Fidelity National Financial (FNF) 23 Feb 232022 Q4 Earnings call transcript

Ladies and gentlemen, greetings, and welcome to the Fidelity National Financial, Inc. Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Relations. you my Lisa your now Investor Foxworthy-Parker, is to to introduce host, It ahead. go Please

Great. Thanks, welcome, operator and everyone.

look your Joining for join me And Wendy Park, today's We Young, Tony of Executive Chris the Officer; to today are Executive Financial call. Mike Q&A Chief Nolan, Blunt, F&G's F&G's Financial portion Officer; prepared Chief following us our questions Chief Chief and forward remarks. addressing and Officer. will Officer,

Securities and earnings We Act, in Litigation new may changes duty strategy. or Private forward-looking update under Today's reflect future do performance. statements subsequent or such any Reform statements do or projections guarantee call undertake not to which revise events information, to the include events not

other that a believe of those discussion Please to website. recent measures our also cause refer could required our expressed to to morning's reconciled most differ been filings and or the rules discussion company's available SEC SEC we materially factors includes earnings investors. quarterly financial have results reports actual within materials to may on annual This non-GAAP GAAP from accordance be implied. for with the measures meaningful that in where and Non-GAAP

X, release, today Today's at press replay X:XX PM and beginning a also issued Time our It is XXXX. will March website. fnf.com. at we Yesterday, be available on through available call replay telephone available recorded being webcast is which will for also through be Eastern

turn I'll the to CEO, now, And over Nolan. our Mike call

we navigating challenging the and while quarter morning. Thank a you, for Lisa, full and have delivered performance Overall, strong good landscape. year,

first management F&G traded F&G dividend reported under record ownership nearly as a completed and XX% billion at and the this and quarterly its for strategy quarter, its of F&G growth company morning. to earlier earnings year shareholders, FNF publicly year-end. continues deliver call diversified of During sales the assets a held record to of on $XX we distribution

supports common form consolidated an as on shareholder. both on the impact inflection portion and will strong earnings the from point FNF of results. Tony organic which a their has where capitalization of provide of FNF's and distribution dividends, its its performance largest will F&G's in F&G more details forward, reached F&G's Looking benefit growth shareholders to

has in than well Volumes despite the XXXX mortgage the Our rates setting to due due mortgage housing XXXX headwinds. continued mortgage to business recent record in originations title were to in rates months. perform and less considerably falloff levels, precipitous market in increase the mainly increasing

adjusted title opened of an with pre-tax responded actions delivered segment disciplined in earnings to year. and $X.X cost We billion of our full for decrease, the title pre-tax as and XX.X% orders margin began adjusted industry-leading

since proud result our volumes. in this third despite are the title decline pre-tax XXXX, of this best We is as mortgage margin steep

closely. Looking volumes at quarter more fourth

the $XXX opened quarter lower XX% and down orders prior of per total were versus Our XX% per day, January XXXX, for commercial fourth year. by from day, were the XXX

day quarter prior Next, year. the daily and were versus opened the year. per XX% down XX% orders refinance the XX% and down for of And XXXX from January down January from purchase quarter of prior versus of fourth and for month were XXXX the fourth XX% the month the down opened of orders

with October Overall, X,XXX. fourth at total X,XXX, day averaged the November opened per orders in at December X,XXX quarter, X,XXX, and at

opened up total January, in of orders XX% and purchase December. increased month per XX%. opened day over December the January increased were day, orders per opened refinance by day orders For Notably, X,XXX XX% over per

only of second best billion, fourth fourth decrease $X.X million, a was losses, our and XX% XXXX. of $XXX resilient with record-setting at fourth gains recognized the trailing compared Commercial quarter revenue excluding quarter quarter, XXXX. revenue, Total proved our

billion, For $X.XX high. all-time the was an year, commercial revenue

was XX.X% $XXX title pre-tax margin were and adjusted million Adjusted quarter. the pretax title earnings fourth in

all to management challenged a volumes. reacting in environment team to proven market record through is adjust has economic our of participants, operating quickly cycles, order track While experienced the and varying industry volatile

the and on year to recruiting conditions. time, For net continue full title the for through reduced XX% we'll our acquisitions look approximately XXXX, same based market to business manage At to the of have talent. we business strengthen headcount by acquisitions, continue industry opportunities and we

the industry-leading build to take but to long-term. and balance withstand and strong business Our us position expand opportunities only of in advantageous our position of strategically dislocation, sheet an puts advantage title not periods for

our over markets Over expand acquisitions. in acquisition completed previously million our million January XX into for as the TitlePoint the $XXX invested past enhanced year, announced attractive and $XXX XXXX we And of capabilities. footprint have we we in title

this to continued to experience platform registered and from term. year the receiving are real creates approximately platform inHere near in the coordinators, inHere in of XXXX. the consumers. platform agents efficiency agents, also growth enhances has have XXX,XXX our transaction the believe of growing and over transaction customers this fourth of with strong coordinators the increase the growth of value quarter, We XXX% Adoption been fourth long platform both for and and that experience market estate demonstrates We transaction the quarter invest the over and an opportunities inHere

Finally, as rate following steady spin-off rising listing. our from source to earnings, F&G countercyclical growing we business, environment. which benefits have title the F&G's public in a spread-based F&G and its income is partial and confidence of delivers

adjusted the has growth years over the quarters merger two exceeded XX approximately a on of ago, cumulative billion expectation last contributed F&G and far our original net of over earnings $X.X basis. for Since

while approximately majority following the in F&G's F&G's of receiving By F&G dividends. retaining cash our we to continue distribution, dividend XX% will growth from interest benefit also

amount approved a dividend company, will approximately quarterly year, in XXXX, aggregate dividend of program advantage commencing long-term initial committed a initiation has ownership. receive and our Board to for $XXX of majority of This and of an we XX% to F&G's FNF per in provides F&G's million competitive at proportion our Directors approximately remain F&G's cash success.

not employees our the to have incredible effort. for our thank their like and delivered their without also industry-leading performance could would hard year. I commitment over We work up, Wrapping last

me to turn Park the review Let call to quarter now Tony financial fourth FNF's over highlights.

Mike. Thank you,

FNF shareholders. Mike a pro results, to on as value completed The investors has directly of I December XX% invest distribution on X, to our approximately of F&G the purpose of FNF mentioned, highlight continue F&G substantial of to allow distribution consolidated to the Before F&G. and that be stock of and equity will been rata basis the common is the turn to created, in

does F&G reporting assets, continue FNF's liabilities FNF of F&G period December the approximate in interest of of is through equity consolidated portion The financial XX% of consolidate results financial we ownership retains not that of statements. in X reflected the to for purposes, December to operations equity statement. For of own, its non-controlling XX, interest as FNF stake, since control and consolidated F&G FNF's

of to the including were earnings generated $X.X losses results. net net turning recognized total fourth $XXX $XX our Fourth of million, million, Now, billion of versus revenue net in earnings fourth quarter net XXXX. of million, consolidated $XXX recognized in gains We the in quarter $XXX quarter. million including

our of accounting gains primarily preferred in investment whether The securities recognized continue to held net in of were mark-to-market and be securities or are the stock losses the portfolio. treatment quarter in disposed each due and equity period to

compared $X.X $X.X Excluding billion net in of losses, revenue as the and billion total was recognized with gains quarter XXXX. fourth our

XXXX. Adjusted per million. share million. of loss per $XXX $XX $XXX Title million $X.XX $XXX or for share had segment compared net $X.XX with adjusted earnings segment the from segment an million. F&G or fourth of continuing operations contributed million contributed And The quarter The the was $XXX net Corporate

for performance saw the we the together for as full F&G the environment generated difficult a strong profitability. strong year growth XXXX, as solid For segment which despite segment, Title well

revenue, in from full of a in billion. a contributed XX% million. set and order in year decrease XXXX Title contributed XXXX. in decrease excluding and the loss had F&G year This reflects $X.X net net losses, $XX segment was year Total full segment XX% an The billion from adjusted and the $X.X gains the adjusted of million, volumes full XXXX. $XX The despite decline in earnings, $XXX billion segment Corporate generated title billion record $X.X

the segment. financial specific QX to to highlights Turning Title

$XX Title by quarter of XX% XXXX. versus XXXX, segment fees XX% billion decreased decreased decreased the of XX%, revenue fourth quarter, in $X.X premiums year. recognized generated billion net by Our the compared versus fourth $X.X gains agency total premiums escrow and and prior Direct quarter by million, in fourth other the of the in excluding with title-related

versus All the the XX.X% by to XX%. record costs pre-tax Personnel pre-tax quarter XXXX. compared in decreased decreased margin business title XX% year full and adjusted operating in, decreased title the XX.X% other quarter. a in for the margin year for XX.X% the with XX.X% Adjusted full year prior generated expenses by title

Corporate and from million XXXX business with billion $X.X year due investments. and corporate increased the Our quarter, Interest at segments million Title increases in prior our December title totaled short-term as investment XX. of income in and and income to $XX investment the compared primarily exchange $XXX portfolio

Given environment, our investment would the reinvestment portfolio higher three-year for rising of anticipate income short rate through potential maturities. we duration

to we range cash declining the $XX income Looking to investment declining investment $XX short-term quarterly and moderate and and with interest balances to in and exchange balances. million XXXX, million expect XXXX spreads potentially

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

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

segment. F&G and hosted highlights to will Next, earnings on F&G morning this key a the call financial its to focus its update, the quarterly performance. provided specific QX earlier thorough so I turning highlights of

sales retail XXXX. increase record to partially reflects were institutional sales, the quarter fourth the the retail more channels. than offset opportunistic and gross This XX% in lumpier $X.X expected an are quarter, which Total lower over by be billion fourth in of sales,

the $X.X the were XXXX. earnings Ending were of fourth fourth quarter the December XX, flow million billion quarter X. Net segment XXXX. management from million for fourth $XX.X $XXX September quarter, [indiscernible] as under for in reflecting effective for retained were of the X% compared increase of decrease the the reinsurance sales to a net fourth quarter of $XXX XXXX, for assets with a F&G Adjusted billion

the earnings from short-term expectation. that volatility investment alternatives long-term movement F&G's portfolio, reflect differ adjusted from mark-to-market net

growth consistent F&G, the As continues F&G title as over grow to generate to time as Mike which the performance from continue dividends of largest well and will anticipate the economics shareholder countercyclical cash with earnings. business mentioned, and F&G will receiving we to segment's as benefit FNF

and generous repurchasing and innovation to our dividend technology and in the focused acquisitions, real ensuring few with Let we encompasses as strategic making a balanced title allocation and up capital environment. This current the We in strategy capital quarterly shareholders, sensible growth to navigate on title a opportunities technology organic businesses, me support liquidity. estate-related business, M&A to in wrap evaluate other thoughts a initiatives and remain strategic agencies on continuing investments paying shares.

the ended with company the We cash holding investments at short-term in level. million liquid quarter $XXX and

Importantly, January reflect which this cash. balance of $XXX of of acquisition million $XXX business funded a Knight does holding $XX of not XXXX, X, of FNF's million, cash on million operating TitlePoint combination from Black and from for company line the

$X.X consolidated from million in on closed $XXX November. unsecured approximately third-party to billion its facility quarter preceding credit FNF's draw December debt XX, new that on up was senior due F&G's revolving the

as a XX.X% December result, was As our AOCI, XX. debt-to-capitalization excluding ratio, of

in F&G and use As from January notes notes intends draw senior debt business completed to revolver the as to support on due a proceeds needs. first liquidity net also the senior of issuing public XXXX. $XXX planned, future XXXX, million XX, successfully issuance the of for growth and company their unsecured F&G

a its at pro revolver excluding paydown new million expect in debt-to-capitalization long-term AOCI. that including and with partial of sheet On notes ratio, XX.X%. target line a XXXX, of $XX our and on AOCI, will estimated in FNF's January as our approximately This basis, in a result forma we XX% equity to excluding range is growth naturally is balance shareholders' F&G's delever XX%,

on Going $XXX debt outstanding this of expense for approximately forward, $XX our F&G time. debt million million, for comprised million consolidated approximately is annual debt $XX and FNF's Holdco interest at outstanding

approximately of sustainable. for to dividends conditions. of a we share and flows, over quarterly current expected $XXX million common The time, million. alternative our During common market total We paid the $X.XX cash and of per $XXX quarter, annual reviewed view dividend subject uses of is to increase as dividend fourth capital

the FNF quarter. quarter active has to return over cash first through the periods throughout share into continues and, subject blackout shareholders time excess to remained to fourth and repurchases

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

closed the title also to we'll quarter on fourth We evaluate opportunities navigate the current in and as TitlePoint two January. acquisitions continue environment. M&A early we in business And

shareholders our have common repurchases. through approximately we capital of fourth million returned the quarter, $XXX For dividends to and share

have through repurchases. the year, dividends over share billion and For returned full we $X common

me let to remarks, concludes prepared for our This questions. our now operator call the back turn and

you. line a Our KBW. this conducting George at go comes Instructions] Thank question will of session. be Ladies time first from Bose ahead. [Operator gentlemen, and question-and-answer we Please from the

morning. Hi, guys, Actually, And margins trend just I all just trended? reflected get margin just the segment? in was could or by curious an good that update if on across how the segments,

is Tony. of the past. done margins This highlight by as segment the Bose. Sure, some Yeah, in I'll we've

Just looking of XXXX Keep the in quarter quarter the quarter ever. against at the that, fourth was best up XXXX. our fourth XXXX of fourth mind quarter of

year XX% in Our XX% over in direct against a X% prior generated quarter. the Agency XX% prior the pre-tax year operations up against up margin, quarter. was

And, that quarter margins business. over we've of all XXXX. to by generates have year was agency seen centralized of we what's refinance Some orders prior the course that the business refinance driven tremendous a obviously, on margin happened in

that's why it as agency down is is. So as much

commercial up and which fourth National of also businesses the of sub-servicing roughly that some has, loan in the was quarter last quarter, like, but others, in XX% held combination XX% year, versus fourth XX%, operations with were at default the refinance, then And XXXX. but quarter ServiceLink, almost record XX%. about centralized and at they

-- Thanks us, interest, lot actually apart in through detail. what then, on that just for else piece, the of flows F&G Okay. non-controlling a the Great. item? can from And line that you remind terms

F&G in show honest. of the investments. don't segment, certain type move up. be in Not businesses that some needle most Yes. our a to then own whole lot. find you'll But markets, the really a venture of piece Title we have joint but XXX% lot, they will the We And

in a have there's anything going think you'll think it's and only up there, segment. And think see, the don't to -- month's much show I corporate We worth probably I there. in I don't or even

that's make And be so, way of our won't But net forward. going XXXX. XX% you really of into see until earnings it the going we F&G to

you. Okay. Perfect. Thank

you. Thank

DeVries go Our next from Barclays. Mark ahead. question comes from of the line Please,

Thank buybacks XXXX. some expect on what you. get we I was to in on color should hoping

down that the subject go that quarter? pretty to million $XXX And the to around had of XQ. a pace extended had in You a prior the to expect big cadence distribution? to back in kind maybe quarter in you should FG Was closer the step fourth we blackouts to XXXX, the

Yes, is Mark, Tony. this

were about the the blacked the back step quarter, most right QX, dependency out for with of we You're in of the F&G spin.

active So spin. quarter December until during we weren't the very after the X

forward, for Board we going are terms of for would hard pre-announce to in think the terms We can activity. me In we management say, of I buyback we're shares -- I where and undervalued. headed Board. it's think and our the speak agree, don't typically

But limited from think also don't we the point. that, mark terms reasons that's to we got first in F&G benefit we've spin-off, think that with light that certainly FNF share float. for any this there of including price all, be believe might And that set we of and -- don't

think these or probably the think shares plays our market And buybacks. allocation so. the the course, $X that last environment just mean of than the of and at in we prices. be our how over returned M&A, investment, were we we'll the see business weigh more terms Board that year. And will sure the internal half year. over we million think I billion And But that, dividends do course We've on $XXX of capital I in so during I'm buybacks all I buybacks. -- the of attractive dividend and are got But And year fronts. we out

question a alternatively, count, here see Is head that's helpful. through And flowed or that do the kind expenses. on to not on more there quarter you just took the fourth expect to should that's that we the was in action results of Okay, in yet then later XQ?

declining. in market of a our show head XX% Mike. It's probably quarter took Mark. in more fourth fourth we And mean, sizable is net there's I always of fourth doesn't which to a pretty of the acquisitions, the quarter. some in I quarter, do the count out up yes, work that's the fully Sure, would number. in done say

through X%. of the reduce flow really will another quarter that some the will next think be think I will in first actions reduced quarter. -- And to further order dependent. So, about probably I

always So, branch wouldn't to as this, as we've We've follow will those on our well but significant, work I locations. infrastructure done anything say done, movement Mark, we'll you some and kind relative there. had know some of we've orders.

evaluate as as some of what I is with could think have help market And rates, turn down, part from as turned quickly up. this to we quickly it

don't term to in of hurt cost. do too continue you that to certainly manage we're to going midterm you can the and short so want but the much And the in long-term, kind

really to We're year the a close to pleased margin work in talk year margin the XX% midpoint normalized is XX% our really really with the to of of XX.X%, very finish did we that which full of we with the about. course

So, a more be do. lot there work done, good could but of certainly, to

great. you. Thank Okay,

you. Thank

Our comes from Please from ahead. line Andrew Suisse. next go question of the Credit Kligerman

you. Thank Great.

title the expenses. of $XXX just it you million numbers, operating following with margin from did $XXX other looks So, looking to prior at a expenses the question XX.X%. sequentially on lot about kind like up was million. And about your

year. So, you to that cite very low plus for relative that the XX

Does around reduction quarter. XX% is zone? in title make that does that So, XX%, Maybe of edges margin stabilizing first a staff like stuff do mentioned number double-digits. in is you the that the you kind maybe X% some the kind in But of look it in low the sense? stabilizing potential

year talking comparison? a would I context. the depend quarterly Are think comparison about or it full you on a Well,

think will XXXX, where margin think kind title makes if sense. out environment, year, of you next Whatever level same do now? you the assuming the mean, more I in being

be think in I Yeah, would responding it that. helpful to

halves, – XXXX, XXXX, the of sales, of two sale existing as look As year the you of years, and we had best sale was the been but existing January really a we over in home a tale year, pointed had we in third of regard. number so And out, have full XX.X% really our fourth at the you about a XX.X%, if kind think the if quarter, in in that almost will. had, But last years. as the it home we at think XX existing home you now if numbers XX that X had one in best and annualized markets would about which their million the was you declination

the the by year, And sale to worst happened that of in quarter was same same XX that years, last markets if closer and million, be down would which the the one of number year. in fourth annualized, X the home

kind So a manage makes of more I definitely downward think challenging margins volatility that environment. you your as it in

had XXXX. And got the weakest then fourth we to refinance the by quarter time markets we had the of since of we

think quarter on we going activity go fourth for I and refinance the to in that when up we very in the think first issue the sale really was an the environment up impact that very into existing inventory with And the as industry also you it's the quarter. but quarter, show quarter. low industry first doesn't home about ended soft in lot the create a So inventory fourth activity. of It

particularly XXXX, pressured some like then is And that very we'll lower also particularly as the they December And commercial. the So look margins I being still have over I by January strong of have And doesn't market. the the we'll drive will get commercial think a as in our we're that, but to because structure. to seen and a the certainly mean, then be in direction, It up would help returns years, just it's to we of we've year. last we current market saw confident say sequentially see XX% in from than will few increase how as margins QX. be encouraging. I think progress in that that I purchase solid positive in orders cost course definitely going in encouraged

some it tailwinds I And prices and and particularly rates environment if maybe are moderate where I little demand a think bit. housing, to really the – And underlying get easing I points I rebound a really sales with around wouldn't be we off. could an it maybe from really fell we see surprised home rates similar quickly, annualized at to in help that numbers all move that think how those existing

pause I'll there. – So

like That a quickly. I Because very view too the wouldn't is, was – Mike, as very take the you you were If expenses to stays staff, more the saying negative have and very other probably helpful. And want Fidelity I could on as of guess things skeptical environment. other right? feel much to way go environment cut I op earlier,

So a not or too staff expenses? I in should expect other operating either cut of much

I think with I'll start Well, staff.

but do just with eye and could short-term an to yourself mid-term something mid towards not I I want have dependent. the see then said think, you earlier, the more the you really and in orders hurt that pressure from rates, this work at on deeply. order we to the infrastructure helpful the look doing our turnaround that's side to in do continue If with by it and more staffing as in long-term. don't be we'll caveat also will fall and

continue still in do to not in long-term next the We're are to we're just have market what away the prospects we're talented recruit current of environment we've for revenue us cost optimistic and the the XXXX. in to people for few the months. And very and see bullish the industry. acquisitions, from kind shying to that the again, does the mid- And we'll and we've we're done industry, long-term. moves going made, Even into continue to attached reductions particularly make continuing with

items, the just revenue our just personnel are with on variable And Tony. is Maybe as Probably actual this I'll one-third refresher. a with Andrew, costs weigh and of in profits. line

premium line other things, with off XX% those are that of falls declines operating probably would volume. costs naturally revenue. And side with be things And that variable That item, on the so of like the just movements taxes about some and like. of in

But Mike's costs sort we're of the the fixed insurance, fixed that headcount costs thing. in we short like fairly fixed things, clearly operating of in fixed in when run. have reductions. run, it's fairly side Technology other facilities the more are And both. referring on about to costs short are talking

very helpful. Thanks. Very,

Thank you.

comes question line next from Our Please the Stephens Campbell John of Inc. ahead. from go

guys. Good Hey, morning.

John. Hey,

John. Hey,

rates. count Thanks for order look the That January rebounded helpful. sounds the I the and guys might be you like where a resi it'd of to on momentum commercial? if then seen the February historical February sequentially got with some was that. little on provide might It beyond that some pickup historically, in from hoping in we've we get guess, on trends does hand, sit, count great update. what it you've I'm order be bit reverse month-to-date like average. able Where trends to And -- it color

Yes.

I little So personal don't better don't I give pleased the was off it's generally maybe to John. sequentially kind might it out We have order first much. but XX% be to But historical a of that a rebound. increase order than to part, think month purchase on certainly counts, that the see

mislead as goes kind just it the because change way one partial could So a February in if other the we or month got of trends potentially month on.

commercial count. particularly show up order think in that I

mortgage they've in rates, say just past weeks. month, moved we've that up when any certainly look would So at I haven't but caused concerns. the gone And three trends through the you the -- as

current that trends impact even to still we for so see purchase how And commercial may have and activity.

see virtual just lead a Mike, then from And your mortgage helpful. rate typically how That's closings? much movements experience, and between you time do Okay. then the of

environment. I were the great probably Yeah, and XXXX, -- something you short fast we've XXXX, quarter a seen, differently of like we've think seen than time. X.XX%. me, fourth but don't fourth ever better -- answered average in or of than in I the past this of think And the X.XX% know it question. never would in never were they like rates I have in mean, we've it's would But that. rates I at such this move a by maybe quarter period guys

moving the when see rapidly, impacted closings then follow We they're quickly. days very, purchase very So XX it -- normally definitely that later. and orders the

So more way hold of purchase in normalized environment a kind better. rate more gradual in up that your increases environment, with orders

XXX don't see rates fairly are in or XX, basis point up off incrementally, moving fall You a dramatic rates. with refi if off quickly shut change a XX will

environment, pointing But purchase purchase out those remarkable, annualized fast. million going after just again, EHS those choked million And one And orders fall and number, kind it's those are think from closings got $X in this in off $X I days XX that year. mean of I opens. to

then. But time on been guys you the deal, sense. Obviously, to got makes originally -- and pushback wanted Yeah, costs bit of does mean, has to I some the mean, uncertainty, volatility. when just have F&G but best guess, makes back the it that feel I little expense it a touch whatnot. I able know the fast. the manage historically lag you been degree I recognition bunch, of on guys to create you I of, -- real since like announced that I pushed with steady

that the my I showed did total year and the place. this think earnings first think period, like up ago combined. in it why contribution I XX% looks math, like looks quarter it it's of this in about It title you doubled was period. F&G, F&G mean, by I

might to do over earnings, I half change but F&G side, roughly that just envision this think a rise of the was know XX% earnings lot can for around title this it total I you year? year, of

the this side. other is John, Tony. to Yeah, Yeah, it's have hard because know we'd to know

lot -- growing But billion, assets earnings are I are made well, $XX a a that like X% phone F&G, they are but and acquisition. at is at the talk reason and a think, almost I year-end. about assets on predictable, talk Wendy on Chris more which think and return also about as they

And easy to so pretty math. it's do the

And whole as in about so XXXX. contribution very that piece we to good feel their increases, the

just that it's where be model But As like just tough market, the it's cyclical story in good trying something to a is, heads. going and you tough news that's title QX, dependent, a we business, out estate the more it's to counterbalance that saw just of and playing a side. know you don't in in kind real against and order guess know, market I we term a see the on short growth can the

we for the so, right know balance. pleased we're happy if with get I credit that. we And with but don't much now, were it

Yes. guys. sense. Makes you, Thank

Thanks.

unmuted. line Please, question [Operator Instructions] you. Mark from go the Truist. of Our Thank Hughes next ahead. line from your is comes Mark,

end from You and yourself your could question. begin with unmute please our

Okay. was on you. Yes. mute. I Thank

Sorry fee about file commercial down. that. The national was per

a do trending How here? that XXXX tough in very had or early on at least you You see comp.

Yes, Mike. could the little the And by national I influenced be would of a I think drop to mean, relatively was of comp think same. the it it's be it and bit at lumpier in of tends off XX,XXX, big fall fee can it fourth was a that out. number, some. per because the XXXX. It stay quarter in will deals file difficult, Mark, course, I very

I a point guess would per the around band XXXX, let's $XX,XXX. it was, those for year, is my best right file national in two at this in -- fee numbers. is, full it's our between But call commercial it, $XX,XXX. And

on update Good. any you. letters? Okay. And then, opinion Thank attorney the

consumers. don't in cost does our lowers wouldn't There's promotion I that don't anybody some seen it I order around think impact shown I that that's that. haven't to it. much seen volumes say for I that. know due major update. that it a we've

It's a it of could raise costs actually an I bit for unknown. think people.

coverage doesn't forgery, is fraud and title But under what and a insureds policy cover public doesn't risk, in hidden defend title doesn't about compared to doesn't product cover afforded know mistakes we costs records, do and lesser like the the policies a cover it defense does.

a questions there's industry think, like I -- So, regulated. not title the about lot and it's product the of regulated is

We heavily We're regulated level have to at aren't. and post claims the reserves. state ALLs

much -- to-date. of just So again, an haven't impact but seen

Appreciate you. that. Thank

closing end would we Thank to the of you. to conference Nolan like gentlemen, the I for reached over Ladies the and now have Mike turn comments. session. question-and-answer

you. thank Well,

to positioned FNF strategy of current the environment. higher environment market execute disciplined despite We are uncertainty well navigating our long cycles. overall pleased mortgage to with this history our and through rate due volatility results operating and the macro in is

Likewise, F&G and appreciate your off start benefit updating a to company. morning. in time environment rate to and first our look traded is quarter publicly Thanks from on forward poised interest you for this a rising the call. strong FNF to as We is your earnings

conference your you. participation. for The Thank of concluded. you National Financial, has Thank now Fidelity Inc.

now may disconnect You your lines.