earnings (loss) attributable to common shareholders

 

$                382

 

$                164

 

$           230

 

$                 (12)

                 

  Earnings from discontinued operations, net of tax

 

 

 

 

                 

Net earnings (loss) from continuing operations attributable to
common shareholders

 

$                382

 

$                164

 

$           230

 

$                 (12)

                 

Pre-tax earnings (loss) from continuing operations

 

$                538

 

$                267

 

$           290

 

$                 (19)

                 

 Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

271

 

249

 

21

 

1

  Indexed product related derivatives

 

(159)

 

 

(159)

 

  Purchase price amortization

 

21

 

13

 

5

 

3

  Transaction costs

 

(5)

 

 

4

 

(9)

                 

Adjusted pre-tax earnings (loss)

 

$                666

 

$                529

 

$           161

 

$                 (24)

                 

Total non-GAAP, pre-tax adjustments

 

$                128

 

$                262

 

$          (129)

 

$                   (5)

  Income taxes on non-GAAP adjustments

 

(35)

 

(63)

 

27

 

1

  Deferred tax asset valuation allowance

 

55

 

55

 

 

Total non-GAAP adjustments

 

$                148

 

$                254

 

$          (102)

 

$                   (4)

                 

Adjusted net earnings (loss) from continuing operations
attributable to common shareholders

 

$                530

 

$                418

 

$           128

 

$                 (16)

                 

Adjusted EPS from continuing operations attributable to common
shareholders - diluted

 

$               1.90

           

 

 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

         

Three Months Ended

       

June 30, 2021

       

Direct title premiums

 

$            904

 

$            904

 

$             —

 

$                  —

Agency title premiums

 

1,256

 

1,256

 

 

Escrow, title related and other fees

 

948

 

839

 

62

 

47

Total title and escrow

 

3,108

 

2,999

 

62

 

47

                 

Interest and investment income

 

514

 

27

 

487

 

Recognized gains and losses, net

 

232

 

(30)

 

253

 

9

Total revenue

 

3,854

 

2,996

 

802

 

56

                 

Personnel costs

 

890

 

826

 

32

 

32

Agent commissions

 

970

 

970

 

 

Other operating expenses

 

476

 

425

 

26

 

25

Benefits & other policy reserve changes

 

575

 

 

575

 

Depreciation and amortization

 

105

 

34

 

65

 

6

Provision for title claim losses

 

97

 

97

 

 

Interest expense

 

28

 

 

7

 

21

Total expenses

 

3,141

 

2,352

 

705

 

84

                 

Pre-tax earnings (loss)

 

$            713

 

$            644

 

$             97

 

$                 (28)

                 

  Income tax expense (benefit)

 

176

 

160

 

21

 

(5)

  Earnings from equity investments

 

14

 

14

 

 

  Earnings (loss) from discontinued operations, net of tax

 

6

 

 

6

 

  Non-controlling interests

 

5

 

5

 

 

                 

Net earnings (loss) attributable to common shareholders

 

$            552

 

$            493

 

$             82

 

$                 (23)

                 

EPS from continuing operations attributable to common
shareholders - basic

 

$          1.91

           

EPS from discontinued operations attributable to common
shareholders - basic

 

$          0.02

           

EPS attributable to common shareholders - basic

 

$          1.93

           
                 

EPS from continuing operations attributable to common
shareholders - diluted

 

$          1.90

           

EPS from discontinued operations attributable to common
shareholders - diluted

 

$          0.02

           

EPS attributable to common shareholders - diluted

 

$          1.92

           
                 

Weighted average shares - basic

 

286

           

Weighted average shares - diluted

 

288

           

 

 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

         

Three Months Ended

       

June 30, 2021

       

Net earnings (loss) attributable to common shareholders

 

$                552

 

$                493

 

$                  82

 

$                 (23)

                 

  Earnings from discontinued operations, net of tax

 

$                    6

 

$                  —

 

$                    6

 

$                   —

                 

Net earnings (loss) from continuing operations, attributable to
common shareholders

 

$                546

 

$                493

 

$                  76

 

$                 (23)

                 

Pre-tax earnings (loss) from continuing operations

 

713

 

644

 

97

 

(28)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

(42)

 

30

 

(63)

 

(9)

  Indexed product related derivatives

 

75

 

 

75

 

  Purchase price amortization

 

24

 

14

 

6

 

4

  Transaction costs

 

4

 

 

2

 

2

                 

Adjusted pre-tax earnings (loss)

 

$                774

 

$                688

 

$                117

 

$                 (31)

                 

Total non-GAAP, pre-tax adjustments

 

$                  61

 

$                  44

 

$                  20

 

$                   (3)

  Income taxes on non-GAAP adjustments

 

(13)

 

(10)

 

(4)

 

1

  Non-controlling interest on non-GAAP adjustments

 

(1)

 

 

 

(1)

Total non-GAAP adjustments

 

$                  47

 

$                  34

 

$                  16

 

$                   (3)

                 

Adjusted net earnings attributable to common shareholders

 

$                593

 

$                527

 

$                  92

 

$                 (26)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               2.06

           

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

                 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Six Months Ended

       

June 30, 2022

       

Direct title premiums

 

$        1,626

 

$         1,626

 

$          —

 

$               —

Agency title premiums

 

2,302

 

2,302

 

 

Escrow, title related and other fees

 

2,072

 

1,371

 

662

 

39

Total title and escrow

 

6,000

 

5,299

 

662

 

39

                 

Interest and investment income

 

941

 

62

 

876

 

3

Recognized gains and losses, net

 

(1,145)

 

(424)

 

(723)

 

2

Total revenue

 

5,796

 

4,937

 

815

 

44

                 

Personnel costs

 

1,662

 

1,597

 

64

 

1

Agent commissions

 

1,774

 

1,774

 

 

Other operating expenses

 

899

 

806

 

49

 

44

Benefits & other policy reserve changes

 

(210)

 

 

(210)

 

Depreciation and amortization

 

343

 

67

 

264

 

12

Provision for title claim losses

 

177

 

177

 

 

Interest expense

 

61

 

 

17

 

44

Total expenses

 

4,706

 

4,421

 

184

 

101

                 

Pre-tax earnings (loss) from continuing operations

 

$        1,090

 

$            516

 

$       631

 

$             (57)

                 

  Income tax expense (benefit)

 

319

 

168

 

165

 

(14)

  Earnings (loss) from equity investments

 

16

 

16

 

 

  Earnings from discontinued operations, net of tax

 

 

 

 

  Non-controlling interests

 

8

 

9

 

 

(1)

                 

Net earnings (loss) attributable to common shareholders

 

$            779

 

$            355

 

$       466

 

$             (42)

                 

EPS from continuing operations attributable to common
shareholders - basic

 

$          2.79

           

EPS from discontinued operations attributable to common
shareholders - basic

 

           

EPS attributable to common shareholders - basic

 

$          2.79

           
                 

EPS from continuing operations attributable to common
shareholders - diluted

 

$          2.77

           

EPS from discontinued operations attributable to common
shareholders - diluted

 

           

EPS attributable to common shareholders - diluted

 

$          2.77

           
                 

Weighted average shares - basic

 

279

           

Weighted average shares - diluted

 

281

           

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Six Months Ended

       

June 30, 2022

       

Net earnings (loss) attributable to common shareholders

 

$                779

 

$                355

 

$           466

 

$                 (42)

                 

Earnings from discontinued operations, net of tax

 

 

 

 

                 

Net earnings (loss) from continuing operations attributable to
common shareholders

 

$                779

 

$                355

 

$           466

 

$                 (42)

                 

Pre-tax earnings (loss) from continuing operations

 

$             1,090

 

$                516

 

$           631

 

$                 (57)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

410

 

424

 

(12)

 

(2)

  Indexed product related derivatives

 

(327)

 

 

(327)

 

  Purchase price amortization

 

44

 

26

 

11

 

7

  Transaction costs

 

(3)

 

 

4

 

(7)

                 

Adjusted pre-tax earnings (loss)

 

$             1,214

 

$                966

 

$           307

 

$                 (59)

                 

Total non-GAAP, pre-tax adjustments

 

$                124

 

$                450

 

$         (324)

 

$                   (2)

  Income taxes on non-GAAP adjustments

 

(40)

 

(108)

 

68

 

  Deferred tax asset valuation allowance

 

55

 

55

 

 

Total non-GAAP adjustments

 

$                139

 

$                397

 

$         (256)

 

$                   (2)

                 

Adjusted net earnings (loss) from continuing operations attributable to
common shareholders

 

$                918

 

$                752

 

$           210

 

$                 (44)

                 

Adjusted EPS from continuing operations attributable to common
shareholders - diluted

 

$               3.27

           

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
           

F&G

   

Six Months Ended

 

Consolidated

 

Title

   

Corporate and
Other

June 30, 2021

       

Direct title premiums

 

$        1,650

 

$        1,650

 

$                  —

 

$                  —

Agency title premiums

 

2,314

 

2,314

 

 

Escrow, title related and other fees 

 

1,799

 

1,584

 

126

 

89

Total title and escrow

 

5,763

 

5,548

 

126

 

89

                 

Interest and investment income

 

916

 

56

 

860

 

Recognized gains and losses, net

 

275

 

(89)

 

355

 

9

Total revenue

 

6,954

 

5,515

 

1,341

 

98

                 

Personnel costs

 

1,702

 

1,580

 

61

 

61

Agent commissions

 

1,777

 

1,777

 

 

Other operating expenses

 

934

 

830

 

54

 

50

Benefits & other policy reserve changes

 

549

 

 

549

 

Depreciation and amortization

 

288

 

67

 

209

 

12

Provision for title claim losses

 

178

 

178

 

 

Interest expense

 

56

 

 

15

 

41

Total expenses

 

5,484

 

4,432

 

888

 

164

                 

Pre-tax earnings (loss) from continuing operations

 

$        1,470

 

$        1,083

 

$                453

 

$                 (66)

                 

  Income tax expense (benefit)

 

342

 

263

 

93

 

(14)

  Earnings from equity investments

 

27

 

22

 

 

5

  Earnings (loss) from discontinued operations, net of tax

 

11

 

 

11

 

  Non-controlling interests

 

9

 

9

 

 

                 

Net earnings (loss) attributable to common shareholders

 

$        1,157

 

$            833

 

$                371

 

$                 (47)

                 

EPS from continuing operations attributable to common
shareholders - basic

 

$          3.99

           

EPS from discontinued operations attributable to common
shareholders - basic

 

$          0.04

           

EPS attributable to common shareholders - basic

 

$          4.03

           

EPS from continuing operations attributable to common
shareholders - diluted

 

$          3.96

           

EPS from discontinued operations attributable to common
shareholders - diluted

 

$          0.04

           

EPS attributable to common shareholders - diluted

 

$          4.00

           
                 

Weighted average shares - basic

 

287

           

Weighted average shares - diluted

 

289

           

 

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

         

Six Months Ended

       

June 30, 2021

       

Net earnings (loss) attributable to common shareholders

 

$             1,157

 

$                833

 

$           371

 

$                 (47)

                 

Earnings from discontinued operations, net of tax

 

11

 

 

11

 

                 

Net earnings (loss) from continuing operations attributable to
common shareholders

 

$             1,146

 

$                833

 

$           360

 

$                 (47)

                 

Pre-tax earnings (loss) from continuing operations

 

1,470

 

1,083

 

453

 

(66)

                 

Non-GAAP Adjustments

               

  Recognized (gains) and losses, net

 

(65)

 

89

 

(145)

 

(9)

  Indexed product related derivatives

 

(110)

 

 

(110)

 

  Purchase price amortization

 

49

 

28

 

13

 

8

  Transaction costs

 

10

 

 

4

 

6

                 

Adjusted pre-tax earnings (loss)

 

$             1,354

 

$             1,200

 

$           215

 

$                 (61)

                 

Total non-GAAP, pre-tax adjustments

 

$               (116)

 

$                117

 

$         (238)

 

$                    5

  Income taxes on non-GAAP adjustments

 

19

 

(28)

 

48

 

(1)

  Non-controlling interest on non-GAAP adjustments

 

(1)

 

 

 

(1)

Total non-GAAP adjustments

 

$                 (98)

 

$                  89

 

$         (190)

 

$                    3

                 

Adjusted net earnings (loss) attributable to common shareholders

 

$             1,048

 

$                922

 

$           170

 

$                 (44)

                 

Adjusted EPS attributable to common shareholders - diluted

 

$               3.63

           

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)

 
   

June 30,
2022

 

December 31,
2021

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$         45,399

   

$         47,135

Goodwill

   

4,538

   

4,539

Title plant

   

400

   

400

Total assets

   

61,230

   

60,690

Notes payable

   

3,094

   

3,096

Reserve for title claim losses

   

1,843

   

1,883

Secured trust deposits

   

1,173

   

934

Non-controlling interests

   

43

   

43

Total equity and non-controlling interests

   

6,746

   

9,457

Total equity attributable to common shareholders

   

6,703

   

9,414

 

Non-GAAP Measures and Other Information

 

Title

 

The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.

 
 

Three Months Ended

   

Six Months Ended

(Dollars in millions)

June 30, 2022

June 30, 2021

   

June 30, 2022

June 30, 2021

Pre-tax earnings

$                   267

$                    644

   

$                   516

$               1,083

Non-GAAP adjustments before taxes

           

  Recognized (gains) and losses, net

249

30

   

424

89

  Purchase price amortization

13

14

   

26

28

Total non-GAAP adjustments

262

44

   

450

117

Adjusted pre-tax earnings

$                   529

$                    688

   

$                   966

$               1,200

Adjusted pre-tax margin

18.9 %

22.7 %

   

18.0 %

21.4 %

 

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)

 
   

Q2 2022

 

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Q3 2020

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

Total opened orders*

 

443

 

522

 

536

 

688

 

695

 

770

 

728

 

847

Total opened orders per day*

 

6.9

 

8.6

 

8.5

 

10.8

 

10.9

 

12.6

 

11.6

 

13.2

Purchase % of opened orders

 

75 %

 

62 %

 

53 %

 

50 %

 

53 %

 

42 %

 

38 %

 

40 %

Refinance % of opened orders

 

25 %

 

38 %

 

47 %

 

50 %

 

47 %

 

58 %

 

62 %

 

60 %

Total closed orders*

 

348

 

380

 

477

 

527

 

568

 

597

 

617

 

571

Total closed orders per day*

 

5.4

 

6.2

 

7.6

 

8.2

 

8.9

 

9.8

 

9.8

 

8.9

Purchase % of closed orders

 

71 %

 

55 %

 

51 %

 

50 %

 

47 %

 

34 %

 

38 %

 

42 %

Refinance % of closed orders

 

29 %

 

45 %

 

49 %

 

50 %

 

53 %

 

66 %

 

62 %

 

58 %

                                 

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

Total commercial revenue

 

$      436

 

$      374

 

$      546

 

$      366

 

$      347

 

$      257

 

$      322

 

$      216

Total commercial opened orders

 

64.2

 

66.1

 

64.5

 

66.8

 

69.4

 

62.2

 

57.0

 

58.1

Total commercial closed orders

 

39.7

 

37.4

 

46.1

 

40.1

 

42.3

 

34.8

 

39.5

 

30.6

                                 

National commercial revenue

 

$      220

 

$      196

 

$      313

 

$      183

 

$      176

 

$      127

 

$      177

 

$      113

National commercial opened orders

 

26.7

 

27.5

 

26.0

 

27.7

 

27.4

 

23.4

 

21.4

 

21.7

National commercial closed orders

 

15.3

 

14.6

 

18.1

 

14.8

 

14.9

 

11.2

 

13.4

 

9.8

                                 

Total Fee Per File

Fee per file

 

$   3,557

 

$   2,891

 

$   3,023

 

$   2,581

 

$   2,444

 

$   1,944

 

$   2,116

 

$   2,063

Residential fee per file

 

$   2,695

 

$   2,188

 

$   2,158

 

$   2,097

 

$   2,030

 

$   1,644

 

$   1,661

 

$   1,803

Total commercial fee per file

 

$ 11,000

 

$  10,000

 

$  11,800

 

$   9,100

 

$   8,200

 

$   7,400

 

$   8,200

 

$   7,100

National commercial fee per file

 

$ 14,400

 

$  13,400

 

$  17,300

 

$  12,400

 

$ 11,800

 

$  11,300

 

$  13,200

 

$  11,500

                                 

Total Staffing

Total field operations employees

 

12,700

 

13,400

 

13,600

 

13,700

 

13,500

 

13,200

 

12,800

 

12,300

                                 

Actual title claims paid ($ millions)

 

$       55

 

$        54

 

$        62

 

$        55

 

$       56

 

$        46

 

$        54

 

$        50

 

Title (continued)

 

FIDELITY NATIONAL FINANCIAL, INC.

MONTHLY TITLE ORDER STATISTICS

 
     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

 

 / (% Purchase)

April 2022

   

154,000

73 %

   

123,000

66 %

May 2022

   

148,000

75 %

   

114,000

72 %

June 2022

   

141,000

76 %

   

111,000

75 %

             

Second Quarter 2022

   

443,000

75 %

   

348,000

71 %

 

     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

   

 / (% Purchase)

April 2021

   

236,000

52 %

   

200,000

43 %

May 2021

   

223,000

52 %

   

176,000