JACKSONVILLE, Fla.,
Aug. 3, 2021 /PRNewswire/
-- 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
|
|
|
236,000
|
52%
|
|
|
200,000
|
43%
|
May 2021
|
|
|
223,000
|
52%
|
|
|
176,000
|
48%
|
June 2021
|
|
|
236,000
|
54%
|
|
|
192,000
|
50%
|
|
|
|
|
|
|
|
Second Quarter
2021
|
|
|
695,000
|
53%
|
|
|
568,000
|
47%
|
|
|
|
|
|
|
|
|
|
|
Direct Orders
Opened *
|
|
|
Direct Orders
Closed *
|
Month
|
|
/ (%
Purchase)
|
|
|
/ (%
Purchase)
|
April 2020
|
|
|
210,000
|
31%
|
|
|
157,000
|
34%
|
May 2020
|
|
|
218,000
|
39%
|
|
|
150,000
|
33%
|
June 2020
|
|
|
265,000
|
42%
|
|
|
180,000
|
38%
|
|
|
|
|
|
|
|
Second Quarter
2020
|
|
|
693,000
|
37%
|
|
|
487,000
|
35%
|
* Includes an
immaterial number of non-purchase and non-refinance
orders
|
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."
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 www.fnf.com. The conference call replay
will be available via webcast through the FNF Investor Relations
website at www.fnf.com. The telephone replay will be available from
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 www.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
FIDELITY NATIONAL
FINANCIAL, INC.
|
SECOND QUARTER
SEGMENT INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
June 30,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
|
904
|
|
|
$
|
904
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
1,256
|
|
|
1,256
|
|
|
—
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
948
|
|
|
839
|
|
|
62
|
|
|
47
|
|
Total title and
escrow
|
|
3,108
|
|
|
2,999
|
|
|
62
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
514
|
|
|
27
|
|
|
487
|
|
|
—
|
|
Recognized gains and
losses, net
|
|
232
|
|
|
(30)
|
|
|
253
|
|
|
9
|
|
Total
revenue
|
|
3,854
|
|
|
2,996
|
|
|
802
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
890
|
|
|
826
|
|
|
32
|
|
|
32
|
|
Agent
commissions
|
|
970
|
|
|
970
|
|
|
—
|
|
|
—
|
|
Other operating
expenses
|
|
476
|
|
|
425
|
|
|
26
|
|
|
25
|
|
Benefits & other
policy reserve changes
|
|
575
|
|
|
—
|
|
|
575
|
|
|
—
|
|
Depreciation and
amortization
|
|
105
|
|
|
34
|
|
|
65
|
|
|
6
|
|
Claim loss
expense
|
|
97
|
|
|
97
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
28
|
|
|
—
|
|
|
7
|
|
|
21
|
|
Total
expenses
|
|
3,141
|
|
|
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 investments
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
Earnings from
discontinued operations, net of tax
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
Non-controlling interests
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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 - basic
|
|
0.02
|
|
|
|
|
|
|
|
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 - diluted
|
|
0.02
|
|
|
|
|
|
|
|
EPS attributable
to common shareholders - diluted
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
286
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
288
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
SECOND QUARTER
SEGMENT INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate 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 tax
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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 derivatives
|
|
75
|
|
|
—
|
|
|
75
|
|
|
—
|
|
Purchase price
amortization
|
|
24
|
|
|
14
|
|
|
6
|
|
|
4
|
|
Transaction
costs
|
|
4
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
1
|
|
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
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
SECOND QUARTER
SEGMENT INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Three Months
Ended
|
|
|
|
|
June 30,
2020
|
|
|
|
|
Direct title
premiums
|
|
$
|
575
|
|
|
$
|
575
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
784
|
|
|
784
|
|
|
—
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
747
|
|
|
655
|
|
|
20
|
|
|
72
|
|
Total title and
escrow
|
|
2,106
|
|
|
2,014
|
|
|
20
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
152
|
|
|
41
|
|
|
111
|
|
|
—
|
|
Recognized gains and
losses, net
|
|
162
|
|
|
169
|
|
|
(7)
|
|
|
—
|
|
Total
revenue
|
|
2,420
|
|
|
2,224
|
|
|
124
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
692
|
|
|
625
|
|
|
9
|
|
|
58
|
|
Agent
commissions
|
|
598
|
|
|
598
|
|
|
—
|
|
|
—
|
|
Other operating
expenses
|
|
446
|
|
|
374
|
|
|
12
|
|
|
60
|
|
Benefits & other
policy reserve changes
|
|
155
|
|
|
—
|
|
|
155
|
|
|
—
|
|
Depreciation and
amortization
|
|
46
|
|
|
37
|
|
|
3
|
|
|
6
|
|
Claim loss
expense
|
|
61
|
|
|
61
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
21
|
|
|
1
|
|
|
3
|
|
|
17
|
|
Total
expenses
|
|
2,019
|
|
|
1,696
|
|
|
182
|
|
|
141
|
|
|
|
|
|
|
|
|
|
|
Pre-tax earnings
(loss)
|
|
$
|
401
|
|
|
$
|
528
|
|
|
$
|
(58)
|
|
|
$
|
(69)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit)
|
|
89
|
|
|
130
|
|
|
(14)
|
|
|
(27)
|
|
Earnings from
equity investments
|
|
1
|
|
|
2
|
|
|
—
|
|
|
(1)
|
|
Earnings from
discontinued operations, net of tax
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
Non-controlling interests
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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 - basic
|
|
277
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
279
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
SECOND QUARTER
SEGMENT INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate 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
costs
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Purchase price
amortization
|
|
25
|
|
|
18
|
|
|
2
|
|
|
5
|
|
Transaction
costs
|
|
45
|
|
|
—
|
|
|
7
|
|
|
38
|
|
Other
adjustments
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
|
396
|
|
|
$
|
378
|
|
|
$
|
40
|
|
|
$
|
(22)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
(5)
|
|
|
$
|
(150)
|
|
|
$
|
98
|
|
|
$
|
47
|
|
Income taxes
on non-GAAP adjustments
|
|
5
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
YTD SEGMENT
INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate and
Other
|
Six Months
Ended
|
|
|
|
|
June 30,
2021
|
|
|
|
|
Direct title
premiums
|
|
$
|
1,650
|
|
|
$
|
1,650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
2,314
|
|
|
2,314
|
|
|
—
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,799
|
|
|
1,584
|
|
|
126
|
|
|
89
|
|
Total title and
escrow
|
|
5,763
|
|
|
5,548
|
|
|
126
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
916
|
|
|
56
|
|
|
860
|
|
|
—
|
|
Recognized gains and
losses, net
|
|
275
|
|
|
(89)
|
|
|
355
|
|
|
9
|
|
Total
revenue
|
|
6,954
|
|
|
5,515
|
|
|
1,341
|
|
|
98
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
1,702
|
|
|
1,580
|
|
|
61
|
|
|
61
|
|
Agent
commissions
|
|
1,777
|
|
|
1,777
|
|
|
—
|
|
|
—
|
|
Other operating
expenses
|
|
934
|
|
|
830
|
|
|
54
|
|
|
50
|
|
Benefits & other
policy reserve changes
|
|
549
|
|
|
—
|
|
|
549
|
|
|
—
|
|
Depreciation and
amortization
|
|
288
|
|
|
67
|
|
|
209
|
|
|
12
|
|
Claim loss
expense
|
|
178
|
|
|
178
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
56
|
|
|
—
|
|
|
15
|
|
|
41
|
|
Total
expenses
|
|
5,484
|
|
|
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 investments
|
|
27
|
|
|
22
|
|
|
—
|
|
|
5
|
|
Earnings from
discontinued operations, net of tax
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
Non-controlling interests
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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 - basic
|
|
0.04
|
|
|
|
|
|
|
|
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 - diluted
|
|
0.04
|
|
|
|
|
|
|
|
EPS attributable
to common shareholders - diluted
|
|
$
|
4.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
287
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
289
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
YTD SEGMENT
INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate 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 tax
|
|
11
|
|
|
—
|
|
|
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
amortization
|
|
49
|
|
|
28
|
|
|
13
|
|
|
8
|
|
Transaction
costs
|
|
10
|
|
|
—
|
|
|
4
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax
earnings (loss)
|
|
$
|
1,354
|
|
|
$
|
1,200
|
|
|
$
|
215
|
|
|
$
|
(61)
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP,
pre-tax adjustments
|
|
$
|
(116)
|
|
|
$
|
117
|
|
|
$
|
(238)
|
|
|
$
|
5
|
|
Income taxes
on non-GAAP adjustments
|
|
19
|
|
|
(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
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
YTD SEGMENT
INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
F&G
|
|
|
Six Months
Ended
|
|
Consolidated
|
|
Title
|
|
|
Corporate and
Other
|
June 30,
2020
|
|
|
|
|
Direct title
premiums
|
|
$
|
1,121
|
|
|
$
|
1,121
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Agency title
premiums
|
|
1,516
|
|
|
1,516
|
|
|
—
|
|
|
—
|
|
Escrow, title related
and other fees
|
|
1,348
|
|
|
1,265
|
|
|
20
|
|
|
63
|
|
Total title and
escrow
|
|
3,985
|
|
|
3,902
|
|
|
20
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
Interest and
investment income
|
|
205
|
|
|
89
|
|
|
111
|
|
|
5
|
|
Recognized gains and
losses, net
|
|
(158)
|
|
|
(144)
|
|
|
(7)
|
|
|
(7)
|
|
Total
revenue
|
|
4,032
|
|
|
3,847
|
|
|
124
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
Personnel
costs
|
|
1,306
|
|
|
1,266
|
|
|
9
|
|
|
31
|
|
Agent
commissions
|
|
1,158
|
|
|
1,158
|
|
|
—
|
|
|
—
|
|
Other operating
expenses
|
|
857
|
|
|
754
|
|
|
12
|
|
|
91
|
|
Benefits & other
policy reserve changes
|
|
155
|
|
|
—
|
|
|
155
|
|
|
—
|
|
Depreciation and
amortization
|
|
89
|
|
|
74
|
|
|
3
|
|
|
12
|
|
Claim loss
expense
|
|
119
|
|
|
119
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
33
|
|
|
1
|
|
|
3
|
|
|
29
|
|
Total
expenses
|
|
3,717
|
|
|
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 investments
|
|
2
|
|
|
3
|
|
|
—
|
|
|
(1)
|
|
Earnings from
discontinued operations, net of tax
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
Non-controlling interests
|
|
13
|
|
|
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 - basic
|
|
275
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
278
|
|
|
|
|
|
|
|
FIDELITY NATIONAL
FINANCIAL, INC.
|
YTD SEGMENT
INFORMATION
|
(In millions, except
order information in thousands)
|
(Unaudited)
|
|
|
|
Consolidated
|
|
Title
|
|
F&G
|
|
Corporate 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 tax
|
|
5
|
|
|
—
|
|
|
5
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) from continuing operations attributable to
common shareholders
|
|
$
|
243
|
|
|
$
|
354
|
|
|
$
|
(44)
|
|
|
$
|
(67)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
Recognized
(gains) and losses, net
|
|
197
|
|
|
144
|
|
|
46
|
|
7
|
|
Indexed
product related derivatives
|
|
43
|
|
|
—
|
|
|
43
|
|
—
|
|
Debt issuance
costs
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Purchase price
amortization
|
|
48
|
|
|
37
|
|
|
2
|
|
9
|
|
Transaction
costs
|
|
51
|
|
|
—
|
|
|
7
|
|
44
|
|
Other
adjustments
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
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
interests
|
|
|
42
|
|
|
|
41
|
|
Total equity and
non-controlling interests
|
|
|
8,888
|
|
|
|
8,392
|
|
Total equity
attributable to common shareholders
|
|
|
8,846
|
|
|
|
8,351
|
|
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
|
—
|
|
1
|
|
|
|
—
|
|
1
|
|
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
2021
|
|
Q1
2021
|
|
Q4
2020
|
|
Q3
2020
|
|
Q2
2020
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
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
orders
|
|
53
|
%
|
|
42
|
%
|
|
38
|
%
|
|
40
|
%
|
|
37
|
%
|
|
41
|
%
|
|
50
|
%
|
|
52
|
%
|
Refinance % of opened
orders
|
|
47
|
%
|
|
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
orders
|
|
47
|
%
|
|
34
|
%
|
|
38
|
%
|
|
42
|
%
|
|
35
|
%
|
|
46
|
%
|
|
49
|
%
|
|
55
|
%
|
Refinance % of closed
orders
|
|
53
|
%
|
|
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 orders
|
|
69.4
|
|
|
62.2
|
|
|
57.0
|
|
|
58.1
|
|
|
43.9
|
|
|
56.3
|
|
|
55.1
|
|
|
56.0
|
|
Total commercial
closed orders
|
|
42.3
|
|
|
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 orders
|
|
27.4
|
|
|
23.4
|
|
|
21.4
|
|
|
21.7
|
|
|
15.2
|
|
|
21.5
|
|
|
22.6
|
|
|
23.8
|
|
National commercial
closed orders
|
|
14.9
|
|
|
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 employees
|
|
13,500
|
|
|
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
|
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
Ended
|
|
One Month
Ended
|
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
|
|
June 30,
2021
|
(Dollars in
millions)
|
|
|
|
|
|
|
Net earnings
(loss) attributable to common shareholders
|
$
|
82
|
|
|
$
|
(39)
|
|
|
|
$
|
371
|
|
Less: Earnings (loss)
from discontinued operations, net of tax
|
6
|
|
|
5
|
|
|
|
11
|
|
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
amortization
|
6
|
|
|
2
|
|
|
|
13
|
|
Transaction
costs
|
2
|
|
|
7
|
|
|
|
4
|
|
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
Ended
|
|
One Month
Ended
|
|
|
Six Months
Ended
|
(Dollars in
millions)
|
June 30,
2021
|
|
June 30,
2020
|
|
|
June 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
Ended
|
|
|
Six Months
Ended
|
(In
millions)
|
|
June 30,
2021
|
|
June 30,
2020
|
|
|
June 30,
2021
|
|
June 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:
- Non-GAAP financial measure. See the Non-GAAP Measures section
below for additional information.
- 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.
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.
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.
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SOURCE Fidelity National Financial, Inc.