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    FNF
    Earnings call· Jun 2026(Q2 FY26)

    Fidelity National Financial Q2 FY26 earnings call FNF

    Aug 6, 2026 Source

    Executive summary

    Fidelity National Financial Q2 FY26 — Strong Title Performance and F&G Growth

    Fidelity National Financial reported a strong second quarter, driven by robust performance in its Title segment, which achieved industry-leading margins and significant commercial revenue growth. The F&G segment continued its strategic expansion, nearing $75 billion in AUM and growing book value per share. While strategic investments are expected to cause near-term margin compression in Title, the company remains focused on long-term growth through technology and operational leverage, with an eye on eventual residential market recovery.

    Highlights

    5

    • Title segment delivered adjusted pretax earnings of $448 million, up 33% YoY.

    • Achieved an industry-leading adjusted pretax title margin of 17.8%, an increase of 230 basis points YoY.

    • Commercial direct revenue reached $778 million in H1 2026, up 24% over H1 2025, with 29 transactions over $1 million in premiums in Q2.

    • F&G's gross AUM grew 8% YoY to $74.7 billion, and book value per share (ex-AOCI) increased 68% since 2020 acquisition to $45.93.

    • Daily purchase orders opened were up 3% YoY and refinance orders opened were up 16% YoY in Q2.

    Concerns

    4

    • Adjusted net earnings for the F&G segment decreased to $65 million in Q2 2026 from $89 million in Q2 2025, partly due to a reduced ownership stake.

    • Expects modest compression to adjusted pretax title margin in the second half of the year due to front-loaded expenses from strategic investments and recruiting.

    • Remains cautious on residential purchase and refinance activity for the remainder of the year due to elevated mortgage rates and housing market dynamics.

    • Cash and short-term liquid investments at the holding company decreased to $457 million at Q2 end, from $659 million at year-end 2025.

    Guidance & targets

    5
    CategoryTargetConfidence
    Interest and investment income (Title and Corporate segments)
    $95 million to $100 million per quarter
    medium materiality
    High
    Dividend income from F&G to Corporate segment
    Approximately $28 million per quarter
    medium materiality
    High
    Adjusted pretax title margin
    Modest compression
    high materiality
    Medium
    Commercial momentum
    Continue
    medium materiality
    High
    Residential purchase and refinance activity
    Remain cautious
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Title
    Delivered strong Q2 results with industry-leading adjusted pretax title margin. Performance driven by strength across commercial, residential, and agency businesses. Direct premiums increased 21% YoY, agency premiums 15% YoY, and escrow/title-related fees 13% YoY. Adjusted pretax earnings were up 33% YoY.
    Adjusted pretax title margin: 17.8%Adjusted pretax title margin (Q2 2025): 15.5%Adjusted pretax title margin increase: 230 bpsDirect ops margin: >26%Agency business margin: 8%NCS units margin: <30%Loan subservicing margin: ~21%Home warranty margin: 18%ServiceLink margin: ~24%
    		$2.5 billion21% (direct premiums), 15% (agency premiums), 13% (escrow/title-related fees)—$448 million adjusted pretax earnings
    F&G
    Gross AUM before reinsurance reached $74.7 billion, up 8% YoY. Book value per share (ex-AOCI) grew 68% since 2020 acquisition. Reported strong gross sales of $2.7 billion, with core retail sales at a record $1.8 billion. Adjusted net earnings were $65 million, reflecting a 72% ownership stake.
    Gross AUM before reinsurance: $74.7 billionGAAP equity (excluding AOCI): $6 billionBook value per share (excluding AOCI): $45.93Gross sales: $2.7 billionCore sales: $2 billionOpportunistic sales: $700 millionCore retail sales (indexed annuities and indexed life): $1.8 billionCore institutional sales (pension risk transfer): $200 millionNet sales: $1.5 billionOwnership stake: 72%
    		—8% (Gross AUM)—$65 million adjusted net earnings

    Operational metrics

    51
    Adjusted net earnings
    $370 millionvs $318 million in Q2 FY25
    Q2 FY26

    Consolidated adjusted net earnings.

    Adjusted diluted EPS
    $1.39vs $1.16 in Q2 FY25
    Q2 FY26

    Consolidated adjusted diluted earnings per share.

    Title segment contribution to adjusted net earnings
    $339 million
    Q2 FY26

    Contribution to consolidated adjusted net earnings.

    F&G segment contribution to adjusted net earnings
    $65 million
    Q2 FY26

    Contribution to consolidated adjusted net earnings.

    Corporate segment adjusted net loss
    $6 million
    Q2 FY26

    Before eliminating $28 million of dividend income from F&G.

    Personnel costs (Title segment)
    9%YoY increase
    Q2 FY26

    Increase in personnel costs.

    Other operating expenses (Title segment)
    15%YoY increase
    Q2 FY26

    Increase in other operating expenses.

    Title and corporate investment portfolio
    $5.1 billion
    June 30

    Total value of the investment portfolio.

    Title claims paid
    $67 million
    Q2 FY26

    Amount of title claims paid.

    Title claims provision
    $78 million
    Q2 FY26

    Provision for title claims.

    Carried reserve for title claim losses
    $15 million1% above actuary central estimate
    Q2 FY26

    Carried reserve for title claim losses.

    Provision rate for title claims
    4.5%
    Q2 FY26

    Rate at which title claims are provided for, as a percentage of total title premiums.

    F&G investment portfolio quality
    97%
    Q2 FY26

    Percentage of fixed maturities in F&G's investment portfolio that are investment-grade.

    F&G credit-related impairments
    6 bps
    Past 5 years

    Average credit-related impairments over the past 5 years.

    F&G credit-related impairments
    2 bps
    H1 FY26

    Credit-related impairments in the first half of the year.

    F&G segment contribution to FNF's adjusted net earnings
    23%down from 32% for H1 FY25
    H1 FY26

    Percentage of FNF's adjusted net earnings contributed by the F&G segment.

    Capital returned to shareholders (Q2)
    $195 million
    Q2 FY26

    Total capital returned to shareholders through common dividends and share repurchases.

    Capital returned to shareholders (H1)
    $417 million
    H1 FY26

    Total capital returned to shareholders through common dividends and share repurchases.

    Cash and short-term liquid investments
    $457 million70% of year-end 2025 amount
    Q2 FY26

    Cash position at the holding company.

    Cash and short-term liquid investments
    $659 million
    FY25

    Cash position at the holding company at year-end 2025.

    Holding company interest expense
    $36 million
    H1 FY26

    Interest expense funded by cash generation.

    Regulatory dividend capacity
    Around $200 million
    H2 FY26

    Estimated remaining regulatory dividend capacity for the second half of the year.

    Total dividend capacity (regulatory and unregulated)
    Around $600 million
    H2 FY26

    Estimated total dividend capacity for the second half of the year, including regulatory and unregulated subsidiaries.

    Daily purchase orders opened
    3%YoY increase
    Q2 FY26

    Increase in daily purchase orders opened.

    Daily purchase orders opened
    7%QoQ increase
    Q2 FY26

    Increase in daily purchase orders opened over Q1 FY26.

    Daily purchase orders opened
    4%YoY increase
    July

    Increase in daily purchase orders opened for the month of July.

    Refinance orders opened (daily average)
    1,600vs 1,300 in Q2 FY25
    Q2 FY26

    Daily average refinance orders opened.

    Refinance orders opened (daily average)
    2,000
    Q1 FY26

    Daily average refinance orders opened in Q1 FY26.

    Refinance orders opened (daily average)
    1,500
    July

    Daily average refinance orders opened in July.

    Refinance orders opened growth
    16%YoY increase
    Q2 FY26

    YoY increase in refinance orders opened.

    Refinance orders opened growth
    -22%QoQ decrease
    Q2 FY26

    QoQ decrease in refinance orders opened from Q1 FY26.

    Refinance orders opened growth
    15%YoY increase
    July

    YoY increase in refinance orders opened for July.

    Direct commercial revenue
    $778 millionup 24% over H1 FY25
    H1 FY26

    Direct commercial revenue for the first six months.

    Direct commercial revenue
    $626 million
    H1 FY25

    Direct commercial revenue for the first six months of 2025.

    Daily commercial orders opened (national)
    3%YoY increase
    Q2 FY26

    Increase in national commercial daily orders opened.

    Daily commercial orders opened (local)
    10%YoY increase
    Q2 FY26

    Increase in local commercial daily orders opened.

    Total commercial orders opened (daily average)
    919up 7% over Q2 FY25
    Q2 FY26

    Daily average total commercial orders opened.

    Total commercial orders opened (daily average)
    1%QoQ increase
    Q2 FY26

    QoQ increase in total commercial orders opened over Q1 FY26.

    Total commercial orders opened (daily average)
    2%YoY increase
    July

    YoY increase in total commercial orders opened for July.

    Total orders opened (daily average)
    6,200
    Q2 FY26

    Daily average total orders opened.

    Total orders opened (daily average)
    5,900up 7% over prior year
    July

    Daily average total orders opened for July.

    Refinance revenue as % of direct revenue
    7%
    Q2 FY26

    Refinance accounting for a small portion of direct revenue.

    Commercial transactions over $1 million in premiums
    29
    Q2 FY26

    Number of large commercial transactions closed, including agency transactions.

    inHere digital platform engagement
    80%
    H1 FY26

    Percentage of residential sales transactions engaged by the inHere platform.

    F&G distribution investments
    $700 million
    Cumulative

    Investment in owned distribution, generating significant EBITDA.

    F&G AUM growth since 2019
    Nearly tripled
    Since 2019

    Growth in assets under management under previous leadership.

    F&G opportunistic sales (funding agreements)
    $600 million
    Q2 FY26

    Primarily comprised of funding agreements.

    F&G opportunistic sales (multiyear guaranteed annuities)
    $100 million
    Q2 FY26

    Deemphasized due to returns currently below threshold.

    Tuck-in acquisition valuation
    4x to 6x
    Current

    Valuation multiples for recent tuck-in acquisitions.

    Texas agency split
    85%
    Current

    Promulgated split of premiums in Texas agency business.

    Texas pricing
    Higherthan average across the country
    Current

    Average pricing in Texas is on the higher end compared to the national average.

    Industry KPIs

    5
    MetricValueDetails
    Capital returns$195 millionUSD
    Book value per share$45.93USD/share
    Net investment income$93 millionUSD
    Life specific when present$74.7 billionUSD
    Net premiums written earned—

    Product announcements

    1
    ProductTypeDetails
    inHere Property Monitoringlaunch

    Deals & partnerships

    2
    Peak AltitudeExploration of strategic alternatives for F&G's owned distribution investment.

    Chris Blunt, CEO of Peak Altitude, has launched a formal process to explore strategic alternatives for Peak Altitude, which includes 4 owned distribution investments that generated $80 million of EBITDA for FY25.

    Multiple unnamed companiesTuck-in acquisitions to expand personnel and market presence.4x to 6x pretax profit

    A handful of attractive tuck-in acquisitions, including a couple closed in July, primarily on the residential side but with some commercial mix, across multiple geographies including the West, Texas, and East markets.

    Risks & headwinds

    3
    Modest compression to adjusted pretax title marginSecond half of the year

    Modest compression

    Mitigation: Strategic investments in recruiting and acquisitions are front-loading expenses, but are expected to build the business for the long term. Management will look at staffing in relation to orders and manage expenses accordingly.

    Cautious outlook on residential purchase and refinance activityRemainder of the year

    Not quantified, but described as 'cautious'

    Mitigation: The company is focused on operational leverage and technology/AI investments to drive efficiency, anticipating a recovery in residential activity once mortgage rates improve.

    Potential regulatory pressure on pricing due to improved margins from technologyLonger term

    Not quantified, but acknowledged as a 'possibility'

    Mitigation: Acknowledged that if industry margins rise significantly, regulatory pressure could emerge. However, the business is regulated at the state level, and market participants perform at different levels, making it complex to target one participant.

    What to watch in Q3 FY26

    5

    Adjusted pretax title margin

    H2 FY26
    Current17.8%
    TargetMonitor for 'modest compression'

    Why it matters

    Management guided for modest compression due to front-loaded expenses from strategic investments and recruiting, which could impact profitability.

    We expect to see this near-term effect on our results, including some modest compression to adjusted pretax title margin in the second half of the year.

    Q&A highlights

    6

    Clarification on whether the expected modest margin compression in H2 '26 is relative to H1 or YoY, and the drivers behind it.

    The compression is primarily relative to Q2, driven by the mix of direct/agency business, commercial performance, non-title businesses, and front-loaded expenses from strong recruiting and tuck-in acquisitions. Management will adjust staffing in relation to orders.

    “I would say it's probably in relation to the second quarter primarily. And as you know, there's always puts and takes around the margins, including the mix of direct and agency, commercial performance, the non-title businesses in the Title segment. And then the -- as I talked about in the beginning, we've had some really strong recruiting this year. I think we're having our best recruiting performance these last 2 quarters as we've ever had. And then a handful of acquisitions, including a couple that we closed in July that will add a little over 200 people to the organization.”

    asked by Bose George · answered by Mike Nolan

    2 min read5 chapters

    Detailed Narrative

    01

    Title Segment Outperformance and Strategic Investments

    The Title segment delivered strong Q2 FY26 results with adjusted pretax earnings of $448 million, up 33% YoY, and an industry-leading adjusted pretax title margin of 17.8%. This performance was driven by strength across commercial, residential, and agency businesses, supported by disciplined expense management. The company is experiencing its best recruiting performance in recent quarters and has completed several tuck-in acquisitions, adding over 200 people. These strategic investments are expected to front-load expenses, leading to modest margin compression in the second half of the year, but are aimed at long-term business growth.

    02

    Commercial Business Strength and Outlook

    Commercial direct revenue reached $778 million in the first six months of 2026, a 24% increase over the same period in 2025. Daily commercial orders opened were up 7% YoY in Q2, averaging 919 per day. The company remains bullish on commercial activity, citing a strong pipeline across diverse asset classes like industrial, data centers, multifamily, and energy. Management noted 29 transactions generating over $1 million each in premiums during Q2, reflecting their scale in large transactions. An eventual rebound in the U.S. office real estate market is seen as a potential future tailwind.

    03

    Residential Market Dynamics and Technology Integration

    U.S. existing home sales remain historically low, but FNF saw increases in daily purchase orders opened, up 3% YoY in Q2 and 4% in July. Refinance orders opened were up 16% YoY in Q2, though they account for only 7% of direct revenue. The inHere digital transaction platform continues to scale, engaging 80% of residential sale transactions in H1 2026, driving efficiency and fraud prevention. A new property monitoring component was launched in 35 states, offered as a complementary post-closing service to enhance customer value and market differentiation.

    04

    F&G Segment Growth and Leadership Transition

    F&G's gross AUM before reinsurance reached $74.7 billion, up 8% YoY. The segment reported GAAP equity (ex-AOCI) of $6 billion and book value per share (ex-AOCI) of $45.93, up 68% since the 2020 acquisition. Gross sales for Q2 were $2.7 billion, comprising $2 billion in core sales and $700 million in opportunistic sales, with core retail sales of indexed annuities and indexed life at $1.8 billion. Conor Murphy was promoted to CEO and President of F&G, with Mike Bailey joining as CFO, aiming to continue the strategic shift towards a more fee-based, higher-margin, and less capital-intensive model. Chris Blunt will explore strategic alternatives for Peak Altitude, F&G's distribution investment.

    05

    Capital Allocation and Financial Position

    FNF maintains a strong balance sheet and balanced capital allocation strategy. During Q2, the company returned $195 million to shareholders through $138 million in common dividends and $57 million in share repurchases. For the first six months, total capital returned was $417 million. The holding company ended Q2 with $457 million in cash and short-term liquid investments, down from $659 million at year-end 2025, after funding dividends, interest expense, share repurchases, and increased risk and technology spending.

    AI-generated summary of the company’s earnings call. Not investment advice.