On August 5, 2024, Fidelity National Financial Inc (FNF, Financial) released its 8-K filing for the second quarter of 2024. Fidelity National Financial Inc provides title insurance, escrow, and other title-related services. It operates in three segments: Title, F&G, Corporate and Other. The title segment, which derives the majority of revenue, consists of the operations of title insurance underwriters and related businesses, providing title insurance and escrow and other title-related services including trust activities, trustee sales guarantees, and home warranty products. Substantially all of the company's revenue is generated in the United States.
Performance Overview
Fidelity National Financial Inc (FNF, Financial) reported net earnings attributable to common shareholders of $306 million, or $1.12 per diluted share, for the second quarter of 2024, compared to $219 million, or $0.81 per share, for the same period in 2023. Adjusted net earnings attributable to common shareholders were $338 million, or $1.24 per share, surpassing the analyst estimate of $1.23 per share. The company's total revenue for the quarter was $3,158 million, slightly above the $3,068 million reported in Q2 2023.
Segment Highlights
The Title Segment contributed $241 million to adjusted net earnings, up from $226 million in Q2 2023. This increase was driven by higher average fee per file, higher agency revenue, and an uplift in investment income. The F&G Segment saw a significant rise in adjusted net earnings to $122 million, compared to $67 million in the previous year, reflecting strong sales growth and record assets under management (AUM).
Financial Achievements
Fidelity National Financial Inc (FNF, Financial) achieved several key financial milestones in Q2 2024:
- Total revenue of $3,158 million, up from $3,068 million in Q2 2023.
- Record gross sales of $4.4 billion for the F&G Segment, a 47% increase over Q2 2023.
- Record AUM of $52.2 billion as of June 30, 2024, driven by new business flows and stable inforce retention.
- Adjusted pre-tax title margin of 16.2%, compared to 15.8% in Q2 2023.
Income Statement and Balance Sheet Insights
Key metrics from the income statement and balance sheet include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $3,158 million | $3,068 million |
| Net Earnings Attributable to Common Shareholders | $306 million | $219 million |
| Adjusted Net Earnings | $338 million | $274 million |
| Adjusted EPS | $1.24 | $1.01 |
| F&G Gross Sales | $4.4 billion | $3.0 billion |
| F&G AUM | $52.2 billion | $46.0 billion |
Commentary and Analysis
"Our Title business continues to perform well, delivering an industry-leading adjusted pre-tax Title margin of 16.2% for the second quarter, as compared to 15.8% in the year-ago quarter, and demonstrating our disciplined operating strategy as we’ve adapted to the current market," said William P. Foley, II, Chairman.
Despite higher mortgage rates impacting residential purchase volumes, the F&G Segment benefited from strong demand for its products, driven by demographic tailwinds and prior investments in building out its multi-channel sales platform. This resulted in record gross sales and AUM for the segment.
Conclusion
Fidelity National Financial Inc (FNF, Financial) has demonstrated resilience and growth in Q2 2024, with significant improvements in both the Title and F&G Segments. The company's ability to navigate market challenges and achieve record financial metrics underscores its strong operational strategy and market position. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Fidelity National Financial Inc for further details.
