Core Insights - LoanCare has introduced two new enhancements, Paid in Full Monitoring and RateTrak, to its digital retention tools aimed at improving client retention and providing critical loan payoff intelligence [1][4]. Paid in Full Monitoring - This subscription service, part of LoanCare Analytics™, offers detailed insights into loans that have been paid in full, including reasons such as home sales or refinancing [2]. - The service tracks the movement of loans, identifying if they have refinanced away from the client, and categorizes retained loans by interest rate, month of payoff, and state [2]. - It provides valuable insights into competitive risks and opportunities, enhancing clients' retention strategies [5]. RateTrak - RateTrak is an interactive tool that allows homeowners to set desired interest rates or monthly payment goals, alerting them when rates decline [3]. - This feature encourages proactive engagement from clients with homeowners who are likely to consider refinancing [3]. Digital Retention Tools - Both enhancements are part of LoanCare's comprehensive suite of digital retention tools designed to help clients leverage data and analytics for better decision-making [4]. - The tools include private-labeled customer communications and self-service digital experiences through the Homeowner Portal and My LoanCare Go app [4]. Strategic Advantage - The new features are positioned as strategic advantages for clients, enabling them to optimize portfolio performance without competing for customer relationships [5].

Core Insights - Millions of Americans depend on Social Security benefits for retirement income, with up to 85% of these benefits potentially subject to federal income tax based on total household income [2][4] Taxation of Social Security Benefits - Taxation on Social Security benefits is determined by combined income, which includes Adjusted Gross Income (AGI), nontaxable interest, and half of Social Security benefits [4] - Single filers with combined income over $25,000 and married joint filers over $32,000 may face taxes on up to 85% of their benefits [4] Strategies for Managing Social Security Taxes - Social Security benefits are taxed at a lower rate compared to other income sources, making them a valuable income source for retirees [5] - Fidelity outlines two main strategies to manage taxes on Social Security benefits: 1. **Roth Conversion**: Converting savings into a Roth IRA allows for tax-free withdrawals without increasing combined income, thus not affecting Social Security tax [7] 2. **Delaying Social Security**: Waiting to claim benefits increases the amount received, reducing reliance on taxable IRA income for living expenses [7] Example Scenario - A hypothetical couple retiring at 65 plans to use a combination of Social Security and IRA withdrawals totaling $70,000 after taxes, factoring in the standard deduction of $27,700 and the 2023 income tax brackets [8]

Core Insights - Dividend stocks are highlighted as valuable assets for portfolio stability, especially in varying interest rate environments [3][29] - The article suggests focusing on stocks with strong yields and quality indicators for investment in the second half of 2025 [4] Group 1: Dividend Stock Recommendations - **Sanofi (SNY)**: - Stock price: $50.90, Dividend yield: 3.1%, Payout ratio: 18.5%, Three-year FCF growth: 5.5% [7][10] - Sanofi is a French bio-pharmaceutical company with a strong revenue growth driven by its best-selling drug, Dupixent, and a robust drug pipeline [9][10][11] - **Schlumberger Limited (SLB)**: - Stock price: $59.97, Dividend yield: 3.3%, Payout ratio: 50.9%, Three-year FCF growth: 19.7% [20] - SLB is a leading provider of technology and services to the energy industry, with a strong balance sheet and a partnership with Nvidia for AI development [15][16] - **Fidelity National Financial (FNF)**: - Stock price: $34.26, Dividend yield: 3.3%, Payout ratio: 38.6%, Three-year FCF growth: 40.8% [19] - FNF maintains a healthy balance sheet and strong margins despite a slow housing market, focusing on dividends and strategic investments [21] - **ZTO Express (Cayman) (ZTO)**: - Stock price: $18.99, Dividend yield: 3.2%, Payout ratio: 55.9%, Three-year FCF growth: 34.2% [30] - ZTO is a major express delivery service provider in China, leveraging the growing e-commerce market while investing in AI for cost efficiency [22][24] - **Interparfums (IPAR)**: - Stock price: $94.50, Dividend yield: 3.4%, Payout ratio: 62.8%, Three-year FCF growth: 395.4% [31] - Interparfums has shown consistent revenue growth and aims for further increases in net sales and EPS, indicating strong market potential [27][28] Group 2: Investment Criteria - Stocks should have a dividend yield between 3% and 5%, a debt-to-equity ratio of 1 or less, and a payout ratio below 70% to ensure sustainability [6] - Companies should demonstrate dividend growth over the last three years and positive free cash flow growth to support higher dividends [6]

Market Trends - The purchase market remained flat in July, with orders unchanged compared to the previous year, and a slight increase of approximately 0.5% in August, reflecting ongoing challenges related to housing affordability [1] - Refinancing activity showed improvement, with a month-over-month increase of 20% in July and a year-over-year increase of 10% in August, indicating potential for further activity if interest rates continue to decline [2] - The commercial sector appears to be strong, with positive trends noted, although specific figures were not provided [2]

Fidelity National Financial (NYSE:FNF) FY Conference Summary Company Overview - **Company**: Fidelity National Financial (FNF) - **Industry**: Mortgage Finance and Title Insurance Key Points Market Trends - **Purchase Orders**: Flat year-over-year in July, with a slight increase of 0.5% in August, indicating a stagnant purchase market due to housing affordability issues [3][4] - **Refinance Activity**: Increased by 20% month-over-month in July and 10% year-over-year in August, suggesting potential for more activity if interest rates continue to decline [3][4] - **Commercial Orders**: Strong performance with a 14% increase in July and 5% in August year-over-year, marking five consecutive quarters of double-digit growth [3][6][9] Home Price Appreciation (HPA) - **Correlation with Fees**: Approximately 60% correlation between changes in home prices and average fee profiles; a 5% increase in home prices typically results in a 3% increase in fees [10] - **Volume Preference**: Company prefers higher volume over higher fee profiles, indicating a strategic focus on volume growth even if it means lower fees [10] Fee Profile Trends - **Residential Fees**: Purchase fee profile up 3% year-over-year, while refinance fees remained flat; August showed a 2% decline in purchase fees compared to June [11][12] - **Commercial Fees**: Average fee profile around $15,000 for national and high $8,000 for local, with expectations for stability in the third quarter [12] Margin Insights - **Current Margin**: Flat year-over-year at 13.8%, with headwinds from healthcare costs estimated at $12 million impacting margins by about 60 basis points [13][14] - **Future Margin Guidance**: Confidence in achieving a margin of 15% to 20% despite ongoing healthcare-related costs [13][14] Recruitment and Staffing - **Recruitment Strategy**: Successful recruitment quarter with a focus on attracting talent from other organizations; viewed as a positive investment despite initial margin impact [20][22] - **Scalability**: Company has experience in scaling operations up and down based on market conditions, with a robust local presence across 1,300 locations [24][25] Long-term Investments - **Technology Investments**: Deployment of SoftPro and inHere digital transaction platform across the company, enhancing operational efficiency and customer engagement [27][29] - **AI Initiatives**: Early stages of AI integration with a focus on building employee literacy and evaluating use cases for productivity improvements [32][33] Regulatory Environment - **Title Pilot Concerns**: Ongoing discussions regarding the title pilot program, with no significant expansion expected; concerns about the waiver idea and its implications for title insurance [35][36] - **FinCEN Rule**: Proposed expansion of suspicious transaction reporting requirements, potentially increasing compliance costs significantly [39][40] - **Texas Rate Review**: Proposed 10% increase in title rates could impact revenue by approximately $70 million if implemented [46] Capital Allocation - **Priorities**: Focus on dividends, debt management, and opportunistic share buybacks; $160 million spent on buybacks in the second quarter [48][49] - **M&A Strategy**: Interest in agent acquisitions and related real estate businesses, with a cautious approach due to current market conditions [51][52] F&G Performance - **Contribution to Earnings**: F&G has generated about 30% of FNF's adjusted earnings, with significant growth in sales and assets under management [53][54] - **Future Strategy**: Potential for a tax-free spin-off available from June 2025, with various monetization options being considered [57][58] Additional Insights - **Cybersecurity Spending**: Increased investment in cybersecurity due to evolving risks in the environment, reflecting a broader industry trend [34] - **Regulatory Monitoring**: Active monitoring of state-level bills and potential impacts on the title industry, with a proactive advocacy approach [39]

Core Insights - Fidelity National Financial, Inc. (FNF) has partnered with CLEAR Secure, Inc. to implement biometric identity verification in real estate transactions, aiming to combat rising impersonation and wire fraud [1][2][5] Company Overview - FNF is a leading provider of title insurance and transaction services in the real estate and mortgage industries, and it is the largest title insurance company in the U.S. through its various subsidiaries [6][7] Industry Context - Real estate fraud has increased significantly, with criminals using sophisticated methods such as seller impersonation and fraudulent communications, leading to substantial financial losses [2] - The partnership with CLEAR is part of FNF's strategy to enhance security in real estate transactions, which includes education, execution, and enhancement phases [3][6] Technological Integration - The integration of CLEAR's identity platform, CLEAR1, into FNF's inHere digital platform aims to make biometric identity verification a standard practice in real estate closings, enhancing safety and transparency for all parties involved [4][5] Implementation Details - The first phase of the partnership was launched in July 2025 in select markets, with insights from this phase expected to guide a broader rollout [5]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Fidelity National Financial, Inc. and its subsidiaries, including balance sheets, earnings, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) The Condensed Consolidated Balance Sheets provide a snapshot of the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Assets | $102,331 | $95,263 | +$7,068 | | Total Liabilities | $93,512 | $86,731 | +$6,781 | | Total Equity | $8,819 | $8,532 | +$287 | | Investments | $68,022 | $63,615 | +$4,407 | | Reinsurance Recoverable | $15,781 | $13,380 | +$2,401 | | Contractholder Funds | $59,813 | $56,404 | +$3,409 | | Funds Withheld for Reinsurance Liabilities | $12,469 | $10,758 | +$1,711 | [Condensed Consolidated Statements of Earnings](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(unaudited)) The Condensed Consolidated Statements of Earnings show a decrease in net earnings for both the three and six months ended June 30, 2025, compared to the prior year | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $3,635 | $3,158 | +$477 | | Total Expenses | $3,253 | $2,700 | +$553 | | Net Earnings | $293 | $343 | -$50 | | Net Earnings per Share (Diluted) | $1.02 | $1.12 | -$0.10 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $6,364 | $6,457 | -$93 | | Total Expenses | $5,871 | $5,668 | +$203 | | Net Earnings | $376 | $612 | -$236 | | Net Earnings per Share (Diluted) | $1.32 | $2.04 | -$0.72 | [Condensed Consolidated Statements of Comprehensive Earnings](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Earnings%20(unaudited)) The Condensed Consolidated Statements of Comprehensive Earnings show an increase in comprehensive earnings attributable to common shareholders for both the three and six months ended June 30, 2025, primarily due to unrealized gains on investments and other financial instruments, offsetting the decrease in net earnings | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Net Earnings | $293 | $343 | -$50 | | Other Comprehensive Earnings (Loss) | $17 | -$58 | +$75 | | Comprehensive Earnings Attributable to FNF Common Shareholders | $295 | $248 | +$47 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Net Earnings | $376 | $612 | -$236 | | Other Comprehensive Earnings (Loss) | $203 | $32 | +$171 | | Comprehensive Earnings Attributable to FNF Common Shareholders | $564 | $586 | -$22 | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20(unaudited)) The Condensed Consolidated Statements of Equity detail changes in shareholders' equity for the three and six months ended June 30, 2025, and June 30, 2024, reflecting movements in retained earnings, paid-in capital, and treasury stock | Metric | June 30, 2025 (Millions) | June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total FNF Shareholders' Equity | $7,906 | $7,981 | -$75 | | Additional Paid-in Capital | $6,022 | $5,942 | +$80 | | Retained Earnings | $6,071 | $5,536 | +$535 | | Accumulated Other Comprehensive Loss | $(1,849) | $(2,087) | +$238 | | Treasury Stock (Cost) | $(2,338) | $(2,131) | -$207 | - Dividends declared for common shares were **$0.50 per share** for the three months ended June 30, 2025, compared to **$0.48 per share** for the same period in 2024. For the six months ended June 30, 2025, dividends were **$1.00 per share**, up from **$0.96 per share** in 2024[18](index=18&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) The Condensed Consolidated Statements of Cash Flows show a net decrease in cash and cash equivalents for the six months ended June 30, 2025, contrasting with a net increase in the prior year | Cash Flow Activity | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Net Cash Provided by Operating Activities | $3,011 | $2,954 | +$57 | | Net Cash Used in Investing Activities | $(4,268) | $(3,021) | -$1,247 | | Net Cash Provided by Financing Activities | $1,050 | $2,190 | -$1,140 | | Net (Decrease) Increase in Cash and Cash Equivalents | $(207) | $2,123 | -$2,330 | | Cash and Cash Equivalents at End of Period | $3,272 | $4,890 | -$1,618 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential context and detailed breakdowns for the unaudited condensed consolidated financial statements, covering accounting policies, recent developments, segment information, and financial instrument disclosures [Note A — Basis of Financial Statements](index=11&type=section&id=Note%20A%20%E2%80%94%20Basis%20of%20Financial%20Statements) Note A outlines the basis of preparation for the financial statements, confirming adherence to GAAP and Form 10-Q instructions, and describes business segments, recent corporate developments, and accounting policy updates - FNF is a leading provider of title insurance, escrow, and other title-related services, mortgage transaction services through ServiceLink, and annuity and life insurance products via its majority-owned subsidiary F&G Annuities & Life[24](index=24&type=chunk) - Recent developments include F&G's public offering of **8,000,000 shares** of common stock on March 24, 2025, redemption of **$300 million 5.50% Senior Notes** on February 1, 2025, and issuance of **$375 million 7.30% Junior Subordinated Notes** due 2065 on January 13, 2025[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | |:---|:---|:---|:---|:---| | Income Tax Expense | $98 | $116 | $127 | $179 | | Income Tax Expense as % of Earnings Before Taxes | 26% | 25% | 26% | 23% | - The company updated its significant accounting policies for Derivative Financial Instruments and Funds Withheld Arrangements, primarily due to executing certain derivative transactions and changes in how embedded derivatives in funds withheld arrangements are reported[35](index=35&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) [Note B — Summary of Reserve for Title Claim Losses](index=14&type=section&id=Note%20B%20%E2%80%94%20Summary%20of%20Reserve%20for%20Title%20Claim%20Losses) Note B summarizes the reserve for title claim losses, detailing changes in the reserve balance, provision for current year claims, and ongoing legal proceedings related to past claims | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | |:---|:---|:---|\n| Beginning Balance | $1,713 | $1,770 | | Total Title Claim Loss Provision | $120 | $107 | | Total Title Claims Paid, Net of Recoupments | $(131) | $(140) | | Ending Balance | $1,695 | $1,721 | | Provision for Title Insurance Claim Losses as % of Title Insurance Premiums | 4.5% | 4.5% | - The Ninth Circuit affirmed the district court's Settlement and Bar Orders on February 20, 2025, barring further claims against Chicago Title Company related to the Gina Champion-Cain alcoholic beverage license scheme. Appellants' petition for rehearing was denied, and petitions for writ of certiorari to the U.S. Supreme Court are pending[51](index=51&type=chunk)[52](index=52&type=chunk) - Management believes the recorded reserves for title claim losses are adequate to cover losses related to the Champion-Cain matter and other claims, despite the inherent uncertainty in estimating future payments[54](index=54&type=chunk)[56](index=56&type=chunk) [Note C — Fair Value of Financial Instruments](index=15&type=section&id=Note%20C%20%E2%80%94%20Fair%20Value%20of%20Financial%20Instruments) Note C details the company's fair value measurements for financial instruments, categorizing them into a three-level hierarchy and NAV based on input observability, and provides valuation methodologies and changes in Level 3 instruments - The company categorizes financial instruments into a **three-level fair value hierarchy** (Level 1, 2, 3) and Net Asset Value (NAV) based on the observability of inputs used in valuation techniques[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) | Category | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Total Financial Assets at Fair Value | $59,311 | $57,195 | | Total Financial Liabilities at Fair Value | $6,494 | $5,745 | - Valuation methodologies for various instruments, including fixed maturity securities, derivatives, and investments in unconsolidated affiliates, rely on market approaches, discounted cash flow models, and NAV as a practical expedient, incorporating both observable and unobservable inputs[67](index=67&type=chunk)[70](index=70&type=chunk)[73](index=73&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) | Level 3 Assets (Fair Value) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Fixed Maturity Securities | $12,991 | $11,734 | | Equity Securities | $15 | $10 | | Investment in Unconsolidated Affiliates | $272 | $272 | | Market Risk Benefits Asset | $213 | $189 | | Total Level 3 Assets | $13,272 | $11,734 | | Level 3 Liabilities (Fair Value) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Indexed Annuities/IUL Embedded Derivatives | $5,727 | $5,220 | | Market Risk Benefits Liability | $711 | $549 | | Total Level 3 Liabilities | $6,510 | $5,843 | [Note D — Investments](index=28&type=section&id=Note%20D%20%E2%80%94%20Investments) Note D provides a comprehensive overview of the company's investment portfolio, including fixed maturity securities, equity securities, and mortgage loans, detailing fair value, credit loss allowances, and interest and investment income | Investment Category | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Total Available-for-Sale Securities (Fair Value) | $52,047 | $48,218 | | Total Investments (Fair Value) | $68,022 | $63,615 | | Allowance for Expected Credit Losses (AFS Securities) | $103 | $67 | - The allowance for expected credit losses on AFS securities increased from **$67 million** to **$103 million**, reflecting the company's assessment of credit-related declines in fair value[117](index=117&type=chunk) | Mortgage Loan Type | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Commercial Mortgage Loans (Net) | $3,068 | $2,705 | | Residential Mortgage Loans (Net) | $3,872 | $3,221 | | Total Mortgage Loans (Net) | $6,940 | $5,926 | - As of June 30, 2025, the company had **$76 million** in mortgage loans (commercial and residential) that were over 90 days past due or in non-accrual status, down from **$94 million** at December 31, 2024[129](index=129&type=chunk)[130](index=130&type=chunk) | Income Source | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | |:---|:---|:---|:---|:---| | Gross Investment Income | $843 | $855 | $1,668 | $1,636 | | Investment Expense | $(66) | $(72) | $(131) | $(143) | | Interest and Investment Income | $777 | $783 | $1,537 | $1,493 | | Recognized Gains/Losses Component | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | |:---|:---|:---|:---|:---| | Net Realized/Unrealized Gains (Losses) on Derivatives and Embedded Derivatives | $83 | $(27) | $(141) | $141 | | Change in Allowance for Expected Credit Losses | $(21) | $(31) | $(44) | $(31) | | Total Recognized Gains and Losses, Net | $98 | $(88) | $(189) | $187 | | Unconsolidated VIEs | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Carrying Value | $30,761 | $26,807 | | Maximum Loss Exposure | $32,913 | $28,945 | [Note E — Derivative Financial Instruments](index=39&type=section&id=Note%20E%20%E2%80%94%20Derivative%20Financial%20Instruments) Note E details the company's use of derivative financial instruments for hedging market risks, including interest rate swaps, foreign currency swaps, equity options, and futures contracts, along with credit risk management and collateral agreements | Derivative Type | June 30, 2025 Notional (Millions) | June 30, 2025 Assets (Millions) | June 30, 2025 Liabilities (Millions) | |:---|:---|:---|:---| | Total Derivatives Designated as Hedging Instruments | $371 | $12 | $3 | | Total Derivatives Not Designated as Hedging Instruments | $38,493 | $961 | $5,714 | | Total Derivatives | $38,864 | $973 | $5,717 | - The company uses interest rate swaps and foreign currency swaps for fair value hedges and equity options/futures for economic hedges of product-related equity market risk, particularly for indexed annuities and IUL contracts[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Fair Value Collateral | $924 | $782 | | Collateral Held | $856 | $771 | | Net Credit Risk | $68 | $34 | - Credit risk on derivatives is managed by transacting with creditworthy counterparties, obtaining collateral, and establishing exposure limits. Collateral agreements require posting collateral when net exposures exceed pre-determined thresholds, with most thresholds set to zero[162](index=162&type=chunk)[163](index=163&type=chunk) [Note F — Commitments and Contingencies](index=44&type=section&id=Note%20F%20%E2%80%94%20Commitments%20and%20Contingencies) Note F outlines the company's legal and regulatory contingencies, including ongoing class action lawsuits and stockholder derivative lawsuits, and details unfunded investment commitments in the F&G segment - The company is a defendant in class action lawsuits related to the MOVEit file transfer software vulnerability and the LoanCare Data Security Breach. A class-wide settlement for the LoanCare case received preliminary approval on **March 24, 2025**[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - A stockholder derivative lawsuit alleging breach of fiduciary duties related to F&G's preferred stock investment and director compensation was dismissed with prejudice on **May 9, 2025**[171](index=171&type=chunk)[172](index=172&type=chunk)[174](index=174&type=chunk) | Commitment Type | June 30, 2025 (Millions) | |:---|:---| | Unconsolidated VIEs: Limited partnerships | $1,226 | | Direct Lending | $949 | | Fixed Maturity Securities, ABS | $355 | | Other Fixed Maturity Securities, AFS | $155 | | Commercial Mortgage Loans | $68 | | Residential Mortgage Loans | $273 | | Other Assets | $183 | | Total Unfunded Commitments | $3,483 | [Note G — Dividends](index=46&type=section&id=Note%20G%20%E2%80%94%20Dividends) Note G reports the declaration of a cash dividend of **$0.50 per share**, payable on September 30, 2025, to FNF common shareholders of record as of September 16, 2025 - On August 6, 2025, the Board of Directors declared a cash dividend of **$0.50 per share**, payable on September 30, 2025, to FNF common shareholders of record as of September 16, 2025[177](index=177&type=chunk) [Note H — Segment Information](index=47&type=section&id=Note%20H%20%E2%80%94%20Segment%20Information) Note H provides summarized financial information for the company's reportable segments: Title, F&G, and Corporate and Other, detailing revenues, significant expenses, net earnings, and asset allocation | Segment | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | |:---|:---|:---| | **Total Segment Revenues:** | | | | Title | $2,213 | $1,931 | | F&G | $1,364 | $1,172 | | Corporate and Other | $86 | $82 | | **Net Earnings (Loss) from Continuing Operations:** | | | | Title | $283 | $164 | | F&G | $42 | $204 | | Corporate and Other | $(4) | $2 | | Segment | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | |:---|:---|:---| | **Total Segment Revenues:** | | | | Title | $3,987 | $3,594 | | F&G | $2,272 | $2,741 | | Corporate and Other | $161 | $176 | | **Net Earnings (Loss) from Continuing Operations:** | | | | Title | $413 | $338 | | F&G | $21 | $320 | | Corporate and Other | $(2) | $8 | - The Title segment's net earnings increased significantly in both periods, while the F&G segment experienced a substantial decrease in net earnings, particularly for the six-month period[179](index=179&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) | Segment | June 30, 2025 Assets (Millions) | June 30, 2024 Assets (Millions) | |:---|:---|:---| | Title | $8,022 | $8,019 | | F&G | $91,819 | $78,493 | | Corporate and Other | $2,490 | $2,312 | | Total Assets | $102,331 | $88,824 | [Note I — Supplemental Cash Flow Information](index=51&type=section&id=Note%20I%20%E2%80%94%20Supplemental%20Cash%20Flow%20Information) Note I provides supplemental cash flow details, including cash payments for interest, income taxes, and deferred sales inducements, as well as non-cash investing and financing activities | Cash Paid For (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | |:---|:---|:---| | Interest | $113 | $96 | | Income Taxes | $155 | $66 | | Deferred Sales Inducements | $158 | $120 | | Non-Cash Activities (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | |:---|:---|:---| | Investments Transferred Subject to Reinsurance Agreement | $(500) | — | | Liabilities Assumed in Acquisitions | $2 | $190 | [Note J — Revenue Recognition](index=51&type=section&id=Note%20J%20%E2%80%94%20Revenue%20Recognition) Note J disaggregates the company's revenue by stream and segment, explaining recognition policies for various services, and provides details on contract balances, including trade receivables and unearned revenue liabilities | Revenue Stream (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | |:---|:---|:---| | Total Revenue from Insurance Contracts | $3,875 | $3,699 | | Total Revenue from Contracts with Customers | $1,002 | $925 | | Total Other Revenue | $1,370 | $1,706 | | Total Revenues | $6,364 | $6,457 | - Direct title insurance premiums and agency title insurance premiums are recognized at the time of closing the underlying transaction. Life insurance premiums are recognized when due from the policyholder[187](index=187&type=chunk)[191](index=191&type=chunk) | Contract Balance | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Trade Receivables | $378 | $362 | | Deferred Revenue (Contract Liabilities) | $94 | $92 | | Unearned Revenue Liabilities (URL) | $474 | $401 | - For the six months ended June 30, 2025, **$62 million** of revenue included in deferred revenue at the beginning of the period was recognized. URL for universal life products increased from **$401 million** to **$474 million**[198](index=198&type=chunk)[199](index=199&type=chunk) [Note K — Value of Business Acquired ("VOBA"), Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI")](index=53&type=section&id=Note%20K%20%E2%80%94%20Value%20of%20Business%20Acquired%20(%22VOBA%22)%2C%20Deferred%20Acquisition%20Costs%20(%22DAC%22)%20and%20Deferred%20Sales%20Inducements%20(%22DSI%22)) Note K details the components of 'Other intangible assets, net,' including VOBA, DAC, and DSI, providing roll-forward tables, amortization expenses, and assumption updates | Intangible Asset | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Value of Business Acquired (VOBA) | $1,272 | $1,349 | | Deferred Acquisition Costs (DAC) | $3,359 | $3,036 | | Deferred Sales Inducements (DSI) | $753 | $625 | | Total Other Intangible Assets, Net | $6,326 | $5,976 | | Amortization Expense (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | |:---|:---|:---| | VOBA Amortization | $77 | $95 | | DAC Amortization | $167 | $125 | | DSI Amortization | $30 | $16 | - F&G annually reviews cash flow assumptions for VOBA, DAC, and DSI. In **2025**, the option budget assumption was updated. In **2024**, several assumptions including surrender rates, GMWB election timing, premium persistency, mortality improvement, and option budgets were updated[207](index=207&type=chunk)[208](index=208&type=chunk) [Note L — F&G Reinsurance](index=55&type=section&id=Note%20L%20%E2%80%94%20F%26G%20Reinsurance) Note L details F&G's reinsurance activities, including effects on net premiums and benefits, changes to third-party reinsurance agreements, and composition of reinsurance recoverable, addressing credit losses and concentration risk | Reinsurance Effect (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | |:---|:---|:---| | Direct Net Premiums Earned | $805 | $977 | | Ceded Net Premiums Earned | $(43) | $(48) | | Net Premiums Earned | $762 | $929 | | Direct Net Benefits Incurred | $1,634 | $1,872 | | Ceded Net Benefits Incurred | $(117) | $(103) | | Net Benefits Incurred | $1,517 | $1,769 | - F&G amended its flow reinsurance agreement with Everlake effective **January 1, 2025**, to cede future MYGA business and an inforce block of MYGA policies. A strategic partnership with a new reinsurance vehicle backed by Blackstone managed funds was launched on **August 6, 2025**, for a forward flow reinsurance agreement on certain fixed indexed annuity products[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) | Principal Reinsurer | June 30, 2025 Recoverable (Millions) | December 31, 2024 Recoverable (Millions) | |:---|:---|:---| | Aspida Life Re Ltd. | $8,379 | $7,844 | | Somerset Reinsurance Ltd. | $4,028 | $2,822 | | Everlake | $1,844 | $1,168 | | Wilton Reassurance Company | $1,049 | $1,066 | | Total Reinsurance Recoverable, Gross | $15,795 | $13,389 | | Allowance for Expected Credit Losses | $(18) | $(20) | | Net Reinsurance Recoverable | $15,777 | $13,369 | - F&G has significant concentration of reinsurance risk with Aspida Re, Somerset, Everlake, and Wilton Re, mitigated by monitoring financial condition and collateral arrangements. No material change in expected credit loss reserve for reinsurance recoverables[219](index=219&type=chunk)[220](index=220&type=chunk) [Note M — F&G Insurance Subsidiary Financial Information and Regulatory Matters](index=57&type=section&id=Note%20M%20%E2%80%94%20F%26G%20Insurance%20Subsidiary%20Financial%20Information%20and%20Regulatory%20Matters) Note M provides statutory financial information for F&G's U.S. and non-U.S. insurance subsidiaries, highlighting differences between SAP and GAAP, and detailing statutory net income, capital and surplus, and accounting practices | U.S. Subsidiary (6 Months Ended June 30) | 2025 Statutory Net Income (Loss) (Millions) | 2024 Statutory Net Income (Loss) (Millions) | |:---|:---|:---| | FGL Insurance (IA) | $(203) | $77 | | FGL NY Insurance (NY) | $6 | $6 | | Raven Re (VT) | $20 | $28 | | Corbeau Re (VT) | $(98) | $(399) | | U.S. Subsidiary (Statutory Capital and Surplus) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | FGL Insurance (IA) | $1,313 | $1,654 | | FGL NY Insurance (NY) | $100 | $97 | | Raven Re (VT) | $163 | $168 | | Corbeau Re (VT) | $204 | $178 | - FGL Insurance applies Iowa-prescribed accounting practices for indexed annuities and IUL products, accounting for equity option derivatives at amortized cost and indexed annuity reserves based on Standard Valuation Law. Permitted practices for FGL Insurance, Raven Re, and Corbeau Re resulted in increases to statutory capital and surplus of **$252 million** and **$454 million** at June 30, 2025 and December 31, 2024, respectively[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) | Non-U.S. Subsidiary (6 Months Ended June 30) | 2025 Net Income (Loss) (Millions) | 2024 Net Income (Loss) (Millions) | |:---|:---|:---| | F&G Cayman Re (Cayman Islands) | $19 | $(16) | | F&G Life Re (Bermuda) | $49 | $79 | - F&G Cayman Re has permitted practices approved by CIMA to include LOCs as an admitted asset and use best estimate reserve calculations for PRT reinsurance transactions. Without these, statutory surplus would be negative[228](index=228&type=chunk) [Note N — Notes Payable](index=60&type=section&id=Note%20N%20%E2%80%94%20Notes%20Payable) Note N details the company's notes payable, including various senior and junior notes issued by FNF and F&G, their interest rates, maturity dates, and redemption terms, covering revolving credit facilities and recent debt activities | Note Type | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | 4.50% Notes, net of discount | $447 | $447 | | 3.40% Notes, net of discount | $646 | $646 | | 2.45% Notes, net of discount | $596 | $595 | | 3.20% Notes, net of discount | $444 | $444 | | 6.50% F&G Notes, net of discount | $545 | $545 | | 7.40% F&G Notes, net of discount | $497 | $497 | | 5.50% F&G Notes, net of discount | — | $301 | | 7.95% F&G Notes, net of discount | $336 | $336 | | 6.25% F&G Notes, net of discount | $493 | $492 | | 7.30% F&G Notes, net of discount | $364 | — | | Total Notes Payable | $4,397 | $4,321 | - On **January 13, 2025**, F&G completed a public offering of **$375 million** aggregate principal amount of its **7.30% Junior Subordinated Notes** due 2065. On **February 1, 2025**, F&G redeemed the outstanding **$300 million** aggregate principal amount of its **5.50% Senior Notes** due May 1, 2025[233](index=233&type=chunk)[246](index=246&type=chunk) - The company has an Amended Revolving Credit Facility of **$800 million** with **$800 million** available borrowing capacity as of June 30, 2025, and F&G has a **$750 million** F&G Credit Facility with **$750 million** remaining borrowing availability[240](index=240&type=chunk)[242](index=242&type=chunk) | Gross Principal Maturities of Notes Payable | Amount (Millions) | |:---|:---| | 2025 (remaining) | $— | | 2026 | $32 | | 2027 | $— | | 2028 | $950 | | 2029 | $550 | | Thereafter | $2,920 | | Total | $4,452 | [Note O — Market Risk Benefits](index=63&type=section&id=Note%20O%20%E2%80%94%20Market%20Risk%20Benefits) Note O presents the balances and changes in Market Risk Benefits (MRBs) associated with indexed and fixed rate annuities, reconciling MRBs in asset and liability positions and discussing primary drivers of changes | Metric (Indexed Annuities) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Balance, Beginning of Period, Net Liability | $420 | $314 | | Balance, End of Period, Net Liability | $608 | $420 | | Net Amount at Risk | $1,608 | $1,327 | | MRB Position | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Total MRB Asset | $213 | $189 | | Total MRB Liability | $711 | $549 | - The net MRB liability increased for the six months ended June 30, 2025, due to attributed fees, interest accrual, and MRB reserves for new contracts. Changes in risk-free rates had a favorable impact, while decreases in equity market projections led to an unfavorable change in MRBs[250](index=250&type=chunk)[251](index=251&type=chunk) - Annual reviews of cash flow assumptions for MRBs, typically in the third quarter, led to updates in **2024** for surrender rates, rider benefit election utilization, mortality improvement, and option budgets, increasing the net MRB liability[254](index=254&type=chunk) [Note P — Contractholder Funds](index=64&type=section&id=Note%20P%20%E2%80%94%20Contractholder%20Funds) Note P summarizes the balances and changes in contractholder funds' account balances for various products, including indexed annuities, fixed rate annuities, universal life, FABN, and FHLB, detailing issuances, withdrawals, and interest credited | Product (June 30, 2025) | Balance, End of Period (Millions) | Net Liability, After Reinsurance (Millions) | |:---|:---|:---| | Indexed Annuities | $31,622 | $30,168 | | Fixed Rate Annuities | $19,270 | $6,660 | | Universal Life | $3,044 | $2,254 | | FABN | $2,822 | $2,835 | | FHLB | $2,449 | $2,449 | | Total Gross Liability | $59,813 | $59,813 | | Product (December 31, 2024) | Balance, End of Period (Millions) | Net Liability, After Reinsurance (Millions) | |:---|:---|:---| | Indexed Annuities | $30,235 | $29,593 | | Fixed Rate Annuities | $17,442 | $6,433 | | Universal Life | $2,817 | $2,019 | | FABN | $2,463 | $2,463 | | FHLB | $2,852 | $2,852 | | Total Gross Liability | $56,404 | $56,404 | - For the six months ended June 30, 2025, updates to the option budget assumption decreased Contractholder funds by approximately **$26 million**. For the year ended December 31, 2024, updates to surrender assumptions and indexed annuities assumptions decreased Contractholder funds by approximately **$89 million**[262](index=262&type=chunk)[263](index=263&type=chunk) | Product (June 30, 2025) | Weighted-Average Crediting Rate | |:---|:---| | Indexed Annuities | 2.30% | | Fixed Rate Annuities | 4.57% | | Universal Life | 5.94% | [Note Q — Future Policy Benefits](index=67&type=section&id=Note%20Q%20%E2%80%94%20Future%20Policy%20Benefits) Note Q details the balances and changes in Future Policy Benefits (FPB) for traditional life, immediate annuities, and Pension Risk Transfer (PRT) contracts, providing information on expected net premiums, DPL, and key assumption inputs | Product (Net Liability) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Traditional Life | $1,303 | $1,302 | | Immediate Annuities | $1,289 | $1,297 | | PRT | $6,772 | $6,054 | | Immediate Annuities DPL | $92 | $90 | | PRT DPL | $7 | $6 | | Total FPB | $9,463 | $8,749 | - For traditional life, immediate annuities, and PRT, market data updates in **2025** resulted in decreased discount rates, driving an increase to the FPB. In **2024**, increased discount rates led to a decrease in FPB[272](index=272&type=chunk)[273](index=273&type=chunk)[275](index=275&type=chunk) | Product (6 Months Ended June 30) | 2025 Gross Premiums (Millions) | 2024 Gross Premiums (Millions) | |:---|:---|:---| | Traditional Life | $50 | $57 | | Immediate Annuities | $12 | $12 | | PRT | $743 | $908 | | Total | $805 | $977 | - F&G conducts annual premium deficiency testing for long-duration contracts and VOBA. In **2024**, the traditional life block of business failed premium deficiency testing for VOBA recoverability, leading to an increased amortization liability[276](index=276&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=72&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, covering business overview, key trends, critical accounting policies, detailed financial analysis, and liquidity and capital resources [Overview](index=72&type=section&id=Overview) The overview section briefly describes the company's business and recent developments, including the redomestication from Delaware to Nevada on June 11, 2025, which did not alter its core operations - On **June 11, 2025**, the company redomesticated from Delaware to Nevada. This change did not impact the business, physical location, management, assets, liabilities, or net worth of the company[280](index=280&type=chunk) [Business Trends and Conditions](index=72&type=section&id=Business%20Trends%20and%20Conditions) This section discusses key external factors and market conditions influencing the Title and F&G segments, including real estate activity, interest rates, market volatility, and demographic trends [Title Segment](index=72&type=section&id=Title%20Segment) The Title segment's revenue is closely tied to real estate activity, with the MBA forecasting increased U.S. mortgage originations for 2025-2027, and median existing-home prices reaching a record **$435,300** | U.S. Residential Mortgage Originations Forecast (Trillions) | 2027 | 2026 | 2025 | 2024 | |:---|:---|:---|:---|:---| | Purchase Originations | $1.5 | $1.4 | $1.3 | $1.3 | | Refinance Originations | $0.8 | $0.8 | $0.7 | $0.5 | | Total U.S. Mortgage Originations | $2.3 | $2.2 | $2.0 | $1.8 | - Average interest rates for a 30-year fixed rate mortgage were **6.8%** for the three and six months ended June 30, 2025, compared to **7.0%** and **6.9%** for the corresponding periods in 2024[284](index=284&type=chunk) - Median existing-home sales prices increased to a record **$435,300**, approximately **2%** higher than the corresponding period in 2024, while existing-home sales remained unchanged[285](index=285&type=chunk) - Commercial volumes and commercial fee-per-file increased in the three and six months ended June 30, 2025, compared to the corresponding periods in 2024[287](index=287&type=chunk) [F&G Segment](index=73&type=section&id=F%26G%20Segment) The F&G segment is influenced by market conditions, interest rates, and the aging U.S. population, with significant growth observed in the fixed index annuity and IUL markets - As of June 30, 2025, F&G's reserves, net of reinsurance, were **$6.7 billion**, with a weighted average crediting rate on fixed rate annuities of **4.57%**[293](index=293&type=chunk) - The fixed index annuity market grew to **$130 billion** in sales in 2024, and the registered index-linked annuities (RILA) market reached **$62 billion** in sales in 2024. The IUL market expanded to **$2 billion** in annual sales in 2024[296](index=296&type=chunk) [Critical Accounting Policies and Estimates](index=74&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There were no changes to the company's critical accounting policies during the six months ended June 30, 2025, with management continuing to make estimates and assumptions affecting reported financial amounts - There were no changes to the company's critical accounting policies during the six months ended June 30, 2025[298](index=298&type=chunk) [Results of Operations](index=75&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, covering consolidated results and segment-specific performance for Title, F&G, and Corporate and Other, highlighting changes in revenues, expenses, and net earnings [Consolidated Results of Operations](index=75&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated net earnings decreased for both the three and six months ended June 30, 2025, compared to the prior year, driven by increased total expenses, particularly benefits and policy reserve changes | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $3,635 | $3,158 | +$477 | | Total Expenses | $3,253 | $2,700 | +$553 | | Net Earnings | $293 | $343 | -$50 | | Income Tax Expense | $98 | $116 | -$18 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $6,364 | $6,457 | -$93 | | Total Expenses | $5,871 | $5,668 | +$203 | | Net Earnings | $376 | $612 | -$236 | | Income Tax Expense | $127 | $179 | -$52 | - The increase in income tax expense as a percentage of earnings before taxes for the six months ended June 30, 2025 (**26%**) compared to 2024 (**23%**) is primarily due to an increase in the valuation allowance[307](index=307&type=chunk) [Title Segment Results](index=76&type=section&id=Title%20Segment%20Results) The Title segment experienced revenue growth in both the three and six months ended June 30, 2025, driven by increases in direct and agency title premiums, higher average fee per file, and increased closed order volumes | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $2,213 | $1,931 | +$282 | | Total Expenses | $1,846 | $1,696 | +$150 | | Earnings Before Income Taxes | $367 | $235 | +$132 | | Total Title Premiums | $1,471 | $1,348 | +$123 | | Closed Orders (Thousands) | 246 | 229 | +17 | | Average Fee per File | $3,894 | $3,759 | +$135 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $3,987 | $3,594 | +$393 | | Total Expenses | $3,449 | $3,141 | +$308 | | Earnings Before Income Taxes | $538 | $453 | +$85 | | Total Title Premiums | $2,662 | $2,381 | +$281 | | Closed Orders (Thousands) | 447 | 415 | +32 | | Average Fee per File | $3,834 | $3,668 | +$166 | - Personnel costs increased by **10%** for the three months and **9%** for the six months ended June 30, 2025, primarily due to elevated health claims, inflationary salary increases, and increased variable costs from higher revenues[322](index=322&type=chunk) - The provision for title claim losses remained consistent at an average rate of **4.5%** of title premiums for all periods[324](index=324&type=chunk) [F&G Segment Results](index=79&type=section&id=F%26G%20Segment%20Results) The F&G segment experienced a decrease in earnings before income taxes for both the three and six months ended June 30, 2025, primarily due to higher benefits and other changes in policy reserves and market risk benefit losses | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $1,364 | $1,172 | +$192 | | Total Benefits and Expenses | $1,307 | $918 | +$389 | | Earnings Before Income Taxes | $57 | $254 | -$197 | | Life Insurance Premiums and Other Fees | $608 | $487 | +$121 | | Interest and Investment Income | $682 | $684 | -$2 | | Recognized Gains and (Losses), Net | $51 | $(17) | +$68 | | Benefits and Other Changes in Policy Reserves | $993 | $608 | +$385 | | Market Risk Benefit (Gains) Losses | $(4) | $20 | -$24 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $2,272 | $2,741 | -$469 | | Total Benefits and Expenses | $2,241 | $2,345 | -$104 | | Earnings Before Income Taxes | $31 | $396 | -$365 | | Life Insurance Premiums and Other Fees | $1,097 | $1,205 | -$108 | | Interest and Investment Income | $1,348 | $1,300 | +$48 | | Recognized Gains and (Losses), Net | $(212) | $195 | -$407 | | Benefits and Other Changes in Policy Reserves | $1,517 | $1,769 | -$252 | | Market Risk Benefit (Gains) Losses | $105 | $9 | +$96 | - The decrease in earnings for the six-month period was significantly impacted by a **$407 million** negative swing in Recognized gains and (losses), net, and a **$96 million** increase in Market risk benefit losses[332](index=332&type=chunk) | Investment Portfolio (Fair Value) | June 30, 2025 (Millions) | December 31, 2024 (Millions) | |:---|:---|:---| | Total Fixed Maturity Available for Sale Securities | $50,193 | $46,317 | | Limited Partnerships | $4,027 | $3,288 | | Commercial Mortgage Loans | $2,827 | $2,404 | | Residential Mortgage Loans | $3,632 | $2,916 | | Total Investments | $64,108 | $59,503 | | Credit Quality (Fair Value) | June 30, 2025 (Millions) | June 30, 2025 Percent | December 31, 2024 (Millions) | December 31, 2024 Percent | |:---|:---|:---|:---|:---| | AAA/AA/A (NAIC 1) | $32,035 | 64% | $29,174 | 63% | | BBB (NAIC 2) | $15,998 | 32% | $15,082 | 33% | | Total | $50,193 | 100% | $46,317 | 100% | - The gross unrealized loss position on the fixed maturity available-for-sale and equity portfolio was **$3,465 million** as of June 30, 2025, primarily due to higher treasury rates[377](index=377&type=chunk) [Corporate and Other Segment Results](index=93&type=section&id=Corporate%20and%20Other%20Segment%20Results) The Corporate and Other segment reported a loss from continuing operations for both the three and six months ended June 30, 2025, primarily influenced by valuations of deferred compensation plan assets and intercompany dividends | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $86 | $82 | +$4 | | Total Expenses | $100 | $86 | +$14 | | Loss from Continuing Operations Before Income Taxes | $(14) | $(4) | -$10 | | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | |:---|:---|:---|:---| | Total Revenues | $161 | $176 | -$15 | | Total Expenses | $181 | $182 | -$1 | | Loss from Continuing Operations Before Income Taxes | $(20) | $(6) | -$14 | - The increase in three-month revenues was primarily due to a **$7 million** increase in valuations associated with deferred compensation plan assets. The six-month revenue decrease was due to an **$11 million** decrease in these valuations[391](index=391&type=chunk) - Personnel costs increased by **$11 million** for the three months ended June 30, 2025, largely due to the increased valuations of deferred compensation plan assets, which affect both revenue and personnel costs[392](index=392&type=chunk) [Liquidity and Capital Resources](index=93&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash requirements, sources of liquidity, and cash flow activities from operations, investing, and financing, highlighting dividend payments, debt management, and stock repurchases - As of June 30, 2025, the company had **$3,272 million** in cash and cash equivalents, **$1,451 million** in short-term investments, and **$800 million** available under its Revolving Credit Facility, plus **$750 million** under the Amended F&G Credit agreement[395](index=395&type=chunk) - The company paid cash dividends of **$0.50 per share**, totaling approximately **$135 million**, in the second quarter of 2025. The Board declared another **$0.50 per share** dividend payable on September 30, 2025[177](index=177&type=chunk)[394](index=394&type=chunk) - Cash provided by operating activities increased by **$57 million** to **$3,011 million** for the six months ended June 30, 2025, primarily due to increased net cash inflows from net earnings and reduced outflows from changes in other assets and liabilities[402](index=402&type=chunk) - Cash used in investing activities increased by **$1,247 million** to **$4,268 million** for the six months ended June 30, 2025, mainly due to increased purchases of investment securities and additional investments in unconsolidated affiliates[403](index=403&type=chunk) - Cash provided by financing activities decreased by **$1,140 million** to **$1,050 million** for the six months ended June 30, 2025, driven by increased contractholder withdrawals, reduced contractholder deposits, and increased treasury stock purchases[405](index=405&type=chunk) - The company repurchased **3,270,000 shares** of FNF common stock for approximately **$184 million** under the 2024 Repurchase Program during the six months ended June 30, 2025[407](index=407&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes in the market risks described in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in market risks have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[411](index=411&type=chunk) [Item 4. Controls and Procedures](index=95&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the period - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of **June 30, 2025**[412](index=412&type=chunk) - No changes in internal control over financial reporting occurred during the three and six months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[413](index=413&type=chunk) [PART II. OTHER INFORMATION](index=96&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=96&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the discussion of legal proceedings from Note F Commitments and Contingencies in Part I, Item 1 of this report - Legal proceedings are discussed in Note F Commitments and Contingencies to the unaudited Condensed Consolidated Financial Statements[415](index=415&type=chunk) [Item 1A. Risk Factors](index=96&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risk factors, including the highly regulated nature of the F&G segment, potential changes in state and NAIC regulations, and the evolving landscape of ERISA and DOL's 'fiduciary rule' - The F&G segment is highly regulated by state insurance departments, the NAIC, and federal regulators, with potential for new laws, interpretations, or disciplinary actions to materially affect the business[417](index=417&type=chunk)[419](index=419&type=chunk)[421](index=421&type=chunk) - The DOL's New Fiduciary Rule, which significantly broadens the definition of 'fiduciary' under ERISA, was stayed by district courts, and appeals are in abeyance. The final outcome could materially affect agent business practices, compensation, and liability exposure[425](index=425&type=chunk)[426](index=426&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk) - F&G's reinsurance subsidiaries in Bermuda and the Cayman Islands are subject to local regulations (BMA and CIMA), which may limit activities or impose additional requirements[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section summarizes the company's repurchases of equity securities during the three months ended June 30, 2025, under its publicly announced stock repurchase program | Period | Total Number of Shares Purchased | Average Price Paid per Share | |:---|:---|:---| | 4/1/2025 - 4/30/2025 | 60,000 | $64.31 | | 5/1/2025 - 5/31/2025 | 820,000 | $54.64 | | 6/1/2025 - 06/30/2025 | 2,000,000 | $55.15 | | Total (3 Months Ended June 30, 2025) | 2,880,000 | $55.20 | - As of June 30, 2025, **21,730,000 shares** remained available for purchase under the 2024 Repurchase Program, which authorizes the purchase of up to **25 million shares** through July 31, 2027[435](index=435&type=chunk)[436](index=436&type=chunk) [Item 3. Defaults Upon Senior Securities](index=99&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[437](index=437&type=chunk) [Item 4. Mine Safety Disclosures](index=99&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company - Not applicable[438](index=438&type=chunk) [Item 5. Other Information](index=99&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three and six months ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three and six months ended June 30, 2025[439](index=439&type=chunk) [Item 6. Exhibits](index=100&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, indentures, and certifications required by the Sarbanes-Oxley Act - Exhibits include the Plan of Conversion, Articles of Incorporation, Bylaws, Ninth Supplemental Indenture, and certifications from the Chief Executive Officer and Chief Financial Officer[440](index=440&type=chunk) [Signatures](index=101&type=section&id=Signatures) This section contains the required signatures, certifying the due authorization and filing of the report on behalf of Fidelity National Financial, Inc - The report is signed by Anthony J. Park, Chief Financial Officer (Principal Financial and Accounting Officer), on **August 7, 2025**[443](index=443&type=chunk)

Financial Data and Key Metrics Changes - The company generated total revenue of $3.6 billion in the second quarter, with adjusted net earnings of $318 million or $1.16 per diluted share, compared to $338 million or $1.24 per share for the same period in 2024 [13][14] - Adjusted pretax title earnings were $337 million, a 4% increase from the previous year, with an adjusted pretax title margin of 15.5%, down from 16.2% in the prior year [5][15] - The F and G segment reported a 13% increase in assets under management to $69.2 billion [11] Business Line Data and Key Metrics Changes - The title segment generated $2.2 billion in total revenue, with direct premiums increasing by 12% year-over-year [14][15] - Daily purchase orders opened increased by 5% compared to 2024, while refinance orders saw a significant 28% increase [6][8] - Commercial revenue reached $626 million in the first half of the year, up 23% from the previous year, with national daily orders opened up 11% [8][9] Market Data and Key Metrics Changes - Total orders opened averaged 5,800 per day in the second quarter, with July showing a 5% increase compared to the prior year [10] - The company experienced a strong performance in commercial refinance orders, with a 35% increase in July compared to the previous year [51] Company Strategy and Development Direction - The company continues to invest in security, technology, and recruiting to position itself for long-term growth, despite higher expenses impacting margins [6][17] - The F and G segment is pursuing a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in transaction volumes and the potential for improved profitability as market conditions normalize [10][46] - The company anticipates that elevated health claims will moderate but remain above last year's levels, with normalization expected in 2026 [45][48] Other Important Information - The company repurchased 2.9 million shares for $159 million during the second quarter, returning nearly $300 million of capital to shareholders [22][23] - The consolidated debt to capitalization ratio remains within the long-term target range of 20% to 30% [22] Q&A Session Summary Question: Thoughts on holding separate businesses under the same company - Management is pleased with F and G's performance, contributing 32% of adjusted earnings, and is excited about the new reinsurance strategy [28][29] Question: Details on personnel expenses - Personnel expenses increased due to active recruiting and elevated health claims, with a significant impact from medical claims [30][33] Question: Margin and expense outlook - Management expects health claims to peak this quarter and then subside, maintaining confidence in achieving a 15% to 20% margin for the year [45] Question: Commercial market momentum - National commercial open orders were up 22% year-over-year, with a strong pipeline expected for the second half of the year [49][50] Question: Buyback strategy - The company plans to remain active in the market for share buybacks, especially if share prices weaken [56][60] Question: Regulatory updates - No significant changes in regulatory momentum impacting the title industry were noted, with ongoing engagement with the FHFA [76] Question: Recruiting strategy - The company is focused on hiring revenue-attached personnel, akin to mini acquisitions, to enhance growth [78]

Financial Data and Key Metrics Changes - The company generated total revenue of $3.6 billion in Q2 2025, compared to $3.2 billion in Q2 2024, excluding net recognized gains and losses [12] - Adjusted net earnings were $318 million or $1.16 per diluted share, down from $338 million or $1.24 per share in Q2 2024 [13] - The title segment contributed $260 million to adjusted net earnings, while the F and G segment contributed $89 million [13] Business Line Data and Key Metrics Changes - The title segment generated $2.2 billion in total revenue in Q2 2025, up from $2 billion in Q2 2024, with direct premiums increasing by 12% [14] - Adjusted pretax title earnings were $337 million, a $13 million or 4% increase from the previous year, with a title margin of 15.5% [5][14] - The F and G segment's assets under management grew to $69.2 billion, a 13% increase year-over-year [10] Market Data and Key Metrics Changes - Daily purchase orders opened increased by 5% compared to Q2 2024, while refinance orders saw a significant 28% increase [6][7] - Commercial volumes showed strong performance with direct commercial revenue of $626 million in the first half of 2025, up 23% from $511 million in the same period of 2024 [8] Company Strategy and Development Direction - The company is focused on long-term growth through strategic investments in security, technology, and recruiting [5] - F and G is pursuing a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in transaction volumes and the potential for efficiencies across operations [9] - The company anticipates that elevated health claims will normalize in 2026, and they remain confident in maintaining a 15% to 20% pretax title margin [15][45] Other Important Information - The company repurchased 2.9 million shares for $159 million at an average price of $55.2 per share during Q2 2025 [20] - The company returned nearly $300 million of capital to shareholders through dividends and share repurchases in the second quarter [21] Q&A Session Summary Question: Thoughts on holding separate businesses under the same company - Management is pleased with F and G's performance and sees continued value in the current structure, contributing 32% of adjusted earnings [27][28] Question: Details on personnel expenses - Personnel expenses increased due to active recruiting and elevated health claims, with a significant impact from medical claims [29][32] Question: Margin and expense outlook - Management expects health claims to peak this quarter and then moderate, maintaining confidence in the 15% to 20% margin range [44][45] Question: Commercial order momentum - National open orders were up 22% year-over-year, with strong expectations for continued growth in the back half of the year [49][50] Question: Buyback strategy - The company plans to remain active in share buybacks, particularly if share prices show weakness [55][60] Question: Dividend capacity for the second half - Approximately $250 million is available from regulated entities, with an additional $60 million from F and G [67]

Core Insights - Fidelity National Financial (FNF) reported quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.4 per share, and down from $1.24 per share a year ago [1] - The company posted revenues of $3.64 billion for the quarter, exceeding the Zacks Consensus Estimate by 3.08% and up from $3.16 billion year-over-year [3] - The stock has underperformed the market, gaining about 3.5% year-to-date compared to the S&P 500's 7.1% increase [4] Earnings Performance - The earnings surprise for the quarter was -17.14%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2] - The previous quarter's earnings were $0.78 per share, which was a surprise of -30.97% against an expected $1.13 [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.51 on revenues of $3.63 billion, and for the current fiscal year, it is $5.15 on revenues of $13.67 billion [8] - The estimate revisions trend for FNF was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Insurance - Multi line industry, to which FNF belongs, is currently in the top 39% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]