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%

November 2, 2021 at 4:12 PM EDT

JACKSONVILLE, Fla., Nov. 2, 2021 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries and a leading provider of annuity and life insurance products through the Company's wholly-owned subsidiary, F&G, today reported operating results for the period ended September 30, 2021.

  • 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)

July 2021

   

230,000

50%

   

171,000

52%

August 2021

   

242,000

49%

   

181,000

48%

September 2021

   

216,000

50%

   

175,000

49%

             

Third Quarter 2021

   

688,000

50%

   

527,000

50%

 
 
     

Direct Orders Opened *

   

Direct Orders Closed *

Month

 

 / (% Purchase)

   

 / (% Purchase)

July 2020

   

292,000

40%

   

187,000

43%

August 2020

   

283,000

40%

   

186,000

42%

September 2020

   

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 June 1, 2020 are generally not comparable to the results of prior periods.  Certain metrics, such as sales and policyholder account values, are not affected by PGAAP and are comparable to prior period data.

  • 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 in October 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

William P. Foley, II, commented, "For the third quarter, we grew revenues 31% to $3.9 billion which resulted in adjusted net earnings growth of 39% to $604 million, both as compared to the 2020 third quarter. Importantly, holding company cash grew by 25% to $1.5 billion as compared to $1.2 billion at the end of the 2021 second quarter. We grew cash on our balance sheet despite being active with our capital allocation program focused on share buybacks and a steady stream of capital return with our dividend. Our results speak to the dynamic business model that we have created which we believe positions FNF for success through varying market cycles.

Looking at our Title results, we delivered adjusted pre-tax title earnings of $669 million and an adjusted pre-tax title margin of 21.7%, compared to adjusted pre-tax title earnings of $528 million and an adjusted pretax title margin of 21.2% in the 2020 comparable quarter. Our third quarter margins and earnings were the strongest third quarter results in our Company's history which speaks to our market leading position combined with the outstanding execution of our entire team. Total commercial revenues also continued at record levels as we achieved $366 million of revenues in the third quarter of 2021, an increase of 69% as compared to the year ago third quarter. Commercial opened orders have exceeded 1,000 per day over the last eight months, having consistently been in record territory and will provide momentum for the fourth quarter and the beginning of 2022 given the longer tail for closings in commercial as compared to residential.

Turning to F&G, we are making great strides on our diversified growth strategy. The new Institutional channel is on track to achieve $3 billion of first year sales in 2021 from funding agreements and pension risk transfer transactions.  In addition, total retail sales at $1.6 billion in the quarter grew by 44%, as compared to the third quarter of 2020, and reflect productive and expanding relationships with bank, broker dealer and agent distribution partners. F&G continues to maintain attractive spreads, and this disciplined approach to attracting new business has resulted in strong adjusted net earnings that contributed 17% of FNF's consolidated results in the third quarter.

Mr. Foley concluded, "Our capital allocation strategy remains a key focus of the Board. Our disciplined strategy is focused on returning capital to shareholders, while making strategic investments in our businesses to drive profitable growth and attractive returns for our shareholders. We recently announced our fourth quarter dividend of $0.44 per share, an increase of 10% from our previous quarterly dividend, and have continued to make share repurchases throughout the third quarter and into the fourth as we completed our previously announced $500 million share repurchase plan in the first week of October. During the quarter we purchased 1.3 million shares at an average purchase price of $46.29 per share."

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 12:00 p.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 November 3, 2021, through November 10, 2021, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13723639. An expanded quarterly financial supplement providing 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 annuity and life insurance products and is headquartered in Des Moines, Iowa. For more information, please visit www.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, 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 Securities and Exchange Commission ("SEC").

FNF-E

 

FIDELITY NATIONAL FINANCIAL, INC.

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and

Other

Three Months Ended

       

September 30, 2021

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC.

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

September 30, 2021

       

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

 

FIDELITY NATIONAL FINANCIAL, INC.

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

September 30, 2020

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC.

THIRD QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Three Months Ended

       

September 30, 2020

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC. 

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

                 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Nine Months Ended

       

September 30, 2021

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
                 
   

Consolidated

 

Title

 

F&G

 

Corporate and
Other

Nine Months Ended

       

September 30, 2021

       

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

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
           

F&G

   

Nine Months Ended

 

Consolidated

 

Title

   

Corporate and
Other

September 30, 2020

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)

 
   

Consolidated

 

Title

 

F&G

 

Corporate and Other

Nine Months Ended

       

September 30, 2020

       

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

             

 

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)

 
   

September 30,
2021

 

December 31,
2020

   

(Unaudited)

 

(Unaudited)

Cash and investment portfolio

   

$

45,422

     

$

37,766

 

Goodwill

   

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)

September 30,
2021

September 30,
2020

   

September 30,
2021

September 30,
2020

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

%

 

 

FIDELITY NATIONAL FINANCIAL, INC.

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

Fee per file

 

$

2,581

   

$

2,444

   

$

1,944

   

$

2,116

   

$

2,063

   

$

1,889

   

$

2,224

   

$

2,384

 

Residential fee per file

 

$

2,097

   

$