FNF Reports Third Quarter 2021 Diluted EPS from Continuing Operations of $2.58 and Adjusted Diluted EPS from Continuing Operations of $2.12, Pre-Tax Title Margin of 16.6% and Adjusted Pre-Tax Title Margin of 21.7%
- Total revenue of
$3.9 billion in the third quarter versus$3.0 billion in the third quarter of 2020 - Third quarter net earnings from continuing operations of
$735 million and adjusted net earnings from continuing operations of$604 million versus net earnings from continuing operations of$406 million and adjusted net earnings of$435 million for the third quarter of 2020 - Third quarter diluted EPS from continuing operations of
$2.58 and adjusted diluted EPS from continuing operations of$2.12 versus diluted EPS from continuing operations of$1.39 and adjusted diluted EPS from continuing operations of$1.48 in the third quarter of 2020 - Recognized losses were
$154 million in the third quarter versus recognized gains of$73 million in the third quarter of 2020 primarily due to mark to market accounting treatment of equity and preferred stock securities whether the securities were disposed of in the quarter or continue to be held in our investment portfolio
Title
- Total revenue of
$2.9 billion versus$2.5 billion in total revenue in the third quarter of 2020 - Total revenue, excluding recognized gains and losses, of
$3.1 billion versus$2.5 billion in the third quarter of 2020, an increase of 24% - Pre-tax earnings of
$486 million and adjusted pre-tax earnings of$669 million versus pre-tax earnings of$507 million and adjusted pre-tax earnings of$528 million in the third quarter of 2020 - Pre-tax title margin of 16.6% and adjusted pre-tax title margin of 21.7% versus pre-tax title margin of 20.4% and adjusted pre-tax title margin of 21.2% in the third quarter of 2020
- Third quarter purchase orders opened increased 1% on a daily basis and purchase orders closed increased 9% on a daily basis versus the third quarter of 2020; refinance orders opened decreased 33% on a daily basis and refinance orders closed decreased 21% on a daily basis versus the third quarter of 2020
- Total commercial revenue of
$366 million , a 69% increase versus total commercial revenue in the third quarter of 2020, driven by a 31% increase in closed orders; third quarter total commercial orders opened increased 15% compared to the prior year - Overall third quarter average fee per file of
$2,581 , a 25% increase versus the third quarter of 2020
Title Orders
Direct Orders Opened * |
Direct Orders Closed * |
|||||||
Month |
/ (% Purchase) |
/ (% Purchase) |
||||||
|
230,000 |
50% |
171,000 |
52% |
||||
|
242,000 |
49% |
181,000 |
48% |
||||
|
216,000 |
50% |
175,000 |
49% |
||||
Third Quarter 2021 |
688,000 |
50% |
527,000 |
50% |
||||
Direct Orders Opened * |
Direct Orders Closed * |
|||||||
Month |
/ (% Purchase) |
/ (% Purchase) |
||||||
|
292,000 |
40% |
187,000 |
43% |
||||
|
283,000 |
40% |
186,000 |
42% |
||||
|
272,000 |
40% |
198,000 |
40% |
||||
Third Quarter 2020 |
847,000 |
40% |
571,000 |
42% |
||||
* Includes an immaterial number of non-purchase and non-refinance orders |
F&G
F&G, a leading provider of annuities and life insurance, reported operating results for the third quarter of 2021. As a result of acquisition accounting (purchase accounting or PGAAP), financial results for periods after
- Total Sales of
$3.1 billion in the third quarter, an increase of 171% to the prior year, and an increase of 15% from the record sequential quarter - Total Retail Annuity Sales of
$1.5 billion in the third quarter, an increase of 43% to the prior year, and a decrease of 7% from the record sequential quarter. Fixed Indexed Annuities (FIA) Sales of$1.1 billion in the third quarter, an increase of 32% to the prior year, and a decrease of 5% from the record sequential quarter - Institutional market sales of
$1.5 billion in the third quarter and$2.6 billion year to date, including funding agreement-backed note issuances of$1.2 billion in the third quarter and total funding agreements of$2.3 billion year to date. In addition, F&G has closed$371 million of pension risk transfer transactions in the third quarter and secured an additional$564 million of pension risk transfer transactions inOctober 2021 - Average Assets Under Management (AAUM) of
$32.7 billion for the third quarter, up 7% from$30.4 billion in the sequential period driven by net new business asset flows - Net Investment Spread: FIA spread for the third quarter of 335 basis points; Total Spread, including all product lines, for the third quarter of 285 basis points
- Net Earnings Attributable to Common Shareholders of
$373 million for the third quarter, including a$224 million one-time favorable adjustment from an actuarial system conversion which reflects modeling enhancement and other refinements,$57 million net favorable mark-to-market effects,$3 million loss from discontinued operations, and$6 of million other unfavorable items; all of which are excluded from Adjusted Net Earnings - Adjusted Net Earnings From Continuing Operations Attributable to Common Shareholders of
$101 million for the third quarter, including$27 million of net favorable notable items
Looking at our Title results, we delivered adjusted pre-tax title earnings of
Turning to F&G, we are making great strides on our diversified growth strategy. The new Institutional channel is on track to achieve
Conference Call
We will host a call with investors and analysts to discuss third quarter 2021 FNF results on Wednesday, November 3, 2021, beginning at
About
About F&G
F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of annuity and life insurance products and is headquartered in
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, FNF has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings, adjusted 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), F&G adjusted net earnings, F&G adjusted net earnings attributable to common shareholders, F&G net investment spread, F&G average assets under management and F&G sales.
Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.
Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: the ability of FNF to successfully integrate F&G's operations and employees; 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
FNF-E
THIRD QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and Other |
|||||||||||||
Three Months Ended |
||||||||||||||||
|
||||||||||||||||
Direct title premiums |
$ |
896 |
$ |
896 |
$ |
— |
$ |
— |
||||||||
Agency title premiums |
1,318 |
1,318 |
— |
— |
||||||||||||
Escrow, title related and other fees |
1,324 |
849 |
431 |
44 |
||||||||||||
Total title and escrow |
3,538 |
3,063 |
431 |
44 |
||||||||||||
Interest and investment income |
508 |
27 |
481 |
— |
||||||||||||
Recognized gains and losses, net |
(154) |
(169) |
15 |
— |
||||||||||||
Total revenue |
3,892 |
2,921 |
927 |
44 |
||||||||||||
Personnel costs |
894 |
838 |
32 |
24 |
||||||||||||
Agent commissions |
1,010 |
1,010 |
— |
— |
||||||||||||
Other operating expenses |
498 |
451 |
22 |
25 |
||||||||||||
Benefits & other policy reserve changes |
185 |
— |
185 |
— |
||||||||||||
Depreciation and amortization |
252 |
36 |
210 |
6 |
||||||||||||
Claim loss expense |
100 |
100 |
— |
— |
||||||||||||
Interest expense |
27 |
— |
6 |
21 |
||||||||||||
Total expenses |
2,966 |
2,435 |
455 |
76 |
||||||||||||
Pre-tax earnings (loss) from continuing operations |
$ |
926 |
$ |
486 |
$ |
472 |
$ |
(32) |
||||||||
Income tax expense (benefit) |
213 |
126 |
96 |
(9) |
||||||||||||
Earnings (loss) from equity investments |
27 |
26 |
— |
1 |
||||||||||||
Earnings (loss) from discontinued operations, net of tax |
(3) |
— |
(3) |
— |
||||||||||||
Non-controlling interests |
5 |
4 |
— |
1 |
||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
732 |
$ |
382 |
$ |
373 |
$ |
(23) |
||||||||
EPS from continuing operations attributable to common shareholders - basic |
$ |
2.60 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - basic |
(0.01) |
|||||||||||||||
EPS attributable to common shareholders - basic |
$ |
2.59 |
||||||||||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ |
2.58 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - diluted |
(0.01) |
|||||||||||||||
EPS attributable to common shareholders - diluted |
$ |
2.57 |
||||||||||||||
Weighted average shares - basic |
283 |
|||||||||||||||
Weighted average shares - diluted |
285 |
THIRD QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||||||||||
Three Months Ended |
||||||||||||||||
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
732 |
$ |
382 |
$ |
373 |
$ |
(23) |
||||||||
Loss from discontinued operations, net of tax |
(3) |
— |
(3) |
— |
||||||||||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ |
735 |
$ |
382 |
$ |
376 |
$ |
(23) |
||||||||
Pre-tax earnings (loss) from continuing operations |
$ |
926 |
$ |
486 |
$ |
472 |
$ |
(32) |
||||||||
Non-GAAP Adjustments |
||||||||||||||||
Recognized (gains) and losses, net |
71 |
169 |
(98) |
— |
||||||||||||
Indexed product related derivatives |
26 |
— |
26 |
— |
||||||||||||
Purchase price amortization |
25 |
14 |
7 |
4 |
||||||||||||
Transaction costs |
3 |
— |
1 |
2 |
||||||||||||
Other non-recurring items(1) |
(284) |
— |
(284) |
— |
||||||||||||
Adjusted pre-tax earnings (loss) |
$ |
767 |
$ |
669 |
$ |
124 |
$ |
(26) |
||||||||
Total non-GAAP, pre-tax adjustments |
$ |
(159) |
$ |
183 |
$ |
(348) |
$ |
6 |
||||||||
Income taxes on non-GAAP adjustments |
28 |
(44) |
73 |
(1) |
||||||||||||
Total non-GAAP adjustments |
$ |
(131) |
$ |
139 |
$ |
(275) |
$ |
5 |
||||||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ |
604 |
$ |
521 |
$ |
101 |
$ |
(18) |
||||||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
2.12 |
|||||||||||||||
(1) See F&G Non-GAAP Measures and Other Information |
THIRD QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||||||||||
Three Months Ended |
||||||||||||||||
|
||||||||||||||||
Direct title premiums |
$ |
733 |
$ |
733 |
$ |
— |
$ |
— |
||||||||
Agency title premiums |
981 |
981 |
— |
— |
||||||||||||
Escrow, title related and other fees |
853 |
742 |
60 |
51 |
||||||||||||
Total title and escrow |
2,567 |
2,456 |
60 |
51 |
||||||||||||
Interest and investment income |
336 |
31 |
305 |
— |
||||||||||||
Recognized gains and losses, net |
73 |
(3) |
77 |
(1) |
||||||||||||
Total revenue |
2,976 |
2,484 |
442 |
50 |
||||||||||||
Personnel costs |
782 |
726 |
23 |
33 |
||||||||||||
Agent commissions |
749 |
749 |
— |
— |
||||||||||||
Other operating expenses |
449 |
386 |
33 |
30 |
||||||||||||
Benefits & other policy reserve changes |
251 |
— |
251 |
— |
||||||||||||
Depreciation and amortization |
100 |
39 |
56 |
5 |
||||||||||||
Claim loss expense |
77 |
77 |
— |
— |
||||||||||||
Interest expense |
29 |
— |
7 |
22 |
||||||||||||
Total expenses |
2,437 |
1,977 |
370 |
90 |
||||||||||||
Pre-tax earnings (loss) |
$ |
539 |
$ |
507 |
$ |
72 |
$ |
(40) |
||||||||
Income tax expense (benefit) |
133 |
129 |
6 |
(2) |
||||||||||||
Earnings from equity investments |
7 |
5 |
— |
2 |
||||||||||||
Earnings (loss) from discontinued operations, net of tax |
(28) |
— |
(28) |
— |
||||||||||||
Non-controlling interests |
7 |
7 |
— |
— |
||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
378 |
$ |
376 |
$ |
38 |
$ |
(36) |
||||||||
EPS from continuing operations attributable to common shareholders - basic |
$ |
1.40 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - basic |
$ |
(0.10) |
||||||||||||||
EPS attributable to common shareholders - basic |
$ |
1.30 |
||||||||||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ |
1.39 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - diluted |
$ |
(0.10) |
||||||||||||||
EPS attributable to common shareholders - diluted |
$ |
1.29 |
||||||||||||||
Weighted average shares - basic |
291 |
|||||||||||||||
Weighted average shares - diluted |
293 |
THIRD QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||||||||||
Three Months Ended |
||||||||||||||||
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
378 |
$ |
376 |
$ |
38 |
$ |
(36) |
||||||||
Loss from discontinued operations, net of tax |
$ |
(28) |
$ |
— |
$ |
(28) |
$ |
— |
||||||||
Net earnings (loss) from continuing operations, attributable to common shareholders |
$ |
406 |
$ |
376 |
$ |
66 |
$ |
(36) |
||||||||
Pre-tax earnings (loss) from continuing operations |
539 |
507 |
72 |
(40) |
||||||||||||
Non-GAAP Adjustments |
||||||||||||||||
Recognized (gains) and losses, net |
(11) |
3 |
(15) |
1 |
||||||||||||
Indexed product related derivatives |
14 |
— |
14 |
— |
||||||||||||
Debt issuance costs |
1 |
— |
— |
1 |
||||||||||||
Purchase price amortization |
29 |
18 |
7 |
4 |
||||||||||||
Transaction costs |
12 |
— |
10 |
2 |
||||||||||||
Adjusted pre-tax earnings (loss) |
$ |
584 |
$ |
528 |
$ |
88 |
$ |
(32) |
||||||||
Total non-GAAP, pre-tax adjustments |
$ |
45 |
$ |
21 |
$ |
16 |
$ |
8 |
||||||||
Income taxes on non-GAAP adjustments |
(15) |
(5) |
(8) |
(2) |
||||||||||||
Non-controlling interest on non-GAAP adjustments |
(1) |
(1) |
— |
— |
||||||||||||
Total non-GAAP adjustments |
$ |
29 |
$ |
15 |
$ |
8 |
$ |
6 |
||||||||
Adjusted net earnings attributable to common shareholders |
$ |
435 |
$ |
391 |
$ |
74 |
$ |
(30) |
||||||||
Adjusted EPS attributable to common shareholders - diluted |
$ |
1.48 |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||||||||||
Nine Months Ended |
||||||||||||||||
|
||||||||||||||||
Direct title premiums |
$ |
2,546 |
$ |
2,546 |
$ |
— |
$ |
— |
||||||||
Agency title premiums |
3,632 |
3,632 |
— |
— |
||||||||||||
Escrow, title related and other fees |
3,123 |
2,433 |
557 |
133 |
||||||||||||
Total title and escrow |
9,301 |
8,611 |
557 |
133 |
||||||||||||
Interest and investment income |
1,424 |
83 |
1,341 |
— |
||||||||||||
Recognized gains and losses, net |
121 |
(258) |
370 |
9 |
||||||||||||
Total revenue |
10,846 |
8,436 |
2,268 |
142 |
||||||||||||
Personnel costs |
2,596 |
2,418 |
93 |
85 |
||||||||||||
Agent commissions |
2,787 |
2,787 |
— |
— |
||||||||||||
Other operating expenses |
1,432 |
1,281 |
76 |
75 |
||||||||||||
Benefits & other policy reserve changes |
734 |
— |
734 |
— |
||||||||||||
Depreciation and amortization |
540 |
103 |
419 |
18 |
||||||||||||
Claim loss expense |
278 |
278 |
— |
— |
||||||||||||
Interest expense |
83 |
— |
21 |
62 |
||||||||||||
Total expenses |
8,450 |
6,867 |
1,343 |
240 |
||||||||||||
Pre-tax earnings (loss) from continuing operations |
$ |
2,396 |
$ |
1,569 |
$ |
925 |
$ |
(98) |
||||||||
Income tax expense (benefit) |
555 |
389 |
189 |
(23) |
||||||||||||
Earnings (loss) from equity investments |
54 |
48 |
— |
6 |
||||||||||||
Earnings from discontinued operations, net of tax |
8 |
— |
8 |
— |
||||||||||||
Non-controlling interests |
14 |
13 |
— |
1 |
||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
1,889 |
$ |
1,215 |
$ |
744 |
$ |
(70) |
||||||||
EPS from continuing operations attributable to common shareholders - basic |
$ |
6.57 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - basic |
0.03 |
|||||||||||||||
EPS attributable to common shareholders - basic |
$ |
6.60 |
||||||||||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ |
6.53 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - diluted |
0.03 |
|||||||||||||||
EPS attributable to common shareholders - diluted |
$ |
6.56 |
||||||||||||||
Weighted average shares - basic |
286 |
|||||||||||||||
Weighted average shares - diluted |
288 |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and |
|||||||||||||
Nine Months Ended |
||||||||||||||||
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
1,889 |
$ |
1,215 |
$ |
744 |
$ |
(70) |
||||||||
Earnings from discontinued operations, net of tax |
8 |
— |
8 |
— |
||||||||||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ |
1,881 |
$ |
1,215 |
$ |
736 |
$ |
(70) |
||||||||
Pre-tax earnings (loss) from continuing operations |
$ |
2,396 |
$ |
1,569 |
$ |
925 |
$ |
(98) |
||||||||
Non-GAAP Adjustments |
||||||||||||||||
Recognized (gains) and losses, net |
6 |
258 |
(243) |
(9) |
||||||||||||
Indexed product related derivatives |
(84) |
— |
(84) |
— |
||||||||||||
Purchase price amortization |
74 |
42 |
20 |
12 |
||||||||||||
Transaction costs |
13 |
— |
5 |
8 |
||||||||||||
Other non-recurring items(1) |
(284) |
— |
(284) |
— |
||||||||||||
Adjusted pre-tax earnings (loss) |
$ |
2,121 |
$ |
1,869 |
$ |
339 |
$ |
(87) |
||||||||
Total non-GAAP, pre-tax adjustments |
$ |
(275) |
$ |
300 |
$ |
(586) |
$ |
11 |
||||||||
Income taxes on non-GAAP adjustments |
47 |
(72) |
121 |
(2) |
||||||||||||
Non-controlling interest on non-GAAP adjustments |
(1) |
— |
— |
(1) |
||||||||||||
Total non-GAAP adjustments |
$ |
(229) |
$ |
228 |
$ |
(465) |
$ |
8 |
||||||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ |
1,652 |
$ |
1,443 |
$ |
271 |
$ |
(62) |
||||||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
$ |
5.74 |
||||||||||||||
(1) See F&G Non-GAAP Measures and Other Information |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
F&G |
||||||||||||||||
Nine Months Ended |
Consolidated |
Title |
Corporate and |
|||||||||||||
|
||||||||||||||||
Direct title premiums |
$ |
1,854 |
$ |
1,854 |
$ |
— |
$ |
— |
||||||||
Agency title premiums |
2,497 |
2,497 |
— |
— |
||||||||||||
Escrow, title related and other fees |
2,201 |
2,007 |
80 |
114 |
||||||||||||
Total title and escrow |
6,552 |
6,358 |
80 |
114 |
||||||||||||
Interest and investment income |
541 |
120 |
416 |
5 |
||||||||||||
Recognized gains and losses, net |
(85) |
(147) |
70 |
(8) |
||||||||||||
Total revenue |
7,008 |
6,331 |
566 |
111 |
||||||||||||
Personnel costs |
2,088 |
1,992 |
32 |
64 |
||||||||||||
Agent commissions |
1,907 |
1,907 |
— |
— |
||||||||||||
Other operating expenses |
1,306 |
1,140 |
45 |
121 |
||||||||||||
Benefits & other policy reserve changes |
406 |
— |
406 |
— |
||||||||||||
Depreciation and amortization |
189 |
113 |
59 |
17 |
||||||||||||
Claim loss expense |
196 |
196 |
— |
— |
||||||||||||
Interest expense |
62 |
1 |
10 |
51 |
||||||||||||
Total expenses |
6,154 |
5,349 |
552 |
253 |
||||||||||||
Pre-tax earnings (loss) from continuing operations |
$ |
854 |
$ |
982 |
$ |
14 |
$ |
(142) |
||||||||
Income tax expense (benefit) |
194 |
240 |
(8) |
(38) |
||||||||||||
Earnings from equity investments |
9 |
8 |
— |
1 |
||||||||||||
Earnings (loss) from discontinued operations, net of tax |
(23) |
— |
(23) |
— |
||||||||||||
Non-controlling interests |
20 |
20 |
— |
— |
||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
626 |
$ |
730 |
$ |
(1) |
$ |
(103) |
||||||||
EPS from continuing operations attributable to common shareholders - basic |
$ |
2.32 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - basic |
$ |
(0.08) |
||||||||||||||
EPS attributable to common shareholders - basic |
$ |
2.24 |
||||||||||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ |
2.29 |
||||||||||||||
EPS from discontinued operations attributable to common shareholders - diluted |
$ |
(0.08) |
||||||||||||||
EPS attributable to common shareholders - diluted |
$ |
2.21 |
||||||||||||||
Weighted average shares - basic |
280 |
|||||||||||||||
Weighted average shares - diluted |
283 |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||||||||||
Consolidated |
Title |
F&G |
Corporate and Other |
|||||||||||||
Nine Months Ended |
||||||||||||||||
|
||||||||||||||||
Net earnings (loss) attributable to common shareholders |
$ |
626 |
$ |
730 |
$ |
(1) |
$ |
(103) |
||||||||
Loss from discontinued operations, net of tax |
(23) |
— |
(23) |
— |
||||||||||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ |
649 |
$ |
730 |
$ |
22 |
$ |
(103) |
||||||||
Pre-tax earnings (loss) from continuing operations |
854 |
982 |
14 |
(142) |
||||||||||||
Non-GAAP Adjustments |
||||||||||||||||
Recognized (gains) and losses, net |
186 |
147 |
31 |
8 |
||||||||||||
Indexed product related derivatives |
57 |
— |
57 |
— |
||||||||||||
Debt issuance costs |
5 |
— |
— |
5 |
||||||||||||
Purchase price amortization |
77 |
55 |
9 |
13 |
||||||||||||
Transaction costs |
63 |
— |
17 |
46 |
||||||||||||
Other adjustments |
1 |
1 |
— |
— |
||||||||||||
Adjusted pre-tax earnings (loss) |
$ |
1,243 |
$ |
1,185 |
$ |
128 |
$ |
(70) |
||||||||
Total non-GAAP, pre-tax adjustments |
$ |
389 |
$ |
203 |
$ |
114 |
$ |
72 |
||||||||
Income taxes on non-GAAP adjustments |
(93) |
(47) |
(29) |
(17) |
||||||||||||
Non-controlling interest on non-GAAP adjustments |
(7) |
(6) |
— |
(1) |
||||||||||||
Total non-GAAP adjustments |
$ |
289 |
$ |
150 |
$ |
85 |
$ |
54 |
||||||||
Adjusted net earnings (loss) attributable to common shareholders |
$ |
938 |
$ |
880 |
$ |
107 |
$ |
(49) |
||||||||
Adjusted EPS attributable to common shareholders - diluted |
$ |
3.31 |
SUMMARY BALANCE SHEET INFORMATION (In millions) |
||||||||||
|
|
|||||||||
(Unaudited) |
(Unaudited) |
|||||||||
Cash and investment portfolio |
$ |
45,422 |
$ |
37,766 |
||||||
|
4,515 |
4,495 |
||||||||
Title plant |
400 |
404 |
||||||||
Total assets |
58,506 |
50,455 |
||||||||
Notes payable |
3,097 |
2,662 |
||||||||
Reserve for title claim losses |
1,734 |
1,623 |
||||||||
Secured trust deposits |
1,147 |
711 |
||||||||
Non-controlling interests |
42 |
41 |
||||||||
Total equity and non-controlling interests |
9,374 |
8,392 |
||||||||
Total equity attributable to common shareholders |
9,332 |
8,351 |
Non-GAAP Measures and Other Information
Title
The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.
Three Months Ended |
Nine Months Ended |
|||||||||||||
(Dollars in millions) |
|
|
|
|
||||||||||
Pre-tax earnings |
$ |
486 |
$ |
507 |
$ |
1,569 |
$ |
982 |
||||||
Non-GAAP adjustments before taxes |
||||||||||||||
Recognized (gains) and losses, net |
169 |
3 |
258 |
147 |
||||||||||
Purchase price amortization |
14 |
18 |
42 |
55 |
||||||||||
Other adjustments |
— |
— |
— |
1 |
||||||||||
Total non-GAAP adjustments |
183 |
21 |
300 |
203 |
||||||||||
Adjusted pre-tax earnings |
$ |
669 |
$ |
528 |
$ |
1,869 |
$ |
1,185 |
||||||
Adjusted pre-tax margin |
21.7 |
% |
21.2 |
% |
21.5 |
% |
18.3 |
% |
QUARTERLY OPERATING STATISTICS (Unaudited) |
||||||||||||||||||||||||||||||||
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
|||||||||||||||||||||||||
Quarterly Opened Orders ('000's except % data) |
||||||||||||||||||||||||||||||||
Total opened orders* |
688 |
695 |
770 |
728 |
847 |
693 |
682 |
492 |
||||||||||||||||||||||||
Total opened orders per day* |
10.8 |
10.9 |
12.6 |
11.6 |
13.2 |
10.8 |
11.0 |
7.8 |
||||||||||||||||||||||||
Purchase % of opened orders |
50 |
% |
53 |
% |
42 |
% |
38 |
% |
40 |
% |
37 |
% |
41 |
% |
50 |
% |
||||||||||||||||
Refinance % of opened orders |
50 |
% |
47 |
% |
58 |
% |
62 |
% |
60 |
% |
63 |
% |
59 |
% |
50 |
% |
||||||||||||||||
Total closed orders* |
527 |
568 |
597 |
617 |
571 |
487 |
377 |
417 |
||||||||||||||||||||||||
Total closed orders per day* |
8.2 |
8.9 |
9.8 |
9.8 |
8.9 |
7.6 |
6.1 |
6.6 |
||||||||||||||||||||||||
Purchase % of closed orders |
50 |
% |
47 |
% |
34 |
% |
38 |
% |
42 |
% |
35 |
% |
46 |
% |
49 |
% |
||||||||||||||||
Refinance % of closed orders |
50 |
% |
53 |
% |
66 |
% |
62 |
% |
58 |
% |
65 |
% |
54 |
% |
51 |
% |
||||||||||||||||
Commercial (millions, except orders in '000's) |
||||||||||||||||||||||||||||||||
Total commercial revenue |
$ |
366 |
$ |
347 |
$ |
257 |
$ |
322 |
$ |
216 |
$ |
184 |
$ |
245 |
$ |
321 |
||||||||||||||||
Total commercial opened orders |
66.8 |
69.4 |
62.2 |
57.0 |
58.1 |
43.9 |
56.3 |
55.1 |
||||||||||||||||||||||||
Total commercial closed orders |
40.1 |
42.3 |
34.8 |
39.5 |
30.6 |
25.7 |
31.0 |
39.1 |
||||||||||||||||||||||||
National commercial revenue |
$ |
183 |
$ |
176 |
$ |
127 |
$ |
177 |
$ |
113 |
$ |
96 |
$ |
132 |
$ |
186 |
||||||||||||||||
National commercial opened orders |
27.7 |
27.4 |
23.4 |
21.4 |
21.7 |
15.2 |
21.5 |
22.6 |
||||||||||||||||||||||||
National commercial closed orders |
14.8 |
14.9 |
11.2 |
13.4 |
9.8 |
8.8 |
10.7 |
16.2 |
||||||||||||||||||||||||
Total |
||||||||||||||||||||||||||||||||
Fee per file |
$ |
2,581 |
$ |
2,444 |
$ |
1,944 |
$ |
2,116 |
$ |
2,063 |
$ |
1,889 |
$ |
2,224 |
$ |
2,384 |
||||||||||||||||
Residential fee per file |
$ |