FNF - Earnings call transcript Q1 2020 | Fidelity National Financial, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the FNF 2020 First Quarter Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions with instructions to follow at that time.

As a reminder, this conference call is being recorded.

I would now like to turn the call over to Jamie Lillis, Investor Relations for FNF. sir. ahead, go Please

Jamie Lillis

and quarter everyone. XXXX operator, joining you our first earnings good you, Thank morning, for Thank conference call.

is Nolan; and today Quirk; me our Foley; Bill Joining CEO, President, Mike CEO, CFO, F&G’s Park; Tony Chris Blunt. Chairman, Randy

from overview highlights. brief the And the Foley. questions for We’ll Bill finish then with will Randy review a and business. Bill. some your strategic open begin will from finish concluding We’ll of Tony with a review title the remarks with financial call

Before contain involve remind uncertainties, call of this we duration pandemic. like that you the extent to and about COVID-XX and begin, I of forward-looking pandemic. would of There this conference uncertainty impact is in risks a may particular the that significant statements number the

are statements Additionally, intentions are not expectations, hopes, the including strategies forward-looking statements. historical our facts or about regarding future statements that

information, of currently statements the an statements and management at on made Forward-looking based future are time by call. beliefs as assumptions expectations available as as to based facts, result as results on from update this results not well Because whether information financial management’s are forward-looking statements actual and events future the are such to projected. otherwise. of obligation statements We may those differ new undertake operating of or no any materially a

number It replay, also our XXXXXXXX. XXX-XXX-XXXX for X:XX and access and is available Eastern beginning website and Form to with times through yesterday and of the risks The be will dated sections the and available risks the other other risk XX-K the at limited the include uncertainties SEC. press conference factors call and phone filings factors replay forward-looking replay not release information, XXth. The which in via April This webcast run today other is are forward-looking premium to code at through statements at statement subject Company’s but and will fnf.com. detailed our regarding are in be

call over Bill. the turn now to Chairman, me Let our

Bill Foley

Jamie. you, Thank

Before rapidly work I impacted want take a six the COVID-XX to do which address you as has with and moment been changed spread lives last of I we all of and especially environment, know, have Everyday the way begin, business. the weeks. the current over

performs essential, work important Homeland and has critical and residential workforce. company designated our U.S. of as estate to by commercial infrastructure facilitate part The closings real the the of Security been Department settlements

have of XX,XXX-person challenging management pandemic, we FNF employees investments maintained and work. the enabled title in provides At times, first. these the Canada of new thank which competitive workforce, vital safety of who to environment, the that of have the to and trying smoothly. technology, production without productivity but to advantage significant During the commitment a team the throughout quality health only customers our this This and environment our all based capabilities the title foregoing on India a than focusing not team, of to our is want to operational our their flow to onset more also remote I continue This nearly during the XX% high process and U.S. worked to security. testament has these of adapted management our employees made transition comes work a and times.

generated of pretax XX.X% margin, earnings quarter XXXX. year-ago businesses Touching quarter. detail adjusted the We on adjusted let momentarily. of title pretax $XXX in I’ll million, to compared the and million in the business first into of to quarter, Randy XX.X% in title more compared the go title the first title highlights $XXX on comparable our

providing delayed-draw agreement Yesterday, billion, ample offers F&G flexibility for the current market $XX.XX capacity early while and which loan, February fund a in we per to with valued billion. environment. also equity operate the term approximately on Holdings, the and acquire common $X and to acquisition, undrawn which hand signed FGL of cash XXX-day facility credit at liquidity cash along a to our Turning FNF a transaction stock $X.X the acquisition share in credit for of agreed in we

the are We quarter, are well by we and Iowa, end F&G of acquisition regulatory regulatory York shareholder and beginning from or all on vote. shareholder received second on approvals. waiting F&G quarter the the the track Currently, to completing the third New approvals of once and the we still

combine we excited what many benefits business F&G be FNF, to working today. to the environment more We that challenged would strategic given continue in are see a the experiencing the about we like opportunity even

continue the pro close XX% a forma earnings share, the the of to basis per transaction the end earnings we to deal XXXX pro be FNF’s per Assuming on XXXX share. more FNF’s accretive than to forma a accretive on we by expect than second basis XX% quarter, and to more

Importantly, balance sheet F&G enhanced growth opportunities. provides FNF with FNF’s will by strong a cross-sell and with countercyclical tailwinds, be business strong which

meaningful $X.XX share, cash. available to our We Looking afternoon shareholders value creating use for strategy. $XX approximately per long-term committed of through forward, dividend will yesterday holding allocation cash we our capital company quarterly announced which our remain in million

this dividend As fourth a the the reflects increase previous of quarter. reminder, from X.X%

plans alter policy. no have our We current to dividend

$XX quarter, the X.XX Regarding repurchased repurchase we million for our million. share program, during shares

has authorization. XX.X repurchase plan remaining million the shares under Our current

program, with given made combined our pandemic. F&G buyback COVID-XX temporarily market acquisition uncertain our backdrop, have the of pending the result We a as suspend the of and decision to economic

turn to now discuss detail. to the Randy over more Quirk business title the in call I’ll

Randy Quirk

Thank you, Bill.

adjusted of $XXX title of We earnings generated strong XX.X% the over a million, increase XXXX. quarter pretax first

increase the and XX% XXX in of a closed, basis-point purchase orders comprised was margin XXX% title direct increase closed, X% daily We prior X% commercial in order in orders closed, increase year. a total pretax a had adjusted increase a refinance orders over closed. in increase Our daily XX.X%, a

heading strong mortgage the versus opened orders quarter by volumes. as the into environment first X% quarter XXXX Refinance XXXX. opened rate increased the drove Purchase XXX% of first of orders by increased first versus quarter the refinance

of XX% quarter first by opened orders XXXX. the over commercial total Lastly, increased

The strong, been has quarter orders purchase strong commercial an healthy run. trends with incredible and in five-year continued what opened orders and strength following orders closed, in opened, started refinance remained

$XXX Total commercial increase of increase file. X% X% increased $XXX per closed year-ago a million a revenue in million compared quarter fee orders, to X% by due in and the to to

quarter, For averaged orders the was down XX% total at up March X% prior day XX% opened at the XX,XXX while the XX,XXX. orders and period, in purchased versus per XX,XXX first February March up year was period. prior opened at by and with February year January versus were January Daily X,XXX,

XXX% versus Refinance basis a orders on XXXX. quarter first daily the increased of by opened

we weeks in decline quarter orders. the see that until and a of As the began you to would expect, few it wasn’t refinance purchase last

For by per the orders year opened first versus opened were orders prior day refinance three versus declined over weeks and period the X,XXX orders Purchase prior XXX% per year. the per XX% opened day of by April, total increased day.

now in market shelter-in-place state many through purchase with quarter the mandates the social the orders -- quarter. continued in combined third the and ongoing to into and we continue With through purchase a concerns, second sustaining distancing mid-May expect decline would possibly

accommodations signing are Real investments we experience contact it real part we employees guidelines customers. require to environment, while and our making the closings physical to of certain social distancing protect limiting most close for to orders. mobilize estate and we and and work documents, are our physical office in adhering teams as our our the residential has pandemic and long of and team we operating the is deep challenging through markets, commercial estate in Today, impact forecast hard online While utilizing technology leveraging a markets. the our and resources on history the duration to as

state As shelter-in-place order counts March by decreased to of at reducing we the the orders, responded quickly spread the adapt expenses the to and end of resulting to due COVID-XX market.

our of and in XX%. operations by staffing our the made month decision we the to corporate environment April, XX%, reduce During difficult field in by

the million. expect be from reductions these We to approximately savings annualized $XXX

can We environments. available will we’ll cash monitor market committed all degradations manage profitability expenses, to closely all We margin our to mitigate we and and market maximizing maximize to our utilize flow. in remain the continue levers

turn financial Tony call to me review Park over the the to Let now highlights.

Tony Park

Randy. you, Thank

producing the million $X.X generated total our segment. all in loss We the in revenue $XX in the of but corporate title revenue first generated with segment quarter, billion

quarter of mark-to-market realized driven $XXX our First stocks in securities million, $XX losses million in losses treatment preferred by included and net which portfolio. were accounting equity investment pre-tax net

compared losses, revenue Excluding $X.X total realized in was our billion $X.X the as with billion, net of XXXX. quarter first

$X.XX million Adjusted diluted or were per $XXX earnings share. net

net realized the segment for Excluding million, of our quarter, first from generated the title $XXX increase total in of losses $X.X XXXX. revenue XX% first quarter a billion

pretax of grew All-in, first the XX% title first XX.X% increased XX% Direct business year. basis-point of premiums and revenue and XXXX. title grew a adjusted generated XXX XX% the title-related XX%. XX% quarter increased by by versus other increase and Agency versus by expenses Personnel costs fees the quarter prior versus escrow, by the margin, operating by a other XXXX. increased

quarter. income was Interest declined year to million, by $X on $XX FNF of prior debt million, of ratio XX.X%. debt for total the compared a XXst outstanding $XXX March capital as million with

million Our or our quarter. claims The estimate. above $XX million the currently million, X% $XX losses, was paid for claim $XX central of reserve $XX our lower provision first were carried than for actuary million

total We continued at title X.X% for premiums. of claims to provide

credit mentioned, Bill delayed-draw agreement $X term-loan. signed billion, as a for we Yesterday, a XXX-day

the That of backdrop, challenging coming adequate credit closely markets current to bonds. are opportunity F&G and close for term additional the appropriate FNF to continuously allows financing economic business challenges we Given said, the the the to longer monitoring acquisition the with the term-loan liquidity weeks. weather secured maintain the on refinance in

March $X.X $X.X in an and and fixed portfolio short-term with We equity currently preferred rating $X.X holding and of totaled our Finally, short-term million. at average investment securities over billion and duration other the of million, of maturity have the in of investments $X.X company $XXX billion and $X.X Included level. X.X billion billion are $XXX at cash liquid securities years billion of an investments cash AX, average XXst. at

Before I portion the Blunt, F&G’s participating Q&A CEO operator to over Chris be of will turn for call. questions, call the the in the

scheduled May Given so Xth, first he quarter. is related released the that and specific to yet to for on F&G quarter results first do is questions to any the answer unable not has

Let back to operator me call any the allow questions. our for to now turn

Operator

[Operator KBW. question George Bose comes Please Instructions] And our of ahead. from first go

BoseGeorge

is This guys. Hey, Bose.

first know The I is missed if in don’t on the April. had I year-over-year? but that, trends commercial trending revenues I just question commercial where was

Mike Nolan

we saw the quarter, as inventory saying strong slowdown side March. Bose. first orders really said we last that, by had March the built Hey, that was Mike. on to I’ll we got already the Having order March. up on into XX%. with open It’s a commercial start we flat

And in early XX% too to side. kind open a orders the any on trends just you first we open will quarter. too predict our had days up hold, deceleration. as really XX the tough about the the in open of the guidance month they orders give to be So, and side on the on in to XX% It’s because, revenue early and revenue it’s probably

BoseGeorge

you’re given of That’s the Yes. very on trend’s that purchase And assuming course and Thanks. for over a your just commercial, the helpful. thoughts few the think side, any the seeing on that months, you then, year? margin goes where trends

Mike Nolan

I’ll Yes. start again, Bose.

don’t a as you think, there to I very It’s reason kinds that. difficult we give good is guidance. things. project for those And know, of

second all we the that to as the do margins. taking need impact strong the into seen with in as reductions. commercial, will And we fall-off can potential But, you expect, revenue. with be go that quarter, we’ve we margin certainly to the maximize move margins we in generally actions and purchase that and our we in to with we’ll revenue fall-off minimize take would expense everything not April know, As be also

BoseGeorge

just great. FG. one Okay, Actually,

assume scenario outlook With value. have earnings mark I color market, to, that to fair value earnings how outlook forward? guess, improves portfolio any just potentially purchase had a the will that going that movements that use that or we’ve Does create -- fair accounting the done on impacts you there like Does future the how change and your transaction where kind of be is purchase -- accounting I and when that in earnings?

Bill Foley

take to Chris, to you do want do extent want to the can, that? you -- you

Chris Blunt

to answer maybe Sure. I’ll just I more guess, try generically.

the know, you process, you so will we go investment As through to market. the portfolio when mark

the So, most trading, listed the in up portfolio. given portfolios you’d now, where trading yield are right expect on it’s to pick

impact. that be would So one

assumptions. The other your look actuarial would of at be to all

through we Now, fresh. pretty acquisition X.X having ago, said went since those just that, are years an

be would drivers that big those the yes, two see. could So, you probably

BoseGeorge

Okay.

the that’s we I that XX% to So, could just forward, something about? trying to on was is be upside back is that based that drive should think tie where effectively mark to the the whether comes accretion, going going yield incremental in

Tony Park

Yes.

Tony. is -- think I this

of probably stable. couple off market are earnings will FNF’s a things portfolio in that, their think, think of like this be I earnings F&G’s to than think volatile I investment revenue because a about. that is pretty One less an and is driven

impacted put maybe on at volumes FNF’s extent and by is the term, So, potentially order estate real least to in the that FNF would disruption negatively a -- a in by earnings. short-term damper activity, short

And the the you stability you of analysis. so, earnings, even accretive would that a given F&G’s give math would think more

for all higher. numbers and that back numbers that in full frankly conservative XXXX XX% could the But year. those settles out maybe you, were I see half year Now, we you’re gave for very to going and XX% which at definitely a accretion

Randy Quirk

tight spread net that very and might earnings is only are the our our driven run add thing I we And -- to reminder a ALM. a a everyone by in-force that model it’s just

impact think to for significant not us. point, I is volume near-term as So, the Tony’s

Operator

Mark go ahead. question Barclays. of next Our Please comes from DeVries

Mark DeVries

thanks. Yes,

Just us than that in you optimistic on that what guidance to? seen you that a think that accretion can the made changes conservative. recent in in the ways you come just ways more can accretion is you’re that in Tony, higher we’ve the what have question months a guiding math. follow-up question, which remind And

Tony Park

to numbers be even those Yes. I guess, wanted generally speaking, when we careful we initially. gave

as both kind a as were of a so, would conservative, well off we look things they We like. thought with about forecast, took FNF XX% what the And haircut of F&G.

We that now. FNF now, that done was disruption accretion just those in of the positive But, then back a and you our that And played FNF rate you maintains activity F&G to run that before lower. greater deals earnings before. to a numbers actually the real back in really where extent numbers the the or but any estate I think mentioned, quarter short-term conservative. you analysis, ideally that. out than kind I math Now, you the obviously seen who’ve so and XX%, would said And drive stability, were bounces I dislocation see if gets as of than a of we’ve still, the stronger is -- the think relative

So, think, to there’s real marketplace. we kind a accretion back get once I upside of yes, normal

Mark DeVries

sense to be? your what thoughts latest determine is funding if for, at? your market have you the costs today, Where And this Okay. on And price term around went that loan transaction? do the you would out any cost

Tony Park

So, I signed loan, four current a when know think today, or LIBOR yesterday, had three billion term this easier bond but we were three to would ago $X a the and markets guess, deal marketplace, as we be one wasn’t. pretty loan that for weeks start plus bank volatile, the you is year process. XXX. If to do, a I And, ago maybe weeks do that’s lot it it to deal we had the

And so, settled really, spreads have down.

well -- maybe could looks all-in think at that in we X%. we’re we’ve land little $X better. think that even billion think were within the gave February an I estimates in And, probably if analysis I X%, refinanced a now, our cost I we even

Mark DeVries

then, resistant more down explain business Okay. different Got kind they’re order like more your sounds just April anything decline come commercial kind volumes commercial that that in of so could in count. Is resilient business. question materially your -- on the lower FAF, XX% the kind far it. And qualitatively seeing? that about than the which you’re on one of there just told has of or It

Mike Nolan

don’t two I differences companies. exist may what know between Mike. It’s the

have probably commercial is side, larger. influences more local the much footprint on volumes. order certainly commercial volume Our which We

And a it small part pretty to But, set everybody, remind from. would influence So, be local we’re then, kind extrapolate I about anything. just I that’s that much data talking of as it. could of think as

Mark DeVries

than Okay. Is the better local the national? holding up

Mike Nolan

difference. little XX But, bit. Yes. the is days, down orders. And much a Just it’s national as as not significant a not first through local the

Mark DeVries

Got it. Thank you.

Operator

ahead. SIG. of Jack next is Please from Our Micenko question go

Jack Micenko

on ratio. little to earlier wanted Mae, they Fannie [ph] their increased I morning. outlook thoughts Good ask title your just a today. Obviously, loss

new makes higher times. sense Conceptually, on of into You in are think these files quarter. eyes the when going a than it set little tough I them, come

directionally? Just is as and you so time plan expect of of terms today general with, to in of underwriting different it move more thoughts of well environment Is really something in would or is kind of forbearance just the a kind wait-and-see sort approach?

Tony Park

feel us. Jack, a probably certainly Yes. there. our is good I about are isn’t We the good. there’s to little We point, Tony. would this latter sitting substantial, that wait-and-see approach pretty your for say kind on but think a of reserve cushion we it’s today, position and something which I feel

also We’re X.X% loss ratios that may the last the continue show seven X%. to us trends really over or years seeing eight see -- be in that to

relative X.X% the fact Potentially, So we’ve if a a loss yes, providing that a still little little last We’ve past is ratios ratios to bit foreclosures. years. there’s what seen in cycle drove for the bit, a especially up we’re kick even conservative higher. seen it that we and see several loss

Although certainly practices. underwriting have we some changed

a our think, mechanics side stronger, on fraud I lot is lien certainly the exposure. awareness commercial with

I think, stronger. much is our underwriting

it we’re not higher And see closely. those I’m we’ll anything make if expecting to the watch show adjustments at same then. but up, time, So, we losses, going

Jack Micenko

first tackling or or quarter. on the from is the quarter, And Was business there day-to-day? up continued into blocking and a XQ commercial that to and forward just XX open pushed in that business pulled plus then, Okay. and there XX comp maybe XQ the on business winning either anything the

Mike Nolan

hear Mike. of it’s XX%. the about very your I didn’t question part first Jack,

On orders? the

Jack Micenko

Yes.

the push was was there I commercial. On wondering any forward... if

Mike Nolan

of. aware particularly am Nothing I

just really the in And of in momentum around up course, the kind fourth it stopped XXXX. were XX% the I of the concerns we’ve a trends market. by continuation shelter-in-place there’s in a then of commercial the saw back we virus. half the quarter. a was lot And We bit of got think think, I and the of

Jack Micenko

right. All Okay. Thank you.

Operator

Our next Stephens, Inc. of go question John from ahead. comes Campbell Please

John Campbell

Hey, guys.

Just this bold year. competitors two here. of obviously, pretty your made one a quick mean, refi I call on questions

to kind of want on Just view broader get the your outlook.

calling I do think I or versus increase But, versus XX% as purchase think, year? guys it’s they year. far for don’t best so if about for Randy. as what a you know, Mike last or this refi were

Randy Quirk

This is Randy.

-- quarter, in, part purchase. a first March, middle the first in about the into of me at and stay-at-home side. the building was through that’s orders orders per purchase got orders when open of address day as was saw fall-off strong. Let we March X,XXX significant we about purchase into came the came We well, -- X,XXX when went It We from April down in per day. purchase X,XXX purchase at

we there the considerable have move seen And XX% a volume and of the into moving -- like weeks The fact, it of up a month three and over course, in bottomed month. from pretty as looks last X settle And it’s purchase target, it looks the X through of down. So, drop-off has last first the is even was finish it out. but over we that weeks, week. to thing this the the in March, slightly ticked we’ve days start

states, started of in in these felt to some lifted, of again feel a some orders really versus the like if dramatic month about what long-term, particularly shift estate March. are real So, thinking it the like people of get major

and come we going far we could month seen signs the April. gradually be of it back to so feel back of and So, come in that it’s

longer decline, set. pretty first we’re three However, like mentioned small weeks. the a at earlier, for it’s no least data Mike in But

Mike Nolan

on side add question. refi the I’ll John, And the of

line in it somebody if a very about about from latest be refinance that’s I and forecast much increase a $X.X for was Fannie the calling going was to in with $XXX saying market,, think, think year MBA refi, and I trillion there’s XX% last billion.

number’s predict with that continue to are to the calling volumes. be. we in what for. But, Hard So, line groups strong going real would be those what see refi very to

quarter. first the in XXX% up We’re

we -- up We’re little bit, in of year on average. opening best that refinance like is it’s more in that the refis in last different little we’re April. and quarter a XXX% were maybe was it’s count sounds first the our And The actually year. off April month while a than April of fallen

to are So, be very it how refi now. still to deals it closing. it’s very strong market, And call a right active continues, appears long tough but

John Campbell

the then, insight. Chris, Okay. guys. That the sense. good for to thanks your on color, call. jumping Thanks hear make for That’s again And always

still so, Just like I still the the opening or guys But of offset on kind the can the market FGL, sounds just pressure. that something mean of still -- rating achieve picture, guys Is up calling in channel. upgrades up is point? you model some you line? some there outside bigger of of the for where next is or it feel like were Is do you stabilization in that’s some you this at that guys and kind air of in it that kind can quarter

Chris Blunt

Yes, great question.

good So, same pace say, had agencies, dialog about. still and a continuing you the reading those for with strategy initiatives expansion. pace We’ve that I with lot on channel a would of talked remains

an And our and was there them I think The half I much upside point core a term weeks, has they by choice. a bought front here of a and contracts agents of while of two other there’s a one guess couple I in thing, electronic personally think The guarantee been term our can’t pressure no product, I it of sort about we lose all out have potential and less if actually index clients, -- took in than their physical longer process pretty money you contact last hour, near through this. people a we issue needed. we an getting enhanced give the is, of would

around do long given sitting macro still long-term encountered in of issues swamp short any business. -- be trillion that $XX is in could how so, there’s they run, larger change mutual to that term sort And the having agents going to

John Campbell

guys. Thanks, sense. Makes

Operator

go ahead. Our next Hughes question Please SunTrust. Mark is of from

Mark Hughes

the could environment that? much Yes. of And minimum? in manage so How on interest do where kind money spread you Thank there Could do I contractual talk How about about this room yields. you management talk have Chris, rates? new you that? much pressure is against you. wonder, then,

Chris Blunt

Sure.

So, have comments. bit, was it a blown And would that have know, I couple out. down indiscriminant. say quite as quite you in yields beginning, while come of One, treasury spreads the

AA seeing, out. So, blowing you spreads AAA security and were

And so, yield think the for so total matters I the us, it’s that whatever rate treasury just than all-in is. more much

we pretty talk So, do regular environments on much in it very a particularly about basis, meet constantly. volatile we

we an generally As in ability a more than year, that. new do We you is know, have to a re-price can month. re-price our in-force to at which we once volatile timing business re-price. least it once often But sufficient environments

you I that if think out you thing worried capital can not had because strong is, see you’re position new write coming this, running business other then you’ll about to of a into capital. continue The happen

If put you leave going sales, pressure did certain carriers that’s to not, markets. on to down their some slow

to pressure a legacy in-force issue is, current very is tied good again, well. a environment of interest that’s put in big the to to be we going The level you think the for going us. I why that’s as have long-term, this intermediate pretty rates, view if other that’s And

Mark Hughes

Thank you.

Operator

Associates. comes of Aron Mackenzie Zelman ahead. Please next go from Our & question

Mackenzie Aron

Thanks. questions. quick A couple

of First, deal. to understand makes share repurchase macro on intention, and that out FG you with step the could the clarify, market sense just the the I

we when those a that should in expect be there So, will repurchases? potentially resumption

Bill Foley

one? this handle to me want you do Tony,

Tony Park

Sure.

Bill Foley

shares. a as the downward, up terms -- pretty about moving as beginning. actually started And program stock are day $XX. XXX,XXX repurchase started price the over we our when we we aggressive started shares price to the repurchasing started the below in got of repurchasing Well, And more

this but thought from New and We to back it’s again. repurchased shortly. the COVID-XX, sooner from we But, acquire we revisit then be deal close so, preserve then the Iowa the we gotten we days, I XX think while we know early like we are sure little we a and the an our yet we’ll it assets. pending, then, markets can in response, through a be maintain April. don’t just probably we’ll dividend, million continue have I it wise looks more quarter. anticipating than into FGL the haven’t mean, cash don’t shares we’ll FGL and make we’re FGL those later, Once, just kept to the June. for vote in were next With be or XX first it’d on because and plus going working get rather and FGL, days clarity paying on situation approval purchasing shareholders we a X.X aggressive York, but the and in And in pretty that and is and closes we dividend

trying So, we’re just to be conservative.

We a trying have we’re capital very fortress And balance capital sheet. strategies. sheet. strong a It’s conservative balance -- allocation

that I hope So, is responsive. or answers

Mackenzie Aron

the year second lower this secondly, you then, for remainder quarter, And the in the helpful. the income, the in very from the That’s investment of on Yes. can just rate what frame be environment? perhaps impact will

Tony Park

from fair investments, which cash Yes. strong rates this short-term interest XXXX of know, $XX pretty Sure. short-term which had in is with first Mackenzie, We and obviously. rates you a amount investment quarter and Tony. income. But, a is short-term comes and as money, Exchange are million that

income, really maybe basis-point and some the next so, made effect impact lingering XXX and moves pressure investment that like Exchange few moves the And especially from in on some investments. in we’re the back QX from XXXX cash I to Fed quarters really in, feel and in said, going their the XXXX,

about see, and investment range probably I in the that being could that XXXX. the for $XXX of I and versus interest in into trending X.XX income direction. year dropping full $XX million QX million see somewhere in mid-XXs XXXX So, in the

Operator

ahead. comes go of question next from Chris Point. Our Gamaitoni Please Compass

Chris Gamaitoni

if wanted stability in I my at is one the past what relative just layoffs we layoffs potential my into future least outlook, to Thanks it’s guess, COVID move question -- volume people. market to noted relative issue. I’m taking wondering as And do the you of if improves? expecting being and the call. you volume. if and you your volume efficient, less peers, centric, of more have capacity for really kind understand to order need refinance the improvement I imply enough the shift more

Randy Quirk

we Yes, a difficult through reductions this is down March, very, Yes, mentioned, Chris. as the of order very we already our sure. This to It capacity market when Randy, as engage decision the the quickly. to I’d will improves. have was was move month coming as But, volume we -- degree.

on aggressive So, to we needed to get response that. our

moving. As terms have the out bottoming side There I refinance it is as productivity. going now keep some on of had in purchase said, side, seen on Mark to refi mentioned, we maybe the are efficiencies

XX we we to is reduced for properly for severance now. do market being So, did up believe, pick did before. back, a But, if close through days in. we we’ve and these What expenses this situations were that staffed that, people we have people COBRA of don’t typically back we’re but types can program, those we when been coming start hopes bringing in the is

around files have We metrics, per employee. really open revolve our always staffed which

when we’ll So, we as times. to these issues it’s the orders no believe be But, it did unfortunate -- was, unprecedented we’re need we to particular And able as coming it’s really confident. staffing follow adequately. back, as but are down, have

Chris Gamaitoni

Thanks. have. I That’s Okay. all

Operator

go ahead. is last with follow-up Mark Our Hughes SunTrust. question a Please from

Mark Hughes

April? Did I Thank up this. XXX% I you. count. number said were I’m you the missed refi give in day day you a orders for per sorry think, if on they’re

Tony Park

day, per Yes, order yes. -- Correct for April. per Correct.

Mark Hughes

want might make to I day… was if sure I refi what per have year, the just last ask? the then, April of And I

Tony Park

April of you know it the numbers I a But year was was. this of X,XXX. about refis because day don’t increase what year, percentage absolute the just I’ll X,XXX we opened in a April last and give

Mark Hughes

you Thank Perfect. much. very

Operator

conference to question-and-answer to for closing our any the concludes remarks. like over turn back Bill I Foley now session. would This

Bill Foley

with second our Well, was very and to manage pandemic, Due healthy we and has title as pleased call are slowdown Thanks look diligently everyone as regular Thank start, updating is country, we the forward quarter to in you greatly ahead. our ongoing again. mindful we the able We anticipated our volume. safe. stay to we hope watching expenses results on impacted you. first our which quarter were the the year are off challenges to of

Operator

has attending now concluded. Thank now you you conference presentation today’s The disconnect. may for and

Fidelity National Financial (FNF) 23 Apr 202020 Q1 Earnings call transcript