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FNF reports initial quarterly earnings with FGL in its fold

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Fidelity National Financial Inc., a Jacksonville, Fla.-based title insurance company that acquired FGL Holdings earlier this year, reported consolidated second quarter financial results that include one month of FGL earnings for the period ended June 30. Fidelity National’s second quarter net earnings from continuing operations was $304 million, compared to net earnings of $266 million in the prior-year period. Those operating results exclude a net loss attributable to common shareholders of $39 million for the month ended June 30, driven by acquisition costs and mark-to-market adjustments related to the FGL deal, valued at about $2.7 billion. FGL’s fixed annuity sales of $866 million in the second quarter were up 13% from the year-ago quarter. Average assets under management as of June 30 were $26.6 billion, down from $27.4 billion from the prior year second quarter. The second quarter’s $2.1 billion of net new business for FGL was offset by acquisition and purchase accounting effects, including the recognition of a $0.5 billion net unrealized loss and $2.4 billion reduction for discontinued operations. FGL Holdings, now owned by FNF,  is the parent company of Des Moines-based financial services company Fidelity & Guaranty Life.