Fidelity's Q2 2025 Earnings Call: Contradictions in Margin Sustainability, F&G Growth, and Strategic Direction

Title Segment Performance:
- FNF's Title segment delivered adjusted pretax title earnings of $337 million, a 4% increase over the second quarter of 2024.
- The segment achieved an industry-leading adjusted pretax title margin of 15.5% for the second quarter.
- The growth was supported by a 5% increase in daily purchase orders opened over the first quarter of 2025 and a 28% increase in refinance orders opened over the second quarter of 2024.

Commercial Volume Growth:
- Direct commercial revenue reached $626 million in the first 6 months, up 23% over the same period in 2024.
- National daily orders opened were up 11% over the second quarter of 2024, and local market daily orders opened were up 4%.
- This growth was driven by strong performance in both national and local commercial markets.

FNF's Financial and Operational Performance:
- FNF generated $3.6 billion in total revenue in the second quarter, with a net earnings of $278 million.
- The F&G segment contributed 32% of FNF's adjusted net earnings in the first half of the year, down from 40% in the first half of 2024.
- The decrease was attributed to higher flow reinsurance, while F&