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Fidelity National Financial, Inc. (FNF)·Q4 2024 Earnings Summary

Executive Summary

  • FNF delivered Q4 consolidated adjusted EPS of $1.34 on total revenue of $3.62B; Title segment adjusted pre-tax margin hit 16.6%, the best of 2024 and highest in nine quarters .
  • Title segment revenue ex gains rose 23% YoY to $2.1B; direct, agency, and commercial revenues each grew ~27–28% YoY, with fee per file up 3% YoY to $3,909 .
  • F&G posted Q4 adjusted net earnings of $123M and ended 2024 with record AUM before flow reinsurance of $65.3B (+17% YoY), despite Q4 gross sales down 15% YoY from a near-record prior-year quarter .
  • Capital return and balance sheet: Board resumed share buybacks (per CFO) and declared a $0.50 quarterly dividend payable March 31, 2025; holding-company cash ended 2024 at $786M .
  • Stock reaction catalysts: margin outperformance in Title, improving January order momentum, and F&G growth/AUM records; management expects 2025 quarterly interest and investment income of $95–$100M, with >$100M annual dividend income from F&G to corporate .

What Went Well and What Went Wrong

What Went Well

  • Title margin and breadth: “industry leading 16.6% adjusted pre-tax Title margin” in Q4 and 15.1% for FY24; strength across direct, agency, commercial, subservicing, and home warranty .
  • Commercial strength: Q4 commercial revenue rose 28% YoY to $376M; national commercial revenue $208M, with improving pipeline into 2025 .
  • F&G growth engine: Record AUM before flow reinsurance $65.3B (+17% YoY), Q4 adjusted net earnings $123M, and FY gross sales $15.3B (+16% YoY); management highlighted accretive flow reinsurance and owned distribution .

What Went Wrong

  • F&G quarterly sales: Q4 gross sales declined 15% YoY from a near-record Q4’23, though net sales were flat; alternative investment returns were below long-term expectations by $27M (~$0.10/share) in Q4 .
  • Title claims: Q4 title claims paid ($75M) exceeded provision ($64M), albeit reserves remain ~3.7% above actuary central estimate and provision rate held at 4.5% of premiums .
  • Consensus comparison unavailable: S&P Global (SPGI) estimates were not retrievable due to access limits, so beats/misses vs Street could not be assessed (see Estimates Context).

Financial Results

Consolidated Results vs Prior Quarters

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$3,158 $3,603 $3,621
Net EPS (Diluted)$1.12 $0.97 $1.65
Adjusted EPS (Diluted)$1.24 $1.30 $1.34
Adjusted Pre-tax Title Margin (%)16.2% 15.9% 16.6%

Segment Breakdown (Q4 2024)

Metric ($USD Millions)ConsolidatedTitleF&GCorporate & OtherElimination
Total Revenue$3,621 $2,012 $1,559 $78 ($28)
Pre-tax Earnings (Loss)$640 $271 $412 ($15) ($28)
Net Earnings (Loss) to Common$450 $203 $274 $1 ($28)
Adjusted Pre-tax Earnings (Loss)$498 $343 $186 ($3) ($28)
Adjusted Net Earnings to Common$366 $263 $123 $8 ($28)

Title KPIs and Activity

KPIQ2 2024Q3 2024Q4 2024
Direct Title Premiums ($MM)$564 $571 $625
Agency Title Premiums ($MM)$784 $789 $787
Commercial Revenue ($MM)$273 $290 $376
Fee per File ($)$3,759 $3,708 $3,909
Total Opened Orders (000s)344 352 299
Total Closed Orders (000s)229 232 232
Purchase % of Opened Orders80% 73% 72%
Refinance % of Opened Orders20% 27% 28%
Actual Title Claims Paid ($MM)$70 $64 $75

F&G Production

MetricQ2 2024Q3 2024Q4 2024
Gross Sales ($USD Millions)$4,420 $3,878 $3,469
Net Sales ($USD Millions)$3,445 $2,386 $2,438
AUM before Flow Reinsurance ($USD Millions)$61,400 $62,875 $65,274
Adjusted Net Earnings ($USD Millions)$122 $135 $123

Estimates vs Actuals (SPGI)

MetricQ4 2024 Consensus (S&P Global)Q4 2024 Actual
Revenue ($USD Millions)N/A$3,621
Primary EPS (Diluted)N/A$1.65
Adjusted EPS (Diluted)N/A$1.34

SPGI consensus estimates were unavailable due to access limits; no beats/misses assessment.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Interest & Investment Income (Title+Corporate)FY2025 (quarterly run-rate)N/A$95–$100M per quarter (assuming no Fed cuts) New
Dividend Income from F&G to CorporateFY2025 (annual)N/A>$100M expected New
Share RepurchasesOngoingPaused/opportunistic stanceBoard decided to resume, modest daily activity when not blacked out Raised
Common DividendQ4 2024 → Q1 2025$0.48 (raised to $0.50 on Nov 7, 2024) $0.50 declared for Mar 31, 2025 Maintained at higher level
Debt & Capitalization TargetOngoing20–30% debt-to-cap (ex-AOCI)Remains in target range Maintained

Earnings Call Themes & Trends

TopicQ-2 (Q2 2024)Q-1 (Q3 2024)Current (Q4 2024)Trend
AI/Technology initiativesNamed Chief AI Officer; broad inHere adoption; investing in data/tech Continued tech investment and recruiting to drive revenue SoftPro integration, InHere platform; exploring generative AI; cloud-first data approach Increasing focus and deployment
Macro rates & housingHigher mortgage rates weighing on purchases; poised for upside when rates trend lower Limited impact from lower rates in Q3; prepared to capture upside Q4 purchase opened +6% YoY; refinance opened +46% YoY; January momentum despite ~7% mortgage rates Gradual improvement; pent-up demand
Commercial real estateQ2 national commercial revenue $145M; healthy pipeline Q3 commercial revenue $290M; double-digit national order growth from June Q4 commercial revenue $376M; optimism for 2025; watch office sector recovery, NY demand improving Strengthening, potential office tailwind
Regulatory/legal (NAR settlement)N/AN/ABusiness as usual; modest commission changes noted; increased interest in SkySlope compliance tooling Neutral-to-slight interest in compliance tools
Capital allocation$0.48 dividend; strong holdco cash $0.48 dividend; $822M holdco cash $0.50 dividend; $786M holdco cash; buybacks resuming Shareholder returns maintained/increasing
F&G strategic positioningRecord retail/inst. sales; AUM build Record AUM before flow reinsurance; retail surge Record AUM before flow reinsurance $65.3B; contribution 38% of FNF adj. net earnings; ratings/channel expansion benefits Continued asset growth and earnings mix shift

Management Commentary

  • “I am very proud of our financial results, including our industry leading 16.6% adjusted pre-tax Title margin for the fourth quarter of 2024… We continue to improve the efficiency of our operations while exploring further innovation with generative AI tools” — Mike Nolan, CEO .
  • “Adjusted net earnings were $366 million or $1.34 per diluted share… The Title segment contributed $263 million… F&G segment contributed $123 million” — Tony Park, CFO .
  • “F&G… record gross sales of $15.3 billion for the full year 2024… continue to execute… flow reinsurance and… owned distribution” — Chris Blunt, CEO F&G .
  • “Looking ahead, we expect to generate quarterly interest and investment income of $95–$100 million in 2025… and over $100 million of annual dividend income from F&G” — Tony Park, CFO .
  • “The Board met yesterday and decided to resume the share buyback… modestly” — Tony Park, CFO .

Q&A Highlights

  • Title activity momentum: January purchases flat YoY and refi +16% YoY despite rate backup; suggesting pent-up demand; share gains TBD .
  • Commercial sustainability: National pipeline strong; potential additive tailwind as office demand recovers (NY seeing pre-pandemic levels) .
  • Margin color by segment: Q4 direct ~23%, agency ~7.5%, national commercial ~34%, LoanCare ~23%; home warranty flat .
  • Operational resilience: Wildfire impact de minimis to Q1 closings; NAR settlement impact modest; brokers are more interested in SkySlope for compliance .
  • Capital allocation: Buybacks resuming; F&G capital optionality acknowledged; focus remains growing AUM and earnings; F&G ratings/channel expansion recognized .

Estimates Context

  • Wall Street consensus (S&P Global) revenue and EPS estimates for Q4 2024 were unavailable due to request limit constraints; therefore, we did not assess beats/misses nor provide estimate comparison tables.
  • Given the absence of estimates, investors should focus on margin and revenue trajectory: Title ex-gains revenue +23% YoY, fee per file +3% YoY, commercial +28% YoY; F&G adjusted net earnings $123M with record AUM before flow reinsurance, positioning for ongoing contribution to consolidated earnings .

Key Takeaways for Investors

  • Title’s operating leverage is showing: highest adjusted pre-tax margin in nine quarters, broad-based activity improvements, and fee-per-file uplift — a positive for margin durability into 2025 .
  • Commercial momentum and potential office recovery add upside optionality; watch national commercial orders and revenue trajectory in H1 2025 .
  • F&G is a growing earnings mix contributor (38% of FY24 adjusted net earnings) with record AUM before flow reinsurance; provides stability across rate cycles .
  • Shareholder returns are in focus: $0.50 dividend declared and buybacks resuming; strong holdco cash supports continued capital allocation .
  • Near-term trading: Title margin outperformance and January order momentum are key catalysts; monitor mortgage-rate path and any sequential inflection in opened orders .
  • Medium-term thesis: Operational efficiency (SoftPro, InHere, AI) and disciplined capital allocation underpin margin resilience; F&G’s capital-light initiatives and distribution strategy support earnings growth .
  • Risk watch: Alternative investment return variability at F&G, claims dynamics in Title, macro rate environment for housing transactions; maintain view on reserve adequacy and investment portfolio marks .