Fidelity National Financial, Inc. Q4 FY2024 earnings call

• Title segment delivered strong results in a low transaction environment, showcasing operational efficiency achieved over a decade with tools like SoftPro integrated operating platform and InHare digital transaction platform. - F and G segment is well-positioned and making progress towards investor day targets, with profitably grown AUM. - Acknowledged the impact of wildfires on the LA area but noted it was de minimis for business operations. - Highlighted pent-up demand in housing despite high mortgage rates and discussed the potential for commercial volumes to increase as the office sector recovers.

Title Segment: Fourth quarter adjusted pre-tax title earnings were $343 million with a margin of 16.6%, and full year 2024 adjusted pre-tax title earnings were $1.2 billion with a margin of 15.1%. Daily purchase open orders in Q4 2024 were up 6% over Q4 2023. Refinance orders averaged 1,200 per day in 2024 (1,300 per day in Q4 and 1,100 per day in Jan 2024). Commercial volumes ended 2024 strong with direct commercial revenue near record levels in Q4 and Dec, totaling $1.2 billion full year. F and G Segment: Profitably grew assets under management before flow reinsurance to a record $65.3 billion at Dec 31, 2024. Contributed 38% of FNF's consolidated adjusted net earnings for full year 2024 and paid $108 million in cash dividends to FNF in 2024.

• Title segment expects continued strength in industrial, multifamily, and energy sectors, and sees potential for higher commercial volumes as the office sector recovers. Anticipates normal seasonality in 2025 with mortgage rates around 7%. - F and G segment expects to continue as a strong growth engine, executing against medium-term financial goals and making progress towards investor day targets of asset growth, margin expansion, and enhanced earnings from flow reinsurance and owned distribution.

Q: Mark DeVries from Deutsche Bank asked about hotel business growth and share gain, and about benefits from FNF's majority ownership for FGI.

A: Mike Nolan responded on hotel business growth and pent-up demand, while Chris Blunt discussed benefits like hard capital support and Mike Nolan added on ratings upgrade's role.

Q: John Campbell from Stephens asked about data breach impact on title margin and capital allocation for F and G.

A: Tony Park said data breach impact was negligible, and Tony Park and Chris Blunt discussed capital allocation including share buyback resumption.

Q: Terry Ma from Barclays asked about commercial sustainability and FG spin.

A: Mike Nolan talked about commercial pipeline sustainability, and Tony Park mentioned board focus on growing F and G and the option to spin it after the five-year anniversary.

Q: Bose George from KBW asked about margin outlook and margin by segment.

A: Mike Nolan discussed margin influence factors and Tony Park broke down margin by direct, agency, commercial, loan care, and home warranty segments.

Q: Mark Hughes from Truist Securities asked about wildfires impact and NAR settlement effect.

A: Mike Nolan said wildfires impact was de minimis and no significant changes seen from NAR settlement.

Q: Jeffrey Dunn from Dowling and Partners asked about investment and efficiency in the title segment.

A: Mike Nolan discussed investments in cloud, SoftPro platform, and AI initiatives, and expectations of margin upside from efficiency gains.