Fidelity National Financial (FNF) announced a special distribution of approximately 16 million shares of its majority‑owned subsidiary, F&G Annuities & Life (F&G), to FNF shareholders. The shares represent roughly 12 % of F&G’s outstanding common stock and will be delivered on December 31, 2025 to shareholders of record on December 17, 2025. Under the distribution, each FNF shareholder will receive about six F&G shares for every 100 FNF shares held; fractional shares will be paid in cash. The transaction is structured as a taxable dividend for U.S. federal income tax purposes.
The distribution follows a strong Q3 2025 earnings report in which FNF beat analyst expectations. Adjusted earnings per share rose to $1.63 from $1.43, a $0.20 or 14 % beat, while revenue climbed to $4.03 billion from $3.61 billion, a $0.42 billion or 12 % beat. The Title segment drove the majority of the revenue, reporting $2.3 billion and a pre‑tax margin of 17.8 %. F&G posted record assets under management of $71.4 billion before flow reinsurance and gross sales of $4.2 billion, underscoring the strength of the subsidiary that is now being distributed to shareholders.
Management said the distribution is intended to unlock shareholder value by enhancing liquidity and giving investors direct exposure to F&G’s annuity and life‑insurance business. Chairman William P. Foley, II noted that the move “demonstrates the power of our complementary businesses and our ability to execute in dynamic market conditions.” Chief Executive Officer Chris Blunt added that the distribution reflects confidence in F&G’s long‑term prospects and the company’s strategy to grow its AUM and improve operating efficiency, citing a 52‑basis‑point improvement in operating‑expense ratio to 52 % of AUM before flow reinsurance.
FNF also raised its quarterly cash dividend by 4 % to $0.52 per share, payable on December 31, 2025, while F&G increased its dividend by 14 % to $0.25 per share on the same date. Consensus estimates for the next quarter project adjusted EPS of $1.45 and revenue of $3.61 billion, indicating that management expects continued growth but remains cautious about macro‑economic headwinds that could affect the real‑estate and mortgage markets.
The market reacted positively to the earnings and distribution announcement, with analysts highlighting the strong earnings beat and the strategic value of giving shareholders direct access to F&G. The distribution is expected to improve liquidity for F&G shares and may support a higher valuation for the subsidiary, while the tax treatment of the distribution will require shareholders to account for a taxable dividend on their tax returns.
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