FNF - Fidelity National stock falls 8% after Q1 adjusted earnings miss F&G down 18%

2023-05-04 12:44:40 ET

Fidelity National Financial ( NYSE: FNF ) stock fell as much as 8.4% on Thursday after the title insurance provider's Q1 adjusted profit came in well below expectations as its Title segment's volumes continued to decline.

Q1 adj. EPS was $0.52 vs. $1.36 in Q1 2022. Revenue declined 22.1% Y/Y to $2.47B, a little ahead of the $2.45B consensus estimate. Title segment revenue dropped 33.3% Y/Y to $1.6B as market volatility and higher rates pressured mortgage volumes.

"We are seeing encouraging indications of a seasonal pattern in the residential purchase market, albeit at lower volume levels resulting from soft existing home sale activity and low refinance activity," said CEO Mike Nolan. "The underlying fundamentals of the residential housing market remain strong given pent-up demand and a growing working age population, that are expected to support a rebound once rates stabilize."

Fidelity's ( FNF ) unit F&G Annuities & Life ( FG ) stock dropped 18.1% after its Q1 adjusted earnings fell short of expectations . Gross sales rose 27% Y/Y to $3.3B, driven by record retail sales partially offset by lower institutional sales, which F&G ( FG ) expects to be "lumpier and more opportunistic" than its retail channels.

"Through Q1 and into April, policy surrenders are slightly elevated, although within our long term pricing expectations, and we experienced strong positive net inflows during the month," said F&G ( FG ) CEO Chris Blunt.

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