Fidelity National Financial (FNF) Q3 2024 earnings summary

Executive summary

• Reported strong Q3 2024 results with adjusted net earnings of $356M ($1.30/share), up from $333M ($1.23/share) year-over-year, while GAAP net earnings fell to $266M ($0.97/share) from $426M ($1.57/share) due to mark-to-market and non-recurring items.

• Title segment delivered $2.1B in revenue (up 12%), adjusted pre-tax earnings of $323M, and a 15.9% adjusted pre-tax margin; direct and agency premiums both up 9% and 8% respectively.

• F&G segment achieved record assets under management of $62.9B (up 20%), gross sales of $3.9B (up 39%), and contributed 39% of adjusted net earnings for the first nine months of 2024.

• Net earnings for Q3 2024 were $266M, including $269M in net recognized gains; nine-month net earnings were $883M, up from $632M year-over-year.

• Board approved a new three-year, 25M share repurchase program and declared a $0.50/share dividend payable December 31, 2024.

Financial highlights

• Q3 2024 total revenue was $3.60B, up from $2.78B in Q3 2023; nine months: $10.06B, up from $8.32B year-over-year.

• Adjusted net earnings per share were $1.30, up from $1.23 year-over-year; GAAP EPS was $0.97, down from $1.57.

• Title segment revenue reached $2.1B, with direct premiums up 9% and agency premiums up 8% year-over-year.

• F&G gross sales were $3.9B, up 39% year-over-year; retail sales nearly doubled to $3.5B.

• Cash and cash equivalents at September 30, 2024: $4.97B, up from $2.77B at year-end 2023.

Outlook and guidance

• Expect normal seasonal purchase falloff for the remainder of 2024 if mortgage rates remain stable; poised to benefit from higher volumes if rates decline in 2025.

• MBA forecasts U.S. mortgage originations to increase in 2024–2026, with purchase transactions expected to rise in 2025–2026.

• F&G expects continued growth in AUM and margin expansion, even in a lower rate environment, supported by demographic trends.

• Interest and investment income expected to trend down with anticipated Fed rate cuts; every 25 bps decrease in Fed funds rate reduces annualized investment income by ~$15M.

• Company expects to maintain strong operating margins and is positioned to adjust to real estate market fluctuations.