Fidelity National Financial (NYSE:FNF) reported higher third-quarter title earnings and a record quarter for core retail sales at its F&G segment, even as adjusted earnings declined and elevated mortgage rates weighed on residential transaction activity.
The company generated $3.6 billion in total revenue for the third quarter of 2026. Excluding net recognized gains and losses, revenue was $3.5 billion, down from $3.9 billion a year earlier, Chief Financial Officer Tony Park said on the earnings call.
Net earnings rose to $633 million from $358 million in the prior-year quarter. Adjusted net earnings fell to $352 million, or $1.32 per diluted share, from $439 million, or $1.63 per share. The F&G segment’s contribution declined as Fidelity National Financial’s ownership stake fell and following the sale of F&G Life Re.
Title Earnings Rise Despite Margin Pressure
The title segment posted $422 million in adjusted pretax earnings, up 3% from a year earlier, on $2.5 billion in revenue excluding net recognized losses. Its adjusted pretax margin narrowed to 17.1% from 17.8% in both the prior-year and preceding quarters.
Chief Executive Officer Mike Nolan attributed the sequential margin compression in part to recruiting and acquisitions, whose expenses tend to precede their revenue contribution. He said the year-over-year comparison also reflected favorable one-time items in 2025 and continued technology spending.
Direct premiums increased 11% year over year, while agency premiums rose 3% and escrow, title-related and other fees climbed 10%. Personnel costs increased 10%, and other operating expenses rose 13%, Park said.
Nolan said the company added approximately 300 people through an agency acquisition and recruiting in the third quarter. Although those additions can pressure margins initially, he expects recruiting and acquisitions to enhance margins as employees reach full productivity. The company also reported a net increase of 100 in title direct staffing during the quarter, with some staff reductions already underway.
For the fourth quarter, Nolan said the company expects its adjusted pretax title margin to move toward the lower end of its normal 15% to 20% range, all else being equal. He cited seasonal patterns and the effect of elevated mortgage rates on purchase and refinance volumes.
Commercial Business Offsets Residential Slowdown
Daily purchase orders opened rose 3% from a year earlier in the third quarter but fell 6% year over year in October. Refinance orders opened averaged 1,400 per day during the quarter, down 11% from a year earlier, and fell 35% year over year in October. Refinancing accounted for 6% of direct revenue in the third quarter, Nolan said.
Commercial activity provided a counterweight. Direct commercial revenue reached $1.2 billion in the first nine months of 2026, up 22% from the comparable period in 2025. Nolan said the commercial business was on pace for a record year and that its pipeline remained broad across asset classes, including industrial properties, data centers, multifamily housing, retail and energy.
The company closed 24 commercial transactions that each generated more than $1 million in premiums during the third quarter across its direct and agency businesses. Nolan said some data center transactions completed between 2022 and 2024 had already been refinanced, creating an additional source of demand.
Overall orders opened averaged 5,800 per day in the third quarter. That figure fell to 4,700 in October, down 17% from a year earlier. Nolan said he expects commercial activity to remain strong in 2027, while adding that the company would adjust its operations if the market weakened.
F&G Sales and Capital Allocation
F&G’s assets under management before reinsurance rose 7% year over year to $76.2 billion at Sept. 30. Third-quarter gross sales totaled $3 billion, including a record $2.1 billion in core retail sales, while net sales were $1.4 billion.
F&G contributed $72 million to Fidelity National Financial’s adjusted net earnings, down from $139 million a year earlier. Park said the comparison reflected Fidelity National Financial’s approximately 72% ownership stake, versus approximately 82% a year earlier, as well as the sale of F&G Life Re in March.
F&G Chief Financial Officer Mike Bailey said the business expects high-single-digit growth in gross assets under management and low-single-digit growth on a net basis. He said flow reinsurance remains part of its capital-light, fee-based strategy.
Fidelity National Financial returned approximately $143 million to shareholders in the third quarter, including $5 million in share repurchases. Park said repurchases were limited because the company was in a closed trading window for much of the quarter. He added that the company would expect to be aggressive with buybacks once the blackout is lifted.
The holding company ended the quarter with $545 million in cash and short-term liquid investments, compared with $659 million at the end of 2025. In the first nine months of 2026, it spent $417 million on common dividends, $144 million on repurchases and approximately $60 million on tuck-in and other title-related acquisitions.
About Fidelity National Financial (NYSE:FNF)
Fidelity National Financial, Inc (NYSE:FNF) is a provider of title insurance and transaction services in the United States. Through its title insurance businesses, the company protects property buyers, lenders and other parties against certain risks associated with real estate ownership and transfers. Its services include title searches, title examinations, escrow and closing services, and related technology and transaction-support solutions.
FNF operates through a group of title insurance brands, including Fidelity National Title, Chicago Title, Commonwealth Land Title and Alamo Title.
