Jeffrey Dunn

Jeffrey Dunn asked for FNF's expectations regarding dividends from regulated and unregulated operations in 2026, and inquired about any tech initiatives in the market that FNF finds more attractive to acquire than to build, specifically mentioning online notary services.

Answer

Tony Park, CFO, estimated regulated dividends for 2026 at $400M-$450M, noting this is easier to project based on prior year statutory results. For unregulated operations, he expects 'that number or better' than last year's $600M-$650M, though it's harder to project. Mike Nolan, CEO, stated FNF is comfortable with its current tech stack (SoftPro, inHere) and plans further investment, but would consider acquisitions if they were helpful, though no specific needs stand out. Tony Park added that owning a notary company doesn't add significant value, as FNF utilizes various plugins and avoids non-title related notary businesses.

Jeffrey Dunn asked for expectations regarding dividends from regulated and unregulated operations in 2026. He also inquired about potential tech initiatives in the market that might be more attractive to acquire than to build, specifically mentioning online notary services.

Answer

CFO Tony Park estimated regulated dividends around $400M-$450M for 2026, with unregulated operations potentially matching or exceeding 2025's $600M-$650M. CEO Mike Nolan stated the company is comfortable with its current tech stack but would consider acquisitions if helpful, dismissing the idea of owning a notary company.

Jeffrey Dunn asked for clarification on the expectation of low-teens margins in the Real Estate Solutions (RES) segment once customer relationships mature, and whether this margin target is tied to a specific critical revenue level.

Answer

CEO Fred Eppinger clarified that low-teens margins represent the normal rate for the RES segment, following a recovery from a temporary hiccup caused by data player rate increases. He noted that in a more normalized housing market with 5 million existing home sales, margins could reach mid-teens (14-15%) due to volume leverage. CFO David Hisey added that the segment's margins had bottomed at around 7% in Q4 of the previous year and have been steadily climbing back to the low-teens range. Dunn also inquired about the sensitivity of Net Investment Income (NII) to Fed rate cuts. Hisey explained that NII sensitivity is not a direct 25 basis point correlation due to negotiated rates, and future trends will depend on the interplay between rate cuts and balance growth from increased transaction volumes.