JACKSONVILLE, Fla.,
July 25, 2011 /PRNewswire/ --
Fidelity National Financial, Inc. (NYSE: FNF), a leading provider
of title insurance, mortgage services, specialty insurance and
diversified services, today reported operating results for the
three-month and six month periods ended June
30, 2011.
|
|
|
Three Months
Ended
June 30, 2011
|
Three Months
Ended
June 30, 2010
|
|
Total revenue
|
$1.32
billion
|
$1.50
billion
|
|
Net earnings attributable to
common shareholders
|
$80.0
million
|
$139.6
million*
|
|
Net earnings per diluted share
attributable to common shareholders
|
$0.36
|
$0.61*
|
|
Cash flow from
operations
|
$30.2
million
|
$136.0
million
|
|
|
|
|
|
|
*Includes approximately a $63
million after-tax gain, or $0.27 per diluted share, from the sale of
Sedgwick CMS in May 2010
The following are summary financial and operational results for
the operating segments of FNF for the three-month periods ended
June 30, 2011 and 2010:
Fidelity National Title Group ("FNT")
|
|
|
Three Months
Ended
June 30, 2011
|
Three Months
Ended
June 30, 2010
|
|
Total revenue
|
$1.20
billion
|
$1.28
billion
|
|
Pre-tax earnings
|
$140.6
million
|
$124.0
million
|
|
Pre-tax margin
|
11.7%
|
9.7%
|
|
|
|
|
|
Month
|
Direct
Orders Opened
|
Direct
Orders Closed
|
|
April 2011
|
160,400
|
115,300
|
|
May 2011
|
169,600
|
113,400
|
|
June 2011
|
184,000
|
124,500
|
|
Second Quarter
2011
|
514,000
|
353,200
|
|
|
|
|
|
April 2010
|
185,300
|
121,700
|
|
May 2010
|
168,800
|
113,600
|
|
June 2010
|
197,000
|
126,600
|
|
Second Quarter
2010
|
551,100
|
361,900
|
|
|
|
|
|
|
|
Open
Commercial
Orders
|
Closed
Commercial
Orders
|
Commercial
Revenue
(In millions)
|
Commercial
Fee Per File
|
|
2nd Quarter 2011
|
19,100
|
12,000
|
93.8
|
7,800
|
|
2nd Quarter 2010
|
18,400
|
11,000
|
68.1
|
6,200
|
|
|
|
|
|
|
- The preceding table only includes commercial activity from
FNF's commercial offices in the national commercial division and
does not attempt to capture potential commercial activity in our
local offices.
Specialty Insurance
|
Three Months
Ended
June 30, 2011
|
Three Months
Ended
June 30, 2010
|
|
Total revenue
|
$110.9
million
|
$104.3
million
|
|
Pre-tax earnings
|
$4.0
million
|
$11.1
million
|
|
Pre-tax margin
|
3.6%
|
10.6%
|
|
|
|
|
|
|
|
|
"We are pleased with our financial results this quarter,
particularly in our title insurance business," said Chairman
William P. Foley, II. "Despite
a continued sluggish real estate environment, we were able to
generate an impressive 11.7% pre-tax margin in our title business,
a 200 basis point increase over the prior year and a sequential
increase of 240 basis points from the first quarter of this year.
While refinance orders represented 51% of closed order
volumes this quarter versus 46% in the prior year, we still
produced a 5% increase in the fee per file. Much of this can
be attributed to the strength of our commercial business, as we
generated nearly $94 million in
commercial revenue in the second quarter, a 38% increase over the
prior year and a sequential increase of 43% from the first quarter
of this year. The commercial business produced a fee per file
increase of 26% over both the prior year quarter and the first
quarter of this year. The impact of cost reduction
initiatives also contributed to our strong 11.7% pre-tax title
margin. On a sequential basis from the first quarter, title
segment personnel costs and other operating expenses increased by
less than 1%, while title gross operating revenue grew by nearly
11%. We will continue to manage our title business with the
same discipline, seeking to maximize profitability in any market
environment.
"In mid-July, we announced the sale of our flood insurance
business for approximately $210
million. That flood business has been the nation's
largest flood insurance provider and a very profitable and
consistent business for FNF for nearly ten years. We feel
this transaction is a great opportunity to realize the value of the
business we have created and redeploy the capital into other uses
that can continue to create increased value for our shareholders.
We are proud of the flood insurance business we created and
we wish them future success with their new investment
partners."
Conference Call
FNF will host a call with investors and analysts to discuss
second quarter 2011 results on Tuesday, July
26, 2011, 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 www.fnf.com. The conference
call replay will be available via webcast through the FNF Investor
Relations website at www.fnf.com. The telephone replay will
be available from 2:00 p.m. Eastern
time on July 26, 2011, through
August 2, 2011, by dialing
800-475-6701 (USA) or 320-365-3844
(International). The access code will be 210285.
About FNF
Fidelity National Financial, Inc. (NYSE: FNF), is a leading
provider of title insurance, mortgage services, specialty insurance
and diversified services. FNF is the nation's largest title
insurance company through its title insurance underwriters -
Fidelity National Title, Chicago Title, Commonwealth Land Title and
Alamo Title - that collectively issue more title insurance policies
than any other title company in the
United States. FNF also provides personal lines
insurance and home warranty insurance through its specialty
insurance business. In addition, among other operations, FNF owns
minority interests in Ceridian Corporation, a leading provider of
global human resources, payroll, benefits and payment solutions and
Remy International, Inc., a leading designer, manufacturer,
remanufacturer, marketer and distributor of aftermarket and
original equipment electrical components for automobiles, light
trucks, heavy-duty trucks and other vehicles. More
information about FNF can be found at www.fnf.com.
Forward-Looking Statements
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 and political conditions, including changes in
the financial markets; weakness or adverse changes in the level of
real estate activity, which may be caused by, among other things,
high or increasing interest rates, a limited supply of mortgage
funding or a weak U. S. economy; our potential inability to find
suitable acquisition candidates, acquisitions in lines of business
that will not necessarily be limited to our traditional areas of
focus, or difficulties in integrating acquisitions; our dependence
on distributions from our title insurance underwriters as a main
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
millions, except per share amounts)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Direct title premiums
|
$357.2
|
|
$344.6
|
|
$680.1
|
|
$626.0
|
|
Agency title premiums
|
484.7
|
|
552.8
|
|
908.0
|
|
1,036.6
|
|
Total title
premiums
|
841.9
|
|
897.4
|
|
1,588.1
|
|
1,662.6
|
|
Escrow, title-related and other
fees
|
334.2
|
|
336.5
|
|
647.4
|
|
631.0
|
|
Total title and
escrow
|
1,176.1
|
|
1,233.9
|
|
2,235.5
|
|
2,293.6
|
|
|
|
|
|
|
|
|
|
|
Specialty insurance
|
106.8
|
|
101.0
|
|
199.6
|
|
187.3
|
|
Interest and investment
income
|
39.7
|
|
36.4
|
|
75.8
|
|
75.2
|
|
Realized gains and
losses
|
1.9
|
|
124.2
|
|
21.8
|
|
152.8
|
|
Total revenue
|
1,324.5
|
|
1,495.5
|
|
2,532.7
|
|
2,708.9
|
|
|
|
|
|
|
|
|
|
|
Personnel costs
|
396.8
|
|
397.7
|
|
788.1
|
|
768.4
|
|
Other operating
expenses
|
300.9
|
|
316.9
|
|
586.3
|
|
615.9
|
|
Agent commissions
|
379.1
|
|
435.9
|
|
706.8
|
|
820.3
|
|
Depreciation and
amortization
|
19.3
|
|
22.5
|
|
39.8
|
|
45.5
|
|
Claim loss expense
|
104.6
|
|
96.9
|
|
191.3
|
|
183.2
|
|
Interest expense
|
13.8
|
|
12.5
|
|
28.1
|
|
19.6
|
|
Total expenses
|
1,214.5
|
|
1,282.4
|
|
2,340.4
|
|
2,452.9
|
|
|
|
|
|
|
|
|
|
|
Earnings before taxes
|
110.0
|
|
213.1
|
|
192.3
|
|
256.0
|
|
Income tax expense
|
39.6
|
|
76.3
|
|
69.2
|
|
89.6
|
|
Earnings before equity
investments
|
70.4
|
|
136.8
|
|
123.1
|
|
166.4
|
|
Earnings (loss) from equity
investments
|
12.6
|
|
3.6
|
|
4.0
|
|
(7.1)
|
|
Net earnings
|
83.0
|
|
140.4
|
|
127.1
|
|
159.3
|
|
Non-controlling
interests
|
3.0
|
|
0.8
|
|
4.6
|
|
3.2
|
|
Net earnings attributable to
common shareholders
|
$80.0
|
|
$139.6
|
|
$122.5
|
|
$156.1
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareholders - basic
|
$0.36
|
|
$0.61
|
|
$0.56
|
|
$0.69
|
|
Net earnings
attributable to common shareholders -diluted
|
$0.36
|
|
$0.61
|
|
$0.55
|
|
$0.68
|
|
Weighted average shares –
basic
|
220.7
|
|
227.5
|
|
220.7
|
|
227.6
|
|
Weighted average shares –
diluted
|
224.5
|
|
230.5
|
|
224.0
|
|
230.5
|
|
|
|
|
|
|
|
|
|
|
Direct operations orders
opened (000's)
|
514.0
|
|
551.1
|
|
1,002.1
|
|
1,062.2
|
|
Direct operations orders
closed (000's)
|
353.2
|
|
361.9
|
|
724.0
|
|
694.4
|
|
Fee per file
|
$1,569
|
|
$1,499
|
|
$1,468
|
|
$1,422
|
|
Actual title claims
paid
|
$147.5
|
|
$122.1
|
|
$236.3
|
|
$217.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
|
|
SECOND
QUARTER SEGMENT INFORMATION
|
|
(In
millions, except order information in 000's)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2011
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$1,282.9
|
$1,162.8
|
$106.8
|
$13.3
|
|
|
|
|
|
|
|
Interest and investment
income
|
39.7
|
36.8
|
2.7
|
0.2
|
|
Realized gains and
losses
|
1.9
|
2.1
|
1.4
|
(1.6)
|
|
Total revenue
|
1,324.5
|
1,201.7
|
110.9
|
11.9
|
|
|
|
|
|
|
|
Personnel costs
|
396.8
|
369.7
|
11.8
|
15.3
|
|
Other operating
expenses
|
300.9
|
237.4
|
46.8
|
16.7
|
|
Agent commissions
|
379.1
|
379.1
|
--
|
--
|
|
Depreciation and
amortization
|
19.3
|
17.5
|
1.0
|
0.8
|
|
Claim loss expense
|
104.6
|
57.4
|
47.3
|
(0.1)
|
|
Interest expense
|
13.8
|
--
|
--
|
13.8
|
|
Total expenses
|
1,214.5
|
1,061.1
|
106.9
|
46.5
|
|
|
|
|
|
|
|
Pretax earnings
|
110.0
|
140.6
|
4.0
|
(34.6)
|
|
|
|
|
|
|
|
Pretax margin
|
8.3%
|
11.7%
|
3.6%
|
--
|
|
|
|
|
|
|
|
Open orders
|
514.0
|
514.0
|
--
|
--
|
|
Closed orders
|
353.2
|
353.2
|
--
|
--
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2010
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$1,334.9
|
$1,223.1
|
$101.0
|
$10.8
|
|
|
|
|
|
|
|
Interest and investment
income
|
36.4
|
33.8
|
2.8
|
(0.2)
|
|
Realized gains and
losses
|
124.2
|
24.4
|
0.5
|
99.3
|
|
Total revenue
|
1,495.5
|
1,281.3
|
104.3
|
109.9
|
|
|
|
|
|
|
|
Personnel costs
|
397.7
|
378.1
|
12.2
|
7.4
|
|
Other operating
expenses
|
316.9
|
261.0
|
44.5
|
11.4
|
|
Agent commissions
|
435.9
|
435.9
|
--
|
--
|
|
Depreciation and
amortization
|
22.5
|
20.9
|
0.9
|
0.7
|
|
Claim loss expense
|
96.9
|
61.3
|
35.6
|
--
|
|
Interest expense
|
12.5
|
0.1
|
--
|
12.4
|
|
Total expenses
|
1,282.4
|
1,157.3
|
93.2
|
31.9
|
|
|
|
|
|
|
|
Pretax earnings
|
213.1
|
124.0
|
11.1
|
78.0
|
|
|
|
|
|
|
|
Pretax margin
|
14.2%
|
9.7%
|
10.6%
|
71.0%
|
|
|
|
|
|
|
|
Open orders
|
551.1
|
551.1
|
--
|
--
|
|
Closed orders
|
361.9
|
361.9
|
--
|
--
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
|
|
SIX MONTH
SEGMENT INFORMATION
|
|
(In
millions, except order information in 000's)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2011
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$2,435.1
|
$2,213.7
|
$199.6
|
$21.8
|
|
|
|
|
|
|
|
Interest and investment
income
|
75.8
|
70.0
|
5.6
|
0.2
|
|
Realized gains and
losses
|
21.8
|
20.5
|
1.8
|
(0.5)
|
|
Total revenue
|
2,532.7
|
2,304.2
|
207.0
|
21.5
|
|
|
|
|
|
|
|
Personnel costs
|
788.1
|
735.1
|
23.7
|
29.3
|
|
Other operating
expenses
|
586.3
|
473.8
|
85.1
|
27.4
|
|
Agent commissions
|
706.8
|
706.8
|
--
|
--
|
|
Depreciation and
amortization
|
39.8
|
36.2
|
2.1
|
1.5
|
|
Claim loss expense
|
191.3
|
108.2
|
83.2
|
(0.1)
|
|
Interest expense
|
28.1
|
0.8
|
--
|
27.3
|
|
Total expenses
|
2,340.4
|
2,060.9
|
194.1
|
85.4
|
|
|
|
|
|
|
|
Pretax earnings
|
192.3
|
243.3
|
12.9
|
(63.9)
|
|
|
|
|
|
|
|
Pretax margin
|
7.6%
|
10.6%
|
6.2%
|
--
|
|
|
|
|
|
|
|
Open orders
|
1,002.1
|
1,002.1
|
--
|
--
|
|
Closed orders
|
724.0
|
724.0
|
--
|
--
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2010
|
Consolidated
|
FNT
|
Specialty
Insurance
|
Corporate
and Other
|
|
Gross operating
revenue
|
$2,480.9
|
$2,261.7
|
$187.3
|
$31.9
|
|
|
|
|
|
|
|
Interest and investment
income
|
75.2
|
68.2
|
5.7
|
1.3
|
|
Realized gains and
losses
|
152.8
|
27.1
|
0.6
|
125.1
|
|
Total revenue
|
2,708.9
|
2,357.0
|
193.6
|
158.3
|
|
|
|
|
|
|
|
Personnel costs
|
768.4
|
728.9
|
24.0
|
15.5
|
|
Other operating
expenses
|
615.9
|
503.7
|
80.5
|
31.7
|
|
Agent commissions
|
820.3
|
820.3
|
--
|
--
|
|
Depreciation and
amortization
|
45.5
|
42.5
|
2.0
|
1.0
|
|
Claim loss expense
|
183.2
|
113.4
|
69.8
|
--
|
|
Interest expense
|
19.6
|
0.2
|
--
|
19.4
|
|
Total expenses
|
2,452.9
|
2,209.0
|
176.3
|
67.6
|
|
|
|
|
|
|
|
Pretax earnings
|
256.0
|
148.0
|
17.3
|
90.7
|
|
|
|
|
|
|
|
Pretax margin
|
9.5%
|
6.3%
|
8.9%
|
57.3%
|
|
|
|
|
|
|
|
Open orders
|
1,062.2
|
1,062.2
|
--
|
--
|
|
Closed orders
|
694.4
|
694.4
|
--
|
--
|
|
|
|
|
|
|
|
|
FIDELITY
NATIONAL FINANCIAL, INC.
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SUMMARY
BALANCE SHEET INFORMATION
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(In
millions, except per share amounts)
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June
30,
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December
31,
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2011
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2010
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(Unaudited)
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Cash and investment
portfolio
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$4,980.8
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$4,939.3
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Goodwill
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1,472.6
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1,470.7
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Title plant
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390.0
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390.8
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Total assets
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7,835.3
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7,887.5
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Notes payable
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951.8
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952.0
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Reserve for claim
losses
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2,154.8
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2,272.7
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Secured trust
deposits
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444.5
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388.4
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Total equity
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3,532.2
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3,444.4
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Book value per
share
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$15.80
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$15.39
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SOURCE Fidelity National Financial, Inc.