Fidelity National Financial (FNF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better ...

Core Viewpoint - Fidelity National Financial, Inc. has appointed Gregg N. Sofer as Executive Vice President, Deputy Chief Legal Officer, and Chief Compliance Officer, succeeding Paul Perez who is retiring after nearly two decades of service [1][3]. Company Overview - Fidelity National Financial, Inc. is a leading provider of title insurance and transaction services to the real estate and mortgage industries, as well as insurance solutions for retail annuity and life customers through its subsidiary F&G Annuities & Life, Inc. [1][4]. - The company is the largest title insurance provider in the United States, issuing more title insurance policies than any other title company through its various underwriters [4]. Leadership Transition - Gregg N. Sofer brings over 30 years of legal experience, including significant roles in public service and private practice, and has a strong background in managing complex legal matters, particularly in fraud and compliance [2][3]. - Paul Perez, who has served since 2007, has been instrumental in shaping the compliance culture and legal strategy of the company [3][4].

Core Viewpoint - Fidelity National Financial, Inc. (FNF) is set to release its second quarter 2025 earnings on August 6, 2025, after market close, highlighting its position as a leading provider in the title insurance and transaction services sectors [1][2]. Company Overview - FNF is a prominent provider of title insurance and transaction services for the real estate and mortgage industries, as well as insurance solutions for retail annuity and life customers through its subsidiary F&G Annuities & Life, Inc. [3] - FNF is recognized as the largest title insurance company in the United States, with its underwriters collectively issuing more title insurance policies than any other company in the nation [3]. Earnings Call Information - A conference call to discuss the quarterly results will take place on August 7, 2025, at 11:00 a.m. Eastern Time, following the earnings release [2]. - Access to the webcast and conference call can be obtained through FNF's Investor Relations website or via telephone [5].

FNF Overview - FNF's total revenue for FY2022 was $116 billion[6] - FNF holds a 31% title market share[6] - FNF holds 1 or 2 market share in 44 states[7, 17] Title Segment Performance - FNF's adjusted pre-tax title margin in 1Q23 was 100%[28, 33, 63, 79, 90] - FNF's title revenue in 1Q23 was $91 billion[28] - FNF consistently holds top market share in residential purchase, refinance, and commercial markets[12] F&G Segment Performance - F&G's assets under management reached $45 billion in 1Q23, an 18% year-over-year increase[40, 41, 63, 65] - F&G's gross sales in 1Q23 grew by 27% year-over-year to $33 billion[40, 41, 63, 65] - F&G's adjusted net earnings for 2022 were $317 million[43] Financial Position - FNF's debt-to-capitalization ratio, excluding AOCI, was 285% as of March 31, 2023[60, 61] - FNF held over $800 million in holding company cash and short-term investments as of March 31, 2023[61, 65]

FNF Overview - FNF is an industry-leading insurance solutions company with a strong track record of technology innovation, market share growth, and shareholder value creation[9] - FNF's total revenue for FY2022 was $116 billion[9] - FNF holds the 1 market share in the title insurance industry and is 1 or 2 in 39 states[10, 19, 20] - FNF's title market share is 31%[9, 16] - FNF has approximately 23000 employees[9] Title Segment Performance - FNF consistently holds the top market share in residential purchase, refinance, and commercial markets[15] - FNF's adjusted pre-tax title margin in 1H23 was 132%[31, 36, 65] - FNF's scale provides data to evaluate trends and respond to fluctuations in opened and closed orders[27] - FNF's commercial revenue in 1H23 was $504 million[34] F&G Segment Performance - F&G's gross sales in 1H23 were $63 billion, an increase of 11% year-over-year[44, 45] - F&G's assets under management reached a record $463 billion[44, 45, 65] Financial Performance and Capital Allocation - FNF's adjusted net earnings per share for 1H23 was $157[52, 65] - FNF targets a debt-to-capitalization range of 20-30%[54, 61] - FNF's holding company cash and short-term investments were $885 million as of June 30, 2023[63, 67]

FNF Overview - FNF is the leading provider of title insurance and settlement services with $116 billion in total revenue for FY2022[9] - FNF holds the 1 market share in the title insurance industry and is 1 or 2 in 39 states[10, 20] - F&G is a Top 5 fixed indexed annuity writer in the industry[10] Title Segment Performance - FNF holds a 31% total title market share[9, 16] - FNF's direct title market share is 40% with $2 billion in revenue[18] - FNF's agent title market share is 26% with $5 billion in revenue[18] - FNF consistently delivers industry-leading adjusted pre-tax title margins[35] - The company targets a "normalized" adjusted pre-tax title margin of 15%-20%[27] F&G Segment Performance - F&G's Assets Under Management (AUM) reached a record $474 billion[44, 64] - F&G gross sales were $91 billion YTD 3Q23, a 7% increase year-over-year[44] Financial Performance - Total revenue for 3Q23 was $2778 billion[64] - Adjusted net earnings per share for 3Q23 were $123[64] - The company maintains a strong balance sheet with a 277% debt-to-capitalization ratio as of September 30, 2023[62]

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Unaudited Q1 2025 condensed consolidated financial statements show net earnings of **$83 million** and total assets of **$98.2 billion** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$98.2 billion** as of March 31, 2025, with liabilities at **$89.4 billion** and equity at **$8.8 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$98,209** | **$95,263** | | Total investments | $64,167 | $63,615 | | Cash and cash equivalents | $4,484 | $3,479 | | Goodwill | $5,271 | $5,271 | | **Total Liabilities** | **$89,412** | **$86,731** | | Contractholder funds | $57,823 | $56,404 | | Notes payable | $4,394 | $4,321 | | **Total Equity** | **$8,797** | **$8,532** | [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net earnings attributable to shareholders decreased to **$83 million** in Q1 2025, with total revenues falling to **$2.73 billion** Statement of Earnings Summary (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $2,729 | $3,299 | | Recognized gains and losses, net | $(287) | $275 | | Total expenses | $2,618 | $2,968 | | Net earnings attributable to FNF | $83 | $248 | | Net earnings per share, diluted | $0.30 | $0.91 | [Condensed Consolidated Statements of Comprehensive Earnings](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Earnings) Comprehensive earnings attributable to FNF shareholders decreased to **$269 million** in Q1 2025, boosted by **$186 million** in other comprehensive earnings Comprehensive Earnings Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net earnings | $83 | $269 | | Other comprehensive earnings | $186 | $90 | | Comprehensive earnings attributable to FNF | $269 | $338 | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased to **$8.80 billion** by Q1 2025, driven by earnings, offset by **$137 million** in dividends and **$25 million** in repurchases - Dividends declared for Q1 2025 were **$0.50 per common share**, totaling **$137 million**[18](index=18&type=chunk) - The company repurchased treasury stock for **$25 million** during the quarter[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$1.12 billion** in Q1 2025, resulting in a **$1.01 billion** net increase in cash and cash equivalents Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,115 | $1,591 | | Net cash used in investing activities | $(785) | $(1,096) | | Net cash provided by financing activities | $675 | $255 | | **Net increase in cash and cash equivalents** | **$1,005** | **$750** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial figures, covering business description, F&G offerings, claim reserves, investments, and debt obligations - FNF is a leading provider of title insurance and related services, mortgage transaction services, and annuity and life insurance products through its majority-owned subsidiary, F&G[22](index=22&type=chunk) - In Q1 2025, subsidiary F&G completed a public offering of **8 million shares** of its common stock, redeemed **$300 million** of its 5.50% Senior Notes, and issued **$375 million** of 7.30% Junior Subordinated Notes[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - The provision for title insurance claim losses was maintained at a rate of **4.5%** of title insurance premiums for both Q1 2025 and Q1 2024[48](index=48&type=chunk) - The company has significant unfunded commitments of **$3.7 billion** as of March 31, 2025, primarily related to its F&G segment for investments[165](index=165&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=66&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, business trends, and liquidity, noting lower Title segment earnings and an F&G segment loss, while maintaining strong liquidity [Business Trends and Conditions](index=66&type=section&id=Business%20Trends%20and%20Conditions) Business trends show MBA forecasting mortgage origination growth for the Title segment, while F&G benefits from an aging U.S. population and strong annuity sales MBA U.S. Mortgage Originations Forecast (in trillions) | Year | Purchase | Refinance | Total | | :--- | :--- | :--- | :--- | | 2024 (Actual) | $1.3 | $0.5 | $1.8 | | 2025 | $1.4 | $0.7 | $2.1 | | 2026 | $1.6 | $0.8 | $2.4 | | 2027 | $1.7 | $0.8 | $2.5 | - Average interest rates for a 30-year fixed-rate mortgage were **6.8%** for Q1 2025, slightly up from **6.7%** in Q1 2024[262](index=262&type=chunk) - The aging U.S. population, with over **10,000 people turning 65 daily**, is expected to drive demand for F&G's retirement products[273](index=273&type=chunk) [Results of Operations](index=69&type=section&id=Results%20of%20Operations) Consolidated net earnings fell to **$83 million** in Q1 2025, with Title segment earnings decreasing and F&G segment reporting a **$26 million** pre-tax loss Title Segment Operating Results (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,774 | $1,663 | | Total expenses | $1,603 | $1,445 | | **Earnings before income taxes** | **$171** | **$218** | F&G Segment Operating Results (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $908 | $1,569 | | Recognized gains and (losses), net | $(263) | $212 | | Total benefits and expenses | $934 | $1,427 | | **Earnings (loss) before income taxes** | **$(26)** | **$142** | - In the Title segment, direct closed orders increased by **8% YoY** to **201,000**, and the average fee per file rose to **$3,761** from **$3,555**[289](index=289&type=chunk)[291](index=291&type=chunk) [Liquidity and Capital Resources](index=87&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$4.5 billion** in cash, supported by **$1.1 billion** operating cash flow, and continued capital returns - As of March 31, 2025, the company had cash and cash equivalents of **$4.5 billion** and **$800 million** available under its Revolving Credit Facility[364](index=364&type=chunk) - A dividend of **$0.50 per share** was paid in Q1 2025, and another **$0.50 per share** dividend was declared in May 2025[363](index=363&type=chunk) - Under its 2024 Repurchase Program, the company repurchased **390,000 shares** for approximately **$25 million** in Q1 2025[376](index=376&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=89&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risks have occurred since the disclosures in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the market risks described in the Annual Report on Form 10-K for the year ended December 31, 2024[380](index=380&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that disclosure controls and procedures are effective[381](index=381&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[382](index=382&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=90&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the discussion of legal proceedings detailed in Note F to the financial statements - Details on legal proceedings are provided in Note F of the Condensed Consolidated Financial Statements[384](index=384&type=chunk) [Risk Factors](index=90&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[385](index=385&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) FNF repurchased **390,000 shares** for approximately **$25 million** in Q1 2025 under its 2024 Repurchase Program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 0 | $— | | Feb 2025 | 75,000 | $61.71 | | Mar 2025 | 315,000 | $63.83 | | **Total** | **390,000** | **$63.42** | - The repurchases were made under a three-year stock repurchase program approved on July 31, 2024, authorizing the purchase of up to **25 million shares** of FNF common stock[386](index=386&type=chunk) [Defaults Upon Senior Securities](index=91&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[389](index=389&type=chunk) [Mine Safety Disclosures](index=91&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[390](index=390&type=chunk) [Other Information](index=91&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[391](index=391&type=chunk) [Exhibits](index=92&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including F&G note indentures, SOX certifications, and interactive data files - Exhibits filed include indentures for F&G's 7.300% Junior Subordinated Notes, Sarbanes-Oxley Section 302 and 906 certifications, and Inline XBRL documents[393](index=393&type=chunk)

Financial Data and Key Metrics Changes - The company generated total revenue of $2.7 billion in the first quarter, with adjusted net earnings of $213 million or $0.78 per diluted share, compared to $206 million or $0.76 per share in the same quarter of the previous year [15][16] - Adjusted pretax title earnings were $211 million, reflecting an increase in the adjusted pretax title margin to 11.7%, up 100 basis points from 10.7% in the prior year quarter [5][17] - Net earnings for the first quarter were $83 million, including net recognized losses of $287 million, compared to net earnings of $248 million with $275 million of net recognized gains in the same quarter of the previous year [15][16] Business Line Data and Key Metrics Changes - The title segment generated $1.8 billion in total revenue, excluding net recognized losses of $25 million, compared to $1.6 billion in the first quarter of the previous year, with direct premiums increasing by 16% [16][17] - The F and G segment's assets under management (AUM) grew to $67.4 billion, up 16% year-over-year, driven by strong indexed annuity sales [12][19] - F and G's gross sales were $2.9 billion, down 17% compared to the previous year, primarily due to lower MYGA sales, while net sales retained were $2.2 billion [19][20] Market Data and Key Metrics Changes - Total orders opened averaged 5,600 per day in the first quarter, with a decline of 5% in April compared to March [10] - Daily refinance orders opened were 1,300 in the first quarter, up 33% year-over-year, while purchase orders opened were down 3% in April due to mortgage rate volatility [8][10] - Commercial revenue reached $293 million, up 23% year-over-year, marking the second-best commercial first quarter in history [9][19] Company Strategy and Development Direction - The company is focused on a dynamic capital allocation strategy, returning capital to shareholders through dividends and share repurchases while investing in technology and growth [6][11] - The management emphasized the importance of technology investments, including AI capabilities, to enhance operational efficiency and productivity [11] - The company aims to maintain an ownership stake in F and G above 80% to preserve options for potential future spin-offs [13][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate various economic scenarios, highlighting a proven track record of managing business trends [10][56] - The outlook for the remainder of 2025 remains cautiously optimistic, with expectations for modestly better purchase activity and continued strength in commercial orders [56][58] - Management noted that while there are uncertainties in the market, the company is well-positioned to drive strong margins due to its scale and operational efficiencies [56][58] Other Important Information - The company repurchased 390,000 shares at an average price of $63.42 per share during the first quarter, viewing repurchases as opportunistic [24] - The consolidated debt outstanding was $4.4 billion, with a debt to capitalization ratio in line with long-term targets [23] - The company ended the first quarter with $687 million in cash and short-term liquid investments at the holding company [25] Q&A Session Summary Question: Inquiry about April purchase orders and interest rates - Management noted that purchase orders were down 3% year-over-year in April, with little variation week to week [30] Question: Commercial open order activity in April - Total commercial orders were up 4% year-over-year in April, with national orders up 15% and local orders down 3% [32] Question: Expectations for quarterly investment income - The expected investment income was adjusted to $85-$90 million due to anticipated Fed funds rate cuts [33] Question: Buyback cadence for the remainder of the year - Management indicated a regular cadence of buybacks is expected, with potentially stronger numbers than in the first quarter [39] Question: Headwinds affecting F and G's lower spreads - Management discussed that spread pressures are expected to abate, with strong sales in April indicating positive trends [42] Question: Decision to invest in F and G's capital raise - The investment was driven by growth opportunities and the desire to maintain an ownership stake above 80% [48] Question: M&A activity expectations - Management anticipates more M&A activity in the title sector compared to the previous year, with opportunities available [49] Question: Regulatory changes impact on the title business - Management reported no significant regulatory impacts currently affecting the title business, with minor changes in state rates [66][70] Question: Updates on the InHERE platform - The InHERE platform has been fully rolled out, enhancing operational efficiency and expected to improve margins as transaction volumes increase [74][75]

Financial Data and Key Metrics Changes - The company generated total revenue of $2.7 billion in the first quarter, with adjusted net earnings of $213 million or $0.78 per diluted share, compared to $206 million or $0.76 per share in the prior year [14][15][17] - Adjusted pretax title earnings were $211 million, with an adjusted pretax title margin of 11.7%, an increase of 100 basis points from 10.7% in the prior year [5][17] - Net earnings were reported at $83 million, including net recognized losses of $287 million, compared to net earnings of $248 million with $275 million of net recognized gains in the prior year [14][15] Business Line Data and Key Metrics Changes - The title segment generated $1.8 billion in total revenue, up from $1.6 billion in the prior year, with direct premiums increasing by 16% and agency premiums by 15% [16][17] - The F and G segment's assets under management (AUM) grew to $67.4 billion, a 16% increase year-over-year, driven by strong indexed annuity sales [11][19] - F and G's gross sales were $2.9 billion, down 17% compared to the prior year, primarily due to lower MYGA sales, but net sales retained were $2.2 billion [19][20] Market Data and Key Metrics Changes - Total orders opened averaged 5,600 per day in the first quarter, with a slight decrease to 5,800 per day in April, down 5% from March [9] - Daily refinance orders opened were 1,300 in the first quarter, up 33% year-over-year, while purchase orders opened were down 3% in April due to mortgage rate volatility [6][7][9] - Commercial revenue reached $293 million, up 23% year-over-year, marking the second-best commercial first quarter in history [8][19] Company Strategy and Development Direction - The company is focused on a dynamic capital allocation strategy, returning capital to shareholders through dividends and share repurchases while investing in technology and growth [6][10] - The management emphasized the importance of technology investments, including AI capabilities, to enhance operational efficiency and productivity [10] - The company aims to maintain its ownership stake in F and G above 80% to preserve options for potential future spin-offs [12][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate various economic scenarios, highlighting a proven track record of managing business trends [9] - The outlook for the remainder of 2025 remains cautiously optimistic, with expectations for modestly better purchase activity and continued strength in commercial orders [56] - Management noted that while there are near-term headwinds affecting margins, the long-term growth potential for F and G remains strong [21][39] Other Important Information - The company repurchased 390,000 shares at an average price of $63.42 per share during the first quarter, viewing repurchases as opportunistic [23] - The consolidated debt outstanding was $4.4 billion, with a debt to capitalization ratio in line with long-term targets [22] - The InHERE digital transaction platform has been fully rolled out, enhancing customer experience and operational efficiency [72] Q&A Session Summary Question: Inquiry about April purchase orders and interest rates - Management noted that April purchase orders were down 3% year-over-year, with little variation week to week, but improved towards the end of the month [28] Question: Commercial open order activity in April - Total commercial orders were up 4% year-over-year, with national orders up 15% and local orders down 3% [29] Question: Expectations for quarterly investment income - The expected investment income was adjusted to $85-$90 million, driven by anticipated Fed funds rate cuts [30][31] Question: Buyback cadence for the remainder of the year - Management indicated a regular cadence for buybacks, with expectations for stronger activity than in the first quarter [36] Question: Headwinds affecting F and G's spreads - Management discussed pressures on spreads starting to abate, with strong sales in April and a focus on deploying cash at attractive rates [39] Question: Decision to invest in F and G's capital raise - The investment was driven by growth opportunities in F and G and the desire to maintain an ownership stake above 80% [46] Question: Opportunities in M&A activity - Management expects more M&A activity in the title sector compared to the previous year, with a focus on smaller transactions [48] Question: Regulatory changes impact on the title business - Management noted minimal impact from federal regulations and discussed a recent 10% rate reduction in Texas [64][68]

Core Viewpoint - FNF Group reported quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $1.13 per share, representing an earnings surprise of -30.97% [1][2] Financial Performance - The company posted revenues of $2.73 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 20.73%, compared to revenues of $3.3 billion a year ago [2] - Over the last four quarters, FNF Group has surpassed consensus EPS estimates just once [2] Stock Performance - FNF Group shares have increased approximately 14.5% since the beginning of the year, while the S&P 500 has declined by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $3.81 billion, and for the current fiscal year, it is $5.90 on revenues of $15.03 billion [7] Industry Outlook - The Insurance - Property and Casualty industry is currently in the top 15% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]