Fidelity National Financial, Inc.

Good morning, ladies and gentlemen, and welcome to the FNF 2020 Second Quarter Earnings Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions with instructions to follow at that time. As a reminder, this conference is being recorded. I would now like to turn the conference over to Jamie Lillis, Investor Relations, or FNF. Please go ahead, sir.

Thank you, Operator, and good morning. Thank you for joining our second quarter 2020 earnings conference call. Joining me today is our CEO, Randy Quirk, President Mike Nolan, CFO Tony Park, and F&G's CEO, Chris Blount. We'll begin with a brief strategic overview from Randy, Mike will review the title business, Chris will review F&G, and Tony will finish with a review of the financial highlights. We'll then open the call for your questions, and finish with some concluding remarks from Randy. 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, in particular the COVID-19 pandemic. There is significant uncertainty about the duration and extent of the impact of this pandemic. 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 at the time of this call. 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 fnf.com. It will also be available through phone replay beginning at 3 p.m. Eastern Time today through August 12th. The replay number is 844-512-2921, and the access code is 13706371. Let me now turn the call over to our CEO, Randy.

Thank you, Jamie. I would like to start by thanking our employees for their hard work as they have continued to keep our operations running smoothly and even as approximately 70% have continued to work remotely as a result of the COVID-19 pandemic. Our first priority remains the safety and health of our people during these challenging times, and I'm very proud of their efforts. I will let Mike go into more detail on the title business momentarily. Touching on the highlights of our title business, in the second quarter, we generated adjusted pre-tax title earnings of $378 million over compared with $363 million in the comparable year-ago quarter and an 18.4% adjusted pre-tax title margin compared with 17.7% in the second quarter of 2019. We are also pleased to announce that last week we purchased the remaining 21% interest in ServiceLink for $90 million, which gives us full ownership in the leading provider of centralized residential refinance title enclosing and default management services, as well as the second largest loan subservicer in the industry. Turning to our acquisition of FGL Holdings, after three years as a minority holder in F&G, we closed our acquisition on June 1, 2020, in a cash and equity deal valued at approximately $2.7 billion at closing. We are excited to welcome the F&G employees and policyholders into the F&F family. F&G had strong sales for the quarter, and as a result of the acquisition, F&G was recently upgraded by multiple rating agencies and achieved a major distribution milestone by successfully expanding into the financial institution channel. We continue to expect the transaction to be more than 10% accretive on a pro forma basis to F&F's 2020 earnings per share and 20% accretive on a pro forma basis to F&F's 2021 earnings per share. Looking forward, our commitment to creating meaningful long-term value for our shareholders through our capital allocation strategy is unwavering. We announced in late July our quarterly cash dividend of 33 cents per share, which reflects the fourth quarter dividend increase of 6.5%. Our share buyback was previously suspended due to the F&G acquisition and the uncertain COVID-19 outlooks. We continue to watch the economy and the COVID-19 pandemic closely as we evaluate share buybacks. Let me now turn the call over to Mike Nolan to discuss the title insurance business in more detail.