FNF Group Reports Second Quarter 2016 Diluted EPS of $0.67 and Adjusted Diluted EPS of $0.74, Pre-Tax Title Margin of 15.4% and Adjusted Pre-Tax Title Margin of 16.5%

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Jul 20, 2016, 04:15 ET

JACKSONVILLE, Fla., July 20, 2016 /PRNewswire/ -- Fidelity National Financial, Inc. today reported the operating results of FNF Group (NYSE:FNF), a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries, for the three and six-month periods ended June 30, 2016.

Total revenue of approximately $2.1 billion in the second quarter versus $2.0 billion in the second quarter of 2015
Second quarter net earnings of $187 million and adjusted net earnings of $207 million versus net earnings of $160 million and adjusted net earnings of $187 million for the second quarter of 2015
Second quarter diluted EPS of $0.67 and adjusted diluted EPS of $0.74 versus diluted EPS of $0.56 and adjusted diluted EPS of $0.65 in the second quarter of 2015
Second quarter net cash flow provided by operations of $277 million and free cash flow provided of $165 million versus net cash flow provided by operations of $350 million and free cash flow provided of $309 million in the second quarter of 2015
Repurchased nearly 2.5 million shares of FNF common stock for more than $84 million in the second quarter

Title

Approximately $1.8 billion in total revenue versus approximately $1.7 billion in total revenue in the second quarter of 2015
Pre-tax earnings of $281 million and adjusted pre-tax earnings of $300 million versus pre-tax earnings of $261 million and adjusted pre-tax earnings of $283 million in the second quarter of 2015
Pre-tax title margin of 15.4% and adjusted pre-tax title margin of 16.5% versus pre-tax title margin of 15.3% and adjusted pre-tax title margin of 16.5% in the second quarter of 2015
ServiceLink generated $203 million in revenue, adjusted pre-tax earnings of $26 million and an adjusted pre-tax margin of 12.8% for the second quarter
Open orders per day of 9,016 for the second quarter versus 8,750 open orders per day for the second quarter of 2015
Closed orders per day of 6,266 for the second quarter versus 6,375 closed orders per day for the second quarter of 2015
Second quarter purchase orders opened and closed increased by 4% and 6%, respectively, versus the second quarter of 2015; for FNTG only (excluding ServiceLink), purchase orders opened and closed increased by 5% and 6%, respectively versus the second quarter of 2015
Total commercial revenue of $244 million, a 5% decrease from total commercial revenue in the second quarter of 2015, driven by a 4% increase in closed orders and a 9% decrease in total commercial fee per file; second quarter total commercial open orders decreased by 2%; second quarter national commercial title revenue of $144 million, a 4% decrease from the second quarter of 2015, driven by a 3% improvement in the national commercial fee per file and a 7% decrease in closed orders; second quarter national commercial open orders declined by 4%
Overall second quarter average fee per file of $2,116, a 4% increase versus the second quarter of 2015
Title claims paid of $73 million, a increase of $3 million, or 4%, from the second quarter of 2015

Title Orders

		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)			/ (% Purchase)
April 2016		187,000	57%		127,000	56%
May 2016		189,000	58%		132,000	58%
June 2016		201,000	54%		142,000	59%

Second Quarter 2016		577,000	57%		401,000	58%


		Direct Orders Opened *			Direct Orders Closed *
Month	/ (% Purchase)				/ (% Purchase)
April 2015		202,000	53%		138,000	51%
May 2015		174,000	58%		129,000	54%
June 2015		184,000	61%		141,000	57%

Second Quarter 2015		560,000	57%		408,000	54%

* Includes an immaterial number of non-purchase and non-refinance orders

	Open		Closed		Commercial
	Commercial		Commercial		Revenue		Commercial
	Orders		Orders		(In millions)		Fee Per File
Second Quarter 2016 - Total Commercial		49,900		33,600		$244		$7,300
Second Quarter 2015 - Total Commercial		50,800		32,400		$258		$8,000

Second Quarter 2016 - National Commercial		20,300		11,600		$144		$12,400
Second Quarter 2015 - National Commercial		21,200		12,500		$150		$12,000

BKFS

Revenue of $256 million, led by Servicing Technology revenue of approximately $172 million
Pre-tax earnings of $41 million, a 78% increase over the second quarter of 2015
Adjusted EBITDA of $114 million, a $12 million, or 12% increase, over the second quarter of 2015 and an adjusted EBITDA margin of 45.2%, and a 170 basis point increase over the second quarter of 2015

"This quarter clearly highlights the earnings power of our title insurance business," said Chairman William P. Foley, II. "We experienced continued mid-single digit growth in the purchase market, a slight decline in commercial revenue and lower refinance closings, yet we still were able to generate a 16.5% adjusted pre-tax title margin. With the decline in interest rates in late June, we have already begun to see a meaningful increase in refinance openings in the last three weeks, which bodes well for improved third quarter refinance closings. As we enter the second half of 2016, we will continue to strive to maximize earnings from our operations and remain the most profitable title insurance company in the country.

"Black Knight continued its strong financial performance this quarter, generating revenue of $256 million and adjusted EBITDA of $114 million, for a 45.2% adjusted EBITDA margin. FNF's Black Knight ownership stake is currently worth approximately $3.2 billion, or more than $11 per FNF share."

Conference Call
We will host a call with investors and analysts to discuss second quarter 2016 FNF Group results on Thursday, July 21, 2016, beginning at 10:30 a.m. Eastern Time. A live webcast of the conference call will be available on the Events and Multimedia page of the FNF Investor Relations website at www.fnf.com. The conference call replay will be available via webcast through the FNF Investor Relations website at www.fnf.com. The telephone replay will be available from 12:30 p.m. Eastern time on July 21, 2016, through July 28, 2016, by dialing 800-475-6701 (USA) or 320-365-3844 (International). The access code will be 396730.

About Fidelity National Financial, Inc.
Fidelity National Financial, Inc. is organized into two groups, FNF Group (NYSE: FNF) and FNFV Group (NYSE: FNFV). FNF is a leading provider of title insurance, technology and transaction services to the real estate and mortgage industries. FNF is the nation's largest title insurance company through its title insurance underwriters - Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York - that collectively issue more title insurance policies than any other title company in the United States. FNF also provides industry-leading mortgage technology solutions and transaction services, including MSP®, the leading residential mortgage servicing technology platform in the U.S., through its majority-owned subsidiaries, Black Knight Financial Services, Inc. and ServiceLink Holdings, LLC. FNFV holds majority and minority equity investment stakes in a number of entities, including American Blue Ribbon Holdings, LLC, Ceridian HCM, Inc., Digital Insurance, Inc. and Del Frisco's Restaurant Group, Inc. More information about FNF and FNFV can be found at www.fnf.com.

Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the Company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. These non-GAAP measures include earnings before interest, taxes and depreciation and amortization (EBITDA), adjusted earnings before interest, taxes and depreciation and amortization (Adjusted EBITDA), adjusted earnings before interest, taxes and depreciation as a percent of adjusted revenue (Adjusted EBITDA margin), adjusted net earnings, adjusted EPS and free cash flow.

Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP net earnings. Further, FNF's non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures are provided below.

Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries.

This press release should be read in conjunction with the press release filed for the results of FNFV on this same date as well as the risks detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-Q, 10-K and other filings with the Securities and Exchange Commission.

FNF-E

FNF GROUP SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Three Months Ended*	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*June 30, 2016*
Direct title premiums	$	540		$	540		$	—		$	—
Agency title premiums	691			691			—			—
Escrow, title related and other fees (1)	867			552			256			59
Total title and escrow	2,098			1,783			256			59

Interest and investment income	36			36			—			—
Realized gains and losses, net	—			3			—			(3)
Total revenue	2,134			1,822			256			56

Personnel costs	667			557			95			15
Agent commissions	526			526			—			—
Other operating expenses	465			354			55			56
Depreciation and amortization	87			36			49			2
Claim loss expense	68			68			—			—
Interest expense	32			—			16			16
Total expenses	1,845			1,541			215			89

Pre-tax earnings (loss) from continuing operations	$	289		$	281		$	41		$	(33)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	—			(3)			—			3
Deferred revenue add back and management fee	3			1			2			—
Purchase price amortization	42			21			20			1
M&A costs	1			—			1			—
Other legal accruals	5			—			5			—
Total non-GAAP adjustments before taxes	$	51		$	19		$	28		$	4

Adjusted pre-tax earnings (loss) from continuing ops.	$	340		$	300		$	69		$	(29)
Adjusted pre-tax margin from continuing operations	15.9		%	16.5		%	26.7		%	—

Purchase price amortization	(42)			(21)			(20)			(1)
Depreciation and amortization	87			36			49			2
Interest expense	32			—			16			16

Adjusted EBITDA	$	417		$	315		$	114		$	(12)
Adjusted EBITDA margin	19.5		%	17.3		%	45.2		%	—

ServiceLink non-GAAP reconciliations:
ServiceLink pre-tax earnings	$	6
Purchase price amortization	17
Management fee / other expenses	3
ServiceLink adjusted pre-tax earnings	$	26

1. BKFS also reported adjusted revenue of $258 million, which includes $2 million of deferred revenue

FNF GROUP SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Three Months Ended*	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*June 30, 2016*
Pre-tax earnings (loss) from continuing operations	$	289	$	281	$	41	$	(33)
Income tax expense (benefit)	98		106		14		(22)
Earnings from equity investments	3		3		—		—
Non-controlling interests	7		(4)		12		(1)

Net earnings (loss) attributable to FNF Group common shareholders	$	187	$	182	$	15	$	(10)

EPS attributable to FNF Group common shareholders - basic	$	0.69	$	0.67	$	0.06	$	(0.04)
EPS attributable to FNF Group common shareholders - diluted	$	0.67	$	0.65	$	0.06	$	(0.04)

FNF Group weighted average shares - basic	272
FNF Group weighted average shares - diluted	281

Net earnings (loss) attributable to FNF Group common shareholders	$	187	$	182	$	15	$	(10)

Total non-GAAP, pre-tax adjustments	$	51	$	19	$	28	$	4
Income taxes on non-GAAP adjustments	(20)		(7)		(11)		(2)
Noncontrolling interest on non-GAAP adjustments	(11)		(3)		(8)		—
Total non-GAAP adjustments	$	20	$	9	$	9	$	2

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	207	$	191	$	24	$	(8)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.74	$	0.68	$	0.09	$	(0.03)

Direct orders opened (000's)	577		577
Direct orders closed (000's)	401		401
Fee per file	$	2,116	$	2,116
Actual title claims paid	$	73	$	73

Cash flows provided by operations:	$	277
Non-GAAP adjustments:
THL management fee	1
M&A costs	1
Total non-GAAP adjustments	2

Adjusted cash flows from operations	279
Capital expenditures	114
Free cash flow	$	165

FNF GROUP SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Three Months Ended*	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*June 30, 2015*
Direct title premiums	$	547		$	547		$	—		$	—
Agency title premiums	597			597			—			—
Escrow, title related and other fees (1)	827			535			232			60
Total title and escrow	1,971			1,679			232			60

Interest and investment income	32			32			—			—
Realized gains and losses, net	(8)			—			(5)			(3)
Total revenue	1,995			1,711			227			57

Personnel costs	652			540			102			10
Agent commissions	451			451			—			—
Other operating expenses	453			355			41			57
Depreciation and amortization	87			35			50			2
Claim loss expense	69			69			—			—
Interest expense	31			—			11			20
Total expenses	1,743			1,450			204			89

Pre-tax earnings (loss) from continuing operations	$	252		$	261		$	23		$	(32)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	8			—			5			3
Deferred revenue add back and management fee	4			1			3			—
Purchase price amortization	44			21			23			—
IPO costs and profits interest acceleration	10			—			10			—
Total non-GAAP adjustments before taxes	$	66		$	22		$	41		$	3

Adjusted pre-tax earnings (loss) from continuing operations	$	318		$	283		$	64		$	(29)
Adjusted pre-tax margin from continuing operations	15.9		%	16.5		%	27.2		%	—

Purchase price amortization	(44)			(21)			(23)			—
Depreciation and amortization	87			35			50			2
Interest expense	31			—			11			20

Adjusted EBITDA	$	392		$	297		$	102		$	(7)
Adjusted EBITDA margin	19.5		%	17.4		%	43.5		%	—

1. BKFS also reported adjusted revenue of $235 million, which includes $3 million of deferred revenue

FNF GROUP SECOND QUARTER SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Three Months Ended*	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*June 30, 2015*
Pre-tax earnings (loss) from continuing operations	$	252	$	261	$	23	$	(32)

Income tax expense	95		96		—		(1)
Non-controlling interests	(3)		(6)		2		1

Net earnings (loss) attributable to FNF Group common shareholders	$	160	$	171	$	21	$	(32)

EPS attributable to FNF Group common shareholders - basic	$	0.57	$	0.61	$	0.08	$	(0.12)
EPS attributable to FNF Group common shareholders - diluted	$	0.56	$	0.61	$	0.07	$	(0.12)

FNF Group weighted average shares - basic	279
FNF Group weighted average shares - diluted	287

Net earnings (loss) attributable to FNF Group common shareholders	$	160	$	171	$	21	$	(32)

Total non-GAAP, pre-tax adjustments	$	66	$	22	$	41	$	3
Income taxes on non-GAAP adjustments	(16)		(5)		(9)		(2)
Noncontrolling interest on non-GAAP adjustments	(23)		(7)		(16)		—
Total non-GAAP adjustments	$	27	$	10	$	16	$	1

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	187	$	181	$	37	$	(31)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	0.65	$	0.64	$	0.13	$	(0.12)

Direct orders opened (000's)	560		560
Direct orders closed (000's)	408		408
Fee per file	$	2,026	$	2,026
Actual title claims paid	$	70	$	70

Cash flows provided by operations:	$	350
Non-GAAP adjustments:
THL management fee	1
IPO costs	4
Total non-GAAP adjustments	5

Adjusted cash flows from operations	355
Capital expenditures	46
Free cash flow	$	309

FNF GROUP YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Six Months Ended*	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*June 30, 2016*	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
Direct title premiums	$	962		$	962		$	—		$	—
Agency title premiums	1,221			1,221			—			—
Escrow, title related and other fees (1)	1,608			1,018			498			92
Total title and escrow	3,791			3,201			498			92

Interest and investment income	65			65			—			—
Realized gains and losses, net	(3)			3			—			(6)
Total revenue	3,853			3,269			498			86

Personnel costs	1,281			1,063			191			27
Agent commissions	928			928			—			—
Other operating expenses	870			685			96			89
Depreciation and amortization	172			71			97			4
Claim loss expense	120			120			—			—
Interest expense	63			—			32			31
Total expenses	3,434			2,867			416			151

Pre-tax earnings (loss) from continuing operations	$	419		$	402		$	82		$	(65)

Non-GAAP adjustments before taxes
Realized (gains) and losses, net	3			(3)			—			6
Deferred revenue add back and management fee	5			1			4			—
Purchase price amortization	83			42			40			1
M&A costs	1			—			1			—
Other legal accruals	5			—			5			—
Total non-GAAP adjustments before taxes	$	97		$	40		$	50		$	7

Adjusted pre-tax earnings (loss) from continuing operations	$	516		$	442		$	132		$	(58)
Adjusted pre-tax margin from continuing operations	13.4		%	13.5		%	26.3		%	—

Purchase price amortization	(83)			(42)			(40)			(1)
Depreciation and amortization	172			71			97			4
Interest expense	63			—			32			31

Adjusted EBITDA	$	668		$	471		$	221		$	(24)
Adjusted EBITDA margin	17.3		%	14.4		%	45.2		%	—

1. BKFS also reported adjusted revenue of $502 million, which includes $4 million of deferred revenue

FNF GROUP YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Six Months Ended*	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*June 30, 2016*
Pre-tax earnings (loss) from continuing operations	$	419	$	402	$	82	$	(65)

Income tax expense (benefit)	148		151		28		(31)
Earnings from equity investments	6		6		—		—
Non-controlling interests	17		(6)		24		(1)

Net earnings (loss) attributable to FNF Group common shareholders	$	260	$	263	$	30	$	(33)

EPS attributable to FNF Group common shareholders - basic	$	0.95	$	0.96	$	0.11	$	(0.12)
EPS attributable to FNF Group common shareholders - diluted	$	0.93	$	0.94	$	0.11	$	(0.12)

FNF Group weighted average shares - basic	273
FNF Group weighted average shares - diluted	281

Net earnings (loss) attributable to FNF Group common shareholders	$	260	$	263	$	30	$	(33)

Total non-GAAP, pre-tax adjustments	$	97	$	40	$	50	$	7
Income taxes on non-GAAP adjustments	(35)		(13)		(19)		(3)
Noncontrolling interest on non-GAAP adjustments	(21)		(7)		(14)		—
Total non-GAAP adjustments	$	41	$	20	$	17	$	4

Adjusted net earnings (loss) attributable to FNF Group common shareholders	$	301	$	283	$	47	$	(29)

Adjusted EPS attributable to FNF Group common shareholders - diluted	$	1.07	$	1.01	$	0.17	$	(0.11)

Direct orders opened (000's)	1,094		1,094
Direct orders closed (000's)	723		723
Fee per file	$	2,079	$	2,079
Actual title claims paid	$	113	$	113

Cash flows provided by operations:	$	349
Non-GAAP adjustments:
THL management fee	1
M&A costs	1
Total non-GAAP adjustments	2

Adjusted cash flows from operations	351
Capital expenditures	152
Free cash flow	$	199

FNF GROUP YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Six Months Ended*	Total FNF Group			Title			BKFS			FNF Group Corporate and Other
*June 30, 2015*
Direct title premiums	$	964		$	964		$	—		$	—
Agency title premiums	1,038			1,038			—			—
Escrow, title related and other fees (1)	1,522			985			459			78
Total title and escrow	3,524			2,987			459			78

Interest and investment income	62			62			—			—
Realized gains and losses, net	(8)			—			(5)			(3)
Total revenue	3,578			3,049			454			75

Personnel costs	1,237			1,020			199			18
Agent commissions	784			784			—			—
Other operating expenses	825			672			78			75
Depreciation and amortization	170			72			95			3
Claim loss expense	120			120			—			—
Interest expense	60			—			19			41
Total expenses	3,196			2,668			391			137

Pre-tax earnings (loss) from continuing operations	$	382		$	381		$	63		$	(62)

Non-GAAP adjustments before taxes
Realized (gain) loss, net adjustment	8			—			5			3
Deferred revenue add back and management fee	7			1			6			—
Purchase price amortization	87			42			44			1
IPO costs & profits interest acceleration	10			—			10			—
Total non-GAAP adjustments before taxes	$	112		$	43		$	65		$	4

Adjusted pre-tax earnings (loss) from continuing operations	$	494		$	424		$	128		$	(58)
Adjusted pre-tax margin from continuing operations	13.8		%	13.9		%	27.6		%	—

Purchase price amortization	(87)			(42)			(44)			(1)
Depreciation and amortization	170			72			95			3
Interest expense	60			—			19			41

Adjusted EBITDA	$	637		$	454		$	198		$	(15)
Adjusted EBITDA margin	17.7		%	14.9		%	43.1		%	—

1. BKFS also reported adjusted revenue of $464, which includes $5 million of deferred revenue

FNF GROUP YTD SEGMENT INFORMATION (In millions, except order information in thousands) (Unaudited)

*Six Months Ended*	Total FNF Group		Title		BKFS		FNF Group Corporate and Other
*June 30, 2015*
Pre-tax earnings (loss) from continuing operations	$	382	$	381	$	63	$	(62)

Income tax expense	142		139		—		3
Earnings from equity investments	2		2		—		—
Non-controlling interests	(4)		(11)		7		—

Net earnings (loss) attributable to FNF Group common shareholders	$	246	$	255	$	56	$	(65)

EPS attributable to FNF Group common shareholders - basic	$	0.88	$	0.92	$	0.20	$	(0.24)
EPS attributable to FNF Group common shareholders - diluted	$	0.86	$	0.90	$	0.20	$	(0.24)

FNF Group weighted average shares - basic	278
FNF Group weighted average shares - diluted	287

Net earnings (loss) attributable to FNF Group common shareholders	$	246	$	255	$	56	$	(65)

Total non-GAAP, pre-tax adjustments	$	112	$	43	$	65	$	4
Income taxes on non-GAAP adjustments	(28)		(11)		(15)		(2)
Noncontrolling interest on non-GAAP adjustments	(37)		(13)		(24)		—
Total non-GAAP adjustments	$	47	$	19	$	26	$	2

Adjusted net earnings (loss) attributable to FNF common shareholders	$	293	$	274	$	82	$	(63)
Adjusted EPS attributable to FNF common shareholders - diluted	$	1.02	$	0.95	$	0.29	$	(0.22)

Direct orders opened (000's)	1,137		1,137
Direct orders closed (000's)	754		754
Fee per file	$	1,938	$	1,938
Actual title claims paid	$	130	$	130

Cash flows provided by operations:	$	385
Non-GAAP adjustments:
THL management fee	2
IPO cost	4
Total non-GAAP adjustments	6

Adjusted cash flows from operations	391
Capital expenditures	80
Free cash flow	$	311

FNF GROUP QUARTERLY OPERATING STATISTICS (Unaudited)

	Q2 2016			Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014
Quarterly Open Orders ('000's except % data)
Total open orders*	577			517			441			514			560			578			452			481
Total open orders per day*	9.0			8.3			7.0			8.0			8.8			9.5			7.1			7.5
Purchase % of open orders	57		%	55		%	55		%	58		%	57		%	47		%	52		%	60		%
Refinance % of open orders	43		%	45		%	45		%	42		%	43		%	53		%	48		%	40		%
Total closed orders*	401			322			341			378			408			345			334			348
Total closed orders per day*	6.3			5.2			5.4			5.9			6.4			5.7			5.3			5.4
Purchase % of closed orders	58		%	55		%	58		%	60		%	54		%	46		%	57		%	62		%
Refinance % of closed orders	42		%	45		%	42		%	40		%	46		%	54		%	43		%	38		%

Commercial (millions, except orders in '000's)
Total commercial revenue**	$	244		$	211		$	303		$	258		$	258		$	208		$	274		$	225
Total commercial open orders**	49.9			48.5			46.3			50.3			50.8			47.8			—			—
Total commercial closed orders**	33.6			30.7			36.3			33.0			32.4			29.6			—			—

National commercial revenue	$	144		$	121		$	183		$	146		$	150		$	119		$	166		$	136
National commercial open orders	20.3			19.3			18.1			21.0			21.2			20.4			18.1			21.4
National commercial closed orders	11.6			10.6			13.4			12.2			12.5			11.1			12.7			12.8

Total Fee Per File
Fee per file	$	2,116		$	2,032		$	2,272		$	2,133		$	2,026		$	1,833		$	2,131		$	2,066
Residential and local commercial fee per file	$	1,809		$	1,713		$	1,806		$	1,805		$	1,711		$	1,538		$	1,699		$	1,739
Residential fee per file	$	1,645		$	1,522		$	1,548		$	1,589		$	1,514		$	1,346		—			—
Total commercial fee per file**	$	7,300		$	6,900		$	8,300		$	7,800		$	8,000		$	7,000		—			—
National commercial fee per file	$	12,400		$	11,400		$	13,600		$	12,000		$	12,000		$	10,700		$	13,100		$	10,600

Total Staffing
Total field operations employees	10,900			10,900			10,700			11,000			10,900			10,400			9,900			10,200

FNT Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total open orders*	484			429			360			422			458			456			354			385
Total open orders per day*	7.5			6.9			5.7			6.6			7.2			7.5			5.6			6.0
Purchase % of open orders	63		%	61		%	62		%	65		%	65		%	54		%	60		%	69		%
Refinance % of open orders	37		%	39		%	38		%	35		%	35		%	46		%	40		%	31		%
Total closed orders*	338			265			285			314			334			277			273			282
Total closed orders per day*	5.3			4.3			4.5			4.9			5.2			4.5			4.3			4.4
Purchase % of closed orders	63		%	60		%	63		%	66		%	61		%	52		%	63		%	70		%
Refinance % of closed orders	37		%	40		%	37		%	34		%	39		%	48		%	37		%	30		%
Fee per file	$	2,337		$	2,261		$	2,521		$	2,364		$	2,264		$	2,055		$	2,382		$	2,306
Total title field operations employees	9,600			9,700			9,500			9,700			9,600			9,100			8,700			8,900

ServiceLink Only Quarterly Operating Statistics ('000's except fee per file and staffing)
Total Open Orders*	93			87			81			92			102			122			98			96
Total open orders per day*	1.5			1.4			1.3			1.4			1.6			2.0			1.6			1.5
Purchase % of open orders	22		%	24		%	22		%	23		%	22		%	17		%	23		%	23		%
Refinance % of open orders	78		%	76		%	78		%	77		%	78		%	83		%	77		%	77		%
Total closed orders	63			57			56			64			74			68			61			66
Total closed orders per day*	1.0			0.9			0.9			1.0			1.2			1.1			1.0			1.0
Purchase % of closed orders	27		%	28		%	31		%	26		%	21		%	22		%	26		%	24		%
Refinance % of closed orders	73		%	72		%	69		%	74		%	79		%	78		%	74		%	76		%
Fee per file	$	940		$	972		$	1,003		$	987		$	958		$	921		$	1,027		$	1,052
Total ServiceLink operating employees	1,300			1,200			1,200			1,300			1,300			1,300			1,200			1,300

* Includes an immaterial number of non-purchase and non-refinance orders

** Total commercial order and fee per file tracking began in January 2015

FNF GROUP SUMMARY BALANCE SHEET INFORMATION (In millions)

	FNF Group June 30, 2016			FNF Group December 31, 2015
	(Unaudited)				(Unaudited)
Cash and investment portfolio		$	5,141		$	4,898
Goodwill		4,669			4,572
Title plant		395			395
Total assets		13,032			12,502
Notes payable		2,566			2,593
Reserve for title claim losses		1,590			1,583
Secured trust deposits		1,102			701
Redeemable non-controlling interests		344			344
Non-redeemable non-controlling interests		741			720
Total equity and redeemable non-controlling interests		5,954			5,849
Total equity attributable to common shareholders		4,869			4,785

FNF Group

June 30, 2016

FNFV

June 30, 2016

Consolidated

June 30, 2016

Consolidated

December 31, 2015

(Unaudited)

(Unaudited)

Cash and investment portfolio

5,141

689

5,830

5,633

Goodwill

4,669

194

4,863

4,760

Title plant

395

—

395

Total assets

13,032

1,406

14,438

13,931

Notes payable

2,566

219

2,785

2,793

Reserve for title claim losses

1,590

—

1,590

1,583

Secured trust deposits

1,102

—

1,102

701

Redeemable non-controlling interests

344

—

344

Non-redeemable non-controlling interests

741

119

860

834

Total equity and redeemable non-controlling interests

5,954

1,059

7,013

6,932

Total equity attributable to common shareholders

4,869

940

5,809

5,754

Fidelity National Financial, Inc. CONSOLIDATED SUMMARY OF EARNINGS (In millions) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2016						June 30, 2016
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	540	$	540	$	—	$	962	$	962	$	—
Agency title premiums	691		691		—		1,221		1,221		—
Total title premiums	1,231		1,231		—		2,183		2,183		—
Escrow, title-related and other fees	907		867		40		1,686		1,608		78
Total title and escrow and other	2,138		2,098		40		3,869		3,791		78

Restaurant revenue	292		—		292		585		—		585
Interest and investment income	37		36		1		67		65		2
Realized gains and losses, net	15		—		15		9		(3)		12
Total revenue	2,482		2,134		348		4,530		3,853		677

Personnel costs	707		667		40		1,359		1,281		78
Other operating expenses	493		465		28		925		870		55
Cost of restaurant revenue	245		—		245		490		—		490
Agent commissions	526		526		—		928		928		—
Depreciation and amortization	102		87		15		202		172		30
Title claim loss expense	68		68		—		120		120		—
Interest expense	33		32		1		67		63		4
Total expenses	2,174		1,845		329		4,091		3,434		657

Earnings from continuing operations before taxes	308		289		19		439		419		20
Income tax expense	101		98		3		150		148		2
Earnings from continuing operations before equity investments	207		191		16		289		271		18
(Loss) earnings from equity investments	(1)		3		(4)		1		6		(5)
Net earnings	206		194		12		290		277		13
Non-controlling interests	9		7		2		19		17		2
Net earnings attributable to common shareholders	$	197	$	187	$	10	$	271	$	260	$	11

Cash flows provided by operations	282		277		5		374		349		25

Fidelity National Financial, Inc. CONSOLIDATED SUMMARY OF EARNINGS (In millions) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2015						June 30, 2015
	Consolidated		Core		FNFV		Consolidated		Core		FNFV
Direct title premiums	$	547	$	547	$	—	$	964	$	964	$	—
Agency title premiums	597		597		—		1,038		1,038		—
Total title premiums	1,144		1,144		—		2,002		2,002		—
Escrow, title-related and other fees	857		827		30		1,665		1,522		143
Total title and escrow and other	2,001		1,971		30		3,667		3,524		143

Restaurant revenue	371		—		371		735		—		735
Interest and investment income	32		32		—		63		62		1
Realized gains and losses, net	(9)		(8)		(1)		(9)		(8)		(1)
Total revenue	2,395		1,995		400		4,456		3,578		878

Personnel costs	690		652		38		1,313		1,237		76
Other operating expenses	482		453		29		948		825		123
Cost of restaurant revenue	313		—		313		619		—		619
Agent commissions	451		451		—		784		784		—
Depreciation and amortization	104		87		17		204		170		34
Title claim loss expense	69		69		—		120		120		—
Interest expense	32		31		1		63		60		3
Total expenses	2,141		1,743		398		4,051		3,196		855

Earnings from continuing operations before taxes	254		252		2		405		382		23
Income tax expense (benefit)	88		95		(7)		138		142		(4)
Earnings from continuing operations before equity investments	166		157		9		267		240		27
Earnings from equity investments	4		—		4		3		2		1
Net earnings	170		157		13		270		242		28
Non-controlling interests	—		(3)		3		14		(4)		18
Net earnings attributable to common shareholders	$	170	$	160	$	10	$	256	$	246	$	10

Cash flows provided by operations	348		350		(2)		389		385		4