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]