Research Update: Fidelity National Financial Inc. Ratings Affirmed Following Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The implementation of the revised capital model criteria has not impacted our view of the financial strength of Fidelity National Financial Inc. (FNF) or its operating title subsidiaries (collectively, Fidelity National). We are affirming our 'A' long-term financial strength and issuer credit ratings on Fidelity National and 'BBB' issuer credit rating on FNF. We also revised the group status of F&G Annuities&Life, Inc. (F&G) to strategically important from moderately strategic. The stable outlook reflects our expectation that the group will maintain its strong competitive position in the title business and F&G business will continue to grow. On

...Key strengths Key risks Leading position in the U.S. title insurance industry and diversified revenue through growing F&G business. Exposure to mortgage origination volatility could affect revenue and earnings. Strong capital generation from the title insurance business supports growth and business expansion at F&G. Growing investment-risk exposure relating to crediting rates needed to maintain appropriate spreads. Improving diversity allows consolidated earnings to be more resilient, whichever direction interest rates move. Evolving risk management to better monitor business structure developments due to business mix changes for the title insurance and annuity businesses....

Research Update