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Fidelity National Financial(FNF) - 2025 Q1 - Quarterly Results

FNF Q1 2025 Financial Performance Overview FNF's Q1 2025 adjusted net earnings increased to $213 million, driven by the Title segment, despite a GAAP net earnings decrease due to mark-to-market effects Financial Highlights FNF's Q1 2025 adjusted net earnings increased to $213 million, driven by the Title segment, despite a GAAP net earnings decrease due to mark-to-market effects Q1 2025 vs Q1 2024 Key Earnings Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Earnings (GAAP) | $83 million | $248 million | | Diluted EPS (GAAP) | $0.30 | $0.91 | | Adjusted Net Earnings (Non-GAAP) | $213 million | $206 million | | Adjusted Diluted EPS (Non-GAAP) | $0.78 | $0.76 | Q1 2025 Adjusted Net Earnings Contribution by Segment | Segment | Contribution | | :--- | :--- | | Title Segment | $158 million | | F&G Segment | $80 million | | Corporate Segment (pre-elimination) | $3 million | Management Commentary The Chairman highlighted the company's strong performance, emphasizing the industry-leading margins from the Title segment and the growth in assets under management at F&G - The Title business successfully navigated the housing market downturn, delivering impressive profitability and cash flows poised for expansion as interest rates normalize8 - FNF participated in F&G's March capital raise with a $150 million investment to support F&G's growth opportunities and maintain FNF's ownership stake above 80%8 Capital Allocation and Shareholder Returns In Q1 2025, FNF restarted its share repurchase program and continued its dividend payments, returning significant capital to shareholders - Relaunched the share repurchase program, buying back 390,000 shares for $25 million at an average price of $63.42 per share7 - Paid common dividends of $0.50 per share, totaling $136 million7 - Ended the quarter with $687 million in cash and short-term liquid investments at the holding company7 Segment Performance This section details the financial and operational performance of FNF's Title and F&G segments Title Segment The Title segment delivered a strong quarter with an adjusted pre-tax title margin of 11.7%, a 100 basis point improvement over the prior year Financial Performance Title Segment Q1 Financials | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1.8 billion | $1.7 billion | +5.9% | | Total Revenue (excl. gains/losses) | $1.8 billion | $1.6 billion | +12% | | Adjusted Pre-tax Earnings | $211 million | $171 million | +23.4% | | Adjusted Pre-tax Title Margin | 11.7% | 10.7% | +100 bps | - Commercial revenue increased 23% YoY to $293 million14 Operational Metrics - Daily purchase orders opened increased by 3% and closed orders increased by 2% compared to Q1 202414 - Daily refinance orders showed significant growth, with opened orders up 33% and closed orders up 31% over Q1 202414 - Total fee per file for the quarter was $3,761, a 6% increase over Q1 202414 F&G Segment The F&G segment reported continued growth in Assets Under Management (AUM) to $67.4 billion, despite a decline in adjusted net earnings and gross sales due to strategic product mix shifts Financial Performance F&G Segment Q1 Financials | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | AUM before flow reinsurance | $67.4 billion | $58.0 billion | +16% | | Gross Sales | $2.9 billion | $3.5 billion | -17% | | Net Sales | $2.2 billion | $2.3 billion | -5.2% | | Adjusted Net Earnings | $80 million | $95 million | -15.8% | - Q1 2025 adjusted net earnings were negatively impacted by alternative investment income that was $52 million below long-term expectations18 - The segment reported a net loss attributable to common shareholders of $18 million due to unfavorable mark-to-market movement, compared to net earnings of $98 million in Q1 202418 Sales and Product Mix - The decrease in gross sales reflects a strategic capital allocation to higher-returning business, specifically reducing MYGA sales in favor of indexed annuity and pension risk transfer sales18 - Retail channel sales were $2.1 billion, a 25% decrease from Q1 2024, driven by the reduction in MYGA sales18 - Institutional market sales grew 14% to $0.8 billion, driven by higher funding agreements18 Consolidated Financial Statements This section provides a summary of FNF's consolidated financial results and balance sheet information Summary Financial Results The company's total revenue for Q1 2025 was $2.73 billion, a decrease from $3.30 billion in Q1 2024, while adjusted net earnings per share increased slightly Q1 2025 Consolidated Financial Summary | (In millions, except per share data) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $2,729 | $3,299 | | Net earnings attributable to common shareholders | $83 | $248 | | Net earnings per share - diluted | $0.30 | $0.91 | | Adjusted net earnings | $213 | $206 | | Adjusted net earnings per share - diluted | $0.78 | $0.76 | Summary Balance Sheet As of March 31, 2025, FNF's total assets grew to $98.2 billion, with increased total equity and an expanded cash and investment portfolio Balance Sheet Highlights | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and investment portfolio | $68,651 | $67,094 | | Total assets | $98,209 | $95,263 | | Notes payable | $4,394 | $4,321 | | Total equity attributable to common shareholders | $7,893 | $7,754 | Supplementary Information This section provides additional details on non-GAAP financial measures and conference call information Non-GAAP Financial Measures The company utilizes non-GAAP financial measures to provide investors with a clearer understanding of its core financial performance by excluding certain non-recurring items - Management believes non-GAAP measures provide additional meaningful comparisons between current and prior periods23 - Key non-GAAP measures include adjusted net earnings, adjusted pre-tax title margin, and Assets Under Management (AUM)22 - Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided within the report25 Conference Call Information FNF will host a conference call for investors and analysts to discuss the first quarter 2025 results - The conference call is scheduled for Thursday, May 8, 2025, at 11:00 a.m. Eastern Time18 - A live webcast and replay will be available on the FNF Investor Relations website1819