FNF Reports Third Quarter 2024 Financial Results
Fidelity National Financial (FNF) reported Q3 2024 net earnings of $266 million ($0.97 per share), down from $426 million ($1.57 per share) in Q3 2023. However, adjusted net earnings increased to $356 million ($1.30 per share) from $333 million ($1.23 per share) year-over-year. The Title Segment maintained strong performance with $244 million contribution, while F&G Segment grew to $135 million from $102 million. Total revenue reached $3.6 billion, with Title Segment revenue at $2.1 billion and F&G achieving record assets under management of $62.9 billion. The company maintained an industry-leading adjusted pre-tax title margin of 15.9%.
Fidelity National Financial (FNF) ha riportato utili netti nel terzo trimestre del 2024 pari a 266 milioni di dollari (0,97 dollari per azione), in calo rispetto ai 426 milioni di dollari (1,57 dollari per azione) nel terzo trimestre del 2023. Tuttavia, gli utili netti rettificati sono aumentati a 356 milioni di dollari (1,30 dollari per azione) dai 333 milioni di dollari (1,23 dollari per azione) dell'anno precedente. Il segmento Titoli ha mantenuto un'eccellente performance con un contributo di 244 milioni di dollari, mentre il segmento F&G è cresciuto a 135 milioni di dollari dai 102 milioni di dollari. Il fatturato totale ha raggiunto i 3,6 miliardi di dollari, con ricavi del segmento Titoli pari a 2,1 miliardi di dollari e F&G che ha ottenuto un record di attività under management di 62,9 miliardi di dollari. L'azienda ha mantenuto un margine titolo rettificato pre-imposte leader nel settore del 15,9%.
Fidelity National Financial (FNF) reportó ganancias netas en el tercer trimestre de 2024 de 266 millones de dólares (0,97 dólares por acción), una disminución respecto a los 426 millones de dólares (1,57 dólares por acción) del tercer trimestre de 2023. Sin embargo, las ganancias netas ajustadas aumentaron a 356 millones de dólares (1,30 dólares por acción) desde 333 millones de dólares (1,23 dólares por acción) en comparación con el año anterior. El segmento de Títulos mantuvo un fuerte desempeño con una contribución de 244 millones de dólares, mientras que el segmento F&G creció a 135 millones de dólares desde 102 millones de dólares. Los ingresos totales alcanzaron los 3,6 mil millones de dólares, con ingresos del segmento Títulos de 2,1 mil millones de dólares y F&G logrando activos bajo gestión de 62,9 mil millones de dólares. La empresa mantuvo un margen de título ajustado antes de impuestos líder en la industria del 15,9%.
피델리티 내셔널 파이낸셜 (FNF)는 2024년 3분기 순이익이 2억 6,600만 달러(주당 0.97달러)라고 발표했으며, 이는 2023년 3분기의 4억 2,600만 달러(주당 1.57달러)에서 감소한 수치입니다. 그러나 조정된 순이익은 작년의 3억 3,300만 달러(주당 1.23달러)에서 3억 5,600만 달러(주당 1.30달러)로 증가했습니다. 타이틀 부문은 2억 4,400만 달러의 기여로 강력한 성과를 유지했으며, F&G 부문은 1억 3,500만 달러에서 1억 2백만 달러로 성장했습니다. 총 수익은 36억 달러에 달했으며, 타이틀 부문 수익은 21억 달러, F&G는 629억 달러의 관리 자산 기록을 달성했습니다. 회사는 15.9%의 업계 최고 조정 세전 타이틀 마진을 유지했습니다.
Fidelity National Financial (FNF) a annoncé un bénéfice net de 266 millions de dollars (0,97 dollar par action) pour le troisième trimestre de 2024, en baisse par rapport à 426 millions de dollars (1,57 dollar par action) au troisième trimestre de 2023. Cependant, le bénéfice net ajusté a augmenté à 356 millions de dollars (1,30 dollar par action) contre 333 millions de dollars (1,23 dollar par action) l'année précédente. Le segment des titres a maintenu une forte performance avec une contribution de 244 millions de dollars, tandis que le segment F&G a progressé à 135 millions de dollars contre 102 millions de dollars. Les revenus totaux ont atteint 3,6 milliards de dollars, avec des revenus du segment des titres s'élevant à 2,1 milliards de dollars et F&G atteignant des actifs sous gestion record de 62,9 milliards de dollars. L'entreprise a maintenu une marge de titre ajustée avant impôt de 15,9 %, leader du secteur.
Fidelity National Financial (FNF) meldete für das dritte Quartal 2024 einen Nettoertrag von 266 Millionen Dollar (0,97 Dollar pro Aktie), was einen Rückgang gegenüber 426 Millionen Dollar (1,57 Dollar pro Aktie) im dritten Quartal 2023 darstellt. Die bereinigten Nettogewinne stiegen jedoch von 333 Millionen Dollar (1,23 Dollar pro Aktie) im Vorjahr auf 356 Millionen Dollar (1,30 Dollar pro Aktie). Das Titelsegment zeigte eine starke Leistung mit einem Beitrag von 244 Millionen Dollar, während das F&G-Segment auf 135 Millionen Dollar von 102 Millionen Dollar angewachsen ist. Der Gesamtumsatz erreichte 3,6 Milliarden Dollar, wobei das Titelsegment 2,1 Milliarden Dollar und F&G einen Rekordbestand an verwalteten Vermögenswerten von 62,9 Milliarden Dollar erzielte. Das Unternehmen wies eine branchenführende bereinigte Steuer-anteilige Titelspanne von 15,9 % auf.
- Adjusted net earnings increased to $356M ($1.30 per share) from $333M ($1.23 per share) YoY
- F&G Segment gross sales grew 39% YoY to $3.9B
- Record assets under management of $62.9B, up 20% YoY
- Title Segment revenue increased 12% to $2.1B
- Strong adjusted pre-tax title margin of 15.9%
- Net earnings decreased to $266M from $426M YoY
- Net earnings per share declined to $0.97 from $1.57 YoY
- Slight decline in adjusted pre-tax title margin from 16.2% to 15.9% YoY
Insights
FNF's Q3 2024 results demonstrate resilience in challenging market conditions. Adjusted net earnings of
Key positives include F&G's
Despite high interest rates impacting the real estate market, FNF's multi-channel strategy is proving effective. The
The company's strategic positioning through talent recruitment, acquisitions and technology investments during market headwinds indicates strong long-term growth potential. The diversification between Title and F&G segments provides earnings stability, with F&G now contributing
Net earnings attributable to common shareholders for the third quarter were
Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the third quarter were
- The Title Segment contributed
, in line with$244 million for the third quarter of 2023$245 million - The F&G Segment contributed
, compared to$135 million for the third quarter of 2023, including alternative investment returns below our long-term expectations of$102 million and net significant income items of$35 million . Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation$16 million - The Corporate Segment had adjusted net earnings of
before eliminating$3 million of dividend income from F&G in the consolidated financial statements, compared to$26 million for the third quarter of 2023 before eliminating$8 million of dividend income from F&G in the consolidated financial statements$22 million
Company Highlights
- Strong Title Segment revenue and margin; continue to successfully navigate current market: For the Title Segment, total revenue of
for the quarter, a$2.1 billion 12% increase over in the third quarter of 2023. Total revenue, excluding recognized gains and losses, of$1.9 billion for the third quarter, a$2.0 billion 6% increase over in the third quarter of 2023. Adjusted pre-tax title margin was$1.9 billion 15.9% for the quarter, compared to16.2% in the third quarter of 2023 - F&G Segment robust sales growth across multi-channel platform drove record assets under management: For the F&G Segment, gross sales of
for the third quarter increased$3.9 billion 39% over the third quarter of 2023. F&G achieved record assets under management before flow reinsurance of at the end of the third quarter, an increase of$62.9 billion 20% over the third quarter of 2023 - Sustainable common dividend backed by strong balance sheet: FNF paid common dividends of
per share for$0.48 and ended the third quarter with$130 million in cash and short-term liquid investments at the holding company$822 million
William P. Foley, II, Chairman, commented, "Our Title business continues to outperform in the current market and delivered an industry leading adjusted pre-tax title margin of
Summary Financial Results
(In millions, except per share data) | Three Months Ended | Year to Date | ||||
September 30, 2024 | September 30, 2023 | 2024 | 2023 | |||
Total revenue | $ 3,603 | $ 2,778 | $ 10,060 | $ 8,320 | ||
F&G total gross sales1 | $ 3,878 | $ 2,781 | $ 11,793 | $ 9,070 | ||
F&G assets under management (AUM)1 | $ 52,464 | $ 47,103 | $ 52,464 | $ 47,103 | ||
F&G AUM before flow reinsurance1 | $ 62,875 | $ 52,577 | $ 62,875 | $ 52,577 | ||
Total assets | $ 94,672 | $ 74,002 | $ 94,672 | $ 74,002 | ||
Adjusted pre-tax title margin | 15.9 % | 16.2 % | 14.5 % | 14.3 % | ||
Net earnings attributable to common shareholders | $ 266 | $ 426 | $ 820 | $ 586 | ||
Net earnings per share attributable to common shareholders | $ 0.97 | $ 1.57 | $ 3.00 | $ 2.16 | ||
Adjusted net earnings1 | $ 356 | $ 333 | $ 900 | $ 758 | ||
Adjusted net earnings per share1 | $ 1.30 | $ 1.23 | $ 3.30 | $ 2.80 | ||
Weighted average common diluted shares | 273 | 271 | 273 | 271 | ||
Total common shares outstanding | 274 | 272 | 274 | 272 |
1 See definition of non-GAAP measures below |
Segment Financial Results
Title Segment
This segment consists of the operations of the Company's title insurance underwriters and related businesses, which provide core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services, and home warranty.
Mike Nolan, Chief Executive Officer, said, "We continue to successfully navigate the low transactional environment, and delivered adjusted pre-tax earnings in Title of
Third Quarter 2024 Highlights
- Total revenue of
, compared with$2.1 billion in the third quarter of 2023$1.9 billion - Total revenue, excluding recognized gains and losses, of
, a$2.0 billion 6% increase over the third quarter of 2023- Direct title premiums of
, a$571 million 9% increase over third quarter of 2023 - Agency title premiums of
, an$789 million 8% increase over third quarter of 2023 - Commercial revenue of
, a$290 million 10% increase over third quarter of 2023
- Direct title premiums of
- Purchase orders opened increased
1% on a daily basis over the third quarter of 2023, and purchase orders closed decreased2% on a daily basis from the third quarter of 2023 - Refinance orders opened increased
46% on a daily basis and refinance orders closed increased17% on a daily basis over the third quarter of 2023 - Commercial orders opened increased
3% and commercial orders closed increased1% over the third quarter of 2023 - Total fee per file of
for the third quarter, a$3,708 2% increase over the third quarter of 2023
Third Quarter 2024 Financial Results
- Pre-tax title margin of
17.7% and industry leading adjusted pre-tax title margin of15.9% for the third quarter of 2024, compared to13.2% and16.2% , respectively, for the third quarter of 2023 - Pre-tax earnings from continuing operations in Title for the third quarter of
, compared with$372 million for the third quarter of 2023$248 million - Adjusted pre-tax earnings in Title for the third quarter of
, compared with$323 million for the third quarter of 2023$311 million
F&G Segment
This segment consists of operations of FNF's majority-owned subsidiary F&G, a leading provider of insurance solutions serving retail annuity and life customers and funding agreement and pension risk transfer institutional clients.
Chris Blunt, Chief Executive Officer, commented, "We have profitably grown assets under management before flow reinsurance to a record
Third Quarter 2024
- Robust profitable gross sales: Gross sales of
for the third quarter, an increase of$3.9 billion 39% over the third quarter of 2023, primarily driven by record retail sales - Record Retail channel sales of
for the third quarter, an increase of$3.5 billion 84% over the third quarter of 2023, driven by favorable market conditions and strong demand for retirement savings products - Institutional market sales of nearly
of pension risk transfer for the third quarter, compared to$0.4 billion of pension risk transfer and funding agreements for third quarter of 2023; institutional sales are opportunistic and volumes vary quarter to quarter$0.9 billion - Net sales of
for the third quarter, an increase of$2.4 billion 4% over the third quarter of 2023 - Record AUM before flow reinsurance of
at the end of the third quarter increased$62.9 billion 20% over the third quarter of 2023. This included record AUM of , an increase of$52.5 billion 11% from the third quarter of 2023, driven by retained new business flows and net debt and equity proceeds over the past twelve months - Net loss attributable to common shareholders for F&G Segment of
for the third quarter due to unfavorable mark-to-market movement, compared to net earnings of$5 million for the third quarter of 2023 which included favorable mark-to-market movement$259 million - Adjusted net earnings attributable to common shareholders for F&G Segment of
for the third quarter, compared to$135 million for the third quarter of 2023$102 million - F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation. The third quarter of 2024 includes short term investment income from alternative investments and
of net significant income items, whereas the third quarter of 2023 included short term investment income from alternative investments and no significant income or expense items$16 million - As compared to the prior year quarter, adjusted net earnings reflect asset growth, margin diversification from accretive flow reinsurance fees and owned distribution margin, disciplined expense management and higher interest expense due to planned capital market activity
- Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation
- F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation. The third quarter of 2024 includes short term investment income from alternative investments and
Conference Call
We will host a call with investors and analysts to discuss FNF's third quarter 2024 results on Thursday, November 7, 2024, beginning at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com.
About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries. FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of
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
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this earnings release includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings per share, adjusted pre-tax title earnings, adjusted pre-tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), adjusted net earnings attributable to common shareholders (adjusted net earnings), assets under management (AUM), average assets under management (AAUM) and sales.
Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.
The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, FNF believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company.
Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided below.
Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business, political crisis, war and pandemic conditions, including ongoing geopolitical conflicts; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak
FNF-E
FIDELITY NATIONAL FINANCIAL, INC. THIRD QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Three Months Ended | ||||||||||
September 30, 2024 | ||||||||||
Direct title premiums | $ 571 | $ 571 | $ — | $ — | $ — | |||||
Agency title premiums | 789 | 789 | — | — | — | |||||
Escrow, title related and other fees | 1,159 | 581 | 526 | 52 | — | |||||
Total title and escrow | 2,519 | 1,941 | 526 | 52 | — | |||||
Interest and investment income | 815 | 92 | 712 | 37 | (26) | |||||
Recognized gains and losses, net | 269 | 63 | 206 | — | — | |||||
Total revenue | 3,603 | 2,096 | 1,444 | 89 | (26) | |||||
Personnel costs | 810 | 688 | 80 | 42 | — | |||||
Agent commissions | 612 | 612 | — | — | — | |||||
Other operating expenses | 396 | 328 | 45 | 23 | — | |||||
Benefits & other policy reserve changes | 1,095 | — | 1,095 | — | — | |||||
Market risk benefit (gains) losses | 71 | — | 71 | — | — | |||||
Depreciation and amortization | 189 | 35 | 147 | 7 | — | |||||
Provision for title claim losses | 61 | 61 | — | — | — | |||||
Interest expense | 56 | — | 36 | 20 | — | |||||
Total expenses | 3,290 | 1,724 | 1,474 | 92 | — | |||||
Pre-tax earnings (loss) | $ 313 | $ 372 | $ (30) | $ (3) | $ (26) | |||||
Income tax expense (benefit) | 44 | 73 | (25) | (4) | — | |||||
Earnings (loss) from equity investments | 2 | 2 | — | — | — | |||||
Non-controlling interests | 5 | 5 | — | — | — | |||||
Net earnings (loss) attributable to common shareholders | $ 266 | $ 296 | $ (5) | $ 1 | $ (26) | |||||
EPS attributable to common shareholders - basic | $ 0.98 | |||||||||
EPS attributable to common shareholders - diluted | $ 0.97 | |||||||||
Weighted average shares - basic | 272 | |||||||||
Weighted average shares - diluted | 273 |
FIDELITY NATIONAL FINANCIAL, INC. THIRD QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Three Months Ended | ||||||||||
September 30, 2024 | ||||||||||
Net earnings (loss) attributable to common shareholders | $ 266 | $ 296 | $ (5) | $ 1 | $ (26) | |||||
Pre-tax earnings (loss) | $ 313 | $ 372 | $ (30) | $ (3) | $ (26) | |||||
Non-GAAP Adjustments | ||||||||||
Recognized (gains) and losses, net | (17) | (63) | 46 | — | — | |||||
Market related liability adjustments | 145 | — | 145 | — | — | |||||
Purchase price amortization | 39 | 14 | 22 | 3 | — | |||||
Adjusted pre-tax earnings (loss) | $ 480 | $ 323 | $ 183 | $ — | $ (26) | |||||
Total non-GAAP, pre-tax adjustments | $ 167 | $ (49) | $ 213 | $ 3 | $ — | |||||
Income taxes on non-GAAP adjustments | (33) | 12 | (44) | (1) | — | |||||
Non-controlling interest on non-GAAP adjustments | (29) | — | (29) | — | — | |||||
Deferred tax asset valuation allowance | (15) | (15) | — | — | — | |||||
Total non-GAAP adjustments | $ 90 | $ (52) | $ 140 | $ 2 | $ — | |||||
Adjusted net earnings (loss) attributable to common shareholders | $ 356 | $ 244 | $ 135 | $ 3 | $ (26) | |||||
Adjusted EPS attributable to common shareholders - diluted | $ 1.30 |
FIDELITY NATIONAL FINANCIAL, INC. THIRD QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Three Months Ended | ||||||||||
September 30, 2023 | ||||||||||
Direct title premiums | $ 524 | $ 524 | $ — | $ — | $ — | |||||
Agency title premiums | 728 | 728 | — | — | — | |||||
Escrow, title related and other fees | 1,196 | 577 | 582 | 37 | — | |||||
Total title and escrow | 2,448 | 1,829 | 582 | 37 | — | |||||
Interest and investment income | 686 | 92 | 578 | 38 | (22) | |||||
Recognized gains and losses, net | (356) | (46) | (309) | (1) | — | |||||
Total revenue | 2,778 | 1,875 | 851 | 74 | (22) | |||||
Personnel costs | 734 | 654 | 58 | 22 | — | |||||
Agent commissions | 564 | 564 | — | — | — | |||||
Other operating expenses | 380 | 313 | 38 | 29 | — | |||||
Benefits & other policy reserve changes | 292 | — | 292 | — | — | |||||
Market risk benefit (gains) losses | (49) | — | (49) | — | — | |||||
Depreciation and amortization | 153 | 39 | 108 | 6 | — | |||||
Provision for title claim losses | 57 | 57 | — | — | — | |||||
Interest expense | 44 | — | 24 | 20 | — | |||||
Total expenses | 2,175 | 1,627 | 471 | 77 | — | |||||
Pre-tax earnings (loss) | $ 603 | $ 248 | $ 380 | $ (3) | $ (22) | |||||
Income tax expense (benefit) | 141 | 73 | 74 | (6) | — | |||||
Earnings from equity investments | 15 | 15 | — | — | — | |||||
Non-controlling interests | 51 | 5 | 47 | (1) | — | |||||
Net earnings (loss) attributable to common shareholders | $ 426 | $ 185 | $ 259 | $ 4 | $ (22) | |||||
EPS attributable to common shareholders - basic | $ 1.58 | |||||||||
EPS attributable to common shareholders - diluted | $ 1.57 | |||||||||
Weighted average shares - basic | 270 | |||||||||
Weighted average shares - diluted | 271 |
FIDELITY NATIONAL FINANCIAL, INC. THIRD QUARTER SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Three Months Ended | ||||||||||
September 30, 2023 | ||||||||||
Net earnings (loss) attributable to common shareholders | $ 426 | $ 185 | $ 259 | $ 4 | $ (22) | |||||
Pre-tax earnings (loss) | $ 603 | $ 248 | $ 380 | $ (3) | $ (22) | |||||
Non-GAAP Adjustments | ||||||||||
Recognized (gains) and losses, net | 43 | 46 | (4) | 1 | — | |||||
Market related liability adjustments | (237) | — | (237) | — | — | |||||
Purchase price amortization | 26 | 17 | 5 | 4 | — | |||||
Transaction costs | 1 | — | 1 | — | — | |||||
Adjusted pre-tax earnings (loss) | $ 436 | $ 311 | $ 145 | $ 2 | $ (22) | |||||
Total non-GAAP, pre-tax adjustments | $ (167) | $ 63 | $ (235) | $ 5 | $ — | |||||
Income taxes on non-GAAP adjustments | 33 | (15) | 49 | (1) | — | |||||
Non-controlling interest on non-GAAP adjustments | 29 | — | 29 | — | — | |||||
Deferred tax asset valuation allowance | 12 | 12 | — | — | — | |||||
Total non-GAAP adjustments | $ (93) | $ 60 | $ (157) | $ 4 | $ — | |||||
Adjusted net earnings (loss) attributable to common shareholders | $ 333 | $ 245 | $ 102 | $ 8 | $ (22) | |||||
Adjusted EPS attributable to common shareholders - diluted | $ 1.23 | |||||||||
FIDELITY NATIONAL FINANCIAL, INC. YTD SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Nine Months Ended | ||||||||||
September 30, 2024 | ||||||||||
Direct title premiums | $ 1,575 | $ 1,575 | $ — | $ — | $ — | |||||
Agency title premiums | 2,166 | 2,166 | — | — | — | |||||
Escrow, title related and other fees | 3,555 | 1,636 | 1,772 | 147 | — | |||||
Total title and escrow | 7,296 | 5,377 | 1,772 | 147 | — | |||||
Interest and investment income | 2,308 | 262 | 2,012 | 114 | (80) | |||||
Recognized gains and losses, net | 456 | 51 | 401 | 4 | — | |||||
Total revenue | 10,060 | 5,690 | 4,185 | 265 | (80) | |||||
Personnel costs | 2,316 | 1,986 | 215 | 115 | — | |||||
Agent commissions | 1,681 | 1,681 | — | — | — | |||||
Other operating expenses | 1,152 | 924 | 149 | 79 | — | |||||
Benefits & other policy reserve changes | 2,864 | — | 2,864 | — | — | |||||
Market risk benefit (gains) losses | 80 | — | 80 | — | — | |||||
Depreciation and amortization | 545 | 106 | 417 | 22 | — | |||||
Provision for title claim losses | 168 | 168 | — | — | — | |||||
Interest expense | 152 | — | 94 | 58 | — | |||||
Total expenses | 8,958 | 4,865 | 3,819 | 274 | — | |||||
Pre-tax earnings (loss) from continuing operations | $ 1,102 | $ 825 | $ 366 | $ (9) | $ (80) | |||||
Income tax expense (benefit) | 223 | 190 | 51 | (18) | — | |||||
Earnings (loss) from equity investments | 4 | 4 | — | — | — | |||||
Non-controlling interests | 63 | 12 | 51 | — | — | |||||
Net earnings (loss) attributable to common shareholders | $ 820 | $ 627 | $ 264 | $ 9 | $ (80) | |||||
EPS attributable to common shareholders - basic | $ 3.03 | |||||||||
EPS attributable to common shareholders - diluted | $ 3.00 | |||||||||
Weighted average shares - basic | 271 | |||||||||
Weighted average shares - diluted | 273 |
FIDELITY NATIONAL FINANCIAL, INC. YTD SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Nine Months Ended | ||||||||||
September 30, 2024 | ||||||||||
Net earnings (loss) attributable to common shareholders | $ 820 | $ 627 | $ 264 | $ 9 | $ (80) | |||||
Pre-tax earnings (loss) | $ 1,102 | $ 825 | $ 366 | $ (9) | $ (80) | |||||
Non-GAAP Adjustments | ||||||||||
Recognized (gains) and losses, net | 5 | (51) | 60 | (4) | — | |||||
Market related liability adjustments | 19 | — | 19 | — | — | |||||
Purchase price amortization | 115 | 44 | 63 | 8 | — | |||||
Transaction costs | (2) | — | (3) | 1 | — | |||||
Adjusted pre-tax earnings (loss) | $ 1,239 | $ 818 | $ 505 | $ (4) | $ (80) | |||||
Total non-GAAP, pre-tax adjustments | $ 137 | $ (7) | $ 139 | $ 5 | $ — | |||||
Income taxes on non-GAAP adjustments | (26) | 2 | (27) | (1) | — | |||||
Deferred tax asset valuation allowance | (7) | (7) | — | — | — | |||||
Non-controlling interest on non-GAAP adjustments | (24) | — | (24) | — | — | |||||
Total non-GAAP adjustments | $ 80 | $ (12) | $ 88 | $ 4 | $ — | |||||
Adjusted net earnings (loss) attributable to common shareholders | $ 900 | $ 615 | $ 352 | $ 13 | $ (80) | |||||
Adjusted EPS attributable to common shareholders - diluted | $ 3.30 |
FIDELITY NATIONAL FINANCIAL, INC. YTD SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
F&G | ||||||||||
Nine Months Ended | Consolidated | Title | Corporate and | Elimination | ||||||
September 30, 2023 | ||||||||||
Direct title premiums | $ 1,493 | $ 1,493 | $ — | $ — | $ — | |||||
Agency title premiums | 1,991 | 1,991 | — | — | — | |||||
Escrow, title related and other fees | 3,288 | 1,629 | 1,523 | 136 | — | |||||
Total title and escrow | 6,772 | 5,113 | 1,523 | 136 | — | |||||
Interest and investment income | 1,915 | 252 | 1,622 | 84 | (43) | |||||
Recognized gains and losses, net | (367) | (74) | (257) | (36) | — | |||||
Total revenue | 8,320 | 5,291 | 2,888 | 184 | (43) | |||||
Personnel costs | 2,166 | 1,908 | 167 | 91 | — | |||||
Agent commissions | 1,534 | 1,534 | — | — | — | |||||
Other operating expenses | 1,134 | 939 | 107 | 88 | — | |||||
Benefits & other policy reserve changes | 1,921 | — | 1,921 | — | — | |||||
Market risk benefit (gains) losses | (20) | — | (20) | — | — | |||||
Depreciation and amortization | 438 | 115 | 302 | 21 | — | |||||
Provision for title claim losses | 157 | 157 | — | — | — | |||||
Interest expense | 129 | — | 71 | 58 | — | |||||
Total expenses | 7,459 | 4,653 | 2,548 | 258 | — | |||||
Pre-tax earnings (loss) | $ 861 | $ 638 | $ 340 | $ (74) | $ (43) | |||||
Income tax expense (benefit) | 245 | 165 | 99 | (19) | — | |||||
Earnings from equity investments | 16 | 16 | — | — | — | |||||
Non-controlling interests | 46 | 11 | 36 | (1) | — | |||||
Net earnings (loss) attributable to common shareholders | $ 586 | $ 478 | $ 205 | $ (54) | $ (43) | |||||
EPS attributable to common shareholders - basic | $ 2.17 | |||||||||
EPS attributable to common shareholders - diluted | $ 2.16 | |||||||||
Weighted average shares - basic | 270 | |||||||||
Weighted average shares - diluted | 271 |
FIDELITY NATIONAL FINANCIAL, INC. YTD SEGMENT INFORMATION (In millions, except per share data) (Unaudited) | ||||||||||
Consolidated | Title | F&G | Corporate and | Elimination | ||||||
Nine Months Ended | ||||||||||
September 30, 2023 | ||||||||||
Net earnings (loss) attributable to common shareholders | $ 586 | $ 478 | $ 205 | $ (54) | $ (43) | |||||
Pre-tax earnings (loss) | $ 861 | $ 638 | $ 340 | $ (74) | $ (43) | |||||
Non-GAAP Adjustments | ||||||||||
Recognized (gains) and losses, net | 210 | 74 | 100 | 36 | — | |||||
Market related liability adjustments | (95) | — | (95) | — | — | |||||
Purchase price amortization | 81 | 54 | 16 | 11 | — | |||||
Transaction costs | 8 | — | 3 | 5 | — | |||||
Adjusted pre-tax earnings (loss) | $ 1,065 | $ 766 | $ 364 | $ (22) | $ (43) | |||||
Total non-GAAP, pre-tax adjustments | $ 204 | $ 128 | $ 24 | $ 52 | $ — | |||||
Income taxes on non-GAAP adjustments | (48) | (31) | (5) | (12) | — | |||||
Deferred tax asset valuation allowance | 19 | 11 | — | 8 | — | |||||
Non-controlling interest on non-GAAP adjustments | (3) | — | (3) | — | — | |||||
Total non-GAAP adjustments | $ 172 | $ 108 | $ 16 | $ 48 | $ — | |||||
Adjusted net earnings (loss) attributable to common shareholders | $ 758 | $ 586 | $ 221 | $ (6) | $ (43) | |||||
Adjusted EPS attributable to common shareholders - diluted | $ 2.80 |
FIDELITY NATIONAL FINANCIAL, INC. SUMMARY BALANCE SHEET INFORMATION (In millions) | ||||||
September 30, | December 31, | |||||
(Unaudited) | (Unaudited) | |||||
Cash and investment portfolio | $ 67,957 | $ 58,816 | ||||
Goodwill | 5,272 | 4,830 | ||||
Title plant | 422 | 418 | ||||
Total assets | 94,672 | 80,614 | ||||
Notes payable | 4,186 | 3,887 | ||||
Reserve for title claim losses | 1,720 | 1,770 | ||||
Secured trust deposits | 766 | 731 | ||||
Accumulated other comprehensive (loss) earnings | (1,423) | (2,119) | ||||
Non-controlling interests | 820 | 552 | ||||
Total equity and non-controlling interests | 8,902 | 7,460 | ||||
Total equity attributable to common shareholders | 8,082 | 6,908 |
Non-GAAP Measures and Other Information
Title Segment
The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.
Three Months Ended | Nine Months Ended | |||||
(Dollars in millions) | September 30, | September 30, | September 30, | September 30, | ||
Pre-tax earnings | $ 372 | $ 248 | $ 825 | $ 638 | ||
Non-GAAP adjustments before taxes | ||||||
Recognized (gains) and losses, net | (63) | 46 | (51) | 74 | ||
Purchase price amortization | 14 | 17 | 44 | 54 | ||
Total non-GAAP adjustments | (49) | 63 | (7) | 128 | ||
Adjusted pre-tax earnings | $ 323 | $ 311 | $ 818 | $ 766 | ||
Adjusted pre-tax margin | 15.9 % | 16.2 % | 14.5 % | 14.3 % |
FIDELITY NATIONAL FINANCIAL, INC. QUARTERLY OPERATING STATISTICS (Unaudited) | ||||||||||||||||
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |||||||||
Quarterly Opened Orders ('000's except % data) | ||||||||||||||||
Total opened orders* | 352 | 344 | 315 | 257 | 318 | 347 | 308 | 266 | ||||||||
Total opened orders per day* | 5.5 | 5.5 | 5.1 | 4.1 | 5.0 | 5.4 | 5.0 | 4.3 | ||||||||
Purchase % of opened orders | 73 % | 80 % | 79 % | 78 % | 80 % | 79 % | 78 % | 76 % | ||||||||
Refinance % of opened orders | 27 % | 20 % | 21 % | 22 % | 20 % | 21 % | 22 % | 24 % | ||||||||
Total closed orders* | 232 | 229 | 186 | 192 | 224 | 233 | 188 | 216 | ||||||||
Total closed orders per day* | 3.6 | 3.6 | 3.0 | 3.1 | 3.6 | 3.6 | 3.0 | 3.5 | ||||||||
Purchase % of closed orders | 77 % | 81 % | 79 % | 80 % | 80 % | 81 % | 78 % | 76 % | ||||||||
Refinance % of closed orders | 23 % | 19 % | 21 % | 20 % | 20 % | 19 % | 22 % | 24 % | ||||||||
Commercial (millions, except orders in '000's) | ||||||||||||||||
Total commercial revenue | $ 290 | $ 273 | $ 238 | $ 294 | $ 263 | $ 263 | $ 241 | $ 344 | ||||||||
Total commercial opened orders | 50.8 | 50.7 | 48.7 | 43.7 | 49.1 | 50.2 | 48.5 | 44.9 | ||||||||
Total commercial closed orders | 25.9 | 25.7 | 24.3 | 26.3 | 25.6 | 27.7 | 24.7 | 30.5 | ||||||||
National commercial revenue | $ 151 | $ 145 | $ 123 | $ 164 | $ 131 | $ 132 | $ 123 | $ 177 | ||||||||
National commercial opened orders | 21.9 | 21.4 | 19.4 | 18.2 | 19.2 | 19.5 | 18.8 | 17.8 | ||||||||
National commercial closed orders | 10.4 | 9.8 | 9.2 | 10.1 | 9.4 | 10.1 | 8.7 | 11.9 | ||||||||
Total Fee Per File | ||||||||||||||||
Fee per file | $ 3,708 | $ 3,759 | $ 3,555 | $ 3,806 | $ 3,618 | $ 3,598 | $ 3,446 | $ 3,649 | ||||||||
Residential fee per file | $ 2,881 | $ 2,995 | $ 2,746 | $ 2,889 | $ 2,861 | $ 2,897 | $ 2,601 | $ 2,542 | ||||||||
Total commercial fee per file | $ 10,600 | $ 9,800 | $ 11,200 | $ 9,500 | $ 9,800 | $ 11,300 | ||||||||||
National commercial fee per file | $ 14,800 | $ 16,300 | $ 13,000 | $ 14,100 | $ 14,900 | |||||||||||
Total Staffing | ||||||||||||||||
Total field operations employees | 10,400 | 10,300 | 10,000 | 9,900 | 10,400 | 10,600 | 10,400 | 10,700 | ||||||||
Actual title claims paid ($ millions) | $ 64 | $ 70 | $ 70 | $ 64 | $ 69 | $ 67 | $ 62 | $ 79 |
Title Segment (continued)
FIDELITY NATIONAL FINANCIAL, INC. MONTHLY TITLE ORDER STATISTICS | ||||||||
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
July 2024 | 115,000 | 78 % | 79,000 | 80 % | ||||
August 2024 | 117,000 | 73 % | 79,000 | 78 % | ||||
September 2024 | 120,000 | 68 % | 74,000 | 74 % | ||||
Third Quarter 2024 | 352,000 | 73 % | 232,000 | 77 % | ||||
Direct Orders Opened * | Direct Orders Closed * | |||||||
Month | / (% Purchase) | / (% Purchase) | ||||||
July 2023 | 107,000 | 80 % | 74,000 | 81 % | ||||
August 2023 | 114,000 | 79 % | 80,000 | 80 % | ||||
September 2023 | 97,000 | 79 % | 70,000 | 80 % | ||||
Third Quarter 2023 | 318,000 | 80 % | 224,000 | 80 % | ||||
* Includes an immaterial number of non-purchase and non-refinance orders |
F&G Segment
The table below reconciles net earnings (loss) attributable to common shareholders to adjusted net earnings attributable to common shareholders. The F&G Segment is reported net of noncontrolling minority interest.
Three Months Ended | Nine Months Ended | |||||||
(Dollars in millions) | September 30, | September 30, | September 30, | September 30, | ||||
Net earnings attributable to common shareholders | $ (5) | $ 259 | $ 264 | $ 205 | ||||
Non-GAAP adjustments(1): | ||||||||
Recognized (gains) losses, net | 46 | (4) | 60 | 100 | ||||
Market related liability adjustments | 145 | (237) | 19 | (95) | ||||
Purchase price amortization | 22 | 5 | 63 | 16 | ||||
Transaction costs | — | 1 | (3) | 3 | ||||
Income taxes on non-GAAP adjustments | (44) | 49 | (27) | (5) | ||||
Non-controlling interest on non-GAAP adjustments | (29) | 29 | (24) | (3) | ||||
Adjusted net earnings (loss) attributable to common shareholders(1) | $ 135 | $ 102 | $ 352 | $ 221 |
- Adjusted net earnings of
for the third quarter of 2024 include$135 million , or$111 million per share, of investment income from alternative investments,$0.40 , or$18 million per share, of CLO redemption gains and bond prepay income, and$0.07 , or$12 million per share, of tax valuation allowance benefit; partially offset by$0.04 , or$14 million per share, of net expense from actuarial assumption updates. Alternative investments investment income based on management's long-term expected return of approximately$0.05 10% was , or$146 million per share.$0.53 - Adjusted net earnings of
for the third quarter of 2023 included$102 million , or$97 million per share, of investment income from alternative investments. Alternative investments investment income based on management's long-term expected return of approximately$0.36 10% was , or$121 million per share.$0.45 - Adjusted net earnings of
million for the nine months ended September 30, 2024 include$352 , or$317 million per share, of investment income from alternative investments,$1.16 or$26 million per share of CLO redemption gains and bond prepay income, and$0.10 , or$12 million per share of tax valuation allowance benefit; partially offset by$0.04 , or$27 million per share, of net expense from actuarial assumption and model updates. Alternative investments investment income based on management's long-term expected return of approximately$0.10 10% was , or$413 million per share.$1.51 - Adjusted net earnings of
for the nine months ended September 30, 2023 included$221 million , or$249 million per share, of investment income from alternative investments and$0.92 , or$4 million per share, of bond prepay income, partially offset by$0.01 , or$31 million per share, tax valuation allowance expense. Alternative investments investment income based on management's long-term expected return of approximately$0.11 10% was , or$348 million per share.$1.28
Footnotes: | |
1. | Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information. |
The table below provides a summary of sales highlights.
Three Months Ended | Nine Months Ended | ||||||||
(In millions) | September 30, | September 30, | September 30, | September 30, | |||||
Total annuity sales | $ 3,502 | $ 1,858 | $ 9,389 | $ 6,870 | |||||
Indexed universal life sales | 39 | 38 | 125 | 117 | |||||
Funding agreements (FABN/FHLB) | — | 415 | 1,020 | 871 | |||||
Pension risk transfer | 337 | 470 | 1,259 | 1,212 | |||||
Gross sales(1) | $ 3,878 | $ 2,781 | $ 11,793 | $ 9,070 | |||||
Sales attributable to flow reinsurance to third parties | (1,492) | (513) | (3,660) | (2,381) | |||||
Net Sales(1) | $ 2,386 | $ 2,268 | $ 8,133 | $ 6,689 |
Footnotes: | |
1. | Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information. |
DEFINITIONS
The following represents the definitions of non-GAAP measures used by the Company.
Adjusted Net Earnings attributable to common shareholders
Adjusted net earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings attributable to common shareholders is calculated by adjusting net earnings (loss) attributable to common shareholders to eliminate:
i. Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; and the effects of changes in fair value of the reinsurance related embedded derivative and other derivatives, including interest rate swaps and forwards;
ii. Market related liability adjustments: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost; the impact of initial pension risk transfer deferred profit liability losses, including amortization from previously deferred pension risk transfer deferred profit liability losses; and the changes in the fair value of market risk benefits by deferring current period changes and amortizing that amount over the life of the market risk benefit;
iii. Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset and the change in fair value of liabilities recognized as a result of acquisition activities);
iv. Transaction costs: the impacts related to acquisition, integration and merger related items;
v. Certain income tax adjustments: the impacts related to unusual tax items that do not reflect our core operating performance such as the establishment or reversal of significant deferred tax asset valuation allowances in our Title and Corporate and Other segments;
vi. Other "non-recurring," "infrequent" or "unusual items": Management excludes certain items determined to be "non-recurring," "infrequent" or "unusual" from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years;
vii. Non-controlling interest on non-GAAP adjustments: the portion of the non-GAAP adjustments attributable to the equity interest of entities that FNF does not wholly own; and
viii. Income taxes: the income tax impact related to the above-mentioned adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction
While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.
Assets Under Management (AUM)
AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP:
i. total invested assets at amortized cost, excluding investments in unconsolidated affiliates, owned distribution and derivatives;
ii. investments in unconsolidated affiliates at carrying value;
iii. related party loans and investments;
iv. accrued investment income;
v. the net payable/receivable for the purchase/sale of investments; and
vi. cash and cash equivalents excluding derivative collateral at the end of the period.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained.
AUM before Flow Reinsurance
AUM before Flow Reinsurance is comprised of components consistent with AUM, but also includes flow reinsured assets.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets.
Average Assets Under Management (AAUM)
AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets.
Sales
Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.
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SOURCE Fidelity National Financial, Inc.
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