Fidelity National Financial NYSE: FNF reported higher second-quarter earnings as strength in its Title segment, including commercial activity and improved margins, offset a still-muted residential housing transaction environment.
The company reported net earnings of $288 million for the quarter, including $333 million of net recognized gains, compared with net earnings of $278 million, including $98 million of net recognized gains, a year earlier. Adjusted net earnings increased to $370 million, or $1.39 per diluted share, from $318 million, or $1.16 per share, in the second quarter of 2025.
Total revenue was $4.1 billion. Excluding net recognized gains and losses, revenue was $3.7 billion, compared with $3.5 billion in the prior-year quarter.
Title segment posts margin expansion
Chief Executive Officer Mike Nolan said the Title business generated adjusted pretax earnings of $448 million, up 33% from the second quarter of 2025. Its adjusted pretax margin rose 230 basis points year over year to 17.8%.
The Title segment produced $2.5 billion in revenue excluding $14 million of net recognized gains, compared with $2.2 billion a year earlier. Direct premiums rose 21%, agency premiums increased 15%, and escrow, title-related and other fees grew 13%.
Chief Financial Officer Tony Park said direct operations generated a margin of slightly more than 26%, up roughly 80 basis points from a year earlier. The agency business had an 8% margin on gross agency dollars, while national commercial units generated a margin just below 30%. Home warranty recorded an 18% margin, and ServiceLink reported a margin of about 24%.
Nolan said existing-home sales remained historically low at an annual pace of about 4 million, reflecting elevated mortgage rates and housing-market conditions. Still, daily purchase orders opened rose 3% year over year and 7% sequentially during the second quarter. July daily purchase orders were 4% above the prior-year month.
Refinance orders opened averaged 1,600 per day in the second quarter, up from 1,300 a year earlier but down from 2,000 in the first quarter. Refinancing represented 7% of direct revenue during the period. July refinance orders averaged 1,500 per day, up 15% year over year, despite higher mortgage rates.
Commercial activity supports revenue growth
Commercial revenue continued to be a key contributor. Direct commercial revenue reached $778 million in the first six months of 2026, up 24% from $626 million in the first half of 2025. Total commercial orders opened averaged 919 per day in the second quarter, up 7% from a year earlier.
Nolan said the company was on track for a “very strong and potentially record year” in commercial business. He cited a pipeline spanning industrial properties, data centers, multifamily projects, affordable housing, retail and energy. The company closed 29 transactions that each generated more than $1 million in premiums during the quarter across its direct and agency businesses.
Management also pointed to what it described as an early and fragmented recovery in office real estate. Nolan said a return to more normal transaction levels in central business districts, including markets such as New York, could become a meaningful commercial tailwind, although he did not quantify the potential impact.
Total orders opened averaged 6,200 per day during the quarter. In July, total orders averaged 5,900 per day, up 7% from a year earlier.
Recruiting and acquisitions may pressure second-half margins
While FNF expects commercial momentum to continue, Nolan said the company remains cautious about residential purchase and refinance activity through the rest of the year. He also said Title margins could experience modest compression in the second half relative to the second quarter.
That pressure is expected to reflect increased spending on recruiting and tuck-in acquisitions. Nolan said FNF’s recruiting performance over the past two quarters has been its strongest to date, while acquisitions completed in July will add more than 200 employees. Such investments bring expenses immediately, while revenue generally takes several months to reach full productivity, he said.
In response to an analyst question, Nolan said acquisitions and recruiting efforts have extended across multiple regions, including Texas and markets in the East, with activity weighted more toward residential business than commercial. He said the company generally pays valuations of four to six times pretax profit for acquisitions.
The company continues to invest in technology and artificial intelligence. Its inHere digital transaction platform engaged 80% of FNF’s residential sale transactions in both the first half of 2026 and throughout 2025. Nolan said the company has not quantified a per-file cost or cycle-time benefit, but believes the platform improves workflow efficiency, customer visibility and fraud prevention.
FNF also launched a complimentary property-monitoring service in 35 states during the second quarter. Nolan said the service is intended as a customer value-add rather than a direct margin driver.
F&G assets approach $75 billion
FNF’s F&G segment reported assets under management before reinsurance of $74.7 billion at June 30, up 8% from a year earlier. Retained assets under management totaled $55.9 billion.
F&G generated gross sales of $2.7 billion during the quarter, including $2 billion of core sales and $700 million of opportunistic sales. Core retail sales of indexed annuities and indexed life products were $1.8 billion, while pension-risk-transfer sales were $200 million. Net sales were $1.5 billion.
Adjusted net earnings attributable to FNF from F&G were $65 million, compared with $89 million in the prior-year quarter, reflecting FNF’s approximate 72% ownership stake versus approximately 82% a year earlier. In the first six months, F&G contributed 23% of FNF adjusted net earnings, down from 32% in the comparable 2025 period.
Nolan also highlighted F&G’s leadership transition, with Conor Murphy becoming CEO and president and Michael Bailey joining as chief financial officer. F&G is exploring strategic alternatives for Peak Altitude, an owned-distribution business. Murphy said a transaction involving a partner taking a 51% stake was the option favored at this early stage, allowing continued expansion of the underlying business.
During the quarter, FNF returned about $195 million to shareholders through $138 million of common dividends and $57 million of share repurchases. The company ended the quarter with $457 million of cash and short-term liquid investments at the holding company.
About Fidelity National Financial (NYSE:FNF)
Fidelity National Financial NYSE: FNF is a leading provider of title insurance and transaction services to the real estate and mortgage industries. The company underwrites title insurance policies that protect property owners and lenders against title defects, liens, and other encumbrances. Alongside its core title insurance operations, FNF offers escrow and closing services, e-recording solutions, and real estate data and analytics through a network of agents and underwriters.
FNF operates through two primary segments: Title Insurance and Specialty Insurance and Services.
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