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Title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in the title to your property. It’s a big deal. History is fraught with counterclaims on property or previously existing liens that people bring forward regarding property.

Fidelity is the largest title insurance company in the country with a 31% market share. It has a #1 or #2 market share in 39 states. The insurer’s scale and volume drive revenues and reduce costs.

Meanwhile, Fidelity’s F&G subsidiary is a nationwide leader for insurance solutions to retail annuity and life insurance customers as well as institutional clients. While title insurance is the main event, F&G accounted for 38% of Fidelity’s overall net adjusted earnings in 2024. It also provides strong growth.

Of course, the F&G segment earnings are volatile in the near term because they're at the whim of market gyrations. While net sales grew 15% in 2024, they were down 16% in the first quarter versus the same quarter last year. As a result, company-wide earnings per share for the quarter came in at $0.78 versus an expected $1.13 and $0.76 in last year’s quarter. FNF is down 13% since the earnings report in early May.

But the cheap price creates an opportunity. Plus, the stock currently pays $0.50 per quarter, which translates to $2 annually and a 3.6% yield at the current price. The payout has grown by an average of 9.3% per year over the last five years.

Recommended Action: Buy FNF.

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