Fidelity National Financial Inc. (FNF) filed Quarterly Report for the period ended 2009-03-31.

Fidelity National Title Group Inc. is a leading provider of title insurance specialty insurance and claims management services. FNT is one of the nation's largest title insurance companies through its title insurance underwriters. FNT also provides flood insurance personal lines insurance and home warranty insurance through it specialty insurance business. FNT also is a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary Sedgwick CMS. Fidelity National Financial Inc. has a market cap of $3.49 billion; its shares were traded at around $16.22 with and P/S ratio of 0.8. The dividend yield of Fidelity National Financial Inc. stocks is 3.8%.

Highlight of Business Operations:

On December 22, 2008, we completed the acquisition of LandAmerica Financial Group, Inc.’s (“LFG”) two principal title insurance underwriters, Commonwealth Land Title Insurance Company (“Commonwealth”) and Lawyers Title Insurance Corporation (“Lawyers”), as well as United Capital Title Insurance Company (“United”) (collectively, the “LFG Underwriters”). The total purchase price for Commonwealth and Lawyers was $238.0 million, net of cash acquired of $8.8 million, and was comprised of $134.8 million paid in cash by two of our title insurance underwriters, Fidelity National Title Insurance Company and Chicago Title Insurance Company, a $50 million subordinated note due 2013, and $50 million in FNF common stock (3,176,620 shares valued at $15.74 per share at the time of closing). In addition, Fidelity National Title Insurance Company purchased United from an indirect subsidiary of LFG for a purchase price of approximately $12 million, equal to an estimate of the statutory net worth of United at the time of closing. The operations of these companies are included in the Fidelity National Title Group segment from their acquisition date of December 22, 2008.

The increase in title premiums from direct operations was primarily due to our acquisition of the LFG Underwriters. Excluding the operations of the LFG Underwriters, title premiums from direct operations decreased $39.3 million, or 12.9%, to $265.5 million in the three months ended March 31, 2009, from $304.8 million in the three months ended March 31, 2008, reflecting an increase in closed order volumes that was more than offset by a decrease in fee per file. Excluding the operations of the LFG Underwriters, closed order volumes were 355,300 in the three months ended March 31, 2009, compared to 307,800 in the three months ended March 31, 2008, with the increase reflecting growth in the refinance market caused by a decrease in mortgage interest rates. In the first quarter of 2009, mortgage interest rates were significantly lower than in the first quarter of 2008 due to the introduction of government programs designed to provide liquidity to the home mortgage market. During 2008, the Federal Reserve Bank continued to decrease the federal funds rate by a total of 400-425 basis points. The federal funds rate is now 0.0%-0.25% compared to 5.25% in August 2007. Excluding the operations of the LFG Underwriters, the average fee per file in our direct operations was $1,147 in the three months ended March 31, 2009, compared to $1,447 in the three months ended March 31, 2008, with the decrease reflecting a decline in home values, particularly in California, Arizona, Florida, and Nevada; a slowing commercial real estate market; and an increase in the proportion of title premiums originating from refinance transactions. The fee per file tends to change as the mix of refinance and purchase transactions changes, because purchase transactions generally involve the issuance of both a lender’s policy and an owner’s policy, resulting in higher fees, whereas refinance transactions typically only require a lender’s policy, resulting in lower fees. Including the operations of the LFG Underwriters, closed order volumes and fee per file for the three months ended March 31, 2009 were 428,600 and $1,166, respectively.

Escrow, title-related and other fees increased $71.6 million, or 27.4%, to $333.4 million in the three months ended March 31, 2009, compared to $261.7 million in the three months ended March 31, 2008. Excluding the operations of the LFG Underwriters, escrow, title-related and other fees increased $30.1 million, or 11.5%, to $291.8 million in the three months ended March 31, 2009, from $261.7 million in the three months ended March 31, 2008. At Fidelity National Title Group, escrow fees, which are more directly related to our direct operations, increased $44.8 million, or 44.3%, in the three months ended March 31, 2009 compared to the three months ended March 31, 2008, due to the acquisition of the LFG Underwriters. Excluding the operations of the LFG Underwriters, escrow fees in this segment increased $4.4 million, or 4.3% over the same periods primarily due to the increase in residential transactions. Other fees in the Fidelity National Title Group segment, excluding escrow fees, increased $30.2 million in the three months ended March 31, 2009 compared to the three months ended March 31, 2008, primarily due to an increase in revenues from a division of our business that manages real estate owned by financial institutions and recent acquisitions, including the Colorado title insurance operations of Mercury Companies. Other fees decreased $3.4 million in the corporate and other segment in the three months ended March 31, 2009 compared to 2008, due to a decrease in revenues relating to leasing assets and a 2008 gain on the sale of timberland.

Other operating expenses consist primarily of facilities expenses, title plant maintenance, premium taxes (which insurance underwriters are required to pay on title premiums in lieu of franchise and other state taxes), postage and courier services, computer services, professional services, travel expenses, general insurance, and trade and notes receivable allowances. Other operating expenses increased $65.8 million to $326.9 million in the three months ended March 31, 2009, from $261.1 million in the three months ended March 31, 2008, reflecting an increase of $76.7 million in the Fidelity National Title Group segment that was mostly due to our acquisition of the LFG Underwriters, partially offset by decreases of $0.2 million in the specialty insurance segment and $10.7 million in the corporate and other segment.

Depreciation and amortization increased $2.7 million to $36.4 million in the three months ended March 31, 2009, compared to $33.7 million in the three months ended March 31, 2008, reflecting an increase of $3.8 million in the corporate and other segment, partially offset by decreases of $0.9 million in the Fidelity National Title Group segment and $0.2 million in the specialty insurance segment.

Other operating expenses consist primarily of facilities expenses, title plant maintenance, premium taxes (which insurance underwriters are required to pay on title premiums in lieu of franchise and other state taxes), postage and courier services, computer services, professional services, travel expenses, general insurance, and trade and notes receivable allowances. Other operating expenses increased $76.7 million to $284.8 million in the three months ended March 31, 2009, from $208.1 million in the three months ended March 31, 2008. Excluding the operations of the LFG Underwriters, other operating expenses in this segment increased $24.1 million, or 11.6%, to $232.1 million in the three months ended March 31, 2009, from $208.1 million in the three months ended March 31, 2008. This increase includes equal increases in revenues and expenses of $20.3 million associated with a division of our business that manages real estate owned by financial institutions and a decrease of $18.6 million in benefits related to our escrow balances, which are reflected as an offset to other operating expenses, partially offset by a legal settlement of $15.5 million. As a result of holding customers’ assets in escrow, we have ongoing programs for realizing economic benefits. Those economic benefits related to escrow balances decreased due to decreases in escrow balances.

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FNF is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Arnold Schneider of Schneider Capital Management, Richard Pzena of Pzena Investment Management LLC, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, John Keeley of Keeley Fund Management, Charles Brandes of Brandes Investment.