SEC Filing - Fidelity National Financial

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fnf-20210224

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

February 24, 2021

Fidelity National Financial, Inc.

(Exact name of Registrant as Specified in its Charter)

001-32630

(Commission File Number)


Delaware						16-1725106
(State or Other Jurisdiction of Incorporation or Organization)						(IRS Employer Identification Number)

601 Riverside Avenue

Jacksonville, Florida 32204

(Addresses of Principal Executive Offices)

(904) 854-8100

(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

FNF Common Stock, $0.0001 par value

FNF

New York Stock Exchange

5.50% Notes due September 2022

FNF22

New York Stock Exchange

3.40% Notes due June 2030

FNF30

New York Stock Exchange

2.45% Notes due March 2031

FNF31

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.						Results of Operations and Financial Condition

On February 24, 2021, Fidelity National Financial, Inc. (the "Company", "FNF") issued an earnings release announcing its financial results for the Fourth Quarter of 2020. A copy of the FNF earnings release is attached as Exhibit 99.1 to this Current Report on Form 8-K. In addition, the Company is furnishing the quarterly financial supplement for its F&G operating segment as Exhibit 99.2 to this Current Report on Form 8-K.

The following information, including the Exhibits referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 9.01.						Financial Statements and Exhibits

(d) Exhibits

Exhibit

Description

99.1

Press release announcing FNF Fourth Quarter 2020 Earnings

99.2

Financial Supplement of F&G, dated February 24, 2021

101

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Fidelity National Financial, Inc.

Date:

February 24, 2021

By:

/s/ Anthony J. Park

Name:

Anthony J. Park

Title:

Chief Financial Officer

Document

https://cdn.kscope.io/7ceb1c156015b6ed6ac7817e3a333318-graphicfnfer1.jpg

FNF Reports Fourth Quarter 2020 Diluted EPS from Continuing Operations of $2.74 and Adjusted Diluted EPS from Continuing Operations of $2.01, Pre-Tax Title Margin of 29.4% and Adjusted Pre-Tax Title Margin of 22.7%

Jacksonville, Fla. - (February 24, 2021) - Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance and transaction services to the real estate and mortgage industries, today reported operating results for the period ended December 31, 2020.

•Total revenue of approximately $3.8 billion in the fourth quarter versus $2.4 billion in the fourth quarter of 2019

•Fourth quarter net earnings from continuing operations of $803 million and adjusted net earnings from continuing operations of $588 million versus net earnings of $340 million and adjusted net earnings of $263 million for the fourth quarter of 2019

•Fourth quarter diluted EPS from continuing operations of $2.74 and adjusted diluted EPS from continuing operations of $2.01 versus diluted EPS of $1.22 and adjusted diluted EPS of $0.95 in the fourth quarter of 2019

•Recognized gains were $573 million in the fourth quarter versus recognized gains of $131 million in the fourth quarter of 2019 primarily due to mark to market accounting treatment of equity and preferred stock securities whether the securities were disposed of in the quarter or continue to be held in our investment portfolio

Title

•Total revenue of approximately $3.0 billion versus approximately $2.3 billion in total revenue in the fourth quarter of 2019

•Total revenue, excluding recognized gains and losses, of approximately $2.8 billion versus approximately $2.2 billion in the fourth quarter of 2019, an increase of 26.6%

•Pre-tax earnings of $896 million and adjusted pre-tax earnings of $624 million versus pre-tax earnings of $468 million and adjusted pre-tax earnings of $355 million in the fourth quarter of 2019

•Pre-tax title margin of 29.4% and adjusted pre-tax title margin of 22.7% versus pre-tax title margin of 20.3% and adjusted pre-tax title margin of 16.3% in the fourth quarter of 2019

•Fourth quarter refinance orders opened increased 90% on a daily basis and refinance orders closed increased 86% on a daily basis versus the fourth quarter of 2019; purchase orders opened increased 14% on a daily basis and purchase orders closed increased 18% on a daily basis versus the fourth quarter of 2019

•Total commercial revenue of $322 million, a 0.3% increase versus total commercial revenue in the fourth quarter of 2019, driven by a 1% increase in closed orders; fourth quarter total commercial orders opened increased 3% compared to the prior year

•Overall fourth quarter average fee per file of $2,116, an 11% decrease versus the fourth quarter of 2019

Title Orders


		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
October 2020		259,000	40%		210,000	39%
November 2020		227,000	38%		190,000	37%
December 2020		242,000	35%		217,000	38%

Fourth Quarter 2020		728,000	38%		617,000	38%


		Direct Orders Opened *		Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
October 2019		195,000	50%	153,000	48%
November 2019		157,000	49%	127,000	49%
December 2019		140,000	51%	137,000	50%

Fourth Quarter 2019		492,000	50%	417,000	49%
* Includes an immaterial number of non-purchase and non-refinance orders

F&G

F&G, a leading provider of annuities and life insurance, reported operating results for the fourth quarter of 2020. As a result of acquisition accounting (purchase accounting or PGAAP), financial results for periods after June 1, 2020 are generally not comparable to the results of prior periods. Certain metrics, such as sales and policyholder account values, are not affected by PGAAP and are comparable to prior period data.

•Total Retail Annuity Sales of $1,309 million in the fourth quarter, an increase of 42 percent to the prior year, and an increase of 23 percent from the sequential quarter

•Fixed Indexed Annuities (FIA) Sales of $947 million in the fourth quarter, an increase of 19 percent to the prior year, and an increase of 16 percent from the sequential quarter

•Average Assets Under Management (AAUM) of $27.9 billion for the fourth quarter, up from $27.0 billion in the sequential period driven by net new business asset flows

•Net Investment Spread: FIA spread for the fourth quarter of 302 basis points; Total Spread, including all product lines, for the fourth quarter of 255 basis points

•Net Earnings Attributable to Common Shareholders of $137 million for the fourth quarter, including a $2 million loss from discontinued operations and $11 million net favorable mark-to-market and other items which are excluded from Adjusted Net Earnings

•Adjusted Net Earnings From Continuing Operations Attributable to Common Shareholders of $128 million for the quarter, including $68 million of net favorable notable items

William P. Foley, II, Chairman, commented, “I am very proud of our team as they navigated a challenging environment and delivered record results for both the fourth quarter and full-year 2020 in our Title business. We generated adjusted pre-tax title earnings of $624 million and an adjusted pre-tax title margin of 22.7% as refinance and purchase orders opened remained strong through the fourth quarter of 2020. We continued to see a rebound in commercial real estate activity as total commercial orders opened increased 3% in the quarter as compared to the year ago fourth quarter.

We also made significant headway on our technology investments in our Title business having recently announced both the inHere Experience Platform and, subsequently, Close inHere. The inHere platform transforms the overall experience of buying, selling, and refinancing a home by helping to enhance the safety and simplicity needed to start, track, notarize, and close the transaction. While we continue to drive innovation in the Title industry, we believe our significant national footprint will prove to be a real plus as further adoption of our client facing and title automation technology expands our competitive advantage.

Turning to F&G, the Company continues to execute on its growth strategy and generated retail sales growth of over 40% in the fourth quarter. The credit rating upgrade that F&G has enjoyed as a result of the acquisition by FNF has opened additional large market opportunities. F&G is gaining momentum in the newly entered bank and broker dealer channel, generating $500 million of channel sales since their launch on July 1st. Expansion into institutional products, including the pension risk transfer market, will also be an area of strategic focus for F&G in 2021. We expect F&G's next phase of growth to benefit from leveraging FNF's expertise in capital allocation, value creation and strategic oversight."

Mr. Foley concluded, "Finally, we will remain focused on maintaining a balanced capital allocation strategy centered on returning capital to shareholders while investing in the business to drive growth. In the fourth quarter, our Board approved a 9.0% increase in our quarterly cash dividend to $0.36 per share and announced a plan targeting $500 million of share repurchases, based on market conditions over the course of the following twelve months. During the quarter we repurchased 3.8 million shares at an average purchase price of $36.77 per share."

Conference Call

We will host a call with investors and analysts to discuss fourth quarter 2020 FNF results on Thursday, February25, 2021, beginning at 12:00 p.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at fnf.com. The telephone replay will be available from 3:00 p.m. Eastern Time on February 25, 2021, through March 4, 2021, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13715589. An expanded quarterly financial supplement providing segment results is available on the FNF Investor Relations website.

About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries. FNF is the nation’s largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States. More information about FNF can be found at fnf.com.

About F&G

F&G is part of the FNF family of companies. F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of annuity and life insurance products and is headquartered in Des Moines, Iowa. For more information, please visit www.fglife.bm.

Use of Non-GAAP Financial Information

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, FNF has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net earnings, adjusted earnings per share, adjusted pre-tax title earnings, adjusted pre-tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), F&G adjusted earnings, F&G adjusted earnings attributable to common shareholders, F&G adjusted operating return on common shareholders’ equity excluding AOCI, F&G net investment spread, F&G average assets under management and F&G sales.

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. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.

Forward-Looking Statements and Risk Factors

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: the ability of FNF to successfully integrate F&G's operations and employees; the potential impact of the announcement or consummation of the proposed F&G transaction on relationships, including with employees, suppliers, customers and competitors; changes in general economic, business, political and COVID-19 conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that F&G and our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of FNF's Form 10-K and other filings with the Securities and Exchange Commission ("SEC").

FNF-E

SOURCE: Fidelity National Financial, Inc.

CONTACT: Jamie Lillis, Managing Director, Solebury Trout, 203-428-3223, jlillis@soleburytrout.com

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		F&G		Corporate and Other
Three Months Ended
December 31, 2020
Direct title premiums	$	845	$	845	$	—	$	—
Agency title premiums	1,102		1,102		—		—
Escrow, title related and other fees	891		775		58		58
Total title and escrow	2,838		2,722		58		58

Interest and investment income	359		31		327		1
Recognized gains and losses, net	573		290		282		1
Total revenue	3,770		3,043		667		60

Personnel costs	863		786		33		44
Agent commissions	842		842		—		—
Other operating expenses	453		396		30		27
Benefits & other policy reserve changes	460		—		460		—
Depreciation and amortization	107		36		64		7
Claim loss expense	87		87		—		—
Interest expense	28		—		8		20
Total expenses	2,840		2,147		595		98

Pre-tax earnings (loss) from continuing operations	$	930	$	896	$	72	$	(38)











Income tax expense (benefit)	128		192		(67)		3
Earnings (loss) from equity investments	6		6		—		—
Loss from discontinued operations, net of tax	(2)		—		(2)		—
Non-controlling interests	5		5		—		—

Net earnings (loss) attributable to common shareholders	$	801	$	705	$	137	$	(41)

EPS from continuing operations attributable to common shareholders - basic	$	2.75
EPS from discontinued operations attributable to common shareholders - basic	(0.01)
EPS attributable to common shareholders - basic	$	2.74

EPS from continuing operations attributable to common shareholders - diluted	$	2.74
EPS from discontinued operations attributable to common shareholders - diluted	(0.01)
EPS attributable to common shareholders - diluted	$	2.73

Weighted average shares - basic	292
Weighted average shares - diluted	293

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		F&G		Corporate and Other
Three Months Ended
December 31, 2020
Net earnings (loss) attributable to common shareholders	$	801	$	705	$	137	$	(41)

Loss from discontinued operations, net of tax	(2)		—		(2)		—

Net earnings (loss) from continuing operations attributable to common shareholders	$	803	$	705	$	139	$	(41)

Pre-tax earnings (loss) from continuing operations	$	930	$	896	$	72	$	(38)

Non-GAAP Adjustments
Recognized (gains) and losses, net	(367)		(290)		(76)		(1)
Indexed product related derivatives	54		—		54		—


Purchase price amortization	29		18		7		4
Transaction costs	5		—		4		1


Adjusted pre-tax earnings (loss)	$	651	$	624	$	61	$	(34)

Total non-GAAP, pre-tax adjustments	$	(279)	$	(272)	$	(11)	$	4
Income taxes on non-GAAP adjustments	64		65		—		(1)


Total non-GAAP adjustments	$	(215)	$	(207)	$	(11)	$	3

Adjusted net earnings (loss) from continuing operations attributable to common shareholders	$	588	$	498	$	128	$	(38)

Adjusted EPS from continuing operations attributable to common shareholders - diluted	$	2.01

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		Corporate and Other
Three Months Ended
December 31, 2019
Direct title premiums	$	656	$	656	$	—
Agency title premiums	828		828		—
Escrow, title related and other fees	692		642		50
Total title and escrow	2,176		2,126		50

Interest and investment income	55		49		6
Recognized gains and losses, net	131		135		(4)
Total revenue	2,362		2,310		52

Personnel costs	717		681		36
Agent commissions	628		628		—
Other operating expenses	455		428		27
Depreciation and amortization	46		39		7
Claim loss expense	66		66		—
Interest expense	11		—		11
Total expenses	1,923		1,842		81

Pre-tax earnings (loss)	$	439	$	468	$	(29)












Income tax expense (benefit)	98		103		(5)
Earnings from equity investments	3		2		1
Non-controlling interests	4		5		(1)

Net earnings (loss) attributable to common shareholders	$	340	$	362	$	(22)

EPS attributable to common shareholders - basic	$	1.24
EPS attributable to common shareholders - diluted	$	1.22

Weighted average shares - basic	274
Weighted average shares - diluted	278

FIDELITY NATIONAL FINANCIAL, INC.

FOURTH QUARTER SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		Corporate and Other
Three Months Ended
December 31, 2019
Net earnings (loss) attributable to common shareholders	$	340	$	362	$	(22)

Pre-tax earnings (loss)	$	439	$	468	$	(29)

Non-GAAP Adjustments
Recognized (gains) and losses, net	(131)		(135)		4


Purchase price amortization	27		22		5
Transaction costs	—		—		—

Severance costs	6		0		6

Adjusted pre-tax earnings (loss)	$	341	$	355	$	(14)

Total non-GAAP, pre-tax adjustments	$	(104)	$	(113)	$	9
Income taxes on non-GAAP adjustments	24		28		(4)
Non-controlling interest on non-GAAP adjustments	(3)		(3)		—
Total non-GAAP adjustments	$	(83)	$	(88)	$	5

Adjusted net earnings attributable to common shareholders	$	263	$	274	$	(11)

Adjusted EPS attributable to common shareholders - diluted	$	0.95

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		F&G		Corporate and Other
Twelve Months Ended
December 31, 2020
Direct title premiums	$	2,699	$	2,699	$	—	$	—
Agency title premiums	3,599		3,599		—		—
Escrow, title related and other fees	3,092		2,782		138		172
Total title and escrow	9,390		9,080		138		172

Interest and investment income	900		151		743		6
Recognized gains and losses, net	488		143		352		(7)
Total revenue	10,778		9,374		1,233		171

Personnel costs	2,951		2,778		65		108
Agent commissions	2,749		2,749		—		—
Other operating expenses	1,759		1,536		75		148
Benefits & other policy reserve changes	866		—		866		—
Depreciation and amortization	296		149		123		24
Claim loss expense	283		283		—		—
Interest expense	90		1		18		71
Total expenses	8,994		7,496		1,147		351














Pre-tax earnings (loss) from continuing operations	$	1,784	$	1,878	$	86	$	(180)

Income tax expense (benefit)	322		432		(75)		(35)
Earnings (loss) from equity investments	15		14		—		1
Loss from discontinued operations, net of tax	(25)		—		(25)		—
Non-controlling interests	25		25		—		—

Net earnings (loss) attributable to common shareholders	$	1,427	$	1,435	$	136	$	(144)

EPS from continuing operations attributable to common shareholders - basic	$	5.11
EPS from discontinued operations attributable to common shareholders - basic	(0.09)
EPS attributable to common shareholders - basic	$	5.02

EPS from continuing operations attributable to common shareholders - diluted	$	5.08
EPS from discontinued operations attributable to common shareholders - diluted	(0.09)
EPS attributable to common shareholders - diluted	$	4.99

Weighted average shares - basic	284
Weighted average shares - diluted	286

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		F&G		Corporate and Other
Twelve Months Ended
December 31, 2020
Net earnings (loss) attributable to common shareholders	$	1,427	$	1,435	$	136	$	(144)


Loss from discontinued operations, net of tax	(25)		—		(25)		—

Net earnings (loss) from continuing operations attributable to common shareholders	$	1,452	$	1,435	$	161	$	(144)

Pre-tax earnings (loss) from continuing operations	$	1,784	$	1,878	$	86	$	(180)

Non-GAAP Adjustments
Recognized (gains) and losses, net	(181)		(143)		(45)		7
Indexed product related derivatives	111		—		111		—

Debt issuance costs	5		—		—		5
Purchase price amortization	106		73		16		17
Transaction costs	68		—		21		47
Other adjustments	1		1		—		—

Adjusted pre-tax earnings (loss)	$	1,894	$	1,809	$	189	$	(104)

Total non-GAAP, pre-tax adjustments	$	110	$	(69)	$	103	$	76
Income taxes on non-GAAP adjustments	(29)		18		(29)		(18)
Non-controlling interest on non-GAAP adjustments	(7)		(6)		—		(1)


Total non-GAAP adjustments	$	74	$	(57)	$	74	$	57

Adjusted net earnings (loss) from continuing operations attributable to common shareholders	$	1,526	$	1,378	$	235	$	(87)

Adjusted EPS from continuing operations attributable to common shareholders - diluted	$	5.34

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)



Twelve Months Ended	Consolidated		Title		Corporate and Other
December 31, 2019
Direct title premiums	$	2,381	$	2,381		$	—
Agency title premiums	2,961		2,961			—
Escrow, title related and other fees	2,584		2,389			195
Total title and escrow	7,926		7,731			195

Interest and investment income	225		202			23
Recognized gains and losses, net	318		326			(8)
Total revenue	8,469		8,259			210

Personnel costs	2,696		2,562			134
Agent commissions	2,258		2,258			—
Other operating expenses	1,681		1,509			172
Depreciation and amortization	178		154			24
Claim loss expense	240		240			—
Interest expense	47		—			47
Total expenses	7,100		6,723			377














Pre-tax earnings (loss)	$	1,369	$	1,536		$	(167)

Income tax expense (benefit)	308		363			(55)
Earnings from equity investments	15		13			2

Non-controlling interests	14		15			(1)

Net earnings (loss) attributable to common shareholders	$	1,062	$	1,171		$	(109)

EPS attributable to common shareholders - basic	$	3.89
EPS attributable to common shareholders - diluted	$	3.83

Weighted average shares - basic	273
Weighted average shares - diluted	277

FIDELITY NATIONAL FINANCIAL, INC.

YTD SEGMENT INFORMATION

(In millions, except order information in thousands)

(Unaudited)


	Consolidated		Title		Corporate and Other
Twelve Months Ended
December 31, 2019
Net earnings (loss) attributable to common shareholders	$	1,062	$	1,171	$	(109)


Pre-tax earnings (loss)	$	1,369	$	1,536	$	(167)

Non-GAAP Adjustments
Recognized (gains) and losses, net	(318)		(326)		8
FIA related derivative
Reinsurance related derivative
Purchase price amortization	105		86		19
Transaction costs	58		—		58
Severance costs	$	6	$	—	$	6
Other adjustments	1		1		—

Adjusted pre-tax earnings (loss)	$	1,221	$	1,297	$	(76)

Total non-GAAP, pre-tax adjustments	$	(148)	$	(239)	$	91
Income taxes on non-GAAP adjustments	38		60		(22)
Non-controlling interest on non-GAAP adjustments	(12)		(11)		(1)


Total non-GAAP adjustments	$	(122)	$	(190)	$	68

Adjusted net earnings (loss) attributable to common shareholders	$	940	$	981	$	(41)

Adjusted EPS attributable to common shareholders - diluted	$	3.39

FIDELITY NATIONAL FINANCIAL, INC.

SUMMARY BALANCE SHEET INFORMATION

(In millions)


	December 31, 2020			December 31, 2019
	(Unaudited)			(Unaudited)
Cash and investment portfolio		$	37,766		$	5,760
Goodwill		4,495			2,727
Title plant		404			404
Total assets		50,455			10,677
Notes payable		2,662			838
Reserve for title claim losses		1,623			1,509
Secured trust deposits		711			791
Redeemable non-controlling interests		—			344
Non-redeemable non-controlling interests		41			(17)
Total equity and non-controlling interests		8,392			5,709
Total equity attributable to common shareholders		8,351			5,382

Non-GAAP Measures and Other Information

Title

The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings.


	Three Months Ended						Year Ended
(Dollars in millions)	December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Pre-tax earnings	$	896		$	468		$	1,878		$	1,536
Non-GAAP adjustments before taxes
Recognized (gains) and losses, net	(290)			(135)			(143)			(326)
Purchase price amortization	18			22			73			86
Other adjustments	—			—			1			1
Total non-GAAP adjustments	(272)			(113)			(69)			(239)
Adjusted pre-tax earnings	$	624		$	355		$	1,809		$	1,297
Adjusted pre-tax margin	22.7		%	16.3		%	19.6		%	16.3		%

FIDELITY NATIONAL FINANCIAL, INC.

QUARTERLY OPERATING STATISTICS

(Unaudited)


	Q4 2020			Q3 2020			Q2 2020			Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019
Quarterly Opened Orders ('000's except % data)
Total opened orders*	728			847			693			682			492			592			544			438
Total opened orders per day*	11.6			13.2			10.8			11.0			7.8			9.3			8.5			7.2
Purchase % of opened orders	38		%	40		%	37		%	41		%	50		%	52		%	61		%	65		%
Refinance % of opened orders	62		%	60		%	63		%	59		%	50		%	48		%	39		%	35		%
Total closed orders*	617			571			487			377			417			409			359			263
Total closed orders per day*	9.8			8.9			7.6			6.1			6.6			6.4			5.6			4.3
Purchase % of closed orders	38		%	42		%	35		%	46		%	49		%	55		%	65		%	66		%
Refinance % of closed orders	62		%	58		%	65		%	54		%	51		%	45		%	35		%	34		%

Commercial (millions, except orders in '000's)
Total commercial revenue	$	322		$	216		$	184		$	245		$	321		$	301		$	286		$	231
Total commercial opened orders	57.0			58.1			43.9			56.3			55.1			56.0			58.6			49.8
Total commercial closed orders	39.5			30.6			25.7			31.0			39.1			36.4			34.0			30.0

National commercial revenue	$	177		$	113		$	96		$	132		$	186		$	172		$	163		$	122
National commercial opened orders	21.4			21.7			15.2			21.5			22.6			23.8			25.3			20.6
National commercial closed orders	13.4			9.8			8.8			10.7			16.2			14.1			12.7			10.5

Total Fee Per File
Fee per file	$	2,116		$	2,063		$	1,889		$	2,224		$	2,384		$	2,459		$	2,677		$	2,567

Residential fee per file	$	1,661		$	1,803		$	1,614		$	1,744		$	1,792		$	1,928		$	2,075		$	1,964
Total commercial fee per file	$	8,200		$	7,100		$	7,200		$	7,900		$	8,200		$	8,300		$	8,400		$	7,700
National commercial fee per file	$	13,200		$	11,500		$	10,900		$	12,300		$	11,500		$	12,200		$	12,900		$	11,600

Total Staffing
Total field operations employees	12,800			12,300			10,900			12,500			12,300			12,200			12,000			11,700

Actual title claims paid ($ millions)	$	54		$	50		$	51		$	48		$	53		$	52		$	66		$	49

* Includes an immaterial number of non-purchase and non-refinance orders

F&G

The table below reconciles the reported after-tax net loss from continuing operations to adjusted earnings from continuing operations attributable to common shareholders.


	Three months ended		Seven months ended
	December 31, 2020		December 31, 2020
(Dollars in millions)
Net earnings (loss) attributable to common shareholders	$	137	$	136
Less: Earnings (loss) from discontinued operations, net of tax	(2)		(25)
Net earnings (loss) from continuing operations attributable to common shareholders	$	139	$	161
Non-GAAP adjustments (1,2):
Recognized (gains) and losses, net	(76)		(45)
Indexed product related derivatives	54		111
Purchase price amortization	7		16
Transaction costs	4		21
Income taxes on non-GAAP adjustments	—		(29)
Adjusted earnings (loss) from continuing operations attributable to common shareholders	$	128	$	235

Adjusted earnings from continuing operations include $68 million of favorable items in the current quarter and $86 million in the year-to-date period.

The table below provides summary financial highlights.


	Three Months Ended			Seven months ended
(Dollars in millions)	December 31, 2020			December 31, 2020
Average assets under management (AAUM)(1)	$	27,864		$	27,322
Net investment spread - FIA(1)	3.02		%	3.21		%
Net investment spread - All products(1)	2.55		%	2.74		%
Net earnings (loss) from continuing operations attributable to common shareholders	$	139		$	161
Adjusted earnings from continuing operations attributable to common shareholders(1)	$	128		$	235

The table below provides a summary of sales, which are not affected by PGAAP and are comparable to prior period data.


	Three Months Ended				Twelve Months Ended
(In millions)	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Fixed indexed annuity (FIA) sales(1)	$	947	$	795	$	3,459	$	2,820
Total retail annuity sales(1)	$	1,309	$	921	$	4,235	$	3,596

Footnotes:

1.Non-GAAP financial measure. See the Non-GAAP Measures section below for additional information.

2.Amounts are net of offsets related to value of business acquired (VOBA), deferred acquisition cost (DAC), deferred sale inducement (DSI) amortization, and unearned revenue (UREV) amortization, as applicable.

DEFINITIONS

The following represents the definitions of non-GAAP measures used by F&G.

Adjusted Earnings

Adjusted Earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted earnings is calculated by adjusting net earnings (loss) from continuing operations 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; 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, and the fair value accounting impact of assumed reinsurance,

(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, and

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

Adjustments to Adjusted 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 Earnings Attributable to Common Shareholders

Adjusted Earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted Earnings attributable to common shareholders is calculated by adjusting net earnings (loss) available to common shareholders to eliminate the same items as described in the Adjusted Earnings paragraph above. While these adjustments are an integral part of the overall performance of the Company, 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.

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.

Average Assets Under Management (AAUM)

AAUM is calculated as the sum of:

(i) total invested assets at amortized cost, excluding derivatives;

(ii) related party loans and investments;

(iii) accrued investment income;

(iv) funds withheld at fair value;

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

(iv) 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.

Sales (FIA Sales and Total Retail Annuity Sales)

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. Annuity and IUL sales are recorded as deposit liabilities (i.e. contractholder funds) within the Company's unaudited condensed consolidated financial statements in accordance with GAAP. 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.

###

Document

Exhibit 99.2

https://cdn.kscope.io/7ceb1c156015b6ed6ac7817e3a333318-logo1a.jpg

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

Financial Supplement

December 31, 2020

(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF 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 (formerly NYSE:FG) was acquired by FNF (the "Business Combination") on June 1, 2020 ("Closing Date"). As a result of the Business Combination, F&G delisted from the NYSE and became a subsidiary of FNF. Our financial statement presentation includes the financial statements of F&G and its subsidiaries as a standalone entity ("Pre-Merger") for the periods prior to the completion of the Business Combination, and F&G and its subsidiaries as an operating segment of FNF ("Post-Merger") for periods from and after the Closing Date. The current period year-to-date information presented within represents the 7-month period from the close of the acquisition on June 1, 2020, to the end of the year on December 31, 2020. As no comparable prior period exists, we have not included prior period year-to-date information.

All dollar amounts are presented in millions.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures commonly used in our industry that, together with the relevant GAAP measures, may enhance a user’s ability to analyze the Company's operating performance and capital position for the periods presented. These measures should be considered supplementary to our results in accordance with GAAP and should not be viewed as a substitute for the GAAP measures and are not intended to replace GAAP financial results. 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. Refer to the non-GAAP measures reconciliations and definitions within for further information.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)


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

Top 5 Reinsurers			17
E. Non-GAAP Financial Measures Definitions			18

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Consolidated Financial Highlights



	Three months ended				One month ended		Two months ended		Three months ended				Seven months ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		December 31, 2020
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Post-Merger


Select Income Statement Data:



Net earnings (loss) attributable to common shareholders	137		38		(39)		19		(346)		217		136

Adjusted net earnings (loss) attributable to common shareholders (1)	128		74		33		40		33		94		235



Select Metrics:






Average Assets Under Management ("AAUM") (1)	27,864		26,990		26,582		29,285		28,924		28,332		27,322



Net investment spread (1)	2.55	%	2.62	%	3.50	%	1.92	%	2.24	%	2.41	%	2.74	%

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

Sales Results by Product

The table below provides a summary of sales, which are not affected by the June 1, 2020, Business Combination and are comparable to prior period data.



	Three months ended										Twelve months ended
	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019

Sales
FIA	947		815		866		831		795		3,459		2,820
Fixed rate annuities (MYGA)	362		253		47		114		126		776		776
Institutional spread based	100		—		—		100		—		200		297
Total annuity	1,409		1,068		913		1,045		921		4,435		3,893
Index universal life	13		14		12		11		11		50		38
Flow reinsurance	37		51		142		122		122		352		394
Total Sales	$	1,459	$	1,133	$	1,067	$	1,178	$	1,054	$	4,837	4,325

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Appendix to Consolidated Financial Highlights

Effective June 1, 2020, certain blocks of business were designated as discontinued operations by FNF. Amounts related to these blocks of business are presented herein as adjustments to key financial metrics, solely for comparison between Pre-Merger and Post-Merger periods. See FNF 10-K/ 10-Q for further discussion on discontinued operations.


	Three months ended						One month ended			Two months ended			Three months ended						Seven months ended
	December 31, 2020			September 30, 2020			June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			December 31, 2020
	Post-Merger			Post-Merger			Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Post-Merger


Select Income Statement Data:
Net earnings (loss) attributable to common shareholders	137			38			(39)			19			(346)			$	217		$	136
Less: discontinued operations [(earnings)/loss]	2			28			(5)			(22)			155			(46)			25
As adjusted for discontinued operations	139			66			(44)			(3)			(191)			171			161

Adjusted net earnings (loss) attributable to common shareholders (1)	128			74			33			40			33			94			235
Less: discontinued operations [(earnings)/loss]	—			—			—			8			26			(4)			—
As adjusted for discontinued operations	128			74			33			48			59			90			235
Less: Notable items [(unfavorable)/favorable] (2)	68			10			8			5			(6)			15			86
As adjusted for discontinued operations and notable items	$	60		$	64		$	25		$	43		$	65		$	75		$	149

Select Metrics:





AAUM (1)	27,864			26,990			26,582			29,285			28,924			28,332			27,322
Less: discontinued operations	—			—			—			(2,236)			(2,266)			(2,183)			—
As adjusted for discontinued operations	27,864			26,990			26,582			27,049			26,658			26,149			27,322

Net investment spread (1)	2.55		%	2.62		%	3.50		%	1.92		%	2.24		%	2.41		%	2.74		%
Less: discontinued operations [(earnings)/loss] (3)	—		%	—		%	—		%	0.13		%	0.09		%	0.03		%	—		%
As adjusted for discontinued operations	2.55		%	2.62		%	3.50		%	2.05		%	2.33		%	2.44		%	2.74		%
(1) Refer to "Non-GAAP Financial Measures Definitions"
(2) Notable items from continuing operations. For full list of notable items, refer to page 8 "Notable Items"
(3) Subsequent to the release of the Quarterly Financial Supplement dated August 4, 2020, management identified an immaterial adjustment that was needed to reflect the correct amount in the prior period. Periods affected were the two months ended May 31, 2020 and the three months ended March 31, 2020

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Condensed Consolidated Balance Sheets


	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger

Assets
Investments:
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $9 at December 31, 2020	$	25,499	$	24,218	$	23,014	$	21,140	$	23,726
Preferred securities, at fair value	965		917		875		873		1,001
Equity securities, at fair value	82		54		54		42		70
Derivative investments	548		381		333		188		587
Mortgage loans, net of allowance for credit losses of $39 at December 31, 2020	2,031		1,614		1,749		1,769		1,267
Investments in unconsolidated affiliates (a)	1,156		1,125		1,045		1,071		1,013
Other long-term investments	449		438		432		421		289
Short-term investments	456		34		38		36		38
Total investments	$	31,186	28,781		27,540		25,540		27,991
Cash and cash equivalents	889		1,014		909		740		931
Trade and notes receivables	10		2		2		1		1
Funds withheld for reinsurance receivable, at fair value	—		—		—		2,050		2,172
Reinsurance recoverable, net of allowance for credit losses of $21 at December 31, 2020 (a)	3,174		3,152		3,182		3,186		3,213
Goodwill (a)	1,751		1,731		1,725		467		467
Prepaid expenses and other assets	413		448		381		384		355
Lease assets	8		7		8		9		9
Other intangible assets, net (a)	1,918		1,956		2,060		2,070		1,495
Property and equipment, net	11		7		2		2		2
Income taxes receivable	15		19		24		23		15
Deferred tax asset (a)	44		107		180		264		61
Assets of discontinued operations	327		2,618		2,502		—		—
Total assets	$	39,746	$	39,842	$	38,515	$	34,736	$	36,712
(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 September 30, 2020: Investment in unconsolidated affiliates, $31, Goodwill, $6, Other intangible assets, net, ($37), and Deferred tax asset, $3. The following adjustments were recorded as of the opening balance sheet at June 1, 2020 during the quarter ending December 31, 2020: Goodwill, $20, Other intangible assets, net, ($56), Reinsurance recoverable, $47, and Deferred tax asset, $10.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)


Condensed Consolidated Balance Sheets (continued)
	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger

Liabilities and Shareholders' Equity
Contractholder funds (a)	28,718		27,488		26,628		26,226		25,684
Future policy benefits (a)	4,010		4,048		4,092		5,658		5,735
Accounts payable and accrued liabilities (a)	1,174		1,056		983		1,007		1,167
Notes payable	589		589		589		543		542
Funds withheld for reinsurance liabilities	806		814		817		821		831
Lease liabilities	14		12		13		9		9
Liabilities of discontinued operations	361		2,462		2,347		—		—
Total liabilities	35,672		36,469		35,469		34,264		33,968

Shareholders' equity:


Additional paid-in-capital	2,741		2,739		2,737		2,041		2,032
Retained earnings (accumulated deficit)	136		(1)		(39)		(72)		300
Accumulated other comprehensive income (loss)	1,197		635		348		(1,428)		481
Treasury stock	—		—		—		(69)		(69)
Total shareholders' equity	4,074		3,373		3,046		472		2,744
Total liabilities and shareholders' equity	$	39,746	$	39,842	$	38,515	$	34,736	$	36,712

(a) Contractholder funds included a $3 adjustment that was recorded as of the opening balance sheet at June 1, 2020 during the quarter ending September 30, 2020. Additionally, Contractholder funds, Future policy benefits, and Accounts payable and accrued liabilities included ($5), ($7), and $33 adjustments as of the opening balance sheet at June 1, 2020, respectively, during the quarter ending December 31, 2020

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


	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger

Total shareholders' equity	4,074		3,373		3,046		472		2,744
Equity attributable to preferred shareholders (1)	—		—		—		446		438
Common shareholders' equity (1)	4,074		3,373		3,046		26		2,306
AOCI	1,197		635		348		(1,428)		481
Total common shareholders' equity excluding AOCI (1)	$	2,877	$	2,738	$	2,698	$	1,454	$	1,825
(1) Refer to "Non-GAAP Financial Measures Definitions"

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Condensed Consolidated Statements of Operations


	Three months ended				One month ended		Two months ended		Three months ended				Seven months ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		December 31, 2020
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Post-Merger

Revenues:
Life insurance premiums and other fees (a)	$	58	$	60	$	20	$	52	$	41	$	43	$	138

Interest and investment income	327		305		111		111		316		324		743
Recognized gains and losses, net	282		77		(7)		257		(692)		196		352

Total revenues	667		442		124		420		(335)		563		1,233
Benefits and expenses:
Benefits and other changes in policy reserves	460		251		155		356		(41)		119		866
Personnel costs	33		23		9		15		21		21		65
Other operating expenses	30		33		12		40		74		64		75
Depreciation and amortization	64		56		3		1		(60)		78		123
Interest expense	8		7		3		5		8		8		18
Total benefits and expenses	595		370		182		417		2		290		1,147

Pre-tax earnings (loss) from continuing operations	72		72		(58)		3		(337)		273		86
Federal income tax expense	68		(5)		14		17		(1)		(48)		77
State income tax expense	(1)		(1)		—		(1)		—		—		(2)

Net earnings (loss) from continuing operations	139		66		(44)		19		(338)		225		161
Earnings from discontinued operations, net of tax	(2)		(28)		5		—		—		—		(25)
Less Preferred stock dividend	—		—		—		—		(8)		(8)		—
Net earnings (loss) attributable to common shareholders	$	137	$	38	$	(39)	$	19	$	(346)	$	217	$	136

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

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Reconciliation from Net Earnings (Loss) to Adjusted Net Earnings (1)


	Three Months Ended				One Months Ended		Two Months Ended		Three Months Ended				Seven months ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		December 31, 2020
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Post-Merger

Net earnings (loss) from continuing operations	$	139	$	66	$	(44)	$	19	$	(338)	$	225	$	161
Less Preferred stock dividend	—		—		—		—		(8)		(8)		$	—
Net earnings (loss) from continuing operations attributable to common shareholders	$	139	$	66	$	(44)	$	19	$	(346)	$	217	$	161
Non-GAAP adjustments (1):
Recognized (gains) and losses, net	(76)		(15)		46		68		94		(34)		(45)
Indexed product related derivatives	54		14		43		(28)		287		(134)		111

Purchase price amortization	7		7		2		—		—		—		16
Transaction costs and other non-recurring items	4		10		7		4		34		11		21

Income taxes on non-GAAP adjustments	—		(8)		(21)		(23)		(36)		34		(29)
Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	128	$	74	$	33	$	40	$	33	$	94	$	235

Notable Items

Each quarterly reporting period, we identify notable items that help explain the trends in our Net earnings (loss) from continuing operations attributable to common shareholders and Adjusted net earnings (loss) from continuing operations attributable to common shareholders as we believe these items provide further clarity to the financial performance of the business.


	Three Months Ended				One Months Ended		Two Months Ended		Three Months Ended				Seven months ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		December 31, 2020
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Post-Merger

Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	128	$	74	$	33	$	40	$	33	$	94	$	235
Notable items [(unfavorable)/favorable]


Single premium immediate annuities ("SPIA") mortality & other reserve adjustments (a)	—		10		4		6		(5)		15		14
Assumption review and unlocking (b)	—		—		—		(4)		—		4		—
Other notable items (c)	68		—		4		3		(27)		5		72

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

(a) The release of annuity reserves associated with mortality of annuitants, which varies due to timing, volume and severity of experience, and other reserve adjustments.

(b) Reflects unlocking from updating our DAC, VOBA, DSI and cost of reinsurance amortization models for actual experience and equity market fluctuations.

(c) 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, bond prepayment income, changes in tax valuation, and other net activity.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Adjusted Net Earnings Statement (1)


	Three Months Ended				One Months Ended		Two Months Ended		Three Months Ended				Seven months ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019		December 31, 2020
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger		Post-Merger

Revenues:
Life insurance premiums and other fees (a)	$	61	$	60	$	20	$	42	$	53	$	44	$	141
Interest and investment income (b)	315		314		120		200		317		$	324	$	749
Recognized gains and losses, net (c)	—		(1)		1		22		(34)		$	23	$	—
Total revenues	376		373		141		264		336		$	391	$	890
Benefits and expenses:
Benefits and other changes in policy reserves (d)	202		177		62		131		161		$	151	$	441
Personnel costs	33		23		9		15		21		$	21	$	65
Other operating expenses (e)	25		23		6		37		41		$	53	$	54
Depreciation and amortization (f)	46		56		21		32		27		$	42	$	123
Interest expense	8		7		3		5		8		$	8	$	18
Total benefits and expenses	314		286		101		220		258		$	275	$	701

Pre-tax earnings (loss) from continuing operations	62		87		40		44		78		$	116	$	189
Federal income tax expense	67		(12)		(7)		(5)		(37)		$	(14)	$	48
State income tax expense	(1)		(1)		—		1		—		$	—	$	(2)

Adjusted net earnings (1)	128		74		33		40		41		$	102	$	235


Less: Preferred stock dividend	—		—		—		—		(8)		$	(8)	$	—
Adjusted net earnings from continuing operations attributable to common shareholders (1)	$	128	$	74	$	33	$	40	$	33	$	94	$	235
Notable items included in adjusted net earnings attibutable to common shareholders (2)	$	68	$	10	$	8	$	5	$	(32)	$	24	$	86

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

(2) Refer to page 8 "Notable Items" for further detail of notable items.

(a) 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 here to remove the effect of cost of reinsurance.

(b) Interest and investment income has been adjusted to remove the market volatility on the alternative investment portfolio for periods after March 31, 2020.

(c) 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.

(d) 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, and changes in the SOP 03-1 reserve resulting from the adjustments above, as applicable.

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

(f) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, and DSI of the adjustments above, as applicable, and purchase price amortization.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Financial Strength Ratings

A.M. Best

S&P

Fitch

Moody's

Holding Company Ratings

F&G Annuities & Life, Inc. (formerly known as FGL Holdings)

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba2

Outlook

Stable

CF Bermuda Holdings Limited

Issuer Credit / Default Rating

Not Rated

BBB-

BBB

Ba1

Outlook

Stable

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

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

F&G Cayman Re Ltd

Financial Strength Rating

Not Rated

A-

Not Rated

Outlook

Stable

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)


Total Product Net Investment Spread
	Three Months Ended						One Months Ended			Two Months Ended			Three Months Ended						Seven months ended
	December 31, 2020			September 30, 2020			June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			December 31, 2020
	Post-Merger			Post-Merger			Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Post-Merger

Net investment income	$	327		$	305		$	111		$	111		$	316		$	324		$	743
AAUM (1)	27,864			26,990			26,582			29,285			28,924			28,332			27,322
Yield on AAUM (1)	4.69		%	4.52		%	5.01		%	2.27		%	4.38		%	4.57		%	4.66		%
Alternative investment yield adjustment (1)	(0.17)		%	0.13		%	0.41		%	1.83		%							0.07		%
Adjusted Yield on AAUM (1)	4.52		%	4.65		%	5.42		%	4.10		%							4.73		%

Interest credits	$	67		$	67		$	21		$	53		$	76		$	76		$	155
Option & futures costs	$	63		$	64		19			43			60			63			146
Total interest credited and option costs	$	130		$	131		$	40		$	96		$	136		$	139		$	301
Average account value	26,450			25,688			25,330			26,463			25,453			25,476			25,977
Interest credited & option cost	1.97		%	2.03		%	1.92		%	2.18		%	2.14		%	2.16		%	1.99		%
Net investment spread (1)	2.55		%	2.62		%	3.50		%	1.92		%	2.24		%	2.41		%	2.74		%

(1) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)


FIA Net Investment Spread
	Three Months Ended						One Months Ended			Two Months Ended			Three Months Ended						Seven months ended
	December 31, 2020			September 30, 2020			June 30, 2020			May 31, 2020			March 31, 2020			December 31, 2019			December 31, 2020
	Post-Merger			Post-Merger			Post-Merger			Pre-Merger			Pre-Merger			Pre-Merger			Post-Merger

Net investment income (1)	$	235		$	215		$	69		$	51		$	209		$	220		$	519
AAUM (2)	19,097			18,312			18,267			18,623			18,111			17,628			18,585
Yield on AAUM (1) (2)	4.92		%	4.70		%	4.53		%	1.64		%	4.62		%	4.99		%	4.79		%
Alternative investment yield adjustment (2)	(0.25)		%	0.20		%	0.59		%	2.67		%							0.10		%
Adjusted Yield on AAUM (1) (2)	4.67		%	4.90		%	5.12		%	4.31		%							4.89		%

Interest credits	$	13		$	14		$	4		$	8		$	13		$	14		$	31
Option & futures costs	$	63		$	64		$	19		$	43		$	60		$	63		$	146
Total interest credited and option costs	76			78			23			51			73			77			177
Average account value	18,442			17,948			17,688			17,501			17,065			16,565			18,130
Interest credited & option cost	1.65		%	1.73		%	1.59		%	1.76		%	1.72		%	1.85		%	1.68		%
Net investment spread (1) (2)	3.02		%	3.17		%	3.53		%	2.55		%	2.90		%	3.14		%	3.21		%

(1) We have restated prior period FIA net investment spread to reflect immaterial updates to FIA net investment income amounts. There was no impact to total product net investment spread amounts.

(2) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Average Assets Under Management Rollforward



	Three Months Ended				One Months Ended		Two Months Ended		Three Months Ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger

AAUM at beginning of period (1)	$	26,990	$	26,582	$	26,529	$	28,924	$	28,332	$	27,871
Net new business sales	874		408		53		361		592		461
AAUM at end of period	$	27,864	$	26,990	$	26,582	$	29,285	$	28,924	$	28,332
(1) Beginning balance for June 30, 2020 represents assets under management at June 1, 2020 and reflects $2.3 billion decrease from the exclusion of discontinued operations and $0.5 billion decrease from purchase accounting mark-to-market effect as compared to the May 31, 2020 ending balance.

Annuity Account Balance Rollforward (a)


	Three Months Ended				One Months Ended		Two Months Ended		Three Months Ended
	December 31, 2020		September 30, 2020		June 30, 2020		May 31, 2020		March 31, 2020		December 31, 2019
	Post-Merger		Post-Merger		Post-Merger		Pre-Merger		Pre-Merger		Pre-Merger

Account balances at beginning of period:	$	22,106	$	21,442	$	21,332	$	20,999	$	20,402	$	20,052
Net deposits	1,305		1,046		245		675		940		920
Surrenders, withdrawals, deaths, etc.	(533)		(482)		(161)		(381)		(452)		(675)
Net flows	772		564		84		294		488		245

Premium and interest bonuses	20		17		4		12		17		19
Fixed interest credited and index credits	131		114		29		50		123		118
Guaranteed product rider fees	(37)		(31)		(7)		(23)		(31)		(32)
Account balance at end of period	$	22,992	$	22,106	$	21,442	$	21,332	$	20,999	$	20,402

(a) 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 - December 31, 2020

(All periods are unaudited)

Annuity Liability Characteristics


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	December 31, 2020

SURRENDER CHARGE PERCENTAGES:
No surrender charge	$	414	$	2,346
0.0% < 2.0%	5		62
2.0% < 4.0%	26		488
4.0% < 6.0%	646		1,630
6.0% < 8.0%	1,499		2,288
8.0% < 10.0%	1,699		4,733
10.0% or greater	2		7,155
	$	4,291	$	18,702


	Fixed Annuities Account Value		Fixed Index Annuities Account Value
	December 31, 2020

CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential	$	494	$	1,297
0.0% - 1.0%	343		1,404
1.0% - 2.0%	1,155		24
2.0% - 3.0%	2,299		2


Allocated to index strategies	—		15,975
	$	4,291	$	18,702

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Summary of Invested Assets by Asset Class


	December 31, 2020						December 31, 2019
	Post-Merger						Pre-Merger

	Amortized Cost		Fair Value		Percent		Amortized Cost		Fair Value		Percent
Fixed maturity securities, available for sale:
United States Government full faith and credit	$	45	$	45	—	%	$	33	$	34	—	%
United States Government sponsored entities	105		106		—	%	133		134		—	%
United States municipalities, states and territories	1,243		1,309		4	%	1,284		1,343		5	%
Foreign Governments	128		140		—	%	138		155		1	%
Corporate securities:
Finance, insurance and real estate	4,267		4,572		15	%	4,038		4,234		15	%
Manufacturing, construction and mining	839		936		3	%	739		771		3	%
Utilities, energy and related sectors	2,532		2,762		9	%	2,345		2,452		9	%
Wholesale/retail trade	1,900		2,106		7	%	1,576		1,617		6	%
Services, media and other	2,568		2,793		9	%	2,353		2,523		9	%
Hybrid securities	888		963		3	%	983		1,027		4	%
Non-agency residential mortgage-backed securities	677		694		2	%	784		820		3	%
Commercial mortgage-backed securities	2,468		2,806		9	%	2,788		2,922		10	%
Asset-backed securities	1,920		1,999		6	%	1,774		1,813		6	%
CLO securities	4,021		4,268		14	%	3,946		3,881		14	%
Alternative investments	1,148		1,156		4	%	1,084		1,077		4	%
Equity securities	959		1,047		3	%	999		1,002		4	%
Commercial mortgage loans	903		926		3	%	422		435		1	%
Residential mortgage loans	1,128		1,123		4	%	845		848		3	%
Other (primarily derivatives and policy loans)	815		997		4	%	628		867		3	%
Short term investments	456		456		1	%	38		38		—	%
Total (a)	$	29,010	$	31,204	100	%	$	26,930	$	27,993	100	%
(a) Asset duration of 6.84 years and 6.63 years vs. liability duration of 6.65 years and 6.80 years for the periods ending December 31, 2020 and December 31, 2019, respectively.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Credit Quality of Fixed Maturity Securities


	December 31, 2020

NAIC Designation	Fair Value		Percent
1	$	12,370	49	%
2	10,659		42	%
3	1,595		6	%
4	700		3	%
5	174		—	%
6	1		—	%
	$	25,499	100	%


	December 31, 2020

Rating Agency Rating	Fair Value		Percent
AAA	$	488	2	%
AA	1,590		6	%
A	7,040		28	%
BBB	9,669		38	%
Not rated	4,336		17	%
Total investment grade	23,123		91	%
BB	1,493		6	%
B and below	612		2	%
Not rated	271		1	%
Total below investment grade	2,376		9	%
	$	25,499	100	%

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

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


	December 31, 2020

Total by collateral type	Amortized Cost		Fair Value













Government agency	$	105	$	106
Prime	512		527
Subprime	73		73
Alt-A	92		94
	$	782	$	800

	December 31, 2020

Total by NAIC designation	Amortized Cost		Fair Value
1	$	752	$	768
2	16		17
3	8		8
4	3		3
5	3		4
	$	782	$	800

Top 5 Reinsurers

December 31, 2020

Financial Strength Rating

Parent Company/Principal Reinsurers

Reinsurance Recoverable (a)

AM Best

S&P

Fitch

Moody's

Wilton Re

1,481

A+

Not Rated

A+

Not Rated

Kubera Insurance (SAC) Ltd

810

Not Rated

Security Life of Denver

165

Not Rated

A+

Hannover Re

134

A+

AA-

Not Rated

London Life

108

A+

Not Rated

(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 - December 31, 2020

(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

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 to eliminate:

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

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.

Effective April 1, 2020, F&G changed their definition of Adjusted Earnings to exclude the impact of market volatility on the alternative asset portfolio. Alternative investment valuations and GAAP net income can reflect significant non-cash impacts of market and economic conditions that are not indicative of expected returns over the life of the investments. Management invests in alternative investments to back future policyholder obligations consistent with its asset liability management strategy. Management evaluates the performance of the alternative investments and calculates Adjusted Earnings using a rate of return that is consistent with its investment strategy and indicative of expected returns. Management believes this change provides users of the financial statements and other financial communications a more representative view of the results of the core business of F&G for the periods after April 1, 2020. Previous periods have not been adjusted.

Adjusted Net Earnings from Continuing Operations Attributable to Common Shareholders

Adjusted Net Earnings from continuing operations attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted net earnings from continuing operations attributable to common shareholders is calculated by adjusting net earnings (loss) available to common shareholders to eliminate the same items as described in the Adjusted Net Earnings paragraph above. While these adjustments are an integral part of the overall performance of the Company, 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.

Common Shareholders’ Equity

Common Shareholders’ Equity is based on Total Shareholders’ Equity excluding Equity Available to Preferred Shareholders. Management considers this to be a useful measure internally and to investors to assess the level of equity that is attributable common stock holders.

Common Shareholders’ Equity Excluding AOCI

Common Shareholders’ Equity Excluding AOCI is based on Common 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 common equity.

F&G - An Operating Segment of FNF

Financial Supplement - December 31, 2020

(All periods are unaudited)

Equity Attributable to Preferred Shareholders

Equity attributable to preferred shareholders is equal to the product of (a) the number of preferred shares outstanding plus share dividends declared but not yet issued and (b) the original liquidation preference amount per share. Management considers this non-GAAP measure to provide useful information internally and to investors and analysts to assess the level of equity that is attributable to preferred stock holders. (Note: F&G no longer has any preferred shareholders following the Business Combination)

Average Assets Under Management (AAUM)

AAUM is calculated as the sum of:

(i) total invested assets at amortized cost, excluding derivatives;

(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.

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. 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