Fidelity National Financial 8K Results of Operations and Financial Condition | FNF 4 Aug 20

Exhibit 99.2

FGL Holdings (“F&G”) - An Operating Segment of Fidelity National Financial, Inc. (NYSE:FNF)

Financial Supplement

June 30, 2020

(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF and these financial statements and exhibits should be read in conjunction with FNF's periodic reports on Form 10-K, Form 10-Q and Form 8-K.

F&G (formerly NYSE:FG) was acquired by FNF (the "Business Combination") on June 1, 2020 ("Closing Date"). As a result of the Business Combination, F&G delisted from the NYSE and became a subsidiary of FNF. Our financial statement presentation includes the financial statements of F&G and its subsidiaries as a standalone entity ("Pre-Merger") for the periods prior to the completion of the Business Combination, and F&G and its subsidiaries as an operating segment of FNF ("Post-Merger") for periods from and after the Closing Date.

All dollar amounts are presented in millions.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures commonly used in our industry that, together with the relevant GAAP measures, may enhance a user’s ability to analyze F&G's operating segment performance for the periods presented. These measures should be considered supplementary to our segment financial results in accordance with GAAP and should not be viewed as a substitute for the GAAP measures and are not intended to replace GAAP financial results. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)


			Page
A . Financial Highlights
Consolidated Financial Highlights			3
Appendix to Consolidated Financial Highlights			4
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Operations			7
Reconciliation from Net Earnings (Loss) to Adjusted Earnings			8
Notable Items			8
Adjusted Earnings Statement			9
Reconciliation of Total Shareholders' Equity to Common Shareholders' Equity Excluding AOCI			10
Reconciliation of Return on Equity (ROE) to Adjusted ROE			10
Financial Strength Ratings			11
Total Product Net Investment Spread			12
FIA Net Investment Spread			13
B . Product Summary
Average Assets Under Management Rollforward			14
Annuity Account Balance Rollforward			14
Annuity Liability Characteristics			15
C . Investment Summary
Summary of Invested Assets by Asset Class			16
Credit Quality of Fixed Maturity Securities			17
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation			18
D . Counterparty Risk
Top 10 Holdings by Issuers			19
Top 5 Reinsurers			20
E. Non-GAAP Financial Measures Definitions			21

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Consolidated Financial Highlights



	One month ended			Two months ended			Three months ended
	June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
	Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Select Income Statement Data:



Net earnings (loss) attributable to common shareholders	(39)			19			(346)			217			58			38

Adjusted earnings (loss) attributable to common shareholders (1)	37			40			33			94			79			65



Select Metrics:
Return on average common shareholders' equity (1)	(16.2)		%	209.5		%	(118.7)		%	39.0		%	11.6		%	9.6		%

Adjusted return on common shareholders' equity, excluding AOCI (1)	16.3		%	10.9		%	8.1		%	21.8		%	19.7		%	16.6		%



Average Assets Under Management ("AAUM") (1)	26,582			29,285			28,924			28,332			27,871			27,388



Net investment spread (1)	3.50		%	1.92		%	2.24		%	2.41		%	2.05		%	2.26		%



Sales
FIA	244			622			831			795			590			767
Fixed rate annuities (MYGA)	14			33			114			126			107			263
Institutional spread based	—			—			100			—			100			92
Total annuity	258			655			1,045			921			797			1,122
Index universal life	4			8			11			11			9			10
Flow reinsurance	34			108			122			122			108			104
Total Sales	$	296		$	771		$	1,178		$	1,054		$	914		$	1,236
(1) Refer to "Non-GAAP Financial Measures Definitions"

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Appendix to Consolidated Financial Highlights

Effective June 1, 2020, certain blocks of business were designated as discontinued operations by FNF. Amounts related to these blocks of business are presented herein as adjustments to key financial metrics, solely for comparison between Pre-Merger and Post-Merger periods. See FNF 10Q for further discussion on discontinued operations.


	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Select Income Statement Data:
Net earnings (loss) attributable to common shareholders	(39)		19		(346)		217		58		38
Less: discontinued operations [(earnings)/loss]	(5)		(22)		155		(46)		(14)		13
As adjusted for discontinued operations	(44)		(3)		(191)		171		44		51

Adjusted Earnings attributable to common shareholders(1)	37		40		33		94		79		65
Less: discontinued operations [(earnings)/loss]	—		8		26		(4)		(18)		(5)
As adjusted for discontinued operations	37		48		59		90		61		60
Less: Notable items [(unfavorable)/favorable] (2)	8		5		(6)		15		2		(4)
As adjusted for discontinued operations and notable items	29		43		65		75		59		64

Select Metrics:

Adjusted return on common shareholders' equity, excluding AOCI (1)	16.3	%	10.9	%	8.1	%	21.8	%	19.7	%	16.6	%
Less: discontinued operations [(earnings)/loss]	—	%	5.7	%	10.4	%	5.3	%	(0.5)	%	1.6	%
As adjusted for discontinued operations	16.3	%	16.6	%	18.5	%	27.1	%	19.2	%	18.2	%

AAUM (1)	26,582		29,285		28,924		28,332		27,871		27,388
Less: discontinued operations [(earnings)/loss]	—		(2,236)		(2,266)		(2,183)		(2,040)		(1,869)
As adjusted for discontinued operations	26,582		27,049		26,658		26,149		25,831		25,519

Net investment spread (1)	3.50	%	1.92	%	2.24	%	2.41	%	2.05	%	2.26	%
Less: discontinued operations [(earnings)/loss]	—	%	(0.07)	%	(0.02)	%	0.03	%	0.04	%	0.09	%
As adjusted for discontinued operations	3.50	%	1.85	%	2.22	%	2.44	%	2.09	%	2.35	%
(1) Refer to "Non-GAAP Financial Measures Definitions"
(2) Noteable items from continuing operations. For full list of noteable items, refer to page 8 "Noteable Items"

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Condensed Consolidated Balance Sheets


	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $15 at June 30, 2020	23,014		21,140		23,726		23,907		23,362
Preferred securities, at fair value	875		873		1,001		1,027		1,084
Equity securities, at fair value	54		42		70		70		60
Derivative investments	333		188		587		454		383
Mortgage loans, net of allowance for credit losses of $28 at June 30, 2020	1,777		1,769		1,267		836		760
Investments in unconsolidated affiliates	1,045		1,071		1,013		923		878
Other long-term investments	404		421		289		155		153
Short-term investments	38		36		38		37		66
Total investments	27,540		25,540		27,991		27,409		26,746
Cash and cash equivalents	909		740		931		953		705
Trade and notes receivables	2		1		1		1		2
Funds withheld for reinsurance receivable, at fair value	—		2,050		2,172		2,045		1,922
Reinsurance recoverable, net of allowance for credit losses of $22 at June 30, 2020	3,182		3,186		3,213		3,250		3,264
Goodwill	1,725		467		467		467		467
Prepaid expenses and other assets	381		384		355		435		356
Lease assets	8		9		9		3		3
Other intangible assets, net	2,060		2,071		1,495		1,438		1,457
Property and equipment, net	2		2		2		1		1
Deferred tax asset	180		264		61		92		150
Assets of discontinued operations	2,502		—		—		—		—
Total assets	$	38,491	$	34,714	$	36,697	$	36,094	$	35,073

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)






Condensed Consolidated Balance Sheets (continued)
	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Liabilities and Shareholders' Equity
Contractholder funds	26,628		26,226		25,684		25,355		24,828
Future policy benefits	4,092		5,658		5,735		5,714		5,641
Accounts payable and accrued liabilities	1,800		1,828		1,998		1,926		1,824
Notes payable	589		543		542		542		542
Lease liabilities	13		9		9		3		3
Income taxes payable	(24)		(22)		(15)		(21)		(24)
Liabilities of discontinued operations	2,347		—		—		—		—

Total liabilities	35,445		34,242		33,953		33,519		32,814

Shareholders' equity:


Additional paid-in-capital	2,737		2,041		2,032		2,022		2,014
Retained earnings (accumulated deficit)	(39)		(72)		300		85		29
Accumulated other comprehensive income (loss)	348		(1,428)		481		520		251
Treasury stock	—		(69)		(69)		(52)		(35)
Total shareholders' equity	3,046		472		2,744		2,575		2,259
Total liabilities and shareholders' equity	$	38,491	$	34,714	$	36,697	$	36,094	$	35,073

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Condensed Consolidated Statements of Operations


	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues:
Life insurance premiums and other fees (a)	$	20	$	52	$	41	$	43	$	51	$	45

Interest and investment income	111		111		316		324		301		315
Realized gains and losses (net)	(7)		257		(692)		196		103		135

Total revenues	124		420		(335)		563		455		495
Benefits and expenses:
Benefits and other changes in policy reserves	155		356		(41)		119		331		268
Personnel costs	9		15		21		21		17		19
Other operating expenses	12		40		74		64		28		126
Depreciation and amortization	3		1		(60)		78		14		14
Interest expense	3		5		8		8		8		8
Total benefits and expenses	182		417		2		290		398		435

Pre-tax earnings (loss) from continuing operations	(58)		3		(337)		273		57		60
Federal income tax expense	14		17		(1)		(48)		9		(13)
State income tax expense	—		(1)		—		—		(1)		(1)

Net earnings (loss) from continuing operations	(44)		19		(338)		225		65		46
Earnings from discontinued operations, net of tax	5		—		—		—		—		—
Less Preferred stock dividend	—		—		(8)		(8)		(7)		(8)
Net earnings (loss) attributable to common shareholders	$	(39)	$	19	$	(346)	$	217	$	58	$	38

(a) Included within "Escrow, title-related and other fees" in FNF 10-Q

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Reconciliation from Net Earnings (Loss) to Adjusted Earnings (1)


	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net earnings (loss) from continuing operations	$	(44)	$	19	$	(338)	$	225	$	65	$	46
Less Preferred stock dividend	$	—	$	—	$	(8)	$	(8)	$	(7)	$	(8)
Net earnings (loss) attributable to common shareholders	$	(44)	$	19	$	(346)	$	217	$	58	$	38
Non-GAAP adjustments (1):
Realized (gains) and losses, net	52		68		94		(34)		(26)		(32)
Indexed product related derivatives	42		(28)		287		(134)		63		69

Purchase price amortization	2		—		—		—		—		—
Transaction costs	7		4		34		11		(6)		(3)

Income taxes on non-GAAP adjustments	(22)		(23)		(36)		34		(10)		(7)
Adjusted earnings attributable to common shareholders	$	37	$	40	$	33	$	94	$	79	$	65

Notable Items

Each quarterly reporting period, we identify notable items that help explain the trends in our Net earnings (loss) from continuing operations attributable to common shareholders and Adjusted earnings (loss) from continuing operations attributable to common shareholders as we believe these items provide further clarity to the financial performance of the business.


	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Adjusted earnings attributable to common shareholders (1)	$	37	$	40	$	33	$	94	$	79	$	65
Notable items [(unfavorable)/favorable]

Project expenses (a)	—		(2)		(2)		(10)		—		(11)
Single premium immediate annuities ("SPIA") mortality & other reserve adjustments (b)	4		6		(5)		15		(2)		3
Assumption review and unlocking (c)	—		(4)		—		4		7		—
Other (d)	4		5		(25)		15		15		4

(1) Refer to "Non-GAAP Financial Measures Definitions"

(a) Costs incurred during research and exploration of potential merger or acquisition of a business or a group of insurance policies via asset acquisition or (inforce) reinsurance agreement.

(b) The release of annuity reserves associated with mortality of annuitants, which varies due to timing, volume and severity of experience, and other reserve adjustments.

(c) Reflects unlocking from updating our DAC, VOBA, DSI and cost of reinsurance amortization models for actual experience and equity market fluctuations. Also, annually in the 3rd calendar quarter, we complete our Annual Assumption Review & Unlocking process by adjusting our valuation assumptions to align with actual experience.

(d) Bond prepayment income, changes in tax valuation, and other net activity.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Adjusted Earnings Statement (1)


	One month ended		Two Months Ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues:
Life insurance premiums and other fees (a)	20		42		53		44		49		48
Interest and investment income (b)	120		200		317		324		301		315
Realized gains and losses (net) (c)	4		22		(34)		23		5		11
Total revenues	144		264		336		391		355		374
Benefits and expenses:
Benefits and other changes in policy reserves (d)	60		131		161		151		175		93
Personnel costs	9		15		21		21		17		19
Other operating expenses (e)	4		37		41		53		35		130
Depreciation and amortization (f)	23		32		27		42		34		31
Interest expense	3		5		8		8		8		8
Total benefits and expenses	99		220		258		275		269		281

Pre-tax earnings (loss) from continuing operations	45		44		78		116		86		93
Federal Income Tax Expense	(8)		(5)		(37)		(14)		—		(20)
State Income Tax Expense	—		1		—		—		—		—

Adjusted earnings	$	37	$	40	$	41	$	102	$	86	$	73


Less Preferred stock dividend	$	—	$	—	$	(8)	$	(8)	$	(7)	$	(8)
Adjusted earnings attributable to common shareholders	$	37	$	40	$	33	$	94	$	79	$	65
Noteable items included in adjusted earnings attributable to common shareholders(2)	$	8	$	5	$	(32)	$	24	$	20	$	(4)

(1) Refer to "Non-GAAP Financial Measures Definitions"

(2) Refer to page 8 "Noteable Items" for further detail of noteable items.

(a) Life insurance premiums and other fees have been adjusted to remove the effect of cost of reinsurance.

(b) Interest and investment income has been adjusted to remove the market volatility on the alternative investment portfolio for periods after March 31, 2020.

(c) Realized gains and losses (net) have been adjusted to remove the effect of realized (gains) losses including changes in allowance for expected credit losses and OTTI; changes in fair values of indexed product related derivatives and embedded derivatives, net of hedging costs; and the change in fair value of the reinsurance related embedded derivative.

(d) Benefits and other changes in policy reserves has been adjusted to remove the effects of the changes in fair values of indexed product embedded derivatives, changes in allowance for expected credit losses on reinsurance recoverables, and the fair value impacts of assumed reinsurance.

(e) Other operating expenses have been adjusted to remove the effects of transaction costs.

(f) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, DSI and SOP03-1 of the adjustments above, as applicable, and purchase price amortization.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Reconciliation of Total Shareholders' Equity to Common Shareholders' Equity Excluding AOCI


	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Total shareholders' equity	3,046		472		2,743		2,575		2,260
Equity attributable to preferred shareholders (1)	—		446		438		430		422
Common shareholders' equity	3,046		26		2,305		2,145		1,838
AOCI	348		(1,428)		481		520		251
Total common shareholders' equity excluding AOCI (1)	$	2,698	$	1,454	$	1,824	$	1,625	$	1,587

Reconciliation of Return on Equity (ROE) to Adjusted ROE


	Twelve months ended
Reconciliation of the Twelve Month Rolling ROE to Adjusted ROE	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Return on average common shareholders' equity (1)	(16.2)	%	(2.2)	%	29.4	%	7.5	%	8.2	%
AOCI	(1.0)	%	0.1	%	0.3	%	(0.9)	%	(2.2)	%
Return on average common shareholders' equity, excluding AOCI (1)	(17.2)	%	(2.1)	%	29.7	%	6.6	%	6.0	%

Aggregate adjustments to arrive at adjusted earnings available to common shareholders (2)	33.5	%	18.9	%	(9.7)	%	12.7	%	12.3	%








Adjusted return on common shareholders' equity, excluding AOCI (1)	16.3	%	16.8	%	20.0	%	19.3	%	18.3	%

	Three months ended
Reconciliation of Quarterly ROE to Adjusted ROE	June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Return on average common shareholders' equity (1)	(16.2)	%	(118.7)	%	39.0	%	11.6	%	9.6	%
AOCI	(1.0)	%	34.3	%	11.3	%	2.8	%	0.1	%
Return on average common shareholders' equity, excluding AOCI (1)	(17.2)	%	(84.4)	%	50.3	%	14.4	%	9.7	%

Aggregate adjustments to arrive at adjusted earnings available to common shareholders (2)	33.5	%	92.6	%	(28.5)	%	5.3	%	6.9	%








Adjusted return on common shareholders' equity, excluding AOCI (1)	16.3	%	8.1	%	21.8	%	19.7	%	16.6	%

(1) Refer to "Non-GAAP Financial Measures Definitions"

(2) Refer to "Reconciliation from Net Earnings (Loss) to Adjusted earnings" for further details on individual adjustments

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Financial Strength Ratings

A.M. Best

S&P

Moody's

Fitch

Holding Company Ratings

FGL Holdings

Issuer Credit / Default Rating

Not Rated

BBB-

Ba2

BBB

Outlook

Stable

Negative

CF Bermuda Holdings Limited

Issuer Credit / Default Rating

Not Rated

BBB-

Ba1

BBB

Outlook

Stable

Negative

Fidelity & Guaranty Life Holdings, Inc.

Issuer Credit / Default Rating

bbb-

BBB-

Not Rated

BBB

Outlook

Stable

Negative

Senior Unsecured Notes

bbb-

BBB

Baa2

BBB

Outlook

Stable

Operating Subsidiary Ratings

Fidelity & Guaranty Life Insurance Company

Financial Strength Rating

A-

Baa1

A-

Outlook

Stable

Negative

Fidelity & Guaranty Life Insurance Company of New York

Financial Strength Rating

A-

Not Rated

A-

Outlook

Stable

Negative

F&G Reinsurance Ltd

Financial Strength Rating

A-

Not Rated

BBB

Outlook

Stable

Negative

F&G Life Re Ltd

Financial Strength Rating

Not Rated

A-

Baa1

BBB

Outlook

Stable

Negative

*Reflects current ratings and outlooks as of date of filing

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)


Total Product Net Investment Spread
	One month ended			Two months ended			Three months ended
	June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
	Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net investment income	$	111		$	111		$	317		$	324		$	301		$	315
AAUM (1)	26,582			29,285			28,924			28,332			27,871			27,388
Yield on AAUM (1)	5.01		%	2.27		%	4.38		%	4.57		%	4.32		%	4.60		%
Alternative investment yield adjustment (1)	0.41		%	1.83		%
Adjusted Yield on AAUM (1)	5.42		%	4.10		%

Interest credits	$	21		$	53		$	76		$	76		$	79		$	82
Option & futures costs	19			43			60			63			63			62
Total interest credited and option costs	$	40		$	96		$	136		$	139		$	142		$	144
Average account value	25,330			26,463			25,453			25,476			25,049			24,568
Interest credited & option cost	1.92		%	2.18		%	2.14		%	2.16		%	(2.27)		%	2.34		%
Net investment spread (1)	3.50		%	1.92		%	2.24		%	2.41		%	2.05		%	2.26		%

(1) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)


FIA Net Investment Spread
	One month ended			Two months ended			Three months ended
	June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019
	Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Pre-Merger
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net investment income	$	68		$	57		$	216		$	223		$	196		$	197
AAUM (1)	18,267			18,623			18,111			17,628			17,120			16,648
Yield on AAUM (1)	4.47		%	1.84		%	4.77		%	5.06		%	4.57		%	4.73		%
Alternative investment yield adjustment (1) (a)	0.59		%	2.67		%
Adjusted Yield on AAUM (1)	5.06		%	4.51		%

Interest credits	$	4		$	8		$	13		$	14		$	13		$	13
Option & futures costs	$	19		$	43		$	60		$	63		$	63		$	62
Total interest credited and option costs	23			51			73			77			76			75
Average account value	17,688			17,501			17,065			16,565			16,213			15,850
Interest credited & option cost	1.59		%	1.76		%	1.72		%	1.85		%	1.88		%	1.89		%
Net investment spread (1)	3.47		%	2.75		%	3.05		%	3.21		%	2.69		%	2.84		%

(1) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Average Assets Under Management Rollforward



	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
AAUM at beginning of period (1)	$	26,529	$	28,924	$	28,332	$	27,871	$	27,388	$	25,862
Net new business sales	66		473		600		494		484		492
Net reinsurance transactions and other	(13)		(112)		(8)		(33)		(1)		1,034
AAUM at end of period	$	26,582	$	29,285	$	28,924	$	28,332	$	27,871	$	27,388
(1) Beginning balance for June 30, 2020 represents assets under management at June 1, 2020 and reflects $2.3 billion decrease from the exclusion of discontinued operations and $0.5 billion decrease from purchase accounting mark-to-market effect as compared to the May 31, 2020 ending balance.

Annuity Account Balance Rollforward (a)


	One month ended		Two months ended		Three months ended
	June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019
	Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Pre-Merger
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Account balances at beginning of period	$	21,332	$	20,999	$	20,402	$	20,052	$	19,701	$	19,191
Net deposits	245		675		940		920		696		1,047
Surrenders, withdrawals, deaths, etc.	(161)		(381)		(452)		(675)		(420)		(436)
Net flows	84		294		488		245		276		611

Premium and interest bonuses	4		12		17		19		16		16
Fixed interest credited and index credits	29		50		123		118		86		95
Guaranteed product rider fees	(7)		(23)		(31)		(32)		(27)		(27)
Account balance at end of period	$	21,442	$	21,332	$	20,999	$	20,402	$	20,052	$	19,701

(a) The rollforward reflects the vested account balance of our fixed index annuities and fixed rate annuities, net of reinsurance.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Annuity Liability Characteristics


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	June 30, 2020
	(Unaudited)
SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	404	$	2,309
0.0% < 2.0%	15		50
2.0% < 4.0%	19		429
4.0% < 6.0%	483		1,569
6.0% < 8.0%	1,281		2,167
8.0% < 10.0%	1,500		4,177
10.0% or greater	3		7,035
	$	3,705	$	17,736


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	June 30, 2020
	(Unaudited)
CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	496	$	1,271
0.0% - 1.0%	194		1,420
1.0% - 2.0%	753		32
2.0% - 3.0%	2,262		2


Allocated to index strategies	—		15,011
	$	3,705	$	17,736

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Summary of Invested Assets by Asset Class


	June 30, 2020																December 31, 2019
	Post-Merger																Pre-Merger
	(Unaudited)																(Unaudited)
	Amortized Cost			Fair Value			Percent				Amortized Cost			Fair Value			Percent
Fixed maturity securities, available for sale:
United States Government full faith and credit	$	35		$	35		—	%			$	33		$	34		—	%
United States Government sponsored entities	122			123			—	%			133			134			—	%
United States municipalities, states and territories	1,321			1,361			5	%			1,284			1,343			5	%
Foreign Governments	150			155			1	%			138			155			1	%
Corporate securities:
Finance, insurance and real estate	4,081			4,184			15	%			4,038			4,234			15	%
Manufacturing, construction and mining	778			799			3	%			739			771			3	%
Utilities, energy and related sectors	2,320			2,375			9	%			2,345			2,452			9	%
Wholesale/retail trade	1,587			1,635			6	%			1,576			1,617			6	%
Services, media and other	2,366			2,436			9	%			2,353			2,523			9	%
Hybrid securities	970			975			4	%			983			1,027			4	%
Non-agency residential mortgage-backed securities	783			766			3	%			784			820			3	%
Commercial mortgage-backed securities	2,423			2,560			9	%			2,788			2,922			10	%
Asset-backed securities	1,685			1,717			6	%			1,774			1,813			6	%
CLO securities	3,816			3,893			14	%			3,946			3,881			14	%
Alternative investments	1,044			1,045			4	%			1,084			1,077			4	%
Equity securities	929			929			3	%			999			1,002			4	%
Commercial mortgage loans			576			583			2	%			422			435			2	%
Residential mortgage loans	1,201			1,177			4	%			845			848			3	%
Other (primarily derivatives and limited partnerships)	752			760			3	%			628			867			3	%
Short term investments			38			38			—	%			38			38			—	%
Total (a)	$	26,977		$	27,546		100	%			$	26,930		$	27,993		100	%
(a) Asset duration, including cash and cash equivalents, of 6.51 years and 6.63 years vs. liability duration of 6.79 years and 6.80 years for the periods ending June 30, 2020 and December 31, 2019, respectively.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Credit Quality of Fixed Maturity Securities


	June 30, 2020
	(Unaudited)
NAIC Designation	Fair Value		Percent
1	$	12,309	53	%
2	9,099		40	%
3	1,182		5	%
4	291		1	%
5	132		1	%
6	1		—	%
	$	23,014	100	%


	June 30, 2020
	(Unaudited)
Rating Agency Rating	Fair Value		Percent
AAA	$	531	2	%
AA	1,528		7	%
A	6,398		28	%
BBB	8,280		36	%
Not rated	4,234		18	%
Total investment grade	20,971		91	%
BB	1,471		7	%
B and below	491		2	%
Not rated	81		—	%
Total below investment grade	2,043		9	%
	$	23,014	100	%

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation


	June 30, 2020
	(Unaudited)
Total by collateral type	Amortized Cost		Fair Value













Government agency	$	114	$	113
Prime	588		574
Subprime	81		79
Alt-A	122		123


	$	905	$	889

	June 30, 2020
	(Unaudited)
Total by NAIC designation	Amortized Cost		Fair Value
1	$	855	$	839
2	39		39
3	1		1
4	10		10
5	—		—

	$	905	$	889

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Top 10 Holdings by Issuers


	June 30, 2020
	(Unaudited)
Issuer (a):	Fair Value		Percentage of Total Invested Assets
HP Enterprise Co	$	132	0.5	%
HSBC Holdings	132		0.5	%
Prudential Financial Inc	115		0.4	%
Metropolitan Transportation Authority (NY)	113		0.4	%
Verizon Communications Inc.	113		0.4	%
AT&T Inc.	111		0.4	%
Blackstone Div Alt Issuer	107		0.4	%
CVI CVF III Master Fund II LL	106		0.4	%
Nationwide Mutual Insurance Company	105		0.4	%
Entergy Corp	105		0.4	%

(a) Issuers excluding U.S. Governmental securities.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Top 5 Reinsurers

June 30, 2020

(Unaudited)

Financial Strength Rating

Parent Company/Principal Reinsurers

Reinsurance Recoverable (a)

AM Best

S&P

Fitch

Moody's

Wilton Re

1,478

A+

Not Rated

A+

Not Rated

Kubera Insurance (SAC) Ltd

828

Not Rated

Security Life of Denver

153

Not Rated

A+

Hannover Re

130

A+

AA-

Not Rated

London Life

126

A+

Not Rated

(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Non-GAAP Financial Measures Definitions

The following represents the definitions of non-GAAP measures used by F&G, as an operating segment of FNF:

Adjusted Earnings

Adjusted Earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted earnings is calculated by adjusting net earnings (loss) from continuing operations to eliminate:

(i) Realized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; the impact of market volatility on the alternative asset portfolio; and the effect of changes in fair value of the reinsurance related embedded derivative;

(ii) Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost, and the fair value accounting impact of assumed reinsurance,

(iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (VODA)) recognized as a result of acquisition activities, and

(iv) Transaction costs: the impacts related to acquisition, integration and merger related items.

Adjustments to Adjusted Earnings are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations.

Effective April 1, 2020, F&G changed their definition of Adjusted Earnings to exclude the impact of market volatility on the alternative asset portfolio. Alternative investment valuations and GAAP net income can reflect significant non-cash impacts of market and economic conditions that are not indicative of expected returns over the life of the investments. Management invests in alternative investments to back future policyholder obligations consistent with its asset liability management strategy. Management evaluates the performance of the alternative investments and calculates Adjusted Earnings using a rate of return that is consistent with its investment strategy and indicative of expected returns. Management believes this change provides users of the financial statements and other financial communications a more representative view of the results of the core business of F&G for the periods after April 1, 2020. Previous periods have not been adjusted.

Adjusted Earnings Attributable to Common Shareholders

Adjusted Earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted Earnings attributable to common shareholders is calculated by adjusting net earnings (loss) available to common shareholders to eliminate the same items as described in the Adjusted Earnings paragraph above. While these adjustments are an integral part of the overall performance of the Company, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, Management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations.

Common Shareholders’ Equity

Common Shareholders’ Equity is based on Total Shareholders’ Equity excluding Equity Available to Preferred Shareholders. Management considers this to be a useful measure internally and to investors to assess the level of equity that is attributable common stock holders.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Common Shareholders’ Equity Excluding AOCI

Common Shareholders’ Equity Excluding AOCI is based on Common Shareholders' Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on common equity.

Equity Attributable to Preferred Shareholders

Equity attributable to preferred shareholders is equal to the product of (a) the number of preferred shares outstanding plus share dividends declared but not yet issued and (b) the original liquidation preference amount per share. Management considers this non-GAAP measure to provide useful information internally and to investors and analysts to assess the level of equity that is attributable to preferred stock holders. (Note: F&G no longer has any preferred shareholders following the Business Combination)

Return on Average Common Shareholders’ Equity

Return on Average Common Shareholders' Equity is calculated by dividing net earnings (loss) attributable to common shareholders by total average Common Shareholders’ Equity. Average Common Shareholders Equity for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders’ Equity for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available.

Return on Average Common Shareholders Equity Excluding AOCI

Return on Average Common Shareholders' Equity Excluding AOCI is calculated by dividing net earnings (loss) attributable to common shareholders by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity Excluding AOCI is calculated using the beginning and ending Common Shareholders’ Equity, excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is attributable to common shareholders.

Adjusted Return on Average Common Shareholders’ Equity Excluding AOCI

Adjusted Return on Common Shareholders’ Equity Excluding AOCI is calculated by dividing Adjusted Earnings Attributable to Common Shareholders’ by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders’ Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders Equity, Excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of adjusted earned return on common equity.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2020

(All periods are unaudited)

Average Assets Under Management (AAUM)

AAUM is calculated as the sum of:

(i) total invested assets at amortized cost, excluding derivatives;

(ii) related party loans and investments;

(iii) accrued investment income;

(iv) funds withheld at fair value;

(v) the net payable/receivable for the purchase/sale of investments, and

(iv) cash and cash equivalents, excluding derivative collateral, at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.

Yield on AAUM

Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Alternative Investment Yield Adjustment

Alternative investment yield adjustment is the current period yield impact of market volatility on the alternative investment portfolio. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Adjusted Yield on AAUM

Adjusted Yield on AAUM is calculated by dividing annualized net investment income by AAUM, plus or minus the alternative investment yield adjustment. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Net Investment Spread

Net investment spread is the excess of net investment income, adjusted for market volatility on the alternative asset investment portfolio, earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return provided to policyholders, inclusive of hedging costs.

Fidelity National Financial (FNF) 8-KResults of Operations and Financial Condition