Investor UpdateWinter 2021

2

This presentation may contain forward-looking statements that involve a number of risks and uncertainties. Statements that are

not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are

forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by,

and information currently available to, management. Because such statements are based on expectations as to future financial

and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no

obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The

risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general

economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level

of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage

funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business

that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on

distributions from our title insurance underwriters as a main source of cash flow; significant competition that our operating

subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the

“Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other

filings with the Securities and Exchange Commission.

Disclaimer

3

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting.

GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation

of financial statements. In addition to reporting financial results in accordance with GAAP, this presentation includes non-GAAP financial

measures, which the Company believes are useful to help investors better understand its financial performance, competitive position and

prospects for the future. These non-GAAP measures include, adjusted net earnings per share, adjusted pre-tax title earnings, adjusted pre-

tax title earnings as a percentage of adjusted title revenue (adjusted pre-tax title margin), adjusted net earnings attributable to common

shareholders (adjusted net earnings), net investment spread, assets under management (AUM), average assets under management (AAUM)

and sales. Management believes these non-GAAP financial measures may be useful in certain instances to provide additional meaningful

comparisons between current results and results in prior operating periods. 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 as we

do. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the

financial information prepared and presented in accordance with GAAP. By disclosing these non-GAAP financial measures, FNF believes it

offers investors a greater understanding of, and an enhanced level of transparency into, the means by which the Company’s management

operates the Company. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be

considered in isolation or as a substitute for GAAP net earnings, net earnings attributable to common shareholders, net earnings per share,

or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Further, FNF's non-GAAP

measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP financial

measures to the most directly comparable GAAP measures are provided herein.

Non-GAAP Financial Measures

4

FNF Overview

5

$15.6B Total Revenue1 | 33% Title Market Share | 1,300 Direct Title Offices | >28,000 Employees

Fortune Ranked 288 (NYSE: FNF)2 | $14.8B Market Capitalization2

Source: ALTA Title Market Share and Wink’s Annuity Sales & Report, as reported for YTD 3Q21 1Reflects Total Revenue for FY20212As of 12/31/2021

Strong track record of technology innovation, market share growth, best in class margins & shareholder value creation

Industry Leading Insurance Solutions Company

FNF® is the leading provider of title insurance and settlement services to the real estate and mortgage industries

Various mortgage and real estate services companies that provide solutions that complement our title insurance business

Industry leading smart title automation, closing, title, and escrow systems, digital mortgage solutions, real estate marketing and CRM software, and the first end-to-end real estate experience platform

F&G is a leading provider of insurance solutions serving retail annuity & life customers and institutional clients

• FNF holds #1 market share in the title insurance industry; #1 or #2 share in 43 states

• F&G is a Top 5 fixed indexed annuity writer in the industry; well-positioned with diversified growth strategy

Annuities & Life Insurance

Real Estate Technology

Mortgage & Real Estate

Services

Title Insurance

6

Compelling Investment Case for FNF

Strategically Positioned for Long-Term Growth

Disciplined and Profitable Growth

Sustainable Competitive Advantages

Strong Capitalization Supports Growth

Focus on Shareholder Value Creation

7

Sustainable competitive advantages strategically position FNF for long-term growth

Title Segment Well-Positioned For Growth

FNF is the nationwide market leader in attractive

and growing sector

Our mission is to advance, expand, and

protect the experience of property ownership

Solid long-term fundamentals for U.S.

residential and commercial real estate markets

Demographic trends provide tailwind from growing working

age population

Strategically Positioned For Long-Term Growth

Sustainable CompetitiveAdvantages

#1 market leader provides scale advantage

Proven “Go-to-Market” approach

Technology driven innovation, growth, and productivity

One of the largest & deepest real estate data networks

Industry leading margins & disciplined operating focus

8

Old Republic

6%Stewart Title

11%

Others

15%

First American

25%

Fidelity

National

Financial

43%

FNF consistently holds top market share in residential purchase, refinance, and commercial markets

Title: #1 Market Leader Provides Scale Advantage

8

Stewart Title

9%

Old

Republic

15%

Others

20%First

American

23%

Fidelity

National

Financial

33%

Total

AgentStewart Title

9%

Old

Republic

20%

First

American

22%

Others

22%

Fidelity

National

Financial

27%

$19B

$12B

Direct

$7B

Source: ALTA Market Share – YTD 3Q21 Market Share

9

FNF holds #1 or #2 share in 43 states … potential to expand market share

Title: Overall Market Share By State

9

FNF Market Share

#1

(26)

#2

(17)

#3

(5)

#4+

(2)

10%

47%

31% MD

42% DE

31% NJ

16% CT37%

23%46% RI25% MA

21% NH

13% VT 28%

23%

24%36%

30%

45%

40%

28%

38%28%

45%

26%

41%

28%

59%

26%

38%

58%

30%

20%

20%

31%

33%

27%

21%

20%

21%

33%

32%

25%

12%

11%

27%

41%

22%

43%

48%

40%

FNF market share of 43%

FNF market share of 23%

FNF market share of 28%

FNF market share of 31%

FNF market share of 37%

Source: ALTA Market Share – YTD 3Q21 Market Share

10

Nationwide footprint with dominant local market share

• Unique national and local, multi-brand strategy drives market share, profitability, and preserves value of acquisitions

• Core title business complemented by ancillary real-estate related businesses

• Scale and volume drive revenue, reduce costs and create competitive advantage

Title: Proven “Go-to-Market” Approach

11

Title Automation Technology & Deep

Real Estate Data

Title, Settlement and Digital Mortgage

Solutions

Agent Marketing, CRM, and

Transaction Mgt

End-to-End Real Estate Experience

Platform

Used by hundreds of thousands of real estate agents and

millions of consumers

Leading technology solution provider to

industry title agents and centralized platform

Over 17 million automated title

decisions1

Now covering 93% of residential direct

operations for Start inHere and 50% of

operations for the Track inHere mobile app for

real estate agents

Significant investments in acquiring, developing, and enhancing technology for ourselves and our customers

Title: Technology Driven Innovation, Growth & Efficiency

1Since 2003

12

FNF’s scale provides data to evaluate trends and respond to fluctuations in opened and closed orders

Title: Disciplined Operating Strategy

• Continuously monitor operating metrics

• Opened and closed order counts, headcount, efficiency metrics

• React quickly, utilize the “order lag” to our advantage

• Slow to add headcount when volumes improve; aggressively reduce headcount as order volumes decline

• Management compensation heavily weighted to variable incentives; bonus and commissions are a large part of compensation

• “Normalized” adjusted pre-tax title margin of 15% - 20%

13

$2.0$1.8

$1.3

$1.7

$2.1

$1.8$1.7

$2.3

$4.1 $4.0

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

$5.6 $5.9 $5.6$6.4

$7.0 $7.2 $7.2

$8.3

$9.4

$11.5

14.1% 13.7%12.5%

14.3% 14.7% 14.5% 14.8%16.3%

19.6% 21.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021$0

$2

$4

$6

$8

$10

$12

$14

FNF Title Revenue FNF Adjusted Pre-Tax Title Margin

FNF Title Revenue ($B) | Margin %

Refinance

Purchase

13

Industry Mortgage Originations ($Trillions)

MBA 30-Year Mortgage Rate

3.7% 4.0% 4.2% 3.9% 3.6% 3.9% 4.8% 3.7% 2.8% 3.1%1

Title: Operating PerformanceFNF has a long history of generating strong margins across varying market cycles

1MBA Mortgage Finance Forecast January 22, 2022

14

14.1% 13.7%12.5%

14.3% 14.7% 14.5% 14.8%16.3%

19.6%

21.7%

7.7% 8.1%7.0%

8.3%9.1% 9.3%

10.0%

11.5%12.3%

13.5%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

FNF Competitor Average

FNF has achieved adjusted pre-tax title margin of 15-20%, well above the competitor average

• FNF margins in future market peaks and troughs expected to be higher relative to historic averages in comparable market conditions

• Powered by scale and decades of automation, innovation, and productivity improvements

• Sustained by competitive advantages and disciplined operating strategy

Title: Competitive Advantages Drive Leading Margin

15

F&G is a nationwide market leader for insurance solutions to retail annuity and life customers and institutional clients

F&G Segment Well-Positioned For Growth

F&G is a Top 5 fixed indexed annuity writer in the industry; well-positioned

with diversified growth strategy

Our mission is to help people turn their

aspirations into reality

Solid long-term fundamentals for U.S. life

and annuity markets

Demographic trends provide tailwind from growing retirement

age population

Strategically Positioned For Long-Term Growth

Sustainable CompetitiveAdvantages

Successfully diversifying products and channels

Long track record of consistently managing net

investment spread

Blackstone asset origination capabilities and expertise

Demonstrated track record of strong and profitable growth

16

F&G multi-channel distribution and Blackstone investment partnership provide significant competitive advantage

• Transformed from previously ‘monoline’ business into well-diversified and leading provider in Retail and Institutional markets

• Record sales doubled in 2021 vs. prior year

• Sales growth driven by ongoing agent channel growth, bank and broker dealer expansion and institutional markets launch

• Ending assets under management at $36.5B, driven by net new business flows

F&G: Successfully Diversifying Products & Channels

4.3 6.1

0.5

3.5

$4.8

$9.6

Full Year 2020 Full Year 2021

+100% YoY

+42% YoY

+600% YoY

AUM $28.6B $36.5B +28% YoY

Sales Growth ($B)

Institutional & Other

Retail

290300 298

241

277

300

333

2015 2016 2017 2018 2019 2020 2021

0 bps

50 bps

100 bps

150 bps

200 bps

250 bps

300 bps

350 bps

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

• Despite volatility in interest rates, F&G has a long track record of consistently managing core spread

• Partnership with Blackstone enhances investment yield while maintaining credit quality and broadening asset diversification

• Profitable, stable inforce book; 89% of annuity reserves are surrender charge protected

• Assets and liability cash flows well matched

FIA Net Spread vs. 10-Year UST Yield

Net Investment Spread for Fixed Indexed Annuity (FIA) FIA Spread10-Year UST

* *

F&G: Long Track Record of Consistent Spread

17

F&G generates earnings and future cash flow independent of interest rate impacts and is well-positioned for growth

18

$9.6B

Retail Annuity Sales

$6.1BFull Year 2021

Institutional Sales

$3.5BFull Year 2021

Total Sales

Full Year 2021

Driven by expanding bank, broker dealer and agent partners

From funding agreements and pension risk transfer launch

Demonstrated track record of strong spread and profitable growth

“Spread model” generates consistent and increasing earnings driven by asset growth

F&G: Strong & Profitable Growth

Return on Assets

113 bpsFull Year 2021

Adjusted Net Earnings

$361MFull Year 2021

Average Assets Under Mgmt

$31.9BFull Year 2021

Ending Assets Under Mgmt

$36.5BFull Year 2021

7.7 7.6 8.5 10.8

15.6

2017 2018 2019 2020 2021

Total Revenue ($B)

Title F&G Corporate

634 750 940 1,526

2,268

2017 2018 2019 2020 2021

Adjusted Net Earnings ($M)

Title F&G Corporate

737 943 1,121 1,460 2,220

2017 2018 2019 2020 2021

Net Cash From Operations ($M)

(ex F&G)

$2.28 $2.70 $3.39 $5.34

$7.90

2017 2018 2019 2020 2021

Adjusted Net Earnings Per Share

(Diluted)

20% CAGR

32% CAGR 36% CAGR

38% CAGR

FNF’s Disciplined and Profitable Growth Annual

19

Five year market leading track record capped off with record 2021 results

20

• FNF’s capital allocation priorities are focused on deploying capital to best maximize shareholder value through both continued investment in our business and return of capital to shareholders

Investing for Growth

Reinvest in the Business

Capital and other investments to support the growth strategy and maintain adequate capital buffer

Net Cash from Operations

Return to Shareholders

Strategically Aligned M&A

Preserve financial capacity for real-estate-related, title agencies, and/or technology acquisitions

Continue to Grow the Dividend

Targeted increases to common dividend over time

Net Share Repurchases

Return excess cash to shareholders over time through repurchase of shares

Maintain Efficient Capital Structure | Long-term Debt-to-Capitalization Target at ~25%

Strong Capitalization Supports GrowthBalancing financial flexibility and efficient capital structure

21

- 21

85

244

461

2017 2018 2019 2020 2021

Share Repurchases ($M)$800M Cumulative

• In 4Q21, completed $500M program authorized in late 2020

• Share repurchases are dependent on capital levels, alternative uses of capital and market conditions

Dividends

per share$1.02 $1.20 $1.26 $1.35 $1.56

• FNF’s current $500M annual dividend viewed as sustainable

• Dividend is reviewed quarterly and expected to increase over time, subject to cash flows, alternative uses of capital and market conditions

278 328 344

389 446

2017 2018 2019 2020 2021

Common Dividends ($M)$1.8B Cumulative

Solid balance sheet with financial flexibility to continue strategic investments and return capital to shareholders

Dividends and Share Repurchases

22

Financial Overview4Q21 and Full Year 2021 Result

23

($M) - except per share data Quarterly Full Year

Period ended December 31 4Q21 4Q20 2021 2020

Total revenue $4,797 $3,770 $15,643 $10,778

F&G total sales $2,195 $1,459 $9,592 $4,837

Total assets $60,690 $50,455 $60,690 $50,455

Adjusted pre-tax title margin 22.4% 22.7% 21.7% 19.6%

Net earnings $533 $801 $2,422 $1,427

Net earnings per diluted share $1.87 $2.73 $8.44 $4.99

Adjusted Net Earnings $616 $588 $2,268 $1,526

Adjusted Net Earnings per share $2.16 $2.01 $7.90 $5.34

4Q21 and Full Year 2021 Highlight (comparisons to PY)

• Strong total revenue of $4.8B in 4Q21; growth in total revenue,

excluding recognized gains and losses, of 43% in 4Q21 as

residential and commercial revenue more than offset ongoing

contraction in refinance volumes and F&G pension risk transfer

transactions boosted premiums

• Robust F&G sales growth of 50% to $2.2B in 4Q21, driven by

expansion in new channels; record sales of $9.6B in 2021 double

the prior year and boosted ending assets under management to

$36.5B at year-end 2021

• Industry leading full year adjusted pre-tax title margin of 21.7%

• Strong profitability with adjusted net earnings increase of 5% to

$616M in 4Q21 and 49% to $2.3B in 2021

• Strong balance sheet with financial flexibility with over $900

million of capital returned to shareholders through common

dividends and share repurchases in 2021 and $1.5 billion in

holding company cash & short-term investments at year-end 2021

Fourth Quarter Financial HighlightsRobust mortgage market demand driving top line performance, together with strong F&G growth, generated strong profitability

3.8 3.1 3.9 3.9 4.8

10.8

15.6

4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21

Total Revenue ($B)

Title F&G Corporate

588 455 593 604 616

1,526

2,268

4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21

Adjusted Net Earnings ($M)

Title F&G Corporate

512 472 573 550 625

1,460

2,220

4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21

Net Cash From Operations ($M)

(ex F&G)

$2.01 $1.56 $2.06 $2.12 $2.16

$5.34

$7.90

4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21

Adjusted Net Earnings Per Share

(Diluted)

Financial Trends Quarterly

24

Rolling Five Quarters

Corporate

Bonds, 37%

Structured

(CLO, MBS,

ABS), 28%

Mortgages, 9%

Cash and

Short-term, 7%

Alternative

Assets, 6%

Equities, 6%

Other, 4%

Municipal

Bonds, 3%

Cash and Short-

term, 44%

Corporate

Bonds, 22%

Equities, 22%

Other, 10%

Municipal

Bonds, 1%

Structured (CLO,

MBS, ABS), 1%

Consolidated Investment Portfolio

F&G Investment Portfolio

25

Corporate

Bonds, 40%

Structured (CLO,

MBS, ABS), 33%

Mortgages, 10%

Alternative

Assets, 7%

Municipal

Bonds, 4%

Equities, 3% Other, 3%

$43B

$36B

Investment Portfolio ex F&G

$7B

25

As of December 31, 2021

Total Invested Assets Overview

Average credit quality: NAIC 1.59

Average credit quality: A2 (Moody’s or equivalent rating)

26

Loss Ratio 4.6% 3.8% 2.8% 3.7% 3.1% 3.2% 3.4% 4.1% 3.9% 4.1%GAAP Premiums $3,261 $3,839 $4,151 $3,603 $4,230 $4,660 $4,849 $4,878 $5,263 $6,178

Estimated Policy Year CompletionUltimate Loss 2011 to 2020 ($ in millions)

$149 $146

$117 $135 $132

$149 $164

$199 $204

$254

87%84%

78%76%

68%55% 48%

40%

24%11%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Reserves and IBNR

Paid to Date

Rolling Historic Ten Years

Title Claims/Reserves

27

Appendix

28

Non-GAAP Measure ReconciliationsReconciliation from Net Earnings (Loss) Attributable to Common Shareholders to Adjusted Net Earnings (Loss)

$ millions, except per share data

December 31,

2020

March 31,

2021

June 30,

2021

September 30,

2021

December 31,

2021

December 31,

2020

December 31,

2021

Net earnings (loss) attributable to common shareholders $801 $605 $552 $732 $533 $1,427 $2,422

Earnings from discontinued operations, net of tax (2) 5 6 (3) - (25) 8

Net earnings (loss) from continuing operations attributable

to common shareholders 803 600 546 735 533 1,452 2,414

Pre-tax earnings (loss) from continuing operations 930 757 713 926 687 1,784 3,083

Non-GAAP Adjustments

Recognized (gains) and losses, net (367) (23) (42) 71 56 (181) 62

Indexed product related derivatives 54 (185) 75 26 32 111 (52)

Debt issuance costs - - - - - 5 -

Purchase price amortization 29 25 24 25 25 106 99

Transaction costs 5 6 4 3 - 68 13

Other adjustments - - - (284) - 1 (284)

Adjusted pre-tax earnings (loss) 651 580 774 767 800 1,894 2,921

Total non-GAAP, pre-tax adjustments (279) (177) 61 (159) 113 110 (162)

Income taxes on non-GAAP adjustments 64 32 (13) 28 (30) (29) 17

Non-controlling interest on non-GAAP adjustments - - (1) - - (7) (1)

Total non-GAAP adjustments (215) (145) 47 (131) 83 74 (146)

Adjusted net earnings (loss) from continuing operations

attributable to common shareholders $588 $455 $593 $604 $616 $1,526 $2,268

Adjusted EPS attributable to common shareholders - diluted $2.01 $1.56 $2.06 $2.12 $2.16 $5.34 $7.90

Three Months Ended Twelve Months Ended

29

Non-GAAP Measure Reconciliations (Continued)Reconciliation from Pre-Tax Title Earnings to Adjusted Pre-Tax Title Earnings

$ millions

December 31,

2020

March 31,

2021

June 30,

2021

September 30,

2021

December 31,

2021

December 31,

2020

December 31,

2021

Pre-tax Title earnings $896 $439 $644 $486 $567 $1,878 $2,136

Non-GAAP Adjustments before taxes

Recognized (gains) and losses, net (290) 59 30 169 135 (143) 393

Purchase price amortization 18 14 14 14 15 73 57

Other adjustments - - - - - 1 -

Total non-GAAP, pre-tax adjustments (272) 73 44 183 150 (69) 450

Adjusted pre-tax Title earnings $624 $512 $688 $669 $717 $1,809 $2,586

Adjusted pre-tax Title margin 22.7% 19.9% 22.7% 21.7% 22.4% 19.6% 21.7%

Three Months Ended Twelve Months Ended

30

DEFINITIONS

The following represents the definitions of non-GAAP measures used by the Company.

Adjusted Net Earnings Attributable to Common Shareholders (Adjusted Net Earnings)

Adjusted net earnings attributable to common shareholders ("adjusted net earnings") is a non-GAAP economic measure we use to evaluate financial performance each period. Adjusted net earnings is calculated by adjusting net earnings (loss) from continuing operations attributable to common shareholders to eliminate:

i. Recognized (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 that differ from management's expectation of returns over the life of these assets; 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;

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;

iv. Transaction costs: the impacts related to acquisition, integration and merger related items; and

v. Other "non-recurring", "infrequent" or "unusual items": Management excludes certain items determined to be “non-recurring”, “infrequent” or “unusual” from adjusted net earnings when incurred if it is determined these expenses are not a reflection of the core business and when the nature of the item is such that it is not reasonably likely to recur within two years and/or there was not a similar item in the preceding two years.

Adjustments to adjusted net 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. Adjusted net earnings should not be used as a substitute for net earnings (loss). However, we believe the adjustments made to net earnings (loss) in order to derive adjusted net earnings provide an understanding of our overall results of operations.

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

Non-GAAP Measures and Definitions

31

Assets Under Management (AUM)

AUM 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. the net payable/receivable for the purchase/sale of investments, and

v. 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.

Average Assets Under Management (AAUM)

AAUM is calculated as AUM 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.

Adjusted Return on Assets

Adjusted Return on Assets is calculated by dividing annualized adjusted net earnings by year-to-date AAUM. Management considers this non-GAAP financial measure to

be useful internally and to investors and analysts when assessing financial performance and profitability earned on AAUM.

Sales

Annuity, IUL and funding agreement sales are not derived from any specific GAAP income statement accounts or line items and should not be viewed as a substitute for any financial measure determined in accordance with GAAP. Sales from these products are recorded as deposit liabilities (i.e. contractholder funds) within the Company's consolidated financial statements in accordance with GAAP. PRT sales are recorded as premiums in revenues within the consolidated financial statements. Management believes that presentation of sales, as measured for management purposes, enhances the understanding of our business and helps depict longer term trends that may not be apparent in the results of operations due to the timing of sales and revenue recognition.

Non-GAAP Measures and Definitions (Continued)