FNF Reports Third Quarter 2022 Financial Results
Net earnings attributable to common shareholders for the third quarter of
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the third quarter of
Effective this quarter, presentations of adjusted net earnings for F&G will no longer include the alternative investment yield adjustment to normalize alternative investment portfolio returns. Prior periods are presented on a comparable basis to reflect the new definition of adjusted net earnings. Please see "Segment Financial Results" for F&G for further explanation and "Non-GAAP Measures and Other Information" for a comparison of adjusted net earnings under the former and new definition.
Company Highlights
- Solid Title Revenue despite challenging environment: For the Title segment, total revenue of
$2.3 billion , compared with$2.9 billion in total revenue in the third quarter of 2021. Total revenue, excluding recognized gains and losses, of$2.3 billion , compared with$3.1 billion in the third quarter of 2021 - Strong sales for F&G continue: Total gross sales of
$2.9 billion for the third quarter, a 7% decrease from third quarter 2021 and second quarter 2022; reflects record retail sales, partially offset by lower institutional sales which we expect to be lumpier and more opportunistic than in our retail channels - Partial spin-off of F&G remains on track: The previously announced transaction to distribute 15% ownership of F&G to FNF shareholders on a pro rata basis remains on track to close in the fourth quarter of 2022, subject to the satisfaction of certain conditions, including that a Registration Statement on Form 10 filed by F&G with the
U.S. Securities and Exchange Commission is declared effective - Ample deployable capital supports shareholder value: FNF has repurchased 5.3 million shares for
$205 million , at an average price of$38.74 per share, in the third quarter and paid common dividends at$0.44 per share for$120 million . OnSeptember 1, 2022 , FNF retired all of the$400 million aggregate principal amount of its outstanding 5.50% Senior Notes upon maturity. FNF ended the third quarter with$1.1 billion in cash and short-term liquid investments at the holding company. As announced last week, the board of directors has increased the quarterly cash dividend to$0.45 per share, payableDecember 30, 2022 , to shareholders of record as ofDecember 16, 2022
Summary Financial Results
(In millions, except per share data) |
Three Months Ended |
Year to Date |
||||
|
|
2022 |
2021 |
|||
Total revenue |
$ 3,207 |
$ 3,892 |
$ 9,003 |
$ 10,846 |
||
F&G total sales1 |
$ 2,873 |
$ 3,076 |
$ 8,535 |
$ 7,397 |
||
F&G assets under management1 |
$ 41,988 |
$ 34,665 |
$ 41,988 |
$ 34,665 |
||
Total assets |
$ 62,164 |
$ 58,506 |
$ 62,164 |
$ 58,506 |
||
Adjusted pre-tax title margin |
17.1 % |
21.7 % |
17.7 % |
21.5 % |
||
Net earnings attributable to common shareholders |
$ 289 |
$ 732 |
$ 1,068 |
$ 1,889 |
||
Net earnings per share attributable to common shareholders |
$ 1.05 |
$ 2.57 |
$ 3.83 |
$ 6.56 |
||
Adjusted net earnings1 |
$ 295 |
$ 663 |
$ 1,198 |
$ 1,790 |
||
Adjusted net earnings per share1 |
$ 1.07 |
$ 2.33 |
$ 4.29 |
$ 6.22 |
||
Total common shares outstanding |
273 |
285 |
273 |
285 |
________________________________ |
1 See definition of non-GAAP measures below |
Segment Financial Results
Title
This segment consists of the operations of the Company's title insurance underwriters and related businesses, which provide core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services, and home warranty products.
Third Quarter 2022 Highlights
- Total revenue of
$2.3 billion , compared with$2.9 billion in total revenue in the third quarter of 2021 - Total revenue, excluding recognized gains and losses, of
$2.3 billion , a 24% decrease compared with the third quarter of 2021- Direct title premiums of
$688 million , a 23% decrease from third quarter of 2021 - Agency title premiums of
$1.0 billion , a 27% decrease from third quarter of 2021 - Commercial revenue of
$381 million , a 4% increase from third quarter of 2021
- Direct title premiums of
- Purchase orders opened decreased 22% on a daily basis and purchase orders closed decreased 23% on a daily basis from the third quarter of 2021
- Refinance orders opened decreased 75% on a daily basis and refinance orders closed decreased 76% on a daily basis from third quarter of 2021
- Commercial orders opened decreased 18% and commercial orders closed decreased 12% from third quarter of 2021
- Total fee per file of
$3,621 for the third quarter, a 40% increase over third quarter of 2021
Third Quarter 2022 Financial Results
- Pre-tax title margin of 14.6% and industry leading adjusted pre-tax title margin of 17.1% for the third quarter of 2022, compared to 16.6% and 21.7%, respectively, in the third quarter of 2021
- Pre-tax earnings from continuing operations in Title for the third quarter of
$335 million , compared with$486 million for the third quarter of 2021 - Adjusted pre-tax earnings in Title for the third quarter of
$400 million compared with$669 million for the third quarter of 2021. The decrease from the prior year quarter was primarily a result of the considerable decline in refinance volume representing trough level activity and moderating residential purchase volume; partially offset by higher average fee per file and healthy volume of commercial orders closed
F&G
This segment consists of operations of FNF's wholly-owned subsidiary F&G, a leading provider of insurance solutions serving retail annuity and life customers and funding agreement and pension risk transfer institutional clients.
Third Quarter 2022
Regarding the recently announced transaction to distribute 15% ownership of F&G to FNF shareholders,
- Total gross sales of
$2.9 billion for the third quarter, a decrease of 7% from the third quarter 2021 and second quarter 2022; reflects record retail sales, partially offset by lower institutional sales which we expect to be lumpier and more opportunistic than in our retail channels - Record Retail sales of
$2.3 billion for the third quarter, a 45% increase over third quarter of 2021 and 1% increase over second quarter 2022; reflects execution of diversified growth strategy - Institutional sales of
$620 million of pension risk transfer transactions, compared to$371 million of pension risk transfer transactions in the third quarter 2021. There were no funding agreement issuances in the current quarter, compared with$1.2 billion for the third quarter 2021 - Average assets under management (AAUM) of
$41.1 billion for the third quarter, an increase of 26% from$32.6 billion in the third quarter 2021, driven by net new business flows. Ending assets under management were$42.0 billion as ofSeptember 30, 2022 - Net earnings attributable to common shareholders for F&G of
$115 million for the third quarter, compared to$230 million for the second quarter of 2022 - Adjusted net earnings for F&G of
$12 million for the third quarter, compared to$112 million for the second quarter of 2022.- Beginning in the third quarter, presentations of adjusted net earnings for F&G will no longer include the alternative investment yield adjustment for the current period yield impact of market volatility that differs from management's expectation of long-term returns. Adjusted net earnings for F&G over the past 9 quarters have been adjusted to reflect this updated presentation. Please see "Non-GAAP Measures and Other Information" for a comparison of adjusted net earnings under the former and new definition.
- Adjusted net earnings for the third quarter of 2022 included a
$10 million unrealized loss from alternative investments and$5 million of other net expense items. Alternative investments net investment income based on management's long-term expected return of approximately 10% was$83 million - Adjusted net earnings for the second quarter of 2022 included
$30 million income from actuarial assumption updates and$6 million of CLO redemption gains and other income, as well as a$38 million unrealized gain from alternative investments. Alternative investments net investment income based on management's long-term expected return of approximately 10% was$54 million
Conference Call
We will host a call with investors and analysts to discuss FNF's third quarter 2022 results on
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 insurance solutions serving retail annuity and life customers and institutional clients 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, 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: 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 |
$ 688 |
$ 688 |
$ — |
$ — |
||||
Agency title premiums |
966 |
966 |
— |
— |
||||
Escrow, title related and other fees |
1,372 |
623 |
702 |
47 |
||||
Total title and escrow |
3,026 |
2,277 |
702 |
47 |
||||
Interest and investment income |
411 |
62 |
340 |
9 |
||||
Recognized gains and losses, net |
(230) |
(48) |
(140) |
(42) |
||||
Total revenue |
3,207 |
2,291 |
902 |
14 |
||||
Personnel costs |
796 |
725 |
46 |
25 |
||||
Agent commissions |
747 |
747 |
— |
— |
||||
Other operating expenses |
430 |
372 |
28 |
30 |
||||
Benefits & other policy reserve changes |
592 |
— |
592 |
— |
||||
Depreciation and amortization |
131 |
38 |
87 |
6 |
||||
Provision for title claim losses |
74 |
74 |
— |
— |
||||
Interest expense |
28 |
— |
6 |
22 |
||||
Total expenses |
2,798 |
1,956 |
759 |
83 |
||||
Pre-tax earnings (loss) from continuing operations |
$ 409 |
$ 335 |
$ 143 |
$ (69) |
||||
Income tax expense (benefit) |
115 |
93 |
28 |
(6) |
||||
Earnings (loss) from equity investments |
— |
— |
— |
— |
||||
Earnings (loss) from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Non-controlling interests |
5 |
5 |
— |
— |
||||
Net earnings (loss) attributable to common shareholders |
$ 289 |
$ 237 |
$ 115 |
$ (63) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 1.06 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
— |
|||||||
EPS attributable to common shareholders - basic |
$ 1.06 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 1.05 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
— |
|||||||
EPS attributable to common shareholders - diluted |
$ 1.05 |
|||||||
Weighted average shares - basic |
273 |
|||||||
Weighted average shares - diluted |
275 |
THIRD QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||
Consolidated |
Title |
F&G |
Corporate and Other |
|||||
Three Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 289 |
$ 237 |
$ 115 |
$ (63) |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ 289 |
$ 237 |
$ 115 |
$ (63) |
||||
Pre-tax earnings (loss) from continuing operations |
$ 409 |
$ 335 |
$ 143 |
$ (69) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
65 |
48 |
(25) |
42 |
||||
Indexed product related derivatives |
(148) |
— |
(148) |
— |
||||
Purchase price amortization |
26 |
17 |
5 |
4 |
||||
Transaction costs |
7 |
— |
4 |
3 |
||||
Amortization of actuarial intangibles |
33 |
— |
33 |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 392 |
$ 400 |
$ 12 |
$ (20) |
||||
Total non-GAAP, pre-tax adjustments |
$ (17) |
$ 65 |
$ (131) |
$ 49 |
||||
Income taxes on non-GAAP adjustments |
1 |
(16) |
28 |
(11) |
||||
Non-controlling interest on non-GAAP adjustments |
(1) |
— |
— |
(1) |
||||
Deferred tax asset valuation allowance |
23 |
12 |
— |
11 |
||||
Total non-GAAP adjustments |
$ 6 |
$ 61 |
$ (103) |
$ 48 |
||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ 295 |
$ 298 |
$ 12 |
$ (15) |
||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
$ 1.07 |
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 |
||||
Provision for title claim losses |
100 |
100 |
— |
— |
||||
Interest expense |
27 |
— |
6 |
21 |
||||
Total expenses |
2,966 |
2,435 |
455 |
76 |
||||
Pre-tax earnings (loss) |
$ 926 |
$ 486 |
$ 472 |
$ (32) |
||||
Income tax expense (benefit) |
213 |
126 |
96 |
(9) |
||||
Earnings 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 Other |
|||||
Three Months Ended |
||||||||
|
||||||||
Net earnings (loss) attributable to common shareholders |
$ 732 |
$ 382 |
$ 373 |
$ (23) |
||||
Earnings (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 |
146 |
169 |
(23) |
— |
||||
Indexed product related derivatives |
14 |
— |
14 |
— |
||||
Purchase price amortization |
25 |
14 |
7 |
4 |
||||
Transaction costs |
3 |
— |
1 |
2 |
||||
Amortization of actuarial intangibles |
12 |
— |
12 |
— |
||||
Other non-recurring items |
(284) |
— |
(284) |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 842 |
$ 669 |
$ 199 |
$ (26) |
||||
Total non-GAAP, pre-tax adjustments |
$ (84) |
$ 183 |
$ (273) |
$ 6 |
||||
Income taxes on non-GAAP adjustments |
12 |
(44) |
57 |
(1) |
||||
Total non-GAAP adjustments |
$ (72) |
$ 139 |
$ (216) |
$ 5 |
||||
Adjusted net earnings attributable to common shareholders |
$ 663 |
$ 521 |
$ 160 |
$ (18) |
||||
Adjusted EPS attributable to common shareholders - diluted |
$ 2.33 |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||
Consolidated |
Title |
F&G |
Corporate and Other |
|||||
Nine Months Ended |
||||||||
|
||||||||
Direct title premiums |
$ 2,314 |
$ 2,314 |
$ — |
$ — |
||||
Agency title premiums |
3,268 |
3,268 |
— |
— |
||||
Escrow, title related and other fees |
3,444 |
1,994 |
1,364 |
86 |
||||
Total title and escrow |
9,026 |
7,576 |
1,364 |
86 |
||||
Interest and investment income |
1,352 |
124 |
1,216 |
12 |
||||
Recognized gains and losses, net |
(1,375) |
(472) |
(863) |
(40) |
||||
Total revenue |
9,003 |
7,228 |
1,717 |
58 |
||||
Personnel costs |
2,458 |
2,322 |
110 |
26 |
||||
Agent commissions |
2,521 |
2,521 |
— |
— |
||||
Other operating expenses |
1,329 |
1,178 |
77 |
74 |
||||
Benefits & other policy reserve changes |
382 |
— |
382 |
— |
||||
Depreciation and amortization |
474 |
105 |
351 |
18 |
||||
Provision for title claim losses |
251 |
251 |
— |
— |
||||
Interest expense |
89 |
— |
23 |
66 |
||||
Total expenses |
7,504 |
6,377 |
943 |
184 |
||||
Pre-tax earnings (loss) from continuing operations |
$ 1,499 |
$ 851 |
$ 774 |
$ (126) |
||||
Income tax expense (benefit) |
434 |
261 |
193 |
(20) |
||||
Earnings (loss) from equity investments |
16 |
16 |
— |
— |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Non-controlling interests |
13 |
14 |
— |
(1) |
||||
Net earnings (loss) attributable to common shareholders |
$ 1,068 |
$ 592 |
$ 581 |
$ (105) |
||||
EPS from continuing operations attributable to common shareholders - basic |
$ 3.86 |
|||||||
EPS from discontinued operations attributable to common shareholders - basic |
— |
|||||||
EPS attributable to common shareholders - basic |
$ 3.86 |
|||||||
EPS from continuing operations attributable to common shareholders - diluted |
$ 3.83 |
|||||||
EPS from discontinued operations attributable to common shareholders - diluted |
— |
|||||||
EPS attributable to common shareholders - diluted |
$ 3.83 |
|||||||
Weighted average shares - basic |
277 |
|||||||
Weighted average shares - diluted |
279 |
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 |
$ 1,068 |
$ 592 |
$ 581 |
$ (105) |
||||
Earnings from discontinued operations, net of tax |
— |
— |
— |
— |
||||
Net earnings (loss) from continuing operations attributable to common shareholders |
$ 1,068 |
$ 592 |
$ 581 |
$ (105) |
||||
Pre-tax earnings (loss) from continuing operations |
$ 1,499 |
$ 851 |
$ 774 |
$ (126) |
||||
Non-GAAP Adjustments |
||||||||
Recognized (gains) and losses, net |
493 |
472 |
(19) |
40 |
||||
Indexed product related derivatives |
(566) |
— |
(566) |
— |
||||
Purchase price amortization |
70 |
43 |
16 |
11 |
||||
Transaction costs |
4 |
— |
8 |
(4) |
||||
Amortization of actuarial intangibles |
87 |
— |
87 |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 1,587 |
$ 1,366 |
$ 300 |
$ (79) |
||||
Total non-GAAP, pre-tax adjustments |
$ 88 |
$ 515 |
$ (474) |
$ 47 |
||||
Income taxes on non-GAAP adjustments |
(35) |
(124) |
100 |
(11) |
||||
Deferred tax asset valuation allowance |
78 |
67 |
— |
11 |
||||
Non-controlling interest on non-GAAP adjustments |
(1) |
— |
— |
(1) |
||||
Total non-GAAP adjustments |
$ 130 |
$ 458 |
$ (374) |
$ 46 |
||||
Adjusted net earnings (loss) from continuing operations attributable to common shareholders |
$ 1,198 |
$ 1,050 |
$ 207 |
$ (59) |
||||
Adjusted EPS from continuing operations attributable to common shareholders - diluted |
$ 4.29 |
YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited) |
||||||||
F&G |
||||||||
Nine Months Ended |
Consolidated |
Title |
Corporate and Other |
|||||
|
||||||||
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 |
||||
Provision for title claim losses |
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 from equity investments |
54 |
48 |
— |
6 |
||||
Earnings (loss) 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 Other |
|||||
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 |
154 |
258 |
(95) |
(9) |
||||
Indexed product related derivatives |
(167) |
— |
(167) |
— |
||||
Purchase price amortization |
74 |
42 |
20 |
12 |
||||
Transaction costs |
13 |
— |
5 |
8 |
||||
Amortization of actuarial intangibles |
110 |
— |
110 |
— |
||||
Other non-recurring items |
(284) |
— |
(284) |
— |
||||
Adjusted pre-tax earnings (loss) |
$ 2,296 |
$ 1,869 |
$ 514 |
$ (87) |
||||
Total non-GAAP, pre-tax adjustments |
$ (100) |
$ 300 |
$ (411) |
$ 11 |
||||
Income taxes on non-GAAP adjustments |
10 |
(72) |
84 |
(2) |
||||
Non-controlling interest on non-GAAP adjustments |
(1) |
— |
— |
(1) |
||||
Total non-GAAP adjustments |
$ (91) |
$ 228 |
$ (327) |
$ 8 |
||||
Adjusted net earnings (loss) attributable to common shareholders |
$ 1,790 |
$ 1,443 |
$ 409 |
$ (62) |
||||
Adjusted EPS attributable to common shareholders - diluted |
$ 6.22 |
SUMMARY BALANCE SHEET INFORMATION (In millions) |
||||||
|
|
|||||
(Unaudited) |
(Unaudited) |
|||||
Cash and investment portfolio |
$ 45,294 |
$ 47,135 |
||||
|
4,609 |
4,539 |
||||
Title plant |
418 |
400 |
||||
Total assets |
62,164 |
60,690 |
||||
Notes payable |
2,693 |
3,096 |
||||
Reserve for title claim losses |
1,853 |
1,883 |
||||
Secured trust deposits |
1,043 |
934 |
||||
Accumulated other comprehensive (loss) earnings |
(3,186) |
779 |
||||
Non-controlling interests |
87 |
43 |
||||
Total equity and non-controlling interests |
5,799 |
9,457 |
||||
Total equity attributable to common shareholders |
5,712 |
9,414 |
Non-GAAP Measures and Other Information
Title
The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.
Three Months Ended |
Nine Months Ended |
|||||
(Dollars in millions) |
|
|
|
|
||
Pre-tax earnings |
$ 335 |
$ 486 |
$ 851 |
$ 1,569 |
||
Non-GAAP adjustments before taxes |
||||||
Recognized (gains) and losses, net |
48 |
169 |
472 |
258 |
||
Purchase price amortization |
17 |
14 |
43 |
42 |
||
Total non-GAAP adjustments |
65 |
183 |
515 |
300 |
||
Adjusted pre-tax earnings |
$ 400 |
$ 669 |
$ 1,366 |
$ 1,869 |
||
Adjusted pre-tax margin |
17.1 % |
21.7 % |
17.7 % |
21.5 % |
QUARTERLY OPERATING STATISTICS (Unaudited) |
||||||||||||||||
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
|||||||||
Quarterly Opened Orders ('000's except % data) |
||||||||||||||||
Total opened orders* |
363 |
443 |
522 |
536 |
688 |
695 |
770 |
728 |
||||||||
Total opened orders per day* |
5.7 |
6.9 |
8.6 |
8.5 |
10.8 |
10.9 |
12.6 |
11.6 |
||||||||
Purchase % of opened orders |
76 % |
75 % |
62 % |
53 % |
50 % |
53 % |
42 % |
38 % |
||||||||
Refinance % of opened orders |
24 % |
25 % |
38 % |
47 % |
50 % |
47 % |
58 % |
62 % |
||||||||
Total closed orders* |
278 |
348 |
380 |
477 |
527 |
568 |
597 |
617 |
||||||||
Total closed orders per day* |
4.3 |
5.4 |
6.2 |
7.6 |
8.2 |
8.9 |
9.8 |
9.8 |
||||||||
Purchase % of closed orders |
76 % |
71 % |
55 % |
51 % |
50 % |
47 % |
34 % |
38 % |
||||||||
Refinance % of closed orders |
24 % |
29 % |
45 % |
49 % |
50 % |
53 % |
66 % |
62 % |
||||||||
Commercial (millions, except orders in '000's) |
||||||||||||||||
Total commercial revenue |
$ 381 |
$ 436 |
$ 374 |
$ 546 |
$ 366 |
$ 347 |
$ 257 |
$ 322 |
||||||||
Total commercial opened orders |
54.8 |
64.2 |
66.1 |
64.5 |
66.8 |
69.4 |
62.2 |
57.0 |
||||||||
Total commercial closed orders |
35.2 |
39.7 |
37.4 |
46.1 |
40.1 |
42.3 |
34.8 |
39.5 |
||||||||
National commercial revenue |
$ 191 |
$ 220 |
$ 196 |
$ 313 |
$ 183 |
$ 176 |
$ 127 |
$ 177 |
||||||||
National commercial opened orders |
22.1 |
26.7 |
27.5 |
26.0 |
27.7 |
27.4 |
23.4 |
21.4 |
||||||||
National commercial closed orders |
14.0 |
15.3 |
14.6 |
18.1 |
14.8 |
14.9 |
11.2 |
13.4 |
||||||||
Total |
||||||||||||||||
Fee per file |
$ 3,621 |
$ 3,557 |
$ 2,891 |
$ 3,023 |
$ 2,581 |
$ 2,444 |
$ 1,944 |
$ 2,116 |
||||||||
Residential fee per file |
$ 2,697 |
$ 2,695 |
$ 2,188 |
$ 2,158 |
$ 2,097 |
$ 2,030 |
$ 1,644 |
$ 1,661 |
||||||||
Total commercial fee per file |
|
$ 11,000 |
$ 10,000 |
$ 11,800 |
$ 9,100 |
$ 8,200 |
$ 7,400 |
$ 8,200 |
||||||||
National commercial fee per file |
|
$ 14,400 |
$ 13,400 |
$ 17,300 |
|
$ 11,800 |
$ 11,300 |
$ 13,200 |
||||||||
Total Staffing |
||||||||||||||||
Total field operations employees |
12,000 |
12,700 |
13,400 |