Fidelity National Financial, Inc.

Good morning and welcome to FNF fourth quarter and full year 2021 earnings call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As a reminder, this conference call is being recorded. I would now like to turn the call over to Lisa Foxworthy-Parker, SVP Investor and External Relations. Please go ahead.

Great. Thanks, Operator, and welcome again, everyone. Before we begin, and as a reminder, 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 a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business, and you'll find reconciliations of these metrics within our earnings material available on the company's website. Yesterday, we issued a press release, which is also available on our website. Today's conference call will be available for webcast replay at www.fnf.com. It will also be available through telephone replay beginning at 1 p.m. Eastern today through March 3rd. Joining me this morning to discuss the business momentum we are seeing at FNF and FNG and our results in further detail are Mike Nolan, CEO, Tony Park, CFO, and Chris Blunt, FNG CEO. We look forward to addressing your questions following conclusion of our prepared remarks. And with that, I'll now turn the call over to Mike.

Thank you, Lisa, and good morning, everyone. I would like to start by thanking Bill and Randy for their leadership over almost four decades in building the industry's largest title organization and look forward to their continued support going forward. I also appreciate their and the board's support as I assume the role of CEO. I am incredibly proud of the business that we have built and am optimistic for the future of FNF as we continue to expand our industry-leading title business while growing F&G's assets under management. I would also like to thank our employees for their hard work and commitment over the last year. We could not have delivered such remarkable performance without their incredible effort. I'm pleased to announce strong results for the fourth quarter of 2021 building on the momentum we established in the first three quarters of the year. Tony will provide additional details on our financial performance shortly, but I would like to touch on a few highlights for the year. Our outstanding quarterly and full-year performance was driven by record results from our title business, as momentum in residential purchase and commercial revenue more than offset the ongoing contraction in refinance volumes which have a significantly lower fee profile. On a consolidated basis, total revenue, excluding recognized gains and losses, was 4.6 billion for the fourth quarter, a 43% increase over fourth quarter 2020, and a record 15.3 billion for the full year, a 49% increase over full year 2020. This generated net earnings of 533 million in the quarter, and $2.4 billion or $8.44 per diluted share for the full year. Adjusted net earnings were $616 million in the quarter, a 5% increase over the fourth quarter 2020, and $2.3 billion for the full year, a 49% increase over full year 2020. F&G also contributed to this strong result. F&G sales growth remains impressive and above expectation as they continue to expand into new channels and grow their addressable market opportunity while continuing to have strong success in existing markets. For the quarter, F&G delivered total sales of $2.2 billion, representing a 50% increase over the fourth quarter of 2020. For the full year, total sales were $9.6 billion, double the prior year. Importantly, total assets under management were $36.5 billion at December 31st, 2021, which is well ahead of our goal of doubling assets under management over five years as we outlined at the time of our acquisition. Total commercial revenue was a record $546 million compared with the year-ago quarter of $322 million, driven by the 17% increase in closed orders and a 44% increase