Fidelity National Financial 8K FNF Reports Second Quarter 2022 Financial Results | FNF 2 Aug 22

Exhibit 99.2

F&G Annuities & Life, Inc. (“F&G”) - An Operating Segment of Fidelity National Financial, Inc. (NYSE:FNF)

Financial Supplement

June 30, 2022

(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF ("the Company") and these financial statements and exhibits should be read in conjunction with the Company's periodic reports on Form 10-K, Form 10-Q and Form 8-K. F&G was acquired by FNF on June 1, 2020.

All dollar amounts are presented in millions.

Non-GAAP Financial Measures

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this document includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)


			Page
A. Financial Highlights
Consolidated Financial Highlights			3
Sales Results by Product			3
Condensed Consolidated Balance Sheets			4
Reconciliation of Total Shareholders' Equity to Total Shareholders' Equity Excluding AOCI			5
Condensed Consolidated Statements of Earnings			6
Reconciliation from Net Earnings to Adjusted Net Earnings			7
Notable Items			7
Adjusted Net Earnings Statement			8
Financial Strength Ratings			9
B. Product Summary
Total Product Net Investment Spread			10
FIA Net Investment Spread			11
Assets Under Management Rollforward and Average Assets Under Management			12
Annuity Account Balance Rollforward			12
Annuity Liability Characteristics			13
C. Investment Summary
Summary of Invested Assets by Asset Class			14
Credit Quality of Fixed Maturity Securities			15
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation			16
D. Counterparty Risk
Top 5 Reinsurers			16
E. Non-GAAP Financial Measures			17

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Consolidated Financial Highlights



	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021



Select Income Statement Data:



Net earnings attributable to common shareholders	230		236		121		373		82		466		371

Adjusted net earnings attributable to common shareholders ("Adjusted net earnings") (a) (c)	128		82		90		101		92		210		170



Select Metrics:





Average assets under management ("AAUM") (a)	39,306		37,459		35,699		32,692		30,423		38,351		29,722

Assets under management ("AUM") (a)	40,322		38,601		36,494		34,665		31,760		40,322		31,760



Net investment spread (a) (d)	2.62	%	2.76	%	2.78	%	2.75	%	2.85	%	2.70	%	2.65	%

Adjusted return on assets (a) (b) (c)	1.10	%	0.88	%	1.13	%	1.18	%	1.14	%	1.10	%	1.14	%

(a) Refer to "Non-GAAP Financial Measures Definitions"

(b) Adjusted return on assets is calculated on a year to date ("YTD") basis.

(d) Prior periods have been restated to reflect immaterial adjustments management identified in Q2 2022.

Sales Results by Product



	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021

Sales (a)
Fixed indexed annuities (FIA)	1,114		962		1,055		1,073		1,135		2,076		2,182
Fixed rate annuities (MYGA)	1,087		473		301		458		512		1,560		979
Total annuity	2,201		1,435		1,356		1,531		1,647		3,636		3,161
Indexed universal life (IUL)	29		27		28		24		20		56		35
Funding agreements (FABN/FHLB)	843		600		35		1,150		1,000		1,443		1,125
Pension risk transfer (PRT)	—		527		776		371		—		527		—
Total Gross Sales	3,073		2,589		2,195		3,076		2,667		5,662		4,321
Sales attributable to flow reinsurance to third parties	(544)		(236)		(151)		(229)		(255)		(780)		(489)
Total Net Sales	$	2,529	$	2,353	$	2,044	$	2,847	$	2,412	$	4,882	$	3,832

(a) Refer to "Non-GAAP Financial Measures Definitions."

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Condensed Consolidated Balance Sheets


	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021


Assets
Investments:
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $5 at June 30, 2022	$	28,398	$	29,478	$	29,962	$	28,550	$	27,616
Preferred securities, at fair value	839		934		1,028		870		882
Equity securities, at fair value	119		139		143		156		176
Derivative investments	145		487		816		581		691
Mortgage loans, net of allowance for credit losses of $35 at June 30, 2022	4,437		4,217		3,749		3,484		2,794
Investments in unconsolidated affiliates	2,668		2,696		2,350		2,022		1,667
Other long-term investments	528		510		489		454		448
Short-term investments	823		387		373		258		356
Total investments	$	37,957	$	38,848	$	38,910	$	36,375	$	34,630
Cash and cash equivalents	992		1,168		1,533		2,320		1,016
Trade and notes receivables	3		3		3		11		11

Reinsurance recoverable, net of allowance for credit losses of $19 at June 30, 2022 (a)	4,215		3,801		3,610		3,492		3,297

Goodwill (a)	1,756		1,756		1,756		1,756		1,756
Prepaid expenses and other assets	1,000		625		613		662		415
Lease assets	9		9		8		8		8
Other intangible assets, net (a)	3,143		2,699		2,234		2,086		2,060
Property and equipment, net	14		14		13		13		13
Income taxes receivable	64		46		50		—		—
Deferred tax asset (a)	473		142		—		—		51

Total assets	$	49,626	$	49,111	$	48,730	$	46,723	$	43,257
(a) These line items included adjustments that were recorded during the remeasurement period subsequent to the June 1, 2020 acquisition. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending June 30, 2021: Reinsurance recoverable, ($289), Goodwill, $5, Other intangible assets, net, $61, and Deferred tax asset, $1.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)


Condensed Consolidated Balance Sheets (continued)
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021


Liabilities and Shareholders' Equity
Contractholder funds	$	37,707	$	36,237	$	35,525	$	33,988	$	32,166
Future policy benefits (b)	5,177		5,217		4,732		3,985		3,670
Accounts payable and accrued liabilities (b)	1,384		1,536		1,297		1,670		1,276
Income taxes payable	—		—		—		3		17
Deferred tax liability	—		—		24		9		—
Notes payable	573		975		977		979		589
Funds withheld for reinsurance liabilities	2,277		1,852		1,676		1,508		1,271
Lease liabilities	14		14		14		14		14

Total liabilities	$	47,132	$	45,831	$	44,245	$	42,156	$	39,003

Shareholders' equity:


Additional paid-in-capital	3,156		2,753		2,750		2,748		2,746
Retained earnings	1,468		1,238		1,001		880		507
Accumulated other comprehensive (loss) income ("AOCI")	(2,130)		(711)		734		939		1,001

Total shareholders' equity	$	2,494	$	3,280	$	4,485	$	4,567	$	4,254
Total liabilities and shareholders' equity	$	49,626	$	49,111	$	48,730	$	46,723	$	43,257

(b) These line items included adjustments that were recorded during the remeasurement period subsequent to the June 1, 2020 acquisition. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending June 30, 2021: Future policy benefits, ($228), and Accounts payable and accrued liabilities, $6.

Reconciliation of Total Shareholders' Equity to Total Shareholders' Equity Excluding AOCI


	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021


Total shareholders' equity	$	2,494	$	3,280	$	4,485	$	4,567	$	4,254


Less: AOCI	(2,130)		(711)		734		939		1,001
Total shareholders' equity excluding AOCI (c)	$	4,624	$	3,991	$	3,751	$	3,628	$	3,253

(c) Refer to "Non-GAAP Financial Measures Definitions"

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Condensed Consolidated Statements of Earnings


	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


Revenues:
Life insurance premiums and other fees (a)	$	68	$	594	$	838	$	431	$	62	$	662	$	126

Interest and investment income	425		451		511		481		487		876		860
Recognized gains and losses, net	(426)		(297)		345		15		253		(723)		355

Total revenues	67		748		1,694		927		802		815		1,341
Benefits and expenses:
Benefits and other changes in policy reserves	(418)		208		1,404		185		575		(210)		549
Personnel costs	34		30		36		32		32		64		61
Other operating expenses	31		18		29		22		26		49		54
Depreciation and amortization	121		143		65		210		65		264		209
Interest expense	9		8		8		6		7		17		15
Total benefits and expenses	(223)		407		1,542		455		705		184		888

Pre-tax earnings	290		341		152		472		97		631		453
Income tax expense	(60)		(105)		(31)		(96)		(21)		(165)		(93)


Net earnings from continuing operations	230		236		121		376		76		466		360
(Loss) earnings from discontinued operations, net of tax	—		—		—		(3)		6		—		11

Net earnings attributable to common shareholders	$	230	$	236	$	121	$	373	$	82	$	466	$	371

(a) Included within "Escrow, title-related and other fees" in FNF 10-K/ 10-Q.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Reconciliation from Net Earnings to Adjusted Net Earnings (a)


	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


Net earnings from continuing operations	$	230	$	236	$	121	$	376	$	76	$	466	$	360


Non-GAAP adjustments (a):
Recognized (gains) and losses, net	21		(33)		(76)		(98)		(63)		(12)		(145)
Indexed product related derivatives	(159)		(168)		32		26		75		(327)		(110)

Purchase price amortization	5		6		6		7		6		11		13
Transaction costs	4		—		—		1		2		4		4
Other non-recurring items (b)	—		—		—		(284)		—		—		—

Income taxes on non-GAAP adjustments	27		41		7		73		(4)		68		48
Adjusted net earnings (a)	$	128	$	82	$	90	$	101	$	92	$	210	$	170

Notable Items

Each quarterly reporting period, we identify notable items that help explain the trends in our Adjusted net earnings as we believe these items provide further clarity to the financial performance of the business.


	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


Adjusted net earnings (a)	$	128	$	82	$	90	$	101	$	92	$	210	$	170
Notable items [(unfavorable)/favorable]


Benefits and other changes in policy reserves (c)	2		4		(7)		7		3		6		10
Assumption review and unlocking (d)	30		—		—		—		8		30		8
Other notable items (e)	4		(20)		10		20		11		(16)		16

(a) Refer to "Non-GAAP Financial Measures Definitions."

(b) Reflects adjustments to benefits and other changes in policy reserves and depreciation and amortization resulting from the implementation of a new actuarial valuation system.

(c) Reflects the after tax impact to adjusted net earnings for certain actuarial adjustments to benefits and other changes in policy reserves related to timing, volume and magnitude of experience, excluding assumption review and unlocking.

(d) Reflects unlocking from updating our SOP 03-1 reserves, DAC, VOBA, DSI and cost of reinsurance amortization models for actual experience and equity market fluctuations.

(e) Costs incurred during research and exploration of potential merger or acquisition of a business or a group of insurance policies via asset acquisition or (inforce) reinsurance agreement, income from bond prepayment and CLO redemptions, changes in tax valuation and other net activity.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Adjusted Net Earnings Statement (a)


	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


Revenues:
Life insurance premiums and other fees (b) (i)	$	89	$	593	$	840	$	430	$	62	$	682	$	126
Interest and investment income (c)	463		448		431		381		377		911		710
Recognized gains and losses, net (d)	—		—		—		—		—		—		—
Total revenues	552		1,041		1,271		811		439		1,593		836
Benefits and expenses:
Benefits and other changes in policy reserves (e) (i)	229		775		1,023		577		214		1,004		402
Personnel costs	35		30		36		32		32		65		61
Other operating expenses (f)	28		18		29		22		24		46		50
Depreciation and amortization (g)	91		64		61		49		46		155		94
Interest expense	9		8		9		6		7		17		15
Total benefits and expenses	392		895		1,158		686		323		1,287		622

Pre-tax earnings	160		146		113		125		116		306		214
Income tax expense	(32)		(64)		(23)		(24)		(24)		(96)		(44)






Adjusted net earnings (a)	$	128	$	82	$	90	$	101	$	92	$	210	$	170
Notable items included in Adjusted net earnings (h)	$	36	$	(16)	$	3	$	27	$	22	$	20	$	34

(a) Refer to "Non-GAAP Financial Measures Definitions."

(b) Life insurance premiums and other fees are included within "Escrow, title-related and other fees" in FNF 10-K/ 10-Q, and have been adjusted to remove primarily the impact of unearned revenue on the adjustments below.

(c) Interest and investment income has been adjusted to remove the market volatility on the alternative investment portfolio that differ from management's expectation of returns over the life of these assets.

(d) Recognized gains and losses (net) have been adjusted to remove the effect of recognized (gains) losses including changes in allowance for expected credit losses and OTTI; changes in fair values of indexed product related derivatives and embedded derivatives, net of hedging costs; and the change in fair value of the reinsurance related embedded derivative.

(e) Benefits and other changes in policy reserves has been adjusted to remove the effects of the changes in fair values of indexed product embedded derivatives, changes in allowance for expected credit losses on reinsurance recoverables, the fair value impacts of assumed reinsurance, those resulting from the implementation of a new actuarial system at September 30, 2021, and changes in the SOP 03-1 reserve resulting from the adjustments above, as applicable.

(f) Other operating expenses have been adjusted to remove the effects of transaction costs.

(g) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, and DSI of the adjustments above, as applicable, purchase price amortization and those resulting from the implementation of a new actuarial valuation system at September 30, 2021.

(h) Refer to page 7 "Notable Items" for further detail of notable items.

(i) Includes premiums from agreements related to our new PRT business beginning in the three months ended September 30, 2021.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Financial Strength Ratings

A.M. Best

S&P

Fitch

Moody's

Holding Company Ratings

F&G Annuities & Life, Inc.

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba2

Outlook

Stable

Positive

CF Bermuda Holdings Limited

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba1

Outlook

Stable

Positive

Fidelity & Guaranty Life Holdings, Inc.

Issuer Credit / Default Rating

bbb-

BBB-

BBB

Not Rated

Outlook

Stable

Senior Unsecured Notes

bbb-

BBB

Baa2

Outlook

Stable

Operating Subsidiary Ratings

Fidelity & Guaranty Life Insurance Company

Financial Strength Rating

A-

Baa1

Outlook

Stable

Positive

Fidelity & Guaranty Life Insurance Company of New York

Financial Strength Rating

A-

Not Rated

Outlook

Stable

F&G Life Re Ltd

Financial Strength Rating

Not Rated

A-

Baa1

Outlook

Stable

Positive

F&G Cayman Re Ltd

Financial Strength Rating

Not Rated

A-

Not Rated

Outlook

Stable

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)


Total Product Net Investment Spread
	Three months ended															Six months ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021


Net investment income	$	425		$	451		$	511		$	481		$	487		$	876		$	860
AAUM (a)	39,306			37,459			35,699			32,692			30,423			38,351			29,722
Yield on AAUM (a)	4.32		%	4.82		%	5.73		%	5.89		%	6.40		%	4.57		%	5.79		%
Alternative investment yield adjustment (a)	0.39		%	(0.04)		%	(0.90)		%	(1.23)		%	(1.43)		%	0.18		%	(1.01)		%
Adjusted Yield on AAUM (a)	4.71		%	4.78		%	4.83		%	4.66		%	4.97		%	4.75		%	4.78		%

Interest credits (b)	$	94		$	85		$	84		$	64		$	73		$	179		$	147
Option & futures costs (b)	99			92			88			82			77			191			149
Total interest credited and option costs (b)	$	193		$	177		$	172		$	146		$	150		$	370		$	296
Average account value (b)	37,009			35,247			33,601			30,562			28,273			36,110			27,762
Interest credited & option cost (b)	2.09		%	2.02		%	2.05		%	1.91		%	2.12		%	2.05		%	2.13		%
Net investment spread (a) (b)	2.62		%	2.76		%	2.78		%	2.75		%	2.85		%	2.70		%	2.65		%


(a) Refer to "Non-GAAP Financial Measures Definitions."
(b) Prior periods have been restated to reflect immaterial adjustments management identified in Q2 2022.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)


FIA Net Investment Spread
	Three months ended															Six months ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021


Net investment income (b)	$	290		$	312		$	366		$	368		$	377		$	602		$	653
AAUM (a)	24,704			23,717			22,824			22,146			20,896			24,275			20,551
Yield on AAUM (a) (b)	4.70		%	5.27		%	6.42		%	6.65		%	7.22		%	4.96		%	6.35		%
Alternative investment yield adjustment (a)	0.44		%	(0.16)		%	(1.19)		%	(1.81)		%	(2.20)		%	0.14		%	(1.52)		%
Adjusted Yield on AAUM (a) (b)	5.14		%	5.11		%	5.23		%	4.84		%	5.02		%	5.10		%	4.83		%

Interest credits	$	9		$	9		$	9		$	2		$	13		$	18		$	28
Option & futures costs	88			84			80			75			70			172			135
Total interest credited and option costs	$	97		$	93		$	89		$	77		$	83		$	190		$	163
Average account value	22,888			22,244			21,513			20,680			19,842			22,571			19,443
Interest credited & option cost	1.70		%	1.67		%	1.65		%	1.49		%	1.67		%	1.68		%	1.68		%
Net investment spread (a) (b)	3.44		%	3.44		%	3.58		%	3.35		%	3.35		%	3.42		%	3.15		%

(a) Refer to "Non-GAAP Financial Measures Definitions."

(b) Prior periods have been restated to reflect immaterial adjustments management identified in Q2 2022.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Assets Under Management Rollforward and Average Assets Under Management



	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


AUM at beginning of period (a)	$	38,601	$	36,494	$	34,665	$	31,760	$	29,700	$	36,494	$	28,553
Net new business asset flows	2,271		2,223		2,050		2,747		2,327		4,494		3,596

Net reinsurance and other transactions	(550)		(116)		(221)		158		(267)		(666)		(389)
AUM at end of period (a)	$	40,322	$	38,601	$	36,494	$	34,665	$	31,760	$	40,322	$	31,760
AAUM (a)	$	39,306	$	37,459	$	35,699	$	32,692	$	30,423	$	38,351	$	29,722

Annuity Account Balance Rollforward (b)


	Three months ended										Six months ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021


Account balances at beginning of period:	$	27,331	$	26,673	$	25,662	$	24,774	$	23,803	$	26,673	$	22,992
Net deposits	1,673		1,073		1,321		1,311		1,390		2,746		2,655
Surrenders, withdrawals, deaths, etc.	(596)		(539)		(517)		(625)		(628)		(1,135)		(1,213)
Net flows	1,077		534		804		686		762		1,611		1,442

Premium and interest bonuses	21		22		23		20		21		43		39
Fixed interest credited and index credits	91		142		226		217		225		233		373
Guaranteed product rider fees	(42)		(40)		(42)		(35)		(37)		(82)		(72)
Account balance at end of period	$	28,478	$	27,331	$	26,673	$	25,662	$	24,774	$	28,478	$	24,774

(a) Refer to "Non-GAAP Financial Measures Definitions."

(b) The rollforward reflects the vested account balance of our fixed index annuities and fixed rate annuities, net of reinsurance.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Annuity Liability Characteristics


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	June 30, 2022

SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	338	$	2,631
0.0% < 2.0%	20		119
2.0% < 4.0%	41		856
4.0% < 6.0%	832		2,226
6.0% < 8.0%	1,484		3,627
8.0% < 10.0%	2,543		8,248
10.0% or greater	—		5,513
	$	5,258	$	23,220


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	June 30, 2022

CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	543	$	1,393
0.0% - 1.0%	621		1,126
1.0% - 2.0%	1,719		12
2.0% - 3.0%	2,283		—
3.0% - 4.0%	92		—

Allocated to index strategies	—		20,689
	$	5,258	$	23,220

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Summary of Invested Assets by Asset Class


	June 30, 2022						December 31, 2021


	Amortized Cost		Fair Value		Percent		Amortized Cost		Fair Value		Percent
Fixed maturity securities, available for sale:
United States Government full faith and credit	$	214	$	212	1	%	$	50	$	50	—	%
United States Government sponsored entities	52		50		—	%	74		74		—	%
United States municipalities, states and territories	1,428		1,253		3	%	1,386		1,441		4	%
Foreign Governments	186		153		1	%	197		205		1	%
Corporate securities:
Finance, insurance and real estate	5,484		4,834		13	%	4,881		5,109		13	%
Manufacturing, construction and mining	884		746		2	%	880		932		2	%
Utilities, energy and related sectors	2,857		2,335		6	%	2,881		2,987		8	%
Wholesale/retail trade	2,520		2,059		5	%	2,503		2,627		7	%
Services, media and other	3,304		2,674		7	%	3,227		3,349		8	%
Hybrid securities	801		743		2	%	812		881		2	%
Non-agency residential mortgage-backed securities	917		845		2	%	648		648		2	%
Commercial mortgage-backed securities	3,116		3,046		8	%	2,669		2,964		7	%
Asset-backed securities	5,644		5,319		14	%	4,514		4,550		12	%
CLO securities	4,321		4,129		11	%	4,002		4,145		11	%
Total fixed maturity securities, available for sale	$	31,728	$	28,398	75	%	$	28,724	$	29,962	77	%
Equity securities	1,099		958		3	%	1,135		1,171		3	%
Alternative investments:
Private equity	1,351		1,351		4	%	1,181		1,181		3	%
Real assets	388		381		1	%	339		340		1	%
Credit	936		936		2	%	829		829		2	%
Commercial mortgage loans	2,315		2,119		6	%	2,168		2,265		6	%
Residential mortgage loans	2,122		1,971		5	%	1,581		1,549		4	%
Other (primarily derivatives and company owned life insurance)	587		673		2	%	971		1,305		3	%
Short term investments	822		823		2	%	373		373		1	%
Total (a)	$	41,348	$	37,610	100	%	$	37,301	$	38,975	100	%
(a) Asset duration of 5.4 years and 6.4 years vs. liability duration of 5.7 years and 7.1 years for the periods ending June 30, 2022 and December 31, 2021, respectively.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Credit Quality of Fixed Maturity Securities


	June 30, 2022

NAIC Designation	Fair Value		Percent
1	$	16,033	56	%
2	10,121		36	%
3	1,571		6	%
4	532		2	%
5	80		—	%
6	61		—	%
	$	28,398	100	%


	June 30, 2022

Rating Agency Rating	Fair Value		Percent
AAA	$	989	3	%
AA	1,990		7	%
A	7,092		25	%
BBB	8,519		30	%
Not rated	7,796		28	%
Total investment grade	26,386		93	%
BB	1,049		4	%
B and below	362		1	%
Not rated	601		2	%
Total below investment grade	2,012		7	%
	$	28,398	100	%

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation


	June 30, 2022

Total by collateral type	Amortized Cost		Fair Value













Government Agency	$	52	$	50
Prime	800		736
Subprime	49		46
Alt-A	68		62
	$	969	$	894

	June 30, 2022

Total by NAIC designation	Amortized Cost		Fair Value
1	$	944	$	871
2	16		15
3	4		3
4	4		4
5	1		1
	$	969	$	894

Top 5 Reinsurers

June 30, 2022

Financial Strength Rating

Parent Company/Principal Reinsurers

Reinsurance Recoverable (a)

AM Best

S&P

Fitch

Moody's

Aspida Life Re Ltd

1,651

A-

not rated

Wilton Re

1,259

A+

not rated

A+

not rated

Somerset Reinsurance Ltd

626

A-

BBB+

not rated

London Life Reinsurance Co.

101

A+

not rated

Security Life of Denver

not rated

A-

Baa1

(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Non-GAAP Financial Measures Definitions

The following represents the definitions of non-GAAP measures used by F&G, as an operating segment of FNF:

Adjusted Net Earnings Attributable to Common Shareholders (Adjusted Net Earnings)

Adjusted net earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations attributable to common shareholders to eliminate:

(i) Recognized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; the impact of market volatility on the alternative asset portfolio that differ from management's expectation of returns over the life of these assets; and the effect of changes in fair value of the reinsurance related embedded derivative;

(ii) Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost;

(iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset ("VODA")) recognized as a result of acquisition activities;

(iv) Transaction costs: the impacts related to acquisition, integration and merger related items; and

(v) Other "non-recurring", "infrequent" or "unusual items": Management excludes certain items determined to be “non-recurring”, “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years.

Adjustments to adjusted net earnings are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.

Total Shareholders’ Equity Excluding AOCI

Total Shareholders’ Equity Excluding AOCI is based on Total Shareholders' Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on Total Shareholders' Equity.

Assets Under Management (AUM)

AUM is calculated as the sum of:

(i) total invested assets at amortized cost, excluding derivatives, net of reinsurance qualifying for risk transfer in accordance with GAAP;

(ii) related party loans and investments;

(iii) accrued investment income;

(iv) the net payable/receivable for the purchase/sale of investments, and

(v) cash and cash equivalents excluding derivative collateral at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.

F&G - An Operating Segment of FNF

Financial Supplement - June 30, 2022

(All periods are unaudited)

Non-GAAP Financial Measures Definitions (continued)

Average Assets Under Management (AAUM)

AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.

Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.

Yield on AAUM

Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Alternative Investment Yield Adjustment

Alternative investment yield adjustment is the current period yield impact of market volatility on the alternative investment portfolio that differ from management's expectation of returns over the life of these assets. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Adjusted Yield on AAUM

Adjusted Yield on AAUM is calculated by dividing annualized net investment income by AAUM, plus or minus the alternative investment yield adjustment. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.

Net Investment Spread

Net investment spread is the excess of net investment income, adjusted for market volatility on the alternative asset investment portfolio, earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return provided to policyholders, inclusive of hedging costs.

Adjusted Return on Assets

Adjusted Return on Assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.

Sales

Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

Fidelity National Financial (FNF) 8-KFNF Reports Second Quarter 2022 Financial Results