Loading...
•
Dec 31, 2022
Fidelity National Financial Q4 2022 Earnings Report
Reported financial results for the fourth quarter and twelve months ended December 31, 2022.
Key Takeaways
Fidelity National Financial reported Q4 2022 financial results, with net earnings attributable to common shareholders of $68 million, or $0.25 per diluted share, compared to $533 million, or $1.87 per share, for Q4 2021. Adjusted net earnings were $287 million, or $1.06 per share, compared to $668 million, or $2.34 per share, for Q4 2021. The Title segment contributed $180 million, while the F&G Segment contributed $131 million.
Total gross sales of $2.7 billion for the fourth quarter, a 23% increase over fourth quarter 2021.
FNF has repurchased 1 million shares for $38 million, at an average price of $37.87 per share, in the fourth quarter and paid common dividends at $0.45 per share for $124 million.
FNF ended the fourth quarter with $939 million in cash and short-term liquid investments at the holding company.
Industry leading adjusted pre-tax Title margin of 12.3% for the fourth quarter.
Fidelity National Financial
Fidelity National Financial
Fidelity National Financial Revenue by Segment
Revenue by Segment
Title Segment Revenue
CapyFin.com Forward Guidance
FNF is managing its cost structure to maximize profitability and cash flow, as evidenced by the industry-leading adjusted pre-tax Title margin. The successful listing of F&G on the New York Stock Exchange is expected to unlock growing value in the business, with F&G's spread-based income providing a steady and growing source of earnings.
Positive Outlook
- FNF is focused on managing its cost structure to the trend in open orders to maximize profitability and cash flow.
- Industry leading adjusted pre-tax Title margin of 12.3% for the fourth quarter.
- Successfully listed F&G on the New York Stock Exchange on December 1st.
- F&G's spread based income delivers a steady and growing source of earnings which is countercyclical to our Title business as F&G benefits from the rising rate environment.
- Over $900 million of liquidity on our balance sheet provides ample flexibility to take advantage of further opportunities as they arise.
Challenges Ahead
- The steep rise in interest rates pressured results through the fourth quarter.
- Title’s considerable decline in volumes as compared to the prior year record level given the precipitous increase in mortgage rates.
- F&G’s results reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation.
- Purchase orders opened decreased 31% on a daily basis and purchase orders closed decreased 36% on a daily basis from the fourth quarter of 2021
- Refinance orders opened decreased 76% on a daily basis and refinance orders closed decreased 79% on a daily basis from fourth quarter of 2021