Through our Core Operations, FNF is a leading provider of (i) title insurance,
escrow and other title related services, including collection and trust activities,
trustee sales guarantees, recordings and reconveyances and home warranty insurance
and (ii) technology and transaction services to the real estate and mortgage
industries. FNF is the nation’s largest title insurance company operating
through its title insurance underwriters - Fidelity National Title Insurance
Company, Chicago Title Insurance Company, Commonwealth Land Title Insurance
Company, Alamo Title Insurance and National Title Insurance of New York Inc.
- that collectively issue more title insurance policies than any other title
company in the United States. Through our subsidiary ServiceLink Holdings, LLC
("ServiceLink"), we provide mortgage transaction services including
title-related services and facilitation of production and management of mortgage
loans. FNF also provides industry-leading mortgage technology solutions, including
MSP®, the leading residential mortgage servicing technology platform in
the U.S., through its majority-owned subsidiary, Black Knight Financial Services,
Inc. ("Black Knight").
FNF Core Operations
Title. This segment consists of the operations of our title insurance underwriters
and related businesses. This segment provides core title insurance and escrow
and other title related services including collection and trust activities,
trustee sales guarantees, recordings and reconveyances, and home warranty insurance.
This segment also includes the transaction services business acquired from Lender
Processing Services, Inc. ("LPS"), now combined with our ServiceLink
business. Transaction services include other title-related services used in
the production and management of mortgage loans, including mortgage loans that
experience default.
Black Knight. This segment consists of the operations of Black Knight, which,
through leading software systems and information solutions, provides mission
critical technology and data and analytics services that facilitate and automate
many of the business processes across the life cycle of a mortgage.
FNF Core Corporate and Other. This segment consists of the operations of the
parent holding company, certain other unallocated corporate overhead expenses,
and other smaller real estate and insurance-related operations.
FNFV
Restaurant Group. This segment consists of the operations of ABRH, in which
we have a 55% ownership interest. ABRH and its affiliates are the owners and
operators of the OCharleys, Ninety Nine Restaurants, Max & Ermas, Village
Inn, Bakers Square, and Legendary Baking concepts.
FNFV Corporate and Other. This segment primarily consists of our share in the
operations of certain equity investments, including Ceridian, as well as consolidated
investments, including Digital Insurance, in which we own 96%, and other smaller
operations which are not title related.
We believe that our competitive strengths include the following:
Corporate principles. A cornerstone of our management philosophy and operating
success is the six fundamental precepts upon which we were founded, which are:
Autonomy and entrepreneurship;
Bias for action;
Customer-oriented and motivated;
Minimize bureaucracy;
Employee ownership; and
Highest standard of conduct.
These six precepts are emphasized to our employees from the first day of employment
and are integral to many of our strategies described below.
Competitive cost structure. We have been able to maintain competitive operating
margins in part by monitoring our businesses in a disciplined manner through
continual evaluation of title order activity and management of our cost structure.
When compared to our industry competitors, we also believe that our structure
is more efficiently designed, which allows us to operate with lower overhead
costs.
We believe that our competitive strengths position us well to take advantage
of future changes to the real estate market.
Leading title insurance company. We are the largest title insurance company
in the United States and a leading provider of title insurance and escrow and
other title-related services for real estate transactions. Through the third
quarter of 2015, our insurance companies had a 32.9% share of the U.S. title
insurance market, according to the American Land Title Association ("ALTA").
Established relationships with our customers. We have strong relationships with
the customers who use our title services. Our distribution network, which includes
approximately 1,200 direct residential title offices and approximately 5,000
agents, is among the largest in the United States. We also benefit from strong
brand recognition in our multiple title brands that allows us to access a broader
client base than if we operated under a single consolidated brand and provides
our customers with a choice among brands.
Strong value proposition for our customers. We provide our customers with title
insurance and escrow and other title-related services that support their ability
to effectively close real estate transactions. We help make the real estate
closing more efficient for our customers by offering a single point of access
to a broad platform of title-related products and resources necessary to close
real estate transactions.
Proven management team. The managers of our operating businesses have successfully
built our title business over an extended period of time, resulting in our business
attaining the size, scope and presence in the industry that it has today. Our
managers have demonstrated their leadership ability during numerous acquisitions
through which we have grown and throughout a number of business cycles and significant
periods of industry change.
Commercial title insurance. While residential title insurance comprises the
majority of our business, we are also a significant provider of commercial real
estate title insurance in the United States. Our network of agents, attorneys,
underwriters and closers that service the commercial real estate markets is
one of the largest in the industry. Our commercial network combined with our
financial strength makes our title insurance operations attractive to large
national lenders that require the underwriting and issuing of larger commercial
title policies.
3.26% 