ad43ce3b29f0610dcaf3fc7550cbd02c5af76bc591f0fa24cc442d04e3aa10c8

The significant jump in cash and cash equivalents in Q2 2024 was primarily driven by a substantial increase in FNF’s cash and investment portfolio, which grew from **$58,816 million** as of December 31, 2023, to **$63,916 million** as of June 30, 2024.  **[20240805FL76533:6]**  Although the documents do not detail the exact cash flow breakdown, they indicate that robust revenue and earnings growth—including **total revenue of $3,158 million** and increased net earnings—record sales in the F&G segment (with a **47% sales increase**), and higher **interest and investment income** (rising from **$618 million** to **$783 million**) likely contributed to the jump in cash balances.  **[0001331875-24-000045_fnfpressreleaseq22024.htm:0]** **[20240805FL76533:0]** **[20240805FL76533:3]** **[20240805FL76533:6]** 

Why did cash and cash equivalents jump so much in Q2 2024?

The surge in total assets in Q3 2024 was driven by **three key factors**. First, there was significant **growth in the cash and investment portfolio**, which increased by **$9,141 million** compared to the previous period, reflecting strong sales, especially in the **F&G segment's retail annuities and life insurance products**.  **[20241106FL49584:7]** **[0001331875-24-000060_fnf-20240930.htm:57]**  Second, there was an **increase in goodwill** by **$442 million**, likely due to acquisitions or business combinations, such as the majority acquisition of PALH by F&G.  **[0001331875-24-000060_fnf-20240930.htm:28]**  Lastly, **record assets under management (AUM)** were achieved, reaching **$62.9 billion** before flow reinsurance, which was driven by robust sales, retained new business flows, and net debt and equity proceeds over the past twelve months.  **[20241106FL49584:0]** **[0001331875-24-000058_fnfpressreleaseq32024.htm:3]** 

What drove the surge in total assets in Q3 2024?

The spike in **derivative investments** in Q3 2024 was primarily driven by a significant increase in **equity options** and **interest rate swaps**. Specifically, the value of equity options rose from **$739 million** as of December 31, 2023, to **$1,293 million** as of September 30, 2024, contributing substantial net gains. Additionally, interest rate swaps increased from **$57 million** to **$108 million** during the same period due to fluctuations in the underlying interest rate index. These changes, coupled with a favorable market environment highlighted by a **6% annual point-to-point change in the S&P 500 Index**, collectively explain the overall surge in derivative investments in Q3 2024.  **[0001331875-24-000060_fnf-20240930.htm:2]** **[0001331875-24-000060_fnf-20240930.htm:49]** **[0001331875-24-000060_fnf-20240930.htm:104]** 

Why did derivative investments spike in Q3 2024?

The increase in accounts payable in Q3 2024 appears to be driven by several typical factors. The documents note that the significant rise—from **$3,009 million** to **$4,375 million**—was generally associated with **increased operational activity**, **timing differences** in payments, and **growth in liabilities related to specific product lines**. For instance, the **universal life product balance** increased from **$270 million** at the start of 2024 to **$366 million** as of September 30, 2024, which contributed to the overall increase in liabilities even though a detailed breakdown was not provided.  **[0001331875-24-000060_fnf-20240930.htm:62]** 

What contributed to the increase in accounts payable in Q3 2024?

The significant rise in **funds withheld for reinsurance liabilities** in Q3 2024 is primarily due to a combination of factors. There was a notable increase in **reinsurance activity**, with the reinsurance recoverable balance rising from **$8,977 million** to **$12,409 million**, indicating higher reinsurance agreements during the period.  **[0001331875-24-000060_fnf-20240930.htm:2]** **[0001331875-24-000060_fnf-20240930.htm:66]**  Additionally, the growth in **contractholder funds** from **$48,798 million** to **$55,468 million** reflects increased insurance liabilities that may have influenced the funds withheld. Finally, specific reinsurance agreements, such as those with **Aspida Life Re Ltd** and **Somerset Reinsurance Ltd** (with corresponding increases from **$6,128 million** to **$7,543 million** and **$716 million** to **$2,181 million**, respectively), directly contributed to the rise.  **[0001331875-24-000060_fnf-20240930.htm:66]** 

Why did funds withheld for reinsurance liabilities rise significantly in Q3 2024?

cf44c45cd19a00112746659be369a38136a16118ce2c9e83c90b668806fa1bfa

The plunge in Q4 2023 net earnings was driven by several factors. **The F&G segment incurred a much larger net loss (a loss of **$251 million** compared to previous periods) due to unfavorable mark-to-market movements on liabilities and investments**.  **[FNF_3374697_3]** **[0001331875-24-000016_fnfpressreleaseq42023.htm:13]**  Additionally, a **cybersecurity incident negatively affected the Title segment**, reducing adjusted pretax earnings and margins.  **[FNF_3374697_1]**  Moreover, **substantial market-related liability adjustments amounting to **$353 million** further strained pre-tax earnings**, compounded by **increased expenses in the Corporate segment and a decline in Title segment performance**.  **[FNF_3374697_3]** **[0001331875-24-000016_fnfpressreleaseq42023.htm:8]** 

Why did net earnings plunge in Q4 2023?

The documents do not provide specific quarterly details for Q4 2023. However, for 2023 overall, the sharp drop in earnings before income taxes was primarily attributed to **decreased revenues** (including lower direct and agency title premiums and escrow, title-related, and other fees) and **increased expenses** (notably a significant rise in benefits and other changes in policy reserves and higher depreciation and amortization costs). Additionally, **segment-specific factors** played a role, with the Title segment experiencing lower earnings due to reduced transaction volumes and the Corporate and Other segment reporting losses from higher operating costs.  **[0001331875-24-000019_fnf-20231231.htm:104]** **[0001331875-24-000019_fnf-20231231.htm:159]** **[0001331875-24-000019_fnf-20231231.htm:108]** **[0001331875-24-000019_fnf-20231231.htm:225]** **[0001331875-24-000019_fnf-20231231.htm:132]** 

What caused the sharp drop in earnings before income taxes in Q4 2023?

The **FY 2023 net earnings** were significantly lower compared to FY 2022 primarily due to a series of interrelated factors. **Title insurance premiums** fell sharply—with direct premiums dropping from **$2,858 million** to **$1,982 million** and agency premiums from **$3,976 million** to **$2,610 million**—due to lower transaction volumes amid higher mortgage rates. At the same time, **benefits and policy reserves** increased considerably (rising from **$1,126 million** to **$3,553 million**), thereby reducing net income. The company also experienced **recognized losses**, although these losses were smaller in FY 2023 compared to FY 2022, and **interest expenses** increased from **$115 million** to **$174 million**, further impacting profitability. Additionally, the **F&G segment's adjusted net earnings** declined, impacted by below-expectation alternative investment returns and significant expense items, all set against a backdrop of a challenging market environment marked by increased interest rates and subdued real estate activity.  **[0001331875-24-000019_fnf-20231231.htm:104]** **[0001331875-24-000016_fnfpressreleaseq42023.htm:0]** **[0001331875-24-000016_fnfpressreleaseq42023.htm:5]** 

Why were FY 2023 net earnings so low compared to FY 2022?

The rebound in **EPS** in Q1 2024 was driven by a combination of significantly improved net earnings and solid operational performance. **Net earnings improved** dramatically—with net earnings attributable to common shareholders reaching **$248 million** in Q1 2024 compared to a **net loss of $59 million** in Q1 2023—reflecting increased revenues that rose to **$3.3 billion** from **$2.5 billion** and a substantial reduction in **market-related liability adjustments** (from **$244 million** to **$(55) million**). Additionally, strong contributions from both the **Title Segment** (which increased its contribution from **$128 million** to **$172 million**) and the **F&G Segment** (which rebounded to **$98 million** from a **net loss of $164 million**) were key factors in driving the EPS recovery.  **[0001331875-24-000023_fnfpressreleaseq12024.htm:0]** **[0001331875-24-000029_fnf-20240331.htm:2]** **[20240508FL09021:8]** **[0001331875-24-000023_fnfpressreleaseq12024.htm:6]** 

What drove the rebound in EPS in Q1 2024?

The drop in basic EPS in Q3 2024 compared to Q3 2023 was primarily driven by **lower net earnings** and several compounding factors. Specifically, net earnings declined from **$426 million in Q3 2023** to **$266 million in Q3 2024**, largely due to unfavorable mark-to-market effects in the F&G segment (which shifted from generating net earnings to reporting a net loss) and a reduction in pre-tax earnings from **$603 million** to **$313 million**. Additionally, the F&G segment experienced negative market-related liability adjustments of **$145 million** in Q3 2024 versus a positive adjustment of **$237 million** in Q3 2023. Higher overall expenses—particularly a rise in benefits and other policy reserve changes from **$292 million** to **$1.10 billion**—and a slight dilution effect from an increase in weighted average shares outstanding (from **270 million** to **272 million**) further contributed to the decline in basic EPS.  **[0001331875-24-000058_fnfpressreleaseq32024.htm:0]** **[0001331875-24-000058_fnfpressreleaseq32024.htm:6]** **[20241106FL49584:6]** 

Why did basic EPS drop in Q3 2024 relative to Q3 2023?

fc696c4b1d76688aac519e6f9f7928019a9e4efd1d55df7a063fe6a42454966c

Goodwill (USD, millions)

Title plants (USD, millions)

Total assets (USD, millions)

Notes payable (USD, millions)

Reserve for title claim losses (USD, millions)

Secured trust deposits (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Non-controlling interests (USD, millions)

Total equity (USD, millions)

Total Fidelity National Financial, Inc. shareholders’ equity (USD, millions)

efba2fbb985835348b062bb50e4c3a6c17f7dfda1ab5879a6d03210106365b47

Direct title insurance premiums (USD, millions)

Agency title insurance premiums (USD, millions)

Escrow, title-related and other fees (USD, millions)

Interest and investment income (USD, millions)

Recognized gains and losses, net (USD, millions)

Total revenues (USD, millions)

Personnel costs (USD, millions)

Agent commissions (USD, millions)

Other operating expenses (USD, millions)

Benefits and other changes in policy reserves (USD, millions)

Market risk benefit losses (gains) (USD, millions)

Depreciation and amortization (USD, millions)

Provision for title claim losses (USD, millions)

Interest expense (USD, millions)

Total expenses (USD, millions)

Earnings before income taxes and equity in earnings of unconsolidated affiliates (USD, millions)

Income tax expense (USD, millions)

Equity in earnings of unconsolidated affiliates (USD, millions)

Less: Net earnings attributable to non-controlling interests (USD, millions)

Net earnings attributable to Fidelity National Financial, Inc. common shareholders (USD, millions)

Net earnings per share attributable to common shareholders, basic (USD)

Net earnings per share attributable to common shareholders, diluted (USD)

Weighted average common shares outstanding - basic (Millions)

Weighted average common shares outstanding - diluted (Millions)

f1e483b5dded3ea8fb838a99cf30fa95c79ba9fff9e28e8230ff77d876e604e4

Weighted-average duration of liability for future policyholder benefits for Traditional Life (years)

Weighted-average duration of liability for future policyholder benefits for Immediate Annuities (years)

Weighted-average duration of liability for future policyholder benefits for PRT (years)

Weighted-average DSC ratio for mortgage loans (times)

Weighted-average LTV ratio for mortgage loans (percentage)

Weighted-average crediting rate for Indexed Annuities (percentage)

Weighted-average crediting rate for Fixed Rate Annuities (percentage)

Weighted-average crediting rate for Universal Life (percentage)

Number of orders opened by direct title operations (thousands)

Number of orders closed by direct title operations (thousands)

Average fee per file in direct title operations (USD per file)

Average employee count in the Title segment (employees)

c63fb9f8791fa04fba848a6789635774ba4f8d2b084e878fb80806d635d9c57c

Current Assets (USD, millions)

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Inventory (USD, millions)

Non-Current Assets (USD, millions)

Property, Plant, and Equipment (PP&E) (USD, millions)

Intangible Assets (USD, millions)

Current Liabilities (USD, millions)

Accounts Payable (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Non-Current Liabilities (USD, millions)

Long-term Debt (USD, millions)

Lease Liabilities (USD, millions)

Deferred Tax Liabilities (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

5d6870fe104f1cea6702b9830c19673d1ebe1c380111d1eb2af45d6a753688b4

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

Depreciation and Amortization (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD)

EPS - Diluted (USD)

06b1b0e35c2beec26596ea81a8b7c7c02e6da2e4cb1da8221b278dcf9711c793

Title

- Direct Title Premiums

- Agency Title Premiums

- Escrow and Other Fees

- Interest and Investment Income

- Recognized Gains/Losses

- Life Insurance Premiums

- Other Revenue

Corporate and Other

- Escrow, Title Related, and Other Fees

Total Revenue

a8c19017a2f8042b97c968aeddbf2a2431e741a092fd9b1cb28a877da978acda

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

1312bcbbe2e4a951ddc3d8fce468276a3c659c56685334644bc34c2817069ada

Fidelity National Financial (FNF)

Financials