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Dec 31, 2023
Fidelity National Financial Q4 2023 Earnings Report
Fidelity National Financial reported a net loss but adjusted EPS exceeded expectations due to solid title revenue and record F&G assets under management.
Key Takeaways
Fidelity National Financial, Inc. reported a net loss attributable to common shareholders of $69 million, or $0.25 per diluted share, for Q4 2023, compared to a net loss of $5 million, or $0.02 per share, for Q4 2022. However, adjusted net earnings were $204 million, or $0.75 per share, compared to $274 million, or $1.01 per share, for the same period in the prior year. The Title Segment contributed $174 million, while the F&G Segment contributed $64 million to adjusted net earnings. F&G achieved record assets under management of $49.5 billion.
Title segment delivered solid revenue despite a challenging mortgage environment.
F&G segment achieved record gross sales and record assets under management.
FNF maintains ample deployable capital for strategic acquisitions.
Company is focused on a balanced capital allocation strategy, including returning capital to shareholders.
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 did not provide specific forward guidance in this earnings report. However, they did state that they are well positioned for the current market and poised to benefit from the eventual turn in the housing market.
Positive Outlook
- FNF's Title business delivered an industry leading adjusted pre-tax title margin of 13.7% for the full year.
- F&G achieved record assets under management of $49.5 billion, rising 14% as compared to year end 2022.
- F&G now comprises 30% of FNF’s annual adjusted net earnings.
- FNF invested $250 million in F&G to accelerate their retained asset growth.
- FNF deployed $300 million across more than ten acquisitions to expand the Title business.
Challenges Ahead
- Interest rate volatility impacted the annuities industry.
- Short-term timing lags between precipitous rate movements and dynamic pricing actions.
- Residential and commercial volumes declined due to higher mortgage rates.
- Cyber security incident negatively impacted adjusted pre-tax title margin by approximately 0.5%.
- F&G's adjusted net earnings reflect alternatives investment portfolio short-term mark-to-market movement that differs from long-term return expectation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income