FNF Reports $45M 4Q Loss

Fidelity National Financial Inc., Jacksonville, Fla., has reported a net loss of $44.9 million ($0.21 per share) for the fourth quarter, after taking a $135.7 million charge to strengthen its reserve for loan losses. For the same period last year, FNF earned $71.2 million ($0.34 per share). Through Oct. 23, 2006, the earnings included contributions from Fidelity National Information Services, which was until that date a majority-owned subsidiary of FNF. Fidelity National Title Group had a net loss of $65.9 million on a pretax basis for the fourth quarter, compared with profits of $155.7 million one year before. Without the charge, FNF said it would have had pretax earnings of $69.9 million in the title business. "We did find it necessary to strengthen our reserve for claim losses as we continued to experience adverse loss development in the fourth quarter, particularly for policy years 2005-2007, as the expected ultimate loss ratio for those policy years worsened to approximately 7.5% during the fourth quarter," said William P. Foley II, FNF's chairman.