Fidelity National Financial, Inc.

Good morning and welcome to FNF's first quarter 2025 earnings call. During today's presentation, all callers will be placed in listen-only mode. Following management's prepared remarks, the conference will be open for questions with instructions to follow at that time. I would now like to turn the call over to Lisa Foxworthy-Parker, SVP, Investor and External Relations. Please go ahead.

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 Chris Blunt, Chief Executive Officer, Connor Murphy, Chief Financial Officer, and Wendy Young, Chief Liability Officer, will also be available for Q&A. 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.

Thank you, Lisa, and good morning. Overall, the combined business continued to deliver strong financial results through the first quarter. Starting with title, we delivered an adjusted pre-tax title earnings of $211 million and achieved an industry-leading adjusted pre-tax title margin of 11.7% for the first quarter, an increase of 100 basis points over the 10.7% margin in the prior year quarter. We are pleased with our first quarter title results, which are a testament to our employees as well as the operational efficiencies that we have achieved over the last few decades through investments in technology. Our investments are enabling our team to deliver margins above prior market troughs, and we believe will likewise deliver higher margins at the peak of the next cycle. We continue to generate strong free cash flows during this period of low transactional volume. This enables us to have a dynamic capital allocation strategy focused on returning capital to shareholders through our dividend and share repurchases and investing in our business through ongoing technology and growth investments, including M&A and talent acquisition, as well as investing in F&G's growth engine. We are well positioned to take advantage of opportunities that arise from the current market volatility and from our investments in technology and process improvement, which I will touch on more in a moment. Looking at our first quarter title results in more detail, on the purchase front, we saw typical first quarter seasonality. For the month of April, we have seen purchased open orders down 3% due to the impact of uncertainty and mortgage rate volatility. Our daily purchase orders opened were up 3% over the first quarter of 2024, up 22% over the fourth quarter of 2024, and down 3% for the month of April versus the prior year. On the refinance front, volumes continued to respond to movement in mortgage rates. We saw daily refinance orders opened of 1,300 in the first quarter, and 1,400 per day in the month of April. Our refinance orders open per day were up 33% over the first quarter of 2024, up 6% over the fourth quarter of 2024, and up 41% for the month of April versus the prior year. On the commercial front, volumes continued to be strong with direct commercial revenue of $293 million in the first quarter. up 23% over the first quarter of 2024. This was our second best commercial first quarter in history from a revenue perspective, driven by national and local revenues, which were both up over 20% versus the prior year quarter. In particular, national daily orders opened were up 19% over the first quarter of 2024 and up 33% for the month of March over March of 2024. Notably, we have now four consecutive quarters with double-digit increases in national daily orders opened. Mobile market daily orders opened were up 4% over the first quarter of 2024 and up 10% for the month of March over March of 2024. On the whole, our total commercial orders opened were 862 per day. up 10% over the first quarter of 2024, up 14% over the fourth quarter of 2024, and up 19% for the month of March versus March of 2024. Bringing it all together, total orders opened averaged 5,600 per day in the first quarter, with January at 5,100, February at 5,700, and March at 6,100. For the month of April, Total orders opened were 5,800 per day, down 5% versus March. As we enter the second quarter and look ahead to the remainder of 2025, there's a range of possible economic scenarios. While we don't have a crystal ball to predict, I do know that our seasoned management team has a proven track record of managing our business to the trend in open orders and varying economic conditions. As I mentioned earlier, this track record has generated a steady level of free cash flow, allowing us to continue to invest in our business through attractive acquisitions and technology as we manage the business and continue to build for the long term. We have a differentiated technology foundation that is ahead of the industry and is the engine that drives our industry-leading margins. This includes our integrated SoftPro operating platform, that is deployed across our full footprint, our automated title efforts in both refinance and purchase that are powered by patented and pioneering technology, and our in-here digital transaction platform that is deployed nationwide and in its fourth year of providing an enhanced and reinvented customer experience. This powerful foundation, together with our robust curated data, gives us an advantage when it comes to integrating and leveraging AI capabilities over time. We are focused on making investments in AI and particularly excited about the potential benefits that AI can provide to increase efficiency and productivity in our operations. Turning now to our F&G business, F&G has profitably grown assets under management before flow reinsurance to $67.4 billion at March 31st, up 16% over the prior year quarter. We are approaching the five-year anniversary of the F&G merger on June 1st. Since mid-2020, F&G has successfully transformed from essentially being a monoline business to one that is well diversified by product and channel and has a profitable, enforced book of business that has scaled considerably. F&G's performance has exceeded our expectations since the acquisition and proved to be a nice complement to our title business through the recent high interest rate environment. While rates will vary, F&G has proved that it can deliver strong results over time and is strategically positioned for long-term growth. Given our confidence in F&G's continued growth, and our desire to maintain FNF's ownership stake above 80%, our board made the decision to participate in FNG's March common stock offering. FNF purchased 4.5 million shares of the 8 million total common shares issued. As a result, FNF's majority ownership stake in FNG is approximately 82% as of March 31st. Net proceeds of the equity raise will enable F&G to take advantage of the current opportunity to further its AUM growth. I'd especially like to thank our employees for all they have done to contribute to our success over time as they drive our ability to deliver value to our clients and insureds regardless of the external environment. I am excited to build on our leadership position and continue to generate shareholder value. With that, let me now turn the call over to Tony to review FNS first quarter financial performance and provide additional highlights.