FNF Reports Fourth Quarter and Full Year 2024 Financial Results

• The Title Segment contributed $263 million and $877 million for the fourth quarter and full year 2024, respectively, compared to $174 million and $760 million for the fourth quarter and full year 2023, respectively
• The F&G Segment contributed $123 million and $475 million for the fourth quarter and full year 2024, respectively, compared to $64 million and $285 million for the fourth quarter and full year 2023, respectively
• The Corporate Segment, before eliminating dividend income from F&G in the consolidated financial statements, had adjusted net earnings of $8 million and $21 million for the fourth quarter and full year 2024, respectively, compared to adjusted net losses of $12 million and $18 million for fourth quarter and full year 2023, respectively
• FNF's consolidated adjusted net earnings per share include significant items in the F&G Segment. The F&G Segment's adjusted net earnings include alternative investment returns below our long-term expectations of $0.10 and $0.45 for the fourth quarter and full year 2024, respectively, as compared to $0.11 and $0.48 for the fourth quarter and full year 2023, respectively. In addition, F&G's adjusted net earnings include significant income items of $0.07 and $0.11 for the fourth quarter and full year 2024, respectively, as compared to significant expense items of $0.06 and $0.16 for the fourth quarter and full year 2023, respectively. Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation

Company Highlights

• Title Segment delivered strong outperformance in the current market: For the Title Segment, total revenue of $2.0 billion and $7.7 billion for the quarter and full year, respectively, compared to $1.7 billion and $7.0 billion for the fourth quarter and full year 2023, respectively. Total revenue, excluding recognized gains and losses, of $2.1 billion for the fourth quarter, a 23% increase over the fourth quarter of 2023, and $7.7 billion for the full year, a 9% increase over full year 2023. Our industry leading adjusted pre-tax title margin was 16.6% and 15.1% for the fourth quarter and full year, respectively. Notably, adjusted pre-tax title margin for the fourth quarter was the best of 2024 and the highest over the past nine quarters
• F&G Segment gross sales drove record assets under management: For the F&G Segment, gross sales of $3.5 billion for the fourth quarter, a 15% decrease from the near record fourth quarter of 2023. Record gross sales of $15.3 billion for the full year, a 16% increase over full year 2023. F&G achieved record assets under management before flow reinsurance of $65.3 billion at the end of the fourth quarter, an increase of 17% over the fourth quarter of 2023
• Sustainable common dividend backed by strong balance sheet: FNF paid common dividends of $0.50 per share for $141 million in the fourth quarter and ended the year with $786 million in cash and short-term liquid investments at the holding company

William P. Foley, II, Chairman, commented, "We delivered an industry leading adjusted pre-tax Title margin of 15.1% for the full year 2024 which is an outstanding result and validation of the operational efficiencies that our management team has achieved over the last decade. Our Title segment has significantly outperformed prior cycle troughs and is well positioned for the eventual upturn in the residential housing market once mortgage interest rates begin to normalize. F&G's business has continued to perform above our expectations having achieved record assets under management before flow reinsurance of $65.3 billion at year end driven by record gross sales of $15.3 billion. Given this strong growth, F&G contributed 38% of FNF's consolidated adjusted net earnings for the full year 2024 as compared to 30% in 2023.  F&G is a strong growth engine which we expect to continue as they execute against their medium-term financial goals."

Summary Financial Results

Segment Financial Results

Title Segment
This segment consists of the operations of the Company's title insurance underwriters and related businesses, which provide core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services, and home warranty.

Mike Nolan, Chief Executive Officer, said, "I am very proud of our financial results, including our industry leading 16.6% adjusted pre-tax Title margin for the fourth quarter of 2024, which reflect our pioneering work and investment that we have made over many years. We have become more efficient across our operational footprint through our SoftPro integrated operating platform and enhanced our customer experience through proven tools such as our InHere digital transaction platform. We continue to improve the efficiency of our operations while exploring further innovation with generative AI tools and continuing our focus on enhancing the title and settlement processes. We are continually striving to improve our margins like what we have achieved this past year and are well positioned to thrive in the year ahead."

Fourth Quarter 2024 Highlights

• Total revenue of $2.0 billion, compared with $1.7 billion in the fourth quarter of 2023
• Total revenue, excluding recognized gains and losses, of $2.1 billion, a 23% increase over the fourth quarter of 2023
  • Direct title premiums of $625 million, a 28% increase over fourth quarter of 2023
  • Agency title premiums of $787 million, a 27% increase over fourth quarter of 2023
  • Commercial revenue of $376 million, a 28% increase over fourth quarter of 2023
• Purchase orders opened increased 6% on a daily basis over the fourth quarter of 2023, and purchase orders closed increased 9% on a daily basis over the fourth quarter of 2023
• Refinance orders opened increased 46% on a daily basis and refinance orders closed increased 61% on a daily basis over the fourth quarter of 2023
• Commercial orders opened increased 9% and commercial orders closed increased 10% over the fourth quarter of 2023
• Total fee per file of $3,909 for the fourth quarter, a 3% increase over the fourth quarter of 2023

Fourth Quarter 2024 Financial Results

• Pre-tax title margin of 13.5% and industry leading adjusted pre-tax title margin of 16.6% for the fourth quarter of 2024, compared to 14.0% and 11.8% for the fourth quarter of 2023, respectively
• Pre-tax earnings from continuing operations in Title for the fourth quarter of $271 million, compared with $245 million for the fourth quarter of 2023
• Adjusted pre-tax earnings in Title for the fourth quarter of $343 million, compared with $198 million for the fourth quarter of 2023

Full Year 2024 Financial Results

• Pre-tax title margin of 14.2% and industry leading adjusted pre-tax title margin of 15.1% for the full year, compared to 12.5% and 13.7% for the full year 2023, respectively
• Pre-tax earnings from continuing operations in Title for the full year of $1.1 billion, compared to $883 million for the full year 2023
• Adjusted pre-tax earnings in Title for the full year of $1.2 billion, compared to $964 million for the full year 2023

F&G Segment
This segment consists of operations of FNF's majority-owned subsidiary F&G, a leading provider of insurance solutions serving retail annuity and life customers and funding agreement and pension risk transfer institutional clients.

Chris Blunt, Chief Executive Officer, commented, "We reported record gross sales of $15.3 billion for the full year 2024, a 16% increase over 2023. Notably, gross sales have more than tripled since 2020. During 2024, we achieved record full year retail channel and pension risk transfer sales due to favorable market conditions and secular demand for our products that is poised to persist. Lastly, we continue to execute our capital light, strategic initiatives through utilizing flow reinsurance and growing our owned distribution business which, taken together, offer F&G a higher return earnings stream. We enter 2025 with strong momentum and I am excited with the opportunities to further grow AUM before flow reinsurance and adjusted net earnings."

Fourth Quarter 2024

• Profitable gross sales: Gross sales of $3.5 billion for the fourth quarter, a decrease of 15% from the near record fourth quarter of 2023
• Net sales of $2.5 billion for the fourth quarter, in line with the fourth quarter of 2023
• Record AUM before flow reinsurance of $65.3 billion at the end of the fourth quarter increased 17% over the fourth quarter of 2023. This included record AUM of $53.8 billion, an increase of 10% over the fourth quarter of 2023 driven by retained new business flows
• Net earnings attributable to common shareholders for F&G Segment of $274 million for the fourth quarter due to favorable mark-to-market movement, compared to a net loss of $251 million for the fourth quarter of 2023 which included unfavorable mark-to-market movement
• Adjusted net earnings attributable to common shareholders for F&G Segment of $123 million for the fourth quarter, compared to $64 million for the fourth quarter of 2023
  • F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation. The fourth quarter of 2024 includes short term investment income from alternative investments and $19 million of net significant income items, whereas the fourth quarter of 2023 included short term investment income from alternative investments and $16 million of net significant expense items
  • As compared to the prior year quarter, adjusted net earnings reflect asset growth, margin diversification from accretive flow reinsurance fees and owned distribution margin, disciplined expense management and higher interest expense due to planned capital market activity
  • Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation

Full Year 2024

• Record gross sales: Gross sales of $15.3 billion for the full year, an increase of 16% over the full year 2023, driven by record retail channel and robust institutional market sales
• Record net sales of $10.6 billion for the full year, compared to $9.2 billion for the full year 2023
• Record AUM before flow reinsurance of $65.3 billion at year-end 2024 increased 17% over year-end 2023. This included record AUM of $53.8 billion, an increase of 10% over year-end 2023 driven by retained new business flows
• Net earnings attributable to common shareholders for F&G Segment of $538 million for the full year due to favorable mark-to-market movement, compared to a net loss of $46 million for the full year 2023 which included unfavorable mark-to-market movement
• Adjusted net earnings attributable to common shareholders for F&G Segment of $475 million for the full year, compared to $285 million for the full year 2023
  • F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation. The full year 2024 includes short term investment income from alternative investments and $30 million of net significant income items, whereas the full year 2023 included short term investment income from alternative investments and $43 million of net significant expense items
  • As compared to the prior year, adjusted net earnings reflect asset growth, margin diversification from accretive flow reinsurance fees and owned distribution margin, disciplined expense management and higher interest expense due to planned capital market activity
  • Please see "Segment Financial Results" for F&G under "Non-GAAP Measures and Other Information" for further explanation

Conference Call
We will host a call with investors and analysts to discuss FNF's fourth quarter and full year 2024 results on Friday, February 21, 2025, beginning at 11:00 a.m. Eastern Time.  A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com.  The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries.  FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States.  More information about FNF can be found at fnf.com. 

About F&G
F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com.

Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this earnings release includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings per share, adjusted pre-tax title earnings, adjusted pre-tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), adjusted net earnings attributable to common shareholders (adjusted net earnings), assets under management (AUM), average assets under management (AAUM) and sales. 

Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods.  Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do.

The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.  By disclosing these non-GAAP financial measures, FNF believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided below.

Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business, political crisis, war and pandemic conditions, including ongoing geopolitical conflicts; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U.S. economy; our potential inability to find suitable acquisition candidates; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries, including regulation of title insurance and services and privacy and data protection laws; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; and other risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission.

FNF-E