Last10K.com

Fidelity National Financial, Inc. (FNF) SEC Filing 8-K Material Event for the period ending Tuesday, August 3, 2021

Fidelity National Financial, Inc.

CIK: 1331875 Ticker: FNF

graphicfnfer.jpg
FNF Reports Second Quarter 2021 Diluted EPS from Continuing Operations of $1.90 and Adjusted Diluted EPS from Continuing Operations of $2.06, Pre-Tax Title Margin of 21.5% and Adjusted Pre-Tax Title Margin of 22.7%
Jacksonville, Fla. - (August 3, 2021) - Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, today reported operating results for the period ended June 30, 2021.

Total revenue of $3.9 billion in the second quarter versus $2.4 billion in the second quarter of 2020
Second quarter net earnings from continuing operations of $546 million and adjusted net earnings from continuing operations of $592 million versus net earnings from continuing operations of $304 million and adjusted net earnings of $301 million for the second quarter of 2020
Second quarter diluted EPS from continuing operations of $1.90 and adjusted diluted EPS from continuing operations of $2.06 versus diluted EPS from continuing operations of $1.09 and adjusted diluted EPS from continuing operations of $1.08 in the second quarter of 2020
Recognized gains were $232 million in the second quarter versus $162 million in the second quarter of 2020 primarily due to mark to market accounting treatment of equity and preferred stock securities whether the securities were disposed of in the quarter or continue to be held in our investment portfolio

Title
Total revenue of $3.0 billion versus $2.2 billion in total revenue in the second quarter of 2020
Total revenue, excluding recognized gains and losses, of $3.0 billion versus $2.1 billion in the second quarter of 2020, an increase of 47%
Pre-tax earnings of $644 million and adjusted pre-tax earnings of $688 million versus pre-tax earnings of $528 million and adjusted pre-tax earnings of $378 million in the second quarter of 2020
Pre-tax title margin of 21.5% and adjusted pre-tax title margin of 22.7% versus pre-tax title margin of 23.7% and adjusted pre-tax title margin of 18.4% in the second quarter of 2020
Second quarter refinance orders opened decreased 25% on a daily basis and refinance orders closed decreased 5% on a daily basis versus the second quarter of 2020; purchase orders opened increased 41% on a daily basis and purchase orders closed increased 57% on a daily basis versus the second quarter of 2020
Total commercial revenue of $347 million, an 89% increase versus total commercial revenue in the second quarter of 2020, driven by a 65% increase in closed orders; second quarter total commercial orders opened increased 58% compared to the prior year
Overall second quarter average fee per file of $2,444, a 29% increase versus the second quarter of 2020

Title Orders
Direct Orders Opened *Direct Orders Closed *
Month  / (% Purchase)  / (% Purchase)
April 2021  236,00052%  200,00043%
May 2021  223,00052%  176,00048%
June 2021  236,00054%  192,00050%
      
Second Quarter 2021  695,00053%  568,00047%
Direct Orders Opened *Direct Orders Closed *
Month  / (% Purchase)  / (% Purchase)
April 2020  210,00031%  157,00034%
May 2020  218,00039%  150,00033%
June 2020  265,00042%  180,00038%
      
Second Quarter 2020  693,00037%  487,00035%
* Includes an immaterial number of non-purchase and non-refinance orders

1


F&G

F&G, a leading provider of annuities and life insurance, reported operating results for the second quarter of 2021. As a result of acquisition accounting (purchase accounting or PGAAP), financial results for periods after June 1, 2020 are generally not comparable to the results of prior periods. Certain metrics, such as sales and policyholder account values, are not affected by PGAAP and are comparable to prior period data.
Total Retail Annuity Sales of $1.6 billion in the second quarter, an increase of 80% to the prior year, and an increase of 9% over the sequential quarter
Fixed Indexed Annuities (FIA) Sales of $1.1 billion in the second quarter, an increase of 31% to the prior year, and an increase of 8% over the sequential quarter
F&G entered the Institutional market with a $750 million funding agreement-backed note issuance on June 29, 2021, and has secured its first pension risk transfer transaction which represents pension obligations of approximately $65 million and is expected to close in August 2021
Average Assets Under Management (AAUM) of $30.4 billion for the second quarter, up from $29.0 billion in the sequential period driven by net new business asset flows
Net Investment Spread: FIA spread for the second quarter of 335 basis points; Total Spread, including all product lines, for the second quarter of 295 basis points
Net Earnings Attributable to Common Shareholders of $82 million for the second quarter, including a $6 million gain from discontinued operations and $16 million net favorable mark-to-market and other items which are excluded from Adjusted Net Earnings
Adjusted Net Earnings From Continuing Operations Attributable to Common Shareholders of $92 million for the second quarter, including $22 million of net favorable notable items

William P. Foley, II, Chairman, commented, “I am very pleased with our second quarter results as we continue to set records in our Title business and in F&G's sales results, further validating our decision to acquire the company just over one year ago. We are building a company that has a financial model designed to deliver earnings and cash flow through changing market environments. One year in, we can already see the early signs of our success and I would like to thank all of our employees for their hard work and dedication for without their efforts this would not be possible.

Looking at our Title results, we generated record adjusted pre-tax title earnings of $688 million and an adjusted pre-tax title margin of 22.7%, compared to adjusted pre-tax title earnings of $378 million and an adjusted pretax title margin of 18.4% in the 2020 comparable quarter. Our second quarter margins matched our record margins from the fourth quarter of 2020 and were driven, in part, by our investments in technology, operations and automation over the years as we have worked to improve our efficiency across all facets of our Title business as we strive to continuously improve our profitability. Total commercial revenues reached record levels of $347 million for the quarter, compared to $184 million in the second quarter of 2020, as total commercial orders closed increased 65%, as compared to the year ago quarter.

Turning to F&G, we continue to make great progress on our diversified growth strategy. During the second quarter we entered the Institutional market with a $750 million funding agreement-backed note issuance and, just last week, secured our first pension risk transfer deal. In addition, sustained momentum in the bank and broker dealer distribution channels, launched following the 2020 acquisition, have propelled retail sales to record levels in the quarter, while still maintaining attractive spreads. These new markets have advanced us as a well-diversified player in the retail and institutional spaces, all while leveraging our existing core capabilities."

Mr. Foley concluded, "Our capital allocation strategy remains a key focus of the Board. Our disciplined strategy is focused on returning capital to shareholders, while making necessary investments in our businesses to drive growth. We recently announced our third quarter dividend of $0.40 per share, an increase of 11% from our previous quarterly dividend, and have continued to make share repurchases throughout the second quarter, executing against our $500 million share repurchase plan. During the quarter we purchased 4 million shares at an average purchase price of $43.36 per share.”
2


Conference Call
We will host a call with investors and analysts to discuss second quarter 2021 FNF results on Wednesday, August 4, 2021, beginning at 12:00 p.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 August 4, 2021, through August 11, 2021, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13720504. An expanded quarterly financial supplement providing segment results is available on the FNF Investor Relations website.

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 annuity and life insurance products and is headquartered in Des Moines, Iowa. For more information, please visit www.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, FNF has provided non-GAAP financial measures, which it 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, adjusted 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), F&G adjusted earnings, F&G adjusted earnings attributable to common shareholders, F&G adjusted operating return on common shareholders’ equity excluding AOCI, F&G net investment spread, F&G average assets under management and F&G sales.

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. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related 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: the ability of FNF to successfully integrate F&G's operations and employees; the potential impact of the consummation of the F&G transaction on relationships, including with employees, suppliers, customers and competitors; 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
SOURCE: Fidelity National Financial, Inc.
CONTACT: Jamie Lillis, Managing Director, Solebury Trout, 203-428-3223, jlillis@soleburytrout.com
3


FIDELITY NATIONAL FINANCIAL, INC.
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Three Months Ended
June 30, 2021
Direct title premiums$904 $904 $— $— 
Agency title premiums1,256 1,256 — — 
Escrow, title related and other fees 948 839 62 47 
Total title and escrow3,108 2,999 62 47 
Interest and investment income514 27 487 — 
Recognized gains and losses, net232 (30)253 
Total revenue3,854 2,996 802 56 
Personnel costs890 826 32 32 
Agent commissions970 970 — — 
Other operating expenses 476 425 26 25 
Benefits & other policy reserve changes575 — 575 — 
Depreciation and amortization105 34 65 
Claim loss expense97 97 — — 
Interest expense28 — 21 
Total expenses3,141 2,352 705 84 
Pre-tax earnings (loss) from continuing operations$713 $644 $97 $(28)
  Income tax expense (benefit)176 160 21 (5)
  Earnings (loss) from equity investments14 14 — — 
  Earnings from discontinued operations, net of tax 6 — — 
  Non-controlling interests5 — — 
Net earnings (loss) attributable to common shareholders$552 $493 $82 $(23)
EPS from continuing operations attributable to common shareholders - basic$1.91 
EPS from discontinued operations attributable to common shareholders - basic0.02 
EPS attributable to common shareholders - basic$1.93 
EPS from continuing operations attributable to common shareholders - diluted$1.90 
EPS from discontinued operations attributable to common shareholders - diluted0.02 
EPS attributable to common shareholders - diluted$1.92 
Weighted average shares - basic286 
Weighted average shares - diluted288 






4


FIDELITY NATIONAL FINANCIAL, INC.
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Three Months Ended
June 30, 2021
Net earnings (loss) attributable to common shareholders$552 $493 $82 $(23)
  Earnings from discontinued operations, net of tax6 — — 
Net earnings (loss) from continuing operations attributable to common shareholders$546 $493 $76 $(23)
Pre-tax earnings (loss) from continuing operations$713 $644 $97 $(28)
 Non-GAAP Adjustments
  Recognized (gains) and losses, net(42)30 (63)(9)
  Indexed product related derivatives75 — 75 — 
  Purchase price amortization24 14 
  Transaction costs4 — 
Adjusted pre-tax earnings (loss)$774 $688 $117 $(31)
Total non-GAAP, pre-tax adjustments$61 $44 $20 $(3)
  Income taxes on non-GAAP adjustments(14)(11)(4)
  Non-controlling interest on non-GAAP adjustments(1)— — (1)
Total non-GAAP adjustments$46 $33 $16 $(3)
Adjusted net earnings (loss) from continuing operations attributable to common shareholders$592 $526 $92 $(26)
Adjusted EPS from continuing operations attributable to common shareholders - diluted$2.06 






















5


FIDELITY NATIONAL FINANCIAL, INC.
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Three Months Ended
June 30, 2020
Direct title premiums$575 $575 $— $— 
Agency title premiums784 784 — — 
Escrow, title related and other fees 747 655 20 72 
Total title and escrow2,106 2,014 20 72 
Interest and investment income152 41 111 — 
Recognized gains and losses, net 162 169 (7)— 
Total revenue2,420 2,224 124 72 
Personnel costs692 625 58 
Agent commissions598 598 — — 
Other operating expenses446 374 12 60 
Benefits & other policy reserve changes 155 — 155 — 
Depreciation and amortization46 37 
Claim loss expense61 61 — — 
Interest expense21 17 
Total expenses2,019 1,696 182 141 
Pre-tax earnings (loss) $401 $528 $(58)$(69)
  Income tax expense (benefit)89 130 (14)(27)
  Earnings from equity investments1 — (1)
  Earnings from discontinued operations, net of tax5 — — 
  Non-controlling interests9 — — 
Net earnings (loss) attributable to common shareholders$309 $391 $(39)$(43)
EPS from continuing operations attributable to common shareholders - basic$1.10 
EPS from discontinued operations attributable to common shareholders - basic$0.02 
EPS attributable to common shareholders - basic$1.12 
EPS from continuing operations attributable to common shareholders - diluted$1.09 
EPS from discontinued operations attributable to common shareholders - diluted$0.02 
EPS attributable to common shareholders - diluted$1.11 
Weighted average shares - basic277 
Weighted average shares - diluted279 

6


FIDELITY NATIONAL FINANCIAL, INC.
SECOND QUARTER SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Three Months Ended
June 30, 2020
Net earnings (loss) attributable to common shareholders$309 $391 $(39)$(43)
  Earnings from discontinued operations, net of tax$5 $ $5 $ 
Net earnings (loss) from continuing operations, attributable to common shareholders$304 $391 $(44)$(43)
Non-GAAP Adjustments
  Recognized (gains) and losses, net(123)(169)46 — 
  Indexed product related derivatives 43 — 43 — 
  Debt issuance costs4 — — 
  Purchase price amortization25 18 2
  Transaction costs45 — 738 
  Other adjustments1 — — 
Adjusted pre-tax earnings (loss)$396 $378 $40 $(22)
Total non-GAAP, pre-tax adjustments$(5)$(150)$98 $47 
  Income taxes on non-GAAP adjustments5 37 (21)(11)
  Non-controlling interest on non-GAAP adjustments(3)(2)— (1)
Total non-GAAP adjustments$(3)$(115)$77 $35 
Adjusted net earnings attributable to common shareholders$301 $276 $33 $(8)
Adjusted EPS attributable to common shareholders - diluted$1.08 
7


FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Six Months Ended
June 30, 2021
Direct title premiums$1,650 $1,650 $— $— 
Agency title premiums2,314 2,314 — — 
Escrow, title related and other fees 1,799 1,584 126 89 
Total title and escrow5,763 5,548 126 89 
Interest and investment income 916 56 860 — 
Recognized gains and losses, net275 (89)355 
Total revenue6,954 5,515 1,341 98 
Personnel costs1,702 1,580 61 61 
Agent commissions1,777 1,777 — — 
Other operating expenses934 830 54 50 
Benefits & other policy reserve changes549 — 549 — 
Depreciation and amortization288 67 209 12 
Claim loss expense178 178 — — 
Interest expense56 — 15 41 
Total expenses5,484 4,432 888 164 
Pre-tax earnings (loss) from continuing operations$1,470 $1,083 $453 $(66)
  Income tax expense (benefit)342 263 93 (14)
  Earnings (loss) from equity investments27 22 — 
  Earnings from discontinued operations, net of tax11 — 11 — 
  Non-controlling interests9 — — 
Net earnings (loss) attributable to common shareholders$1,157 $833 $371 $(47)
EPS from continuing operations attributable to common shareholders - basic$3.99 
EPS from discontinued operations attributable to common shareholders - basic0.04 
EPS attributable to common shareholders - basic$4.03 
EPS from continuing operations attributable to common shareholders - diluted$3.96 
EPS from discontinued operations attributable to common shareholders - diluted0.04 
EPS attributable to common shareholders - diluted$4.00 
Weighted average shares - basic287 
Weighted average shares - diluted289 
8


FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Six Months Ended
June 30, 2021
Net earnings (loss) attributable to common shareholders$1,157 $833 $371 $(47)
Earnings from discontinued operations, net of tax11 — 11 — 
Net earnings (loss) from continuing operations attributable to common shareholders$1,146 $833 $360 $(47)
Pre-tax earnings (loss) from continuing operations$1,470 $1,083 $453 $(66)
Non-GAAP Adjustments
  Recognized (gains) and losses, net(65)89 (145)(9)
  Indexed product related derivatives(110)— (110)— 
  Purchase price amortization49 28 13 
  Transaction costs10 — 
Adjusted pre-tax earnings (loss)$1,354 $1,200 $215 $(61)
Total non-GAAP, pre-tax adjustments$(116)$117 $(238)$
  Income taxes on non-GAAP adjustments19 (28)48 (1)
  Non-controlling interest on non-GAAP adjustments(1)— — (1)
Total non-GAAP adjustments$(98)$89 $(190)$3 
Adjusted net earnings (loss) from continuing operations attributable to common shareholders$1,048 $922 $170 $(44)
Adjusted EPS from continuing operations attributable to common shareholders - diluted$3.63 

9


FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
F&G
Six Months EndedConsolidatedTitleCorporate and Other
June 30, 2020
Direct title premiums$1,121 $1,121 $— $— 
Agency title premiums1,516 1,516 — — 
Escrow, title related and other fees 1,348 1,265 20 63 
Total title and escrow3,985 3,902 20 63 
Interest and investment income205 89 111 
Recognized gains and losses, net (158)(144)(7)(7)
Total revenue4,032 3,847 124 61 
Personnel costs1,306 1,266 31 
Agent commissions1,158 1,158 — — 
Other operating expenses857 754 12 91 
Benefits & other policy reserve changes 155 — 155 — 
Depreciation and amortization89 74 12 
Claim loss expense119 119 — — 
Interest expense33 29 
Total expenses3,717 3,372 182 163 
Pre-tax earnings (loss) from continuing operations$315 $475 $(58)$(102)
  Income tax expense (benefit)61 111 (14)(36)
  Earnings from equity investments2 — (1)
  Earnings from discontinued operations, net of tax5 — — 
  Non-controlling interests13 13 — — 
Net earnings (loss) attributable to common shareholders$248 $354 $(39)$(67)
EPS from continuing operations attributable to common shareholders - basic$0.88 
EPS from discontinued operations attributable to common shareholders - basic$0.02 
EPS attributable to common shareholders - basic$0.90 
EPS from continuing operations attributable to common shareholders - diluted$0.87 
EPS from discontinued operations attributable to common shareholders - diluted$0.02 
EPS attributable to common shareholders - diluted$0.89 
Weighted average shares - basic275 
Weighted average shares - diluted278 

10


FIDELITY NATIONAL FINANCIAL, INC.
YTD SEGMENT INFORMATION
(In millions, except order information in thousands)
(Unaudited)
ConsolidatedTitleF&GCorporate and Other
Six Months Ended
June 30, 2020
Net earnings (loss) attributable to common shareholders$248 $354 $(39)$(67)
Earnings from discontinued operations, net of tax5 — 5— 
Net earnings (loss) from continuing operations attributable to common shareholders$243 $354 $(44)$(67)
Non-GAAP Adjustments
  Recognized (gains) and losses, net197 144 46
  Indexed product related derivatives 43 — 43— 
  Debt issuance costs4 — — 
  Purchase price amortization48 37 2
  Transaction costs51 — 744 
  Other adjustments1 — — 
Adjusted pre-tax earnings (loss)$659 $657 $40$(38)
Total non-GAAP, pre-tax adjustments$344 $182 $98 $64 
  Income taxes on non-GAAP adjustments(78)(42)(21)(15)
  Non-controlling interest on non-GAAP adjustments(6)(5)— (1)
Total non-GAAP adjustments$260 $135 $77 $48 
Adjusted net earnings (loss) attributable to common shareholders$503 $489 33$(19)
Adjusted EPS attributable to common shareholders - diluted$1.81 




11


FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In millions)
  June 30,
2021
December 31,
2020
  (Unaudited)(Unaudited)
Cash and investment portfolio $41,968 $37,766 
Goodwill  4,506  4,495 
Title plant  400  404 
Total assets  54,520  50,455 
Notes payable  2,663  2,662 
Reserve for title claim losses  1,677  1,623 
Secured trust deposits  930  711 
Non-controlling interests42 41 
Total equity and non-controlling interests  8,888  8,392 
Total equity attributable to common shareholders8,846 8,351 

12




Non-GAAP Measures and Other Information

Title

The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.

Three Months Ended
Six Months Ended
(Dollars in millions)June 30, 2021
June 30, 2020
June 30, 2021
June 30, 2020
Pre-tax earnings (loss)
$644 $528 $1,083 $475 
Non-GAAP adjustments before taxes
  Recognized (gains) and losses, net
30 (169)89 144 
  Purchase price amortization
14 18 28 37 
  Other adjustments
— — 
Total non-GAAP adjustments
44 (150)117 182 
Adjusted pre-tax earnings
$688 $378 $1,200 $657 
Adjusted pre-tax margin
22.7 %18.4 %21.4 %16.5 %



FIDELITY NATIONAL FINANCIAL, INC.
QUARTERLY OPERATING STATISTICS
(Unaudited)
Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020Q4 2019Q3 2019
Quarterly Opened Orders ('000's except % data)
Total opened orders*695 770 728 847 693 682 492 592 
Total opened orders per day*10.9 12.6 11.6 13.2 10.8 11.0 7.8 9.3 
Purchase % of opened orders53 %42 %38 %40 %37 %41 %50 %52 %
Refinance % of opened orders47 %58 %62 %60 %63 %59 %50 %48 %
Total closed orders*568 597 617 571 487 377 417 409 
Total closed orders per day*8.9 9.8 9.8 8.9 7.6 6.1 6.6 6.4 
Purchase % of closed orders47 %34 %38 %42 %35 %46 %49 %55 %
Refinance % of closed orders53 %66 %62 %58 %65 %54 %51 %45 %
Commercial (millions, except orders in '000's)
Total commercial revenue$347 $257 $322 $216 $184 $245 $321 $301 
Total commercial opened orders69.4 62.2 57.0 58.1 43.9 56.3 55.1 56.0 
Total commercial closed orders42.3 34.8 39.5 30.6 25.7 31.0 39.1 36.4 
National commercial revenue$176 $127 $177 $113 $96 $132 $186 $172 
National commercial opened orders27.4 23.4 21.4 21.7 15.2 21.5 22.6 23.8 
National commercial closed orders14.9 11.2 13.4 9.8 8.8 10.7 16.2 14.1 
Total Fee Per File
Fee per file$2,444 $1,944 $2,116 $2,063 $1,889 $2,224 $2,384 $2,459 
Residential fee per file$2,030 $1,644 $1,661 $1,803 $1,614 $1,744 $1,792 $1,928 
Total commercial fee per file$8,200 $7,400 $8,200 $7,100 $7,200 $7,900 $8,200 $8,300 
National commercial fee per file$11,800 $11,300 $13,200 $11,500 $10,900 $12,300 $11,500 $12,200 
Total Staffing
Total field operations employees13,500 13,200 12,800 12,300 10,900 12,500 12,300 12,200 
Actual title claims paid ($ millions)$56 $46 $54 $50 $51 $48 $53 $52 
* Includes an immaterial number of non-purchase and non-refinance orders


13



F&G

The table below reconciles the reported after-tax net loss from continuing operations to adjusted earnings from continuing operations attributable to common shareholders.
Three Months EndedOne Month EndedSix Months Ended
June 30, 2021June 30, 2020June 30, 2021
(Dollars in millions)
Net earnings (loss) attributable to common shareholders $82 $(39)$371 
Less: Earnings (loss) from discontinued operations, net of tax11 
Net earnings (loss) from continuing operations attributable to common shareholders$76 $(44)$360 
Non-GAAP adjustments (1,2):
  Recognized (gains) and losses, net (63)46 (145)
  Indexed product related derivatives 75 43 (110)
  Purchase price amortization13 
  Transaction costs
  Income taxes on non-GAAP adjustments (4)(21)48 
Adjusted earnings from continuing operations attributable to common shareholders$92 $33 $170 

Adjusted earnings from continuing operations include $22 million and $34 million of net favorable items in the three and six months ended June 30, 2021 respectively and $8 million net favorable items in the one month ended June 30,2020.

The table below provides summary financial highlights.
Three Months EndedOne Month EndedSix Months Ended
(Dollars in millions)June 30, 2021June 30, 2020June 30, 2021
Average assets under management (AAUM)(1)
$30,423 $26,582 $29,722 
Net investment spread - FIA(1)
3.35 %3.47 %3.15 %
Net investment spread - All products(1)
2.95 %3.50 %2.75 %
Net earnings (loss) from continuing operations attributable to common shareholders$76 $(44)$360 
Adjusted earnings from continuing operations attributable to common shareholders(1)
$92 $33 $170 


The table below provides a summary of annuity sales, which are not affected by PGAAP and are comparable to prior period data.
Three Months EndedSix Months Ended
(In millions)June 30, 2021June 30, 2020June 30, 2021June 30, 2020
Fixed indexed annuity (FIA) sales(1)
$1,135 $866 $2,182 $1,697 
Total annuity sales(1)
$1,647 $913 $3,161 $1,858 


Footnotes:
1.Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.
2.Amounts are net of offsets related to value of business acquired (VOBA), deferred acquisition cost (DAC), deferred sale inducement (DSI) amortization, and unearned revenue (UREV) amortization, as applicable.








14



DEFINITIONS
The following represents the definitions of non-GAAP measures used by F&G.

Adjusted Earnings

Adjusted Earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted earnings is calculated by adjusting net earnings (loss) from continuing operations 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; the impact of market volatility on the alternative asset portfolio; 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, and the fair value accounting impact of assumed reinsurance,

(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, and

(iv) Transaction costs: the impacts related to acquisition, integration and merger related items.

Adjustments to Adjusted Earnings are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these 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 Earnings Attributable to Common Shareholders

Adjusted Earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted Earnings attributable to common shareholders is calculated by adjusting net earnings (loss) available to common shareholders to eliminate the same items as described in the Adjusted Earnings paragraph above. While these adjustments are an integral part of the overall performance of the Company, 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.

Net Investment Spread

Net investment spread is the excess of net investment income, adjusted for market volatility on the alternative asset investment portfolio, earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return provided to policyholders, inclusive of hedging costs.

Average Assets Under Management (AAUM)

AAUM is calculated as the sum of:
(i) total invested assets at amortized cost, excluding derivatives;

(ii) related party loans and investments;

(iii) accrued investment income;

(iv) funds withheld at fair value;

(v) the net payable/receivable for the purchase/sale of investments, and

(iv) cash and cash equivalents, excluding derivative collateral, 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.



15



Sales (FIA Sales and Total Retail Annuity Sales)

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. Annuity and IUL sales are recorded as deposit liabilities (i.e. contractholder funds) within the Company's unaudited condensed consolidated financial statements in accordance with GAAP. 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.


###



























16

View differences made from one to another to evaluate Fidelity National Financial, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Fidelity National Financial, Inc..

Continue

Assess how Fidelity National Financial, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Fidelity National Financial, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Fidelity National Financial, Inc. provided additional information to their SEC Filing as exhibits

Ticker: FNF
CIK: 1331875
Form Type: 8-K Corporate News
Accession Number: 0001331875-21-000045
Submitted to the SEC: Tue Aug 03 2021 4:22:11 PM EST
Accepted by the SEC: Tue Aug 03 2021
Period: Tuesday, August 3, 2021
Industry: Title Insurance
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/fnf/0001331875-21-000045.htm