United States
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
April 21, 2010

Fidelity National Financial, Inc.

(Exact name of Registrant as Specified in its Charter)

001-32630
(Commission File Number)

Delaware (State or Other Jurisdiction of Incorporation or Organization)		16-1725106 (IRS Employer Identification Number)

601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)

(904) 854-8100
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.		Results of Operations and Financial Condition

On April 21, 2010, Fidelity National Financial, Inc. issued an earnings release announcing its financial results for the First Quarter of 2010. The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

A copy of the earnings release is attached as Exhibit 99.1.

Item 9.01.		Financial Statements and Exhibits

(c) Exhibits

Exhibit		Description
99.1		Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2010 Earnings.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EXHIBIT INDEX

Exhibit		Description
99.1		Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2010 Earnings.

Exhibit 99.1

 

Fidelity National Financial, Inc. Reports First Quarter 2010 EPS of $0.07

Jacksonville, Fla. — (April 21, 2010) — Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, mortgage services, specialty insurance, claims management services and information services, today reported operating results for the three-month period ended March 31, 2010.

		Three Months Ended				Three Months Ended
		March 31, 2010				March 31, 2009
Total revenue		$1.21 billion				$1.35 billion
Net earnings (loss) attributable to common shareholders		$16.5 million				($12.4 million)
Net earnings (loss) per diluted share attributable to common shareholders		$	0.07				($0.06	)
Cash flow from (used in) operations		($88.1 million)				$128.3 million

     The following are summary financial and operational results for the operating segments of FNF for the three-month periods ended March 31, 2010 and 2009:

     Fidelity National Title Group (“FNT”)

		Three Months Ended				Three Months Ended
		March 31, 2010				March 31, 2009
Total revenue		$1.07 billion				$1.26 billion
Pre-tax earnings		$22.9 million				$7.3 million
Pre-tax margin			2.2	%			0.6	%

Month		Direct Orders Opened				Direct Orders Closed
January 2010			146,900				104,300
February 2010			161,900				101,000
March 2010			202,300				127,200
First Quarter 2010			511,100				332,500

Month		Direct Orders Opened				Direct Orders Closed
January 2009			279,700				120,500
February 2009			206,400				141,900
March 2009			260,300				166,200
First Quarter 2009			746,400				428,600

		Open				Closed				Commercial
		Commercial				Commercial				Revenue				Commercial
		Orders				Orders				(In thousands)				Fee PerFile
1st Quarter 2010			17,200				9,800			$	48,000			$	4,900
1st Quarter 2009			18,700				9,800			$	45,300			$	4,600

     • The preceding table only includes commercial activity from FNF’s commercial offices in the national commercial division and does not attempt to capture potential commercial activity in our local offices.

     Specialty Insurance

		Three Months Ended				Three Months Ended
		March 31, 2010				March 31, 2009
Total revenue		$89.3 million				$86.8 million
Pre-tax earnings		$6.2 million				$13.2 million
Pre-tax margin			7.0	%			15.2	%

     “This quarter was a typical seasonally impacted beginning to the year, as we started slow in January coming out of the holiday season and built momentum as we made our way into the month of March,” said Chairman William P. Foley, II. “Open order counts were relatively stable during the quarter, after the first two weeks of January, as we averaged between 8,500 and 8,800 open orders per day from the second half of January through March. Closed order counts were seasonally soft during the first quarter and were further impacted by new RESPA closing requirements. We also continued to aggressively manage our cost structure in the first quarter,

eliminating nearly 600 additional positions during those three months. The two and a half months of consistent open order activity, the first quarter seasonal delay in order closings and the continued cost reductions should allow us to produce stronger results in the title business during the second quarter.”

     “We realized a significant gain from one distressed debt investment in our portfolio, MSX International. We originally purchased the bonds during the first half of 2009 for a total purchase price of approximately $22 million. In early March, we sold those bonds for total net proceeds of approximately $48 million, a pre-tax gain of $26 million.”

     During March, we amended and extended our existing credit facility, decreasing the total size of the facility from $1.1 billion to approximately $951 million and pushing the maturity date on a $925 million tranche out to March 2013. We had one lender who declined to extend and thus still have a $26.25 million tranche that matures in October 2011. Pricing on the $925 million tranche was increased to LIBOR +150 basis points, at our current ratings, while the $26.25 million tranche pricing remained LIBOR +47.5 basis points. This amendment and extension enhances our longer-term liquidity profile and continues our strategy of conservatively managing our balance sheet and liquidity position during these uncertain times, as our debt to total capital ratio ended the quarter at approximately 21%.”

     Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, mortgage services, specialty insurance, claims management services and information services. FNF is the nation’s largest title insurance company through its title insurance underwriters — Fidelity National Title, Chicago Title, Commonwealth Land Title, Lawyers Title, Ticor Title, Security Union Title and Alamo Title — that collectively issue more title insurance policies than any other title company in the United States. FNF also provides flood insurance, personal lines insurance and home warranty insurance through its specialty insurance business. FNF also is a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS. FNF is also a leading information

services company in the human resource, retail and transportation markets through another minority-owned subsidiary, Ceridian Corporation. More information about FNF can be found at www.fnf.com.

     This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, 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 economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political 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, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on operating subsidiaries as a source of cash flow; significant competition that 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 the Company’s Form 10-K and other filings with the Securities and Exchange Commission.

SOURCE: Fidelity National Financial, Inc.

CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, dkmurphy@fnf.com

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY OF EARNINGS
(In thousands, except per share amounts and order information)

		Three months ended
		March 31,
		2010				2009
		(Unaudited)
Direct title premiums		$	281,413			$	333,588
Agency title premiums			483,787				575,690
Total title premiums			765,200				909,278
Escrow, title-related and other fees			294,529				322,806
Total title and escrow			1,059,729				1,232,084
Specialty insurance			86,308				83,384
Interest and investment income			38,781				36,773
Realized gains and losses			28,635				(5,719	)
Total revenue			1,213,453				1,346,522
Personnel costs			370,663				421,185
Other operating expenses			299,003				326,586
Agent commissions			384,425				461,518
Depreciation and amortization			23,041				30,970
Claim loss expense			86,310				95,611
Interest expense			7,101				11,771
Total expenses			1,170,543				1,347,641
Earnings (loss) from continuing operations before income taxes			42,910				(1,119	)
Income tax expense (benefit)			13,302				(512	)
Earnings (loss) from continuing operations before equity investments			29,608				(607	)
Loss from equity investments			(10,694	)			(12,130	)
Net earnings (loss) from continuing operations			18,914				(12,737	)
Earnings from discontinued operations, net of tax			—				319
Net earnings (loss)			18,914				(12,418	)
Non-controlling interests			2,386				(20	)
Net earnings (loss) attributable to common shareholders		$	16,528				($12,398	)
Earnings per share — basic and diluted:
Net earnings (loss) from continuing operations and attributable to common shareholders		$	0.07				($0.06	)
Weighted average shares — basic			227,519				213,184
Weighted average shares — diluted			230,294				213,184
Direct operations orders opened			511,100				746,400
Direct operations orders closed			332,500				428,600
Fee per file		$	1,339			$	1,166
Actual title claims paid		$	95,547			$	56,232

FIDELITY NATIONAL FINANCIAL, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)

Three Months Ended												Specialty				Corporate
March 31, 2010			Consolidated					FNT				Insurance				and Other
Gross operating revenue			$	1,146,037				$	1,028,344			$	86,308			$	31,385
Interest and investment income				38,781					34,208				2,887				1,686
Realized gains and losses				28,635					2,685				139				25,811
Total revenue				1,213,453					1,065,237				89,334				58,882
Personnel costs				370,663					344,344				11,796				14,523
Other operating expenses				299,003					240,162				35,955				22,886
Agent commissions				384,425					384,425				—				—
Depreciation and amortization				23,041					21,175				1,112				754
Claim loss expense				86,310					52,062				34,248				—
Interest expense				7,101					120				1				6,980
Total expenses				1,170,543					1,042,288				83,112				45,143
Pretax earnings from continuing operations				42,910					22,949				6,222				13,739
Pretax margin				3.5	%				2.2	%			7.0	%			23.3	%
Open orders				511,100					511,100				—				—
Closed orders				332,500					332,500				—				—

Three Months Ended												Specialty				Corporate
March 31, 2009			Consolidated					FNT				Insurance				and Other
Gross operating revenue			$	1,315,468				$	1,226,767			$	83,384			$	5,317
Interest and investment income				36,773					33,733				3,154				(114	)
Realized gains and losses				(5,719	)				(4,412	)			290				(1,597	)
Total revenue				1,346,522					1,256,088				86,828				3,606
Personnel costs				421,185					404,385				11,912				4,888
Other operating expenses				326,586					284,760				32,973				8,853
Agent commissions				461,518					461,518				—				—
Depreciation and amortization				30,970					29,238				1,291				441
Claim loss expense				95,611					68,196				27,415				—
Interest expense				11,771					699				18				11,054
Total expenses				1,347,641					1,248,796				73,609				25,236
Pretax earnings from continuing operations				(1,119	)				7,292				13,219				(21,630	)
Pretax margin				N/A					0.6	%			15.2	%			—
Open orders				746,400					746,400				—				—
Closed orders				428,600					428,600				—				—

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In thousands, except per share amounts)

		March 31,				December 31,
		2010				2009
		(Unaudited)
Cash and investment portfolio		$	4,778,214			$	4,887,411
Goodwill			1,442,382				1,455,237
Title plant			405,499				407,495
Total assets			7,793,404				7,934,310
Notes payable			861,667				861,878
Reserve for claim losses			2,499,038				2,541,420
Secured trust deposits			409,954				373,339
Total equity			3,321,850				3,344,827
Book value per share		$	14.46			$	14.53

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