FNF - Earnings call transcript Q1 2022 | Fidelity National Financial, Inc.

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Operator

Good morning and welcome to FNF's First Quarter 2022 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, Senior Vice President 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 also business we in a And of is issued materials are will our financial call today performance We replay fnf.com. available at webcast our you'll metrics company's also release XXXX. and conference the website. beginning relevant be Yesterday, It on be will be website. XX, PM through today's certain we non-GAAP press available assessing the discussing through reconciliations on Eastern the earnings measures X:XX replay telephone for within which of find available these which available at on this May will call

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

Mike Nolan

in had first with the $X.X revenue you, billion, the history. Lisa, total we quarter a start great to and year, Thank morning. good of best FNF Overall,

deliver well, of pre-tax in fourth to or announced F&G performing is first Similarly which its in and dividend we our and to year. ownership quarter we in diversified terms quarter distribution best F&G strategy this on to of earnings track completed adjusted about adjusted continues margin. of stake on growth as be early business shareholders, is had quarter XX% pre-tax second third title the are recently excited FNF late Our the

Focusing on last at rates driven more year-end rates rising at XX-year years. has the to The of the off at a interest to mortgage of coming entered quarter low fixed we end over and mortgage period X% the historically X% business, first the over two from title have the April. around X% the end average roughly recently of rate

levels seeing given steady we origination the increase season. are although, the heading spring environment, of purchase We residential demand, selling have current not seen the typical into

strongest current the last market residential purchase XXXX of demand year will and for was still markets purchase US in the XXXX be purchase origination year, trailing last decade. one the current is residential indicate record forecasts a While

to file also XX% We which appreciation to purchase fee and reduced the purchase strength together residential per continue residential increased commercial file and served versus from refinance market. price home taken in buffer fee benefit per in Commercial increased year, market have prior the X% the volumes.

per opened first the day. averaged quarter, total X,XXX orders For

For the orders opened month of were day. X,XXX April, per total

and of quarter prior month versus Refinance the down XX% nearly in quarter of the year. the and of X% in down for and pent-up from demand Aside orders well XXXX. occurred and with the in rates activity business opened which April moderated XXXX of Daily up especially down XX% for per purchase year. the prior first X% orders or opened interest that volumes, early from low as robust held month residential purchase the the shutdowns April day from refinance with have down first the the line compared benefited were XXXX levels and versus from commercial were pandemic XXXX,

the commercial orders lower month higher by per April were opened for X% XXXX versus of first year. the total of and X% over the Lastly, prior by quarter day

This total the of XXXX. stability the and month gains revenue in Title quarter. quarter quarter tail billion were $X.X compared momentum billion April, row. losses fourth commercial as have first going excluding seen first positive For in revenue Overall, was recognized commercial in orders billion with the opened longer represents second for with the over for given day the per into $X.X for and we residential. XXXX. a in Total X,XXX closings revenue $X.X compared was in quarter of with line the Total

with $XXX margin a, of adjusted pre-tax partially prior adjusted file. XX% earnings average quarter. file a commercial compared $XXX a total driven the The quarter million $XXX the commercial ago daily driven increase by Of XX.X% ago in offset X% year the per from in in closed orders year delivered decrease in Title and and total XX% decrease in a million increase an increase results refinance with as commercial by X% XX% in compared total closed revenue we orders was fee quarter per XX% year the the Title and were of of For pretax fee by XX.X% orders note, million closed. increase

remain Moving forward, we of number on areas. will a focused

disciplined our in First, strategy to operating the segment. we continue execute on Title

proven economic in and expenses track to volumes. adjusting market managing navigating and history we order with various and of effectively have trends opened deep record by margin evaluating closed real-time long our a align Given cycles, experience trends

to and continue also extend ensure market-leading to our investments will we position. make maintain we Next,

real we the decade, technology platform estate innovative to last the scalable industry. Over in and with business created an Title service our offerings have broader expansive

investments significant buying, effort make Platform, and selling, our Experience considerable into the put to expanding adoption of ourselves end-to-end XXXX, differentiated experience transforms platform continue a inHere was In for digital customers. enhancing or of in and technology our functionality integrating home. a that and developing, refinancing enhancing We

$XX.X potential acquisition XX and F&G footprint. not will the which targets review turning under ending months, to a acquisitions momentum to approximately more to XX national to contributed the F&G detail First and compared channels. moment, $X.X but new management the least quarter quarter discuss the to while quarter over XX% we in distribution gaining have grow we space with made share, Chris rose billion for our sales at our Additionally, year billion take XX% in XX% last by to we this continue adjusted in in as first year-over-year in as assets million $XX Last, continue earnings Title to ago quarter.

provides As over FNF. time. earnings F&G's source this under competitive benefit as and management contribution as of business to earnings so steady and their FNF advantage We too assets growing will spread-based will power F&G's a that primarily view a grow

an exceeded remains our business, F&G. expectations the creation has important recognized part taken and value yet has of has market at F&G that place not While the

early growth XXXX, approvals. equity been will also that fourth we in By that while dividend be from late XX% listed plan to highlighting of and continue common of created. the benefit F&G customary the quarter or subject March FNF As publicly a of substantial we ownership to result, their continue with F&G of shareholders in to to on third retaining XX% be a will stock basis announced F&G, expectation value to the pro will our has quarter rata

employees. our Finally, by would thanking I to wrap-up like

Our customers. a efficiently on team focus our operations continued with exceptionally steadfast and running our has well to kept perform

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

Chris Blunt

Mike. Thanks

We under billion, boosted strong first a kicked March start achieved assets XXXX. of ending quarter as $XX.X to sales of $X.X which XXst. to The management off billion

in the Our ownership at acquisition under from gives the success the FNF's premiums of one us distribution to versus in time five XXXX. expanding June channels now source ability distinct of

quarter. the first macro rates second to approach into response results. relatively billion pricing The fourth of the well-positioned environment our quarter We in in sales the are subsequently early April move resume growth year March our broker-dealer annuity in have which agent the levels up but our flat first reflected took part strong channels seen in trajectory in taken a XXXX, actions and $X.X the prior in pricing record reflecting quarter, measured from sales in Our in premium retail with the and bank quarter. quarter submitted of the and to during carried early quarter totaled line in

Turning $X.X our to launched we billion. first quarter institutional mid-XXXX, markets, in which sales totaled

as to consumers single the in in in ranked plan. leadership opportunity our we eighth marked premium in attractive total continue and tailwinds well migrate were markets We market full year quarter and demonstrates pension largest middle fixed million foresee demographic environment. will LIMRA. to-date give for trends we transfer the in products addressable provide to to transaction us room CDs first as rising market, transferred annuity over a growing with rate the share XXXX This risk the to to bank from $XXX our large untapped The according that significant growing

our management talent. record advantage within competitive distribution, gives Our a our partnership Blackstone a relationships track and investment markets, business sustainable through with top attracting durable long-standing model us our given edge of

million. notable for million $XX With well in-force prior first tax quarter XXX for consistent $XX power growing and strong the items to pricing. with collateralized were XXX or AAUM quarter. redemptions. valuation rate The deferred to particularly both sale and F&G million, partially to items Adjusting new million deliver historical basis We on net trends model, increase recorded favorable our pricing both included our by of in and top comprised adjusted compared basis million driven our earnings results of the growth cycles. for spread business net net operations, earnings assets across varying was $XX points for assets excluding those was investment to points, actions notable an against of demonstrate earnings, XX% line consistent business, FIA the disciplined gains return of primarily results first of investment total the approach million in excluding Adjusted expense obligation Adjusted environment. earnings the loan unfavorable were as a notable rising from in F&G's income continue underlying discontinued $XX quarter offset by $XX spread $XX items, items, points as past of the a spread million favorable in basis to market allowance items with primarily and regard the on Adjusted financial on of tax related in net book. net our year quarter, line earnings net $XX was XXX spread disciplined

and of growth at future stock We for common point to XX% that F&G public are announcement inflection FNF through the mentioned. feel of intention Mike its to positioned of take we FNF's of an as F&G with well the shareholders are dividend

see as will will of company first and value the coming continued symbol, partnership review now We to for maintaining early ownership. well this investors expect to to that the various and our platform. of the year. majority as a anticipate a approvals. in-force business, Directors, reinforce directly benefit upside We the XX Park of FNF's further I potential as fourth the earnings during turn F&G ticker XXXX third We of months. FG quarter confidence to conditions quarter including applicable to back Tony public the to FNF and by as our while FNF's amended invest New call flow the on We potential Securities allow Form our subject late with the registration York The the and on providing from Stock new statement vote regulatory effectiveness Board being a Exchange book, this forward quarter over look business to list to highlights. is filing in updates stand-alone approval or of Exchange from of help transition F&G of capitalize in a cash transaction the the any final of financial Act under

Tony Park

results, billion, generated consolidated quarter, revenue Corporate segment total billion in producing Thank you, our F&G $XX the producing million Chris. we in and million. with first generating $X.X with $XXX $X.X segment the Starting the Title

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

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

highlights. financial segment Title the to Turning

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

year the quarter million, and $X.X billion to interest. Corporate income declined investment Title Our segments with million Interest due compared investment bond and at totaled XX. $X as and decreases in in primarily $XX portfolio of prior March Title the Corporate

rate the approximately in rate the put portfolio, we basis investment for Title each Corporate income after for with some Given and for Fed basis environment, anticipate run million potential in income. moderation increase To would about points. expect in would funds perspective help XXX XX higher rising the annual we it $X point

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

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

and business agencies environment. equity. the We capital allocation estate-related strategic FNF's Let to a transaction, and This in evaluate repurchasing the M&A ahead me commitments distribution prior the investments the with strategic wrap shared ensuring to in and convert few to to existing dividend title up as intercompany capital focused F&G. support to This growth we term businesses, sensible dividend and capital encompasses title as initiatives and thoughts Continuing organic million technology acquisitions, on our regard to other we in will a quarterly navigate of With on shareholders making innovation liquidity. current to strategy conclude funding opportunities in into generous balanced remain shares. technology a F&G paying $XXX F&G commitments expect quarters, real loan capital

billion XX% short-term $XXX its capital holding billion unused consolidated intends total statutory March company and We ended September debt expect with and and the will liquid to ratio they on to March to line with F&G in forward, earnings, in to in of investments that and was F&G's ratings. strong the the includes line reinsurance XX% growth to which their debt long-term at continued quarter quarter. XXXX. growing $X.X level cash X.X% XX senior with capital target sequential Going fund capacity. of at FNF's programs total ratio with notes debt million $X.X a manage debt XX, mature was in

outstanding debt Our million. annual approximately on $XXX interest expense is

continues and quarter, over current total reviewed first quarterly paid of a our is as $X.XX to time active expected the cash return to uses During quarter sustainable. first we second dividends into and and The shareholders view of per annual repurchases share through throughout cash to We quarter. $XXX alternative common FNF excess $XXX for common subject market dividend conditions. has million. million capital over the to dividend the of remained flows, increase share time and

$XXX questions. During dividends million at our call a to share. over Combined, turn average And and returned now total operator the our to repurchases remarks. let shares million quarter. shareholders concludes of of first an price prepared for in our we the through repurchased have we back the of me X.XX quarter, $XX.XX capital common per for This first million $XXX share

Operator

comes line of proceed Please Thank Our with with question Instructions] question. Hughes the Mark your Truist. you. from [Operator first

Mark Hughes

morning. Good you. Thank Yes.

Chris Blunt

Good morning.

Tony Park

morning. Good

Mark Hughes

saw a the, you was Was in that rate and pricing the on interest acceleration uptick in equity volatility? guess that just sales action the a March and broader part? given FIAs April in your on The I market environment demand

Chris Blunt

question. Great Yeah.

our particularly credit And up I jump we've moved margin, that a make Rates little liquid once we moved And traditional and think pricing. was want of part the we sustainable. of sales market. late quite we that just really seen of a back to with it quickly move move kind the to sure function kind to dramatically. were was pretty competitors in of

Mark Hughes

kind be And or look either interest additional to that then FIA of the do you rate spread category to overall, is whatever the this expand backdrop, a with and goes with in going spreads steady policyholder?

Chris Blunt

need No, bit I this at to to think take we look an do Obviously spread. competitive. as you environment little extra of a remain

It's just side. rates. have if important just movements you're we've spread. to the that premium. do need renewal time, also seen expansion not partners bringing in And actually get by of product to Meaning spread competitive both good of even basis grabbing rate most extra cases the given some that a distribution points attempting you're in we're policyholders, pricing but we happens You incredibly to invested, we're couple but on the it

So we the share, I the very do probably is continue this can take time, think continue extra competitive, to grow. at little can be spread same to a get and environment way. market along We an

Mark Hughes

And week been been the the What's purchase I in your if interest Title business rates so of described or might down in trajectory that question, quick moving April. that fast, kind two? the on then experience Any sense has of been? given stable how one of have you recent a X%

Mike Nolan

through I not see increase be Sure, then rates Mark, we'll probably June to up. as time a move see seeing of are month-over-month purchase peak mentioned May, would move time decline the Mike. – whether just the year. the which we're frame in you say typically as as it to we kind And through continue course on dependent that, typical end I it's the start orders in the typical year. the move slight see of instead back and stabilize flattish or of the just opening, of would frame into will months I you all that expect increasing may But

Mark Hughes

Thank you for that.

Operator

Our next your Andrew Kligerman of Credit question the from proceed Suisse. with question. comes line with Please

Andrew Kligerman

your remarks purchase daily of last on we did morning. that when opened good hear Is right? April kind in I opening Hey, from X,XXX to May. as said in question, Mike for you correctly X,XXX went that start you that orders

Mike Nolan

total is No, that's was the orders that side. Andrew correct and decline not the purchase not primarily on opened refi

Andrew Kligerman

it. Got

Good. Okay.

then... things are So somewhat stable

Mike Nolan

as a year-over-year. bit down, more but and I X% quarter is for Yeah, for first more X% April stable although purchase the mentioned

Andrew Kligerman

hear. Good Got it. to

with the then cited is to margin all the year-over-year. flat. And from And revenue Okay. XX.X% respect revenue you the the as And pre-tax adjusted then while down in down least quarter XX.X%. year-over-year XX.X% at or from sequentially –

you we down help that might forward? what's be where margin Mike to could or So to Tony dissect, going and possibly me that driving expect

Mike Nolan

Sure. the first I'll with Mike and It's part. start

trajectory terms our compare the the doesn't make In the year-over-year, up year-over-year, business way about to We a it's you of comparison, three Title quarter in that. X% really look you first margins. of quarter the you the industry which in really to if margins at costs valid can't just personnel segment It's the really really just flattish But just is more really had things. fourth that revenue. drive on

the or of the range XXs. direct the mid-XXs industry-leading, And bit. your pre-tax as down up are against We be mix gross XX% So you total. that that to know but might X% higher agency a takes margin still in a in margin to a our little agency revenue had margins

-- would a question non-Title to quarter-over-quarter. compression that So going second there's margins little bit that good. then businesses segment impact. And of very And I to margin a expect an your had bit forward, also a of then about the has Title in be few

just guidance. still commercial at you quarter. a to know a not in the original look good environment. forecast but second see still we be actually healthy purchase as good historical very But quarter, a as good it we should give expect Purchase context thought, very market maybe as standpoint a the and we As don't

Andrew Kligerman

expenses And think Got was that of it. X%. And the at down year-over-year said up looked then X%. other operating I I That's to kind that as was you just and good hear. then personnel actually expenses about Mike

pressures you expenses and these With the other going at both how operating looking personnel forward? are the

Mike Nolan

staff Sure. as And had resizing the XXX quarter. the little acquisitions We bit in of as a business And quarter through first adding the well number employees we hiring. modest started first fourth more quarter and approximately also with some the industry-focused reductions. some includes in

to but ends it the continue decline we second overall we would anticipate counts. both of the can the X% kind of in the also on people to So X% quarter, adding another rightsizing that size I as through to maybe to company environment. revenues work And talented employee additional go total drive

Tony Park

And Andrew, it's Tony.

on add to that. to maybe Just

one-third personnel that you costs about fixed If variable and at our line we're two-thirds look probably in item.

revenue on course salaries our personnel And the of that headcount fixed So more payroll get then taxes salaries, out. And and are with move that take as side costs clearly them. sort of profits thing. the move you variable when adjusted

side things the we're other little expense a probably there. more On of operating variable

and We have like businesses of sales and valuations our in cost there some care. loan maybe of

We plant fees. be that professional have variable, more costs can Title certain

And see an a bit on bit the personnel. of of you so a decline operating you why that's on a little or increase little little other versus decline the of see a a more bit maybe

Andrew Kligerman

Very you. Thank helpful.

Operator

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

John Campbell

Hi, guys. Congrats morning. on the quarter. Good

Mike Nolan

Hi, John.

Tony Park

Thanks. John. Hi,

John Campbell

the maybe $XX a it million. off -- earnings with you roughly looks like adjusted guys Chris last over like on basis, you the have quarterly averaged starting year the F&G net Hey, on looks it

maybe I quite that's But, like million. the AUM overstated. like a guys think obviously, bit It little normalized -- bit. you a imagine built more have little maybe I a sounds million $XX $XX range range good $XX quarter. rates. somewhere forward? you're a that per Is kind tailwinds to million probably that consider to getting it's degree of going a added with in But of up

Chris Blunt

ZIP yeah, starting think going if just project I that's that to a asset is. good it you in X% to think the put code. metric point. go you return I and again No simple back we But, Yeah. management average under that's right And out on assets

continue CLO refinancings. positives have this some quarter Some to

where adjustment. some So forward you rates if given decline earnings that are now will some clearly one-timers yeah we also had the tax pulling then But of some of the given but that's I'd the noise point that's been strip We've better figure. doing the back environment and that I good but estimate. bit than X% a that to a think still out ROA

John Campbell

helpful. That's Okay.

Tony Park

John Tony. And it's Yeah.

put maybe closer it. on we're finer out do talking in point quarter. Chris about million a items When you to Just that strip to $XXX actually those the was

think I just $XX those notable million items at in we year $XX ago were a million to versus excluding QX.

So close to Chris' point $XX million rate points assets. pretty is almost and $XXX on million that's basis XXX run to

John Campbell

And some put makes results sense. Yeah, mean have of out you I really guys up good F&G.

So guys hopefully the for XX% credit with spend that get eventually for you sure. will

at side commercial of that momentum XX% But looks the last order like couple open national It you it of there. the least and of expectations as you the ahead asset looks up classes been commercial like drivers has how the is side, guys year-over-year, maybe our quarters. about so On the continued rest on if about momentum business would could of point the year? feel out the you talk the mix what way

Mike Nolan

actually strong. ever And right. are I had. in We've We're day. class over mentioned And Yeah months from we got XX% very the been multifamily an is have XX% national asset over a a months from now opener to optimistic XX trends orders you're it's last our orders Mike. will we've very see John, industrial better of But quarter-over-quarter. on a commercial. in closer standpoint to The probably thousand we're a as row absolutely day, historical continue which the four than out thousand standpoint, best have XX

cases see and transactions You retail out. improving, in improving, and energy transactions. office in gaming come hospitality some some And

activity class broad-based the pretty a it's activity So continues. and asset geographic

bullish the we file we're continue for certainly the strong. And be in to say national pretty pickup just average year. particular, commercial orders would that in per fee with see I So on should

John Campbell

Yeah. the color Thanks guys. to It’s hear. good for

Mike Nolan

John. Thanks

Operator

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

Bose George

Hey, guys. Good morning.

per in despite the end you've remains terms fee being in the purchase premiums of with strong and just just on given to appreciation fairly home premiums, that in the declines we price highlighted? file, the could year-over-year side volumes flat benefit First, up trend

Tony Park

a to continue appreciation said continue Yeah because exactly pressure that the Tony. albeit home on with a home there's I But in probably on we And I thing, which mortgage might volumes. continue year, through as think moderating increase. affordability given that that don't we're real that's be also work to increase if obviously where I it's more price prices become believes think headed that We rates. think Bose, good rates know Yeah. terms going possibility. what's having you will everyone going mortgage we'll to to be have see and of challenging

wash. So, yeah, see you I a sort XX% a a some mean if appreciation, in decline increase in and of volumes XX% you had price might

Bose George

Yeah.

Okay.

that as said So just Tony income And from interest rates sense. increase? makes then, you could repeat what you about the expectations

Tony Park

based on each would short million Fed how And roughly estimate. our in in rate run it given is, increase a basis Yeah, we funds. portfolio, XX rough especially point anticipate But is this for $X absolutely. income

income put everyone see think that way basis so by last quarter in seeing maybe maybe XX, XXX next Fed could closer to trending year. which it I has we're points Title moves we some they the anticipated of point in or already million so And XXX is the investment XX and in first Corporate increases Maybe to if of will, basis year, or had $XXX and about perspective, that. I

balance well be definitely And to cash business. our we from going to Exchange some of in growth our would as investment income. most as XXXX that's nice So, expect see

I more the bit increases pressure I there's that, Now, XXXX little did about Exchange on say side basis on on think going also side, points to the XXXX. once at of be -- we XXX get to a customer

don't dollar it get after necessarily So, dollar for that. you

Bose George

spread impact one that That's volatility guys in the of helpful. equity the actually how that And Chris. great. you The offering? then, Okay, the just does for markets, just are hedging

Chris Blunt

Those actually been indices. results have now Keep in Yeah. quite the big of are consistent. portion indices mind, multi-asset a

stable So, be if will you costs, our seen throughout we've pretty this. hedging

volatility anticipated really it's more. matters So

far. so really swing it hasn't factor So, been a big

Bose George

Thanks. Great. Okay.

Operator

next Instructions] Gilbert proceed of Our the question. with question [Operator BTIG. with line your Ryan Please comes from

Ryan Gilbert

morning. for Hi, Thanks the thanks. taking questions. Good

said to market earlier -- maybe back order Is in the counts you sequential XQ well. a XQ purchase that going in about XQ. year-over-year like It is trends in towards Just the in we're sounds heading maybe into anyway what characterization? and heading as closed fair a mid-teens decline maybe

Mike Nolan

A accounts door purchase. closed and mid-teens decline in

Ryan Gilbert

Yes.

Mike Nolan

Is that you said? what

Ryan Gilbert

Yes.

Just based on flattish month-over-month trends.

Mike Nolan

have to have I'd me. Ryan. know strong it. I'd but that don't look probably I a do little on math little at to a Yes. that, sounds to But

Ryan Gilbert

it. Got Okay.

Mike Nolan

the we lot get X% to just seems were you're mean first up the decline, saying your know I of decline in first and from mid-teens bit -- tee purchase a I X% And quarter. a a don't quarter. -- a little quarter that that's it our in were trends I'd going of there second down closings

Ryan Gilbert

it. Got still to like a then in sequential increase table. Is we It XQ from on that's Title Okay. the pretax see margin typically And XQ. that correct? sounds

Mike Nolan

I maybe But Again, say Yes. on that purchase something And certainly guidance the don't well. but commercial realm, comes we as would the how we going realm. give just for that in certainly, to depend it's think through.

Ryan Gilbert

by Chris each Last remind the Great. one Okay. profile can just distribution for return channel? me F&G. you on us

Chris Blunt

Yes.

independent generally agent the So, in the highest in bank I tended have to our slightly channel broker-dealer. would return say and business, less has

comparable returns is that the business PRT channel. Our retail business we in the to write

could or So, really all not dramatic. in we mean other. a I talking one the it's all be blend that you point together, direction it

that Obviously channels. consistent. vary the in environments, a across but different consistent . pretty can pretty year within competitive So,

Ryan Gilbert

Thanks. appreciate Great. it. I Okay.

Operator

Please follow-up line with a of from with have Truist. your the Mark question question. We proceed Hughes

Mark Hughes

the what's the step-up of of see? closings kind Yes. in I seasonal going we're get happen of kind it's in step-up June? normal to XQ -- to earlier issue going that May trajectory to going and was the not just asking, at this If about by that year the kind absence of what's

Mike Nolan

Yes. of go Well, on Mark, but June to -- per month back the increases the kind year, in can way. it you're X% starts open you're X%, the kind seeing the then it down usually and maybe other you to as and depend go from sequential on May seeing March, side, X%, and of

not surprise, -- absent we're not And so, that. we're a seeing

flattish the on I of open feeds more closing. And said as be might So the earlier. side it which into course that's

Mark Hughes

was of sort Yes, helpful some question. Thank my get Yes. that. you. magnitude only on to That

Operator

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

Mike Nolan

year time is morning. is a this the the We and FNF and to company history pleased to rate due are macro our well benefit long to publicly volatility on call. start FNF to second as for navigating strategy year. your environment you traded appreciate current the of great interest Thanks positioned from Likewise, despite forward in in your execute environment. F&G environment through earnings updating cycle the fluctuations. disciplined operating our rising uncertainty look market We track and is to this and the rate with rising later this list poised quarter on to

Operator

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

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

Fidelity National Financial (FNF) 11 May 222022 Q1 Earnings call transcript