We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fidelity National (FNF) Q4 Earnings Miss on Lower Title Volumes
Read MoreHide Full Article
Fidelity National Financial, Inc. (FNF - Free Report) reported fourth-quarter 2023 operating income per share of 75 cents, which missed the Zacks Consensus Estimate by 26.5%.
The bottom line decreased 29.2% on a year-over-year basis due to a significant decline in Title volume.
Behind the Headlines
Operating revenues increased 34.4% year over year to $3.4 billion in the quarter, driven by higher escrow, title-related and other fees as well as interest and investment income. The top line beat the Zacks Consensus Estimate by 22.6%.
Interest and investment income of $692 million increased 28.5% year over year.
Fidelity National Financial, Inc. Price, Consensus and EPS Surprise
Total expenses increased 66.1% year over year to $3.6 billion due to higher personnel costs, agent commissions, other operating expenses, depreciation and amortization, claims loss expense and interest expenses.
Segment Results
Total revenues at Title fell 10.5% year over year to $1.7 billion. While direct title premiums declined 10% to $489 million in the quarter, agency title premiums decreased 13% year over year to $619 million. Commercial revenues of $294 million declined 15%.
Adjusted pre-tax title margin came in at 11.8%, which contracted 50 basis points (bps) year over year due to a fall in residential and commercial volumes.
Purchase orders opened increased 1% on a daily basis. Purchase orders closed decreased 7% on a daily basis.
Refinance orders opened fell 11% on a daily basis and refinance orders closed decreased 23%. Commercial orders opened declined 3% and commercial orders closed decreased 14%. The total fee per file of $3,806 in the fourth quarter increased 4% year over year.
Gross sales at F&G were $4.1 billion in the fourth quarter, up 52% year over year, driven by record retail channel sales and strong institutional market sales.
Retail channel sales of $3 billion increased 20%, driven by robust multiyear guaranteed annuity sales in the higher rate environment. Institutional market sales of $1.1 billion increased more than five-fold, driven by higher pension risk transfer and FHLB funding agreement sales.
Net sales of $2.5 billion increased 31.6%.
Average assets under management amounted to a record $49.5 billion at quarter-end, up 13.5% year over year, driven by net new business flows, stable inforce retention and net debt proceeds over the past 12 months. AUM before flow reinsurance was $56.3 billion as of Dec 31, 2023
Financial Update
Fidelity National exited 2023 with a cash and investment portfolio of $58.8 billion, up 23.2% from the 2022-end level. As of Dec 31, 2023, notes payable of $3.9 billion were up 20% from the figure at 2022 end.
Stockholders’ equity of $6.9 billion increased 12.9% from the figure as of Dec 31, 2022.
Zacks Rank
Fidelity National currently carries a Zacks Rank #4 (Sell).
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fidelity National (FNF) Q4 Earnings Miss on Lower Title Volumes
Fidelity National Financial, Inc. (FNF - Free Report) reported fourth-quarter 2023 operating income per share of 75 cents, which missed the Zacks Consensus Estimate by 26.5%.
The bottom line decreased 29.2% on a year-over-year basis due to a significant decline in Title volume.
Behind the Headlines
Operating revenues increased 34.4% year over year to $3.4 billion in the quarter, driven by higher escrow, title-related and other fees as well as interest and investment income. The top line beat the Zacks Consensus Estimate by 22.6%.
Interest and investment income of $692 million increased 28.5% year over year.
Fidelity National Financial, Inc. Price, Consensus and EPS Surprise
Fidelity National Financial, Inc. price-consensus-eps-surprise-chart | Fidelity National Financial, Inc. Quote
Total expenses increased 66.1% year over year to $3.6 billion due to higher personnel costs, agent commissions, other operating expenses, depreciation and amortization, claims loss expense and interest expenses.
Segment Results
Total revenues at Title fell 10.5% year over year to $1.7 billion. While direct title premiums declined 10% to $489 million in the quarter, agency title premiums decreased 13% year over year to $619 million. Commercial revenues of $294 million declined 15%.
Adjusted pre-tax title margin came in at 11.8%, which contracted 50 basis points (bps) year over year due to a fall in residential and commercial volumes.
Purchase orders opened increased 1% on a daily basis. Purchase orders closed decreased 7% on a daily basis.
Refinance orders opened fell 11% on a daily basis and refinance orders closed decreased 23%. Commercial orders opened declined 3% and commercial orders closed decreased 14%. The total fee per file of $3,806 in the fourth quarter increased 4% year over year.
Gross sales at F&G were $4.1 billion in the fourth quarter, up 52% year over year, driven by record retail channel sales and strong institutional market sales.
Retail channel sales of $3 billion increased 20%, driven by robust multiyear guaranteed annuity sales in the higher rate environment. Institutional market sales of $1.1 billion increased more than five-fold, driven by higher pension risk transfer and FHLB funding agreement sales.
Net sales of $2.5 billion increased 31.6%.
Average assets under management amounted to a record $49.5 billion at quarter-end, up 13.5% year over year, driven by net new business flows, stable inforce retention and net debt proceeds over the past 12 months. AUM before flow reinsurance was $56.3 billion as of Dec 31, 2023
Financial Update
Fidelity National exited 2023 with a cash and investment portfolio of $58.8 billion, up 23.2% from the 2022-end level. As of Dec 31, 2023, notes payable of $3.9 billion were up 20% from the figure at 2022 end.
Stockholders’ equity of $6.9 billion increased 12.9% from the figure as of Dec 31, 2022.
Zacks Rank
Fidelity National currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Property & Casualty Insurers
The Travelers Companies (TRV - Free Report) reported fourth-quarter 2023 core income of $7.01 per share, which beat the Zacks Consensus Estimate of $5.04. The bottom line more than doubled year over year, driven by higher underlying underwriting gain, lower catastrophe losses and higher net investment income. Travelers’ total revenues increased 13.5% from the year-ago quarter to $10.9 billion, primarily driven by higher premiums. The top-line figure beat the Zacks Consensus Estimate by 0.2%.
Net written premiums increased 13% year over year to about $10 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $9.7 billion. TRV witnessed an underwriting gain of $1.4 billion, up more than three-fold year over year, driven by higher business volumes. The combined ratio improved 870 bps year over year to 85.8, driven by a lower underlying combined ratio and catastrophe losses.
The Progressive Corporation’s (PGR - Free Report) fourth-quarter 2023 earnings per share of $2.96 beat the Zacks Consensus Estimate of $2.38. The bottom line improved 97.3% year over year. Operating revenues of $16.6 billion beat the Zacks Consensus Estimate by 3% and increased 23.2% year over year.
Net premiums written were $15.1 billion in the quarter, up 21% from $12.5 billion a year ago. PGR’s premiums beat our estimate of $14 billion. Net premiums earned grew 22% to $15.8 billion and beat our estimate of $14.8 billion.
Progressive’s combined ratio improved 520 bps from the prior-year quarter’s level to 88.7.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2023 operating income of $1.45 per share beat the Zacks Consensus Estimate of $1.35 by 7.4%. The bottom line improved 25% year over year. Operating revenues came in at $3.2 billion, up 9.3% year over year, on the back of higher net premiums earned as well as improved net investment income. The top line beat the consensus estimate by 1.3%
W.R. Berkley’s net premiums written were $2.7 billion, up 12% year over year. The figure was lower than our estimate of $2.8 billion. Pre-tax underwriting income increased 8.2% to $315.9 million. The consolidated combined ratio remained flat year over year at 88.4.