JACKSONVILLE, Fla., Nov. 6, 2024
/PRNewswire/ -- Fidelity National Financial, Inc. (NYSE:FNF) ("FNF"
or the "Company"), a leading provider of title insurance and
transaction services to the real estate and mortgage industries and
a leading provider of insurance solutions serving retail annuity
and life customers and institutional clients through its
majority-owned, publicly traded subsidiary F&G Annuities &
Life, Inc. (NYSE:FG) ("F&G"), today reported financial results
for the third quarter ended September 30, 2024.
Net earnings attributable to common shareholders for
the third quarter were $266 million,
or $0.97 per diluted share (per
share), compared to $426 million, or
$1.57 per share, for the third
quarter of 2023. Net earnings attributable to common shareholders
include mark-to-market effects and non-recurring items; all of
which are excluded from adjusted net earnings attributable to
common shareholders.
Adjusted net earnings attributable to common shareholders
(adjusted net earnings) for the third quarter were
$356 million, or $1.30 per share, compared to $333 million, or $1.23 per share, for the third quarter of
2023.
- The Title Segment contributed $244
million, in line with $245
million for the third quarter of 2023
- The F&G Segment contributed $135
million, compared to $102
million for the third quarter of 2023, including alternative
investment returns below our long-term expectations of $35 million and net significant income items of
$16 million. Please see "Segment
Financial Results" for F&G under "Non-GAAP Measures and Other
Information" for further explanation
- The Corporate Segment had adjusted net earnings of $3 million before eliminating $26 million of dividend income from F&G in
the consolidated financial statements, compared to $8 million for the third quarter of 2023 before
eliminating $22 million of dividend
income from F&G in the consolidated financial statements
Company Highlights
- Strong Title Segment revenue and margin; continue to
successfully navigate current market: For the Title Segment,
total revenue of $2.1 billion for the
quarter, a 12% increase over $1.9
billion in the third quarter of 2023. Total revenue,
excluding recognized gains and losses, of $2.0 billion for the third quarter, a 6% increase
over $1.9 billion in the third
quarter of 2023. Adjusted pre-tax title margin was 15.9% for the
quarter, compared to 16.2% in the third quarter of 2023
- F&G Segment robust sales growth across multi-channel
platform drove record assets under management: For the F&G
Segment, gross sales of $3.9 billion
for the third quarter increased 39% over the third quarter of 2023.
F&G achieved record assets under management before flow
reinsurance of $62.9 billion at the
end of the third quarter, an increase of 20% over the third quarter
of 2023
- Sustainable common dividend backed by strong balance
sheet: FNF paid common dividends of $0.48 per share for $130
million and ended the third quarter with $822 million in cash and short-term liquid
investments at the holding company
William P. Foley, II, Chairman,
commented, "Our Title business continues to outperform in the
current market and delivered an industry leading adjusted pre-tax
title margin of 15.9% for the third quarter. We are well
positioned for a rebound in transactional levels and we continue to
build and expand the business for the long-term. F&G
continues to benefit as consumers want to secure the relatively
higher interest rates, guaranteed tax deferred growth and principal
protection that annuities provide. As a result, F&G has
profitably grown assets under management before flow reinsurance to
a record $62.9 billion at the end of
the third quarter, driven by gross sales of $3.9 billion, an increase of 39% over the third
quarter of 2023 with a record level of retail sales. The
F&G Segment's earnings contribution to FNF was 39% for the
first nine months of 2024, providing an important complement to our
Title business. Taken together, our business is performing at
a high level reflecting both our momentum and successful execution
to deliver strong results."
Summary Financial Results
|
(In millions, except
per share data)
|
Three Months
Ended
|
Year to
Date
|
|
September 30,
2024
|
|
September 30,
2023
|
2024
|
|
2023
|
|
Total
revenue
|
$ 3,603
|
|
$ 2,778
|
$
10,060
|
|
$
8,320
|
|
F&G total gross
sales1
|
$ 3,878
|
|
$ 2,781
|
$
11,793
|
|
$
9,070
|
|
F&G assets under
management (AUM)1
|
$
52,464
|
|
$
47,103
|
$
52,464
|
|
$
47,103
|
|
F&G AUM before flow
reinsurance1
|
$
62,875
|
|
$
52,577
|
$
62,875
|
|
$
52,577
|
|
Total assets
|
$
94,672
|
|
$
74,002
|
$
94,672
|
|
$
74,002
|
|
Adjusted pre-tax title
margin
|
15.9 %
|
|
16.2 %
|
14.5 %
|
|
14.3 %
|
|
Net earnings
attributable to common shareholders
|
$
266
|
|
$
426
|
$ 820
|
|
$ 586
|
|
Net earnings per share
attributable to common shareholders
|
$
0.97
|
|
$
1.57
|
$ 3.00
|
|
$ 2.16
|
|
Adjusted net
earnings1
|
$
356
|
|
$
333
|
$ 900
|
|
$ 758
|
|
Adjusted net earnings
per share1
|
$
1.30
|
|
$
1.23
|
$ 3.30
|
|
$ 2.80
|
|
Weighted average common
diluted shares
|
273
|
|
271
|
273
|
|
271
|
|
Total common shares
outstanding
|
274
|
|
272
|
274
|
|
272
|
|
1 See
definition of non-GAAP measures below
|
Segment Financial Results
Title Segment
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.
Mike Nolan, Chief Executive
Officer, said, "We continue to successfully navigate the low
transactional environment, and delivered adjusted pre-tax earnings
in Title of $323 million and an
industry leading adjusted pre-tax title margin of 15.9% for the
third quarter. While we saw limited impact in the third
quarter from lower mortgage rates, we are poised to capture the
upside when mortgage rates trend lower given the scale and
efficiencies of our diversified national footprint. We have
continued to invest in our business despite the challenging real
estate market -- actively recruiting talent to drive revenue,
making strategic acquisitions and investing in technology, all
while maintaining industry leading margins. We firmly believe
in the long-term value of the title insurance business, regardless
of the cyclical nature of the real estate market."
Third Quarter 2024 Highlights
- Total revenue of $2.1
billion, compared with $1.9
billion in the third quarter of 2023
- Total revenue, excluding recognized gains and losses, of
$2.0 billion, a 6% increase over the
third quarter of 2023
- Direct title premiums of $571
million, a 9% increase over third quarter of 2023
- Agency title premiums of $789
million, an 8% increase over third quarter of 2023
- Commercial revenue of $290
million, a 10% increase over third quarter of 2023
- Purchase orders opened increased 1% on a daily basis
over the third quarter of 2023, and purchase orders closed
decreased 2% on a daily basis from the third quarter of 2023
- Refinance orders opened increased 46% on a daily basis
and refinance orders closed increased 17% on a daily basis over the
third quarter of 2023
- Commercial orders opened increased 3% and commercial
orders closed increased 1% over the third quarter of 2023
- Total fee per file of $3,708 for the third quarter, a 2% increase over
the third quarter of 2023
Third Quarter 2024 Financial Results
- Pre-tax title margin of 17.7% and industry leading
adjusted pre-tax title margin of 15.9% for the third quarter
of 2024, compared to 13.2% and 16.2%, respectively, for the third
quarter of 2023
- Pre-tax earnings from continuing operations in Title for
the third quarter of $372 million,
compared with $248 million for the
third quarter of 2023
- Adjusted pre-tax earnings in Title for the third quarter
of $323 million, compared with
$311 million for the third quarter of
2023
F&G Segment
This segment consists of
operations of FNF's majority-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.
Chris Blunt, Chief Executive
Officer, commented, "We have profitably grown assets under
management before flow reinsurance to a record $62.9 billion at the end of the third
quarter. Gross sales of $3.9
billion increased 39% over the third quarter of 2023,
boosted by record retail sales of $3.5
billion, nearly double the prior year quarter. Our
retail sales continue to surge driven by favorable market
conditions and a strong demand for retirement savings products, and
we are seeing a healthy PRT pipeline with some significant early
wins in the fourth quarter. I am confident in our ability to
expand our margin, even in a lower rate environment, and we will
continue to benefit from our accretive flow reinsurance and owned
distribution strategies, setting F&G apart. Our great
results through the first nine months of the year have positioned
us well for the remainder of the year and we continue to make
strong progress toward our Investor Day targets."
Third Quarter 2024
- Robust profitable gross sales: Gross sales of
$3.9 billion for the third quarter,
an increase of 39% over the third quarter of 2023, primarily driven
by record retail sales
- Record Retail channel sales of $3.5 billion for the third quarter, an increase
of 84% over the third quarter of 2023, driven by favorable market
conditions and strong demand for retirement savings products
- Institutional market sales of nearly $0.4 billion of pension risk transfer for the
third quarter, compared to $0.9
billion of pension risk transfer and funding agreements for
third quarter of 2023; institutional sales are opportunistic and
volumes vary quarter to quarter
- Net sales of $2.4 billion
for the third quarter, an increase of 4% over the third quarter of
2023
- Record AUM before flow reinsurance of $62.9 billion at the end of the third quarter
increased 20% over the third quarter of 2023. This included record
AUM of $52.5 billion, an increase of
11% from the third quarter of 2023, driven by retained new business
flows and net debt and equity proceeds over the past twelve
months
- Net loss attributable to common shareholders for F&G
Segment of $5 million for the
third quarter due to unfavorable mark-to-market movement, compared
to net earnings of $259 million for
the third quarter of 2023 which included favorable mark-to-market
movement
- Adjusted net earnings attributable to common shareholders
for F&G Segment of $135
million for the third quarter, compared to $102 million for the third quarter of 2023
- F&G's adjusted net earnings reflect alternatives investment
portfolio short-term mark-to-market movement that differs from
long-term return expectation. The third quarter of 2024 includes
short term investment income from alternative investments and
$16 million of net significant income
items, whereas the third quarter of 2023 included short term
investment income from alternative investments and no significant
income or expense items
- As compared to the prior year quarter, adjusted net earnings
reflect asset growth, margin diversification from accretive flow
reinsurance fees and owned distribution margin, disciplined expense
management and higher interest expense due to planned capital
market activity
- Please see "Segment Financial Results" for F&G under
"Non-GAAP Measures and Other Information" for further
explanation
Conference Call
We will host a call with investors and
analysts to discuss FNF's third quarter 2024 results on
Thursday, November 7, 2024, beginning
at 11:00 a.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.
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
insurance solutions serving retail annuity and life customers and
institutional clients and is headquartered in Des Moines, Iowa. For more information, please
visit 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, 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: changes in general economic, business, political
crisis, war and pandemic conditions, including ongoing geopolitical
conflicts; 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, including regulation of title insurance and
services and privacy and data protection laws; systems damage,
failures, interruptions, cyberattacks and intrusions, or
unauthorized data disclosures; 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.
FNF-E
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
2024
|
|
|
|
|
|
|
Direct title
premiums
|
|
$
571
|
|
$
571
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
789
|
|
789
|
|
—
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,159
|
|
581
|
|
526
|
|
52
|
|
—
|
|
Total title and
escrow
|
|
2,519
|
|
1,941
|
|
526
|
|
52
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
815
|
|
92
|
|
712
|
|
37
|
|
(26)
|
|
Recognized gains and
losses, net
|
|
269
|
|
63
|
|
206
|
|
—
|
|
—
|
|
Total
revenue
|
|
3,603
|
|
2,096
|
|
1,444
|
|
89
|
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
810
|
|
688
|
|
80
|
|
42
|
|
—
|
|
Agent
commissions
|
|
612
|
|
612
|
|
—
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
396
|
|
328
|
|
45
|
|
23
|
|
—
|
|
Benefits & other
policy reserve changes
|
|
1,095
|
|
—
|
|
1,095
|
|
—
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
71
|
|
—
|
|
71
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
|
189
|
|
35
|
|
147
|
|
7
|
|
—
|
|
Provision for title
claim losses
|
|
61
|
|
61
|
|
—
|
|
—
|
|
—
|
|
Interest
expense
|
|
56
|
|
—
|
|
36
|
|
20
|
|
—
|
|
Total
expenses
|
|
3,290
|
|
1,724
|
|
1,474
|
|
92
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
313
|
|
$
372
|
|
$
(30)
|
|
$
(3)
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
44
|
|
73
|
|
(25)
|
|
(4)
|
|
—
|
|
Earnings (loss)
from equity investments
|
|
2
|
|
2
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
5
|
|
5
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
266
|
|
$
296
|
|
$
(5)
|
|
$
1
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
272
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
273
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
2024
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
266
|
|
$
296
|
|
$
(5)
|
|
$
1
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
313
|
|
$
372
|
|
$
(30)
|
|
$
(3)
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
(17)
|
|
(63)
|
|
46
|
|
—
|
|
—
|
|
Market related
liability adjustments
|
|
145
|
|
—
|
|
145
|
|
—
|
|
—
|
|
Purchase price
amortization
|
|
39
|
|
14
|
|
22
|
|
3
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
480
|
|
$
323
|
|
$
183
|
|
$
—
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
167
|
|
$
(49)
|
|
$
213
|
|
$
3
|
|
$
—
|
|
Income taxes on
non-GAAP adjustments
|
|
(33)
|
|
12
|
|
(44)
|
|
(1)
|
|
—
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(29)
|
|
—
|
|
(29)
|
|
—
|
|
—
|
|
Deferred tax
asset valuation allowance
|
|
(15)
|
|
(15)
|
|
—
|
|
—
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
90
|
|
$
(52)
|
|
$
140
|
|
$
2
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
356
|
|
$
244
|
|
$
135
|
|
$
3
|
|
$
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
1.30
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
|
Direct title
premiums
|
|
$
524
|
|
$
524
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
728
|
|
728
|
|
—
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,196
|
|
577
|
|
582
|
|
37
|
|
—
|
|
Total title and
escrow
|
|
2,448
|
|
1,829
|
|
582
|
|
37
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
686
|
|
92
|
|
578
|
|
38
|
|
(22)
|
|
Recognized gains and
losses, net
|
|
(356)
|
|
(46)
|
|
(309)
|
|
(1)
|
|
—
|
|
Total
revenue
|
|
2,778
|
|
1,875
|
|
851
|
|
74
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
734
|
|
654
|
|
58
|
|
22
|
|
—
|
|
Agent
commissions
|
|
564
|
|
564
|
|
—
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
380
|
|
313
|
|
38
|
|
29
|
|
—
|
|
Benefits & other
policy reserve changes
|
|
292
|
|
—
|
|
292
|
|
—
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(49)
|
|
—
|
|
(49)
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
|
153
|
|
39
|
|
108
|
|
6
|
|
—
|
|
Provision for title
claim losses
|
|
57
|
|
57
|
|
—
|
|
—
|
|
—
|
|
Interest
expense
|
|
44
|
|
—
|
|
24
|
|
20
|
|
—
|
|
Total
expenses
|
|
2,175
|
|
1,627
|
|
471
|
|
77
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
603
|
|
$
248
|
|
$
380
|
|
$
(3)
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
141
|
|
73
|
|
74
|
|
(6)
|
|
—
|
|
Earnings from
equity investments
|
|
15
|
|
15
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
51
|
|
5
|
|
47
|
|
(1)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
426
|
|
$
185
|
|
$
259
|
|
$
4
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
270
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
271
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
THIRD QUARTER
SEGMENT INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
426
|
|
$
185
|
|
$
259
|
|
$
4
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
603
|
|
$
248
|
|
$
380
|
|
$
(3)
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
43
|
|
46
|
|
(4)
|
|
1
|
|
—
|
|
Market related
liability adjustments
|
|
(237)
|
|
—
|
|
(237)
|
|
—
|
|
—
|
|
Purchase price
amortization
|
|
26
|
|
17
|
|
5
|
|
4
|
|
—
|
|
Transaction
costs
|
|
1
|
|
—
|
|
1
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
436
|
|
$
311
|
|
$
145
|
|
$
2
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
(167)
|
|
$
63
|
|
$
(235)
|
|
$
5
|
|
$
—
|
|
Income taxes on
non-GAAP adjustments
|
|
33
|
|
(15)
|
|
49
|
|
(1)
|
|
—
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
29
|
|
—
|
|
29
|
|
—
|
|
—
|
|
Deferred tax
asset valuation allowance
|
|
12
|
|
12
|
|
—
|
|
—
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
(93)
|
|
$
60
|
|
$
(157)
|
|
$
4
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
333
|
|
$
245
|
|
$
102
|
|
$
8
|
|
$
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2024
|
|
|
|
|
|
|
Direct title
premiums
|
|
$
1,575
|
|
$
1,575
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
2,166
|
|
2,166
|
|
—
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
3,555
|
|
1,636
|
|
1,772
|
|
147
|
|
—
|
|
Total title and
escrow
|
|
7,296
|
|
5,377
|
|
1,772
|
|
147
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
2,308
|
|
262
|
|
2,012
|
|
114
|
|
(80)
|
|
Recognized gains and
losses, net
|
|
456
|
|
51
|
|
401
|
|
4
|
|
—
|
|
Total
revenue
|
|
10,060
|
|
5,690
|
|
4,185
|
|
265
|
|
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,316
|
|
1,986
|
|
215
|
|
115
|
|
—
|
|
Agent
commissions
|
|
1,681
|
|
1,681
|
|
—
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
1,152
|
|
924
|
|
149
|
|
79
|
|
—
|
|
Benefits & other
policy reserve changes
|
|
2,864
|
|
—
|
|
2,864
|
|
—
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
80
|
|
—
|
|
80
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
|
545
|
|
106
|
|
417
|
|
22
|
|
—
|
|
Provision for title
claim losses
|
|
168
|
|
168
|
|
—
|
|
—
|
|
—
|
|
Interest
expense
|
|
152
|
|
—
|
|
94
|
|
58
|
|
—
|
|
Total
expenses
|
|
8,958
|
|
4,865
|
|
3,819
|
|
274
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,102
|
|
$
825
|
|
$
366
|
|
$
(9)
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
223
|
|
190
|
|
51
|
|
(18)
|
|
—
|
|
Earnings (loss)
from equity investments
|
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
63
|
|
12
|
|
51
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
820
|
|
$
627
|
|
$
264
|
|
$
9
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
271
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
273
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2024
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
820
|
|
$
627
|
|
$
264
|
|
$
9
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
1,102
|
|
$
825
|
|
$
366
|
|
$
(9)
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
5
|
|
(51)
|
|
60
|
|
(4)
|
|
—
|
|
Market related
liability adjustments
|
|
19
|
|
—
|
|
19
|
|
—
|
|
—
|
|
Purchase price
amortization
|
|
115
|
|
44
|
|
63
|
|
8
|
|
—
|
|
Transaction
costs
|
|
(2)
|
|
—
|
|
(3)
|
|
1
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,239
|
|
$
818
|
|
$
505
|
|
$
(4)
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
137
|
|
$
(7)
|
|
$
139
|
|
$
5
|
|
$
—
|
|
Income taxes on
non-GAAP adjustments
|
|
(26)
|
|
2
|
|
(27)
|
|
(1)
|
|
—
|
|
Deferred tax
asset valuation allowance
|
|
(7)
|
|
(7)
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(24)
|
|
—
|
|
(24)
|
|
—
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
80
|
|
$
(12)
|
|
$
88
|
|
$
4
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
900
|
|
$
615
|
|
$
352
|
|
$
13
|
|
$
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
3.30
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
|
|
|
|
F&G
|
|
|
|
|
|
Nine Months
Ended
|
|
Consolidated
|
|
Title
|
|
|
Corporate and
Other
|
|
Elimination
|
|
September 30,
2023
|
|
|
|
|
|
|
Direct title
premiums
|
|
$
1,493
|
|
$
1,493
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Agency title
premiums
|
|
1,991
|
|
1,991
|
|
—
|
|
—
|
|
—
|
|
Escrow, title related
and other fees
|
|
3,288
|
|
1,629
|
|
1,523
|
|
136
|
|
—
|
|
Total title and
escrow
|
|
6,772
|
|
5,113
|
|
1,523
|
|
136
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,915
|
|
252
|
|
1,622
|
|
84
|
|
(43)
|
|
Recognized gains and
losses, net
|
|
(367)
|
|
(74)
|
|
(257)
|
|
(36)
|
|
—
|
|
Total
revenue
|
|
8,320
|
|
5,291
|
|
2,888
|
|
184
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
2,166
|
|
1,908
|
|
167
|
|
91
|
|
—
|
|
Agent
commissions
|
|
1,534
|
|
1,534
|
|
—
|
|
—
|
|
—
|
|
Other operating
expenses
|
|
1,134
|
|
939
|
|
107
|
|
88
|
|
—
|
|
Benefits & other
policy reserve changes
|
|
1,921
|
|
—
|
|
1,921
|
|
—
|
|
—
|
|
Market risk benefit
(gains) losses
|
|
(20)
|
|
—
|
|
(20)
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
|
438
|
|
115
|
|
302
|
|
21
|
|
—
|
|
Provision for title
claim losses
|
|
157
|
|
157
|
|
—
|
|
—
|
|
—
|
|
Interest
expense
|
|
129
|
|
—
|
|
71
|
|
58
|
|
—
|
|
Total
expenses
|
|
7,459
|
|
4,653
|
|
2,548
|
|
258
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
861
|
|
$
638
|
|
$
340
|
|
$
(74)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
245
|
|
165
|
|
99
|
|
(19)
|
|
—
|
|
Earnings from
equity investments
|
|
16
|
|
16
|
|
—
|
|
—
|
|
—
|
|
Non-controlling
interests
|
|
46
|
|
11
|
|
36
|
|
(1)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
586
|
|
$
478
|
|
$
205
|
|
$
(54)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
2.17
|
|
|
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
270
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
271
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
YTD SEGMENT
INFORMATION
(In millions, except
per share data)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
Elimination
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
586
|
|
$
478
|
|
$
205
|
|
$
(54)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
861
|
|
$
638
|
|
$
340
|
|
$
(74)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
210
|
|
74
|
|
100
|
|
36
|
|
—
|
|
Market related
liability adjustments
|
|
(95)
|
|
—
|
|
(95)
|
|
—
|
|
—
|
|
Purchase price
amortization
|
|
81
|
|
54
|
|
16
|
|
11
|
|
—
|
|
Transaction
costs
|
|
8
|
|
—
|
|
3
|
|
5
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,065
|
|
$
766
|
|
$
364
|
|
$
(22)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
204
|
|
$
128
|
|
$
24
|
|
$
52
|
|
$
—
|
|
Income taxes on
non-GAAP adjustments
|
|
(48)
|
|
(31)
|
|
(5)
|
|
(12)
|
|
—
|
|
Deferred tax
asset valuation allowance
|
|
19
|
|
11
|
|
—
|
|
8
|
|
—
|
|
Non-controlling
interest on non-GAAP adjustments
|
|
(3)
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
Total non-GAAP
adjustments
|
|
$
172
|
|
$
108
|
|
$
16
|
|
$
48
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
758
|
|
$
586
|
|
$
221
|
|
$
(6)
|
|
$
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
2.80
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
SUMMARY BALANCE
SHEET INFORMATION
(In
millions)
|
|
|
|
September
30,
2024
|
|
December 31,
2023
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash and investment
portfolio
|
|
|
$
67,957
|
|
|
$
58,816
|
|
Goodwill
|
|
|
5,272
|
|
|
4,830
|
|
Title plant
|
|
|
422
|
|
|
418
|
|
Total assets
|
|
|
94,672
|
|
|
80,614
|
|
Notes
payable
|
|
|
4,186
|
|
|
3,887
|
|
Reserve for title claim
losses
|
|
|
1,720
|
|
|
1,770
|
|
Secured trust
deposits
|
|
|
766
|
|
|
731
|
|
Accumulated other
comprehensive (loss) earnings
|
|
|
(1,423)
|
|
|
(2,119)
|
|
Non-controlling
interests
|
|
|
820
|
|
|
552
|
|
Total equity and
non-controlling interests
|
|
|
8,902
|
|
|
7,460
|
|
Total equity
attributable to common shareholders
|
|
|
8,082
|
|
|
6,908
|
Non-GAAP Measures and Other Information
Title Segment
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,
2024
|
September 30,
2023
|
|
|
September 30,
2024
|
September 30,
2023
|
|
Pre-tax
earnings
|
$
372
|
$
248
|
|
|
$
825
|
$
638
|
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
(63)
|
46
|
|
|
(51)
|
74
|
|
Purchase price
amortization
|
14
|
17
|
|
|
44
|
54
|
|
Total non-GAAP
adjustments
|
(49)
|
63
|
|
|
(7)
|
128
|
|
Adjusted pre-tax
earnings
|
$
323
|
$
311
|
|
|
$
818
|
$
766
|
|
Adjusted pre-tax
margin
|
15.9 %
|
16.2 %
|
|
|
14.5 %
|
14.3 %
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
QUARTERLY OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Q3
2024
|
|
Q2
2024
|
|
Q1
2024
|
|
Q4
2023
|
|
Q3
2023
|
|
Q2
2023
|
|
Q1
2023
|
|
Q4
2022
|
|
Quarterly Opened
Orders ('000's except % data)
|
|
Total opened
orders*
|
|
352
|
|
344
|
|
315
|
|
257
|
|
318
|
|
347
|
|
308
|
|
266
|
|
Total opened orders per
day*
|
|
5.5
|
|
5.5
|
|
5.1
|
|
4.1
|
|
5.0
|
|
5.4
|
|
5.0
|
|
4.3
|
|
Purchase % of opened
orders
|
|
73 %
|
|
80 %
|
|
79 %
|
|
78 %
|
|
80 %
|
|
79 %
|
|
78 %
|
|
76 %
|
|
Refinance % of opened
orders
|
|
27 %
|
|
20 %
|
|
21 %
|
|
22 %
|
|
20 %
|
|
21 %
|
|
22 %
|
|
24 %
|
|
Total closed
orders*
|
|
232
|
|
229
|
|
186
|
|
192
|
|
224
|
|
233
|
|
188
|
|
216
|
|
Total closed orders per
day*
|
|
3.6
|
|
3.6
|
|
3.0
|
|
3.1
|
|
3.6
|
|
3.6
|
|
3.0
|
|
3.5
|
|
Purchase % of closed
orders
|
|
77 %
|
|
81 %
|
|
79 %
|
|
80 %
|
|
80 %
|
|
81 %
|
|
78 %
|
|
76 %
|
|
Refinance % of closed
orders
|
|
23 %
|
|
19 %
|
|
21 %
|
|
20 %
|
|
20 %
|
|
19 %
|
|
22 %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(millions, except orders in '000's)
|
|
Total commercial
revenue
|
|
$ 290
|
|
$
273
|
|
$ 238
|
|
$
294
|
|
$ 263
|
|
$
263
|
|
$ 241
|
|
$
344
|
|
Total commercial opened
orders
|
|
50.8
|
|
50.7
|
|
48.7
|
|
43.7
|
|
49.1
|
|
50.2
|
|
48.5
|
|
44.9
|
|
Total commercial closed
orders
|
|
25.9
|
|
25.7
|
|
24.3
|
|
26.3
|
|
25.6
|
|
27.7
|
|
24.7
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$ 151
|
|
$
145
|
|
$ 123
|
|
$
164
|
|
$ 131
|
|
$
132
|
|
$ 123
|
|
$
177
|
|
National commercial
opened orders
|
|
21.9
|
|
21.4
|
|
19.4
|
|
18.2
|
|
19.2
|
|
19.5
|
|
18.8
|
|
17.8
|
|
National commercial
closed orders
|
|
10.4
|
|
9.8
|
|
9.2
|
|
10.1
|
|
9.4
|
|
10.1
|
|
8.7
|
|
11.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per
File
|
|
Fee per file
|
|
$
3,708
|
|
$
3,759
|
|
$
3,555
|
|
$
3,806
|
|
$
3,618
|
|
$
3,598
|
|
$
3,446
|
|
$
3,649
|
|
Residential fee per
file
|
|
$
2,881
|
|
$
2,995
|
|
$
2,746
|
|
$
2,889
|
|
$
2,861
|
|
$
2,897
|
|
$
2,601
|
|
$
2,542
|
|
Total commercial fee
per file
|
|
$ 11,200
|
|
$
10,600
|
|
$
9,800
|
|
$
11,200
|
|
$ 10,300
|
|
$
9,500
|
|
$
9,800
|
|
$
11,300
|
|
National commercial fee
per file
|
|
$ 14,500
|
|
$
14,800
|
|
$ 13,400
|
|
$
16,300
|
|
$ 14,000
|
|
$
13,000
|
|
$
14,100
|
|
$
14,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Staffing
|
|
Total field operations
employees
|
|
10,400
|
|
10,300
|
|
10,000
|
|
9,900
|
|
10,400
|
|
10,600
|
|
10,400
|
|
10,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual title claims
paid ($ millions)
|
|
$
64
|
|
$
70
|
|
$
70
|
|
$
64
|
|
$
69
|
|
$
67
|
|
$
62
|
|
$
79
|
Title Segment (continued)
|
FIDELITY NATIONAL
FINANCIAL, INC.
MONTHLY TITLE ORDER
STATISTICS
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
|
Month
|
|
/ (%
Purchase)
|
|
/ (%
Purchase)
|
|
July 2024
|
|
|
115,000
|
78 %
|
|
|
79,000
|
80 %
|
|
August 2024
|
|
|
117,000
|
73 %
|
|
|
79,000
|
78 %
|
|
September
2024
|
|
|
120,000
|
68 %
|
|
|
74,000
|
74 %
|
|
|
|
|
|
|
|
|
Third Quarter
2024
|
|
|
352,000
|
73 %
|
|
|
232,000
|
77 %
|
|
|
|
|
|
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
|
Month
|
|
/ (%
Purchase)
|
|
|
/ (%
Purchase)
|
|
July 2023
|
|
|
107,000
|
80 %
|
|
|
74,000
|
81 %
|
|
August 2023
|
|
|
114,000
|
79 %
|
|
|
80,000
|
80 %
|
|
September
2023
|
|
|
97,000
|
79 %
|
|
|
70,000
|
80 %
|
|
|
|
|
|
|
|
|
Third Quarter
2023
|
|
|
318,000
|
80 %
|
|
|
224,000
|
80 %
|
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
F&G Segment
The table below reconciles net earnings (loss) attributable to
common shareholders to adjusted net earnings attributable to common
shareholders. The F&G Segment is reported net of
noncontrolling minority interest.
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
(Dollars in
millions)
|
September 30,
2024
|
|
September 30,
2023
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Net earnings
attributable to common shareholders
|
$
(5)
|
|
$
259
|
|
|
$
264
|
|
$
205
|
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
|
Recognized (gains)
losses, net
|
46
|
|
(4)
|
|
|
60
|
|
100
|
|
Market related
liability adjustments
|
145
|
|
(237)
|
|
|
19
|
|
(95)
|
|
Purchase price
amortization
|
22
|
|
5
|
|
|
63
|
|
16
|
|
Transaction
costs
|
—
|
|
1
|
|
|
(3)
|
|
3
|
|
Income taxes on
non-GAAP adjustments
|
(44)
|
|
49
|
|
|
(27)
|
|
(5)
|
|
Non-controlling
interest on non-GAAP adjustments
|
(29)
|
|
29
|
|
|
(24)
|
|
(3)
|
|
Adjusted net
earnings (loss) attributable to common shareholders(1)
|
$
135
|
|
$
102
|
|
|
$
352
|
|
$
221
|
- Adjusted net earnings of $135
million for the third quarter of 2024 include
$111 million, or $0.40 per share, of investment income from
alternative investments, $18 million,
or $0.07 per share, of CLO redemption
gains and bond prepay income, and $12
million, or $0.04 per share,
of tax valuation allowance benefit; partially offset by
$14 million, or $0.05 per share, of net expense from actuarial
assumption updates. Alternative investments investment income based
on management's long-term expected return of approximately 10% was
$146 million, or $0.53 per share.
- Adjusted net earnings of $102
million for the third quarter of 2023 included
$97 million, or $0.36 per share, of investment income from
alternative investments. Alternative investments investment income
based on management's long-term expected return of approximately
10% was $121 million, or $0.45 per share.
- Adjusted net earnings of $352 million for the nine
months ended September 30, 2024
include $317 million, or $1.16 per share, of investment income from
alternative investments, $26 million
or $0.10 per share of CLO redemption
gains and bond prepay income, and $12
million, or $0.04 per share of
tax valuation allowance benefit; partially offset by $27 million, or $0.10 per share, of net expense from actuarial
assumption and model updates. Alternative investments investment
income based on management's long-term expected return of
approximately 10% was $413 million,
or $1.51 per share.
- Adjusted net earnings of $221
million for the nine months ended September 30, 2023 included $249 million, or $0.92 per share, of investment income from
alternative investments and $4
million, or $0.01 per share,
of bond prepay income, partially offset by $31 million, or $0.11 per share, tax valuation allowance expense.
Alternative investments investment income based on management's
long-term expected return of approximately 10% was $348 million, or $1.28 per share.
|
Footnotes:
|
|
1.
|
Non-GAAP financial
measure. See the Non-GAAP Measures section below for additional
information.
|
The table below provides a summary of sales highlights.
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
(In
millions)
|
|
September 30,
2024
|
|
September 30,
2023
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Total annuity
sales
|
|
$
3,502
|
|
$
1,858
|
|
|
$
9,389
|
|
$
6,870
|
|
Indexed universal life
sales
|
|
39
|
|
38
|
|
|
125
|
|
117
|
|
Funding agreements
(FABN/FHLB)
|
|
—
|
|
415
|
|
|
1,020
|
|
871
|
|
Pension risk
transfer
|
|
337
|
|
470
|
|
|
1,259
|
|
1,212
|
|
Gross
sales(1)
|
|
$
3,878
|
|
$
2,781
|
|
|
$
11,793
|
|
$
9,070
|
|
Sales attributable to
flow reinsurance to third parties
|
|
(1,492)
|
|
(513)
|
|
|
(3,660)
|
|
(2,381)
|
|
Net
Sales(1)
|
|
$
2,386
|
|
$
2,268
|
|
|
$
8,133
|
|
$
6,689
|
|
Footnotes:
|
|
1.
|
Non-GAAP financial
measure. See the Non-GAAP Measures section below for additional
information.
|
DEFINITIONS
The following represents the definitions of non-GAAP measures
used by the Company.
Adjusted Net Earnings attributable to common
shareholders
Adjusted net earnings attributable to common shareholders is a
non-GAAP economic measure we use to evaluate financial performance
each period. Adjusted net earnings attributable to common
shareholders is calculated by adjusting net earnings (loss)
attributable to common shareholders to eliminate:
i. Recognized (gains) and losses, net: the
impact of net investment gains/losses, including changes in
allowance for expected credit losses and other than temporary
impairment ("OTTI") losses, recognized in operations; and the
effects of changes in fair value of the reinsurance related
embedded derivative and other derivatives, including interest rate
swaps and forwards;
ii. Market related liability adjustments: the
impacts related to changes in the fair value, including both
realized and unrealized gains and losses, of index product related
derivatives and embedded derivatives, net of hedging cost; the
impact of initial pension risk transfer deferred profit liability
losses, including amortization from previously deferred pension
risk transfer deferred profit liability losses; and the changes in
the fair value of market risk benefits by deferring current period
changes and amortizing that amount over the life of the market risk
benefit;
iii. Purchase price amortization: the impacts
related to the amortization of certain intangibles (internally
developed software, trademarks and value of distribution asset and
the change in fair value of liabilities recognized as a result of
acquisition activities);
iv. Transaction costs: the impacts related to
acquisition, integration and merger related items;
v. Certain income tax adjustments: the impacts
related to unusual tax items that do not reflect our core operating
performance such as the establishment or reversal of significant
deferred tax asset valuation allowances in our Title and Corporate
and Other segments;
vi. Other "non-recurring," "infrequent" or
"unusual items": Management excludes certain items determined
to be "non-recurring," "infrequent" or "unusual" from adjusted net
earnings when incurred if it is determined these expenses are not a
reflection of the core business and when the nature of the item is
such that it is not reasonably likely to recur within two years
and/or there was not a similar item in the preceding two years;
vii. Non-controlling interest on non-GAAP
adjustments: the portion of the non-GAAP adjustments attributable
to the equity interest of entities that FNF does not wholly
own; and
viii. Income taxes: the income tax impact
related to the above-mentioned adjustments is measured using an
effective tax rate, as appropriate by tax jurisdiction
While these adjustments are an integral part of the overall
performance of F&G, market conditions and/or the non-operating
nature of these items can overshadow the underlying performance of
the core business. Accordingly, management considers this to be a
useful measure internally and to investors and analysts in
analyzing the trends of our operations. Adjusted net earnings
should not be used as a substitute for net earnings (loss).
However, we believe the adjustments made to net earnings (loss) in
order to derive adjusted net earnings provide an understanding of
our overall results of operations.
Assets Under Management (AUM)
AUM is comprised of the following components and is reported net
of reinsurance assets ceded in accordance with GAAP:
i. total invested assets at amortized cost,
excluding investments in unconsolidated affiliates, owned
distribution and derivatives;
ii. investments in unconsolidated affiliates at
carrying value;
iii. related party loans and investments;
iv. accrued investment income;
v. the net payable/receivable for the
purchase/sale of investments; and
vi. cash and cash equivalents excluding
derivative collateral at the end of the period.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
size of our investment portfolio that is retained.
AUM before Flow Reinsurance
AUM before Flow Reinsurance is comprised of components
consistent with AUM, but also includes flow reinsured assets.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
size of our investment portfolio including reinsured assets.
Average Assets Under Management (AAUM)
AAUM is calculated as AUM at the beginning of the period and the
end of each month in the period, divided by the total number of
months in the period plus one.
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
rate of return on retained assets.
Sales
Annuity, IUL, funding agreement and non-life contingent PRT
sales are not derived from any specific GAAP income statement
accounts or line items and should not be viewed as a substitute for
any financial measure determined in accordance with GAAP. Sales
from these products are recorded as deposit liabilities (i.e.,
contractholder funds) within the Company's consolidated financial
statements in accordance with GAAP. Life contingent PRT sales are
recorded as premiums in revenues within the consolidated financial
statements. Management believes that presentation of sales, as
measured for management purposes, enhances the understanding of our
business and helps depict longer term trends that may not be
apparent in the results of operations due to the timing of sales
and revenue recognition.
View original
content:https://www.prnewswire.com/news-releases/fnf-reports-third-quarter-2024-financial-results-302297924.html
SOURCE Fidelity National Financial, Inc.
