Fidelity National Financial, Inc. (NYSE:FNF) Q4 2019 Earnings Conference Call - Final Transcript

Feb 14, 2020 • 12:00 pm ET


Fidelity National Financial, Inc. (NYSE:FNF) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the FNF 2019 fourth quarter earnings call. [Operator Instructions] I would now like to turn the call over to Jamie Lillis, Investor Relations for FNF. Please go ahead, sir.

Jamie Lillis

Thank you, operator, and good morning, everyone. Thank you for joining our fourth quarter 2019 earnings conference call. Joining me today are our Chairman, Bill Foley; CEO, Randy Quirk; President, Mike Nolan; CFO, Tony Park; and F&G CEO, Chris Blunt. We'll begin with a brief strategic overview from Bill. Randy will review the title business and Tony will finish with a review of the financial highlights and open the call for your questions, and finish with concluding remarks from Bill Foley.

But before we begin, I would like to remind you that this conference call may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the risks and other factors detailed in our press release dated yesterday and in the statement regarding forward-looking information, risk factors and other sections of the Company's Form 10-K and other filings with the SEC.

This conference call will be available for replay via webcast at our website at It will also be available through phone replay beginning at 2:00 PM Eastern today through February 21. The replay number is 844-512-2921 and the access code is 13697834.

Let me now turn the call over to our Chairman, Bill Foley.

William P. Foley, II

Thank you, Jamie. The fourth quarter was another strong quarter for our title business, finishing off a banner year. We generated adjusted pre-tax title earnings of $355 million and a 16.3% adjusted pre-tax title margin during the fourth quarter. For the year, we generated adjusted pre-tax title earnings of $1.3 billion, a record, with an adjusted pre-tax title margin of 16.3%, which was our best since 2003. I will let Randy go into more details on the title business in a moment.

Turning to our acquisition of FGL Holdings, or F&G, which we announced last week, FNF has agreed to acquire F&G for $12.50 per share of common stock in an equity deal valued at approximately $2.7 billion. We expect the transaction to be more than 20% accretive on a pro forma basis to FNF's 2021 earnings and 10% accretive on a pro forma basis to FNF's 2020 earnings, assuming the transaction closes by June 30, 2020.

Through the acquisition, FNF will expand