Fidelity National Financial, Inc. - FORM 8-K - EX-99.2 - August 4, 2020

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Exhibit 99.2

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FGL Holdings (“F&G”) - An Operating Segment of Fidelity National Financial, Inc. (NYSE:FNF)     
Financial Supplement
June 30, 2020
(Year Ended December 31)

The financial statements and financial exhibits included herein are unaudited. F&G is an operating segment of FNF and these financial statements and exhibits should be read in conjunction with FNF's periodic reports on Form 10-K, Form 10-Q and Form 8-K.

F&G (formerly NYSE:FG) was acquired by FNF (the "Business Combination") on June 1, 2020 ("Closing Date"). As a result of the Business Combination, F&G delisted from the NYSE and became a subsidiary of FNF. Our financial statement presentation includes the financial statements of F&G and its subsidiaries as a standalone entity ("Pre-Merger") for the periods prior to the completion of the Business Combination, and F&G and its subsidiaries as an operating segment of FNF ("Post-Merger") for periods from and after the Closing Date.

All dollar amounts are presented in millions.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures commonly used in our industry that, together with the relevant GAAP measures, may enhance a user’s ability to analyze F&G's operating segment performance for the periods presented. These measures should be considered supplementary to our segment financial results in accordance with GAAP and should not be viewed as a substitute for the GAAP measures and are not intended to replace GAAP financial results. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such non-GAAP measures in the same manner.




1
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Page
4
Reconciliation of Total Shareholders' Equity to Common Shareholders' Equity Excluding AOCI
Reconciliation of Return on Equity (ROE) to Adjusted ROE
Total Product Net Investment Spread
FIA Net Investment Spread

2
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Consolidated Financial Highlights

One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30,
2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Select Income Statement Data:
Net earnings (loss) attributable to common shareholders(39) 19  (346) 217  58  38  
Adjusted earnings (loss) attributable to common shareholders (1)37  40  33  94  79  65  
Select Metrics:
Return on average common shareholders' equity (1)(16.2)%209.5 %(118.7)%39.0 %11.6 %9.6 %
Adjusted return on common shareholders' equity, excluding AOCI (1)16.3 %10.9 %8.1 %21.8 %19.7 %16.6 %
Average Assets Under Management ("AAUM") (1)26,582  29,285  28,924  28,332  27,871  27,388  
Net investment spread (1)3.50 %1.92 %2.24 %2.41 %2.05 %2.26 %
Sales
FIA244  622  831  795  590  767  
Fixed rate annuities (MYGA)14  33  114  126  107  263  
Institutional spread based—  —  100  —  100  92  
Total annuity258  655  1,045  921  797  1,122  
Index universal life4  8  11  11  9  10  
Flow reinsurance34  108  122  122  108  104  
Total Sales$296  $771  $1,178  $1,054  $914  $1,236  
(1) Refer to "Non-GAAP Financial Measures Definitions"
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F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)


Appendix to Consolidated Financial Highlights
Effective June 1, 2020, certain blocks of business were designated as discontinued operations by FNF. Amounts related to these blocks of business are presented herein as adjustments to key financial metrics, solely for comparison between Pre-Merger and Post-Merger periods. See FNF 10Q for further discussion on discontinued operations.

One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30,
2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Select Income Statement Data:
Net earnings (loss) attributable to common shareholders(39) 19  (346) 217  58  38  
Less: discontinued operations [(earnings)/loss](5) (22) 155  (46) (14) 13  
As adjusted for discontinued operations(44) (3) (191) 171  44  51  
Adjusted Earnings attributable to common shareholders(1)37  40  33  94  79  65  
Less: discontinued operations [(earnings)/loss]—  8  26  (4) (18) (5) 
As adjusted for discontinued operations37  48  59  90  61  60  
Less: Notable items [(unfavorable)/favorable] (2)8  5  (6) 15  2  (4) 
As adjusted for discontinued operations and notable items29  43  65  75  59  64  
Select Metrics:
Adjusted return on common shareholders' equity, excluding AOCI (1)16.3 %10.9 %8.1 %21.8 %19.7 %16.6 %
Less: discontinued operations [(earnings)/loss]— %5.7 %10.4 %5.3 %(0.5)%1.6 %
As adjusted for discontinued operations16.3 %16.6 %18.5 %27.1 %19.2 %18.2 %
AAUM (1)26,582  29,285  28,924  28,332  27,871  27,388  
Less: discontinued operations [(earnings)/loss]—  (2,236) (2,266) (2,183) (2,040) (1,869) 
As adjusted for discontinued operations26,582  27,049  26,658  26,149  25,831  25,519  
Net investment spread (1)3.50 %1.92 %2.24 %2.41 %2.05 %2.26 %
Less: discontinued operations [(earnings)/loss]— %(0.07)%(0.02)%0.03 %0.04 %0.09 %
As adjusted for discontinued operations3.50 %1.85 %2.22 %2.44 %2.09 %2.35 %
(1) Refer to "Non-GAAP Financial Measures Definitions"
(2) Noteable items from continuing operations. For full list of noteable items, refer to page 8 "Noteable Items"



4
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
          
Condensed Consolidated Balance Sheets

June 30, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Assets
Investments:
Fixed maturity securities available for sale, at fair value, net of allowance for credit losses of $15 at June 30, 202023,014  21,140  23,726  23,907  23,362  
Preferred securities, at fair value875  873  1,001  1,027  1,084  
Equity securities, at fair value54  42  70  70  60  
Derivative investments333  188  587  454  383  
Mortgage loans, net of allowance for credit losses of $28 at June 30, 20201,777  1,769  1,267  836  760  
Investments in unconsolidated affiliates1,045  1,071  1,013  923  878  
Other long-term investments404  421  289  155  153  
Short-term investments38  36  38  37  66  
Total investments27,540  25,540  27,991  27,409  26,746  
Cash and cash equivalents909  740  931  953  705  
Trade and notes receivables2  1  1  1  2  
Funds withheld for reinsurance receivable, at fair value—  2,050  2,172  2,045  1,922  
Reinsurance recoverable, net of allowance for credit losses of $22 at June 30, 20203,182  3,186  3,213  3,250  3,264  
Goodwill1,725  467  467  467  467  
Prepaid expenses and other assets381  384  355  435  356  
Lease assets8  9  9  3  3  
Other intangible assets, net2,060  2,071  1,495  1,438  1,457  
Property and equipment, net2  2  2  1  1  
Deferred tax asset180  264  61  92  150  
Assets of discontinued operations2,502  —  —  —  —  
Total assets$38,491  $34,714  $36,697  $36,094  $35,073  
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F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Condensed Consolidated Balance Sheets (continued)
June 30, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Liabilities and Shareholders' Equity
Contractholder funds26,628  26,226  25,684  25,355  24,828  
Future policy benefits4,092  5,658  5,735  5,714  5,641  
Accounts payable and accrued liabilities1,800  1,828  1,998  1,926  1,824  
Notes payable589  543  542  542  542  
Lease liabilities13  9  9  3  3  
Income taxes payable(24) (22) (15) (21) (24) 
Liabilities of discontinued operations2,347  —  —  —  —  
Total liabilities35,445  34,242  33,953  33,519  32,814  
Shareholders' equity:
Additional paid-in-capital2,737  2,041  2,032  2,022  2,014  
Retained earnings (accumulated deficit)(39) (72) 300  85  29  
Accumulated other comprehensive income (loss)348  (1,428) 481  520  251  
Treasury stock—  (69) (69) (52) (35) 
Total shareholders' equity3,046  472  2,744  2,575  2,259  
Total liabilities and shareholders' equity$38,491  $34,714  $36,697  $36,094  $35,073  

6
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Condensed Consolidated Statements of Operations

One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30,
2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenues:
Life insurance premiums and other fees (a)$20  $52  $41  $43  $51  $45  
Interest and investment income111  111  316  324  301  315  
Realized gains and losses (net)(7) 257  (692) 196  103  135  
Total revenues124  420  (335) 563  455  495  
Benefits and expenses:
Benefits and other changes in policy reserves155  356  (41) 119  331  268  
Personnel costs9  15  21  21  17  19  
Other operating expenses12  40  74  64  28  126  
Depreciation and amortization3  1  (60) 78  14  14  
Interest expense3  5  8  8  8  8  
Total benefits and expenses182  417  2  290  398  435  
Pre-tax earnings (loss) from continuing operations(58) 3  (337) 273  57  60  
Federal income tax expense14  17  (1) (48) 9  (13) 
State income tax expense—  (1) —  —  (1) (1) 
Net earnings (loss) from continuing operations(44) 19  (338) 225  65  46  
Earnings from discontinued operations, net of tax5  —  —  —  —  —  
Less Preferred stock dividend—  —  (8) (8) (7) (8) 
Net earnings (loss) attributable to common shareholders$(39) $19  $(346) $217  $58  $38  
(a) Included within "Escrow, title-related and other fees" in FNF 10-Q
7
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Reconciliation from Net Earnings (Loss) to Adjusted Earnings (1)
One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net earnings (loss) from continuing operations$(44) $19  $(338) $225  $65  $46  
Less Preferred stock dividend$—  $—  $(8) $(8) $(7) $(8) 
Net earnings (loss) attributable to common shareholders$(44) $19  $(346) $217  $58  $38  
Non-GAAP adjustments (1):
Realized (gains) and losses, net52  68  94  (34) (26) (32) 
Indexed product related derivatives 42  (28) 287  (134) 63  69  
Purchase price amortization2  —  —  —  —  —  
Transaction costs7  4  34  11  (6) (3) 
Income taxes on non-GAAP adjustments (22) (23) (36) 34  (10) (7) 
Adjusted earnings attributable to common shareholders$37  $40  $33  $94  $79  $65  





Notable Items
Each quarterly reporting period, we identify notable items that help explain the trends in our Net earnings (loss) from continuing operations attributable to common shareholders and Adjusted earnings (loss) from continuing operations attributable to common shareholders as we believe these items provide further clarity to the financial performance of the business.  
One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30,
2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Adjusted earnings attributable to common shareholders (1)$37  $40  $33  $94  $79  $65  
Notable items [(unfavorable)/favorable]
Project expenses (a)—  (2) (2) (10) —  (11) 
Single premium immediate annuities ("SPIA") mortality & other reserve adjustments (b)4  6  (5) 15  (2) 3  
Assumption review and unlocking (c)—  (4) —  4  7  —  
Other (d)4  5  (25) 15  15  4  
(1) Refer to "Non-GAAP Financial Measures Definitions"
(a) Costs incurred during research and exploration of potential merger or acquisition of a business or a group of insurance policies via asset acquisition or (inforce) reinsurance agreement.
(b) The release of annuity reserves associated with mortality of annuitants, which varies due to timing, volume and severity of experience, and other reserve adjustments.
(c) Reflects unlocking from updating our DAC, VOBA, DSI and cost of reinsurance amortization models for actual experience and equity market fluctuations. Also, annually in the 3rd calendar quarter, we complete our Annual Assumption Review & Unlocking process by adjusting our valuation assumptions to align with actual experience.
(d) Bond prepayment income, changes in tax valuation, and other net activity.

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F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Adjusted Earnings Statement (1)

One month endedTwo Months EndedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30,
2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenues:
Life insurance premiums and other fees (a)20  42  53  44  49  48  
Interest and investment income (b)120  200  317  324  301  315  
Realized gains and losses (net) (c)4  22  (34) 23  5  11  
Total revenues144  264  336  391  355  374  
Benefits and expenses:
Benefits and other changes in policy reserves (d)60  131  161  151  175  93  
Personnel costs9  15  21  21  17  19  
Other operating expenses (e)4  37  41  53  35  130  
Depreciation and amortization (f)23  32  27  42  34  31  
Interest expense3  5  8  8  8  8  
Total benefits and expenses99  220  258  275  269  281  
Pre-tax earnings (loss) from continuing operations45  44  78  116  86  93  
Federal Income Tax Expense(8) (5) (37) (14) —  (20) 
State Income Tax Expense—  1  —  —  —  —  
Adjusted earnings$37  $40  $41  $102  $86  $73  
Less Preferred stock dividend$—  $—  $(8) $(8) $(7) $(8) 
Adjusted earnings attributable to common shareholders$37  $40  $33  $94  $79  $65  
Noteable items included in adjusted earnings attributable to common shareholders(2)$8  $5  $(32) $24  $20  $(4) 

(1) Refer to "Non-GAAP Financial Measures Definitions"
(2) Refer to page 8 "Noteable Items" for further detail of noteable items.
(a) Life insurance premiums and other fees have been adjusted to remove the effect of cost of reinsurance.
(b) Interest and investment income has been adjusted to remove the market volatility on the alternative investment portfolio for periods after March 31, 2020.
(c) Realized gains and losses (net) have been adjusted to remove the effect of realized (gains) losses including changes in allowance for expected credit losses and OTTI; changes in fair values of indexed product related derivatives and embedded derivatives, net of hedging costs; and the change in fair value of the reinsurance related embedded derivative.
(d) Benefits and other changes in policy reserves has been adjusted to remove the effects of the changes in fair values of indexed product embedded derivatives, changes in allowance for expected credit losses on reinsurance recoverables, and the fair value impacts of assumed reinsurance.
(e) Other operating expenses have been adjusted to remove the effects of transaction costs.
(f) Depreciation and amortization has been adjusted to remove the impact on DAC, VOBA, DSI and SOP03-1 of the adjustments above, as applicable, and purchase price amortization.
9
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Reconciliation of Total Shareholders' Equity to Common Shareholders' Equity Excluding AOCI
June 30, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Total shareholders' equity3,046  472  2,743  2,575  2,260  
Equity attributable to preferred shareholders (1)—  446  438  430  422  
Common shareholders' equity3,046  26  2,305  2,145  1,838  
AOCI348  (1,428) 481  520  251  
Total common shareholders' equity excluding AOCI (1)$2,698  $1,454  $1,824  $1,625  $1,587  

Reconciliation of Return on Equity (ROE) to Adjusted ROE
Twelve months ended
Reconciliation of the Twelve Month Rolling ROE to Adjusted ROEJune 30, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Return on average common shareholders' equity (1)(16.2)%(2.2)%29.4 %7.5 %8.2 %
AOCI(1.0)%0.1 %0.3 %(0.9)%(2.2)%
Return on average common shareholders' equity, excluding AOCI (1)(17.2)%(2.1)%29.7 %6.6 %6.0 %
Aggregate adjustments to arrive at adjusted earnings available to common shareholders (2)33.5 %18.9 %(9.7)%12.7 %12.3 %
Adjusted return on common shareholders' equity, excluding AOCI (1)16.3 %16.8 %20.0 %19.3 %18.3 %
Three months ended
Reconciliation of Quarterly ROE to Adjusted ROEJune 30, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Return on average common shareholders' equity (1)(16.2)%(118.7)%39.0 %11.6 %9.6 %
AOCI(1.0)%34.3 %11.3 %2.8 %0.1 %
Return on average common shareholders' equity, excluding AOCI (1)(17.2)%(84.4)%50.3 %14.4 %9.7 %
Aggregate adjustments to arrive at adjusted earnings available to common shareholders (2)33.5 %92.6 %(28.5)%5.3 %6.9 %
Adjusted return on common shareholders' equity, excluding AOCI (1)16.3 %8.1 %21.8 %19.7 %16.6 %

(1) Refer to "Non-GAAP Financial Measures Definitions"
(2) Refer to "Reconciliation from Net Earnings (Loss) to Adjusted earnings" for further details on individual adjustments



10
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Financial Strength Ratings
A.M. BestS&PMoody'sFitch
Holding Company Ratings
FGL Holdings
Issuer Credit / Default RatingNot RatedBBB-Ba2BBB
OutlookStableStableNegative
CF Bermuda Holdings Limited
Issuer Credit / Default RatingNot RatedBBB-Ba1BBB
OutlookStableStableNegative
Fidelity & Guaranty Life Holdings, Inc.
Issuer Credit / Default Ratingbbb-BBB-Not RatedBBB
OutlookStableStableNegative
Senior Unsecured Notesbbb-BBBBaa2BBB
OutlookStableStable
Operating Subsidiary Ratings
Fidelity & Guaranty Life Insurance Company
Financial Strength RatingA-A-Baa1A-
OutlookStableStableStableNegative
Fidelity & Guaranty Life Insurance Company of New York
Financial Strength RatingA-A-Not RatedA-
OutlookStableStableNegative
F&G Reinsurance Ltd
Financial Strength RatingA-Not RatedNot RatedBBB
OutlookStableNegative
F&G Life Re Ltd
Financial Strength RatingNot RatedA-Baa1BBB
OutlookStableStableNegative
*Reflects current ratings and outlooks as of date of filing









11
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Total Product Net Investment Spread
One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net investment income$111  $111  $317  $324  $301  $315  
AAUM (1)26,582  29,285  28,924  28,332  27,871  27,388  
Yield on AAUM (1)5.01 %2.27 %4.38 %4.57 %4.32 %4.60 %
Alternative investment yield adjustment (1)0.41 %1.83 %
Adjusted Yield on AAUM (1)5.42 %4.10 %
Interest credits$21  $53  $76  $76  $79  $82  
Option & futures costs19  43  60  63  63  62  
Total interest credited and option costs$40  $96  $136  $139  $142  $144  
Average account value25,330  26,463  25,453  25,476  25,049  24,568  
Interest credited & option cost1.92 %2.18 %2.14 %2.16 %(2.27)%2.34 %
Net investment spread (1)3.50 %1.92 %2.24 %2.41 %2.05 %2.26 %
(1) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.


12
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
FIA Net Investment Spread
One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net investment income$68  $57  $216  $223  $196  $197  
AAUM (1)18,267  18,623  18,111  17,628  17,120  16,648  
Yield on AAUM (1)4.47 %1.84 %4.77 %5.06 %4.57 %4.73 %
Alternative investment yield adjustment (1) (a)0.59 %2.67 %
Adjusted Yield on AAUM (1)5.06 %4.51 %
Interest credits$4  $8  $13  $14  $13  $13  
Option & futures costs$19  $43  $60  $63  $63  $62  
Total interest credited and option costs23  51  73  77  76  75  
Average account value17,688  17,501  17,065  16,565  16,213  15,850  
Interest credited & option cost1.59 %1.76 %1.72 %1.85 %1.88 %1.89 %
Net investment spread (1)3.47 %2.75 %3.05 %3.21 %2.69 %2.84 %

(1) Refer to "Non-GAAP Financial Measures Definitions" for further details. Periods after April 1, 2020 include alternative investment yield adjustment.

13
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)


Average Assets Under Management Rollforward

One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31, 2019September 30,
2019		June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
AAUM at beginning of period (1)$26,529  $28,924  $28,332  $27,871  $27,388  $25,862  
Net new business sales66  473  600  494  484  492  
Net reinsurance transactions and other(13) (112) (8) (33) (1) 1,034  
AAUM at end of period$26,582  $29,285  $28,924  $28,332  $27,871  $27,388  
(1) Beginning balance for June 30, 2020 represents assets under management at June 1, 2020 and reflects $2.3 billion decrease from the exclusion of discontinued operations and $0.5 billion decrease from purchase accounting mark-to-market effect as compared to the May 31, 2020 ending balance.


Annuity Account Balance Rollforward (a)
One month endedTwo months endedThree months ended
June 30, 2020May 31, 2020March 31, 2020December 31,
2019		September 30, 2019June 30, 2019
Post-MergerPre-MergerPre-MergerPre-MergerPre-MergerPre-Merger
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Account balances at beginning of period$21,332  $20,999  $20,402  $20,052  $19,701  $19,191  
Net deposits245  675  940  920  696  1,047  
Surrenders, withdrawals, deaths, etc.(161) (381) (452) (675) (420) (436) 
    Net flows 84  294  488  245  276  611  
Premium and interest bonuses4  12  17  19  16  16  
Fixed interest credited and index credits29  50  123  118  86  95  
Guaranteed product rider fees(7) (23) (31) (32) (27) (27) 
Account balance at end of period$21,442  $21,332  $20,999  $20,402  $20,052  $19,701  
(a) The rollforward reflects the vested account balance of our fixed index annuities and fixed rate annuities, net of reinsurance.
14
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)

Annuity Liability Characteristics

Fixed Annuities Account ValueFixed Index Annuities Account Value
June 30, 2020
(Unaudited)
SURRENDER CHARGE PERCENTAGES:
No surrender charge$404  $2,309  
0.0% < 2.0%15  50  
2.0% < 4.0%19  429  
4.0% < 6.0%483  1,569  
6.0% < 8.0%1,281  2,167  
8.0% < 10.0%1,500  4,177  
10.0% or greater3  7,035  
$3,705  $17,736  


Fixed Annuities Account ValueFixed Index Annuities Account Value
June 30, 2020
(Unaudited)
CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL:
No differential$496  $1,271  
0.0% - 1.0%194  1,420  
1.0% - 2.0%753  32  
2.0% - 3.0%2,262  2  
Allocated to index strategies—  15,011  
$3,705  $17,736  




15
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)




Summary of Invested Assets by Asset Class

June 30, 2020December 31, 2019
Post-MergerPre-Merger
(Unaudited)(Unaudited)
Amortized CostFair ValuePercentAmortized CostFair ValuePercent
Fixed maturity securities, available for sale:
    United States Government full faith and credit$35  $35  — %$33  $34  — %
    United States Government sponsored entities122  123  — %133  134  — %
    United States municipalities, states and territories1,321  1,361  5 %1,284  1,343  5 %
    Foreign Governments150  155  1 %138  155  1 %
Corporate securities:
    Finance, insurance and real estate4,081  4,184  15 %4,038  4,234  15 %
    Manufacturing, construction and mining778  799  3 %739  771  3 %
    Utilities, energy and related sectors2,320  2,375  9 %2,345  2,452  9 %
    Wholesale/retail trade1,587  1,635  6 %1,576  1,617  6 %
    Services, media and other2,366  2,436  9 %2,353  2,523  9 %
Hybrid securities970  975  4 %983  1,027  4 %
Non-agency residential mortgage-backed securities 783  766  3 %784  820  3 %
Commercial mortgage-backed securities2,423  2,560  9 %2,788  2,922  10 %
Asset-backed securities 1,685  1,717  6 %1,774  1,813  6 %
CLO securities3,816  3,893  14 %3,946  3,881  14 %
Alternative investments1,044  1,045  4 %1,084  1,077  4 %
Equity securities929  929  3 %999  1,002  4 %
Commercial mortgage loans576  583  2 %422  435  2 %
Residential mortgage loans1,201  1,177  4 %845  848  3 %
Other (primarily derivatives and limited partnerships)752  760  3 %628  867  3 %
Short term investments38  38  — %38  38  — %
Total (a)$26,977  $27,546  100 %$26,930  $27,993  100 %
(a) Asset duration, including cash and cash equivalents, of 6.51 years and 6.63 years vs. liability duration of 6.79 years and 6.80 years for the periods ending June 30, 2020 and December 31, 2019, respectively.

16
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Credit Quality of Fixed Maturity Securities
June 30, 2020
(Unaudited)
NAIC DesignationFair ValuePercent
1$12,309  53 %
29,099  40 %
31,182  5 %
4291  1 %
5132  1 %
61  — %
$23,014  100 %


June 30, 2020
(Unaudited)
Rating Agency RatingFair ValuePercent
AAA$531  2 %
AA1,528  7 %
A6,398  28 %
BBB8,280  36 %
Not rated4,234  18 %
Total investment grade20,971  91 %
BB1,471  7 %
B and below491  2 %
Not rated81  — %
Total below investment grade2,043  9 %
$23,014  100 %

17
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Summary of Residential Mortgage Backed Securities by Collateral Type and NAIC Designation

June 30, 2020
(Unaudited)
Total by collateral typeAmortized CostFair Value
Government agency$114  $113  
Prime588  574  
Subprime81  79  
Alt-A122  123  
$905  $889  
June 30, 2020
(Unaudited)
Total by NAIC designationAmortized CostFair Value
1$855  $839  
239  39  
31  1  
410  10  
5—  —  
$905  $889  


18
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Top 10 Holdings by Issuers

June 30, 2020
(Unaudited)
Issuer (a):Fair ValuePercentage of Total Invested Assets
HP Enterprise Co$132  0.5 %
HSBC Holdings132  0.5 %
Prudential Financial Inc115  0.4 %
Metropolitan Transportation Authority (NY)113  0.4 %
Verizon Communications Inc.113  0.4 %
AT&T Inc.111  0.4 %
Blackstone Div Alt Issuer107  0.4 %
CVI CVF III Master Fund II LL106  0.4 %
Nationwide Mutual Insurance Company105  0.4 %
Entergy Corp105  0.4 %
(a) Issuers excluding U.S. Governmental securities.
19
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Top 5 Reinsurers


June 30, 2020
(Unaudited)
Financial Strength Rating
Parent Company/Principal ReinsurersReinsurance Recoverable (a)AM BestS&PFitchMoody's
Wilton Re$1,478   A+ Not Rated A+Not Rated
Kubera Insurance (SAC) Ltd828  Not RatedNot RatedNot RatedNot Rated
Security Life of Denver153  Not RatedA+AA3
Hannover Re130  A+AA-Not RatedNot Rated
London Life126  A+Not RatedNot RatedNot Rated
(a) Reinsurance recoverables do not include unearned ceded premiums that would be recovered in the event of early termination of certain traditional life policies.


20
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Non-GAAP Financial Measures Definitions
The following represents the definitions of non-GAAP measures used by F&G, as an operating segment of FNF:
Adjusted Earnings
Adjusted Earnings is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted earnings is calculated by adjusting net earnings (loss) from continuing operations to eliminate:
(i) Realized (gains) and losses, net: the impact of net investment gains/losses, including changes in allowance for expected credit losses and other than temporary impairment ("OTTI") losses, recognized in operations; the impact of market volatility on the alternative asset portfolio; and the effect of changes in fair value of the reinsurance related embedded derivative;
(ii) Indexed product related derivatives: the impacts related to changes in the fair value, including both realized and unrealized gains and losses, of index product related derivatives and embedded derivatives, net of hedging cost, and the fair value accounting impact of assumed reinsurance,
(iii) Purchase price amortization: the impacts related to the amortization of certain intangibles (internally developed software, trademarks and value of distribution asset (VODA)) recognized as a result of acquisition activities, and
(iv) Transaction costs: the impacts related to acquisition, integration and merger related items.
Adjustments to Adjusted Earnings are net of the corresponding impact on amortization of intangibles, as appropriate. The income tax impact related to these adjustments is measured using an effective tax rate, as appropriate by tax jurisdiction. While these adjustments are an integral part of the overall performance of F&G, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations.

Effective April 1, 2020, F&G changed their definition of Adjusted Earnings to exclude the impact of market volatility on the alternative asset portfolio. Alternative investment valuations and GAAP net income can reflect significant non-cash impacts of market and economic conditions that are not indicative of expected returns over the life of the investments. Management invests in alternative investments to back future policyholder obligations consistent with its asset liability management strategy. Management evaluates the performance of the alternative investments and calculates Adjusted Earnings using a rate of return that is consistent with its investment strategy and indicative of expected returns. Management believes this change provides users of the financial statements and other financial communications a more representative view of the results of the core business of F&G for the periods after April 1, 2020. Previous periods have not been adjusted.
Adjusted Earnings Attributable to Common Shareholders
Adjusted Earnings attributable to common shareholders is a non-GAAP economic measure we use to evaluate financial performance attributable to our common shareholders each period. Adjusted Earnings attributable to common shareholders is calculated by adjusting net earnings (loss) available to common shareholders to eliminate the same items as described in the Adjusted Earnings paragraph above. While these adjustments are an integral part of the overall performance of the Company, market conditions and/or the non-operating nature of these items can overshadow the underlying performance of the core business. Accordingly, Management considers this to be a useful measure internally and to investors and analysts in analyzing the trends of our operations.
Common Shareholders’ Equity
Common Shareholders’ Equity is based on Total Shareholders’ Equity excluding Equity Available to Preferred Shareholders. Management considers this to be a useful measure internally and to investors to assess the level of equity that is attributable common stock holders.
21
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Common Shareholders’ Equity Excluding AOCI
Common Shareholders’ Equity Excluding AOCI is based on Common Shareholders' Equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of earned equity on common equity.
Equity Attributable to Preferred Shareholders
Equity attributable to preferred shareholders is equal to the product of (a) the number of preferred shares outstanding plus share dividends declared but not yet issued and (b) the original liquidation preference amount per share. Management considers this non-GAAP measure to provide useful information internally and to investors and analysts to assess the level of equity that is attributable to preferred stock holders. (Note: F&G no longer has any preferred shareholders following the Business Combination)
Return on Average Common Shareholders’ Equity
Return on Average Common Shareholders' Equity is calculated by dividing net earnings (loss) attributable to common shareholders by total average Common Shareholders’ Equity. Average Common Shareholders Equity for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders’ Equity for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available.
Return on Average Common Shareholders Equity Excluding AOCI
Return on Average Common Shareholders' Equity Excluding AOCI is calculated by dividing net earnings (loss) attributable to common shareholders by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity Excluding AOCI is calculated using the beginning and ending Common Shareholders’ Equity, excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this to be a useful measure internally and for investors and analysts to assess the level of return driven by the Company that is attributable to common shareholders.
Adjusted Return on Average Common Shareholders’ Equity Excluding AOCI
Adjusted Return on Common Shareholders’ Equity Excluding AOCI is calculated by dividing Adjusted Earnings Attributable to Common Shareholders’ by total average Common Shareholders’ Equity Excluding AOCI. Average Common Shareholders’ Equity Excluding AOCI for the twelve months rolling, is the average of 5 points throughout the period and for the quarterly average Common Shareholders Equity is calculated using the beginning and ending Common Shareholders Equity, Excluding AOCI, for the period. For periods less than a full fiscal year, amounts disclosed in the table are annualized. As a result of the merger, the starting point for calculation of average Common Shareholders’ Equity was reset to June 1, 2020. The rolling average will be updated from the merger date forward to use available historical data points until 5 historical data points are available. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, Management considers this non-GAAP financial measure to provide useful supplemental information internally and to investors and analysts assessing the level of adjusted earned return on common equity.





22
F&G - An Operating Segment of FNF
Financial Supplement - June 30, 2020
(All periods are unaudited)
Average Assets Under Management (AAUM)
AAUM is calculated as the sum of:
(i) total invested assets at amortized cost, excluding derivatives;
(ii) related party loans and investments;
(iii) accrued investment income;
(iv) funds withheld at fair value;
(v) the net payable/receivable for the purchase/sale of investments, and
(iv) cash and cash equivalents, excluding derivative collateral, at the beginning of the period and the end of each month in the period, divided by the total number of months in the period plus one.
Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the rate of return on assets available for reinvestment.

Yield on AAUM
Yield on AAUM is calculated by dividing annualized net investment income by AAUM. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
Alternative Investment Yield Adjustment
Alternative investment yield adjustment is the current period yield impact of market volatility on the alternative investment portfolio. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
Adjusted Yield on AAUM
Adjusted Yield on AAUM is calculated by dividing annualized net investment income by AAUM, plus or minus the alternative investment yield adjustment. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the level of return earned on AAUM.
Net Investment Spread
Net investment spread is the excess of net investment income, adjusted for market volatility on the alternative asset investment portfolio, earned over the sum of interest credited to policyholders and the cost of hedging our risk on indexed product policies. Management considers this non-GAAP financial measure to be useful internally and to investors and analysts when assessing the performance of the Company’s invested assets against the level of investment return provided to policyholders, inclusive of hedging costs.
23

Fidelity National Financial, Inc. Reports