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Mar 31, 2023
Fidelity National Financial Q1 2023 Earnings Report
Reported a net loss attributable to common shareholders due to unfavorable mark-to-market movement in the F&G segment, but Title segment maintained industry-leading margins through cost management.
Key Takeaways
Fidelity National Financial reported a net loss for Q1 2023, primarily due to losses in the F&G segment. However, the Title segment demonstrated resilience with strong margins. F&G achieved record gross sales and assets under management.
Net loss attributable to common shareholders was $59 million, or $0.22 per diluted share.
Adjusted net earnings attributable to common shareholders was $141 million, or $0.52 per share.
Title Segment reported total revenue of $1.6 billion and an adjusted pre-tax title margin of 10%.
F&G Segment achieved record gross sales of $3.3 billion and record assets under management of $45.4 billion.
Fidelity National Financial
Fidelity National Financial
Fidelity National Financial Revenue by Segment
Revenue by Segment
Title Segment Revenue
CapyFin.com Forward Guidance
The company is cautiously optimistic about seasonal patterns in the residential purchase market, but acknowledges lower volume levels due to soft existing home sale and refinance activity.
Positive Outlook
- Underlying fundamentals of the residential housing market remain strong.
- Pent-up demand and a growing working age population are expected to support a rebound once rates stabilize.
- FNF's industry leading position and strong balance sheet put it in an advantageous position.
- F&G is beginning to utilize higher levels of flow reinsurance on new sales.
- FNF is committed to returning capital to its shareholders through dividends.
Challenges Ahead
- Market volatility and higher rates pressured mortgage volumes.
- Considerable decline in volumes compared to the prior year due to higher mortgage rates.
- Alternatives investment portfolio short-term mark-to-market movement differs from long-term return expectation.
- Quarterly fluctuations in market risk benefit actual experience differ from expectation.
- Uncertain economic outlook necessitates a cautious approach to share buybacks.