Financial Data and Key Metrics Changes - The company generated $4 billion in total revenue in Q3 2025, up from $3.3 billion in Q3 2024, excluding net recognized gains and losses [13] - Net earnings for Q3 2025 were $358 million, compared to $266 million in Q3 2024, with adjusted net earnings of $439 million or $1.63 per diluted share, up from $356 million or $1.30 per share in the prior year [13][14] - Adjusted pre-tax title earnings were $410 million, a 27% increase from $323 million in Q3 2024, with an adjusted pre-tax title margin of 17.8%, up from 15.9% [4][15] Business Line Data and Key Metrics Changes - The title segment generated $2.3 billion in total revenue in Q3 2025, compared to $2 billion in Q3 2024, with direct premiums increasing by 19% and agency premiums by 13% [14][15] - F&G's assets under management reached $71.4 billion, up 14% year-over-year, with adjusted net earnings of $139 million, slightly up from $135 million in Q3 2024 [12][18] Market Data and Key Metrics Changes - Daily purchase orders opened saw an 8% sequential decline, but September's orders were higher than August's due to a modest decrease in mortgage rates [5] - Refinance orders surged to 2,100 per day in September, reflecting a 15% increase over Q3 2024 and a 22% increase over Q2 2025 [6][9] - Total commercial orders opened averaged 5,800 per day in Q3, with a notable 34% increase in commercial revenue compared to Q3 2024 [9][10] Company Strategy and Development Direction - The company plans to distribute approximately 12% of F&G's outstanding shares to FNF shareholders, increasing F&G's public float from 18% to 30% [22][23] - The strategy focuses on balancing growth in spread-based annuities alongside fee-based insurance and distribution strategies to enhance long-term shareholder value [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial business, noting the potential for 2026 to match peak years of 2021 and 2022 due to strong performance and a growing pipeline [30][32] - The company anticipates a good fourth quarter, although it is typically the weakest for purchase closings, with expectations for modestly better margins next year if the purchase environment improves [43][44] Other Important Information - The company has deployed AI tools across the organization to enhance productivity and margin efficiency, with 85% of residential sales transactions engaged through the inHere digital platform [10][11] - The title claims paid were $58 million, lower than the provision of $70 million, indicating effective claims management [16] Q&A Session Summary Question: Could you have spun the whole piece out tax-free? - Yes, the company could have spun the entire company to FNF shareholders tax-free, but by dropping below 80%, that option is off the table [28] Question: Do you think 2026 could match peak years? - Yes, the company has seen strong growth in commercial activity and believes there is potential for better performance than in 2021 and 2022 [30][32] Question: What are the options regarding F&G distribution? - The company likes F&G and sees continued growth, but other options remain on the table for future distributions [37][38] Question: What was the impact of security and recruiting investments on margins? - There were no significant net impacts on margins from these initiatives this quarter, with a strong overall performance across multiple segments [39][42] Question: What was the daily count for refis in October? - The company opened just over 1,800 refinance orders per day in October, down from 2,100 in September but above the quarterly average [57] Question: What is the engagement level with the inHere platform? - 85% of orders had customer engagement through the inHere platform, indicating a growing trend towards digital interaction [63][64]

Financial Data and Key Metrics Changes - The company reported adjusted net earnings of $103 million or $0.77 per share for the second quarter, reflecting asset growth and higher fee income [17] - Adjusted return on assets (ROA) was 92 basis points, compared to 91 basis points in the same period last year [19] - Adjusted return on equity (ROE), excluding AOCI, was 8.8%, up 40 basis points from the previous year [19] Business Line Data and Key Metrics Changes - Gross sales reached $4.1 billion in the second quarter, marking one of the best sales quarters in history [6] - Core product sales, including fixed index annuities, index life, and pension risk transfer, totaled $2.2 billion, up 22% sequentially and 10% year-over-year [6][7] - MYGA sales were a record $1.9 billion in the second quarter, a 73% increase from the previous quarter but down 21% from the same quarter last year [8] Market Data and Key Metrics Changes - The total annuity market has expanded due to strong consumer demand and favorable demographics, with the aging population seeking guaranteed income streams [5] - The company reported record assets under management (AUM) before flow reinsurance of $69.2 billion, a 137% increase compared to the previous year [11] Company Strategy and Development Direction - The company is transitioning towards a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle in partnership with Blackstone [4][20] - The reinsurance sidecar is expected to enhance ROE over time and is part of a broader strategy to optimize capital allocation [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong second quarter results and the potential for continued growth in fee-based earnings [23] - The company aims to improve its operating expense ratio from 60 basis points at year-end 2024 to approximately 50 basis points by year-end 2025 [18] Other Important Information - An executive management transition was announced, with Connor Murphy taking on the role of President in addition to his current role as CFO [14] - The company has invested nearly $700 million in its own distribution company, reflecting a commitment to growing this segment [22] Q&A Session Summary Question: What is the expected capacity of the new sidecar with $1 billion in commitments? - Management indicated that the capacity could be multiple billions, depending on product type, and emphasized the strategic importance of moving towards a capital-light path [27] Question: How are MYGA sales shaping up for Q3? - Management expects a more normalized rate for MYGA sales, with potential volatility, but anticipates a higher level of indexed annuity sales due to the new sidecar [38] Question: What is the outlook for funding agreements? - Management noted that the funding agreement market looks reasonably attractive and will be closely monitored in Q3 [41] Question: How does the company plan to maintain its crediting rates? - Management stated that they regularly review in-force crediting actions and have a good track record of maintaining consistent spreads [54]

Financial Data and Key Metrics Changes - First quarter reported adjusted net earnings were $91 million or $0.72 per share, compared to $108 million or $0.86 per share in the first quarter of 2024, reflecting a decrease of $17 million primarily driven by margin compression and higher interest expense [24][26] - First quarter adjusted return on assets (ROA) was 68 basis points, pressured from near-term headwinds, while adjusted ROA on a last twelve-month basis decreased to 100 basis points from 106 basis points in the fourth quarter of 2024 [27] - Reported adjusted return on equity (ROE), excluding AOCI, was 9.7%, up 2.3% over the first quarter of 2024 [27] Business Line Data and Key Metrics Changes - F and G reported record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, reflecting a 169% increase compared to the first quarter of 2024 [19] - Gross sales were $2.9 billion, a 17% decrease from the first quarter of 2024, primarily due to lower MYGA sales, while indexed annuity sales remained strong at $1.5 billion [19][20] - Pension risk transfer (PRT) sales were $311 million in the first quarter, down from $584 million in the first quarter of 2024, with funding agreements at $525 million compared to $105 million in the prior year [21] Market Data and Key Metrics Changes - The investment portfolio is well matched to the liability profile, with 96% of fixed maturities being investment grade, and credit-related impairments averaging six basis points over the last five years [10][11] - The portfolio's fixed income yield was 4.53% in the first quarter, a decrease of three basis points from the first quarter of 2024, reflecting the runoff of higher yielding in-force assets [12] Company Strategy and Development Direction - The company continues to diversify earnings between spread-based and fee-based sources, with a focus on optimizing return on capital and maintaining pricing discipline [17][29] - The owned distribution portfolio is expected to create value with double-digit annual growth of EBITDA over the medium term [17] - The company remains committed to achieving targets set during the 2023 Investor Day, focusing on managing sales and in-force profitability [29] Management's Comments on Operating Environment and Future Outlook - Management noted that near-term headwinds are believed to be temporary, with expectations for improvement throughout 2025 [6][7] - The company is focused on managing sales and in-force profitability to optimize return on capital, while navigating macroeconomic uncertainties [29] - Management expressed confidence in the resilience of the business model despite current market volatility [60] Other Important Information - The company has successfully completed capital markets activities, including issuing $375 million of junior subordinated notes and redeeming $300 million of senior notes [28][29] - The company ended the quarter with a GAAP book value attributable to common shareholders of $5.8 billion or $43.31 per share [29] Q&A Session Summary Question: Growth opportunity for the Ryla product - Management indicated that while MIGA sales declined due to market volatility, there has been a rebound in April, and they remain optimistic about the Ryla product's growth potential [32][34] Question: Impact of lower industry volume on own distribution - Management noted a rebound in own distribution in April and suggested that the slowdown was balanced between industry volume and investments in the platform [36][37] Question: Decision to raise common equity - Management clarified that the capital raised will be deployed thoughtfully into new business opportunities, maintaining a disciplined approach to pricing [40][41] Question: Cost of funds increase - Management acknowledged the sequential increase in the cost of funds and attributed it to lower surrender income and cash yield impacts, while maintaining pricing discipline [45][46] Question: MIGA sales rebound in April - Management confirmed that the rebound was largely due to internal factors and improved market conditions, emphasizing the profitability of the MIGA business [53][54] Question: RBC sensitivity to equity market volatility - Management reassured that there are no changes to RBC expectations and targets, maintaining a focus on being above 400% [69] Question: Performance of alternative investments - Management indicated that the direct lending portfolio performed well, while the LP portfolio came in lower than expectations, impacting overall yield [72][74]