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Dec 31, 2019
Fidelity National Financial Q4 2019 Earnings Report
Fidelity National Financial reported strong Q4 2019 results, with diluted EPS of $1.22 and adjusted diluted EPS of $0.95.
Key Takeaways
Fidelity National Financial reported Q4 2019 total revenue of approximately $2.4 billion, net earnings of $340 million, and diluted EPS of $1.22. The adjusted pre-tax title margin was 16.3%.
Total revenue was approximately $2.4 billion, compared to $1.7 billion in Q4 2018.
Net earnings were $340 million and adjusted net earnings were $263 million, compared to $44 million and $175 million in Q4 2018, respectively.
Diluted EPS was $1.22 and adjusted diluted EPS was $0.95, compared to $0.16 and $0.63 in Q4 2018, respectively.
Adjusted pre-tax title earnings were $355 million and an adjusted pre-tax title margin of 16.3%.
Fidelity National Financial
Fidelity National Financial
Fidelity National Financial Revenue by Segment
Revenue by Segment
Title Segment Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
FNF anticipates mortgage originations to moderate in 2020 and will manage expenses accordingly. The company plans to diversify earnings through the acquisition of FGL Holdings.
Positive Outlook
- FNF will remain vigilant on expenses as they manage the expected slowdown in volumes.
- Expanding into the annuity market through the acquisition of FGL Holdings would best maximize value for shareholders.
- F&G offers an attractive return on capital investment.
- F&G is in an industry with strong secular growth tailwinds.
- The Board will continue to evaluate capital allocation including share repurchases, dividends, debt paydown and further investments in our business segments.
Challenges Ahead
- Mortgage originations are expected to moderate through the year from the very strong levels enjoyed in 2019.
- Refinance volumes are expected to naturally ease.
- Economic environments may be more challenging for title insurance.
- The company faces risks and uncertainties related to the F&G transaction, including the ability to consummate the transaction and integrate operations.
- Changes in general economic, business and political conditions could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income