Fidelity National Financial (FNF) 25 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Jamie Lillis	Investor Relations
Randy Quirk	Chief Executive Officer
Mike Nolan	President
Tony Park	Chief Financial Officer
Chris Blunt	Chief Executive Officer, F&G
Jack Micenko	SIG
John Campbell	Stephens
Mark DeVries	Barclays
Bose George	KBW

Call transcript

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Operator

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

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

Following the presentation, the conference will be opened 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 fourth earnings good you, Thank morning, for Thank conference call.

of we is is with statements begin, like that Park; Chris the title today a significant Nolan; overview you from with the and me our are will Quirk; and remind Statements strategic Randy about Joining review from forward-looking our call number Mike President, business, about review extent conference pandemic. not Tony facts, a a strategies CFO, particular, that brief Tony risks impact or and forward-looking of future But F&G, intentions uncertainty the of Chris of this questions I would regarding for review then We'll including your highlights. and involve Blunt. uncertainties, CEO, remarks this historical financial We'll contain Randy, There will call F&G's pandemic. begin the may some and duration the before statements. in finish expectations, will statements Randy. open are today finish the that the CEO, concluding hopes, Mike to with a COVID-XX

risks differ which materially future statements as result well of replay yesterday any statements conference information, the to, results future and financial those sections X:XX of may statement update via in information a and be statements the are The forward-looking include, based subject factors replay no the to company's dated for forward-looking or fact, on at of XXXXXXXX. as as to assumptions other call. access to otherwise. uncertainties, filings events SEC. but based forward-looking available are and risks at It expectations detailed This not on We whether until be actual from Form projected. will our management's call limited available the Such undertake made statements, release through operating obligation by this with XXX-XXXX new and Forward-looking and and and to is of as beliefs currently Eastern time at management not statements are are number information, and other risk website the the XX-K our March regarding The factors p.m. and press fnf.com. today in other are webcast will beginning at code is available Time replay (XXX) results also phone X.

the call Randy. Let our over turn me now CEO, to

Randy Quirk

a efforts to Jamie. title I navigated we by full fourth in thanking through this and for the past begin business. year, delivering both while as for our Thank challenging quarter would the year our their XXXX you, like environment results incredible entire team record

continues be the continuity our primary consistently of customers the ensuring to has are while Our our focus and been well-being employees, business health maintaining our met. of and and needs

For of million quarter, with compared adjusted the of XX.X% quarter the generated compared adjusted record the and XX.X% quarter in XXXX. fourth with we $XXX title fourth margin $XXX record pretax pretax a year title in earnings ago million

we real drive also results, our and Close footprint significant will will go to Mike business, on technology as but automation industry, announced of to inHere. client-facing in adoption title detail as national this, we prove title competitive our continue inHere of plus While financial believe significant technology we title expands investments made a the our our our the innovation subsequently further we recently into advantage. the be and on with pleased both very platform headway are more strong our having

newly sales The growth in of entered a broker-dealer opportunities. has market Turning result of July opened in channel, the $XXX has its that channel sales FNF generating enjoyed F&G our the to generating on FGL upgrade gaining by bank acquisition X. since our on quarter. rating XX% of large launch as F&G fourth Holdings. and growth strategy, continues additional F&G acquisition of to momentum credit execute the over retail million is

Additional area focus transfer XXXX, pension into in F&G's be marketing. F&G strategic distribution Chris will of institutional will including fourth results the products, shortly. a for detail continue channels, to go quarter more on risk including

cash Looking focused growth. be forward, quarter to dividend capital share, our to investing increase $X.XX Last reflecting we for our creation on the on dividend X%. business week, priority also while our continues long-term sustain per a through our allocation focused diligent announced value shareholders program, in fourth of quarterly of remaining

announcement, $XXX for share million. XXXX that million $XXX Additionally, we in we repurchase in have million October, $XXX million XX-month And X.X shares for target. repurchased approximately total, for announced repurchased since approximately shares And we a million. X.X

me now to detail. the business over Nolan title more discuss the Mike to in Let call insurance turn

Mike Nolan

Thank you, Randy.

momentum the the in and demand pretax margin, As title in refinance commercial purchase we pretax earnings quarter strong Randy real was mentioned, fourth sustained as driving record volumes, continued for rates estate to a adjusted adjusted and benefit from interest title activity. rebound low continue

the For quarter quarter, over million, adjusted of XX% fourth of earnings increase a title XXXX. $XXX generated we fourth the pretax

a closed, orders in Our point closed. closed quarter. commercial increase million orders an $XXX pretax XX% X% We X% orders orders. in due increase - file in increase an to in prior was XXX total fee refinance driven Total Total quarter quarter. commercial compared and increase increase orders adjusted purchase daily of in XX% closed to year XX% per in year compared a had the the title with over was closed, $XXX flat a commercial ago closed ago revenue million the the year orders direct increase direct daily margin basis increase XX% was XX.X%, by

per For at October total XX,XXX day, and with December XX,XXX. XX,XXX the November orders at averaged quarter, fourth opened XX,XXX in at

three market. we XX,XXX prior orders orders quarter see Daily per and as were weeks refinance the opened day For year. opened versus January, demand first activity were total in the to of were purchase XX% XX,XXX continued February and strength purchase the day in over and through per continue the strong over up

purchase February versus X% January, opened by up daily of daily the through three on Refinance the XXXX. fourth prior versus versus were year. prior increased up XX% And and year. quarter were XX% orders weeks orders a basis opened the first For the of

daily and, prior year. three refinance through the were orders January, were the For prior versus of year XX% first XX% the opened February, weeks up up versus

the total with by Lastly, XXXX. sequentially per quarter. X% of day quarter increased opened flat opened the remained the orders commercial orders fourth quarter from over strong, Commercial third fourth

first For before the have order XXXX multiple saw seen prior have in the across and rebounded we opened encouraged January, of of weeks X% day up the the through We open total we last remain volumes were pandemic. quarters the by as outbreak versus to January the orders levels up X% per commercial the February three two over geographies were orders year.

As Randy touched significant on briefly we on, technology investments. made progress our

from collection We in history to and developing technology order have title data automation of investing processing. and long a

focused settlement experience track inHere inHere finalizing Platform estate as and progress as transforming launched estate digital safety Our local the the latest consumers January, the our start works and largest of for notarizing trusted Close technology. simplicity escrow improving we documents. to real network their a closing leveraging of the cloud-based transactions. estate real is real In and footprint professionals our nationwide, with on inHere, industry's the and signing transaction needed by experience necessary the transaction, and well guided

innovation digital many, the most are truly refinancing benefit to solutions to part of upon inHere family currently are in FNS the driving professionals investing instead buying industry the of of the and allows a will intelligent of closing closing all XXXX. continue undergoing to interactive approach traditional Today, paper technology conclude, suite Close we of throughout deployment is for For to and overwhelming digital a inHere title the shareholders. deliver home. transaction and guided of the based the this customers, tools process of of staff employees companies, the or our entire and our throughout of To committed in closing.

me over F&G's call quarter review Let Blunt, turn now to highlights. to fourth Chris the

Chris Blunt

of quarter the we third fixed sales record The on or saw Mike. record off quarter, the Thanks, we achieved in indexed Great. at fourth another the in F&G. capped Building momentum fourth FIAs year annuities, growth of in discipline. sales were $XXX prior $X.X from quarter maintaining our were the sales fourth while quarter, annuity billion XX% and prior year, FIA XX% the up pricing core Total from million, of up retail year. the

we new We as continue see us independent take share to market in channels. agent ahead in our primary further traction of growth significant and gain channel

service launched then, we've as we feedback As to our the partners in the $XXX date, the from institutions have million original million quarter annuity the in new results sales generated previously sales alone. our very to acquisition, shared, Since in financial quality expectations, July. These phenomenal our of on get over $XXX in positive we surpassed FNF and channel new channel we post continue well. successfully fourth including into

With results, or we $XXX million in to $XX the these business of fourth solid flows new sales driven AAUM, management, average under quarter. grew billion, by assets net approximately

points. as in interest Net Now Total following by pricing management. points of demonstrating result new a net earnings, earnings tax line fourth steady XXX items notable was this strategic XXX launch benefit. due to trends, active product our into were million earnings from benefit net spread despite primarily fourth continued recognized and items, Adjusted basis the results million spread this excluding historical our quarter our of and investment $XXX third in quarter with the Adjusted in year, the to were acquisition. a period FIA million, for net spend million, in driven in favorable due down $X the $XX FNF were investment results decline Strong the the million. spread spread remained was tax have and were $XX higher basis quarter, in-force faster-than-expected rates discipline channels. $XX favorable net

current contrast minimal in many peers, on our to mortality, are monitoring and life after traditional In to Next, X% products want reserves which GAAP only of many the quickly annuity in reinsurance. exposure F&G life has touch pandemic. the at of of the topic industry I to

been life In impairments our and the less within perform addition, the environment. has assumptions. pricing than pricing year our product despite for Most were portfolio in-force pandemic credit our importantly, continues investment to expectations mortality in well, block our

a of pandemic, the strong experienced net volatility the as into which and sharp us XXXX XXXX early we portfolio's impacts still unrealized position reversal business. came net loss the the $X grew the while with allowed year-end, billion, unrealized in growing economic to weather addition, to due effectively sheet, from balance Moreover, position pandemic. of In gain a the to

year over our with subsidiary. As expected, RBC the ended operating of ratio primary an insurance we estimated XXX% for

our on of our F&G. And in for offshore the we used of products from with flow Proceeds beneficial Aspida business, quarter completed MYGA to a December. will Re, sale XXXX. entered growth third-party reinsurance also the also reinsurance opportunities mutually agreement in be Aspida We to Holdings first future beginning sale the F&G fund into

So our are in we channels growing as acquisition. following summary, sales multiple the nicely FNF into diversify

and investment We continue net to fourth in earnings, With generate highlights. portfolio. consistently quarter now will review investment spread to over turn we to our confident financial call remain that, the stable Park FNF's I Tony and

Tony Park

securities in quarter, $XXX $XX earnings million. Fourth approximately each quarter in in net of were held producing portfolio. of generated preferred gains million and the of equity We in approximately recognized which billion, are gains corporate million gains title $XXX million, of Chris. and stock the the the you, recognized net quarter $X.X in primarily producing $XXX net Thank of to investment $XXX the treatment segment mark-to-market due quarter to our with XXXX. billion total in F&G generating disposed net were accounting recognized fourth fourth includes the continued versus securities, be revenue $X million segment or The whether period

compared title $XXX from contributed $X.XX adjusted of our was $XX as gains, and share. billion the fourth $XXX corporate million. net contributed had net The segment revenue loss diluted the continuing quarter total operations $XXX recognized Adjusted per million billion other F&G million, net earnings with were $X.X and in million. Excluding $X.X XXXX. an or of segment

the basis increased XXXX. other by the million, versus fourth increased billion fees business by fourth by of with a prior balances point quarter cash title ratio was the XX% generated on costs fourth revenue grew of our in the other Direct to of adjusted the interest our in, with of pretax reduction XX%, FNF billion due of XXX in quarter XX.X% Interest quarter generated capital Personnel X%. on quarter title-related XXXX. compared XX Agency XX%, and rates a the outstanding the and income representing XX% gains $XX XXXX. billion title a margin, the fourth segment our increased operating $XX by and revenue debt-to-total December declined versus $X.X XXXX expenses XX.X%. escrow of million title versus quarter and All in the and corporate debt increase million compared as for of premiums total year. corporate $X.X net business. year by for short-term Excluding exchange $X.X prior $XXX decreased title recognized segments

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

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

billion. totaled three Finally, Included billion and at other in billion just the and years billion billion $X.X preferred level. holding cash our duration in an We XX. $X.X $XXX rating securities an AX, equity at and title the of $X of investments are liquid $X.X and under the average portfolio fixed million, of investments company securities December short-term and corporate of cash investment and average with ended of million with quarter of $XXX $X.X maturity short-term

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

Operator

[Operator SIG. proceed Please Thank with comes your question Our Micenko of line Instructions] Jack from first with the question. you.

Jack Micenko

Can February lot year because year my observations gave to or on looking to you - than and a higher, rates Because getting looking seems day, like question the us. XX much Good your it sort of lenders on touch the are people the of XX%. kind the apologies. Is of is thinking, more finally yield, afternoon, at of order number a side? resilient a at I you the backlog? more at suggest February comp the looking seem morning, good than January, you up everybody numbers market, resilience how just but open data just about feel be there refi? the moved the mean, there's actually, January move-in rates ago from would it just the tough refi The the

Mike Nolan

up, much the Jack, are you much be day, Having move refis a month January, that refis depends very Sure. at it's you're in opening elevated year. out said up, at Mike. right, is X,XXX to XX to estimated rates their that Knight, as that, data, how they million just not any but out close potential pretty carefully. rates if for really starting if levels. up. of We're but will the last eligible measure report, year And they than at people. the And over down comes say the refi it pretty did, impacted, had with example, look move we was which will And under higher the December of they million. size XX saying basis drops Black it interest size XX point market, this I'm just in movement And X.X% happen, they that had below just

good So of can pretty still but lot a fall refi. a off, people that

but refis that our as in in as 'XX, probably quite So stronger a years. strong certainly will strong as is - still not 'XX view we maybe of had number 'XX, I think be than

the that question. addresses hopefully, So

Jack Micenko

- sort drivers think versus of curious - between can ultimately sort you it out to you it's if it stronger definitely order can in taking I'm centralized share seems think No, you're why? market - ago. and does thought seem do the what gaining year some share. some be even but than the say, parse Yeah. of hang it where are you side, If to purchase? closed are? more a anybody of The there just you much and there to you Where And do had hard refi

Mike Nolan

I think it's - it's Mike.

don't little numbers get because a to specific share market down segments. we it's nail think to I tough that

numbers real more on market dollars. be national share the level just tend to look really at at the You premium -

refi. a think lot agents We've business So I of a it's channel. title our with lot in side But in of on works answer. the a tough think agency their growth to finance I has little ServiceLink refi on that seen certainly seen centralized it

- say the it market. So relates can't how but I to overall really

Randy Quirk

I of have metropolitan our in some we in a very Mike, have And and also this benefit brands. add major also Randy. benefit the just the large is network. particularly And the - West, might areas, network, we also the of Yeah. very distributed multiple

teams, get bites regard. the apple in two, at sales that one, cases, four, in And markets. we in five with So three, aggressive our we're some given pretty

that in of growth. kind and think we out, that and plays with agency continual I we but direct into opportunity And had our also. share somewhat accounts side, So market into year gain. agency - market Along are operations share advantage for acquisitions, when an acquisitions, also that see agent we gradual for and acquire take operations year of we

Jack Micenko

Yes, got it.

you if one a I off But really not also and could hadn't also. you of channel contribution that to mentioned with mean, hook you more And 'XX? big sneak around in some And Any the is us sense obviously, F&G XXXX? contribution we terms Okay. do How new modeling share think let question I revenue real give the answerable then can growing. driver about bank in going could Chris an take in in forward. growth how thought independent. about be the as and

Chris Blunt

for competitors and well. agent our seen We've there the be think really some quite quite clear, will reasons. To remains pull and Yeah. some time, for largest back as independent channel, we're optimistic channel I different

on for in the which growth to add market broker-dealers. the share. layered And in We continue peer business. risk pension small and very banks So I that top growth in of think transfer opportunity channel pretty group. then is we that, next channel of us explosive had put us last a year, then And

buyout cases pension So as we're be in we a can where well. position on bidding now

absolute we we relationships are can as good give share. take It's So don't want yes, ever as continue been, still to core I think our to they've and an impression. channel, the definitely

Jack Micenko

you. Thank

Operator

Our next from proceed Please comes your John question. with Stephens. of Campbell the question with line

John Campbell

Hey. Guys, quarter. morning. on great Congrats good a

Randy Quirk

Thanks.

John Campbell

carry for moving title So it's parts pretax you going is a margin. forecasting I in - business. of difficult, have there's a don't at this that anybody you to obviously, really XX% but lot I think point, guys guys a to be think the

things You any I don't outlook you've plays least crystal XXXX? a it more might your you is think in like is and teens? like macro guess at to Or type sustainable it mean, a kind closer head margin But out. margins do place I the at high have the mid-teens how fair on to in enough ball, sense macro got XXXX XXXX. for of keep in side. obviously,

Mike Nolan

Mike. I'll it's Maybe John, in take chunks. that two

as think about will quarter, I last XX.X are play quarter out. [ph] think first, first we positive we year. a We the how on first did in the very margins of

to I think we've good got a outperform that. shot

we're currently and some there's talked refi word. of seeing strong about given the wildcard, of too If any a Just what a that's we with activity, probably and numbers. resale

is to you quarter-to-quarter. commercial but will how out play close. when open never don't know You orders know going are good, always extremely transaction The the

up, point. what particularly half of there'll I this So chance happens consensus will John, that Full is at out That the think, And last a rates impact be of seems it's will again, pretty opportunity, think purchase on the was. first the year, a year. pretty I down think good better in to XX.X, good a for than some tough think with come of I 'XX. think has it refis, kind be I wildcard And year. full year. move things. come there, If couple outperform of comp, view to back outperform the quarter We a refis. then got to the Commercial to

that bit. on be so little a the pushes just could that back And thing margins

Tony Park

in And for maybe this moment. just a Tony, is - chiming John, just

a probably talking the fee refi, third the think As a to and of but so file this refi a know we're of mind but resiliency and all I about in listeners purchase the it's transaction. important keep we what reminder, on do, you per get is on probably or that

that's is purchase increase fall-off refi a in by by revenue so offset offset And dollars. even in clearly, equal X/X an

I to that's important well. so as And think consider

John Campbell

Yeah.

I F&G business, guys mean, makes Chris phenomenal I team. up on have say I job that I'll to picked guys And since it done I sense. just and that think the the guess, this think and those you first. congrats a

for there? investors more just insert For If to whatever that credit case value? the know refusing of you kind something sort of you things something for guys that looking yourself reason, it. you you're are guys, remains create yourself to call, to do any but there how kind give to you last exploring there do that or might I mentioned be of insert

Tony Park

pleased are progress see that as won't how speak think for out, we'll guess, that it's last and very Tony. I that read I the more appreciated. a just of so them, we or board to very momentum long months but play their this hypothetical, point. owned this I our said, sales the and it history I into has growth was the pleased We've with than opportunities to same they're the But aren't Yeah, since the fully it patient, we others. did F&G, and the all was there. on been X, they're a I taking is call, and And action and some said what only have as mention when at and people and long at seven But time, go. those things June very we're those continue pleased. I

whatever the the whether lot to it's or allocate is we in I patient or meantime, dividend see pretty And pressure think this do, how to title goes. it the think our in generating and be tell. might all so if benefit stock will And it's it and of increasing under willing company us won't. ultimately, either early else we'll I But to to shareholders And they're of is continue cash. a capital, or our buybacks,

John Campbell

Yeah, more called that out post $XX million Or go-forward you transaction, that calling out favorable squeeze tax you as impact is guys? I The could you benefit in If a for a event? one makes were Chris. as a sense. onetime for

Tony Park

you I'll it? want Maybe Chris, take Yes. that. do

Chris Blunt

Tony. ahead, Go No.

Tony Park

a been out though sort life a it's of and one-time, or in it's carved even historically guess, not tax carved but I out typically, adjustments AOI planning valuation as it space, basically because of it's is those wasn't of AOI. allowance and one-timer, have John, Yes, the

So the want wasn't million tax a $XX sale F&G $XX from expect million to inconsistent that. is related so F&G that be million we of onetime was a operating even consolidated of with loss, about that's our GAAP tax a benefit Re it really a the loss an and reality had though would earnings, But another there didn't to basis. the to numbers rate which in roughly deal. $XX benefits in tax on I restructuring, benefited total a adjusted and XXXX XX% back around historical to somewhere go of

Chris Blunt

we set-up thought, out. go And well had we would call onetime costs business is try add as we consider forward. to distribution did extraordinary we the as faster that broker-dealer so would both expand more we've in has and obviously of to than that the core expenses, some our our that as had to but opportunity I bank, only some an as setup thing PRT We

So if as you're asset last that is portfolio. some kind we the actions of growing feed And of the then year the foot pricing year the base we to took throughout into it's expect million. higher probably as $XX shore,

John Campbell

Okay. Makes Thanks, guys. sense.

Chris Blunt

John. Thanks,

Operator

. your of Our comes DeVries Mark with Please next line the question question Barclays. from with proceed

Mark DeVries

and power of there be been year this authorization? the had it's more that we ago, the actually the you much accumulating from few almost are robust dry the far years Or thanks. combination the to a just earned are that. that opportunities what dividend earnings quarter Should you that two almost deploy and are about that off covered repurchase think that, even the of seeing an is on power later whether repurchase some operating if Or either not or upside F&G in earnings able implied third authorization you guys to through kind could sustain thinking M&A? payout to from level to this you powder? continuing basis, kind of Yeah, a kind of but of Tony,

Tony Park

was Yeah. we our good company. In stockholder well mostly of a of the we roughly in as generated upstreamed Mark. in It's share title was cash yeah, company. your million cash parent a fact, to generation in $XXX a $XXX a holding $XXX quarter, to taxes combination XXXX. And question, about because fourth interest tax through flow million, cash that point, about And about XXXX expense, in strong the about big million the in of million dividend it buybacks in and quarter. was spent $XX $XXX We $XXX of million, million lot

we ended we So the at billion. $X close pretty to quarter where started

ahead, As could that billion $X surprised at another we look if all generated I to wouldn't so we be we or parent. upstream the

we Some of that's and million, buyback in million. clearly $XXX there's the us back the $XXX a quarter announced little $XXX million last cost on over spoken for. bought million The dividend $XXX fourth will still left of year. We

that upon like remaining. We expense. million would and then intend in fully $XX execute interest have I $XXX to million

gain position, on bit And probably spend what so but little cash we'll mostly make. our we a

dividend surprised, if our that. authorization to more there, especially an or your that look wouldn't that, like powder, billion is acquisitions. $X.X under and a us or roughly increase the agent likes $X do I'll so what one, We good it, with might and over annually title increase the available from increase revisit The to mentioned does see But at question to shares speak. call I the modestly dry are always Board pressure So Board could to we in buy be still billion to shares time. buyback. have Randy

ability put F&G rating of XXXX kind FNF locally and XX% can that? capital in the go million, is, maybe buy table, course the deal $XXX on spend year. we'll much they don't experience always of current and does And now, to and does growth single announce to question is borrow every some organically to like real over their million, to beyond. Board million the $XXX We the are those to XX%. have on we continue There's think I agency what the willing we those. how $XXX do. under F&G in And situation. acquisitions then debt-to-cap But

And the F&G, got And certainly F&G either reinsurance question. or at or contribute maybe growth third-party a to equity FNF hopefully, even could or look arrangements. it it there's could FNF. the externally to answer. so look, to capital certainly long your even capacity prospects continue if from borrow to then they was I But know way

Mark DeVries

near for you And historic have to high on that a continue you kind it have you up impact view to, that, of kind here? low did, levels. if your for might believe kind bad although impacts see what held Tony. steady see spreads as had But us Chris. then business, through a could rates of they're alluded And of you a rates hard low it's your just higher question there's Clearly, level, Yeah, is at rates March business? talk what your

Chris Blunt

Sure.

think I and rates. differentiate between long-term short-term to have we So

securities. So sitting rate about portfolio is of in XX% our floating

So over it's LIBOR of a I was dropped that instantly. basis feel XXX from just little think points $X it billion -- When we overnight, assets.

So similarly, instantly on we in would feel of terms it earnings. upside the

takes more from probably I LIBOR term felt the us that's say, that here. in the is move just rates rates to rise. move here, unless goes negative, it longer portfolio. for near don't higher think downside we've With clearly rates, up a term as short-term and anyone would it's projecting much into but upside Now than to pain, tailwind I time

insurers from we not a making that low that So I basis that, targets. points, that's spread but hear with put I are. you've environment, rate yes, it XX reserves, life reasons think historical seen are who frustrating. were it's up good your with at we shown tough the tenure and comes as to time companies We've point, our have

generally [Technical to just which need earn and environments. What come continue a to yield curve. we net-net in, can in a a hard up, over CDs, So were gone up now not do grow while Difficulty] is yield healthy advantage sales most seeing but corporate you're on And have have steep treasuries spreads we right need We spread. is

Mark DeVries

Very Thank good. you.

Chris Blunt

I overtime. hope Reinvestment helps. that

Mark DeVries

Thank does. It Yeah. you.

Operator

with Please comes from line question the your next proceed Our Instructions] question. [Operator George Bose of KBW. with

Bose George

good what just the the F&G. afternoon. good add just sort then changes that earnings, $XX the rate to you Guys, on one tax? use way should and just normalized And And quarter, asked that. I just sort of also Or was going us we run pretax a think Hey. million to rate to for think a the Actually, the for about run growth forward? earlier. then good But is of remind the operating rate tax can this this any first

Tony Park

dealer is by $XX on really Bose, million growing had the channel in this the prospects spend in the Yeah, was quarter, Tony. the which chime side. We out I'll and start. would can what core earnings sales really in. broker certainly call, some impacted I on growth Maybe building or fourth unusual Chris

impacted was million $X $X that or So million.

grows So we really, quarter expect the that would then I would and grow. as that, in mid-XXs expect, to each look starting under we're as XXXX, assets management

thumb that the assets general XXX on told think we've total a points basis after-tax in you under of I is past rule As around management. of somewhere earnings earnings,

on Hopefully, than the helps. you that somewhere on So that an maybe lower rate higher F&G overall XX.X%, a And would going I little expect business. guidance title the then forward. basis, that consolidated that think see the a a and what in tax in in tax XX% little the probably rate, than to gives really is indication of we

Bose George

just switching then back XQ And there the actually revenues 'XX. thanks. Perfect, were The commercial. much pretty to to Okay.

some I in catch-up is XQ do bit you You is think little mean, getting - commercial of noted - there do there? like feel a looks you Or fairly good. normalized? there

Mike Nolan

on high I such open it's the particularly the Mike. third don't catch in been and up. performance, at you sustained it's quarters Bose, level. Yeah, side look a had fourth at When think the

I side orders in really averaged both on the day XXX quarters, open levels. high per are which think over we

ever. we're over last it's we were February And catch into little up. commercial month one That tells not ahead it running mentioned on the I opener that best to side. only 'XX, is continue our prior XXX. me bit February quarter had now that February think seeing the And a open I in XXXX, was of really opening last

feels sustained, it, across just said we're and it earlier, I - again, very seeing multiple just geographic So areas. as

Bose George

great. Okay, much. very Thanks

Mike Nolan

Thanks.

Operator

question of proceed John with follow-up from question is Campbell Stephens. next the Our with your a line Please question.

John Campbell

thanks. there. those pretty ask there's But in investments we're Really and there more I'm stocks. B on Hey. I those. WPF the of to squeezing the Thanks A, Guys, Cannae on here. of of big are value Obviously, whatnot. warrants Class like Obviously, one two curious fans in see wanted BFT some for shares, a and Class parts lot there. about and moving

If you could just run those with investments us getting through exactly how many shares you're each? for

Tony Park

math. Yes, it'd shares, many be really John, do I this guess, is know Tony. how easy I don't the although, to

ticker Yes. not public don't one, the the say public, $XXX is wrong, to and that's sure Paysafe, our investment but is, that to the want whichever pretty these I'm investment, million I'm other get name. going Our right? it's I

commitment, $XX one is $XXX in other million a per The we're and share. at

So pretty you the easily. can math do

do we or even losses, have investment. GAAP related in our mark What may out, own it to you $XXX earnings, the gains in our see buy-in. but come don't Even some we million you of had but not that forward to think warrants. earnings earnings to because one, see we purchase it's I shares gain our those trading with about - adjusted in a ahead carve our Paysafe first what though yet, that it are and the market, our recognized we contract, well $XX and it in will

have that's why obviously so price the going bounce as around. one as pleased to very helps. that expectations share Hopefully, the And bounces and that's we're around other Obviously, we with the that But that. well. of

John Campbell

WPF light other the is I the think the And Absolutely. investment. Yeah. one,

about is, that's you that liquidity So I the Is holders? long-term I I that there. there? guys mean we short-term more be should type have horizon the how the you guess, guess, are potential of something of follow-up investment? the to - time a thinking

Tony Park

Yeah.

another. it true value, change. of And at as realize these income that the it's really, long in corporate news fixed it yield swapping it's I It's think it's to good going investment security we're very right we're course, least as the us, hard now. can The of But very, to is for pretty lot that a investors probably expectation probably been on is and in one in for or the good. are, make liquid. investments other have historically

investment yield it's double and you in subsidiaries $XX for an like or And million will, this, that our taking of something triple investment exchanging investment insurance just so like or million that. really, if that $XXX out, over versus could time annually an

is it And guess we'll the probably answer so and see, I wait we short a but for my hold is expectation would while.

John Campbell

guys. sense. Makes Thanks, Okay.

Operator

to There further like back for are queue. call the closing questions no the to I'd hand remarks. management in

Randy Quirk

you. Thank

results, our year team's efforts fueled and our superior We execute quarter in fourth year. deliver record portfolio, by solid to such excited through continues performance. unprecedented industry-leading are our channels are to with and with full of and additional extremely were ongoing title we distribution pleased times able at entering F&G deliver coming maintaining the products investment we while strong prospect results the a strategy new

to value you plan Lastly, we forward quarter will a look progress capital shareholders. to updating call. delivering allocation deploy thoughtful during on that on is you. continue Thank to our our first focused We our

Operator

Ladies this your for today's conclude participation. teleconference. does and you Thank gentlemen,

wonderful And have You time. may disconnect this a day. your lines at

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