In This Article:
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Total Revenue: $3.6 billion in the third quarter.
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Adjusted Total Revenue: $3.3 billion, excluding net recognized gains and losses.
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Net Earnings: $266 million, including net recognized gains of $269 million.
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Adjusted Net Earnings: $356 million or $1.30 per diluted share.
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Title Segment Revenue: $2 billion, excluding net recognized gains.
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Adjusted Pretax Title Earnings: $323 million with a 15.9% margin.
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F&G Assets Under Management: $62.9 billion at the end of the third quarter.
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F&G Gross Sales: $3.9 billion, up 39% over the prior year quarter.
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F&G Adjusted Net Earnings: $135 million in the third quarter.
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Cash and Short-term Investments: $822 million at the holding company level as of September 30.
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Consolidated Debt Outstanding: $4.2 billion at September 30.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fidelity National Financial Inc (NYSE:FNF) reported strong third-quarter results with adjusted pretax earnings of $323 million and an industry-leading adjusted pretax title margin of 15.9%.
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The company experienced a significant increase in refinance orders, with daily orders rising from $1,100 in July to $1,800 in September, driven by a decrease in 30-year mortgage rates.
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Commercial volumes remained steady and resilient, with direct commercial revenue reaching $801 million in the first nine months, indicating potential for higher volumes in 2025.
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FNF's technology initiatives, including the integration of SoftPro and the InHere experience platform, continue to enhance customer experience and operational efficiency.
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F&G, a segment of FNF, achieved record assets under management of $62.9 billion and strong gross sales of $3.9 billion in the third quarter, reflecting robust growth and profitability.
Negative Points
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The Title business faced a low transactional environment, with daily purchase opened orders showing an 8% sequential decline from the second quarter.
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Refinance orders decreased to $1,500 per day in October due to an increase in mortgage rates, highlighting the sensitivity of refinance volumes to rate changes.
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Interest and investment income in the Title and Corporate segments is expected to decline, with projections of $95 million in Q4 and $85 million in Q3 of 2025.
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The company did not engage in share repurchases during the third quarter due to market uncertainty and plans to resume buybacks only when cash generation improves.
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Hurricanes impacted operations, particularly in the Florida direct market, potentially reducing revenue by approximately $1 million per month for a couple of months.