SEC Filing - Fidelity National Financial

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Fidelity National Financial, Inc.

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 23, 2008

Fidelity National Financial, Inc.

(Exact name of Registrant as Specified in its Charter)

001-32630
(Commission File Number)


Delaware		16-1725106
(State or Other Jurisdiction of Incorporation or Organization)		(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))

TABLE OF CONTENTS


	Item 2.02. Results of Operations and Financial Condition
	Item 9.01. Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Item 2.02. Results of Operations and Financial Condition

On April 23, 2008, Fidelity National Financial, Inc. issued an earnings release announcing its financial results for the three-month period ended March 31, 2008. 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 2008 Results.

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.


	Fidelity National Financial, Inc.
Date: April 28, 2008	By:	/s/ Anthony J. Park
		Name: Anthony J. Park Title: Chief Financial Officer

EXHIBIT INDEX


Exhibit		Description
99.1		Press release announcing Fidelity National Financial, Inc. Reports First Quarter 2008 Results.

Exhibit 99.1

EXHIBIT 99.1



		PRESS RELEASE

Fidelity National Financial, Inc. Reports First Quarter 2008 EPS of $0.13

Jacksonville, Fla. — (April 23, 2008) — Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, specialty insurance, claims management services and information services, today reported operating results for the three-month period ended March 31, 2008.


	1st Quarter 2008			1st Quarter 2007
Total revenue	$1.14 billion			$1.37 billion
Pre-tax margin		3.3	%		9.3	%
Net earnings	$27.2 million			$83.4 million
Net earnings per diluted share	$	0.13		$	0.37
Cash flow from (used in) operations	($74.9 million)			$84.1 million
Return on average equity		3.4	%		9.6	%

The following are summary financial and operational results for the operating segments of FNF for the three-month periods ended March 31, 2008 and 2007:

Fidelity National Title Group (“FNT”)


	1st Quarter 2008			1st Quarter 2007
Total revenue	$1.01 billion			$1.25 billion
Pre-tax earnings	$54.0 million			$114.8 million
Pre-tax margin		5.3	%		9.2	%


Month	Direct Orders Opened		Direct Orders Closed		Closing %
January 2008		201,100		88,000		44	%
February 2008		188,900		108,000		57	%
March 2008		172,200		111,800		65	%

First Quarter 2008		562,200		307,800		55	%


Month	Direct Orders Opened		Direct Orders Closed		Closing %
January 2007		212,900		128,700		60	%
February 2007		202,000		120,300		60	%
March 2007		237,500		141,400		60	%

First Quarter 2007		652,400		390,400		60	%


	Open		Closed		Commercial
	Commercial		Commercial		Revenue		Commercial
	Orders		Orders		(In thousands)		Fee Per File
1st Quarter 2008		12,300		7,400	$	66,600	$	9,000
1st Quarter 2007		15,100		7,300	$	75,400	$	10,400

- 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


	1st Quarter 2008			1st Quarter 2007
Total revenue	$88.5 million			$99.0 million
Pre-tax earnings	$9.4 million			$25.4 million*
Pre-tax margin		10.6	%		25.7	%


*		The 1^st quarter 2007 Specialty Insurance results include a $12.2 million benefit from an adjustment related to the deferral and amortization of certain costs over the life of a policy, consistent with the recognition of the premiums. The adjustment represents costs deferred as of March 31, 2007, on policies issued over the prior twelve months.

“We continue to navigate through difficult economic conditions, particularly in the mortgage and real estate markets,” said Chairman William P. Foley, II. “We did see a surge in open order volumes after the 75 basis point inter-meeting Fed rate cut, but those elevated levels did not continue through the rest of the quarter. While we peaked above 11,000 open orders per

day for a few weeks in late January and early February, open orders have settled down closer to 8,000 to 8,500 per day over the last six weeks. Even that order volume is the highest level we have seen since the summer of 2007, right before the credit crisis hit the mortgage markets. We have definitely seen a better start to 2008, particularly given that the first quarter is generally the weakest quarter of the year and the fact that we now have our cost structure better aligned with that level of order volumes. On the claims front, we were encouraged by our performance in the first quarter and continue to be confident in our reserve position, as no single calendar year showed more than a 10 basis point positive or negative change in the ultimate expected loss experience. This was the best quarterly performance versus the actuarial model since the first quarter of 2007. Overall, we are prepared for the operating environment to remain challenging and we will continue to seek out ways to maximize the profitability of our title insurance operations, even if it is in the face of continued difficult mortgage and real estate markets.”

Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, specialty insurance, claims management services and information services. FNF is one of the nation’s largest title insurance companies through its title insurance underwriters — Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title — that issue approximately 28 percent of all title insurance policies 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; 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, Finance and Investor Relations,

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,
	2008			2007
	(Unaudited)
Direct title premiums	$	304,779		$	418,597
Agency title premiums		423,436			542,146

Total title premiums		728,215			960,743
Escrow, title-related and other fees		273,621			256,980

Total title and escrow		1,001,836			1,217,723

Specialty insurance		84,827			94,998
Interest and investment income		43,701			49,959
Realized gains and losses		8,477			6,382

Total revenue		1,138,841			1,369,062

Personnel costs		361,878			435,260
Other operating expenses		267,870			234,441
Agent commissions		328,009			420,157
Depreciation and amortization		36,895			29,354
Claim loss expense		87,505			110,986
Interest expense		18,636			11,977

Total expenses		1,100,793			1,242,175

Earnings before income taxes		38,048			126,887
Income tax expense		12,175			45,045
Minority interest		(1,372	)		(1,557	)


Net earnings	$	27,245		$	83,399


Net earnings per share — basic	$	0.13		$	0.38

Net earnings per share — diluted	$	0.13		$	0.37


Weighted average shares — basic		211,110			219,014

Weighted average shares — diluted		213,528			222,912


Direct operations orders opened		562,200			652,400
Direct operations orders closed		307,800			390,400
Fee per file	$	1,447		$	1,557
Actual title claims paid	$	75,675		$	55,275

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


Three Months Ended							Specialty			Corporate
March 31, 2008	Consolidated			FNT			Insurance			and Other
Gross operating revenue	$	1,086,663		$	970,717			84,827			31,119

Interest and investment income		43,701			38,392			3,579			1,730
Realized gains and losses		8,477			2,453			93			5,931

Total revenue		1,138,841			1,011,562			88,499			38,780

Personnel costs		361,878			334,321			11,340			16,217
Other operating expenses		267,870			208,075			33,154			26,641
Agent commissions		328,009			328,009			—			—
Depreciation and amortization		36,895			30,089			1,510			5,296
Claim loss expense		87,505			54,613			32,892			—
Interest expense		18,636			2,410			184			16,042

Total expenses		1,100,793			957,517			79,080			64,196

Pretax earnings		38,048			54,045			9,419			(25,416	)

Pretax margin		3.3	%		5.3	%		10.6	%		—

Open orders		562,200			562,200			—			—
Closed orders		307,800			307,800			—			—


Three Months Ended							Specialty			Corporate
March 31, 2007	Consolidated			FNT			Insurance			and Other
Gross operating revenue	$	1,312,721		$	1,200,916		$	94,998		$	16,807

Interest and investment income		49,959			42,009			4,003			3,947
Realized gains and losses		6,382			3,161			(31	)		3,252

Total revenue		1,369,062			1,246,086			98,970			24,006

Personnel costs		435,260			410,573			11,599			13,088
Other operating expenses		234,441			198,408			21,052			14,981
Agent commissions		420,157			420,051			—			106
Depreciation and amortization		29,354			26,917			1,558			879
Claim loss expense		110,986			72,056			38,930			—
Interest expense		11,977			3,309			405			8,263

Total expenses		1,242,175			1,131,314			73,544			37,317

Pretax earnings		126,887			114,772			25,426			(13,311	)

Pretax margin		9.3	%		9.2	%		25.7	%		—

Open orders		652,400			652,400			—			—
Closed orders		390,400			390,400			—			—

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


	March 31,		December 31,
	2008		2007
	(Unaudited)
Cash and investment portfolio	$	4,532,380	$	4,671,383
Goodwill		1,338,571		1,339,705
Title Plant		332,768		331,888
Total assets		7,475,348		7,587,853
Notes payable		1,182,299		1,167,739
Reserve for claim losses		1,395,858		1,419,910
Secured trust deposits		702,265		689,935
Total stockholders’ equity		3,231,074		3,244,088
Book value per share		15.11		15.23

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