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Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11 a.m. ET Senior Vice President, Investor and External Relations - Lisa Foxworthy-Parker Chief Executive Officer - Mike Nolan Executive Vice President and Chief Financial Officer - Anthony Park F&G Annuities & Life Chief Executive Officer and President - Conor Murphy F&G Annuities & Life Interim Chief Financial Officer - Mark Wiltse F&G Annuities & Life Incoming Chief Financial Officer - Mike Bailey Operator: Good morning, and welcome to FNF's Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the call over to Lisa Foxworthy-Parker, Senior Vice President, Investor and External Relations. Please go ahead. Lisa Foxworthy-Parker: Thanks, operator, and welcome, everyone. I'm joined today by Mike Nolan, CEO; and Tony Park, CFO. We look forward to addressing your questions following our prepared remarks. F&G's management team, including Conor Murphy, CEO and President; and Mark Wiltse, Interim CFO, will also be available for Q&A. We're also glad to welcome F&G's incoming CFO, Mike Bailey, who joined the company earlier this week and will listen in on today's call. Today's earnings call may include forward-looking statements and projections under the Private Securities Litigation Reform Act which do not guarantee future events or performance. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events or changes in strategy. Please refer to our most recent quarterly and annual reports and other SEC filings for details on important factors that could cause actual results to differ materially from those expressed or implied. This morning's discussion also includes non-GAAP measures, which management believes are relevant in assessing the financial performance of the business. Non-GAAP measures have been reconciled to GAAP where required and in accordance with SEC rules within our earnings materials available on the company's investor website. Please note that today's call is being recorded and will be available for webcast replay. And with that, I'll hand the call over to Mike Nolan. Mike Nolan: Thank you, Lisa, and good morning. We are very pleased with our second quarter results, which reflect sustained momentum across our company. Both of our businesses are well positioned for the current market and for longer-term growth. I'd also like to thank our employees for achieving another quarter of industry-leading performance. We are generating greater momentum in sequential daily opened orders in purchase and refinance relative to our peers while also delivering strength in commercial revenue trending towards historic highs. All of this is a direct result of their exceptional contributions to stay ahead of our competition. Starting with Title, we delivered adjusted pretax Title earnings of $448 million for the second quarter, up 33% over the second quarter of 2025. This generated an industry-leading adjusted pretax title margin of 17.8% for the second quarter, an increase of 230 basis points over the second quarter of 2025. Our second quarter results reflect continued strong performance across the business, highlighted by strength in our commercial, residential and agency businesses. Additionally, our disciplined expense management drove strong incremental margins. Looking at our title results more closely, starting with purchase, U.S. existing home sales remain at historically low levels at around the 4 million annual pace due to elevated mortgage rates and housing market dynamics. We were encouraged to see increases in daily purchase orders opened over the prior year and sequential quarters steadily outperforming relative to peers. Our daily purchase orders opened were up 3% over the second quarter of 2025, up 7% over the first quarter of 2026 and up 4% for the month of July versus the prior year. Our refinance volumes continue to be responsive to 30-year mortgage rates, although accounting for only 7% of our direct revenue in the second quarter. Refinance orders opened were 1,600 per day in the second quarter as compared to 1,300 in the second quarter of 2025 and 2,000 in the first quarter of 2026. Volumes remained resilient at 1,500 per day in the month of July as mortgage rates moved higher. Our refinance orders opened per day were up 16% over the second quarter of 2025, down 22% from the first quarter of 2026 and up 15% for the month of July versus the prior year. For commercial, we are on track for a very strong and potentially record year with direct commercial revenue of $778 million in the first 6 months, up 24% over $626 million in the first half of 2025. We continue to see growth in both national and local markets daily orders opened, up 3% and 10%, respectively, in the second quarter over the second quarter of 2025. Total commercial orders opened were 919 per day, up 7% over the second quarter of 2025, up 1% over the first quarter of 2026 and up 2% for the month of July versus the prior year. We remain bullish on commercial due to several factors. First, we have a strong pipeline of commercial deals slated to close, with broad strength across geographies and asset classes, including industrial, data centers, multifamily, affordable housing, retail and energy. Next, our scale and expertise position us to participate in the largest transactions in the market. We closed 29 transactions generating over $1 million each in premiums in the second quarter across multiple asset classes in both our direct and agency businesses. This is reflected in our higher trending commercial fee per file. Third, our current performance reflects the U.S. office real estate market in the early stage of a fragmented recovery. We believe this sector's eventual rebound will provide a potential tailwind as we look ahead. Finally, commercial real estate activity is sustained by ongoing property sale and refinance activity that contribute to overall order volumes as well. To bring it all together, total orders opened were steady and averaged 6,200 per day in the second quarter. For the month of July, total orders opened were 5,900 per day, up 7% over the prior year. Looking ahead, we expect commercial momentum to continue, but remain cautious on residential purchase and refinance activity for the remainder of the year. We have also recently had higher strategic investment in active recruiting and a handful of attractive tuck-in acquisitions. While these strategic investments build the business for the long term, they do typically front-load expenses while revenues take a few months to ramp up and reach full productivity. 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. Over time, once mortgage rates improve, we believe residential purchase and refinance activity will accelerate and trend toward historical levels. This recovery represents additional earnings power given the operational leverage that we have built into our model. This operational leverage also comes through our technology and AI investments. As a reminder, FNF and the title industry hold a unique position in real estate transactions. FNF provides the rails upon which real estate transactions run by orchestrating complex multiparty settlements, safeguarding the movement of funds and mitigating fraud in every transaction. Through our continuing technology innovations and embedding AI tools into these workflows, we believe that we can drive significant value over time by enhancing efficiency in our customers' experience, reducing risk and strengthening fraud prevention across real estate transactions. Momentum also continues with our inHere digital transaction platform that is scaled to a fully deployed enterprise solution. During 2025, inHere reached nearly 2.8 million unique users and engaged 80% of our residential sale transactions. For the first 6 months of 2026, we have maintained engagement at 80% of our residential sales transactions, demonstrating deep integration into daily workflows. This foundational technology drives efficiency, transparency and a superior customer experience in the escrow closing process with built-in compliance and enhanced fraud protection. We are in our seventh year of inHere and recently launched the property monitoring component in the second quarter in 35 states. This service provides visibility and alerts for a property that is provided to customers as a complementary post-closing service from FNF title companies. We have received positive feedback from our customers. And once property monitoring is fully deployed, our footprint is expected to far exceed others in the industry. These successful and pioneering investments in technology have and continue to play a critical role in our ability to maintain our industry-leading position for adjusted pretax title margin. Turning now to our F&G segment. I'd like to take a brief moment to congratulate Conor on his promotion to CEO and President of F&G, officially welcome Mike Bailey as CFO of F&G and thank Mark Wiltse, who has recently served as Interim CFO. Following F&G's recent executive leadership transition, we expect Conor and Mike to continue the strategic momentum toward a more fee-based, higher-margin and less capital-intensive business model. As previously announced, Chris Blunt will continue as a Director of F&G and as Peak Altitude's CEO, a business that Chris has been building. F&G has invested nearly $700 million in 4 owned distribution investments that generated $80 million of EBITDA for the full year 2025. Chris has launched a formal process to explore strategic alternatives for Peak Altitude to capture its significant growth opportunities and unlock the intrinsic value for both F&G's and FNF's shareholders. We believe that both F&G and subsidiary Peak Altitude have plenty of runway ahead to continue growing AUM, growing earnings and growing shareholder value. I would also like to take a moment to personally thank Chris for all of his work and effort over the past few years leading F&G. Under Chris' leadership, F&G has significantly expanded its products and distribution and nearly tripled assets under management since joining the company in 2019. Turning to F&G's results. Assets under management before reinsurance have nearly reached the $75 billion threshold at June 30. Gross AUM of $74.7 billion was up 8% over the prior year. On a stand-alone basis, F&G reported GAAP equity, excluding AOCI, of $6 billion at quarter end and has grown its book value per share, excluding AOCI, to $45.93, up 68% since the 2020 acquisition. With that, let me now turn the call over to Tony to review FNF's second quarter financial performance and provide additional insights. Anthony Park: Thank you, Mike. Starting with our consolidated results, we generated $4.1 billion in total revenue in the second quarter. Excluding net recognized gains and losses, our total revenue was $3.7 billion as compared with $3.5 billion in the second quarter of 2025. We reported second quarter net earnings of $288 million, including net recognized gains of $333 million, versus net earnings of $278 million, including $98 million of net recognized gains in the second quarter of 2025. Adjusted net earnings were $370 million or $1.39 per diluted share compared with $318 million or $1.16 per share in the second quarter of 2025. The Title segment contributed $339 million, the F&G segment contributed $65 million and the Corporate segment had an adjusted net loss of $6 million before eliminating $28 million of dividend income from F&G in the consolidated financial statements. Turning to second quarter financial highlights specific to the Title segment. Our Title segment generated $2.5 billion in total revenue in the second quarter, excluding net recognized gains of $14 million, compared with $2.2 billion in the second quarter of 2025. Direct premiums increased 21% over the prior year, agency premiums increased 15% and escrow title-related and other fees increased 13%. Personnel costs increased 9%, and other operating expenses increased 15%. All in, the Title business generated adjusted pretax title earnings of $448 million, up 33% over $337 million in the second quarter of 2025, and a 17.8% adjusted pretax title margin in the quarter versus 15.5% in the prior year quarter. Our title and corporate investment portfolio totaled $5.1 billion at June 30. Interest and investment income in the Title and Corporate segments was $93 million, excluding income from F&G dividends to the holding company. For the next 12 months, we expect a range of $95 million to $100 million in interest and investment income per quarter, assuming no Fed rate actions, with increasing 1031 Exchange and fixed income balances, partially offset by lower cash balances. In addition, we expect approximately $28 million per quarter of common and preferred dividend income from F&G to the Corporate segment. Our title claims paid of $67 million were $11 million lower than our provision of $78 million for the second quarter. The carried reserve for title claim losses is approximately $15 million or 1% above the actuary central estimate. We continue to provide for title claims at 4.5% of total title premiums. Next, turning to financial highlights specific to the F&G segment. Since F&G hosted its earnings call earlier this morning and provided a thorough update, I will provide a few key highlights. F&G's AUM before reinsurance increased to $74.7 billion at June 30, up 8% over the prior year. This includes retained assets under management of $55.9 billion. F&G's retained investment portfolio performed very well once again this quarter. The portfolio is high quality, with 97% of fixed maturities being investment-grade. It is well matched to the liability profile and diversified across asset types. Credit-related impairments have remained low and stable, averaging 6 basis points over the past 5 years and a modest 2 basis points in the first half of this year. F&G reported gross sales of $2.7 billion for the second quarter, comprised of $2 billion of core sales and $700 million of opportunistic sales. This mix reflects pricing discipline and capital allocation to highest-return opportunities. Core retail sales of indexed annuities and indexed life were $1.8 billion for the second quarter. This is one of our strongest quarters on record for core retail sales and reflects continued momentum for F&G despite another quarter of contraction in industry FIA sales as compared with the prior year quarter. Core institutional sales of pension risk transfer were $200 million for the second quarter as expected, ahead of the seasonal increase in PRT sales typically seen in the second half of the year. Opportunistic sales were primarily comprised of $600 million of funding agreements as well as $100 million of multiyear guaranteed annuities, which we have deemphasized due to returns currently below threshold. F&G's net sales were $1.5 billion in the second quarter. This reflects flow reinsurance in line with capital targets for multiyear guaranteed annuities and fixed indexed annuities. Adjusted net earnings for the F&G segment were $65 million for the second quarter, reflecting our approximate 72% ownership stake, compared with $89 million in the second quarter of 2025, which reflected our approximate 82% ownership stake. F&G's core spread remains consistent as the business maintained disciplined pricing. F&G continues to provide an important complement to our Title business. In the first 6 months, the F&G segment contributed 23% of FNF's adjusted net earnings, down from 32% for the first half of 2025. Turning to capital and liquidity. FNF continues to maintain a strong balance sheet and balanced capital allocation strategy. Our track record has generated a steady level of free cash flow, allowing us to continue to invest in our business and build for the long term. We also continue to return excess cash to shareholders. During the second quarter, FNF returned approximately $195 million of capital to shareholders through $138 million of common dividends and $57 million of share repurchases. This brought capital returned to shareholders during the first 6 months of the year to approximately $417 million through $278 million of dividends and $139 million of share repurchases. From a capital allocation perspective, we ended 2025 with $659 million in cash and short-term liquid investments at the holding company. During the first 6 months, our cash position and cash generation funded $278 million of common dividends paid, $36 million of holding company interest expense and $139 million in opportunistic share repurchases, all while keeping pace with wage inflation and funding the continued higher spend in risk and technology required in today's landscape. We ended the second quarter with $457 million in cash and short-term liquid investments at the holding company, which is about 70% of the amount held at year-end 2025. This concludes our prepared remarks, and let me now turn the call back to our operator for questions. Operator: [Operator Instructions] Our first question is from Bose George with KBW. Bose George: Actually, first, just on the margin. Mike, I think you talked about a modest compression in the title pretax margin in the second half of '26. Is that relative to the first half or a year-over-year comparison? And then can you just -- I think you touched on it, but just go over the drivers again. Mike Nolan: Yes, 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. So -- and then kind of the revenue doesn't come in at the same level in the beginning, but all the expense does. And then we will definitely be looking at staffing as we go through the back half of the year as we always do in relation to our orders, and we'll manage those staffing expenses accordingly. Bose George: Okay. Great. And then actually, Tony, can we get the margin by the different segments, if you have that? Anthony Park: Sure, Bose. Thanks. Yes, 17.8% pretax margin for the quarter, up against 15.5% in the second quarter of last year. Our direct ops were up maybe 80 basis points to a little over 26% for those -- that distributed network. Our agency business was up about 110 basis points to 8% on gross agency dollars. Our NCS units, those are our National Commercial units, just shy of 30% margin on those stand-alone, a little up from the prior year second quarter. Our loan subservicing business was down some. We had some kind of almost onetime or nonrecurring benefits in the prior year second quarter which really bolstered our margins in that business in 2025. Having said that, we're still almost at a 21% margin in loan subservicing. Home warranty had another strong quarter with an 18% margin, up almost 200 basis points. And ServiceLink also, with its centralized platform of refi and default services, was at about 24%, up a couple of hundred basis points there as well. Operator: And next, we'll move to Mark Hughes with Truist Securities. Mark Hughes: Yes. The purchase order outperformance you touched on, I think it sounds like some of those personnel additions and tuck-ins have been contributing to that. Anything else you would highlight? Mike Nolan: Well, I think, Mark, it's certainly recruiting influence because we've had pretty consistent outperformance now for a number of months relative to the top peers. But I think it's also just our people, our multi-brand strategy and the support we provide to people in the field through our tech stack, our inHere digital transaction platform, our marketing spend. I mean, you put it all together, and I think it's creating a differentiation in the marketplace. Mark Hughes: Very good. The Peak, the strategic process. I think on the earlier call, there was a reference to maybe getting a partner to take ownership of half or a bit more than half. What would be done? Would the goal be to set a valuation mark? Would it be to take those proceeds and step up capital management? What's the kind of the thinking there? Conor Murphy: Yes. Mark, it's Conor. Yes, that's fair. The strategic option that we probably favor at this early stage would be a 51% partner so we can continue to grow the underlying business. We have great faith in the expansion opportunity there. But I think to the second part of your question, in terms of proceeds, yes, I think we would anticipate bringing those in. And just thinking through the most logical mix of how we would deploy those, but certainly a noteworthy element in terms of continuing to grow the value of the business. Mark Hughes: Okay. So would that be used for future M&A? Or would capital management be one of the alternatives, [ given ] it's not an especially capital-intensive business? Conor Murphy: I would imagine -- I would say that it's more likely growing core business opportunities than M&A for us. I think that the Peak entity with a partner will focus on M&A on their part, but I think they'll do that with their own funding. Mark Hughes: Very good. And then, Mike, you talked about the property monitoring. Could you talk a little bit more about that? Does that move the dial in terms of margins or business volumes? What is the thinking there? Mike Nolan: Yes. I think it's just -- we want to provide more value to our buyers and sellers and really, our buyers, and by extension, to the real estate community. It's not something for margins. We're offering it as a complementary monitoring for people who close with us. And we're doing it at a scale really nobody else can do it at. So we think it's a value-add. We think it will be recognized well by market participants, and we're excited to be expanding it. Mark Hughes: So that helps maintain relationships, grow relationships and take [ market share ]? Mike Nolan: Certainly, I think it's just another value-add from the FNF family to be on top of all the other things that we do to bring value to our customers. Operator: [Operator Instructions] And next, we'll move to Oscar Nieves with Stephens Inc. Oscar Nieves Santana: The first one is on -- the tech and AI comments you made earlier, you mentioned that inHere is now engaging around 80% of your present transactions. Can you translate that into a cost per file or cycle time number yet? Or is it still too early to isolate that impact from everything else that's moving through the P&L? Mike Nolan: We don't have a number on it. We know it brings efficiencies and that we get information directly from participants into the system. It's connected to our SoftPro system, so there's a plus there. It does allow the customers to track and get information on their orders without having to call or e-mail. And really, what we see, though, is that people want to use it. And that's where the 80% comes in, that it's being received well by our customers and our real estate agents. And I think over time, with the different things we do in tech, ultimately, it just shows up in how our margins improve and how our overall productivity improves. We're not doing time and motion studies, Oscar, to determine how many minutes we're saving on a file. Oscar Nieves Santana: Right. That's helpful. On the tuck-ins that you mentioned earlier, you said you have some closing in July, and you've seen record recruiting. Can you give us a sense of what you're paying for those acquisitions, whether they're concentrated in specific markets or geographies? And what's the capacity that you're building, whether that's primarily commercial? Or is it a mix of residential and commercial? Mike Nolan: Yes. Great questions. I would say the recruiting and the acquisitions are over multiple geographies. Certainly in the West, we've had some really strong recruiting success in Texas, for example, which is a really important state for us. And also markets in the East. So really both. And in terms of mix, probably more on the residential side than commercial side. But certainly, commercial comes with it, particularly in local markets where people might -- or companies that you're acquiring might have a mix of business like that. And then in terms of what we're paying, we're still in the 4x to 6x pretax profit valuations. Oscar Nieves Santana: One more question for now. I think you said you closed 29 transactions over $1 million in premium this quarter in commercial. Is that pace of large deal flow something you see as durable and growing? Or was this quarter unusually concentrated? Because that seems like the key swing factor for whether commercial fee per file holds near the current levels. Mike Nolan: Yes. I would say that this certainly seemed to be one of our biggest quarters. We haven't tracked this for terribly long, but we know it's of interest, so we're doing that. Whether it continues, it's tough to say. I think we do have a strong pipeline of commercial orders, some of which are large and could be in that category. But the other thing I would say about the commercial environment is just the strength across so many segments. I know data centers gets a lot of publicity. But as I look at our last quarter and the surveys we do with our management team, the top categories were industrial, multifamily, energy, retail, affordable housing, really all coming in strong. And then mentions of things like hospitality, health and medical. And even it's getting a little bit lower, but even people talking about office, particularly suburban office. So -- and then the data centers as well. So it's just really broad-based. And our orders are still holding around that 900 level, a little over 900 for the first half of the year, which is a nice step-up from the -- just around 850 we averaged last year. So still very optimistic and excited about what the rest of the year brings in commercial. Anthony Park: And Oscar, this is Tony. I will just add that the 29 $1 million-plus transactions that we referenced does include some agency transactions as well, mostly on the direct side, but some of those are agencies. So when you talk about fee per file, for example, we are talking specifically about direct because we're not capturing the fee per file on the agency side. Oscar Nieves Santana: Great. And I said last one before, just to squeeze a short one on the topic that you just mentioned. You talked about the office recovery being so early and fragmented that it could be a tailwind ahead. What would you actually need to see in office to call that a real inflection? And how big could that swing commercial volumes if it does turn? And with that, I'll go back in the queue. Mike Nolan: Oscar, it's Mike. I think seeing transactions returning to more normalcy in central business district in particular, so think New York, for example, and some of the other big cities, it seems like the suburban office might be recovering a little bit quicker. How big it could be, it's hard to say. But I do remember 2015, when we had our first year, I think, when we had $1 billion in commercial revenue and office was at the top of the list as a driver and in particular, New York. So I think it can be meaningful. I can't put a number to it. Operator: And next, we'll hear from Geoffrey Dunn with Dowling & Partners. Geoffrey Dunn: Tony, can you tell us what the remaining regulatory dividend capacity is in the back half of the year? And do you have an estimate for unregulated dividends in the back half? Anthony Park: Yes. My best guess would be on the regulatory side, somewhere around $200 million. And if I extended that to all of our unregulated or less regulated subsidiaries, the total would probably be somewhere in the $600 million range for the back half of the year. Geoffrey Dunn: And that $600 million includes the $200 million? Or... Anthony Park: It does. It does. Geoffrey Dunn: Okay. Got it. And then just a bigger high-level question, Mike, for you. All the big title companies are investing in tech, and you're seeing some of the smaller companies doing it as well, with the expectation ultimately that you'll get a benefit through margin. When you think about longer term, do you think that improved margins will be sustainable? Or do you think that pressure, most likely political, could come to bear and you have to pass on some of that gain to reduce the cost to borrowers? Mike Nolan: Yes, it's an interesting question, Geoff, and there's probably a range of outcomes. I think margins should improve as we get better productivity out of technology, including AI. How much, it's hard to say. There's obviously a lot of inputs into that. But if -- I think for the industry, if margins were all rising in a significant way, you could see some regulatory pressure on pricing and maybe a part of that being given back in pricing. But it is a 50-state regulated business. There's not one regulator. And you also have many market participants who -- some are performing at different levels. And I don't know that you could select one participant if they had better margins than the others, and so there's an issue. So certainly a possibility, but really hard to call at this point. Geoffrey Dunn: Okay. And then just lastly, with respect to Texas pricing, is that above average, average or below average relative to your overall book of business? Anthony Park: I would say the pricing in Texas is generally higher than the average over the -- across the country. Now keep in mind, we do a lot of agency business in Texas where the promulgated split is 15% to the insurance company, 85% to the agent. So clearly, there, the agent's keeping most of that. But yes, average pricing, I think if you looked at it per $1,000 liability, for example, Texas would be on the higher end. Operator: There are no further questions at this time. I would like to turn the floor back to Mike Nolan for closing remarks. Mike Nolan: Thanks for joining our call this morning. We delivered strong second quarter results, with our complementary businesses executing well in a dynamic environment. Title business continues to outperform, delivering industry-leading margins in what remains a low residential transaction environment while capitalizing on very strong commercial activity. We remain well positioned to benefit from continued strength in commercial and an eventual recovery in residential transaction volumes, as well as benefits from our investments in technology, automation and artificial intelligence. Likewise, F&G continues to execute on its strategy that is focused on balancing continued growth in its spread-based business alongside the fee-based flow reinsurance, middle market life insurance and owned distribution strategies as they focus on delivering long-term shareholder value. Thanks for your time this morning. We appreciate your interest in FNF and look forward to updating you on our third quarter earnings call. Operator: Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time. 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Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. F&G Annuities & Life stock has fallen 15.8% over the past year, yet the latest valuation work suggests the market price may still sit below a reasonable estimate of intrinsic value. With both the Excess Returns model and market multiples pointing in the same direction, the current share price invites a closer look at whether that discount is justified. The share price decline of 15.8% over the past year means investors are looking at a stock that has lagged, even as valuation checks indicate potential upside. Record assets under management and a focus on credit quality can support expectations for future cash generation. At the same time, ongoing capital returns to shareholders may limit flexibility if operating conditions become more challenging. The company scores 4 out of 6 on the broader valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation. You can see the breakdown at 4 out of 6. The issue now is whether the recent share price weakness in F&G Annuities & Life is giving you a genuine discount to intrinsic value or simply reflecting the right amount of caution. Find out why F&G Annuities & Life's -15.8% return over the last year is lagging behind its peers. The Excess Returns model evaluates how efficiently F&G Annuities & Life can earn profits on its equity base above the required return. For F&G Annuities & Life, the inputs point to modest value creation rather than an aggressive growth story. The model assumes a Book Value of $35.20 per share and a Stable EPS of $2.37 per share, based on the median return on equity from the past 5 years. Against a Cost of Equity of $2.34 per share, that translates into an Excess Return of $0.02 per share on an Average Return on Equity of 7.31%. The Stable Book Value is set at $32.39 per share, again using a 5 year median. On these inputs, the estimated intrinsic value comes out at $33.04 per share, which is about 16.3% above the current share price, so the stock screens as undervalued. Because F&G Annuities & Life reported record assets under management of nearly $75b in the second quarter of 2026, the current discount suggests the market is still cautious about how much excess return those assets can generate over time. Overall, the Excess Returns workup indicates F&G Annuities & Life stock appears undervalued relative to its calculated intrinsic value. Our Excess Returns analysis suggests F&G Annuities & Life is undervalued by 16.3%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for F&G Annuities & Life. The P/E ratio suits F&G Annuities & Life because earnings are a key yardstick for how an insurer is being priced. F&G Annuities & Life currently trades on a P/E of 9.0x, compared with an Insurance industry average of about 11.6x and a peer group average of 11.3x. That places the stock at a discount to both the broader sector and closer peers on headline earnings. The Fair Ratio model, which adjusts for the company’s size, profitability profile and risk, points to a P/E of about 16.2x as a more neutral level. That is a wide gap from the current 9.0x, suggesting the market is assigning a cautious earnings multiple even with record assets under management and ongoing capital returns. If earnings stay around current levels, the present P/E leaves room for the valuation to move closer to that tailored fair range. On the P/E multiple alone, F&G Annuities & Life stock appears undervalued relative to what the fair ratio implies. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the earlier valuation checks for F&G Annuities & Life leave off by spelling out what would need to happen to growth, margins and earnings for the stock to be worth materially more or less than today’s price on the Community page. Each one sets out fair value as a thesis about F&G Annuities & Life's business that you can track over time, rather than a one time snapshot. You can be one of the first voices in the Simply Wall St community to set out a clear, number driven Narrative on F&G Annuities & Life's record nearly US$75b in assets under management and the recent capital returns to shareholders. You can then track how that view holds up as new results arrive. Share a thesis that ties those developments to where you think the stock should trade and see how it stands against future data. Do you think there's more to the story for F&G Annuities & Life? Head over to our Community to see what others are saying! For F&G Annuities & Life, both the Excess Returns intrinsic value estimate and the earnings multiple work suggest the stock screens as undervalued, even if the broader valuation checks are only mixed rather than emphatically positive. That leaves the debate centered on whether the discount reflects opportunity or a reasonable cushion for execution risk, especially around how effectively those large assets under management translate into steady excess returns. The key question from here is whether the market eventually assigns a higher multiple to those earnings, or decides the current caution is warranted and keeps the valuation where it is. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. F&G Annuities & Life (FG) has drawn investor attention after declaring quarterly cash dividends on both its common and Series A mandatory convertible preferred shares, alongside detailed second quarter 2026 earnings results. See our latest analysis for F&G Annuities & Life. The recent dividend declarations and earnings update come after a period of softer momentum for F&G Annuities & Life, with the share price at $27.67 and a 1 year total shareholder return that declined 15.77%, while the 3 year total shareholder return is roughly flat. If the latest F&G Annuities & Life update has you thinking more broadly about opportunities in financials, it can help to widen the lens with a curated set of stocks. One way to do that is by scanning for companies with resilient balance sheets and consistent fundamentals using our solid balance sheet and fundamentals stocks screener (48 results) F&G Annuities & Life trades close to analyst targets, yet sits at a sizeable discount to some fair value estimates after its recent share price slide. Is the market rightly wary of recent earnings volatility, or too cautious? The most followed narrative for F&G Annuities & Life pegs fair value at $27, slightly below the latest close at $27.67. This frames the stock as modestly rich on this view. Read the complete narrative. Want a clearer picture of why this valuation only sits a touch above today’s price? The narrative leans heavily on reshaped revenue mix, higher margins and a recalibrated earnings multiple. The full story joins those moving parts into one detailed path from today’s earnings to that fair value target. Result: Fair Value of $27 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still key watchpoints for F&G Annuities & Life, including pressure on MYGA volumes and margin risk in a highly competitive fixed income portfolio. Find out about the key risks to this F&G Annuities & Life narrative. Analysts see F&G Annuities & Life as slightly overvalued at $27 against a $27.67 share price. Yet the SWS DCF model points in the other direction, with an estimated value of $33.04. That implies the stock trades at roughly a 16% discount. Which lens do you find more convincing? Look into how the SWS DCF model arrives at its fair value. If the mix of fair value signals for F&G Annuities & Life feels finely balanced, now is a good time to review the underlying data and stress test your own assumptions. To see what is currently driving optimism in the story, take a closer look at the 3 key rewards. Do not stop your research with F&G Annuities & Life. The market keeps moving and fresh opportunities can appear faster than most investors react. Identify potential future compounders by reviewing companies that currently look mispriced using the 52 high quality undervalued stocks. Strengthen your income stream by focusing on companies with generous payouts through the 8 dividend fortresses. Prioritise resilience by filtering for businesses that combine lower risk profiles with solid fundamentals via the 83 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in F&G Annuities & Life, Inc.? Here are five stocks we like better. Second-quarter adjusted earnings were $85 million, or $0.65 per share. Results fell from the prior quarter and year-earlier period, primarily because of lower alternative-investment returns and the impact of the F&G Life Re reinsurance transaction. Assets under management before reinsurance increased 8% year over year to $74.7 billion, while core retail sales reached $1.8 billion—one of the company’s strongest quarters—despite weaker industry fixed indexed annuity sales. Management is prioritizing fee-based, higher-margin businesses, disciplined capital allocation and growth in retail, life insurance, pension risk transfer and reinsurance. F&G is also exploring a strategic partner for Peak Altitude while aiming to retain a minority stake. F&G Annuities & Life (NYSE:FG) reported second-quarter adjusted net earnings of $85 million, or $0.65 per share, as lower alternative-investment returns and the impact of a reinsurance transaction weighed on results. Management said the quarter was largely in line with expectations and highlighted growth in assets under management, strong core retail sales and continued efforts to shift toward more fee-based, higher-margin and less capital-intensive businesses. CEO and President Conor Murphy, speaking on his first earnings call in the role, said the company is focused on expanding its retail and institutional franchises while maintaining disciplined capital allocation. Murphy previously served as F&G's chief financial officer and president before becoming CEO. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Assets under management before reinsurance rose 8% from a year earlier to $74.7 billion as of June 30. Retained AUM totaled $55.9 billion, reflecting positive asset flows that were partly offset by the first-quarter cession of a $1.8 billion in-force block associated with the F&G Life Re sale and a $750 million Funding Agreement-Backed Note maturity during the second quarter. Gross sales totaled $2.7 billion, including $2 billion of core sales and $700 million of opportunistic sales. Core retail sales of indexed annuities and indexed life insurance reached $1.8 billion, which Murphy described as one of F&G's strongest quarters on record for core retail sales. He said the result came despite a year-over-year contraction in industry fixed indexed annuity sales. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Core institutional pension risk transfer sales were $200 million, while opportunistic sales included roughly $600 million of funding agreements and $100 million of Multi-Year Guaranteed Annuities, or MYGAs. Management said it has de-emphasized MYGA sales because current returns are below its threshold. Net sales were $1.5 billion, reflecting reinsurance activity consistent with the company's capital targets for fixed indexed annuities and MYGAs. F&G said 97% of fixed maturities in its retained investment portfolio were investment grade. Fixed-income yield increased to 4.91% from 4.77% in the first quarter and 4.83% in the prior-year quarter. Credit-related impairments averaged six basis points over the past five years and were two basis points during the first half of 2026. → No Hangover: Revisiting Microsoft One Week After Earnings The alternative-investment portfolio totaled $4 billion, or about 8% of the retained portfolio, including approximately $3 billion of limited partnerships and $1 billion of other equity interests. Annualized alternative-investment returns were approximately 5.9% in the second quarter, down from 8.3% in the first quarter. Murphy said many of those investments remain in earlier stages of their value-creation cycles. Interim CFO Mark Wiltse said second-quarter alternative-investment income was $49 million, or $0.38 per share, below management's 12% long-term expected return but in line with its previously announced post-tax estimate of $51 million. Adjusted net earnings declined $25 million from the first quarter. Wiltse attributed $21 million of the after-tax reduction to lower alternative-investment returns and $8 million to the incremental effect of the F&G Life Re resale completed March 1. Those factors were partially offset by consistent core spread, higher fees from accretive flow reinsurance, owned-distribution margin and expense discipline. Compared with the second quarter of 2025, adjusted net earnings declined $18 million. The F&G Life Re resale reduced earnings by $12 million from the year-earlier period, while lower surrender-charge fee income and higher other liability costs, including expected increased amortization expense, also affected product margins. Adjusted return on equity excluding accumulated other comprehensive income was 8% in the second quarter. Adjusted return on assets was 68 basis points. Operating expenses as a percentage of AUM before reinsurance declined to 47 basis points from 48 basis points in the first quarter. Management expects the operating expense ratio to improve to approximately 45 basis points by year-end 2027, compared with 60 basis points at the end of 2024. F&G reported GAAP equity excluding AOCI of $6 billion and book value per share excluding AOCI of $45.93. The company targets debt-to-capitalization, excluding AOCI, of approximately 25% and expects to maintain its estimated company action-level risk-based capital ratio above 400%. Wiltse said the estimated effect of newly adopted NAIC capital charges on the company's collateralized loan obligation portfolio would reduce its RBC ratio by about 10 points as of June 30, before management actions. He described the impact as manageable. During the first six months of 2026, F&G funded $75 million of common and preferred dividends, $80 million of holding-company interest expense and $120 million of share repurchases. The company bought back 4.5 million shares at an average price of $26.44. Murphy said the second-quarter repurchases were opportunistic and should not be viewed as a primary use of capital going forward. He said approximately $12 million to $15 million remained under the current authorization, while any expansion would be a decision for the board. Management also discussed Peak Altitude, F&G's owned-distribution business. Peak had approximately $700 million deployed into it and generated about $80 million of annual EBITDA in 2025, according to Murphy. Former CEO Chris Blunt, who remains an F&G director and is CEO of Peak Altitude, has launched a formal process to explore strategic alternatives for the business. Murphy said F&G would ideally retain a minority ownership position in Peak while bringing in a strategic partner that acquires slightly more than half of the business. He said there has been interest but that the process remains in its early stages. Looking ahead, management expects continued emphasis on core retail sales, fee-based businesses, life insurance, pension risk transfer and reinsurance partnerships. Murphy said F&G added another flow reinsurance partner in July. He expects pension risk transfer activity to increase in the second half, although he said the company is targeting annual PRT volume in the range of $1.5 billion to $2 billion rather than seeking year-over-year expansion. F&G also announced that Mike Bailey, most recently retail CFO at Corebridge Financial, joined the company as incoming CFO. Bailey is expected to formally participate in F&G's third-quarter earnings call. F&G Annuities & Life is the principal life insurance and annuity subsidiary of F&G Financial Group, Inc (NYSE: FG), a publicly traded financial services holding company headquartered in Des Moines, Iowa. The company focuses on designing and issuing retirement income solutions that address longevity risk, capital preservation, and wealth transfer for individual and institutional clients. Its product suite includes fixed indexed annuities, which offer the potential for market-linked growth with downside protection; fixed-rate annuities, delivering guaranteed interest over a defined term; and a range of life insurance policies such as term, universal, and variable universal life. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "F&G Annuities & Life Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is accelerating a transition toward a fee-based, higher-margin, and less capital-intensive business model to leverage its position as a top annuity and life insurance seller. Core retail sales momentum remained strong at $1.8 billion, outperforming a contracting industry-wide fixed indexed annuity (FIA) market which saw a 5% decline. The company is intentionally deemphasizing multi-year guaranteed annuities (MYGA) because current market returns have fallen below internal profitability thresholds. Alternative investment returns of 5.9% were below the 12% long-term target, attributed to a significant portion of the portfolio (84%) being in the early 'value creation' phase of its life cycle. Operating expense efficiency improved to 47 basis points of AUM, driven by scale benefits and disciplined management, with a target of 45 basis points by year-end 2027. The investment portfolio remains high-quality with 97% investment grade fixed maturities and low credit-related impairments averaging 6 basis points over five years. Management has launched a formal process to explore strategic alternatives for Peak Altitude, aiming to bring in a partner to acquire slightly over 50% to unlock intrinsic value. The company expects to maintain a company action level risk-based capital (RBC) ratio above the 400% target, despite a projected 10-point headwind from new NAIC capital charges on CLOs. Pension Risk Transfer (PRT) sales are expected to increase seasonally in the second half of the year, targeting a steady annual volume of $1.5 billion to $2 billion. Near-term alternative investment returns for Q3 are expected to remain in the 7% to 8% range, consistent with the first half of the year rather than the 12% long-term assumption. Future capital generation is expected to strengthen as the business shifts toward capital-light strategies and utilizes its reinsurance sidecar for non-dilutive growth. The sale of F&G Life Re in Q1 reduced incremental adjusted net earnings by $8 million in Q2 compared to the prior quarter. A $750 million funding agreement-backed note (FABN) maturity in the second quarter impacted retained AUM growth. DAC amortization increased by approximately $10 million per quarter following a prior year assumption review triggered by elevated industry surrender rates. Management executed $120 million in opportunistic share repurchases in the first half, taking advantage of share price weakness, though this is not viewed as a primary capital deployment tool going forward. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that core fixed income yields were higher than Q1, and cost of crediting remains consistent for annual-reset products like FIA and IUL. A slight uptick in cost of crediting compared to the prior year was attributed to higher rates on new PRT and funding agreements. The goal is to retain a 49% stake to benefit from future growth while achieving 'cleaner' accounting by avoiding consolidation of business written through Peak. Management believes the market currently ascribes 'little to no value' to the distribution business, and a sale would reveal its true worth. Management defended the 12% target, noting that these investments typically yield higher returns in the later stages of their 10-15 year life cycles. The assumption will be formally revisited during the year-end planning process, but no immediate change is planned despite recent underperformance. F&G is seeing positive traction in the Registered Index-Linked Annuity (RILA) space, which is currently the best-performing subset of the market. Despite being a smaller player in RILA, the company is maintaining a top 5 or 6 position in the FIA space.

JACKSONVILLE, Fla., Aug. 5, 2026 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE: FNF) (FNF or the Company), a leading provider of title insurance and transaction services to the real estate and mortgage industries and a leading provider of insurance solutions serving retail annuity and life customers and institutional clients through its majority-owned, publicly traded subsidiary F&G Annuities & Life, Inc. (NYSE: FG) (F&G), today reported financial results for the three months ended June 30, 2026. Net earnings attributable to common shareholders for the second quarter were $288 million, or $1.08 per diluted share (per share), compared with net earnings of $278 million, or $1.02 per share, for the second quarter of 2025. Net earnings attributable to common shareholders include mark-to-market effects and non-recurring items; all of which are excluded from adjusted net earnings attributable to common shareholders. Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter were $370 million, or $1.39 per share, compared with $318 million, or $1.16 per share, for the second quarter of 2025. The Title Segment contributed $339 million for the second quarter, compared with $260 million for the second quarter of 2025 The F&G Segment contributed $65 million for the second quarter, which reflects our approximately 72% ownership stake following the stock distribution at year-end, compared with $89 million for the second quarter of 2025, which reflected our approximately 82% ownership stake The Corporate Segment adjusted net loss was $6 million for the second quarter, before eliminating dividend income from F&G in the consolidated financial statements, compared with adjusted net loss of $3 million for the second quarter of 2025 FNF's consolidated adjusted net earnings include significant income and expense items in the F&G Segment, as well as alternative investment portfolio short-term returns that differ from long-term return expectations. Please see "Segment Financial Results" for F&G, as well as the "Non-GAAP Measures and Other Information" section for further explanation Company Highlights Title Segment generated strong revenue and an industry leading margin despite dynamic environment: For the Title Segment, total revenue was $2.5 billion for the second quarter, compared with $2.2 billion for the second quarter of 2025. Total revenue, excluding recognized gains and losses, was $2.5 billion for the second quarter, a 16% increase over the second quarter of 2025. Our industry leading adjusted pre-tax title margin was 17.8% for the second quarter F&G Segment achieved assets under management before reinsurance of nearly $75 billion: F&G achieved record assets under management before reinsurance of $74.7 billion at the end of the second quarter, an increase of 8% over the second quarter of 2025. F&G's gross sales were $2.7 billion and net sales were $1.5 billion for the second quarter Robust return of capital to shareholders: FNF returned approximately $195 million of capital to shareholders in the second quarter through $138 million of common stock dividends and $57 million of share repurchases. This brought the first half of 2026 capital returned to shareholders to approximately $417 million, through $278 million of dividends and $139 million of share repurchases. FNF ended the quarter with $457 million in cash and short-term liquid investments at the holding company William P. Foley, II, Chairman, commented, "Our second quarter results highlight the strength of FNF's business model and the benefits of having two complementary market-leading franchises. In Title, we delivered an industry-leading adjusted pre-tax title margin of 17.8% despite a residential market that remains constrained by elevated mortgage rates and historically low transaction volumes. In F&G, assets under management before reinsurance approached $75 billion as the business continued to execute its strategy of balancing growth, profitability and capital efficiency." Mr. Foley added, "Our businesses continue to generate strong and consistent cash flow, supporting a disciplined capital allocation strategy that balances investing for future growth while returning capital to shareholders. During the second quarter, we returned approximately $195 million of capital through dividends and share repurchases, bringing total capital returned during the first six months of 2026 to approximately $417 million. With strong market positions and financial flexibility, we believe FNF remains exceptionally well positioned to create long-term value for our shareholders." Summary Financial Results Segment Financial Results Title Segment This segment consists of the operations of the Company's title insurance underwriters and related businesses, which provide core title insurance and escrow and other title-related services including loan sub-servicing, valuations, default services and home warranty. Mike Nolan, Chief Executive Officer, added, "The Title business delivered an outstanding second quarter, generating adjusted pre-tax title earnings of $448 million, up 33% over the prior year, and an industry-leading adjusted pre-tax title margin of 17.8%. These results reflect strength across our commercial, residential, and agency businesses, supported by disciplined expense management and the benefits of our scale and operating platform. Commercial remains a meaningful driver of our performance as transaction activity and fee per file continue to trend higher, positioning us for what could be one of the strongest commercial years in our history." Mr. Nolan continued, "We are also seeing the benefits of our investments in technology, automation and artificial intelligence. As the leading provider of title and settlement services, FNF provides the rails upon which real estate transactions run, by orchestrating complex multi-party settlements, safeguarding the movement of funds and mitigating fraud in every transaction. By embedding AI capabilities into these workflows, we believe we can drive significant value over time by enhancing efficiency, reducing risk, strengthening fraud prevention and improving the customer experience across real estate transactions. Combined with the significant operating leverage embedded in our model, we believe we are exceptionally well positioned to benefit from the continued strength in commercial and an eventual recovery in residential transaction volumes." Second Quarter 2026 Highlights Total revenue was $2.5 billion, compared with $2.2 billion for the second quarter of 2025 Total revenue, excluding recognized gains and losses, was $2.5 billion, a 16% increase over the second quarter of 2025 Purchase orders opened increased 3% on a daily basis and purchase orders closed increased 4% on a daily basis compared with the second quarter of 2025 Refinance orders opened increased 16% on a daily basis and refinance orders closed increased 26% on a daily basis over the second quarter of 2025 Commercial orders opened increased 7% and commercial orders closed increased 11% over the second quarter of 2025 Total fee per file was $4,107 for the second quarter, a 5% increase from the second quarter of 2025 Second Quarter 2026 Financial Results Pre-tax title margin was 17.8% and industry leading adjusted pre-tax title margin was 17.8% for the second quarter, compared with 16.6% and 15.5%, respectively, for the second quarter of 2025 Pre-tax earnings in Title for the second quarter were $451 million, compared with $367 million for the second quarter of 2025 Adjusted pre-tax earnings in Title were $448 million for the second quarter, an increase of 33% over $337 million for the second quarter of 2025, driven primarily by higher direct operating revenue and agent premiums. Direct title operating revenue increased 17% and agent premiums increased 15% over the second quarter of 2025 F&G Segment This segment consists of operations of FNF's majority-owned subsidiary F&G, a leading provider of insurance solutions serving retail annuity and life customers and funding agreement and pension risk transfer institutional clients. Conor Murphy, F&G's Chief Executive Officer and President, commented, "The second quarter reflects the strength and resilience of the business we have built at F&G. We achieved record assets under management before reinsurance of $74.7 billion underpinned by continued momentum in core retail, while maintaining our disciplined approach to sales, pricing and capital allocation. Our investment portfolio continues to perform well, with strong credit performance and impairments remaining below pricing assumptions, reinforcing the consistent earnings power of our business. Combined with our diversified distribution platform and strategic reinsurance relationships, we believe F&G is well positioned to navigate a dynamic market environment." Mr. Murphy continued, "Having spent the past year working closely with our employees, distribution partners and leadership team, my confidence in the future of F&G has only grown stronger. We see meaningful opportunities to further scale our fee-based, higher-margin and less capital-intensive earnings streams while continuing to grow our core spread-based franchise. Supported by strong inforce earnings generation, substantial financial flexibility and favorable demographic trends, we are confident in our ability to grow assets under management, expand returns and create long-term shareholder value." Second Quarter 2026 AUM before flow reinsurance was $74.7 billion at the end of the second quarter, an increase of 8% over the second quarter of 2025. This included retained AUM of $55.9 billion, an increase of 1% over the second quarter of 2025; retained AUM reflects positive asset flows offset by $1.8 billion inforce block ceded with the F&G Life Re (Bermuda) sale effective March 1, 2026 and a $750 million funding agreement-backed note maturity in the second quarter of 2026 Gross sales were $2.7 billion for the second quarter, compared with $4.1 billion for the second quarter of 2025 which included near record opportunistic sales; reflects our commitment to manage growth for the long-term Core sales were $2.0 billion for the second quarter, compared with $2.2 billion for the second quarter of 2025; reflects strong momentum with $1.8 billion of core retail (indexed annuity and indexed universal life), one of our strongest quarters on record, and $0.2 billion of pension risk transfer sales Opportunistic sales were $0.7 billion for the second quarter, compared with $1.9 billion for the second quarter of 2025; reflects lower multiyear guaranteed annuities partially offset by higher funding agreements. Opportunistic volumes vary quarter to quarter depending on economics and market opportunity Net sales were $1.5 billion for the second quarter, compared with $2.7 billion for the second quarter of 2025; reflects flow reinsurance in line with capital targets for multiyear guaranteed annuities and fixed indexed annuities F&G Segment net loss attributable to common shareholders was $55 million for the second quarter which included unfavorable mark-to-market movement, compared to net earnings of $33 million for the second quarter of 2025 which included unfavorable mark-to-market movement F&G Segment adjusted net earnings attributable to common shareholders were $65 million for the second quarter which reflects our approximately 72% ownership stake following the stock distribution at year-end, compared with $89 million for the second quarter of 2025, which reflected our approximately 82% ownership stake Conference Call We will host a call with investors and analysts to discuss FNF's second quarter of 2026 results on Thursday, August 6, 2026, beginning at 11:00 a.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. 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 insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com. 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, this earnings release includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include adjusted net 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), adjusted net earnings attributable to common shareholders (adjusted net earnings), assets under management (AUM), average assets under management (AAUM) and sales. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, FNF believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable 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: changes in general economic, business, political crisis, war and pandemic conditions, including ongoing geopolitical conflicts; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; 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, including regulation of title insurance and services and privacy and data protection laws; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; 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. FNF-E Non-GAAP Measures and Other Information Title Segment The table below reconciles pre-tax title earnings to adjusted pre-tax title earnings. Title Segment (continued) F&G Segment The table below reconciles net earnings (loss) attributable to common shareholders to adjusted net earnings attributable to common shareholders. The F&G Segment is reported net of noncontrolling minority interest. Adjusted net earnings were $65 million for the second quarter of 2026. Investment income from alternative investments was $35 million, or $0.13 per share, below management's current long-term expected return of approximately 12% Adjusted net earnings were $89 million for the second quarter of 2025. Investment income from alternative investments was $55 million, or $0.21 per share, below management's long-term expected return Adjusted net earnings of $145 million for the first six months ended June 30, 2026 included $4 million, or $0.01 per share, from investment and other income true-up adjustments. Investment income from alternative investments was $66 million, or $0.25 per share, below management's current long-term expected return Adjusted net earnings of $169 million for the first six months ended June 30, 2025 included $13 million, or $0.05 per share, of income from a reinsurance true-up adjustment. Investment income from alternative investments was $92 million, or $0.34 per share, below management's long-term expected return F&G Segment (continued) The table below provides a summary of sales highlights. DEFINITIONS The following represents the definitions of non-GAAP measures used by the Company. Adjusted Net Earnings attributable to common shareholders Adjusted net earnings attributable to common shareholders (ANE) is a non-GAAP economic measure used to evaluate financial performance each period. ANE eliminates the impact of specific items that are not indicative of the underlying economics of our business, including certain market volatility, asymmetrical and noneconomic accounting, nonrecurring items and other income and expense adjustments. These items are volatile in our reported GAAP earnings and are not indicative of the underlying profitability drivers reflected in the design and pricing of our products and/or our investment and hedging strategy, as such items fluctuate from period to period in a manner inconsistent with these drivers. ANE provides information to enhance an investor's understanding of our results and underlying profitability drivers by removing the impact of short-term market volatility (i.e. recognized gains and losses, market risk benefits remeasurement gains and losses, derivative gains and losses), asymmetrical and non-economic accounting (i.e. derivatives and investment hedges that do not qualify for hedge accounting, deferred pension risk transfer deferred profit liability losses), and other adjustments. ANE is calculated by adjusting net earnings or loss attributable to common shareholders to eliminate: Recognized gains and losses are excluded from ANE as part of both adjustments (i) and (ii). As part of those two adjustments to ANE, all material recognized gains and losses are removed except for periodic settlements of interest rate swaps used to economically hedge floating rate investments. While these adjustments are an integral part of the overall performance of FNF, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations. Assets Under Management (AUM) AUM is comprised of the following components and is reported net of reinsurance assets ceded in accordance with GAAP: Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio that is retained. AUM before Flow Reinsurance AUM before Flow Reinsurance is comprised of components consistent with AUM, but also includes flow reinsured assets. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the size of our investment portfolio including reinsured assets. Average Assets Under Management (AAUM) AAUM is calculated as AUM at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on retained assets. Sales Annuity, IUL, funding agreement and non-life contingent PRT sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e., contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. Life contingent PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition. View original content:https://www.prnewswire.com/news-releases/fnf-reports-second-quarter-2026-financial-results-302843960.html

DES MOINES, Iowa, Aug. 5, 2026 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) (F&G or the Company) a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, today reported financial results for the second quarter ended June 30, 2026. Net loss attributable to common shareholders for the second quarter of $81 million, or $0.62 per diluted share (per share), compared to net earnings of $35 million, or $0.26 per share, for the second quarter of 2025. Net loss for the second quarter included $144 million of net unfavorable mark-to-market effects and $22 million of other unfavorable items; all of which are excluded from adjusted net earnings. Net earnings for the second quarter of 2025 included $49 million of net unfavorable mark-to-market effects and $19 million of other unfavorable items; all of which are excluded from adjusted net earnings. Adjusted net earnings attributable to common shareholders (adjusted net earnings) for the second quarter were $85 million, or $0.65 per share, compared with $103 million, or $0.77 per share, for the second quarter of 2025. Adjusted net earnings include significant income and expense items, as well as investment income from alternative investments below management's long-term expected return. Please see the "Second Quarter 2026 Results" and "Non-GAAP Measures and Other Information" sections for further explanation. Company Highlights Achieved record assets under management before reinsurance of nearly $75 billion: F&G achieved assets under management before reinsurance of $74.7 billion as of June 30, 2026, an increase of 8% over the second quarter of 2025. This included retained AUM of $55.9 billion. F&G's gross sales were $2.7 billion and net sales were $1.5 billion for the second quarter Excellent credit performance in our high quality asset portfolio: The retained investment portfolio is performing well, with 97% of fixed maturities being investment grade. It is well matched to our liability profile and diversified across asset types. Credit-related impairments have remained low and stable, averaging 6 basis points over the past five years, and continuing below pricing assumptions through the first half of 2026 Reported adjusted return on equity (ROE) ex AOCI and adjusted return on assets (ROA) include short-term fluctuations in investment income from alternative investments: Adjusted ROE excluding AOCI was 8.0% and adjusted ROA was 68 basis points for the second quarter; adjusted ROA of 85 basis points over the last twelve months (LTM) was in line with full year 2025 Solid balance sheet supports both organic growth and higher return of capital to shareholders: During the second quarter, F&G returned $128 million of capital to shareholders through $37 million of common and preferred dividends and $91 million of share repurchases. This brought the first half of 2026 capital returned to shareholders to approximately $195 million, through $75 million of dividends and $120 million of share repurchases Conor Murphy, F&G's Chief Executive Officer and President, commented, "The second quarter reflects the strength and resilience of the business we have built at F&G. We achieved record assets under management before reinsurance of $74.7 billion underpinned by continued momentum in core retail, while maintaining our disciplined approach to sales, pricing and capital allocation. Our investment portfolio continues to perform well, with strong credit performance and impairments remaining below pricing assumptions, reinforcing the consistent earnings power of our business. Combined with our diversified distribution platform and strategic reinsurance relationships, we believe F&G is well positioned to navigate a dynamic market environment." Mr. Murphy continued, "Having spent the past year working closely with our employees, distribution partners and leadership team, my confidence in the future of F&G has only grown stronger. We see meaningful opportunities to further scale our fee-based, higher margin and less capital intensive earnings streams while continuing to grow our core spread-based franchise. Supported by strong inforce earnings generation, substantial financial flexibility and favorable demographic trends, we are confident in our ability to grow assets under management, expand returns and create long-term shareholder value." Second Quarter 2026 Results Record AUM before reinsurance was $74.7 billion as of June 30, 2026, an increase of 8% over $69.2 billion at the end of the second quarter of 2025. This included AUM of $55.9 billion as of June 30, 2026, an increase of 1% over $55.6 billion at the end of the second quarter of 2025; retained AUM reflects net asset flows offset by $1.8 billion inforce block ceded with the F&G Life Re (Bermuda) sale effective March 1, 2026 and a $750 million funding agreement-backed note maturity in the second quarter of 2026. A rollforward of AUM can be found in the "Non-GAAP Measures and Other Information" section of this release. Gross sales were $2.7 billion for the second quarter, compared with $4.1 billion for the second quarter of 2025 which included near record opportunistic sales; reflects our commitment to manage growth for the long-term. Core sales were $2.0 billion for the second quarter, compared with $2.2 billion for the second quarter of 2025; reflects strong momentum with $1.8 billion of core retail (indexed annuities and indexed universal life) sales, one of our strongest quarters on record, and $0.2 billion of pension risk transfer sales. Opportunistic sales were $0.7 billion for the second quarter, compared with $1.9 billion for the second quarter of 2025; reflects $1.8 billion decrease in multiyear guaranteed annuities as we prioritize pricing discipline and capital allocation to the highest return opportunities, partially offset by $0.6 billion of higher funding agreements. Opportunistic volumes vary quarter to quarter depending on economics and market opportunity. Net sales were $1.5 billion for the second quarter, compared with $2.7 billion for the second quarter of 2025; reflects flow reinsurance in line with capital targets for fixed indexed annuities and multiyear guaranteed annuities. Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter, compared with $103 million, or $0.77 per share, for the second quarter of 2025. Adjusted net earnings include alternative investment portfolio short-term returns that differ from long-term return expectations. Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter of 2026. Investment income from alternative investments was $49 million, or $0.38 per share, below management's current long-term expected return of approximately 12% Adjusted net earnings were $103 million, or $0.77 per share, for the second quarter of 2025. Investment income from alternative investments was $67 million, or $0.50 per share, below management's long-term expected return As compared with the prior year quarter and excluding the above items, adjusted net earnings reflect consistent core spread as the business maintained disciplined pricing. Total product margin was reduced after reflecting the F&G Life Re (Bermuda) sale, as well as lower surrender charge fee income and higher other liability costs, as expected. These items were partially offset by asset growth, steady fees from accretive flow reinsurance and owned distribution margin, and disciplined expense management which continued to drive scale benefit Capital and Liquidity Highlights Total F&G equity attributable to common shareholders, excluding AOCI, was $6.0 billion, or $45.93 per share, as of June 30, 2026. This reflects an increase of $1.50 per share as compared with December 31, 2025. During the second quarter, F&G returned $128 million of capital to shareholders through $37 million of common and preferred dividends and $91 million to repurchase approximately 3.3 million shares of common stock at an average price of $27.27. This brought the first half of 2026 capital returned to shareholders to approximately $195 million, through $75 million of dividends and $120 million to repurchase approximately 4.5 million shares of common stock at an average price of $26.44. Earnings Conference CallMembers of F&G's senior management team will host a conference call with the investment community to discuss F&G's second quarter 2026 results on Thursday, August 6, 2026, beginning at 9:00 a.m. Eastern Time. The conference call will be broadcast live over F&G's Investor Relations website at investors.fglife.com. A replay will also be available at the same location. About F&GF&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit fglife.com. Use of Non-GAAP Financial InformationGenerally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Our non-GAAP financial measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner as we do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, the Company believes it offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company's management operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided within. Forward-Looking Statements and Risk FactorsThis press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. 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: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; consumer spending; government spending; the volatility and strength of the capital markets; investor and consumer confidence; foreign currency exchange rates; commodity prices; inflation levels; changes in trade policy; tariffs and trade sanctions on goods; trade wars; supply chain disruptions; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC). CONTACT:Lisa Foxworthy-ParkerSVP of Investor & External [email protected] Adjusted net earnings were $85 million, or $0.65 per share, for the second quarter of 2026. Investment income from alternative investments was $49 million, or $0.38 per share, below management's current long-term expected return of approximately 12% Adjusted net earnings were $103 million, or $0.77 per share, for the second quarter of 2025. Investment income from alternative investments was $67 million, or $0.50 per share, below management's long-term expected return Adjusted net earnings of $195 million, or $1.49 per share, for the first six months ended June 30, 2026 included $5 million, or $0.04 per share, from investment and other income true-up adjustments. Investment income from alternative investments was $93 million, or $0.71 per share, below management's long-term expected return Adjusted net earnings of $194 million, or $1.48 per share, for the first six months ended June 30, 2025 included $16 million, or $0.12 per share, of income from a reinsurance true-up adjustment. Investment income from alternative investments was $112 million, or $0.86 per share, below management's long-term expected return View original content:https://www.prnewswire.com/news-releases/fg-annuities--life-reports-second-quarter-2026-results-302843953.html