FNF - Earnings call transcript Q4 2021 | Fidelity National Financial, Inc.

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Operator

Good morning, and welcome to FNF Fourth Quarter and Full Year 2021 Earnings 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 Lisa Foxworthy-Parker, SVP, Investor, and External Relations. ahead. go Please

Lisa Foxworthy-Parker

and operator, everyone. Great. welcome Thanks, again

for future we may include and Securities any Reform not duty a not the or We under reflect as information, call earnings Litigation subsequent reports, guarantee do which Please such that most today's our to and to actual new reminder, differ events, annual Act, or strategy. forward-looking undertake Private results performance. of do to materially Before expressed recent the other and a begin, could cause filings from events SEC update statements refer statements revise factors or or projections and changes discussion quarterly to in implied. those

believe business, in of material are release, conference financial X:XX performance We also on through our press today you'll metrics company's It available and will replay the website. which be relevant also be Yesterday, on a X. March through replay be will certain we Eastern www.fnf.com. webcast non-GAAP at assessing the beginning discussing will reconciliations issued on the earnings for telephone call we at is measures within of Today's PM find available these available which this website. our available call,

to forward Park, turn to Tony me Mike. over that, I'll addressing CFO; our FNF your and and And results our with momentum Blunt, Joining F&G to morning prepared discuss CEO; conclusion we of Chris this CEO. the and Mike questions are and business the are now look We Nolan, remarks. seeing following further the F&G's call detail

Mike Nolan

forward. for in leadership thanking also I industry's look good title building Bill organization to support over would almost Thank and like to morning decades management. going and assets continued start as their of fourth and optimistic performance our results title growing incredibly as We everyone. I'm you, over expand touch I forward thank and their our have provide to the and three I largest have such the announce future the momentum quarter additional four on of we of by their of industry-leading Randy role pleased remarkable XXXX the the I'm year. I'm built the Board's incredible I business I for that proud CEO. their established for under financial business hard we like but continue on support the FNF to building the of assume the highlights while we Lisa, and our to few performance F&G's efforts. on for Tony the their a year. for would commitment like last in delivered year. without could shortly, to will details would work also not employees first the quarters strong appreciate

title results our business. quarterly by performance and was driven year outstanding record from Our full

a opportunity while remains existing continuing above growth addressable the results. F&G success increase diluted As year more of for also $X.X earnings increase or momentum in generated fourth quarter and full expand fee million over increase revenue their purchase for gains and million billion year. record as a year lower over in ongoing the full This full in per significantly and offset grow and a year, XX% quarter F&G continue volumes XXXX. contraction strong impressive quarter, XX% a they billion increase billion over fourth strong consolidated than were for full expectation the and the $X.XX for and the $XXX XXXX fourth share net markets. $XX.X full XX% the per earnings and new net the contributed total $X.X recognized On revenue residential refinance basis, excluding billion losses was and have in commercial which file. to over to in $XXX quarter, sales the quarter Adjusted to channels the XXXX. market a the X% a year $X.X XXXX a of

sales the XXXX. total F&G For quarter, increase over billion fourth the of delivered $X.X representing XX% quarter of a

year, year. sales the were full double $X.X prior For billion, total the

with assets December XX, our ahead our doubling five commercial were file. closed at $XXX XXXX, acquisition. Total a of record orders increase over increase management in the and commercial time under the $XXX years total we of million $XX.X total quarter was which Importantly billion a well revenue XX% fee compared as million per at the under outlined by management driven assets XX% of is year-ago goal of in

orders averaged per opened For XXXX the total quarter, day. fourth

XXXX were activity opened solid and as see orders year's levels. compared robust moderate to demand we refinance total last market January per continues day purchase as For the while with

type, trends up year. purchase X% order quarter prior versus in were orders the by to Turning daily opened the

For January, X% versus daily a basis orders by were daily opened quarter last opened from Refinance XXXX. of orders down purchase on XX% January. decreased fourth the

the year. prior For January, orders from opened XX% were daily refinance down

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

January orders For per of up over 'XX. were commercial XX% January day opened total

closings November to XXXX, compared During February per in the exceeded residential. over longer as X,XXX momentum having just XXXX to orders day record XXX been This given January. provides with commercial ongoing day as December, per in we territory in in tail over commercial rebounding per and consistently to day from for before opened begin X,XXX decreased slightly

being the Our is cash our capital which company shareholders. of at strategy the focused is despite was on quarter quarter. allocation from to $X.X unchanged balance billion fourth active capital end our the with sequential returning This holding

returns our for making strategic to investments drive While our of and business in stakeholders. growth profitable all attractive

and year, returned shares to we million $XXX last our shareholders. $XXX as we over dividends million common of of million $XXX in capital the paid have Over repurchased

reflect entire speaks the adjusted earnings market of the fourth outstanding best history, with the quarter in leading the in Our which performance our our quarter team. position, combined company's to

XX% closed. per of in increase record-adjusted in increase XX.X%. closed, over a in margin we and offset increase fee commercial title orders The million $XXX the refinance of by by For orders prior XX% adjusted increase X% a were XX% purchase earnings total pre-tax the a an and driven in results a quarter, daily title pre-tax daily a partially closed, orders year delivered average XX% file, increase

expect to Looking the given XXXX. as of direct as residential ahead, we total policy and of This of XX% refinance compared the for rise fourth inflation revenues tighten portion be as XXXX. Fed in XX% contributing decline interest in the ongoing revenue XXXX the rates have direct fourth expectation outlook a smaller total the volumes trend throughout refinance through approximately to an for the continued to quarter our quarter of is with direct year. revenue

file declines approximately $XXXX fee a about per of the As per is a approximately file which revenue. the in purchase third quarter of refinance strong a refinance of in to fourth reminder, counterbalance provides fee the $XXXX

to order trends We manage adjusting margin volumes. by in will evaluate continue and and closed with expenses to market align opened trends

continue Beyond in of operations. growth, progress a on across including our number our to to we technology title innovation, drive results, fronts, make investing and efficiency

in with operations ongoing residential first the our estate are rollout our Estate In closing direct as addition XXXX, of At as title and app operations touch with agents. we agents consumers eligible leverage of Platform. independent estate the start and mobile real our for for and direct pleased end our to title for residential our solutions inHere brokers, market-leading in inHere inHere XX% agents leverage real very of Real Experience Technology XX% portal with investments, well the the of Solutions our

and and Given profitability. grow our profitability, experience, have our make investments resources customer's we designed improve and industry-leading transform these share market market share the expertise critical to to

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

Chris Blunt

for breakout as for level, of $XX.X achieved sales prior-year under highlighted. December a the year, Thanks, $X.X of year management Mike. which record F&G. XX, double as billion was XXXX assets We ending full the to boosted Mike billion

successful we expanded our execution importantly, established agents risk More bank, channels now one initiatives. back pension XXXX broker-dealer, with distribution transfer, from note of and channel agreement our to five further funding in independent the

were Our from Full from $X.X fourth quarter, retail XX% year the the quarter line sales up in prior-year sales quarter. of record year $X.X billion billion, from FIA billion up up retail totaled Core quarter. $X.X the prior-year XXXX. with sequential XX% sales full totaled and X%

with XXXX to have and grown With XX% new our success from we by channels. ongoing five are our agent that broker-dealers, independent sales growing to broker-dealer year seen now continued sales and quarter, bank this of full channel and have partners in expansion XXXX. compared XXXX and banks We in distributing in distribution million $X.X XX through billion $XXX

Institutional Markets. Turning to

totaled remain across management. Our our capital. our a disciplined our funding year $X.X on billion, benefits the flexibility $XXX million full judicious transfer in We're $X.X in pipeline sales comprised generating channels, launch billion now and in robust into transactions, and and has these of pension increasing sales and our focused excited about markets will to $X.X agreement five risk deployment billion growth distribution fourth issuances. XXXX. quarter see totaled under assets we pricing by in optimize We're of scale F&G in and

leverage to we Blackstone's double-digit grow FNF, spread. on This management to year's capital contributions expect a to strong outpacing deliver capabilities capital rate, off a industry. and result self-sufficiency. growth places continue unique the previously with the investment record us Building continuing consistent last sales to from While announced path to at

spread. Next, turning to

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

well XXXX of for assets million time at million both pricing and from acquisition the in earnings we're quarter third were well driven assets goal up FNF. management were under of book. the of $XX basis excluding spread over $XX new results few XXXX, a we points from ahead on the earnings by growth. reflecting diversified our in-force has asset $XX of our as with XXX in the up record growth the by doubling from actions quarter outlined by on five In notable return executed million sources business million adjusted our items wrap AAUM me $XX adjusted driven fourth strong earnings. strategy, and summary, our as net Adjusted fourth and disciplined $XX during XX% the million quarter and years premium of on net F&G's Let of up million fourth thoughts quarter or in on or we an XX% primarily $XX

asset drove sales strong growth and profitability for the solid record generated year. Our

well-positioned highlights. quarter now assets the while that, are With Tony to sales turn we ahead, I'll Looking spread. review sustainable FNF's fourth and call consistently growth financial Park managing for in under to over management

Tony Park

quarter and capital Today, segment, up in for driven across held deployable recognized portfolio. preferred $X.X trends I'll in generating with with earnings XXXX. Chris. includes performance the boosting Fourth million. focus to $XXX $X.X billion, million disposed quarter to title are pre-tax liquidity. be titles results, accounting our we net of the and title the treatment results gains investment title you, due record earnings on our and million Overall each revenue wrap in strong revenue recognized by the our F&G segment the quarter $XX then whether I'll stand of Corporate fourth or gains margin, were net billion Thank the of the $XXX million, gains where billion, my net We of comments securities $XXX quarter and segment which securities stock period in The quarter mark-to-market producing were recognized net and generated and growth. in sales equity producing F&G the were $X.X primarily in of asset fourth versus total continue on

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

excluding an was XXXX, and volumes XX% as For which XX% strong decline refinance in year market increase a gains XXXX. in over of XXXX. full topline for well billion revenue billion in billion and This robust profitability. the a $XX.X generated driving demand F&G full full earnings, year XXXX, the strong $X.X increase saw year despite full-year across over net $X.X in reflects generated losses performance mortgage growth as together the we record Total adjusted

Next, the to title segment. turning to QX specific highlights,

pre-tax XXXX. and of XXXX. losses title the revenue, generated Our by and the expenses year margin billion in, and $X.X increased $XXX in recognized by $X.X total Agency segment other increased XX%. net costs in XX% roughly XX% title XX.X% fourth adjusted the for fees increased by billion generated the prior of increased escrow compared year. in with operating by a grew in Direct X% quarter, XX.X% the business fourth XX% All the premiums Personnel quarter million premiums in with versus excluding title-related other versus quarter the the by fourth quarter. line prior quarter of title

increased in segments in million adjusted XXXX. XX.X% Exchange Corporate million the Importantly year XX.X% the income. year as business prior the income due in margin to slightly with compared and well pre-tax $X $XX XXXX preferred dividends to as title full full-year compared investment as was declined Interest and and with stock by Title decreases for bond lower interest quarter

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

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

totaled the and in and of having corporate We titles with million record X.X December billion and $X.X an of growth well XXXX. average maturity invested at included prior billion $XXX generated with short-term portfolio $X.X equity ended average $X.X quarter from title of holding of of billion XX, which organic $X.X in short-term $X.X duration billion billion quarter, of liquid net cash line the and an as AX at was generation securities, In preferred investment other cash as and Our the company cash. and level. years investments, rating fixed investments assets securities and

a capital and on few with thoughts liquidity. me up wrap Let

capital allocation the number of priorities. remains current cash Our generation Board, our level supports of key a of focus and a strategy

market shared as channel capital of First, and last continue Technology and F&G's capital growth they committed expansion million growth, opportunity strategic a self-sufficiency. investments in continued to to we are to support million $XXX addressable strong $XXX path in This strategic focused on to as on Title near-term funding making to support continue quarter other investment and encompasses the initiatives capital organic businesses. innovation

well As an acquisitions and title estate-related or businesses, adequate as real technology aligned strategically for M&A and agencies, capital buffer. maintaining

to This debt Next, for line outstanding, ratio, of which in $X.X $XXX corporate senior our FNF's total that notes XX, in million December billion of with capital will to target. debt X.X% regard a on debt is includes was XX% XXXX. mature with September long-term

million. the XXXX. with common market our XX% a annual And dividend on And repurchases during into regard for the share outstanding uses time. return increase is $X.XX expense time reflecting quarter $XXX expected reviewed capital, to and Subject XXXX, and excess to debt first as and and cash sustainable. flows, has over per of The over alternative dividend continues view per interest approximately annual Our current to dividend quarterly conditions. our our FNF of $XXX total throughout cash $X.XX active shareholders of to share finally, paid remained of is quarter. $XXX growth fourth dividends to million million, share next, dividends We common we in a in common

and the a $X.X average $XXX total shares for quarter, per we million $XX.XX of of price share. an million repurchased During fourth

year $XX.X million $XXX million XXXX, of full of at per price an share. a for the we average For shares repurchased $XX.XX total

and As $XXX we all XXXX we share dividends shareholders conclude, million to capital have into Mike that mentioned, with on are over highlight are in would cylinders through businesses good returned hitting XXXX. our I repurchases common of momentum. coming To our and

and preserving are margin, in annuity drivers environments. solid, rate fundamental long Our history different a spread we title and both of have

to shareholders. our and shareholders on results well and We sheet are strategic flexibility have for customers. investments continue to And deliver strategy positioned return and balance to we capital execute

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

Operator

comes from first question Credit Andrew Suisse. Our Kligerman line the with Instructions] of [Operator

question. proceed with may You your

Andrew Kligerman

here that Where that Do rate that's just Maybe the for Blackstone's would element - the to in have then first yield. do from quarter go floating number, X.XX%. of can X.XX%, wondering just where course. to and a of a expect from And first of what go? -- around question question X.XX% kind you terms pretty up yield jumped Ex-yields we we maybe it F&G investment from I'm and robust would it? doing? be last year-over-year the at

Chris Blunt

Clearly, Andrew, it's some are bit some CLOs. a a boosted doing? was I'd things. during prepayments of say it you How with the Chris. couple quarter of

whole And good we There's of pipeline The look of see of for origination so that you if feels that's say income. would based loans upfronting like sustainable at I and a prior opportunities private little the very bit pretty a there. what remains a opportunities quarter in X.XX% on that other robust. of us But number now. a our X.XX%,

guess stable, on see long and would events my say, that obviously affected have be how would outlook spreads last. best we'll I volatility So today's

create floating-rate is of in floor. could have floating little a There's marginal impact our Securities, of a opportunities the in some rate. lot originations that So XX% bit forward. of LIBOR but portfolio that, going recent a

kind a So all that's worlds potential the limited of downside best on some rates upside. and where of

Andrew Kligerman

XX.X%, that XX% a And somewhat get Do go it's to then feel you change mean to when does where can to starting your guidance? that I respect title margin, again, very you range. with sustainable. a that to compelling into just point XX%

Mike Nolan

still Certainly, think Andrew, past it's don't in few and as margin change really tied the that that But incredible to can margin, certainly position years. your margin. Mike. do we've expansion I a volumes, over and yet. just seen fantastic a to those we impact we're transactional are

that 'XX still we a good very we commercial I going is at record on out. which in 'XX think the first that be margin And we will Strong that still that today you got you've about strong be good. but at down, market to look January, area. year. one all-time market is than openings 'XX, revenue forecast in the be, coming will was we expect a an tremendous in what as very come stronger inventory As was first which be think to can't tell quarter. purchase least in And that had be just we then it because got comp to refi's refi quarter maybe We've

of the then may think through. we be of we because an down 'XX, our slid started go year highest year, refi's, that through out. went As for was as coming less and of January kind actually through I Really the went effect, refi's openings those the as 'XX

Tony Park

This first is on it's And direct now refi in the in And, told the down that. year. second fourth quarter, of of last XX% quarter and third maybe went quarter, the I'll the as point, Mike's the we've XX% just add Tony. to To was revenue our throughout in to sequentially XX% gone XX% in was you, it year quarter.

that's quarter refi's clearly and don't continue look the going first coming we to down will XXXX, yet down. of like what So to exactly so. but it's Yes, know trend

Andrew Kligerman

at amazing an And maybe one mean last one put through I if the I just what you F&G. trading the it whether quarter peer basis And I versus look absolute only under Not I could was an on in. And Title, group. your and be at mean seven our year. sneak better. execution it's but couldn't just estimate next times for stock low

you management a and capital standpoint? out? you to valuation you about do ramp Do where how you up? repurchases at F&G? ramp this do What management? want you decent want was pay year. thinking up capital Do last react there? to Dividends go Do XX% you from with about are something It From that So that? and to

Tony Park

yes, that and return It's and million in. six that $XXX like on thanks, including Yes, earnings others six times us around shareholders $XXX $XXX to But, our did mentioned on earlier and or or certainly, $XXX based something buybacks. under last start, times million were Tony. over that we can I'll the probably isn't Andrew. year lost it worse in dividends we in about or million in happening. million comments what's chime Currently,

in we especially could But, the with $XXX were We see market yes, I buybacks. in quarter around the with continued are market, in fourth weakness. million the in

participants. disappointed coming frankly, to does We're want talks dividend. a think buying We it clearly minimum and a the price I But with shares. don't lot, to I yes. back look buying in $X to and and don't The people. have a I at we a And give pushed be this opportunity. number But, the it's shareholders a billion year I is other that return think great about Board in think should a in all give. welcome in the probably number because combination share

course, but more It than we'll Of could be see. that.

Andrew Kligerman

has about F&G you still been And part good do with that, of I being But the feel that mean company? a stellar.

Tony Park

not now. very there. I we that, them the we get, that mean, $XXX $XXX might but we're We be recognition F&G capital we'd convert we talked right to actually fantastic. important loan million And the will in has fairly equity and $XXX Yes. million limited. And in about another value capital Clearly, been growth know needs year. us of getting like $XXX that we're contribution an to XXXX, that's to do. equity million million anticipate building We've do that that are XXXX. The loaned likely then last or

there share there, earnings the in don't, aren't and and something needs to our of growth, performance, we recognition and really have over out. contribution we expect the figure price if will that love immediate the see we time that yes we'll the but growth, asset So

Operator

Our DeVries Barclays. of Mark next at line from question comes the

your You may proceed question. with

Mark DeVries

you. Yes. Thank

on stock? lever Or to wanted a prepared to Just of up you get of buying management-led topic. room Tony, accelerate terms what are to to even you've buyout aggressive Is in here? return the how done? there up capital the back kind even guys follow company of have

Tony Park

billion, $X.X is on good based flow cash expect a mean this you XXXX first know generation - we there Yes, have in hand our forecast question. I of cash all, strong at and on as ample at it's point.

that of a is undrawn, debt have and $XXXmillion to an line have XX% also We we credit capital.

you but cash Board what our can't for wanted I terms clearly at if $XXX uses of room this September. point the to But, is debt to lever there of there willing in as we earmarked up. would lot cap, in bonds of I speak things. have We involve retire is we'd million the to under be mature that your a know may hear ways a challenging of insurance lot share is there clearly don't which different company, we like, do. creative whether to to frustration, I look do an be LBO of it. would but debt,

I of too question the happen price, share terms I anything it didn't a know I'd think and but suppose some of than lot room. your I guess for almost - at In level can to specifically cheap. I gets answer other if say, us I we do have

Mark DeVries

Okay. Could No, a the still, give commercial. for that's deal on thanks the then helpful. trends seen color mean it order sense And like you us like some you size. of in I of Are of a higher were transactions the How thinking is that guys business? in quarter. rates on the fourth are strength how bigger commercial the about you holding the And up? of big impact part the

Mike Nolan

Mark. Yes, Mike. sure, It's

at the you in On of fourth the think look per I fee history quarter. the that's And in deal highest company. the ever can large in number transactions it's national at first been any of in quarter just a size question, clearly, the XX.X%, average file had the

around fee It fourth with it. the market point interestingly we see to interest last was rates, a continued little this local little per in up a mean, dispersed classes. strong fee file in also though actually in And interest but quarter geographically into asset your to saw per the that will third something I fourth file stronger not. also increase We than we a enough continuation. growth it's in it continue to so local the broadly a rates impact quarter, that tough the how really know national, across just showed the believe was and or And

off impact rates of activity. potential And as but still rebound up still awful maybe be be But to be some seems the could down over of of going me. just go months just lot of I in amazing guess an to at we there is that to commercial is into the effect XX last year had a there that think guess X,XXX I now orders I for XX kind capital day XXXX.

Operator

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

proceed may your You question. with

Bose George

on earlier. Just follow up wanted margin to questions the

commercial where seeing think that now to sort think what XX% year? purchase given to there end strong and mean, I in is - Just you of up way XX% could you're and mix of declining a about the refi. range, with this you

Mike Nolan

Well, just say, I margin on again, strong give guidance and improving margins, would in on very to we're a commercial have strong XXXX we Bose, expecting don't but based performance modestly purchase.

we go said, four, and the we to purchase kind think take years robust to to significantly the market, to I get good need it always be when range, of of the back refi end strong things. five really can about upper what commercial, strong we you range, that get talking would us were said same wouldn't and A up there.

to on a we margins think I put specific So can't what going like. still XXXX have look that we are but feeling, number

Bose George

do actually, helpful, up what just the for you year. that's terms Can income? discuss to six times this to rate just To extent, the Fed expectation then thanks. is And in interest times. seven could net of Okay, funds that

Tony Park

it, Yes, think But, title FNF portfolio, that I short are and portfolio, the of spoken to in. before. of side won't where chime we've this Tony. I duration. is speak is But may with Chris terms F&G which pretty to the really Bose, rates the in they

it of starting for out hikes it target, You for in like looks million we've hard we mapped income that maybe a in when run landed kind we the a in rate interest to a roughly million March, assuming investment of quarter. but rate $XX more. they the get to up, and fourth It's at quarter. $XX moving how It's can increases many show know see where bit

In million Exchange XXXX our those or rate that's benefit business $XX our of fixed there hikes cash quarterly rate and - that and is not it That's our this preferred. QX on investments from really investment impact those call in following would So hikes. interest maturities there in our and year, no short-term really income. that

Operator

comes Securities. with Hughes question next from of line Mark Truist Our the

question. may You with your proceed

Mark Hughes

Yes. Thank you.

rate. Happen run curiosity by. to I for it's refi know down out order Just January, of - this have of that close the one daily

Mike Nolan

opens last January earmarked. over year down January XX%. That's were refi - of

Mark Hughes

actual But January? then have the for you order by day count

Mike Nolan

Sure. X,XXX orders.

Mark Hughes

I Yes. ability think mentioned in about there? PRT Chris, business, describe the to into right. pipeline, your And are to you've you how then, that think And when And competition market? then get adequate able get spreads we would the you strong

Chris Blunt

it's our But to very we me, - start excuse we've down Obviously, be market. think sheet. relatively quite with to Blackstone's again, small balance And the this a competitive Yes. it origination can proven competitive. year comes strong very relative that capabilities I

we've category. in space. to And bidding the So, say been million largely transactions I retiree-only $XXX in the playing billion $X would on

it's highly quite but competitive to far So we feel about space, good compete. our ability a so

Operator

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

with You question. may your proceed

John Campbell

Mike, on the new congrats well-deserved and And, promotion. role

Mike Nolan

a John. lot, Thanks

John Campbell

Mike, the orders per And purchase you Absolutely. January. day in mentioned

last I of versus industry And points better trends we're outlets. you than American had we first year. I said think down then seeing. X% that's obviously mean a couple

trends you any then But I is? guys any also there the on if how I outperformance up or it for down hand, - be if don't are on you think relative you would pinpoint holding thoughts of better. January update orders know of were the year-over-year. kind month-to-date guys source appreciated. have February? And where can down purchase that Clearly, X% much orders,

Mike Nolan

I'll John, Mike. it's Sure, answer both.

February, I In report. recruiting, footprint, through trends and But some we of the that last acquisitions about got current based and tuck-in could to we've drive than helping report. of I be adding been very we a month the have X% terms of - the really all to to days we've we've I seems terms on to weeks, continued outperformance that others. down on XX% be focus don't first strong those think in know hold the of that left X%. that area and five your would up that to purchase three scale more think one our finish say then obviously we'll if of robust any And We've got point. just first question, kind to seen February I point

John Campbell

maybe commercial that's direct, refi include refi, if within be you but have that's this overall have helpful. sense resi, Tony, then would well? I think talked refi but you know then, overall just don't don't I exposure a Okay, what for on to and the And if you as this direct agency you know the but exposure hand, I if

Tony Park

gave include Yes, I up remember It's purchase I percentages well is total our revenue, you're number you refi that. right. to used refi direct when I which as would revenue on Mike, commercial? have do commercial. split The don't against as residential, purchase the obviously

Mike Nolan

mix? Our

Tony Park

mix. Our

Mike Nolan

at this is years it's commercial for number. And open levels. XX% XX% open XXXX orders start the were constant refi. same year been of specifically. full and year but on last really number holding were resale, I'm over for as the Yes. those side, the it's we of of very looking In the kind And

Tony Park

opening exception constant very been real it's skew that with but only side. years reverted when that XX of being quarter kind resale second the plus the over back Yes, John from purchase percent pandemic of actually past in handful the to hit high refi to

Mike Nolan

refi and is commercial fee purchase And almost consistent. is what's It's side per same. our file on interesting the very the

So or have have then collect. then, we would I have our refi this and that like something it's disparity smaller in purchase to agency. And numbers on you even residential what the have we on be would side. we guess what versus That's directs. don't wide My don't not

John Campbell

agency to a centralized the to Okay. within obviously, just I on on mix mean was skew refi follow-up going with there. just side. the that refi probably you're I going direct, business higher ask on a

also and going probably And on margin, to way is lower fair revenue say? agency agency to refi that lower the then going be so it's is come to and

Mike Nolan

certainly agent, you yes, Well, that dollar to or fact split. look but the at - you're $X.XX giving away of the $X.XX of The lower every you're margin, the which margin our getting if more a a net know because is don't we roughly don't net different versus what order refi agency XX% of a if purchase have that a margin, information. we gives do in you order I business, on

Tony Park

agency's the Yes, I number. mean margin I a think record. it's XX% all-time more an revenue in overall gross

Mike Nolan

Yes.

Tony Park

more revenue And, but issue of segment a I it's think versus issue.

Operator

question BTIG. comes Ryan the with next from line Our Gilbert of

your with question. You may proceed

Ryan Gilbert

morning, everyone. Good

the First the XXXX? you any saw to how you play can on expect over and XQ business, course comment question, you the in of 'XX in out competitive title then dynamic changes competition

Mike Nolan

competitive that the communities, saw in about very a I talked it's Ryan, local dynamics fourth that quarter. business and Mike. know a we competitors, It's Sure, local particularly of in anything level, thousands to I significant before, we've don't of the think this same.

got are national all think as I competing more underwriters the past. you've they the in have

So year, of next noticed same. the any go I more haven't significant would competitive And into dynamics. think as I we

activity to. as up as do more. that's doing. would all some companies We'd interested We've very with those. be to But bit more been and title like probably point acquisition something in doing I think a thing one may we're I that's little of heated that

Ryan Gilbert

by pretty how going business? a And second Is on function look it like revenue, in pre-tax divided down If I basis. think adjusted forward the margin that question about product of should looks the in considerably a And at just year-over-year pre-tax just that income F&G. mix? we margins

Tony Park

Yes, you're I skewing we're look are unusual items not at may be can but what that whatever earnings. after-tax referencing, sure at I'm F&G, there. really we that looking even there specifically you at tell some

it year the and skewed run think current the to of after-tax under in about average tell earnings been XXX probably was I assets points at prior basis our you consistent. management, can pretty opposed I as that that's roughly, year. more

result I $XX in clearly growth. million Our that's year-over-year QX was $XX quarter. think and notables net it the adjusted quarter current in prior-year earnings the of asset a And excluding like million

million seeing, million year, it but the current in here have front and $XXX I'm guessing of seeing me, $XX terms guessing what in in what mean don't we're I'm in And looking it adjusted is. I'm pre-tax you're year. the so specifically of prior at I I

yes. So,

Chris Blunt

things. This Yes, of Tony, be couple I is would Chris. say, might a

actually has been into consistent, it obviously to And in quite so know, product but trending counted rising. don't been our have I is I how that, think up, ROA have get with something revenue. to net margins we'd spread been so. consistent premiums dig PRT the do quite could to have

Ryan Gilbert

much. thanks very Okay,

Operator

next Partners. line comes the question Our & from Instructions] [Operator of Geoffrey Dunn with Dowling

with proceed may You question. your

Geoffrey Dunn

is be Have and with of you've more require the of started decline first you relatively doesn't that aspect headcount taking something QX had type challenging a to could Or that's of it reaction actually adjustment one same centralized a changing? do refi's? you quarters in volumes any in typically the while. would the

Mike Nolan

we're certainly actually, the So, about in Geoff, in particular, we and October, sit February. in centralized down as but have XXX we channel in here from our peak

but operations. been But refi in more I been focused So actions been additional modest, taking some actions quarter. some channel it would it's this has on we've anticipate that

Geoffrey Dunn

talked in digital, any Is the Okay. investment. still M&A, hoping about conviction what areas in when kind products? respect other customer-facing, or Both you internally? then priorities on area And of I And was your have tech buy want investing could with where to do you it to your in think elaborate then for you including you focus. of you growing also you platforms, versus areas build? are

Mike Nolan

with Well, are that And we think can first I and more the businesses, build technologies enhancement it's continued more SoftPro, like the existing our and the do and into Technology Estate sets would we feature point, in very the on platform more got I that. to our say adding investments similar. in as development Real capability we've inHere more

have. that into external, more do about interested it future that, company that. internal look doing, development. external think between our got a developers we're And what on very plug the build versus we SoftPro might we've and find at depend I that like we're buy. we an I we others. and be things we would can if of things SkySlope the you As just area technologies lot And in of mean in guess

side, probably we've so the maybe little Geoff, And then bit skewed towards a other.

Geoffrey Dunn

Or those $X of what What is most in $X think one more could of the turn a quarter? with million I of - couple million in income type million the tech that's given into pre-tax then lend turn than various kind the themselves more that's investments above or hidden of pre-tax? And of is corporate. only title a business? maybe

Mike Nolan

- sure, actual you the revenue... Are

Geoffrey Dunn

into investments? to sort that more can like they meaningful [indiscernible] provide or turn those meaningful did more of Or they in those if something almost other company scale they of sure kind are quite figure their - actually leverage? are I'm role of some something really Or project like overall can understand trying any for the pet something I'm of over is not company. time? that the I into

Mike Nolan

things. Okay. Maybe two

terms combined. of those annual revenues, sort In businesses gross of

million, is think sound that Tony, I $XXX about around right?

Tony Park

Yes, maybe even a little stronger.

Mike Nolan

'XX And organic over strong those businesses. past growth in grow. growth, very 'XX. got could had Both actually EBITDA strong margins that through very we think organic our in I or this year have

of I numbers I $XX think over we don't front have right made in million. the me.

trying I'm to. So

Tony Park

Yes.

Mike Nolan

Yes.

But to see opportunities to could benefits those So, work not prove course, Geoff. the we that into not that to help think title still there We do significant either. of operations. can be that drive the whole more inconsequential do to if Still out. though think is on our customer have but dots. of we're groups, that that products fact to building And they the a think like in we title But do more kind work to value connect and we core services selling I before connectivity there order. to well

Geoffrey Dunn

and that advantage of So title the a before or point overall the order this? more provide other customer of touch-point these is operations the that's that maybe strategic

Mike Nolan

would And business that we're good a about but we types think be pretty to be be other point. an and add profitability. able that think operating we've you're might companies. would company, right. to the we it, of on latter feel of through strong side the But that, side strong and got we the either More acquisitions revenue I more with of strategic strategic

Operator

And will for this Nolan conference our conclude remarks. question-and-answer closing back over turn Mike will now CEO, session. I the to

Mike Nolan

and share increases a FNF record innovation, delivered year-over-year shareholder We adjusted management. creation. net It the exciting strong sustainable opportunity in forward Thanks earnings is positioned best-in-class growth, outstanding track technology are with market-leading your in see interest our strategically your morning. revenue, first assets of our value with We has competitive you. time for for market sectors, and which appreciate advantages. earnings, updating and for businesses, quarter to in to margins, ahead another quarter look and Thank you call. growth FNF under attractive on long-term this very

Operator

today's concluded. call conference the you attending presentation. And for you. Thank Thank has

for of you your day. time. this now Thank your may lines Enjoy disconnect the participation. your at You rest

Fidelity National Financial (FNF) 24 Feb 222021 Q4 Earnings call transcript