FNF Q3 2026 Earnings: Title Growth Offset by Lower F&G Adjusted Profit

Fidelity National Financial (NYSE: FNF) reported Q3 2026 revenue of $3.578 billion, down about 11% from $4.030 billion a year earlier, while diluted EPS rose to $2.37 from $1.33. The EPS increase reflected favorable mark-to-market movements at F&G, but adjusted diluted EPS fell to $1.32 from $1.63 as F&G’s adjusted contribution declined and FNF’s ownership stake decreased to approximately 72% from 82%.

Core Financial Results

Consolidated revenue fell even though Title segment revenue increased to $2.444 billion from $2.265 billion. The main offset came from F&G, where segment revenue decreased to $1.131 billion from $1.694 billion; insurance-related revenue and expenses include market-sensitive accounting movements that can obscure underlying operating trends.

GAAP pre-tax and net earnings increased sharply, while adjusted net earnings declined. Comparing both measures is therefore important for evaluating the quarter.

Adjusted figures are non-GAAP measures. Percentage changes are approximate.

Business and Segment Performance

The Title business generated revenue and adjusted pre-tax earnings growth, while F&G increased AUM but recorded substantially lower opportunistic and net sales. The segment comparison shows the main areas of divergence.

Commercial Activity Drove Title Growth

Title revenue excluding recognized gains and losses rose 7% to $2.5 billion. Direct title premiums increased 11% to $755 million, agency title premiums grew 3% to $915 million, and commercial revenue rose 19%.

Commercial revenue growth substantially exceeded the 2% increase in opened commercial orders and 4% increase in closed commercial orders. Total commercial fee per file increased to $14,500 from $12,600, helping explain the stronger revenue growth relative to transaction volume.

The broader order picture remained mixed. Total opened orders were 368,000 versus 370,000, while closed orders rose to 260,000 from 250,000. On a daily basis, purchase orders opened and closed increased 3% and 2%, respectively; refinance orders opened fell 11%, although refinance orders closed rose 8%. Despite higher revenue and adjusted pre-tax earnings, the adjusted Title margin declined by 0.7 percentage points.

F&G Shifted Away From Lower-Return Opportunistic Sales

F&G’s core sales increased approximately 5%, led by indexed annuity sales of $2.143 billion versus $1.665 billion. Core retail sales reached a record $2.1 billion, according to the company.

The decline in total sales came primarily from opportunistic products. Multiyear guaranteed annuity sales fell to $73 million from $969 million, while funding agreement sales decreased to $570 million from $1.025 billion. Management said it had de-emphasized multiyear guaranteed annuities because available returns were below its threshold, reflecting a decision to prioritize pricing and capital discipline over volume.

Sales transferred through flow reinsurance increased to $1.595 billion from $1.438 billion, contributing to the decline in net sales. Although AUM before reinsurance grew 7%, retained AUM was slightly lower at $56.2 billion versus $56.6 billion.

Market-Related Gains Lifted GAAP Earnings While Adjusted Profit Fell

F&G reported GAAP net earnings attributable to common shareholders of $535 million, up from $98 million, primarily because the current quarter included favorable mark-to-market movements while the prior-year quarter included unfavorable movements. Its adjusted contribution, however, fell to $72 million from $139 million.

At the consolidated level, GAAP results also benefited from large insurance accounting movements. Benefits and other policy reserve changes declined to $26 million from $1.181 billion, while the market risk benefit line recorded a $167 million gain compared with a $43 million loss in the prior-year quarter. These effects helped lift pre-tax earnings despite lower revenue but are removed or normalized in FNF’s adjusted measures.

Most of the $87 million decline in consolidated adjusted net earnings came from F&G’s $67 million lower contribution. In addition to FNF’s reduced ownership stake following the year-end stock distribution, F&G cited lower product margin following the F&G Life Re sale, lower surrender-charge fee income, and higher other liability costs, including increased amortization. These pressures were partly offset by flow-reinsurance fees, owned-distribution margin, and expense management. Alternative investment income was unchanged at $43 million and remained below management’s long-term return expectation.

Capital Returns and Balance Sheet

FNF returned approximately $143 million to shareholders during the quarter, consisting of $138 million in common dividends and $5 million in share repurchases. For the first nine months of 2026, capital returns totaled $561 million, including $417 million of dividends and $144 million of repurchases.

The company ended the quarter with $545 million in cash and short-term liquid investments at the holding company. Total assets were $114.692 billion at September 30, 2026, compared with $109.014 billion at the end of 2025, while notes payable were nearly unchanged at $4.380 billion. Total equity including noncontrolling interests declined to $8.661 billion from $8.972 billion, as the accumulated other comprehensive loss widened.

Management View

Chairman William Foley emphasized the Title segment’s expense discipline and commercial performance despite continued pressure on residential transaction volumes. He also pointed to F&G’s record AUM before reinsurance and record core retail sales as evidence of momentum in its retail franchise.

Title CEO Mike Nolan said the company remained focused on operating discipline while investing in identity verification, property monitoring, digital transaction tools, and AI. F&G CEO Conor Murphy highlighted the company’s effort to expand fee-based, higher-margin, and less capital-intensive earnings while maintaining pricing discipline in its spread-based business.

Investor Risks to Watch

• Residential transaction activity remains constrained. Total opened orders were nearly flat, and refinance orders opened declined 11% on a daily basis. Continued weakness could limit Title revenue growth.
• Title margin did not keep pace with revenue. The adjusted pre-tax margin declined to 17.1% from 17.8% even as revenue and adjusted pre-tax earnings increased.
• F&G’s sales and adjusted earnings weakened. Gross sales fell 29%, net sales declined 50%, and adjusted segment earnings attributable to FNF decreased to $72 million. Lower opportunistic volumes, product-margin pressure, and higher liability costs could continue to affect results.
• Reported earnings remain sensitive to market accounting. Favorable mark-to-market and insurance liability movements drove a large gap between GAAP and adjusted earnings, making headline profit less representative of underlying operating performance.
• FNF now receives a smaller share of F&G’s earnings. Its ownership stake fell to approximately 72% from 82% following the stock distribution, reducing the contribution retained by FNF shareholders.

Summary

FNF’s Q3 2026 results combined improving Title revenue and commercial activity with weaker adjusted profitability at F&G. Favorable market-related accounting drove the increase in GAAP earnings, while adjusted results showed pressure from F&G’s lower ownership contribution, product-margin changes, and higher liability costs. The main areas to monitor are Title order activity and margin, F&G’s retained AUM and sales mix, and whether core retail growth translates into stronger adjusted earnings.