Fidelity National Financial, Inc.

Good morning and welcome to FNF's fourth quarter and full year 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, Senior Vice President, 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, CEO, and Connor Murphy, President and CFO, 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. The fourth quarter results rounded out an excellent year for our title and F&G businesses, both in terms of results and execution. Our title business delivered outstanding results in the current environment. We had adjusted pre-tax title earnings of $401 million in the fourth quarter and $1.4 billion for the full year. This generated industry-leading adjusted pre-tax title margins of 17.5% in the fourth quarter and 15.9% for the full year. Our fourth quarter results reflect strong performance across the business, highlighted by exceptional strength in our direct commercial business. Additionally, our disciplined expense management drove strong incremental margins. Our achievements are a testament to our employees, the best titled professionals in the industry. I'd like to extend a profound thanks for all that they do to consistently deliver industry-leading results, provide innovative solutions to our customers, and ensure secure and efficient real estate transactions. We have transformed our business through decades of pioneering technology solutions and investments in the business, driving efficiencies and helping FNF maintain a competitive edge. As a result, we've expanded our margins over the last three years and significantly outperformed prior cyclical lows. 2025 was no exception, and we're excited to further enhance our industry-leading technology capabilities which I'll speak to further in a few minutes. Looking at our title results more closely, on the purchase front, we are successfully navigating the low transactional environment with purchase orders opened of 3,200 per day in the fourth quarter, in line with the fourth quarter of 2024 and reflecting normal seasonality. For the month of January, our daily purchase orders opened were up 1% versus the prior year and up 31% versus December. On the refinance front, volumes continue to be responsive as 30-year mortgage rates decreased during the fourth quarter. This generated refinance orders opened of 1,700 per day in the fourth quarter, up from 1,600 in the sequential quarter. Our refinance orders opened per day were up 38% over the fourth quarter of 2024, up 75 percent for the month of January versus the prior year, and up 28 percent for the month of January versus December. On the commercial front, we delivered direct commercial revenue of nearly $1.5 billion for the full year, which was our third best year on record, trailing only the exceptional markets of 2021 and 2022. For the fourth quarter, direct commercial revenue was $479 million, a 27% increase over the fourth quarter of 2024. This was driven by a 33% increase in national revenues and a 20% increase in local revenues. National daily orders opened were up 9% over the fourth quarter of 2024, and local market daily orders opened were up 8% over the fourth quarter of 2024. Total commercial orders opened were 815 per day, up 8% over the fourth quarter of 2024, and up 11% for the month of January versus the prior year. We continue to see growth in commercial activity driven by a broad set of asset classes, including industrial, multifamily, affordable housing, retail, and energy. This year's performance is especially notable given minimal contribution from the office sector, which remains subdued but is showing signs of improvement. We have also seen a 21% increase in commercial refinance orders opened for the full year 2025 over the prior year. Looking ahead, we have entered 2026 with a strong inventory of commercial deals to close, and the office sector is a potential added element as we move throughout the year. Overall, total orders opened averaged 5,300 per day in the fourth quarter, with October at 5,700 November at 5,600, and December at 4,600. For the month of January, total orders opened were 5,900 per day, up 29% over December. Our title business is performing extremely well in what is still a low transactional environment. The National Association of Realtors, or NAR, has ranked 2025 home sales among the lowest levels since 1995, due to high mortgage rates and a housing shortage. Notably, the US population has grown by over 70 million people over the last three decades. According to NAR, home sales have been close to 4 million per year since 2023, well short of the 5.1 million average over the last 30 years. Over the next few years, we anticipate home sales will trend back toward the historical average. We are well positioned for the current market and poised to benefit from a potential turn in the housing market should mortgage rates drop further in 2026 and beyond. We remain bullish on the long-term prospects for the title insurance business even in the current environment. Our disciplined operating model is centered on managing our business to the trend in open orders to deliver industry-leading results. Over the long term, this discipline has generated a steady level of free cash flow, allowing us to continuously invest in our business through attractive acquisitions and technology initiatives. We have a number of accomplishments in 2025, advancing our technology and innovation. To provide a few highlights, our in-here digital transaction platform has scaled to a fully deployed enterprise solution. engaging 80% of our residential sale transactions and reaching nearly 2.8 million unique users throughout 2025, 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 also expanded our identity verification processes and technology to streamline and secure customer authentication, helping combat the rise in impersonation and wire fraud in property sales. We rolled out AI tools enterprise-wide in 2025, deploying practical tools to enhance productivity and margin efficiency. We've made significant progress in building AI literacy across the company and teams are using AI to streamline workflows, increase efficiency, and unlock new ways to better serve our customers. Finally, our curated data and technology touched over 90% of our total volume, supported by our proprietary title plants and patented title automation that is integrated into our centralized workflows. Our approach of leveraging title automation tools and data at scale has led to significant productivity improvements and been an important driver of our technology strategy. These successful investments in technology have played a critical role in our ability to maintain our industry-leading position for adjusted pre-tax title margin. Over time, we believe that our ongoing investments in technology, combined with our robust curated data, will lead to increased efficiency and productivity in our operations that will continue to support our market-leading pre-tax title margin. Turning now to our F&G segment, F&G's assets under management before flow reinsurance have grown to $73.1 billion at year-end, up 12% over the prior year. On a standalone basis, F&G reported GAAP equity excluding AOCI of $6 billion at year-end and has grown its book value per share excluding AOCI to $44.43, up 62% since the 2020 acquisition. On December 31st, FNF completed the distribution of approximately 12% of the outstanding shares of F&G's common stock to FNF shareholders, returning approximately $500 million of tangible value to FNF shareholders. Following the distribution, F&F retains control and majority ownership with approximately 70 percent of the outstanding shares in F&G. This has increased F&G's public flow from approximately 18 percent to approximately 30 percent after the distribution, strengthening F&G's positioning within the equity markets and facilitating greater institutional ownership. This distribution reflects our confidence in F&G's long-term prospects and is intended to unlock shareholder value by enhancing market liquidity and broadening investor access to F&G's shares. F&G has increased its quarterly common stock dividend by 14% in the fourth quarter, supported by its strong and growing cash generation as it transitions to be more fee-based, higher margin, and less capital intensive. Going forward, we expect F&G to be a meaningful source of capital to FNF through its $112 million annual common and preferred dividends at the 70% ownership level, which indirectly benefits FNF shareholders. With that, let me now turn the call over to Tony to review FNF's fourth quarter and full year financial performance and provide additional insights.