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Jun 30, 2023
Fidelity National Financial Q2 2023 Earnings Report
Fidelity National Financial reported a decrease in net earnings but highlighted solid title revenue and steady F&G segment gross sales.
Key Takeaways
Fidelity National Financial reported second quarter results with net earnings attributable to common shareholders of $219 million, or $0.81 per diluted share, compared to $537 million, or $1.92 per share, for the second quarter of 2022. Adjusted net earnings attributable to common shareholders for the second quarter were $274 million, or $1.01 per share, compared to $557 million, or $2.00 per share, for the second quarter of 2022.
Title Segment total revenue was $1.9 billion, a 27% decrease from the second quarter of 2022.
F&G Segment gross sales were $3.0 billion, a 3% decrease from the second quarter of 2022.
F&G Segment assets under management (AUM) reached a record $46.3 billion as of June 30, 2023.
FNF paid common dividends of $0.45 per share for $121 million in the second quarter.
Fidelity National Financial
Fidelity National Financial
Fidelity National Financial Revenue by Segment
Revenue by Segment
Title Segment Revenue
CapyFin.com Forward Guidance
The company focuses on balance sheet strength and remains committed to its quarterly cash dividend while prudently moderating share repurchase activity.
Positive Outlook
- Long-term outlook for housing remains strong given household formation and underlying demographics in the U.S.
- FNF ended the quarter with $885 million in cash and short-term liquid investments.
- The company is positioned for an uncertain environment.
- FNF remains committed to its quarterly cash dividend.
- F&G's financial strength ratings upgrade to ‘A3’ by Moody’s is a strong validation of financial performance.
Challenges Ahead
- Near term continues to be uncertain given the high level of interest rates which could persist for longer than expected.
- Moderated share repurchase activity in order to preserve financial flexibility.
- Title revenue decreased due to decline in volumes as compared to the prior year given higher mortgage rates.
- F&G Segment gross sales were down 3% compared to the second quarter of 2022.
- Alternative investment returns below our long-term expectations by $0.17 per share.