Michael Dunlevy

Michael Dunlevy questioned if FNF's 15-20% normalized title margin range remains appropriate given strong year-end performance and AI efficiencies, and if 2026 is expected to move closer to the midpoint of that range. He also asked about FNF's capital allocation strategy and M&A focus.

Answer

Mike Nolan, CEO, stated that the 15-20% margin range is still appropriate due to market volatility, but long-term, with AI and efficiencies, they might reconsider it. He believes improved volumes in 2026 could move them into the middle of the range, acknowledging Q1 is historically soft. Tony Park, CFO, outlined consistent capital allocation: common dividends ($560M cash), modest interest expense ($75M), and ongoing reinvestment in the business (tech/efficiency). Beyond that, FNF is opportunistic with M&A (expecting more activity in 2026, particularly in the title agent space) and stock buybacks (consistent cadence, aggressive on share price weakness). Mike Nolan concurred on increased M&A opportunities.

Michael Dunlevy asked if the 15%-20% normalized Title margin range remains appropriate given strong recent performance and AI efficiencies, and if 2026 trends suggest moving towards the midpoint of that range. He also asked about future capital allocation and M&A strategy.

Answer

CEO Mike Nolan stated the 15%-20% margin range is still appropriate due to market volatility, but improved volumes could push it towards the middle. CFO Tony Park outlined consistent capital allocation: dividends, modest interest expense, reinvestment, and opportunistic acquisitions/buybacks. He expects more M&A activity in 2026, particularly in the Title agent space.