FNF Reports Second Quarter 2023 Financial Results

August 8, 2023 at 4:17 PM EDT

JACKSONVILLE, Fla., Aug. 8, 2023 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE:FNF) ("FNF" or the "Company"), a leading provider of title insurance and transaction services to the real estate and mortgage industries and a leading provider of insurance solutions serving retail annuity and life customers and institutional clients through its majority-owned, publicly traded subsidiary F&G Annuities & Life, Inc. (NYSE:FG) ("F&G"), today reported financial results for the second quarter ended June 30, 2023.

Net earnings attributable to common shareholders for the second quarter of $219 million, or $0.81 per diluted share (per share), compared to $537 million, or $1.92 per share, for the second quarter of 2022.  Net earnings attributable to common shareholders for the second quarter of 2023 includes $7 million of net unfavorable mark-to-market effects and $48 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 $274 million, or $1.01 per share, compared to $557 million, or $2.00 per share, for the second quarter of 2022. The Title Segment contributed $226 million for the second quarter, compared to $418 million for the second quarter 2022.  The F&G Segment contributed $67 million for the second quarter, compared to $155 million for the second quarter 2022.  The Corporate Segment had adjusted net losses of $19 million for the second quarter, compared to adjusted net losses of $16 million for the second quarter of 2022. The results reflect Title's considerable decline in volumes as compared to the prior year given higher mortgage rates, partially offset by higher average fee per file.  In addition, F&G's adjusted net earnings include a significant income item that contributed $0.02 per share and was offset by alternative investment returns below our long-term expectations by $0.17 per share.  Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation.

Company Highlights

  • Solid Title Revenue:  For the Title Segment, total revenue of $1.9 billion, a 27% decrease from $2.6 billion in the second quarter of 2022. Total revenue, excluding recognized gains and losses, of $1.9 billion for the second quarter, which, although a 32% decrease from $2.8 billion in the second quarter of 2022, is more comparable with historical levels as seen in 2018 and 2019.
  • Steady F&G Segment gross sales and record assets under management:  For the F&G Segment, gross sales of $3.0 billion for the second quarter, a 3% decrease from $3.1 billion in the second quarter of 2022, reflecting higher retail channel sales offset by lower institutional market sales which we expect to be lumpier; record assets under management (AUM) of $46.3 billion as of June 30, 2023, driven by new business net of flow reinsurance, stable inforce retention and net debt proceeds.
  • Ample deployable capital in a challenging market:  FNF paid common dividends of $0.45 per share for $121 million in the second quarter. FNF ended the second quarter with $885 million in cash and short-term liquid investments at the holding company.             

William P. Foley, II, commented, "Our Title business delivered an industry leading adjusted pre-tax margin of 15.8% in the second quarter given the expense actions taken over the past year.  This is a great result in what has been a challenging environment.  F&G also performed well having generated $3.0 billion in gross sales as management successfully executes their diversified growth strategy.  Importantly, F&G ended the quarter with a record $46.3 billion in assets under management.  F&G continues to exceed all of our expectations and is becoming an important financial contributor to FNF's results."

Mr. Foley concluded, "While the long-term outlook for housing remains strong given household formation and underlying demographics in the U.S., the near term continues to be uncertain given the high level of interest rates which could persist for longer than expected.  As a result, we continue to focus on balance sheet strength having ended the quarter with $885 million in cash and short-term liquid investments which positions the Company for an uncertain environment.  Looking forward, we remain committed to our quarterly cash dividend though we have prudently moderated our share repurchase activity in order to preserve our financial flexibility."

Summary Financial Results

(In millions, except per share data)

Three Months Ended

Year to Date


June 30, 2023


June 30, 2022

2023


2022

Total revenue

$            3,068


$            2,635

$      5,542


$      5,802

F&G total gross sales1

$            3,008


$            3,073

$      6,289


$      5,662

F&G assets under management1

$          46,260


$          40,322

$    46,260


$    40,322

Total assets

$          73,021


$          61,012

$    73,021


$    61,012

Adjusted pre-tax title margin

15.8 %


18.9 %

13.2 %


18.0 %

Net earnings attributable to common shareholders

$               219


$               537

$         160


$         937

Net earnings per share attributable to common shareholders

$              0.81


$              1.92

$        0.59


$        3.33

Adjusted net earnings1

$               274


$               557

$         425


$         943

Adjusted net earnings per share1

$              1.01


$              2.00

$        1.57


$        3.36

Weighted average common diluted shares

271


279

271


281

Total common shares outstanding

272


277

272


277

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, "Our second quarter results are a clear testament of our ability to navigate through varying economic cycles and highlight the expertise of our field managers to reduce our expense structure as seen through 2022 and the first half of 2023.  Our Title business is performing very well and positioned for what could be a challenging second half of the year as mortgage rates remain elevated.  As we strive to maximize margins in a given market, we will also continue to manage our business for the long-term, providing protection for our policyholders and outstanding service to our customers."

Mr. Nolan added, "A clear benefit of our financial strength, scale, and profitability is our ability to invest in our business through cycles as we further expand our competitive positioning in the industry.  Our inHere platform is an area where we have been investing in recent years and is quickly gaining traction, having had over 1.4 million users on our platform over the last two years and nearly 90% of our 200,000 real estate professionals active in the last 30 days.  We continue to add functionality and content to our inHere platform as we work to drive further adoption and usage across the industry."

1 See definition of non-GAAP measures below

Second Quarter 2023 Highlights

  • Total revenue of $1.9 billion, compared with $2.6 billion in the second quarter of 2022
  • Total revenue, excluding recognized gains and losses, of $1.9 billion, a 32% decrease from second quarter of 2022
    • Direct title premiums of $541 million, a 37% decrease from second quarter of 2022
    • Agency title premiums of $713 million, a 41% decrease from second quarter of 2022
    • Commercial revenue of $263 million, a 40% decrease from second quarter of 2022
  • Purchase orders opened decreased 18% on a daily basis and purchase orders closed decreased 25% on a daily basis from the second quarter of 2022
  • Refinance orders opened decreased 36% on a daily basis and refinance orders closed decreased 56% on a daily basis from second quarter of 2022
  • Commercial orders opened decreased 22% and commercial orders closed decreased 30% from second quarter of 2022
  • Total fee per file of $3,598 for the second quarter, a 1% increase over second quarter of 2022
  • Notably, purchase orders opened increased 12% on a daily basis over the sequential first quarter of 2023 

Second Quarter 2023 Financial Results

  • Pre-tax title margin of 12.5% and industry leading adjusted pre-tax title margin of 15.8% for the second quarter of 2023, compared to 10.5% and 18.9%, respectively, in the second quarter of 2022
  • Pre-tax earnings from continuing operations in Title for the second quarter of $233 million, compared with $267 million for the second quarter of 2022
  • Adjusted pre-tax earnings in Title for the second quarter of $302 million compared with $529 million for the second 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, partially offset by higher average fee per file

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 of F&G, commented, "Our strong second quarter results demonstrate the success that we have achieved expanding our products and distribution channels and scaling our profitable inforce book of business.  Additionally, excluding significant items, we delivered adjusted return on assets above our 100 basis point target for the sixth quarter in a row, reflecting our expanding product margins and disciplined expense management as we invest and scale the business.  That said, the market has been slow to recognize our progress as our shares continue to trade meaningfully below intrinsic value.  As a result, we repurchased 790,000 shares for $16.4 million during the second quarter, under our $25 million share repurchase authorization."

Mr. Blunt concluded, "We have strong momentum as we head into the second half of the year, with many opportunities ahead of us to further expand our business as we continue to diversify into capital light, fee-based earnings streams which we believe will drive margin expansion and improved returns.  Additionally, our recent financial strength ratings upgrade to 'A3' by Moody's is not only a strong validation of our financial performance but will also be a tailwind to our institutional markets business over time.  I could not be more excited with what the future holds for our Company and employees."  

Second Quarter 2023

  • Gross sales: Gross sales of $3.0 billion for the second quarter, a 3% decrease from $3.1 billion in the second quarter of 2022, driven by higher retail channel sales offset by lower institutional market sales, which we expect to be lumpier and more opportunistic than our retail channels
  • Strong Retail channel sales of $2.3 billion for the first quarter, a 5% increase over $2.2 billion in the second quarter of 2022; reflects our fifth consecutive quarter of retail channel sales exceeding $2 billion and driven by continued strong consumer demand for high yielding products with principal protection
  • Solid Institutional market sales of $0.7 billion, comprised of $0.5 billion pension risk transfer and $0.2 billion funding agreements, compared to $0.9 billion in the second quarter of 2022, solely comprised of funding agreements; reflects a healthy pension risk transfer pipeline and opportunistic funding agreement issuance
  • Net sales of $2.2 billion for the second quarter, a decrease of 12% from $2.5 billion in the second quarter of 2022, reflecting our strategic usage of third party flow reinsurance which increased from 50% to 75% in September of 2022
  • Average assets under management (AAUM) on a year-to-date basis of $44.9 billion for the second quarter, an increase of 17% from $38.4 billion in the second quarter of 2022, driven by net new business flows and stable inforce retention.  Record ending assets under management were $46.3 billion as of June 30, 2023
  • Net earnings attributable to common shareholders for F&G Segment of $110 million for the second quarter due to favorable mark-to-market movement, compared to $385 million for the second quarter of 2022 which included favorable mark-to-market movement
  • Adjusted net earnings for F&G Segment of $67 million for the second quarter, compared to $155 million for the second quarter of 2022; F&G's adjusted net earnings reflect significant items and alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation.  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 second quarter 2023 results on Wednesday, August 9, 2023, beginning at 11:00 a.m. Eastern Time.  A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com.  The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com. The telephone replay will be available from 3:00 p.m. Eastern Time on August 9, 2023, through August 16, 2023, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13735003.

About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries.  FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States.  More information about FNF can be found at fnf.com

About F&G

F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this earnings release includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings per share, adjusted pre-tax title earnings, adjusted pre-tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), adjusted net earnings attributable to common shareholders (adjusted net earnings), assets under management (AUM), average assets under management (AAUM) and sales. 

Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods.  Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.

The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.  By disclosing these non-GAAP financial measures, FNF believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided below.

Forward-Looking Statements and Risk Factors

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business, political and COVID-19 conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission (SEC).

FNF-E

SOURCE:  Fidelity National Financial, Inc.; F&G Annuities & Life, Inc.


FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)



Consolidated


Title


F&G


Corporate and
Other

Three Months Ended





June 30, 2023





Direct title premiums


$            541


$            541


$             —


$                  —

Agency title premiums


713


713



Escrow, title related and other fees


1,212


581


576


55

Total title and escrow


2,466


1,835


576


55










Interest and investment income


618


79


525


14

Recognized gains and losses, net


(16)


(50)


67


(33)

Total revenue


3,068


1,864


1,168


36










Personnel costs


755


656


56


43

Agent commissions


550


550



Other operating expenses


394


330


33


31

Benefits & other policy reserve changes


817



817


Market risk benefit (gains) losses


(30)



(30)


Depreciation and amortization


151


39


104


8

Provision for title claim losses


56


56



Interest expense


43



25


18

Total expenses


2,736


1,631


1,005


100










Pre-tax earnings (loss) from continuing operations


$            332


$            233


$           163


$                (64)










  Income tax expense (benefit)


90


65


33


(8)

  Earnings (loss) from equity investments


1


1



  Non-controlling interests


24


4


20











Net earnings (loss) attributable to common shareholders


$            219


$            165


$           110


$                (56)










EPS attributable to common shareholders - basic


$          0.81
















EPS attributable to common shareholders - diluted


$          0.81
















Weighted average shares - basic


270







Weighted average shares - diluted


271







 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)



Consolidated


Title


F&G


Corporate and
Other

Three Months Ended





June 30, 2023





Net earnings (loss) attributable to common shareholders


$                219


$                165


$           110


$                (56)










Pre-tax earnings (loss) from continuing operations


$                332


$                233


$           163


$                (64)










 Non-GAAP Adjustments









  Recognized (gains) and losses, net


113


50


30


33

  Market related liability adjustments


(102)



(102)


  Purchase price amortization


28


19


6


3

  Transaction costs


2




2










Adjusted pre-tax earnings (loss)


$                373


$                302


$             97


$                (26)










Total non-GAAP, pre-tax adjustments


$                  41


$                  69


$           (66)


$                  38

  Income taxes on non-GAAP adjustments


(11)


(17)


15


(9)

  Non-controlling interest on non-GAAP adjustments


8



8


  Deferred tax asset valuation allowance


17


9



8

Total non-GAAP adjustments


$                  55


$                  61


$           (43)


$                  37










Adjusted net earnings (loss) attributable to common shareholders


$                274


$                226


$             67


$                (19)










Adjusted EPS attributable to common shareholders - diluted


$               1.01







 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(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


786


706


71


9

Total title and escrow


2,848


2,768


71


9










Interest and investment income


463


35


425


3

Recognized gains and losses, net


(676)


(249)


(426)


(1)

Total revenue


2,635


2,554


70


11










Personnel costs


839


821


34


(16)

Agent commissions


930


930



Other operating expenses


457


409


31


17

Benefits & other policy reserve changes


(377)



(377)


Market risk benefit (gains) losses


(189)



(189)


Depreciation and amortization


120


34


80


6

Provision for title claim losses


93


93



Interest expense


31



9


22

Total expenses


1,904


2,287


(412)


29










Pre-tax earnings (loss)


$            731


$            267


$           482


$                (18)










  Income tax expense (benefit)


202


111


97


(6)

  Earnings from equity investments


14


14



  Non-controlling interests


6


6












Net earnings (loss) attributable to common shareholders


$            537


$            164


$           385


$                (12)










EPS attributable to common shareholders - basic


$          1.93
















EPS attributable to common shareholders - diluted


$          1.92
















Weighted average shares - basic


278







Weighted average shares - diluted


279







 

FIDELITY NATIONAL FINANCIAL, INC.

SECOND QUARTER SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)



Consolidated


Title


F&G


Corporate and
Other

Three Months Ended





June 30, 2022





Net earnings (loss) attributable to common shareholders


$                537


$                164


$                385


$                (12)










Pre-tax earnings (loss) from continuing operations


731


267


482


(18)










Non-GAAP Adjustments









  Recognized (gains) and losses, net


273


249


23


1

  Market related liability adjustments


(324)



(324)


  Purchase price amortization


21


13


5


3

  Transaction costs


(5)



4


(9)










Adjusted pre-tax earnings (loss)


$                696


$                529


$                190


$                (23)










Total non-GAAP, pre-tax adjustments


$                (35)


$                262


$              (292)


$                   (5)

  Income taxes on non-GAAP adjustments



(63)


62


1

  Deferred tax asset valuation allowance


55


55



Total non-GAAP adjustments


$                  20


$                254


$              (230)


$                   (4)










Adjusted net earnings (loss) attributable to common shareholders


$                557


$                418


$                155


$                (16)










Adjusted EPS attributable to common shareholders - diluted


$               2.00







 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)



Consolidated


Title


F&G


Corporate and
Other

Six Months Ended





June 30, 2023





Direct title premiums


$            969


$            969


$          —


$               —

Agency title premiums


1,263


1,263



Escrow, title related and other fees


2,092


1,052


941


99

Total title and escrow


4,324


3,284


941


99










Interest and investment income


1,229


160


1,044


25

Recognized gains and losses, net


(11)


(28)


52


(35)

Total revenue


5,542


3,416


2,037


89










Personnel costs


1,432


1,254


109


69

Agent commissions


970


970



Other operating expenses


754


626


69


59

Benefits & other policy reserve changes


1,629



1,629


Market risk benefit (gains) losses


29



29


Depreciation and amortization


285


76


194


15

Provision for title claim losses


100


100



Interest expense


85



47


38

Total expenses


5,284


3,026


2,077


181










Pre-tax earnings (loss) from continuing operations


$            258


$            390


$        (40)


$             (92)










  Income tax expense (benefit)


104


92


25


(13)

  Earnings (loss) from equity investments


1


1



  Non-controlling interests


(5)


6


(11)











Net earnings (loss) attributable to common shareholders


$            160


$            293


$        (54)


$             (79)










EPS attributable to common shareholders - basic


$          0.59
















EPS attributable to common shareholders - diluted


$          0.59
















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

Six Months Ended





June 30, 2023





Net earnings (loss) attributable to common shareholders


$                160


$                293


$           (54)


$                (79)










Pre-tax earnings (loss) from continuing operations


$                258


$                390


$           (40)


$                (92)










Non-GAAP Adjustments









  Recognized (gains) and losses, net


167


28


104


35

  Market related liability adjustments


142



142


  Purchase price amortization


55


37


11


7

  Transaction costs


7



2


5










Adjusted pre-tax earnings (loss)


$                629


$                455


$           219


$                (45)










Total non-GAAP, pre-tax adjustments


$                371


$                  65


$           259


$                  47

  Income taxes on non-GAAP adjustments


(81)


(16)


(54)


(11)

  Deferred tax asset valuation allowance


7


(1)



8

  Non-controlling interest on non-GAAP adjustments


(32)



(32)


Total non-GAAP adjustments


$                265


$                  48


$           173


$                  44










Adjusted net earnings (loss) attributable to common shareholders


$                425


$                341


$           119


$                (35)










Adjusted EPS attributable to common shareholders - diluted


$               1.57







 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)







F&G



Six Months Ended


Consolidated


Title



Corporate and
Other

June 30, 2022





Direct title premiums


$        1,626


$        1,626


$                  —


$                  —

Agency title premiums


2,302


2,302



Escrow, title related and other fees 


2,078


1,371


667


40

Total title and escrow


6,006


5,299


667


40










Interest and investment income


941


62


876


3

Recognized gains and losses, net


(1,145)


(424)


(723)


2

Total revenue


5,802


4,937


820


45










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


(174)



(174)


Market risk benefit (gains) losses


(119)



(119)


Depreciation and amortization


235


67


156


12

Provision for title claim losses


177


177



Interest expense


61



17


44

Total expenses


4,515


4,421


(7)


101










Pre-tax earnings (loss) from continuing operations


$        1,287


$            516


$                827


$                (56)










  Income tax expense (benefit)


358


168


203


(13)

  Earnings from equity investments


16


16



  Non-controlling interests


8


9



(1)










Net earnings (loss) attributable to common shareholders


$            937


$            355


$                624


$                (42)










EPS attributable to common shareholders - basic


$          3.36







EPS attributable to common shareholders - diluted


$          3.33
















Weighted average shares - basic


279







Weighted average shares - diluted


281







 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except per share data)

(Unaudited)



Consolidated


Title


F&G


Corporate and
Other

Six Months Ended





June 30, 2022





Net earnings (loss) attributable to common shareholders


$                937


$                355


$           624


$                (42)










Pre-tax earnings (loss) from continuing operations


1,287


516


827


(56)










Non-GAAP Adjustments









  Recognized (gains) and losses, net


428


424


6


(2)

  Market related liability adjustments


(514)



(514)


  Purchase price amortization


44


26


11


7

  Transaction costs


(3)



4


(7)










Adjusted pre-tax earnings (loss)


$             1,242


$                966


$           334


$                (58)










Total non-GAAP, pre-tax adjustments


$                (45)


$                450


$         (493)


$                   (2)

  Income taxes on non-GAAP adjustments


(4)


(108)


104


  Deferred tax asset valuation allowance


55


55



  Non-controlling interest on non-GAAP adjustments





Total non-GAAP adjustments


$                    6


$                397


$         (389)


$                   (2)










Adjusted net earnings (loss) attributable to common shareholders


$                943


$                752


$           235


$                (44)










Adjusted EPS attributable to common shareholders - diluted


$               3.36







 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)




June 30,
2023


December 31,
2022



(Unaudited)


(Unaudited)

Cash and investment portfolio



$         53,065



$         47,656

Goodwill



4,811



4,635

Title plant



417



416

Total assets



73,021



65,143

Notes payable



3,696



3,238

Reserve for title claim losses



1,781



1,810

Secured trust deposits



886



862

Accumulated other comprehensive (loss) earnings



(2,681)



(2,870)

Non-controlling interests



448



453

Total equity and non-controlling interests



6,677



6,569

Total equity attributable to common shareholders



6,229



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



Six Months Ended

(Dollars in millions)

June 30, 2023

June 30, 2022



June 30, 2023

June 30, 2022

Pre-tax earnings

$                   233

$                    267



$                   390

$                   516

Non-GAAP adjustments before taxes







  Recognized (gains) and losses, net

50

249



28

424

  Purchase price amortization

19

13



37

26

Total non-GAAP adjustments

69

262



65

450

Adjusted pre-tax earnings

$                   302

$                    529



$                   455

$                   966

Adjusted pre-tax margin

15.8 %

18.9 %



13.2 %

18.0 %

 

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)




Q2 2023


Q1 2023


Q4 2022


Q3 2022


Q2 2022


Q1 2022


Q4 2021


Q3 2021

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

Total opened orders*


347


308


266


363


443


522


536


688

Total opened orders per day*


5.4


5.0


4.3


5.7


6.9


8.6


8.5


10.8

Purchase % of opened orders


79 %


78 %


76 %


76 %


75 %


62 %


53 %


50 %

Refinance % of opened orders


21 %


22 %


24 %


24 %


25 %


38 %


47 %


50 %

Total closed orders*


233


188


216


278


348


380


477


527

Total closed orders per day*


3.6


3.0


3.5


4.3


5.4


6.2


7.6


8.2

Purchase % of closed orders


81 %


78 %


76 %


76 %


71 %


55 %


51 %


50 %

Refinance % of closed orders


19 %


22 %


24 %


24 %


29 %


45 %


49 %


50 %


















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

Total commercial revenue


$      263


$      241


$      344


$      381


$      436


$      374


$      546


$      366

Total commercial opened orders


50.2


48.5


44.9


54.8


64.2


66.1


64.5


66.8

Total commercial closed orders


27.7


24.7


30.5


35.2


39.7


37.4


46.1


40.1


















National commercial revenue


$      128


$      118


$      173


$      191


$      220


$      196


$      313


$      183

National commercial opened orders


19.3


18.5


17.8


22.1


26.7


27.5


26.0


27.7

National commercial closed orders


9.9


8.5


11.9


14.0


15.3


14.6


18.1


14.8


















Total Fee Per File

Fee per file


$   3,598


$   3,446


$   3,649


$   3,621


$   3,557


$   2,891


$   3,023


$   2,581

Residential fee per file


$   2,897


$   2,601


$   2,542


$   2,697


$   2,695


$   2,188


$   2,158


$   2,097

Total commercial fee per file


$   9,500


$   9,800


$  11,300


$  10,800


$ 11,000


$  10,000


$  11,800


$   9,100

National commercial fee per file


$ 12,900


$  13,900


$  14,600


$  13,600


$ 14,400


$  13,400


$  17,300


$  12,400


















Total Staffing

Total field operations employees


10,600


10,400


10,700


12,000


12,700


13,400


13,600


13,700


















Actual title claims paid ($ millions)


$       67


$        62


$        79


$        65


$       55


$        54


$        62


$        55

 

Title Segment (continued)


FIDELITY NATIONAL FINANCIAL, INC.

MONTHLY TITLE ORDER STATISTICS





Direct Orders Opened *



Direct Orders Closed *

Month


 / (% Purchase)


 / (% Purchase)

April 2023 



106,000

80 %



70,000

80 %

May 2023 



125,000

79 %



81,000

81 %

June 2023 



116,000

79 %



82,000

81 %








Second Quarter 2023



347,000

79 %



233,000

81 %











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 %

* 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


Six Months Ended

(Dollars in millions)

June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022

Net (loss) earnings attributable to common shareholders

$                 110


$                 385


$               (54)


$                 624

Non-GAAP adjustments(1):








Recognized (gains) losses, net

30


23


104


6

Market related liability adjustments

(102)


(324)


142


(514)

Purchase price amortization

6


5


11


11

Transaction costs