Q3 2024 Fidelity National Financial Inc Earnings Call Transcript
Key Points
- Fidelity National Financial Inc (FNF) reported strong third-quarter results with adjusted pretax earnings of $323 million and an industry-leading adjusted pretax title margin of 15.9%.
- The company experienced a significant increase in refinance orders, with daily orders rising from $1,100 in July to $1,800 in September, driven by a decrease in 30-year mortgage rates.
- Commercial volumes remained steady and resilient, with direct commercial revenue reaching $801 million in the first nine months, indicating potential for higher volumes in 2025.
- FNF's technology initiatives, including the integration of SoftPro and the InHere experience platform, continue to enhance customer experience and operational efficiency.
- F&G, a segment of FNF, achieved record assets under management of $62.9 billion and strong gross sales of $3.9 billion in the third quarter, reflecting robust growth and profitability.
- The Title business faced a low transactional environment, with daily purchase opened orders showing an 8% sequential decline from the second quarter.
- Refinance orders decreased to $1,500 per day in October due to an increase in mortgage rates, highlighting the sensitivity of refinance volumes to rate changes.
- Interest and investment income in the Title and Corporate segments is expected to decline, with projections of $95 million in Q4 and $85 million in Q3 of 2025.
- The company did not engage in share repurchases during the third quarter due to market uncertainty and plans to resume buybacks only when cash generation improves.
- Hurricanes impacted operations, particularly in the Florida direct market, potentially reducing revenue by approximately $1 million per month for a couple of months.
Good morning, and welcome to FNF second quarter earnings call. (Operator Instructions) I would now like to turn the call over to Lisa Foxworthy-Parker, SVP, Investor and External Relations. Please go ahead.
Great. Thanks, operator, and welcome, everyone. Joining me today are Mike Nolan, Chief Executive Officer; and Tony Park, Chief Financial Officer. We look forward to addressing your questions following our prepared remarks. Chris Blunt, F&G's CEO; and Wendy Young, F&G's CFO, will join us for the Q&A portion of today's call.
Today's earnings call may include forward-looking statements and projections under the Private Securities Litigation Reform Act which do not guarantee future events or performance. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events or changes in strategy. Please refer to our most recent quarterly and annual reports and other SEC filings for details on
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