JACKSONVILLE, Fla., Feb. 22,
2023 /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 fourth quarter and twelve months (full
year) ended December 31, 2022.
On December 1, 2022, FNF
completed the distribution, on a pro rata basis, of approximately
15% of the common stock of its subsidiary, F&G. FNF retains
control of F&G through an approximate 85% equity ownership
stake and continues to consolidate the assets, liabilities, and
results of operations of F&G in FNF's Consolidated Financial
Statements. The portion of equity interest of F&G that FNF does
not own, for the period of December 1 to
December 31, 2022, is reflected as noncontrolling interest
in FNF's Consolidated Financial Statements.
Net earnings attributable to common shareholders for
the fourth quarter of $68 million, or
$0.25 per diluted share (per share),
compared to $533 million, or
$1.87 per share, for the fourth
quarter of 2021. Full year net earnings attributable to
common shareholders of $1.1 billion,
or $4.10 per share, compared to
$2.4 billion, or $8.44 per share, for the year ended December 31, 2021. Net earnings
attributable to common shareholders include mark-to-market effects,
non-recurring items and discontinued operations; 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 fourth quarter of
$287 million, or $1.06 per share, compared to $668 million, or $2.34 per share, for the fourth quarter of
2021. Full year adjusted net earnings of $1.5 billion, or $5.36 per share, compared to $2.5 billion, or $8.56 per share, for the year ended December 31, 2021. The Title segment
contributed $180 million and
$1.2 billion for the fourth quarter
and full year 2022, respectively, compared to $563 million and $2.0
billion for the fourth quarter and full year 2021,
respectively. The F&G Segment contributed $131 million and $338
million for the fourth quarter and full year 2022,
respectively, compared to $142
million and $551 million for
the fourth quarter and full year 2021, respectively. The
Corporate Segment had adjusted net losses of $24 million and $83
million for the fourth quarter and full year 2022,
respectively, compared to adjusted net losses of $37 million and $99
million for the fourth quarter and full year 2021,
respectively. The decrease for both fourth quarter and full
year results reflect Title's considerable decline in volumes as
compared to the prior year record level given the precipitous
increase in mortgage rates, partially offset by higher average fee
per file. In addition, F&G's results reflect alternatives
investment portfolio short-term mark-to-market movement that
differs from long-term return expectation.
Company Highlights
- Solid Title Revenue despite challenging environment, and as
compared to record prior year: For the Title segment, total
revenue of $1.9 billion and
$9.1 billion for the quarter and full
year, respectively. Total revenue, excluding recognized gains and
losses, of $1.8 billion for the
fourth quarter, a 42% decrease from fourth quarter 2021, and
$9.5 billion for the full year, a 20%
decrease from full year 2021
- Industry leading adjusted pre-tax Title margin of 16.7%
for full year 2022, reflecting the third best since 2003
- Strong sales for F&G continue: Total gross sales of
$2.7 billion for the fourth quarter,
a 23% increase over fourth quarter 2021, and a record $11.3 billion for the full year, a nearly 18%
increase over full year 2021
- F&G partial spinoff completed: F&G began trading
on the New York Stock Exchange under the ticker symbol 'FG' on
December 1, 2022, upon completion of
the distribution of approximately 15% of its common stock to FNF
shareholders; FNF retains control of F&G through an approximate
85% equity ownership stake
- Ample deployable capital supports shareholder value: FNF
has repurchased 1 million shares for $38
million, at an average price of $37.87 per share, in the fourth quarter and paid
common dividends at $0.45 per share
for $124 million. For the full year,
FNF has repurchased 13.4 million shares for a total $549 million, at an average price of $41.05 per share, and paid common dividends at
$1.77 per share for a total
$489 million reflecting 10% growth
over full year 2021. FNF ended the fourth quarter with $939 million in cash and short-term liquid
investments at the holding company. As announced last week, the
board of directors has declared a quarterly cash dividend of
$0.45 per share, payable March 31, 2023, to shareholders of record as of
March 17, 2023.
William P. Foley, II, commented,
"While the steep rise in interest rates pressured our results
through the fourth quarter, we continued to take decisive steps to
position FNF for the eventual turn in the housing cycle.
Central to our strategy is a focus on managing our cost structure
to the trend in open orders to maximize our profitability and cash
flow which can be seen, once again, in our industry leading
adjusted pre-tax Title margin of 12.3% for the fourth
quarter. We also successfully listed F&G on the New York
Stock Exchange on December 1st which
we believe will unlock the growing value in the business as can be
seen in F&G's robust fourth quarter and record full year sales
where they ended 2022 with nearly $44
billion in assets under management. F&G's spread
based income delivers a steady and growing source of earnings which
is countercyclical to our Title business as F&G benefits from
the rising rate environment. This provides a competitive
advantage for our Company, and we remain committed to F&G's
long-term success."
Mr. Foley concluded, "We also returned more than $1 billion to our shareholders in 2022 through
our quarterly dividend and share repurchases. We ended the
year with over $900 million of
liquidity on our balance sheet which provides ample flexibility to
take advantage of further opportunities as they arise while also
providing security in an uncertain economic environment."
Summary Financial Results
(In millions, except
per share data)
|
Three Months
Ended
|
Twelve Months
Ended
|
|
December 31,
2022
|
|
December 31,
2021
|
2022
|
|
2021
|
Total
revenue
|
$
2,553
|
|
$
4,797
|
$
11,556
|
|
$
15,643
|
F&G total gross
sales1
|
$
2,719
|
|
$
2,195
|
$
11,254
|
|
$ 9,592
|
F&G assets under
management1
|
$
43,568
|
|
$
36,494
|
$
43,568
|
|
$
36,494
|
Total assets
|
$
65,589
|
|
$
60,690
|
$
65,589
|
|
$
60,690
|
Adjusted pre-tax title
margin
|
12.3 %
|
|
22.4 %
|
16.7 %
|
|
21.7 %
|
Net earnings
attributable to common shareholders2
|
$
68
|
|
$
533
|
$ 1,136
|
|
$ 2,422
|
Net earnings per share
attributable to common shareholders2
|
$
0.25
|
|
$
1.87
|
$
4.10
|
|
$
8.44
|
Adjusted net
earnings1,2
|
$
287
|
|
$
668
|
$ 1,485
|
|
$ 2,458
|
Adjusted net earnings
per share1,2
|
$
1.06
|
|
$
2.34
|
$
5.36
|
|
$
8.56
|
Weighted average common
diluted shares
|
271
|
|
285
|
277
|
|
287
|
Total common shares
outstanding
|
272
|
|
284
|
272
|
|
284
|
|
|
|
|
|
|
|
|
1
|
See definition of
non-GAAP measures below
|
2
|
FNF's consolidated
earnings, per share metrics and related non-GAAP measures reflect
100% ownership of F&G Segment for 1/1/22 through 11/30/22 and
approximately 85% ownership for 12/1/22 through 12/31/22
|
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 products.
Mike Nolan, Chief Executive
Officer, said, "The housing market has been adjusting to the rapid
rise in mortgage interest rates, which has resulted in a sharp
slowdown in the residential purchase and refinance markets from the
record levels experienced throughout 2020 and 2021. While our
open orders decelerated through the year, we continued to
aggressively manage our expense structure much like we have done in
previous cycles with a focus on reducing costs. This has
contributed to our strong full year results where we delivered
adjusted pre-tax earnings in our Title segment of $1.6 billion and an industry leading adjusted
pre-tax Title margin of 16.7%. These strong results point to
the disciplined management of our business in what has been a
challenging environment combined with resiliency in the commercial
market where a higher fee per file partially offset a moderation in
volumes. Looking forward, we will continue to manage our
business to the trend in open orders while evaluating opportunities
to strategically expand our operations given the strength of our
balance sheet which puts us in an advantageous position."
Fourth Quarter 2022 Highlights
- Total revenue of $1.9
billion, compared with $3.1
billion in total revenue in the fourth quarter of 2021
- Total revenue, excluding recognized gains and losses, of
$1.8 billion, a 42% decrease compared
with the fourth quarter of 2021
-
- Direct title premiums of $544
million, a 47% decrease from fourth quarter of 2021
- Agency title premiums of $708
million, a 48% decrease from fourth quarter of 2021
- Commercial revenue of $344
million, a 37% decrease from fourth quarter of 2021
- Purchase orders opened decreased 31% on a daily basis
and purchase orders closed decreased 36% on a daily basis from the
fourth quarter of 2021
- Refinance orders opened decreased 76% on a daily basis
and refinance orders closed decreased 79% on a daily basis from
fourth quarter of 2021
- Commercial orders opened decreased 30% and commercial
orders closed decreased 34% from fourth quarter of 2021
- Total fee per file of $3,649 for the fourth quarter, a 21% increase
over fourth quarter of 2021
Fourth Quarter 2022 Financial Results
- Pre-tax title margin of 12.7% and industry leading
adjusted pre-tax title margin of 12.3% for the fourth
quarter of 2022, compared to 18.5% and 22.4%, respectively, in the
fourth quarter of 2021
- Pre-tax earnings from continuing operations in Title for
the fourth quarter of $239 million,
compared with $567 million for the
fourth quarter of 2021
- Adjusted pre-tax earnings in Title for the fourth
quarter of $227 million compared with
$717 million for the fourth quarter
of 2021. The decrease from the prior year quarter was primarily a
result of the considerable decline in residential and commercial
volumes due to higher mortgage rates, partially offset by higher
average fee per file
Full year 2022 Financial Results
- Total revenue, excluding recognized gains and losses, of
$9.5 billion for the full year, a 20%
decrease from $11.9 billion for the
full year 2021
- Industry leading pre-tax title margin of 12.0% and
adjusted pre-tax title margin of 16.7% for the full year,
compared to 18.6% and 21.7% for the full year 2021, respectively;
reflects the Company's noteworthy execution to manage the business
based on market conditions in the current economic cycle
- Pre-tax earnings from continuing operations in Title for
the full year of $1.1 billion
compared to $2.1 billion for the full
year 2021
- Adjusted pre-tax earnings in Title for the full year of
$1.6 billion compared to $2.6 billion for the full year 2021. The decrease
from the prior year was primarily a result of the considerable
decline in refinance volume representing trough level activity and
moderating residential purchase volume; due to higher mortgage
rates, partially offset by higher average fee per file and healthy
volume of commercial orders closed for the full year
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, President and Chief
Executive Officer of F&G, commented, "We are proud to have
reached a milestone in the quarter by becoming a publicly listed
company and I would like to thank our team, our parent Fidelity
National Financial, and our partners for all of their contributions
to achieve F&G's December 1st
listing on the New York Stock Exchange. We believe that
our public listing will provide recognition of F&G's value
creation as a standalone public company and, in turn, unlock the
value of the 85% majority ownership in F&G held by our parent,
FNF."
Mr. Blunt continued, "Central to achieving the fair value of our
company in the public markets is delivering strong results and I am
very proud of our team's performance this past year. For the
fourth quarter, we delivered total gross sales of $2.7 billion, a 23 percent increase over the
prior year quarter. On a full year basis, F&G reported
record total gross sales of $11.3
billion, an 18 percent increase over full year 2021,
boosting our ending assets under management to nearly $44 billion as of December 31. The
continued growth has us well ahead of the goal of doubling assets
under management to $50 billion over
five years, as outlined at the time of our acquisition by FNF in
2020. We are on target to achieve that goal this
year."
Fourth Quarter 2022
- Total gross sales of $2.7
billion for the fourth quarter, an increase of 23% over the
fourth quarter 2021; reflects record retail sales, partially offset
by lower institutional sales which we expect to be lumpier and more
opportunistic than in our retail channels
- Record Retail sales of $2.5
billion for the fourth quarter, a 79% increase over fourth
quarter of 2021; reflects execution of diversified growth
strategy
- Institutional sales of $0.2
billion of pension risk transfer transactions, compared to
$0.8 billion of pension risk transfer
transactions in the fourth quarter 2021. There were no funding
agreement issuances in the current quarter, compared with
$35 million for the fourth quarter
2021
- Net retained sales of $1.9
billion for the fourth quarter, a decrease of 7% from the
fourth quarter 2021, reflecting increase from 50% to 75% of
multiyear guaranteed annuity sales to Aspida Re effective
September 1, 2022
- Average assets under management (AAUM) of $42.6 billion for the fourth quarter, an increase
of 19% from $35.7 billion in the
fourth quarter 2021 driven by net new business flows. Ending assets
under management (AUM) were $43.6
billion as of December 31,
2022
- Net loss attributable to common shareholders for F&G
Segment of $100 million for the
fourth quarter due to unfavorable mark-to-market and related
economic assumption review updates, compared to net earnings
attributable to common shareholders for F&G Segment of
$121 million for the fourth quarter
of 2021
- Adjusted net earnings for F&G Segment of
$131 million for the fourth quarter,
compared to $142 million for the
fourth quarter of 2021; F&G's adjusted net earnings reflect
alternatives investment portfolio short-term mark-to-market
movement that differs from long-term return expectation.
Full Year 2022
- Record total gross sales of $11.3
billion for the full year, an increase of nearly 18% over
the full year 2021, reflecting execution of the Company's
diversified growth strategy with a disciplined approach to
pricing
- Record Retail sales of $8.5
billion for the full year, an increase of 37% over the full
year 2021, driven by ongoing growth in independent agent
distribution and continued expansion in bank and broker dealer
channels
- Institutional sales of $2.8
billion for the full year, including funding agreement
issuances of $1.4 billion and pension
risk transfer transactions of $1.4
billion, compared to funding agreement issuances of
$2.3 billion and pension risk
transfer transactions of $1.2 billion
in full year 2021
- Net retained sales of $9.0
billion for the full year, an increase of 3% over the full
year 2021, reflecting third party flow reinsurance
- Average assets under management (AAUM) of $40.1 billion for the full year, an increase of
25% over $31.9 billion in the prior
year driven by net new business flows. Ending assets under
management (AUM) of $43.6 billion at
December 31, 2022
- Net earnings for F&G Segment for the full year of
$481 million, compared to
$865 million for the full year
2021
- Adjusted net earnings for F&G Segment for the full
year of $338 million, compared to
$551 million for the full year 2021;
F&G's adjusted net earnings reflect alternatives investment
portfolio short-term mark-to-market movement that differs from
long-term return expectation.
Conference Call
We will host a call with investors and
analysts to discuss FNF's fourth quarter and full year 2022 results
on Thursday, February 23, 2023,
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. The telephone replay will be available from
3:00 p.m. Eastern Time on
February 23, 2023, through
March 2, 2023, by dialing
1-844-512-2921 (USA) or
1-412-317-6671 (International). The access code will be
13735001.
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 and
COVID-19 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; 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; 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 (SEC).
FNF-E
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION2 (In millions, except order
information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
December 31,
2022
|
|
|
|
|
Direct title
premiums
|
|
$
544
|
|
$
544
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
708
|
|
708
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
880
|
|
508
|
|
331
|
|
41
|
Total title and
escrow
|
|
2,132
|
|
1,760
|
|
331
|
|
41
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
539
|
|
89
|
|
439
|
|
11
|
Recognized gains and
losses, net
|
|
(118)
|
|
29
|
|
(147)
|
|
—
|
Total
revenue
|
|
2,553
|
|
1,878
|
|
623
|
|
52
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
734
|
|
665
|
|
47
|
|
22
|
Agent
commissions
|
|
543
|
|
543
|
|
—
|
|
—
|
Other operating
expenses
|
|
392
|
|
337
|
|
25
|
|
30
|
Benefits & other
policy reserve changes
|
|
743
|
|
—
|
|
743
|
|
—
|
Depreciation and
amortization
|
|
22
|
|
37
|
|
(22)
|
|
7
|
Provision for title
claim losses
|
|
57
|
|
57
|
|
—
|
|
—
|
Interest
expense
|
|
26
|
|
—
|
|
6
|
|
20
|
Total
expenses
|
|
2,517
|
|
1,639
|
|
799
|
|
79
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
36
|
|
$
239
|
|
$
(176)
|
|
$
(27)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
(36)
|
|
37
|
|
(76)
|
|
3
|
Earnings (loss)
from equity investments
|
|
(1)
|
|
(1)
|
|
—
|
|
—
|
Earnings (loss)
from discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling
interests
|
|
3
|
|
3
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
68
|
|
$
198
|
|
$
(100)
|
|
$
(30)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
0.25
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
0.25
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
270
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
271
|
|
|
|
|
|
|
|
2 FNF's
consolidated earnings, per share metrics and related non-GAAP
measures reflect 100% ownership of F&G Segment for 1/1/22
through 11/30/22 and approximately 85% ownership for 12/1/22
through 12/31/22
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION2 (In millions, except order
information in thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
December 31,
2022
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
68
|
|
$
198
|
|
$
(100)
|
|
$
(30)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
68
|
|
$
198
|
|
$
(100)
|
|
$
(30)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
36
|
|
$
239
|
|
$
(176)
|
|
$
(27)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
107
|
|
(29)
|
|
136
|
|
—
|
Indexed product
related derivatives
|
|
212
|
|
—
|
|
212
|
|
—
|
Purchase price
amortization
|
|
25
|
|
17
|
|
5
|
|
3
|
Transaction
costs
|
|
8
|
|
—
|
|
2
|
|
6
|
Amortization of
actuarial intangibles
|
|
(81)
|
|
—
|
|
(81)
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
307
|
|
$
227
|
|
$
98
|
|
$
(18)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
271
|
|
$
(12)
|
|
$
274
|
|
$
9
|
Income taxes on
non-GAAP adjustments
|
|
(35)
|
|
3
|
|
(36)
|
|
(2)
|
Non-controlling
interest on non-GAAP adjustments
|
|
(7)
|
|
—
|
|
(7)
|
|
—
|
Deferred tax
asset valuation allowance
|
|
(10)
|
|
(9)
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
219
|
|
$
(18)
|
|
$
231
|
|
$
6
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to common
shareholders
|
|
$
287
|
|
$
180
|
|
$
131
|
|
$
(24)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to common shareholders -
diluted
|
|
$
1.06
|
|
|
|
|
|
|
|
2 FNF's
consolidated earnings, per share metrics and related non-GAAP
measures reflect 100% ownership of F&G Segment for 1/1/22
through 11/30/22 and approximately 85% ownership for 12/1/22
through 12/31/22
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
December 31,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
1,025
|
|
$
1,025
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
1,350
|
|
1,350
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
1,672
|
|
795
|
|
838
|
|
39
|
Total title and
escrow
|
|
4,047
|
|
3,170
|
|
838
|
|
39
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
537
|
|
26
|
|
511
|
|
—
|
Recognized gains and
losses, net
|
|
213
|
|
(135)
|
|
345
|
|
3
|
Total
revenue
|
|
4,797
|
|
3,061
|
|
1,694
|
|
42
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
932
|
|
874
|
|
36
|
|
22
|
Agent
commissions
|
|
1,034
|
|
1,034
|
|
—
|
|
—
|
Other operating
expenses
|
|
497
|
|
444
|
|
29
|
|
24
|
Benefits & other
policy reserve changes
|
|
1,404
|
|
—
|
|
1,404
|
|
—
|
Depreciation and
amortization
|
|
105
|
|
35
|
|
65
|
|
5
|
Provision for title
claim losses
|
|
107
|
|
107
|
|
—
|
|
—
|
Interest
expense
|
|
31
|
|
—
|
|
8
|
|
23
|
Total
expenses
|
|
4,110
|
|
2,494
|
|
1,542
|
|
74
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
687
|
|
$
567
|
|
$
152
|
|
$
(32)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
158
|
|
122
|
|
31
|
|
5
|
Earnings from
equity investments
|
|
10
|
|
10
|
|
—
|
|
—
|
Earnings (loss)
from discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling
interests
|
|
6
|
|
6
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
1.89
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
$
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
1.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
1.87
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
$
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
1.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
282
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
285
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. FOURTH QUARTER SEGMENT
INFORMATION (In millions, except order information in
thousands)
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
December 31,
2021
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
from discontinued operations, net of tax
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations, attributable to common
shareholders
|
|
$
533
|
|
$
449
|
|
$
121
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
687
|
|
567
|
|
152
|
|
(32)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
118
|
|
135
|
|
(14)
|
|
(3)
|
Indexed product
related derivatives
|
|
21
|
|
—
|
|
21
|
|
—
|
Purchase price
amortization
|
|
25
|
|
15
|
|
6
|
|
4
|
Amortization of
actuarial intangibles
|
|
13
|
|
—
|
|
13
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
864
|
|
$
717
|
|
$
178
|
|
$
(31)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
177
|
|
$
150
|
|
$
26
|
|
$
1
|
Income taxes on
non-GAAP adjustments
|
|
(42)
|
|
(36)
|
|
(5)
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
135
|
|
$
114
|
|
$
21
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings attributable to common shareholders
|
|
$
668
|
|
$
563
|
|
$
142
|
|
$
(37)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
2.34
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT
INFORMATION2 (In millions, except order
information in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Twelve Months
Ended
|
|
|
|
|
December 31,
2022
|
|
|
|
|
Direct title
premiums
|
|
$
2,858
|
|
$
2,858
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
3,976
|
|
3,976
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
4,324
|
|
2,502
|
|
1,695
|
|
127
|
Total title and
escrow
|
|
11,158
|
|
9,336
|
|
1,695
|
|
127
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,891
|
|
213
|
|
1,655
|
|
23
|
Recognized gains and
losses, net
|
|
(1,493)
|
|
(443)
|
|
(1,010)
|
|
(40)
|
Total
revenue
|
|
11,556
|
|
9,106
|
|
2,340
|
|
110
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
3,192
|
|
2,987
|
|
157
|
|
48
|
Agent
commissions
|
|
3,064
|
|
3,064
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,721
|
|
1,515
|
|
102
|
|
104
|
Benefits & other
policy reserve changes
|
|
1,125
|
|
—
|
|
1,125
|
|
—
|
Depreciation and
amortization
|
|
496
|
|
142
|
|
329
|
|
25
|
Provision for title
claim losses
|
|
308
|
|
308
|
|
—
|
|
—
|
Interest
expense
|
|
115
|
|
—
|
|
29
|
|
86
|
Total
expenses
|
|
10,021
|
|
8,016
|
|
1,742
|
|
263
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,535
|
|
$
1,090
|
|
$
598
|
|
$
(153)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
398
|
|
298
|
|
117
|
|
(17)
|
Earnings (loss)
from equity investments
|
|
15
|
|
15
|
|
—
|
|
—
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-controlling
interests
|
|
16
|
|
17
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,136
|
|
$
790
|
|
$
481
|
|
$
(135)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
4.13
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
4.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
4.10
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
—
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
4.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
275
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
277
|
|
|
|
|
|
|
|
2 FNF's
consolidated earnings, per share metrics and related non-GAAP
measures reflect 100% ownership of F&G Segment for 1/1/22
through 11/30/22 and approximately 85% ownership for 12/1/22
through 12/31/22.
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT
INFORMATION2 (In millions, except order
information in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Twelve Months
Ended
|
|
|
|
|
December 31,
2022
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
1,136
|
|
$
790
|
|
$
481
|
|
$
(135)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
1,136
|
|
$
790
|
|
$
481
|
|
$
(135)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
1,535
|
|
$
1,090
|
|
$
598
|
|
$
(153)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
600
|
|
443
|
|
117
|
|
40
|
Indexed product
related derivatives
|
|
(354)
|
|
—
|
|
(354)
|
|
—
|
Purchase price
amortization
|
|
95
|
|
60
|
|
21
|
|
14
|
Transaction
costs
|
|
12
|
|
—
|
|
10
|
|
2
|
Amortization of
actuarial intangibles
|
|
6
|
|
—
|
|
6
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
1,894
|
|
$
1,593
|
|
$
398
|
|
$
(97)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
359
|
|
$
503
|
|
$
(200)
|
|
$
56
|
Income taxes on
non-GAAP adjustments
|
|
(70)
|
|
(121)
|
|
64
|
|
(13)
|
Deferred tax
asset valuation allowance
|
|
68
|
|
58
|
|
—
|
|
10
|
Non-controlling
interest on non-GAAP adjustments
|
|
(8)
|
|
—
|
|
(7)
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
349
|
|
$
440
|
|
$
(143)
|
|
$
52
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) from continuing operations attributable to common
shareholders
|
|
$
1,485
|
|
$
1,230
|
|
$
338
|
|
$
(83)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from
continuing operations attributable to common shareholders -
diluted
|
|
$
5.36
|
|
|
|
|
|
|
|
2 FNF's
consolidated earnings, per share metrics and related non-GAAP
measures reflect 100% ownership of F&G Segment for 1/1/22
through 11/30/22 and approximately 85% ownership for 12/1/22
through 12/31/22.
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT INFORMATION (In
millions, except order information in thousands)
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
December 31,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
3,571
|
|
$
3,571
|
|
$
—
|
|
$
—
|
Agency title
premiums
|
|
4,982
|
|
4,982
|
|
—
|
|
—
|
Escrow, title related
and other fees
|
|
4,795
|
|
3,228
|
|
1,395
|
|
172
|
Total title and
escrow
|
|
13,348
|
|
11,781
|
|
1,395
|
|
172
|
|
|
|
|
|
|
|
|
|
Interest and investment
income
|
|
1,961
|
|
109
|
|
1,852
|
|
—
|
Recognized gains and
losses, net
|
|
334
|
|
(393)
|
|
715
|
|
12
|
Total
revenue
|
|
15,643
|
|
11,497
|
|
3,962
|
|
184
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
3,528
|
|
3,292
|
|
129
|
|
107
|
Agent
commissions
|
|
3,821
|
|
3,821
|
|
—
|
|
—
|
Other operating
expenses
|
|
1,929
|
|
1,725
|
|
105
|
|
99
|
Benefits & other
policy reserve changes
|
|
2,138
|
|
—
|
|
2,138
|
|
—
|
Depreciation and
amortization
|
|
645
|
|
138
|
|
484
|
|
23
|
Provision for title
claim losses
|
|
385
|
|
385
|
|
—
|
|
—
|
Interest
expense
|
|
114
|
|
—
|
|
29
|
|
85
|
Total
expenses
|
|
12,560
|
|
9,361
|
|
2,885
|
|
314
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
$
3,083
|
|
$
2,136
|
|
$
1,077
|
|
$
(130)
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
713
|
|
511
|
|
220
|
|
(18)
|
Earnings from
equity investments
|
|
64
|
|
58
|
|
—
|
|
6
|
Earnings (loss)
from discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
Non-controlling
interests
|
|
20
|
|
19
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
2,422
|
|
$
1,664
|
|
$
865
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
basic
|
|
$
8.47
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
basic
|
|
$
0.03
|
|
|
|
|
|
|
EPS attributable to
common shareholders - basic
|
|
$
8.50
|
|
|
|
|
|
|
EPS from continuing
operations attributable to common shareholders -
diluted
|
|
$
8.41
|
|
|
|
|
|
|
EPS from
discontinued operations attributable to common shareholders -
diluted
|
|
$
0.03
|
|
|
|
|
|
|
EPS attributable to
common shareholders - diluted
|
|
$
8.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
- basic
|
|
285
|
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
287
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. YTD SEGMENT INFORMATION (In
millions, except order information in thousands)
(Unaudited)
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December 31,
2021
|
|
|
|
|
Net earnings (loss)
attributable to common shareholders
|
|
$
2,422
|
|
$
1,664
|
|
$
865
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
|
8
|
|
—
|
|
8
|
|
—
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
|
$
2,414
|
|
$
1,664
|
|
$
857
|
|
$
(107)
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss) from continuing operations
|
|
3,083
|
|
2,136
|
|
1,077
|
|
(130)
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
272
|
|
393
|
|
(109)
|
|
(12)
|
Indexed product
related derivatives
|
|
(146)
|
|
—
|
|
(146)
|
|
—
|
Purchase price
amortization
|
|
99
|
|
57
|
|
26
|
|
16
|
Transaction
costs
|
|
13
|
|
—
|
|
5
|
|
8
|
Amortization of
actuarial intangibles
|
|
123
|
|
—
|
|
123
|
|
—
|
Other
non-recurring items
|
|
(284)
|
|
—
|
|
(284)
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
3,160
|
|
$
2,586
|
|
$
692
|
|
$
(118)
|
|
|
|
|
|
|
|
|
|
Total non-GAAP, pre-tax
adjustments
|
|
$
77
|
|
$
450
|
|
$
(385)
|
|
$
12
|
Income taxes on
non-GAAP adjustments
|
|
(32)
|
|
(108)
|
|
79
|
|
(3)
|
Non-controlling
interest on non-GAAP adjustments
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Total non-GAAP
adjustments
|
|
$
44
|
|
$
342
|
|
$
(306)
|
|
$
8
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings (loss) attributable to common shareholders
|
|
$
2,458
|
|
$
2,006
|
|
$
551
|
|
$
(99)
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
attributable to common shareholders - diluted
|
|
$
8.56
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC. SUMMARY BALANCE SHEET
INFORMATION (In millions)
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash and investment
portfolio
|
|
|
$
47,656
|
|
|
$
47,135
|
Goodwill
|
|
|
4,642
|
|
|
4,539
|
Title plant
|
|
|
416
|
|
|
400
|
Total assets
|
|
|
65,589
|
|
|
60,690
|
Notes
payable
|
|
|
3,238
|
|
|
3,096
|
Reserve for title claim
losses
|
|
|
1,810
|
|
|
1,883
|
Secured trust
deposits
|
|
|
862
|
|
|
934
|
Accumulated other
comprehensive (loss) earnings
|
|
|
(2,862)
|
|
|
779
|
Non-controlling
interests
|
|
|
360
|
|
|
43
|
Total equity and
non-controlling interests
|
|
|
5,979
|
|
|
9,457
|
Total equity
attributable to common shareholders
|
|
|
5,619
|
|
|
9,414
|
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
|
|
|
Twelve Months
Ended
|
(Dollars in
millions)
|
December 31,
2022
|
December 31,
2021
|
|
|
December 31,
2022
|
December 31,
2021
|
Pre-tax
earnings
|
$
239
|
$
567
|
|
|
$
1,090
|
$
2,136
|
Non-GAAP adjustments
before taxes
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
(29)
|
135
|
|
|
443
|
393
|
Purchase price
amortization
|
17
|
15
|
|
|
60
|
57
|
Total non-GAAP
adjustments
|
(12)
|
150
|
|
|
503
|
450
|
Adjusted pre-tax
earnings
|
$
227
|
$
717
|
|
|
$
1,593
|
$
2,586
|
Adjusted pre-tax
margin
|
12.3 %
|
22.4 %
|
|
|
16.7 %
|
21.7 %
|
FIDELITY NATIONAL
FINANCIAL, INC. QUARTERLY OPERATING
STATISTICS (Unaudited)
|
|
|
|
Q4
2022
|
|
Q3
2022
|
|
Q2
2022
|
|
Q1
2022
|
|
Q4
2021
|
|
Q3
2021
|
|
Q2
2021
|
|
Q1
2021
|
Quarterly Opened
Orders ('000's except % data)
|
Total opened
orders*
|
|
266
|
|
363
|
|
443
|
|
522
|
|
536
|
|
688
|
|
695
|
|
770
|
Total opened orders per
day*
|
|
4.3
|
|
5.7
|
|
6.9
|
|
8.6
|
|
8.5
|
|
10.8
|
|
10.9
|
|
12.6
|
Purchase % of opened
orders
|
|
76 %
|
|
76 %
|
|
75 %
|
|
62 %
|
|
53 %
|
|
50 %
|
|
53 %
|
|
42 %
|
Refinance % of opened
orders
|
|
24 %
|
|
24 %
|
|
25 %
|
|
38 %
|
|
47 %
|
|
50 %
|
|
47 %
|
|
58 %
|
Total closed
orders*
|
|
216
|
|
278
|
|
348
|
|
380
|
|
477
|
|
527
|
|
568
|
|
597
|
Total closed orders per
day*
|
|
3.5
|
|
4.3
|
|
5.4
|
|
6.2
|
|
7.6
|
|
8.2
|
|
8.9
|
|
9.8
|
Purchase % of closed
orders
|
|
76 %
|
|
76 %
|
|
71 %
|
|
55 %
|
|
51 %
|
|
50 %
|
|
47 %
|
|
34 %
|
Refinance % of closed
orders
|
|
24 %
|
|
24 %
|
|
29 %
|
|
45 %
|
|
49 %
|
|
50 %
|
|
53 %
|
|
66 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(millions, except orders in '000's)
|
Total commercial
revenue
|
|
$ 344
|
|
$ 381
|
|
$ 436
|
|
$ 374
|
|
$ 546
|
|
$ 366
|
|
$ 347
|
|
$ 257
|
Total commercial opened
orders
|
|
44.9
|
|
54.8
|
|
64.2
|
|
66.1
|
|
64.5
|
|
66.8
|
|
69.4
|
|
62.2
|
Total commercial closed
orders
|
|
30.5
|
|
35.2
|
|
39.7
|
|
37.4
|
|
46.1
|
|
40.1
|
|
42.3
|
|
34.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National commercial
revenue
|
|
$ 173
|
|
$ 191
|
|
$ 220
|
|
$ 196
|
|
$ 313
|
|
$ 183
|
|
$ 176
|
|
$ 127
|
National commercial
opened orders
|
|
17.8
|
|
22.1
|
|
26.7
|
|
27.5
|
|
26.0
|
|
27.7
|
|
27.4
|
|
23.4
|
National commercial
closed orders
|
|
11.9
|
|
14.0
|
|
15.3
|
|
14.6
|
|
18.1
|
|
14.8
|
|
14.9
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fee Per
File
|
Fee per file
|
|
$
3,649
|
|
$
3,621
|
|
$
3,557
|
|
$
2,891
|
|
$
3,023
|
|
$
2,581
|
|
$
2,444
|
|
$
1,944
|
Residential fee per
file
|
|
$
2,542
|
|
$
2,697
|
|
$
2,695
|
|
$
2,188
|
|
$
2,158
|
|
$
2,097
|
|
$
2,030
|
|
$
1,644
|
Total commercial fee
per file
|
|
$ 11,300
|
|
$
10,800
|
|
$
11,000
|
|
$
10,000
|
|
$ 11,800
|
|
$
9,100
|
|
$
8,200
|
|
$
7,400
|
National commercial fee
per file
|
|
$ 14,600
|
|
$
13,600
|
|
$
14,400
|
|
$
13,400
|
|
$ 17,300
|
|
$
12,400
|
|
$
11,800
|
|
$
11,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Staffing
|
Total field operations
employees
|
|
10,700
|
|
12,000
|
|
12,700
|
|
13,400
|
|
13,600
|
|
13,700
|
|
13,500
|
|
13,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual title claims
paid ($ millions)
|
|
$ 79
|
|
$
65
|
|
$
55
|
|
$
54
|
|
$ 62
|
|
$
55
|
|
$
56
|
|
$
46
|
Title Segment (continued)
FIDELITY NATIONAL
FINANCIAL, INC. MONTHLY TITLE ORDER
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
Month
|
|
/ (%
Purchase)
|
|
/ (%
Purchase)
|
October 2022
|
|
|
102,000
|
76 %
|
|
|
78,000
|
75 %
|
November
2022
|
|
|
87,000
|
77 %
|
|
|
68,000
|
77 %
|
December
2022
|
|
|
77,000
|
75 %
|
|
|
70,000
|
78 %
|
|
|
|
|
|
|
|
Fourth Quarter
2022
|
|
|
266,000
|
76 %
|
|
|
216,000
|
76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Orders Opened
*
|
|
|
Direct Orders Closed
*
|
Month
|
|
/ (%
Purchase)
|
|
|
/ (%
Purchase)
|
October 2021
|
|
|
196,000
|
53 %
|
|
|
165,000
|
50 %
|
November
2021
|
|
|
182,000
|
53 %
|
|
|
153,000
|
50 %
|
December
2021
|
|
|
158,000
|
51 %
|
|
|
159,000
|
54 %
|
|
|
|
|
|
|
|
Fourth Quarter
2021
|
|
|
536,000
|
53 %
|
|
|
477,000
|
51 %
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
F&G Segment
The table below reconciles net earnings attributable to common
shareholders to adjusted net earnings attributable to common
shareholders.
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
(Dollars in
millions)
|
December 31,
2022
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
December 31,
2021
|
Net earnings (loss)
attributable to common shareholders
|
$
(100)
|
|
$
121
|
|
|
$
481
|
|
$
865
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
—
|
|
—
|
|
|
—
|
|
8
|
Net earnings (loss)
from continuing operations attributable to common
shareholders
|
$
(100)
|
|
$
121
|
|
|
$
481
|
|
$
857
|
Non-GAAP
adjustments(1):
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
136
|
|
(14)
|
|
|
117
|
|
(109)
|
Indexed product
related derivatives
|
212
|
|
21
|
|
|
(354)
|
|
(146)
|
Purchase price
amortization
|
5
|
|
6
|
|
|
21
|
|
26
|
Transaction
costs
|
2
|
|
—
|
|
|
10
|
|
5
|
Amortization of
actuarial intangibles
|
(81)
|
|
13
|
|
|
6
|
|
123
|
Other
non-recurring items
|
—
|
|
—
|
|
|
—
|
|
(284)
|
Income taxes on
non-GAAP adjustments
|
(36)
|
|
(5)
|
|
|
64
|
|
79
|
Non-controlling
interest on non-GAAP adjustments
|
(7)
|
|
—
|
|
|
(7)
|
|
—
|
Adjusted net
earnings attributable to common
shareholders(1)(2)
|
$
131
|
|
$
142
|
|
|
$
338
|
|
$
551
|
The table below provides a summary of sales highlights.
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
(In
millions)
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
December 31,
2021
|
Total annuity
sales(1)
|
|
$
2,441
|
|
$
1,356
|
|
|
$
8,294
|
|
$
6,048
|
Indexed universal life
sales(1)
|
|
35
|
|
28
|
|
|
127
|
|
87
|
Funding agreements
(FABN/FHLB)
|
|
—
|
|
35
|
|
|
1,443
|
|
2,310
|
Pension risk
transfer
|
|
243
|
|
776
|
|
|
1,390
|
|
1,147
|
Gross
sales(1)
|
|
$
2,719
|
|
$
2,195
|
|
|
$
11,254
|
|
$
9,592
|
Sales attributable to
flow reinsurance to third parties
|
|
(808)
|
|
(151)
|
|
|
(2,248)
|
|
(869)
|
Net
Sales
|
|
$
1,911
|
|
$
2,044
|
|
|
$
9,006
|
|
$
8,723
|
|
Footnotes:
|
1
|
Non-GAAP financial
measure. See the Non-GAAP Measures section below for additional
information.
|
2
|
FNF's consolidated
earnings, per share metrics and related non-GAAP measures reflect
100% ownership of F&G Segment for 1/1/22 through 11/30/22 and
approximately 85% ownership for 12/1/22 through
12/31/22.
|
DEFINITIONS
The following represents the definitions of non-GAAP measures
used by the Company.
Adjusted Net Earnings Attributable to Common Shareholders
(Adjusted Net Earnings)
Adjusted net earnings is a non-GAAP economic measure we use to
evaluate financial performance each period. Adjusted net earnings
is calculated by adjusting net earnings (loss) from continuing
operations 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 effect of changes in fair value of the reinsurance related
embedded derivative;
|
ii.
|
Indexed product related
derivatives: 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;
|
iii.
|
Purchase price
amortization: the impacts related to the amortization of certain
intangibles (internally developed software, trademarks and value of
distribution asset ("VODA")) 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.
|
Amortization of
actuarial intangibles and SOP 03-1 reserve offset: The intangibles
amortization and SOP 03-1 change offsets related to the above
mentioned adjustments;
|
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; and
|
ix.
|
Non-controlling
interest on non-GAAP adjustments: the portion of the non-GAAP
adjustments attributable to the equity interest of F&G that FNF
does not own
|
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 uses the following components:
i.
|
total invested assets
at amortized cost, excluding derivatives, net of reinsurance
qualifying for risk transfer in accordance with GAAP;
|
ii.
|
related party loans and
investments;
|
iii.
|
accrued investment
income;
|
iv.
|
the net
payable/receivable for the purchase/sale of investments,
and
|
v.
|
cash and cash
equivalents excluding derivative collateral at the end the
period.
|
Management considers this non-GAAP financial measure to be
useful internally and to investors and analysts when assessing the
rate of return on assets available for reinvestment.
Average Assets Under Management (AAUM) (Quarterly and
YTD)
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 assets available
for reinvestment.
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.
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content:https://www.prnewswire.com/news-releases/fnf-reports-fourth-quarter-and-full-year-2022-financial-results-301753664.html
SOURCE Fidelity National Financial, Inc.