FNF - Earnings call transcript Q3 2021 | Fidelity National Financial, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the FNF 2021 Third Quarter Earnings Call. [Operator Instructions] 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. Please go ahead, sir.

Jamie Lillis

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

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

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

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

Randy Quirk

you, Thank Jamie.

net billion, quarter our pleased resulted in very XXXX third adjusted of quarter. are compared XX% to million, with increased $XXX which with as earnings We third to the we XX% results as growth $X.X record-setting revenues both

Title results, for business well F&G to institutional strong channels, expanded position continued while record which asset deliver us new growth. into Our

to billion compared Importantly, sheet $X.X despite our quarterly to balance at cash the holding end Cash share we our grew quarter $X.X returning second dividend. by activity, as of and our to through XX% buybacks our our of grew balance capital shareholders continued XXXX. billion the company on

through the As Tony organic cash in was results. growth delivered will business primarily discuss detail, more our

of a advantage issued of notes $XXX senior X.X% rates XX-year exceptional took quarter, During with interest we the and maturity. million

cycles. we for funded success quarter we also this dynamic varying speaks fund results to with Overall, growth. which We our model business intercompany positions us to $XXX believe loan a their F&G that the created million through have market and

XXXX pretax of comparable title million our of $XXX pretax to earnings We adjusted with in title with the an of adjusted adjusted quarter quarter. XXXX pretax an XX.X% margin of delivered earnings pretax adjusted $XXX third compared results. million, Turning XX.X% and Title title title in margin the

our third our entire our market-leading outstanding to quarter were with position and margins company's history, quarter the by third combined speaks earnings strongest which execution in results team. Our

Turning to F&G.

results driven interest X the since the quarter growth towards into quarter and and by with of We sales this of Total nearly on assets assets end continue grown management our have and are the driving under to assets we retail closed management markets. the management our doubling under very F&G's open This billion, quarter. we in strong more as under growth, of distribution we $XX well at institutional sales channels new increase X% annuity XX% goal our acquisition, way was in be of than the third accelerate pleased to years. an

continue our earnings. provide they an to component important grow, overall increasingly assets F&G's of As

having remain strategy, we of for and the Looking for in our component an to long-term million of also the creation purchased In Share quarter at our reached of price announced fourth we important committed $XX.XX are $XXX while which average third of per evaluate focusing shares October, of shareholders XXXX. through forward, again, will $XX once share value the continue on active week buybacks target, we million allocation were share businesses. X.X million buyback we we our quarter. to first the as supporting growth strategy capital our our an future

cash our first quarters This of announced the the second consecutive is cash yesterday quarterly an $X.XX increase that quarter previous strong year. our X earnings and a flows our quarterly through per have given of dividend. dividend share, Lastly, dividend, we of we the XX% increased from

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

Mike Nolan

Randy. you, Thank

to our the dedication focus performance. our on their quarter and thanks and highlighted, in history. to for care results want I As congratulations taking company's were our the of customers best and employees industry-leading Randy add quarter And my our third driving third

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

title per to were margin the in in The over driven a in XX% record closed commercial year XX in a was a increase file. million XX% $XXX with purchase $XXX a quarter and orders commercial average increase increase orders point increase prior was closed total offset XX% pretax total quarter. XX.X%, in daily increase the results file, adjusted increase orders basis X% Our XX% by a and revenue a commercial million orders closed, fee by closed. a partially fee per in year-ago refinance daily decrease compared XX% the due Total of

For XX,XXX, averaged day, August at the September XX,XXX. opened and at quarter, total at XX,XXX XX,XXX per third with orders July

opened prior versus third XXXX. versus were decreased quarter quarter per year. saw October, by For as purchase were last the with were October, prior X% purchase and activity, in X% X,XXX market daily solid demand compared XX% moderate the as total robust Refinance while Daily orders we levels. up up purchase daily orders basis orders to day, opened orders opened the year. a of for refinance the versus on And the opened continues year's

daily orders the For refinance prior XX% were October, versus down opened year.

orders day Lastly, day of the were over opened under XX% per we by just per total levels record commercial saw third quarter the Commercial increased opened second in XXXX. orders quarter. the

were For XX% day of October, total per October orders over up opened XXXX. commercial

have close orders opened commercial for momentum X,XXX begin of commercial the last residential. XXXX out XXXX, record consistently day per and having will Importantly, with given exceeded as each provide months, in as closings X the in tail and compared we orders territory been longer

has the than offsetting refinance commercial well business more purchase performed decline activity. through with Title the in third volumes quarter Our very and

sequential quarter that only volumes refinance note in may direct compared total while last direct XX% approximately revenue in basis, moderate, refinance XX% to refinance the contributed is forward, the of year. revenue in direct XX% second with XX% continue of it important quarter a revenue the On total third first revenue contributed Looking this of the quarter year. quarter of to third in and

counterbalance quarter was the third refinance revenue. per for fee declines to $X,XXX nearly with approximately a in strong file providing Additionally, as refinance compared in $X,XXX purchase,

expenses will continue We closed to and to also our closely and changes watch opened react volumes. order our in

integrating leveraging our of automation, performance, seen longer-term which focus been this can cycle. on by our our Another and as improved has critical has aspect profitability be our business significantly

more than quarter, X.X to we been have inHere During have on million than Experience to Start their X more through now milestone begin inHere, chosen reached do invited and significant digital million consumers so. a our the transactions Platform as

to transforms close track, and improving have we real start, transaction As transactions. and estate notarize estate inHere discussed, the safety simplicity real by needed the

We but our service customers' solutions, with Platform, Experience their building our market will our market-leading only pleased and with improve to we satisfaction believe with believe efficiency. are it technology Ultimately, inHere we positions product, our combined as our our expertise grow history of adoption digital scale the very in and also not FNF platform, improve and share.

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

Chris Blunt

in the leveraging fully Thanks, from product Mike. our core and diversification At on has monoline This operating modernizing our transformation while the achieved under quarter previously. to year the broker-dealer third boosted have first strategy and X platform. solutions sales Randy up ongoing and a ending both capabilities into in business well-diversified for $XX markets. from September a sales our total F&G, nearly We third expand independent and quarter year, third continue bank mentioned see months channels. which sequential and of turn annuity retail assets from as XX% agent channel billion, the $X.X our management quarter, as in and record sales we're $X previously demonstrated channel executing In our the in billion provider for $X XX, XXXX were slightly of our retail in of of record sales to billion surpassing distribution billion the down success quarter, in quarter. total our We and and leading with institutional the

through distributing active dozen broker-dealer a bank now and partners. We are distribution

pleased are We exceptionally has expansion into markets strong. recent our that very institutional been

in of F&G in $XXX transactions with $XXX issuance for details. sales $X.X achieve fourth million billion the September, quarter. quarter pricing. following XX,XXX million entered in attractive transactions $XXX quarter, billion agreement-backed me issuances additional million the liabilities strong $XXX notes over few also risk in in on and to sales our the million extremely X-month market, has securing And retirees. track period. demand third institutional $XXX volume market assume on secured additional and F&G risk million brief and Overall, of F&G $X.X billion transactions transfer provide an saw to of annuity transfer the inaugural the has June. Both fourth first successfully to a Based in closing institutional pension the benefits we're $X XXXX. pension issued in approximately pension funding were Let secured will of date, provide

approximately flows top $X.X billion, new With of by $XX.X AAUM, these the billion net average line business reached assets or third in driven strong quarter. management, under has results,

generating benefits leverage assets continuing deliver to focused management under management We investment spread. Blackstone's capabilities consistent are unique by increasing while to on scale

to Turning spread.

consistent and notable Our FIA and Total spread and net results be basis investment approach line historical third was points. points pricing. XXX basis FIA points the our product net total Adjusting continue product in for spread favorable to investment XXX with both points, our was XXX basis with disciplined trends quarter strong. items, to in was XXX spread was spread basis

up me thoughts a earnings. Let few on wrap with

scalable multiyear modern, First, third F&G's This leverage attributable shareholders system provide an milestone actuarial onetime conversion to refinements was onetime earnings time. represents common favorable platform, enhancements the significant earnings net and reserves. adjustment in other scale of with million modeling X% a from quarter included to which from items. less effort conversion, over net reflecting This and will $XXX for $XXX a million adjusted than favorable standard was deliver of our with adjustment along excluded other operating a

in-force million. million. $XX were for earnings Next, record business F&G's period the second both were book. up disciplined as earnings, million from million, and during notable sales our adjusted $XX in and the AAUM Strong the third favorable for $XXX well strong as results were In the quarter in $XX net on by spread we've driven record Net new earnings earnings actions were summary, pricing strong delivered F&G. quarter. net items, Adjusted from third excluding items quarter,

financial contribute Our FNF's strategy opportunity have review overall years premiums. Tony cylinders, the firing the FNF and our the is all With Park ahead. sources profitable strategy now further We remain on highlights. to I'll quarter successfully to call diversified excited that, we third about in turn of the growth to to over

Tony Park

F&G Title in segment the We Thank the generating $X.X Chris. quarter, billion, in generated Corporate producing $XX $X.X the producing segment $XXX revenue third million and billion you, total million. with

$XX in net losses million quarter Third million, were recognized net $XXX of mark-to-market securities the gains which losses of to of primarily million The our the whether in recognized versus or each equity third held preferred accounting net of are to and stock in earnings and portfolio. quarter treatment net gains of $XXX quarter securities, in XXXX. includes were the continue disposed due investment recognized be period

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

fees quarter generated XXXX. Exchange In costs million were Title Direct the XX% net with attractive received as on of of bond versus total operating by year the quarter and segments adjusted expenses the $X senior losses issuance as and prior point our from we a increased a increased the to in XX%. a versus $XXX compared of decreases secure. $XXX basis Interest dividends million, representing title-related Title notes receptivity September, to by in, quarter the very as slight in $XX Excluding third third the declined increase and to And preferred billion for quarter and premiums quarter compared revenue pleased able in versus of $X.X X.X% year. $X.X the income XXXX. other in generated with recognized premiums issuance market's decrease income closed escrow the other Personnel very And we prior million of due our XX increased by XX%. our in Title that margin, XX.X% stock XXXX. XX%. of third XXXX the an with We're by interest, of All September Corporate business XXXX. pretax business. segment well of million rate due the title grew increased XX% by third Agency billion investment

in structure. million intercompany capital XX.X%. put XX to billion $XXX $X.X for place debt-to-total loan better capital on debt growth to outstanding a optimize FNF and F&G's also their was ratio a fund of We September

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

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

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

allocation. a capital with end me on Let few thoughts

while Board. Our capital allocation our strategy capital returning We're strategic businesses. remains a key making focus focused investments in on of shareholders to the

and fourth. annual current share interest million debt; Our in annual following: level finally, supports third next, due make our are common generation million of repurchases $XXX the quarter third, continued repurchases. senior XXXX; September the dividend; cash which $XXX on share and to F&F first, FNF's notes, We've throughout $XXX our expense million the into our of X.X%

plan. regard During repurchased price XX share million first the expected an double the repurchase in per quarter, purchase merger shares since million our we October last total, F&G, X.X In million year. previously of we plan organic average growth. the assets price at announced over at an share. year, to And through purchased shares of With X time week last October, average at we F&G the years the completed to in $XX.XX of of and that stated of $XXX we $XX.XX earnings we announcing

of ahead schedule. F&G's Given X growth about that running current year foresee momentum, is we

capital contribute materially with target, existing in XXXX, for For current channel our forecasts, double growth financial its markets. new fourth in believe equity as to in as third trajectory $XXX retail million on F&G a financial well opportunities. from in flexibility to FNF market reinsurance ample of has expect million capture debt-to-capital with we XXXX. to expansion debt million XX% and on quarter. Based in capital funding and is Capital and its the includes this diversified sales to third-party has annual an F&G's $XXX on And strategy growth the with partner $XXX institutional new quarter F&G execute business we

ongoing term investment self-funding. million a that equity additional $XXX required XXXX, may horizon converting the F&G believe Beyond momentum, where is be that to of which existing loan sales point, form be subject But an we will could we there capital. to capital at our reaching and take in level

on shareholder compelling the capital of its F&G is achieve long-term prospects, view defer and capital above, return F&G attractive business FNF the the stable generation source any has return to value in Given returns. growth it all growing target model to capital attractive immediate to attractive into of marginal as our enough the more years order important earnings and we of and creation capital to and support do from to strategically return of a few a line. dynamic down and

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

Operator

DeVries [Operator Instructions] Barclays. from first And is of Mark question the line our with

Mark DeVries

thoughts for driving is is first Chris, How retail. growth How sales was in of of of Chris. interested the My question channel? further product how in is that the be detailed think in agent about And I may you in kind just of is the much channels more environment? much the the of the strength you've opened? this that what penetrating kind much attractiveness in

Chris Blunt

Mark. Sure. Great questions,

in I yes, we're the seeing of strength say So all above. would

core bank had We've comfortable rapid in double-digit is our pace. and independent agent expansion So up BD. business

then that's a paper added so to was year And a has sheet And been in institutional ago. the growth retail. blank of --

incremental. So that's all

say right X would now. contributing I are So all

Mark DeVries

there, which to to think, commit buying where compare has pretty next the of mean $XXX Can trading over back of historically talk growth FNF you capital years. like then of it just couple lot Tony. how discount a traded? I here, stock at that great is returns the material to to about Great. And there’s sounds million, Okay. I fund equity may and it of up next question a for you

Tony Park

of I allocation up already $XXX above form we believe important think funded equity million F&G. strategies. keep which of that mind, But in is Yes, million in convertible. $XXX capital it’s easily in we’ve all are the that to the a toward note, of

have during of some -- But authorization $XXX but share a terms very Board is million, million XX I over the window as but of parent the bond we cash course that We excited to still the the standpoint, buyback, bit million blackout the in period be paused capital million quarter. towards bought quarter or back $XXX the a in market shares. would were gone. -- we -- deploy because we talked were from I that soon the continuing company about plan we is $XX only offering. a expect in probably months $XX as little So existing. while And shares opens, the completing we And the blackout already would Otherwise, will $XX in of buybacks back we on is working million about the a have buying window Board more a back

Operator

question our of And next George line with comes KBW. Bose from the

Bose George

modeling we of kind can growth? kind of And Actually, one operating growth, with best that that income of AUM track the is more it now? just in the -- to terms essentially do way

Chris Blunt

is This Yes. Chris.

I think right. that’s

tax. that’s expansion net little beyond you a we’ve talked growth, AUM a think I thumb out number still on X% including for I And assets, bit that. spread of of kind a potential think of rule of of the good as with everything, model about

Bose George

sort of from touching the guess, question as then subject And just last I actually well. Great. on, Okay. the

terms market extent doing other drastic cetera, et not the really tracking done could spinning the can of the the appreciate consider does that there of be done could there it back are something you’ve to the out, the sort -- like that the are in interim of like of things and in at stocks alternatives in sort other past? F&G what’s there, done terms help? being Or that showing valuation you in - In value,

Chris Blunt

Yes. Tony, this is Chris.

You want me start? to

Tony Park

Yes.

Chris Blunt

options. quickly. on piece whether the capital probably -- the I’ll that to would doing opine reinsuring just deal Tony new pretty range let block other on be utilize easiest our some or more would sales, I of of a say free-up lever some would that’s some flow of sort reinsurance,

Tony Park

mean I that’s think Yes. right. I

is at mean grow channel a the I we’re building think to this that asset I growth, thing. here. our in opportunities view the great the sales earnings the portfolio look growth,

and I excited As schedule portfolio, the a ahead mentioned doubling of we’re we’re and terms of earnings in about earlier, think I year that.

people perceptions will being, some do currently our getting if disagree price, and And second I part how is and currently have not that. that we share little in to But value we’re so even it road. of with don’t different And later there. then create down of any with we that And value deal different get the we’ll form that the in I of continue recognized, that it’s value much that a the for fashion, recognized. be time think or kind believe

Operator

comes Andrew question next of Suisse. the Credit our line with from Kligerman And

Andrew Kligerman

want the to follow kind of on title at margins I up pretax. XX.X%

consecutive fifth were you you Maybe a some the we guidance could it’s normal? quarter at think fall your range? help guidance where your might where into are I XX% in XX%. to yet it XX% Or scenarios is better, just new or give

Mike Nolan

need strong than that very moderately it’s commercial solid about a refinance record-level we market we And XX% number. higher we just we’re market. XX% weren’t get and amount a market, And talked really number seeing purchase of would getting We’ve Andrew, Mike. said the purchase the strong a of pretty to years. a refi good always commercial to a with market. XX% even to time, to And probably potentially for range, along better a end and the of for decent the

second the So and expect last was year history best. third performance where I -- probably market the the can’t we refinance volumes margin that certainly on maybe refinance to in And that, dependent country. will necessarily example, this the or of best are, think be volumes, be for year just

solid to go we’re I our XX% said to mean I that, XX% change function margins we quarter, of into strong it’s sort I think we be to expect time. be a range as don’t next of very year. Having of that at ready this But we expect and -- the So that. think to all margins very fourth

Andrew Kligerman

really Chris, channels for sales that robust. there. are I you’ve get And And Okay. the got new

given in we be What FIAs, you off? you go flattish? as toward are into XXXX, particularly the tapering retail the MYGAs, see that growth kind Could we these areas, thinking As in you’ve for And it targeting had look you MYGA the of XXXX with a do also, this are types while? write you on that new volumes, new sales business? channels and that, of what as returns of terms FIA capital

Chris Blunt

Yes. Sure.

of year, I So agent I continue than to One, of we’ll a that that would say be good expect But growth better although things. couple obviously, core our and think And see BD. we bank can’t in double-digit would keep every doubling I out business. nice. would

the fully not add. and broker-dealers we’re we’re We’re to and still penetrated through selling today, that in continuing banks

a had another for to relationships guess. probably we’ll add dozen if year, I half next So example,

So growth out you’ll BD. of good I growth core think see agents, bank out and continued of

growing pretty side, has been institutional market market. the like dramatically. FABN the That On we

to in more unlimited write but space. know, been of As pleased there. that, think our really And write we an success we’ve capacity early certainly you the can’t PRT business amount we have with I

total pretty decent want But growth we would from next say to -- would So year. think number. I all wouldn’t an give actual those channels we’re I coming I envision percentage

pricing. But don’t of relative particularly of quote In yes, just don’t we individual we’re returns, ROEs, getting other the -- terms attractive product alternatives. I’d to company’s say obviously, we some

Operator

of line Stephens. the Campbell from is with question next Our John Instructions] [Operator

John Campbell

some got guys F&G. company -- the billion have earmarked continued mean like sounds I $X.X But still holding I in the think do success. cash. for on Congrats capital It you’ve -- you

a think, you’re I going from generate ton free of here. obviously, to cash

expirations. Obviously, the You’ve investments. kind approaching liquid will more and lockup also across in got over Paysafe $XXX be LITE million of those

cash obviously, So to with over be time. flushed you’re going

might talked M&A, your the time? on talk But a it’s sense And then acquisitions there? to pegging to of of buybacks. potential here. the You’ve the from that, tough But title are maybe nontitle about get us to appetite make about you over kind payout M&A, chunkier us just dividend ratio talk what to obviously, beyond and for appetite where level

Tony Park

title John. company It’s It’s in Maybe cash cash. Thanks, a and Mike Tony. right, fill the good to important Paysafe, acquisitions. continuing money. know Yes. are the actually you’re can to I’ll start. got we’ve Yes, LITE those and of insurance lot generate that with on

money. parent point, we company isn’t strong about that were liquidate at our $XXX that that, annual company. it’s if Having isn’t cash talked insurance flows cash the said dividend. the That’s the generation. portfolio. to that part Even So commitment those We some million to of of

You quarter saw increase now increase a raised times last XX% XX% we in X this that another that and quarter. row, an

September the comfortable and But of ratio. of want And we a very it’s a payout shareholders continue due that with about bonds next not kind targeting that, with the money, necessarily form come to We’re to dividend. revisit year. in this of see think if that to back in we’ll important talked increase give cash we to it. We

well use a do going we is I of and we going growth. strategy part as have million that buybacks, that our to talked cash. there $XXX be an So about important F&G obligation as funding we’ll And think forward

cash So over months? we we’ll continue or spend you don’t know go earmarked our next year still XX left. of -- Mike, There’s the are going to want we weigh have update quite not. forward. Probably bit in... all to if we But you to yes, And as a I

Mike Nolan

the the to company, acquisitions. the and a always add of opportunities a things. on title for value there’s John, add on it’s to acquisitions agent add side, I’d number few continue that whether to we’re lookout Sure. can

sense. that that them of be overall don’t it got if businesses real -- lot them. those. We’ve could potential strategies of But and side, technology be estate that want smaller, We’ve when our be businesses there We And up act going always to have then beneficiaries makes We’re a businesses. we doing a announce number are on got just of our acquisitions we tech the we for non-title SoftPro things title just acquisitions ServiceLink you not with But on. do that always we’re something and you sake. digital acquisition’s know in could shows to automation. our don’t know could And additive. also

have up. move opportunities it quickly So to when those some be good cash able to can show be to

John Campbell

makes growth -- Great several AUM net mix of then, of years? spread quarters couple for bit to X last quick out doubling the that’s just bridging foresee the years, sense. first, then, results Obviously, X picked of the quarters. of Yes, or And great. kind about by over curious, you moving next last X Chris, good you And channel, relative that has out the up the how a far. the questions just kind so I’m to here. guys obviously, that investment

about So just that of what’s driving the it? strength and curious sustainability

Chris Blunt

Sure. reverse best in the to think way I And think about it. order Yes. is maybe

So great really did job, source partners to us. investment-grade Blackstone opportunities at our continuing a for private attractive

fuel kind so engine, which of sheet, smaller number to is in And relative of our relative balance our a our competitors. particularly that’s to the

crediting will in where scale years time, billion that we’re drive over of kind $XX that’s So that’s the to getting significant diminish we somewhat of Obviously, of expense has Adding ratio. terms the edge think I in in helping assets of as And offset benefits. is some scale, come but from. also terms future. down

of kind competitive the that’s So dynamic.

channel to up from the in perspective, think for or X channel sales. we’re independent number I X number a FIA

good, share healthy a got there. we’ve So

partners see number that I that a any more don’t we little We’ve channel there. position started. market. It’s some write I time, take. player but And the probably bank and of broker-dealer, more just getting why I’d distribution we the dozen about be our over in there’s think we’re amount huge limited, a can a say reason in we share couldn’t got now. X and just given today business

already that there’s go deeper ones partners have. of a the think I lot with capacity to add we So and

I going much of is funding continue So market think sheet. But I upside got to if so notes, particularly near the on agreement-backed that’s think grow. that to you us. for term, I uptick as you’re then put PRT limited, mentioned think FABN, interest significant business, we And only before, in rates, your that an capacity. get can I there’s balance see

growth think I and core bank I would them, you we’ll channel, get our said, growth order if get rank faster -- agent BD. in in So

very hitting going growth and pick sure get return our although in strong can we I to PRT, our think spots hurdles. we’re make we’re

Operator

Mark question line is next Hughes our from with Truist. the And of

Mark Hughes

next that On sign that commercial, pulled a Is from is volume there is maybe around being tax that any the forward of year, thing? some considerations?

Mike Nolan

X Mike. is of in orders, X,XXX happening. now any That that. bit day performance before have we best. once evidence did It of that orders, you be XXXX. at pull a the XXXX. of only anecdotal would was look our quite have We that's opened This heard Mark. That's months probably commercial length Sure, of the that, when not at don't February orders I per forward. And in

really don't small it, see there but of I but So hard just might know. to a amount be it,

Mark Hughes

inHere, mentioned revenue either your Does you if to mean had mix X.X had that I accepted profitability or you million think, get for more offer. that, in Then direction? material anything that shift

Mike Nolan

the for say buyers would I secure about think way a And is the not give it creating digital environment, the on because the end-to-end and front efficiencies to the us including not end it of kind in they production It's participants, initially. does into information e-mail, to system. transaction some sellers. our directly an provide the doorway really -- really

that documents for X.X that with I us a we're path it of to -- of think. the is excited just and in we're since for also cetera. of little et tells and XX%, just But lead very the looking that adoption we down final feel we're of execution moment, the way up doing that just the the acknowledgment the the be for there's more to really And large a close leading efficiency that which us we've of the digitally, form, and And will a bit rate pretty transact. to about will more inception, wire platform that the safe seeing getting a built that closing. over time. information group are providing then better terms gaining And consumers fact us like the different So for million a transactions the differentiator security over

Mark Hughes

interest X% up past you’re your And when But we look just us to rates rates? been should for in to start start increase the one see interest gave -- experience for moving spreads rates here? widen when in then move has got do interest What return If up, the times we you you the if Chris. number.

Chris Blunt

happens. And depends Yes. of point, it obvious Sure. that rate but some on how increase

get any more. increase one-for-one a we benefit in would LIBOR, So

is of into floating And to higher products. then going there. to the a a of a X% longer deferred So get if X%, on pretty some you’re And we easier about securities. got little rising versus XX% little just end third be portfolio in just for a bit generally, spread demand takes for tightly there’s component because see would offering fixed rate to we’re in rate our core the demand capture that. longer The curve the portfolio greater Obviously, but benefit annuity environment. ALM-matched, a you

those would are I benefit. think that X the So

you pretty over and some would quickly some impact yes, time, incremental then I So think impact. see

Operator

reached have turn for question-and-answer end now we the over Randy Quirk call remarks. I'll And Mr. session. of the to closing the

Randy Quirk

you. Thank

the We quarter for Title our with our continue business margins execution pleased our very strongest the delivered history. earnings company's to be team's third in as and

also team is open growth market improved to earnings. Our asset an which we new high at F&G continues accelerated as extremely opportunities, driving level and execute

quarter to fruition to Taken business our our as on of as together, F&G for of updating begin forward to designed model conditions to come is we the you look has strong It We with the change. and company well building model. our fourth call. that earnings very earnings market you to a transformation speaking see financial as acquisition deliver vision exciting are a

Operator

at conference, this lines today's may concludes this Thank and time. you you for And your your disconnect participation.

Fidelity National Financial (FNF) 3 Nov 212021 Q3 Earnings call transcript