Acquisitions (Tables)

9 Months Ended

Sep. 30, 2020

The initial purchase price is as follows (in millions):


Cash paid for outstanding F&G shares	$	1,903
Less: Cash Acquired	827
Net cash paid for F&G	1,076
Value of FNF share consideration	806
Value of outstanding converted equity awards attributed to services already rendered	28

Total net consideration paid	$	1,910

Schedule of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value amounts recognized for the assets acquired and liabilities assumed as of the acquisition date (dollars in millions):


	Fair Value
Fixed maturity securities	$	22,389
Preferred securities	876
Equity securities	52
Derivative instruments	313
Mortgage loans	1,755
Investments in unconsolidated affiliates	1,049
Other long-term investments	430
Short-term investments	37

Trade and notes receivable	1
Reinsurance recoverable	3,241

Goodwill	1,731
Prepaid expenses and other assets	353
Lease assets	8
Other intangible assets	2,102
Income taxes receivable	27
Deferred tax asset	258
Assets of discontinued operations	2,392
Total assets acquired	37,014

Contractholder funds	26,456
Future policy benefits	4,106
Accounts payable and accrued liabilities	860
Notes payable	589
Funds withheld for reinsurance liabilities	816

Lease liabilities	9


Liabilities of discontinued operations	2,268
Total liabilities assumed	35,104



Net assets acquired	$	1,910

Gross Carrying Value and Weighted Average Useful Lives of Property and Equipment and Other Intangible Assets Acquired

The gross carrying value and weighted average estimated useful lives of Other intangible assets acquired in the F&G acquisition consist of the following (dollars in millions):


	Gross Carrying Value		Weighted Average Estimated Useful Life (in years)

Other intangible assets:

Value of business acquired	$	1,903	Various
Value of distribution network acquired	140		15
Trademarks and licenses	38		10
Software	21		2
Total Other intangible assets	2,102

Unaudited Pro Forma Results

For comparative purposes, selected unaudited pro-forma consolidated results of operations of FNF for the three and nine-month periods ending September 30, 2020 and 2019 are presented below. Pro-forma results presented assume the consolidation of F&G occurred as of the beginning of the respective 2019 periods.




	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
	(In millions)
Total revenues	$	2,976	$	2,669	$	7,127	$	7,517
Net earnings attributable to FNF common shareholders	378		294		432		876