Market Intelligence Center  Oct 1  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Fidelity National Financial (FNF). Look at the Jan. '16 $35.00 covered call for a net debit in the $33.87 area. This trade has a...
Market Intelligence Center  Sep 30  Comment 
For a hedged play on Fidelity National Financial (FNF), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jan. '16 $34.00 covered call for a net debit in the $32.85 area. That is also the break-even stock price for the...
Market Intelligence Center  Sep 28  Comment 
After closing Friday at $36.54, Fidelity National Financial (FNF) presents an attractive opportunity to get a 3.33% return in just 81 days, which is an annualized return of 15% (for comparison purposes only). To enter this trade, sell one Dec. '15...
Market Intelligence Center  Sep 9  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Fidelity National Financial (FNF) that should provide a 3.72% return in just 100 days. Sell one Dec. '15 call at the $36.00 level for each...
newratings.com  Sep 8  Comment 
WASHINGTON (dpa-AFX) - Fidelity National Financial, Inc. (FNF) announced the appointment of Mike Nolan and Roger Jewkes as Co-Chief Operating Officers, with both continuing to report to Chief Executive Officer Randy Quirk. In addition to the...
Market Intelligence Center  Aug 25  Comment 
Fidelity National Financial (FNF) presents a trading opportunity that offers a 4.86% return in just 115 days. A covered call on Fidelity National Financial at the $36.00 level expiring on Dec. '15 offers an assigned return rate of 4.86% or...
Market Intelligence Center  Aug 11  Comment 
After closing Monday at $39.00, Fidelity National Financial (FNF) presents an attractive opportunity to get a 3.68% return in just 129 days, which is an annualized return of 10.42% (for comparison purposes only). To enter this trade, sell one Dec....
newratings.com  Jul 29  Comment 
WASHINGTON (dpa-AFX) - Fidelity National Financial, Inc. on Wednesday reported second quarter operating results of FNF Group, a provider of title insurance, technology and transaction services to the real estate and mortgage industries. FNF...
Benzinga  Jul 23  Comment 
Digital Insurance, the nation's largest employee benefits-only company and a subsidiary of Fidelity National Financial (FNF), has acquired Compass Consulting Group and its affiliate Prospective Risk Management (PRM), both...
Market Intelligence Center  Jul 22  Comment 
For a hedged play on Fidelity National Financial (FNF), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Dec. '15 $37.00 covered call for a net debit in the $35.48 area. That is also the break-even stock price for the...


This article is about the title insurer. For other uses of fidelity, see Fidelity (disambiguation)

Fidelity National Financial is the second largest title insurer in the U.S. Its three main subsidiaries are Fidelity National Title Group, Fidelity National Property and Casualty Insurance Group as well as Sedgewick CMS, a minority-owned subsidiary. In 2005, Fidelity sold off its ownership stake in Fidelity National Information Services (FIS), which processes transactions for financial institutions.[1] Fidelity's revenues are tied to the real estate market. With fees and premiums earned only from the sales and refinancing of real estate.

On November 26th, 2008, Fidelity announced the signing of a stock purchase agreement with former competitor LandAmerica Financial Group (LFG). Under the terms of the stock purchase agreement, Fidelity National Title Insurance Company will acquire Lawyers Title Insurance Corporation and United Capital Title Insurance Company (both are for $139.4 million, for a total purchase price of $298.0 million.[2]

Business Overview

Business & Financial Metrics[3]

FNF earned a net income of $222.3 million after incurring a $179.0 million net loss in 2008.


Business Segments[4]

Fidelity operates through three reportable business segments: Fidelity National Title Group, Specialty Insurance, and Corporate and Other.

*Fidelity Title Group: This segment underwrites title insurance.

*Specialty Insurance: This segment issues flood, homeowners', automobile, and other personal insurance policies.

*Corporate and Other: Operations reported in this segment are actions of the holding company or other unallocated activities.


Key Trends and Forces

The Weak Housing Market reduces the demand for Title Insurance

Premiums from Title Insurance policies generate the majority of Fidelity's revenue. Title Insurance policies are sold along with the sale of real estate. When more properties are sold, more premiums can be collected. However, with today's slow market for real estate, fewer properties are sold leaving fewer opportunities for Fidelity to earn premiums from Title Insurance policies.

Interest Rates strongly influence the volume of mortgage refinances

High interest rates make the option of refinancing mortgages unattractive, since homeowners have to pay more for their loans. Drops in interest rates create a greater incentive to refinance and therefore more opportunities for Fidelity to earn Title Insurance premiums.

Effects of Economy-at-large

During an economic downturn, fewer consumers are willing to purchase a new home, diminishing the number of potential Title Insurance policies. In addition, fewer consumers are willing to purchase new cars and other products covered by Fidelity's Specialty Insurance segment. The reverse is true during an economic expansion. The Economic Cycles affect the U.S. Housing Market, Interest Rates, and the Appreciation of home prices.


The title insurance industry is an oligopoly, with the top five firms contributing 92.6% of the industry's revenues. [6] FNF is currently the second-largest title insurance underwriter and shares a co-leading position with LandAmerica in the commercial title insurance market. FNF's largest competitors are:

  • First American (FAF) is also a holding company and has earned at least 69% of its revenue from Title Insurance premiums over the past three years. First American has the largest market share in U.S. title insurance and competes directly with Fidelity for premiums, escrow, closing, and processing related fees. First American also operates an Information Technology Segment, which provides Mortgage and Property Information.[7]
  • LandAmerica Financial Group (LFG)
  • Old Republic International (ORI) is an insurance underwriter operating in three segments: General Insurance, Mortgage Guaranty, and Title Insurance. Old Republic's primary source of revenue is its General Insurance segment.
  • Stewart Information Services (STC) provides title insurance and related services through locations in the United States and several international markets. The company meets the needs of real estate and mortgage industries through the electronic delivery of services required for settlement. Stewart's services include title reports, flood determinations, and credit reports.Stewart Information Services has two operating segments: Title Insurance and Real Estate Information.[8]


  1. FNF 2007 10-K, Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations, page 40
  2. LandAmerica Signs Stock Purchase Agreement for Underwriters
  3. 3.0 3.1 FNF 2009 10-K pg. 126  
  4. FNF 2009 10-K pg. 1  
  5. FNF 2009 10-K pg. 113  
  6. [1]
  7. FAF 2007 Annual Report, Item 1: Business, page 3
  8. STC 2007 Annual Report, Item 1: Business, page 3
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