Fidelity National Financial Inc (FNF) Q3 2025 Earnings Call Highlights: Record Commercial ...

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Adjusted Pretax Title Earnings: $410 million, a 27% increase over the third quarter of 2024. Adjusted Pretax Title Margin: 17.8%, up 190 basis points from 15.9% in the third quarter of 2024. Total Revenue: $4 billion in the third quarter; $3.9 billion excluding net recognized gains and losses. Net Earnings: $358 million, including net recognized gains of $176 million. Adjusted Net Earnings: $439 million or $1.63 per diluted share. Title Segment Revenue: $2.3 billion, excluding net recognized losses of $38 million. Direct Commercial Revenue: Over $1 billion in the first nine months of 2025, up 27% over the same period in 2024. F&G Assets Under Management: Over $70 billion, up 14% over the prior year quarter. F&G Adjusted Net Earnings: $139 million in the third quarter. Share Repurchases: 631,000 shares for $37.5 million at an average price of $59.37 per share in the third quarter. Cash and Short-term Liquid Investments: $733 million at the end of the third quarter, up 26% from the second quarter.

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Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Fidelity National Financial Inc (NYSE:FNF) delivered strong third quarter results with a 27% increase in adjusted pretax title earnings compared to the third quarter of 2024. The Title segment achieved a 17.8% adjusted pretax title margin, up from 15.9% in the prior year quarter. Commercial revenue increased by 34% over the third quarter of 2024, marking the best third quarter in the company's history. FNF's technology initiatives, including the Inhere digital transaction platform, engaged 85% of residential sales transactions, enhancing customer experience and security. F&G's assets under management crossed the $70 billion milestone, showing a 14% increase over the prior year quarter.

Negative Points

The Title business is operating in a low transactional environment, which poses challenges despite strong performance. There is a decline in daily purchase orders, with an 8% sequential decrease observed in the third quarter. Refinance volumes are highly sensitive to mortgage rate changes, indicating potential volatility in future performance. The office sector remains subdued, contributing minimally to commercial activity, although there are signs of improvement. FNF's decision to distribute 12% of F&G's shares as a taxable dividend limits future tax-free distribution options.

Story Continues

Q & A Highlights

Q: Could you have spun the entire F&G stake tax-free, and does the 12% distribution affect future tax-free options? A: Yes, we could have spun the entire company tax-free, but by distributing 12%, we lose that option. However, other distribution options remain available. The decision was to increase F&G's public float and liquidity while maintaining majority ownership, reflecting confidence in F&G's future performance. - Anthony Park, CFO

Q: Given the strong commercial performance, could 2026 match the peak years of 2021 and 2022? A: Yes, it's possible. We had the best third quarter in our history, with consistent growth in commercial orders. The strength across asset classes and potential improvement in the office sector could lead to a strong 2026. - Michael Nolan, CEO

Q: What are the future options for F&G, and does FNF intend to hold the asset long-term? A: We like F&G and see continued growth potential. While other options are always on the table, the current plan is to maintain ownership and increase F&G's market presence. The distribution is a strategic move to unlock shareholder value. - Michael Nolan, CEO

Q: How did the title margin of 17.8% this quarter compare to expectations, and what factors influenced it? A: The margin was strong due to growth across multiple business segments and disciplined expense management. While there were some one-time items, the overall performance was driven by improved margins in commercial and refinance segments. Future margins will depend on market conditions and business mix. - Anthony Park, CFO

Q: How significant is the office sector to commercial business, and what impact could its recovery have? A: Historically, the office sector was a major contributor, especially in key markets. Any recovery in this sector would be additive to our commercial business, which already benefits from strong performance in other asset classes. - Michael Nolan, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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