JACKSONVILLE, Fla., April 23 /PRNewswire-FirstCall/ -- 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 1st 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
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 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 DATASOURCE: Fidelity National Financial, Inc. CONTACT:
Daniel Kennedy Murphy, Senior Vice President, Finance and Investor
Relations, Fidelity National Financial, Inc., +1-904-854-8120, Web
site: http://www.fnf.com/
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