Fidelity National Financial 8K Results of Operations and Financial Condition | FNF 2 Nov 21

Exhibit 99.2

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

Financial Supplement

September 30, 2021

(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF (the Company) and these financial statements and exhibits should be read in conjunction with the Company'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.

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 the Company's operating performance and capital position for the periods presented. These measures should be considered supplementary to our 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. Refer to the non-GAAP measures reconciliations and definitions within for further information.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)


			Page
A . Financial Highlights
Consolidated Financial Highlights			3
Sales Results by Product			3
Condensed Consolidated Balance Sheets			4
Reconciliation of Total Shareholders' Equity to Total Shareholders' Equity Excluding AOCI			5
Condensed Consolidated Statements of Operations			6
Reconciliation from Net Earnings (Loss) to Adjusted Net Earnings			7
Notable Items			7
Adjusted Net Earnings Statement			8
Financial Strength Ratings			9
Total Product Net Investment Spread			10
FIA Net Investment Spread			11
B . Product Summary
Average Assets Under Management Rollforward			12
Annuity Account Balance Rollforward			12
Annuity Liability Characteristics			13
C . Investment Summary
Summary of Invested Assets by Asset Class			14
Credit Quality of Fixed Maturity Securities			15
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation			16
D . Counterparty Risk

Top 5 Reinsurers			16
E. Non-GAAP Financial Measures Definitions			17

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Consolidated Financial Highlights



	Three months ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021



Select Income Statement Data:



Net earnings (loss) attributable to common shareholders	373		82		289		137		38		744

Adjusted net earnings from continuing operations attributable to common shareholders (1)	101		92		78		128		74		271



Select Metrics:






Average Assets Under Management ("AAUM") (1)	32,692		30,423		29,016		27,864		26,990		30,706



Net investment spread (1)	2.85	%	2.95	%	2.55	%	2.55	%	2.62	%	2.78	%

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

Sales Results by Product

The table below provides a summary of sales, which are not affected by the June 1, 2020 Business Combination, and are comparable to prior period data.



	Three months ended											Nine months ended		Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020			September 30, 2021		September 30, 2020

Sales
Fixed indexed annuities (FIA)	1,073		1,135		1,047		947		815			3,255		2,512
Fixed rate annuities (MYGA)	458		512		467		362		253			1,437		414
Total annuity	1,531		1,647		1,514		1,309		1,068			4,692		2,926
Index universal life (IUL)	24		20		15		13		14			59		37
Funding agreements (FABN/FHLB)	1,150		1,000		125		100		—			2,275		100
Pension risk transfer (PRT)	371		—		—		—		—			371		—
Flow reinsurance	—		—		—		37		51		—	—		315
Total Sales	$	3,076	$	2,667	$	1,654	$	1,459	$	1,133		$	7,397	$	3,378

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Condensed Consolidated Balance Sheets


	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020


Assets
Investments:
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $7 at September 30, 2021	$	28,550	$	27,616	$	25,768	$	25,499	$	24,218
Preferred securities, at fair value	870		882		908		965		917
Equity securities, at fair value	156		176		141		82		54
Derivative investments	581		691		542		548		381
Mortgage loans, net of allowance for credit losses of $33 at September 30, 2021	3,484		2,794		2,374		2,031		1,614
Investments in unconsolidated affiliates (a)	2,022		1,667		1,281		1,156		1,125
Other long-term investments	454		448		447		449		438
Short-term investments	258		356		72		456		34
Total investments	$	36,375	$	34,630	$	31,533	$	31,186	$	28,781
Cash and cash equivalents	2,320		1,016		995		889		1,014
Trade and notes receivables	11		11		11		10		2

Reinsurance recoverable, net of allowance for credit losses of $19 at September 30, 2021 (a)	3,492		3,297		3,404		3,174		3,152

Goodwill (a)	1,756		1,756		1,751		1,751		1,731
Prepaid expenses and other assets	662		415		470		413		448
Lease assets	8		8		8		8		7
Other intangible assets, net (a)	2,086		2,060		2,061		1,918		1,956
Property and equipment, net	13		13		13		11		7
Income taxes receivable	—		—		—		15		19
Deferred tax asset (a)	—		51		130		44		107
Assets of discontinued operations	—		—		311		327		2,618
Total assets	$	46,723	$	43,257	$	40,687	$	39,746	$	39,842
(a) These line items included adjustments that were recorded during the remeasurement period subsequent to the June 1, 2020 acquisition. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending September 30, 2020: Investment in unconsolidated affiliates, $31, Goodwill, $6, Other intangible assets, net, ($37), and Deferred tax asset, $3. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending December 31, 2020: Goodwill, $20, Other intangible assets, net, ($56), Reinsurance recoverable, $47, and Deferred tax asset, $10. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending June 30, 2021: Reinsurance recoverable, ($289), Goodwill, $5, Other intangible assets, net, $61, and Deferred tax asset, $1.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)


Condensed Consolidated Balance Sheets (continued)
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020


Liabilities and Shareholders' Equity
Contractholder funds (a)	$	33,988	$	32,166	$	29,592	$	28,718	$	27,488
Future policy benefits (a)	3,985		3,670		3,959		4,010		4,048
Accounts payable and accrued liabilities (a)	1,670		1,276		1,368		1,174		1,056
Income taxes payable	3		17		5		—		—
Deferred tax liability	9		—		—		—		—
Notes payable	979		589		589		589		589
Funds withheld for reinsurance liabilities	1,508		1,271		1,026		806		814
Lease liabilities	14		14		14		14		12
Liabilities of discontinued operations	—		—		339		361		2,462
Total liabilities	$	42,156	$	39,003	$	36,892	$	35,672	$	36,469

Shareholders' equity:


Additional paid-in-capital	2,748		2,746		2,744		2,741		2,739
Retained earnings (accumulated deficit)	880		507		425		136		(1)
Accumulated other comprehensive income (loss) ("AOCI")	939		1,001		626		1,197		635

Total shareholders' equity	$	4,567	$	4,254	$	3,795	$	4,074	$	3,373
Total liabilities and shareholders' equity	$	46,723	$	43,257	$	40,687	$	39,746	$	39,842

(a) Contractholder funds included a $3 adjustment that was recorded as of the opening balance sheet at June 1, 2020 during the quarter ending September 30, 2020; Contractholder funds, Future policy benefits, and Accounts payable and accrued liabilities included ($5), ($7), and $33 adjustments as of the opening balance sheet at June 1, 2020, respectively, during the quarter ending December 31, 2020; Additionally, Future policy benefits and Accounts payable and accrued liabilities included ($228) and $6 adjustments as of the opening balance sheet at June 1, 2020, respectively, during the quarter ending June 30, 2021

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


	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020


Total shareholders' equity	$	4,567	$	4,254	$	3,795	$	4,074	$	3,373


AOCI	939		1,001		626		1,197		635
Total shareholders' equity excluding AOCI (1)	$	3,628	$	3,253	$	3,169	$	2,877	$	2,738
(1) Refer to "Non-GAAP Financial Measures Definitions"

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Condensed Consolidated Statements of Operations


	Three months ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


Revenues:
Life insurance premiums and other fees (a)	$	431	$	62	$	64	$	58	$	60	$	557

Interest and investment income	481		487		373		327		305		1,341
Recognized gains and losses, net	15		253		102		282		77		370

Total revenues	927		802		539		667		442		2,268
Benefits and expenses:
Benefits and other changes in policy reserves	185		575		(26)		460		251		734
Personnel costs	32		32		29		33		23		93
Other operating expenses	22		26		28		30		33		76
Depreciation and amortization	210		65		144		64		56		419
Interest expense	6		7		8		8		7		21
Total benefits and expenses	455		705		183		595		370		1,343

Pre-tax earnings (loss) from continuing operations	472		97		356		72		72		925
Income tax expense	(96)		(21)		(72)		67		(6)		(189)


Net earnings (loss) from continuing operations	376		76		284		139		66		736
Earnings from discontinued operations, net of tax	(3)		6		5		(2)		(28)		8

Net earnings (loss) attributable to common shareholders	$	373	$	82	$	289	$	137	$	38	$	744

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

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

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


	Three Months Ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


Net earnings (loss) from continuing operations	$	376	$	76	$	284	$	139	$	66	$	736


Non-GAAP adjustments (1):
Recognized (gains) and losses, net	(98)		(63)		(82)		(76)		(15)		(243)
Indexed product related derivatives	26		75		(185)		54		14		(84)

Purchase price amortization	7		6		7		7		7		20
Transaction costs	1		2		2		4		10		5
Other non-recurring items (2)	(284)		—		—		—		—		(284)

Income taxes on non-GAAP adjustments	73		(4)		52		—		(8)		121
Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	101	$	92	$	78	$	128	$	74	$	271

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 net earnings (loss) from continuing operations attributable to common shareholders as we believe these items provide further clarity to the financial performance of the business.


	Three Months Ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	101	$	92	$	78	$	128	$	74	$	271
Notable items [(unfavorable)/favorable]


Single premium immediate annuities ("SPIA") mortality & other reserve adjustments (a)	7		3		7		—		10		17
Assumption review and unlocking (b)	—		8		—		—		—		8
Other notable items (c)	20		11		5		68		—		36

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

(2) Reflects adjustments to benefits and other changes in policy reserves and depreciation and amortization resulting from the implementation of a new actuarial valuation system.

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

(b) Reflects unlocking from updating our DAC, VOBA, DSI and cost of reinsurance amortization models for actual experience and equity market fluctuations.

(c) 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, income from bond prepayment and CLO redemptions, changes in tax valuation and other net activity.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Adjusted Net Earnings Statement (1)


	Three Months Ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


Revenues:
Life insurance premiums and other fees (a)	$	430	$	62	$	64	$	61	$	60	$	556
Interest and investment income (b)	381		377		333		315		314		1,091
Recognized gains and losses, net (c)	—		—		—		—		(1)		—
Total revenues	811		439		397		376		373		1,647
Benefits and expenses:
Benefits and other changes in policy reserves (d)	577		214		188		202		177		979
Personnel costs	32		32		29		33		23		93
Other operating expenses (e)	22		24		26		25		23		72
Depreciation and amortization (f)	49		46		48		46		56		143
Interest expense	6		7		8		8		7		21
Total benefits and expenses	686		323		299		314		286		1,308

Pre-tax earnings (loss) from continuing operations	125		116		98		62		87		339
Income tax expense	(24)		(24)		(20)		66		(13)		(68)






Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	101	$	92	$	78	$	128	$	74	$	271
Notable items included in adjusted net earnings attributable to common shareholders (2)	$	27	$	22	$	12	$	68	$	10	$	61

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

(2) Refer to page 7 "Notable Items" for further detail of notable items.

(a) Life insurance premiums and other fees are included within "Escrow, title-related and other fees" in FNF 10-K/ 10-Q, and have been adjusted here 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.

(c) Recognized gains and losses (net) have been adjusted to remove the effect of recognized (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, the fair value impacts of assumed reinsurance, those resulting from the implementation of a new actuarial system at September 30, 2021, and changes in the SOP 03-1 reserve resulting from the adjustments above, as applicable.

(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, and DSI of the adjustments above, as applicable, purchase price amortization and those resulting from the implementation of a new actuarial valuation system at September 30, 2021.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Financial Strength Ratings

A.M. Best

S&P

Fitch

Moody's

Holding Company Ratings

F&G Annuities & Life, Inc. (formerly known as FGL Holdings)

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba2

Outlook

Stable

CF Bermuda Holdings Limited

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba1

Outlook

Stable

Fidelity & Guaranty Life Holdings, Inc.

Issuer Credit / Default Rating

bbb-

BBB-

BBB

Not Rated

Outlook

Stable

Senior Unsecured Notes

bbb-

BBB

Baa2

Outlook

Stable

Operating Subsidiary Ratings

Fidelity & Guaranty Life Insurance Company

Financial Strength Rating

A-

Baa1

Outlook

Stable

Fidelity & Guaranty Life Insurance Company of New York

Financial Strength Rating

A-

Not Rated

Outlook

Stable

F&G Life Re Ltd

Financial Strength Rating

Not Rated

A-

Baa1

Outlook

Stable

F&G Cayman Re Ltd

Financial Strength Rating

Not Rated

A-

Not Rated

Outlook

Stable

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)


Total Product Net Investment Spread
	Three Months Ended															Nine months ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021


Net investment income	$	481		$	487		$	373		$	327		$	305		$	1,341
AAUM (1)	32,692			30,423			29,016			27,864			26,990			30,706
Yield on AAUM (1)	5.89		%	6.40		%	5.15		%	4.69		%	4.52		%	5.82		%
Alternative investment yield adjustment (1)	(1.23)		%	(1.43)		%	(0.56)		%	(0.17)		%	0.13		%	(1.09)		%
Adjusted Yield on AAUM (1)	4.66		%	4.97		%	4.59		%	4.52		%	4.65		%	4.73		%

Interest credits	$	63		$	73		$	74		$	67		$	67		$	210
Option & futures costs	75			70			65			63			64			210
Total interest credited and option costs	$	138		$	143		$	139		$	130		$	131		$	420
Average account value	30,469			28,273			27,252			26,450			25,688			28,766
Interest credited & option cost	1.81		%	2.02		%	2.04		%	1.97		%	2.03		%	1.95		%
Net investment spread (1)	2.85		%	2.95		%	2.55		%	2.55		%	2.62		%	2.78		%
(1) Refer to "Non-GAAP Financial Measures Definitions" for further details.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)


FIA Net Investment Spread
	Three Months Ended															Nine months ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			September 30, 2021


Net investment income (1)	$	368		$	377		$	276		$	235		$	215		$	1,021
AAUM (2)	22,146			20,896			20,217			19,097			18,312			21,097
Yield on AAUM (1) (2)	6.65		%	7.22		%	5.46		%	4.92		%	4.70		%	6.45		%
Alternative investment yield adjustment (2)	(1.81)		%	(2.20)		%	(0.81)		%	(0.25)		%	0.20		%	(1.62)		%
Adjusted Yield on AAUM (1) (2)	4.84		%	5.02		%	4.65		%	4.67		%	4.90		%	4.83		%

Interest credits	$	2		$	13		$	15		$	13		$	14		$	30
Option & futures costs	75			70			65			63			64			210
Total interest credited and option costs	$	77		$	83		$	80		$	76		$	78		$	240
Average account value	20,680			19,842			19,028			18,442			17,948			19,856
Interest credited & option cost	1.49		%	1.67		%	1.67		%	1.65		%	1.73		%	1.61		%
Net investment spread (1) (2)	3.35		%	3.35		%	2.98		%	3.02		%	3.17		%	3.22		%

(1) In December 2020, we restated prior period FIA net investment spread to reflect immaterial updates to FIA net investment income amounts. There was no impact to total product net investment spread amounts.

(2) Refer to "Non-GAAP Financial Measures Definitions" for further details.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Average Assets Under Management Rollforward



	Three Months Ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


AAUM at beginning of period (1)	$	30,423	$	29,016	$	27,864	$	26,990	$	26,582	$	27,322
Net new business sales	2,524		1,668		1,197		874		408		3,764

Net reinsurance transactions and other	(255)		(261)		(45)		—		—		(380)
AAUM at end of period	$	32,692	$	30,423	$	29,016	$	27,864	$	26,990	$	30,706

Annuity Account Balance Rollforward (a)


	Three Months Ended										Nine months ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		September 30, 2021


Account balances at beginning of period:	$	24,774	$	23,803	$	22,992	$	22,106	$	21,442	$	22,992
Net deposits	1,311		1,390		1,265		1,305		1,046		3,966
Surrenders, withdrawals, deaths, etc.	(625)		(628)		(585)		(533)		(482)		(1,838)
Net flows	686		762		680		772		564		2,128

Premium and interest bonuses	20		21		18		20		17		59
Fixed interest credited and index credits	217		225		148		131		114		590
Guaranteed product rider fees	(35)		(37)		(35)		(37)		(31)		(107)
Account balance at end of period	$	25,662	$	24,774	$	23,803	$	22,992	$	22,106	$	25,662

(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 - September 30, 2021

(All periods are unaudited)

Annuity Liability Characteristics


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	September 30, 2021

SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	341	$	2,478
0.0% < 2.0%	8		112
2.0% < 4.0%	41		711
4.0% < 6.0%	612		1,640
6.0% < 8.0%	1,765		3,364
8.0% < 10.0%	1,799		7,464
10.0% or greater	—		5,326
	$	4,566	$	21,095


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	September 30, 2021

CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	487	$	1,376
0.0% - 1.0%	650		1,253
1.0% - 2.0%	1,528		8
2.0% - 3.0%	1,901		—


Allocated to index strategies	—		18,458
	$	4,566	$	21,095

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Summary of Invested Assets by Asset Class


	September 30, 2021						December 31, 2020


	Amortized Cost		Fair Value		Percent		Amortized Cost		Fair Value		Percent
Fixed maturity securities, available for sale:
United States Government full faith and credit	$	479	$	472	1	%	$	45	$	45	—	%
United States Government sponsored entities	83		85		—	%	105		106		—	%
United States municipalities, states and territories	1,241		1,301		4	%	1,243		1,309		4	%
Foreign Governments	132		137		1	%	128		140		—	%
Corporate securities:
Finance, insurance and real estate	4,509		4,758		13	%	4,267		4,572		15	%
Manufacturing, construction and mining	856		920		3	%	839		936		3	%
Utilities, energy and related sectors	2,636		2,764		9	%	2,532		2,762		9	%
Wholesale/retail trade	2,226		2,345		6	%	1,900		2,106		7	%
Services, media and other	2,911		3,032		8	%	2,568		2,793		9	%
Hybrid securities	808		893		2	%	888		963		3	%
Non-agency residential mortgage-backed securities	621		646		2	%	677		694		2	%
Commercial mortgage-backed securities	2,602		3,006		8	%	2,468		2,806		9	%
Asset-backed securities	3,752		3,830		11	%	1,920		1,999		6	%
CLO securities	4,164		4,361		12	%	4,021		4,268		14	%
Alternative investments:
Private equity	933		933		2	%	614		614		2	%
Real assets	318		321		1	%	280		288		1	%
Credit	768		768		2	%	254		254		1	%
Equity securities	950		1,026		2	%	959		1,047		3	%
Commercial mortgage loans	1,984		2,011		5	%	903		926		3	%
Residential mortgage loans	1,500		1,473		4	%	1,128		1,123		4	%
Other (primarily derivatives and company owned life insurance)	896		1,035		3	%	815		997		4	%
Short term investments	258		258		1	%	456		456		1	%
Total (a)	$	34,627	$	36,375	100	%	$	29,010	$	31,204	100	%
(a) Asset duration of 6.2 years and 6.8 years vs. liability duration of 7.4 years and 6.7 years for the periods ending September 30, 2021 and December 31, 2020, respectively.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Credit Quality of Fixed Maturity Securities


	September 30, 2021

NAIC Designation	Fair Value		Percent
1	$	14,770	52	%
2	10,899		38	%
3	1,927		7	%
4	747		2	%
5	149		1	%
6	58		—	%
	$	28,550	100	%


	September 30, 2021

Rating Agency Rating	Fair Value		Percent
AAA	$	982	3	%
AA	1,921		7	%
A	7,273		25	%
BBB	9,804		34	%
Not rated	5,869		21	%
Total investment grade	25,849		90	%
BB	1,621		6	%
B and below	565		2	%
Not rated	515		2	%
Total below investment grade	2,701		10	%
	$	28,550	100	%

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

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


	September 30, 2021

Total by collateral type	Amortized Cost		Fair Value













Government agency	$	83	$	85
Prime	483		507
Subprime	59		59
Alt-A	79		80
	$	704	$	731

	September 30, 2021

Total by NAIC designation	Amortized Cost		Fair Value
1	$	673	$	699
2	17		18
3	7		7
4	6		6
5	1		1
	$	704	$	731

Top 5 Reinsurers

September 30, 2021

Financial Strength Rating

Parent Company/Principal Reinsurers

Reinsurance Recoverable (a)

AM Best

S&P

Fitch

Moody's

Wilton Re

1,287

A+

not rated

A+

not rated

Kubera Insurance (SAC) Ltd

789

not rated

Aspida Life Re Ltd

717

A-

not rated

BBB

not rated

Security Life of Denver

103

not rated

A-

Baa1

London Life Reinsurance Co.

102

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 - September 30, 2021

(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 Net Earnings

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

(i) Recognized (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;

(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;

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

(v) Other "non-recurring", "infrequent" or "unusual items": Management excludes certain items determined to be “non-recurring”, “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years.

Adjustments to Adjusted net 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.

Adjusted Net Earnings from Continuing Operations Attributable to Common Shareholders

Adjusted Net Earnings from continuing operations attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted net earnings from continuing operations 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 Net 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.

Total Shareholders’ Equity Excluding AOCI

Total Shareholders’ Equity Excluding AOCI is based on Total 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 Total Shareholders' equity.

F&G - An Operating Segment of FNF

Financial Supplement - September 30, 2021

(All periods are unaudited)

Non-GAAP Financial Measures Definitions (continued)

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

(v) 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