FNF Fidelity National Financial Inc

JACKSONVILLE, Fla., Feb. 5 /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, specialty insurance and claims management services, today reported operating results for the three-month and twelve-month periods ended December 31, 2006. FNF's reported earnings include the financial results of Fidelity National Information Services, Inc. ("FIS"), the former majority-owned subsidiary of FNF, through October 23, 2006, and also include all transaction costs related to the reorganization completed in the fourth quarter of 2006. 4th Quarter 2006 4th Quarter 2005 Total revenue $1.80 billion $2.42 billion Earnings per diluted share $0.34 $0.64 Net earnings $71.2 million $115.2 million Cash flow from operations $122.6 million $272.8 million Twelve Months Twelve Months Ended Ended December 31, 2006 December 31, 2005 Total revenue $9.44 billion $9.65 billion Earnings per diluted share $2.39 $5.43 Net earnings $437.8 million $964.1 million Cash flow from operations $721.1 million $1.28 billion Complete quarterly and annual pro forma financial results for the years 2006 and 2005, which FNF believes are beneficial in analyzing its operations as they are currently organized, are included later in this earnings press release. These pro forma results exclude the financial results of FIS and all transaction costs related to the reorganization completed in the fourth quarter of 2006. The following are summary pro forma results for FNF for the three-month and twelve-month periods ending December 31, 2006 and 2005: 4th Quarter 2006 4th Quarter 2005 Total revenue $1.54 billion $1.76 billion Earnings per diluted share $0.42 $0.86 Net earnings $93.4 million $190.2 million Twelve Months Twelve Months Ended Ended December 31, 2006 December 31, 2005 Total revenue $6.33 billion $6.75 billion Earnings per diluted share $1.94 $2.80 Net earnings $431.4 million $621.7 million The following are summary financial results for the on-going operating segments of FNF for the three-month and twelve-month periods ending December 31, 2006 and 2005: Fidelity National Title Group ("FNT") 4th Quarter 2006 4th Quarter 2005 Total revenue $1.44 billion $1.58 billion Pre-tax earnings $155.7 million $204.9 million Pre-tax margin 10.8% 13.0% Twelve Months Twelve Months Ended Ended December 31, 2006 December 31, 2005 Total revenue $5.90 billion $6.30 billion Pre-tax earnings $650.8 million $868.3 million Pre-tax margin 11.0% 13.8% Month Direct Orders Opened Direct Orders Closing % Closed October 2006 226,900 147,200 65% November 2006 207,100 136,900 66% December 2006 182,800 143,600 79% Fourth Quarter 2006 616,800 427,700 69% Month Direct Orders Opened Direct Orders Closing % Closed October 2005 242,800 181,900 75% November 2005 221,300 168,400 76% December 2005 189,800 167,600 88% Fourth Quarter 2005 653,900 517,900 79% Specialty Insurance 4th Quarter 2006 4th Quarter 2005 Total revenue $94.7 million $184.2 million Pre-tax earnings $5.0 million $93.1 million Pre-tax margin 5.3% 50.5% Twelve Months Twelve Months Ended Ended December 31, 2006 December 31, 2005 Total revenue $410.2 million $438.0 million Pre-tax earnings 72.0 million $133.5 million Pre-tax margin 17.6% 30.5% "2006 was a year in which we continued to actively seek the maximization of the value of FNF for our shareholders," said Chairman and Chief Executive Officer William P. Foley, II. "We announced and completed the reorganization of the company whereby we eliminated the holding company structure and created a set of transactions that allowed our shareholders to receive two distinct securities, FNF and FIS, in a tax efficient manner. Each entity is now a stand-alone public company that is free to pursue its own unique strategy in the interest of maximizing the value of its assets and continuing to create value for its shareholders." "FNF is now primarily composed of the title insurance business, the specialty insurance operations and the 40% ownership stake in the Sedgwick claims management business. In title, we continue to closely monitor order count, headcount and productivity metrics, which allowed us to generate nearly an 11% margin in the fourth quarter, despite an 8.5% decline in revenue compared to the prior year. Specialty insurance revenue and profitability declined from the prior year because the fourth quarter of 2005 included more than $100 million of revenue from the processing of Hurricane Katrina related flood claims. Additionally, fourth quarter profitability in the homeowners business was impacted by a sequential increase in fire and weather related claims, as the provision for homeowners claims was $36 million in the fourth quarter versus $21 million in the third quarter of 2006. Finally, Sedgwick is now more than a $600 million business with attractive EBITDA margins and it is well on its way to achieving the critical mass that will allow us to maximize the value of that asset on behalf of our shareholders." Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, specialty insurance and claims management 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 29 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. More information about FNF can be found at http://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. FIDELITY NATIONAL FINANCIAL, INC. SUMMARY OF EARNINGS (In thousands, except per share amounts and order information) Three months ended Twelve months ended December 31, December 31, 2006 2005 2006 2005 (Unaudited) (Unaudited) Direct title premiums $477,649 $559,102 $1,957,064 $2,261,499 Agency title premiums 651,019 659,357 2,649,136 2,683,545 Total title premiums 1,128,668 1,218,459 4,606,200 4,945,044 Escrow and other title-related fees 253,001 292,550 1,061,469 1,157,022 Total title and escrow 1,381,669 1,511,009 5,667,669 6,102,066 Transaction processing services 261,732 658,204 3,094,370 2,570,372 Specialty insurance 90,543 180,663 394,613 428,939 Interest and investment income 54,050 43,080 208,309 144,966 Realized gains and losses 2,817 18,172 18,562 41,070 Gain on FIS transaction -- -- -- 318,209 Other 11,200 12,312 52,578 48,957 Total revenue 1,802,011 2,423,440 9,436,101 9,654,579 Personnel costs 592,384 828,435 3,225,319 3,224,678 Other operating expenses 368,964 420,102 2,075,101 1,702,352 Agent commissions 497,934 501,920 2,035,423 2,060,467 Depreciation and amortization 55,980 108,081 460,750 406,259 Claim loss expense 129,124 147,236 486,334 480,556 Interest expense 26,436 52,326 209,972 172,327 Total expenses 1,670,822 2,058,100 8,492,899 8,046,639 Earnings before income taxes 131,189 365,340 943,202 1,607,940 Income tax expense 48,802 218,814 350,871 573,391 Minority interest 11,189 31,362 154,570 70,443 Net earnings $71,198 $115,164 $437,761 $964,106 Net earnings per share - basic $0.34 $0.66 $2.40 $5.58 Net earnings per share - diluted $0.34 $0.64 $2.39 $5.43 Weighted average shares - basic 207,420 173,292 182,031 172,839 Weighted average shares - diluted 210,200 178,608 182,861 177,597 Direct operations orders opened 655,500 771,800 3,146,200 3,615,400 Direct operations orders closed 448,800 595,900 2,051,500 2,487,000 FIDELITY NATIONAL FINANCIAL, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Special- Corpor- ty ate Three Months Ended Consolidat- Elimi- FNT FIS Insur- and December 31, 2006 ed nations ance Other Gross operating revenue $1,745,144 ($15,107) $1,399,808 $276,840 $90,543 ($6,940) Interest and investment income 54,050 -- 45,001 6,094 4,105 (1,150) Realized gains and losses 2,817 -- (1,138) (4,151) 67 8,039 Total revenue 1,802,011 (15,107) 1,443,671 278,783 94,715 (51) Personnel costs 592,384 (1,472) 435,085 111,452 11,354 35,965 Other operating expenses 368,964 (7,355) 224,524 103,465 32,317 16,013 Agent commissions 497,934 (6,280) 511,697 -- -- (7,483) Depreciation and amortization 55,980 -- 27,174 25,259 1,576 1,971 Claim loss expense 129,124 -- 85,134 11 43,979 -- Interest expense 26,436 -- 4,320 12,265 464 9,387 Total expenses 1,670,822 (15,107) 1,287,934 252,452 89,690 55,853 Pretax earnings 131,189 -- 155,737 26,331 5,025 (55,904) Pretax margin 7.3% -- 10.8% 9.4% 5.3% -- Open orders 655,500 -- 616,800 38,700 -- -- Closed orders 448,800 -- 427,700 21,100 -- -- Special- Corpor- ty ate Three Months Ended Consolidat- Elimi- FNT FIS Insur- and December 31, 2005 ed nations ance Other Gross operating revenue $2,362,188 ($49,577) $1,526,346 $707,683 $180,663 ($2,927) Interest and investment income 43,080 -- 29,095 1,566 3,521 8,898 Realized gains and losses 18,172 -- 22,660 (813) 11 (3,686) Total revenue 2,423,440 (49,577) 1,578,101 708,436 184,195 2,285 Personnel costs 828,435 -- 481,976 330,115 12,407 3,937 Other operating expenses 420,102 (30,032) 226,977 189,815 31,851 1,491 Agent commissions 501,920 (19,545) 523,652 -- -- (2,187) Depreciation and amortization 108,081 -- 28,898 77,752 1,349 82 Claim loss expense 147,236 -- 100,421 1,644 45,276 (105) Interest expense 52,326 -- 11,270 39,421 209 1,426 Total expenses 2,058,100 (49,577) 1,373,194 638,747 91,092 4,644 Pretax earnings 365,340 -- 204,907 69,689 93,103 (2,359) Pretax margin 15.1% -- 13.0% 9.8% 50.5% -- Open orders 771,800 -- 653,900 117,900 -- -- Closed orders 595,900 -- 517,900 78,000 -- -- FIDELITY NATIONAL FINANCIAL, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Twelve Months Ended Consolidat- Elimi- FNT December 31, 2006 ed nations Gross operating revenue $9,209,230 ($185,760) $5,717,622 Interest and investment income 208,309 -- 167,007 Realized gains and losses 18,562 -- 14,627 Total revenue 9,436,101 (185,760) 5,899,256 Personnel costs 3,225,319 (19,267) 1,789,805 Other operating expenses 2,075,101 (101,772) 891,111 Agent commissions 2,035,423 (64,721) 2,099,244 Depreciation and amortization 460,750 -- 110,486 Claim loss expense 486,334 -- 345,578 Interest expense 209,972 -- 12,232 Total expenses 8,492,899 (185,760) 5,248,456 Pretax earnings 943,202 -- 650,800 Pretax margin 10.0% -- 11.0% Open orders 3,146,200 -- 2,661,300 Closed orders 2,051,500 -- 1,777,900 Special- Corpor- ty ate Twelve Months Ended FIS Insur- and December 31, 2006 ance Other Gross operating revenue $3,280,373 $394,613 $2,382 Interest and investment income 9,594 15,565 16,143 Realized gains and losses (820) 17 4,738 Total revenue 3,289,147 410,195 23,263 Personnel costs 1,357,397 45,145 52,239 Other operating expenses 1,115,190 144,702 25,870 Agent commissions -- -- 900 Depreciation and amortization 343,563 6,254 447 Claim loss expense 436 140,625 (305) Interest expense 154,195 1,443 42,102 Total expenses 2,970,781 338,169 121,253 Pretax earnings 318,366 72,026 (97,990) Pretax margin 9.7% 17.6% -- Open orders 484,900 -- -- Closed orders 273,600 -- -- Twelve Months Ended Consolidat- Elimi- FNT December 31, 2005 ed nations Gross operating revenue $9,150,334 ($185,864) $6,153,093 Interest and investment income 144,966 -- 111,627 Realized gains and losses 359,279 -- 36,782 Total revenue 9,654,579 (185,864) 6,301,502 Personnel costs 3,224,678 -- 1,897,904 Other operating expenses 1,702,352 (105,029) 920,904 Agent commissions 2,060,467 (80,835) 2,140,912 Depreciation and amortization 406,259 -- 102,105 Claim loss expense 480,556 -- 354,710 Interest expense 172,327 -- 16,663 Total expenses 8,046,639 (185,864) 5,433,198 Pretax earnings 1,607,940 -- 868,304 Pretax margin 16.7% -- 13.8% Open orders 3,615,400 -- 3,052,800 Closed orders 2,487,000 -- 2,169,700 Special- Corpor- ty ate Twelve Months Ended FIS Insur- and December 31, 2005 ance Other Gross operating revenue $2,766,086 $428,939 ($11,920) Interest and investment income 6,392 8,991 17,956 Realized gains and losses 3,767 73 318,657 Total revenue 2,776,245 438,003 324,693 Personnel costs 1,276,557 40,451 9,766 Other operating expenses 751,282 135,321 (126) Agent commissions -- -- 390 Depreciation and amortization 299,637 4,279 238 Claim loss expense 1,928 124,054 (136) Interest expense 126,778 377 28,509 Total expenses 2,456,182 304,482 38,641 Pretax earnings 320,063 133,521 286,052 Pretax margin 11.5% 30.5% -- Open orders 562,600 -- -- Closed orders 317,300 -- -- FIDELITY NATIONAL FINANCIAL, INC. SUMMARY BALANCE SHEET INFORMATION (In thousands, except per share amounts) December 31, December 31, 2006 2005 (Unaudited) Cash and investment portfolio $4,798,195 $5,077,583 Goodwill 1,154,298 2,873,861 Title Plant 324,155 312,801 Total assets 7,260,493 11,104,617 Notes payable 491,167 3,217,019 Reserve for claim losses 1,220,636 1,113,506 Secured trust deposits 905,461 882,602 Total stockholders' equity 3,474,369 3,279,775 Book value per share 15.75 18.84 FIDELITY NATIONAL FINANCIAL, INC. SUMMARY OF EARNINGS PRO FORMA (EXCLUDES FIS AND REORGANIZATION TRANSACTION COSTS)** (In thousands, except per share amounts) Three months ended Twelve months ended December 31, December 31, 2006 2005 2006 2005 (Unaudited) (Unaudited) Total title and escrow $1,381,668 $1,511,009 $5,667,426 $6,102,066 Specialty insurance 90,543 180,663 394,613 428,939 Interest and investment income 47,947 41,497 198,617 138,536 Realized gains and losses 6,968 18,985 19,382 37,303 Other income 10,593 10,303 44,987 41,797 Total revenue 1,537,719 1,762,457 6,325,025 6,748,641 Personnel costs 454,924 497,407 1,857,711 1,945,549 Other operating expenses 261,253 260,140 1,040,764 1,065,097 Agent commissions 504,214 521,465 2,100,144 2,141,302 Depreciation and amortization 30,721 30,321 117,167 106,602 Claim loss expense 129,113 145,592 485,898 478,628 Interest expense 13,838 12,221 52,535 43,512 Total expenses 1,394,063 1,467,146 5,654,219 5,780,690 Earnings before income taxes 143,656 295,311 670,806 967,951 Income tax expense 51,035 104,979 238,173 343,766 Minority interest (804) 164 1,223 2,528 Net earnings $93,425 $190,168 $431,410 $621,657 Net earnings per share - basic $0.43 $0.87 $1.97 $2.84 Net earnings per share - diluted $0.42 $0.86 $1.94 $2.80 Weighted average shares - basic 219,000 219,000 219,000 219,000 Weighted average shares - diluted 222,000 222,000 222,000 222,000 Direct operations orders opened 616,800 653,900 2,661,300 3,052,800 Direct operations orders closed 427,700 517,900 1,777,900 2,169,700 Fee per file $1,608 $1,542 $1,580 $1,487 ** This schedule is a pro forma summary of earnings that shows the financial results for Fidelity National Financial, Inc. as if the transfer of certain assets, the issuance of FNT common stock, the subsequent distribution of FNT common stock and the merger of the prior FNF with and into FIS had occurred on January 1, 2005. The schedules on the following pages provide the annual and quarterly pro forma summary of earnings detail for the years 2006 and 2005. FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2006 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $5,667,669 ($64,964) -- $64,721 (3) $5,667,426 Transaction processing 3,094,370 (3,215,409) -- 121,039 (3) -- Specialty insurance 394,613 -- -- -- 394,613 Interest and investments income 208,309 (9,594) (98) -- 198,617 Realized gains and losses 18,562 820 -- -- 19,382 Other income 52,578 -- (7,591) -- 44,987 Total revenue $9,436,101 ($3,289,147) (7,689) $185,760 $6,325,025 Personnel costs 3,225,319 (1,357,397) (2,317) 19,267 (5) 1,857,711 (27,161)(6) Other operating expenses 2,075,101 (1,115,190) (744) 101,772 (5) 1,040,764 (20,175)(6) Agent commissions 2,035,423 -- -- 64,721 (7) 2,100,144 Depreciation and amortization 460,750 (343,563) (20) -- 117,167 Provision for claim losses 486,334 (436) -- -- 485,898 Interest expense 209,972 (154,195) (3,931) 689 (8) 52,535 Total expenses 8,492,899 (2,970,781) (7,012) 139,113 5,654,219 Earnings before income taxes 943,202 (318,366) (677) 46,647 670,806 Income tax expense 350,871 (117,836) (248) 5,386 238,173 Minority interest 154,570 30 (211)(153,166) (9) 1,223 Net income $437,761 ($200,560) (218)$194,427 $431,410 Net income per share-basic $1.97 Pro forma weighted average shares-basic 219,000 (10) Net income per share-diluted $1.94 Pro forma weighted average shares-diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED DECEMBER 31, 2006 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,381,669 ($6,281) -- $6,280 (3) $1,381,668 Transaction processing 261,732 (270,559) -- 8,827 (3) -- Specialty insurance 90,543 -- -- -- 90,543 Interest and investments income 54,050 (6,094) (9) -- 47,947 Realized gains and losses 2,817 4,151 -- -- 6,968 Other income 11,200 -- (607) -- 10,593 Total revenue $1,802,011 ($278,783) (616) $15,107 $1,537,719 Personnel costs 592,384 (111,452) (319) 1,472 (5) 454,924 (27,161) (6) Other operating expenses 368,964 (103,465) (41) 7,355 (5) 261,253 (11,560) (6) Agent commissions 497,934 -- -- 6,280 (7) 504,214 Depreciation and amortization 55,980 (25,259) -- -- 30,721 Provision for claim losses 129,124 (11) -- -- 129,113 Interest expense 26,436 (12,265) (422) 89 (8) 13,838 Total expenses 1,670,822 (252,452) (782) (23,525) 1,394,063 Earnings before income taxes 131,189 (26,331) 166 38,632 143,656 Income tax expense 48,802 (9,727) 48 11,912 51,035 Minority interest 11,189 (11) -- (11,982) (9) (804) Net income $71,198 ($16,593) 118 $38,702 $93,425 Net income per share -basic $0.43 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.42 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,454,320 ($21,580) -- $21,573 (3) $1,454,313 Transaction processing 1,013,372 (1,059,071) -- 45,699 (3) -- Specialty insurance 99,619 -- -- -- 99,619 Interest and investments income 48,129 (361) (31) -- 47,737 Realized gains and losses 4,805 (1,292) -- -- 3,513 Other income 14,577 -- (2,613) -- 11,964 Total revenue $2,634,822 ($1,082,304) (2,644) $67,272 $1,617,146 Personnel costs 863,163 (416,733) (462) 5,863 (5) 451,831 Other operating expenses 610,732 (383,120) (306) 39,836 (5) 265,227 (1,915) (6) Agent commissions 538,700 -- -- 21,573 (7) 560,273 Depreciation and amortization 142,170 (111,135) (7) -- 31,028 Provision for claim losses 118,643 (240) -- -- 118,403 Interest expense 65,931 (49,629) (1,751) 243 (8) 14,794 Total expenses 2,339,339 (960,857) (2,526) 65,600 1,441,556 Earnings before income taxes 295,483 (121,447) (118) 1,672 175,590 Income tax expense 109,920 (42,902) (502) (4,182) 62,334 Minority interest 57,992 35 (211) (58,666) (9) (850) Net income $127,571 ($78,580) 595 $64,520 $114,106 Net income per share -basic $0.52 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.51 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2006 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,503,177 ($18,488) -- $18,253 (3) $1,502,942 Transaction processing 976,067 (1,003,459) -- 27,392 (3) -- Specialty insurance 97,708 -- -- -- 97,708 Interest and investments income 45,096 (1,430) (39) -- 43,627 Realized gains and losses 8,681 (1,016) -- -- 7,665 Other income 14,040 -- (2,108) -- 11,932 Total revenue $2,644,769 ($1,024,393) (2,147) $45,645 $1,663,874 Personnel costs 891,841 (415,992) (666) 6,697 (5) 481,880 Other operating expenses 602,061 (342,541) (234) 20,695 (5) 273,281 (6,700) (6) Agent commissions 529,082 -- -- 18,253 (7) 547,335 Depreciation and amortization 137,969 (110,374) (6) -- 27,589 Provision for claim losses 124,075 (120) -- -- 123,955 Interest expense 62,960 (49,033) (915) 198 (8) 13,210 Total expenses 2,347,988 (918,060) (1,821) 39,143 1,467,250 Earnings before income taxes 296,781 (106,333) (326) 6,502 196,624 Income tax expense 110,402 (40,621) 378 (357) 69,802 Minority interest 53,758 317 -- (52,304) (9) 1,771 Net income $132,621 ($66,029) (704) $59,163 $125,051 Net income per share -basic $0.57 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.56 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2006 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,328,503 ($18,615) -- $18,615 (3) $1,328,503 Transaction processing 843,199 (882,320) -- 39,121 (3) -- Specialty insurance 106,743 -- -- -- 106,743 Interest and investments income 51,363 (1,709) (19) -- 49,635 Realized gains and losses 11,930 (1,023) -- -- 10,907 Other income 12,761 -- (2,263) -- 10,498 Total revenue $2,354,499 ($903,667) (2,282) $57,736 $1,506,286 Personnel costs 877,931 (413,220) (870) 5,235 (5) 469,076 Other operating expenses 493,344 (286,064) (163) 33,886 (5) 241,003 Agent commissions 469,707 -- -- 18,615 (7) 488,322 Depreciation and amortization 124,631 (96,795) (7) -- 27,829 Provision for claim losses 114,492 (65) -- -- 114,427 Interest expense 54,645 (43,268) (843) 159 (8) 10,693 Total expenses 2,134,750 (839,412) (1,883) 57,895 1,351,350 Earnings before income taxes 219,749 (64,255) (399) (159) 154,936 Income tax expense 81,747 (24,586) (172) (1,987) 55,002 Minority interest 31,631 (311) -- (30,214) (9) 1,106 Net income $106,371 ($39,358) (227) $32,042 $98,828 Net income per share -basic $0.45 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.45 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2005 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $6,102,066 ($80,835) -- $80,835 (3) $6,102,066 Transaction processing 2,570,372 (2,685,250) -- 114,878 (3) -- Specialty insurance 428,939 -- -- -- 428,939 Interest and investments income 144,966 (6,392) (38) -- 138,536 Realized gains and losses 359,279 (3,767) -- (318,209) (4) 37,303 Other income 48,957 (1) (7,159) -- 41,797 Total revenue $9,654,579 ($2,776,245) (7,197) ($122,496) $6,748,641 Personnel costs 3,224,678 (1,276,557) (2,572) -- 1,945,549 Other operating expenses 1,702,352 (751,282) (851) 114,878 (5) 1,065,097 Agent commissions 2,060,467 -- -- 80,835 (7) 2,141,302 Depreciation and amortization 406,259 (299,637) (20) -- 106,602 Provision for claim losses 480,556 (1,928) -- -- 478,628 Interest expense 172,327 (126,778) (2,440) 403 (8) 43,512 Total expenses 8,046,639 (2,456,182) (5,883) 196,116 5,780,690 Earnings before income taxes 1,607,940 (320,063) (1,314) (318,612) 967,951 Income tax expense 573,391 (119,063) (502) (110,060) 343,766 Minority interest 70,443 (4,450) -- (63,465) (9) 2,528 Net income $964,106 ($196,550) (812) $(145,087) $621,657 Net income per share -basic $2.84 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $2.80 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,511,009 ($19,545) -- $19,545 (3) $1,511,009 Transaction processing 658,204 (688,138) -- 29,934 (3) -- Specialty insurance 180,663 -- -- -- 180,663 Interest and investments income 43,080 (1,566) (17) -- 41,497 Realized gains and losses 18,172 813 -- -- 18,985 Other income 12,312 -- (2,009) -- 10,303 Total revenue $2,423,440 ($708,436) (2,026) $49,479 $1,762,457 Personnel costs 828,435 (330,115) (913) -- 497,407 Other operating expenses 420,102 (189,815) (81) 29,934 (5) 260,140 Agent commissions 501,920 -- -- 19,545 (7) 521,465 Depreciation and amortization 108,081 (77,752) (8) -- 30,321 Provision for claim losses 147,236 (1,644) -- -- 145,592 Interest expense 52,326 (39,421) (838) 154 (8) 12,221 Total expenses 2,058,100 (638,747) (1,840) 49,633 1,467,146 Earnings before income taxes 365,340 (69,689) (186) (154) 295,311 Income tax expense 218,814 (25,924) (68) (87,843) 104,979 Minority interest 31,362 1,721 -- (32,919) (9) 164 Net income $115,164 ($45,486) (118) $120,608 $190,168 Net income per share -basic $0.87 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.86 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,728,290 ($23,998) -- $23,239 (3) $1,727,531 Transaction processing 646,447 (674,111) -- 27,664 (3) -- Specialty insurance 95,448 -- -- -- 95,448 Interest and investments income 36,064 (1,733) (13) -- 34,318 Realized gains and losses 8,699 (4,145) -- -- 4,554 Other income 12,937 (1) (1,462) -- 11,474 Total revenue $2,527,885 ($703,988) (1,475) $50,903 $1,873,325 Personnel costs 841,051 (317,821) (116) -- 523,114 Other operating expenses 442,001 (185,185) (145) 27,664 (5) 284,335 Agent commissions 590,876 (526) -- 23,239 (7) 613,589 Depreciation and amortization 95,619 (70,782) (6) -- 24,831 Provision for claim losses 135,354 (72) -- -- 135,282 Interest expense 48,466 (37,548) (679) 95 (8) 10,334 Total expenses 2,153,367 (611,934) (946) 50,998 1,591,485 Earnings before income taxes 374,518 (92,054) (529) (95) 281,840 Income tax expense 144,189 (32,245) (203) (11,688) 100,053 Minority interest 15,926 (1,917) -- (13,296) (9) 713 Net income $214,403 ($57,892) (326) $24,889 $181,074 Net income per share -basic $0.83 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.82 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2005 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,632,013 ($18,352) -- $19,111 (3) $1,632,772 Transaction processing 659,156 (690,361) -- 31,205 (3) -- Specialty insurance 77,320 -- -- -- 77,320 Interest and investments income 28,915 (331) (5) -- 28,579 Realized gains and losses 21,699 (1,723) -- -- 19,976 Other income 13,413 -- (2,469) -- 10,944 Total revenue $2,432,516 ($710,767) (2,474) $50,316 $1,769,591 Personnel costs 808,115 (316,526) (961) -- 490,628 Other operating expenses 447,332 (199,626) (402) 31,205 (5) 278,509 Agent commissions 576,205 526 -- 19,111 (7) 595,842 Depreciation and amortization 105,232 (75,362) (5) -- 29,865 Provision for claim losses 110,802 (137) -- -- 110,665 Interest expense 47,028 (36,388) (507) 89 (8) 10,222 Total expenses 2,094,714 (627,513) (1,875) 50,405 1,515,731 Earnings before income taxes 337,802 (83,254) (599) (89) 253,860 Income tax expense 130,053 (32,069) (231) (7,633) 90,120 Minority interest 17,707 (2,609) -- (13,799) (9) 1,299 Net income $190,042 ($48,576) (368) $21,343 $162,441 Net income per share -basic $0.74 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.73 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. UNAUDITED PRO FORMA SUMMARY OF EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2005 (In thousands except per share amounts) FNF Capital FIS pro pro Other forma forma Pro adjust- adjust- Forma Historical ments ments Adjust- FNF FNF (1) (2) ments Notes Pro Forma Total title and escrow $1,230,754 ($18,940) -- 18,940 (3) $1,230,754 Transaction processing 606,565 (632,640) -- 26,075 (3) -- Specialty insurance 75,508 -- -- -- 75,508 Interest and investments income 25,524 (2,762) (3) -- 22,759 Realized gains and losses 322,092 1,288 -- (318,209) (4) 5,171 Other income 10,295 -- (1,219) -- 9,076 Total revenue $2,270,738 ($653,054) (1,222) ($273,194) $1,343,268 Personnel costs 747,077 (312,095) (582) -- 434,400 Other operating expenses 392,917 (176,656) (223) 26,075 (5) 242,113 Agent commissions 391,466 -- -- 18,940 (7) 410,406 Depreciation and amortization 97,327 (75,741) (1) -- 21,585 Provision for claim losses 87,164 (75) -- -- 87,089 Interest expense 24,507 (13,421) (416) 65 (8) 10,735 Total expenses 1,740,458 (577,988) (1,222) 45,080 1,206,328 Earnings before income taxes 530,280 (75,066) -- (318,274) 136,940 Income tax expense 80,335 (28,825) -- (2,896) 48,614 Minority interest 5,448 (1,645) -- (3,451) (9) 352 Net income $444,497 ($44,596) -- $(311,927) $87,974 Net income per share -basic $0.40 Pro forma weighted average shares -basic 219,000 (10) Net income per share -diluted $0.40 Pro forma weighted average shares -diluted 222,000 (10) FIDELITY NATIONAL FINANCIAL, INC. NOTES TO UNAUDITED PRO FORMA SUMMARY OF EARNINGS Notes to Unaudited Pro Forma Summary of Earnings for the Years Ended December 31, 2006, and 2005 and for the Three-Month Periods Ended December 31, September 30, June 30, and March 31, 2006, and 2005 These pro forma summary of earnings include the historical statements of continuing operations of FNF and remove the results of operations of FIS and FNF minority interest expense relating to FIS and FNT as though the transaction had occurred on January 1, 2005. (1) This column represents the historical results of operations of FIS as included in FNF's consolidated results of operations for the periods presented. (2) This column represents the historical results of operations of FNF Capital as included in FNF's consolidated results of operations for the periods presented. (3) This represents the intercompany revenues relating to various agreements recorded on FIS' income statement that had already been eliminated from the consolidated results of operations of FNF. These revenues amounted to $185.8 million for the year ended December 31, 2006, $15.1 million, $67.3 million, $45.6 million, and $57.7 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $195.7 million for the year ended December 31, 2005, and $49.5 million, $50.9 million, $50.3 million, and $45.0 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. (4) This represents a $318.2 million gain on sale relating to the sale of a minority equity interest in FIS. (5) This represents the intercompany expenses related to various agreements that were eliminated in the consolidated results of operations of FNF, but are third-party expenses subsequent to the transaction. These expenses amounted to $121.0 million for the year ended December 31, 2006, $8.8 million, $45.7 million, $27.4 million, and $39.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $114.9 million for the year ended December 31, 2005, and $29.9 million, $27.7 million, $31.2 million, and $26.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. (6) These amounts represent transaction costs related to the reorganization, all of which have been excluded from the pro forma results of operations. These costs amounted to $47.3 million for the year ended December 31, 2006, and $38.7 million, $1.9 million and $6.7 million for three-month periods ended December 31, September 30 and June 30, 2006, respectively. (7) This represents the additional agent commissions paid by FNF to FIS that were previously eliminated in the consolidated results of FNF, but are a third-party expense subsequent to the transaction. These commissions amounted to $64.7 million for the year ended December 31, 2006, $6.3 million, $21.6 million, $18.3 million, and $18.6 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $80.8 million for the year ended December 31, 2005, and $19.5 million, $23.2 million, $19.1 million, and $18.9 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. (8) This represents intercompany interest expense that is a third-party expense subsequent to the transaction. These expenses amounted to $0.7 million for the year ended December 31, 2006, $0.1 million, $0.2 million, $0.2 million, and $0.2 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $0.4 million for the year ended December 31, 2005, and $0.1 million, $0.1 million, $0.1 million, and $0.1 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. (9) This represents the elimination of the minority interest expense recorded by FNF relating to its earnings in FIS and FNT. Minority interest expense relating to FIS was $96.2 million for the year ended December 31, 2006, $8.3 million, $39.7 million, $31.9 million, and $16.4 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $44.9 million for the year ended December 31, 2005, and $14.3 million, $13.3 million, $13.8 million, and $3.5 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. Minority interest relating to FNT was $56.9 million for the year ended December 31, 2006, $3.7 million, $19.0 million, $20.4 million, and $13.8 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, and $18.7 million for the year and three-month period ended December 31, 2005. There were no minority interest expenses relating to earnings in FNT during the first three quarters of 2005 because FNT was a wholly-owned subsidiary of FNF during those periods. (10) Amounts presented approximate the actual number of basic and diluted weighted average shares outstanding subsequent to the transaction. These amounts have been used for all periods in order to enhance comparability. DATASOURCE: Fidelity National Financial, Inc. CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations of Fidelity National Financial, Inc., +1-904-854-8120, Web site: http://www.fnf.com/

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