<PAGE>   1
--------------------------------------------------------------------------------




                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                ----------------

                                   FORM 10-K/A
                                 AMENDMENT NO. 1 

                                ----------------

(MARK ONE)
|X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934 (No Fee Required)

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996

                                       OR

| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 (No Fee Required)

                           COMMISSION FILE NO. 1-9396

                        FIDELITY NATIONAL FINANCIAL, INC.
             (Exact name of registrant as specified in its charter)

                                ----------------

           DELAWARE                                               86-0498599
  (State or other jurisdiction                                (I.R.S. Employer
of incorporation or organization)                            Identification No.)


17911 VON KARMAN AVENUE              92614             (714) 622-5000
  IRVINE, CALIFORNIA               (Zip Code)    (Registrant's telephone number,
 (Address of principal                                 including area code)
  executive offices)

                                ----------------


           SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

<TABLE>
<CAPTION>
                                                          NAME OF EACH EXCHANGE
         TITLE OF EACH CLASS                               ON WHICH REGISTERED
         -------------------                              ---------------------
<S>                                                      <C>  
   Common Stock, $.0001 par value                        New York Stock Exchange
Liquid Yield Option Notes, due 2009,                     New York Stock Exchange
zero coupon, convertible subordinated
</TABLE>

           SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                                      NONE.

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No | |

    Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K, or any amendment to
this Form 10-K. | |

    As of March 25, 1997, 13,921,556 shares of Common Stock ($.0001 par value)
were outstanding, and the aggregate market value of the shares of the Common
Stock held by non-affiliates of the registrant was $125,516,000. The aggregate
market value was computed with reference to the closing price on the New York
Stock Exchange on such date.

ITEM 13.       CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Information required under this item is contained in the Registrant's
1997 Proxy Statement, and is incorporated herein by reference. See also notes
4(d) and 8 to the consolidated financial statements on pages 31 and 35 of this
report for information regarding related party transactions.




================================================================================



                                       -1-
<PAGE>   2



PART III

ITEM 10.           DIRECTORS AND THE EXECUTIVE OFFICERS OF THE REGISTRANT

The names of the director nominees, all directors, and all executive officers,
and certain information about them, are set forth below:

<TABLE>
<CAPTION>
                                                                             DIRECTOR
       NAME             AGE           PRINCIPAL OCCUPATION                     SINCE
       ----             ---           --------------------                   --------
<S>                     <C>  <C>                                               <C> 
William P. Foley, II    52   Chairman of the Board and Chief Executive         1984
                             Officer
Patrick F. Stone        49   Chief Operating Officer                           N/A
Frank P. Willey         43   Director and President                            1986
William A. Imparato     50   Director                                          1986
Donald M. Koll          64   Director                                          1995
Daniel D. (Ron) Lane    62   Director                                          1989
Stephen C. Mahood       55   Director                                          1994
J. Thomas Talbot        61   Director                                          1990
Cary H. Thompson        40   Director                                          1992
Carl A. Strunk          59   Executive Vice President, Chief Financial         N/A
                             Officer and Treasurer
Andrew F. Puzder        46   Executive Vice President and General              N/A
                             Counsel
M'Liss Jones Kane       44   Senior Vice President, Corporate Counsel          N/A
                             and Corporate Secretary
Raymond R. Quirk        50   Vice President                                    N/A
Gary R. Nelson          49   Vice President                                    N/A
</TABLE>



WILLIAM P. FOLEY, II

    Mr. Foley is the Chairman of the Board and Chief Executive Officer of the
Company and has been since its formation in 1984. Mr. Foley was President of the
Company from its formation in 1984 until December 31, 1994. He is Chairman of
the Board and Chief Executive Officer of Fidelity National Title Insurance
Company ("Fidelity Title") and has been since April 1981. Mr. Foley is also
currently serving as Chairman of the Board and Chief Executive Officer of CKE
Restaurants, Inc. and is a director of Rally's Hamburgers, Inc., Checkers
Drive-In Restaurants, Inc., DataWorks Corporation, and Micro General
Corporation.

PATRICK F. STONE

    Mr. Stone was elected Chief Operating Officer of the Company on March 25,
1997. From May 1995 through March 1997 he was an Executive Vice President of the
Company and President of Fidelity National Title Insurance Company and five of
the Company's other underwriters. From February 1989 to May 1995 he was
President of Fidelity National Title Company of Oregon.

FRANK P. WILLEY

    Mr. Willey is President and a director of the Company. He served as an
Executive Vice President and General Counsel of the Company from its formation
until December 31, 1994, and is currently serving as an Executive Vice President
and was General Counsel of Fidelity Title from 1984 to January 1995. He has
served in various capacities with subsidiaries and affiliates of the Company
since joining it in 1984. Mr. Willey is also a director of CKE Restaurants, Inc.



                                       -2-
<PAGE>   3
WILLIAM A. IMPARATO

    Mr. Imparato has been a director of the Company since December 1986. From
June 1990 to December 1993, Mr. Imparato was President of the Company's
wholly-owned real estate subsidiary Manchester Development Corporation
("Manchester"). Since July 1980, he has been a partner in Park West Development
Company, a real estate development firm headquartered in Phoenix, Arizona.

DONALD M. KOLL

    Mr. Koll has been a director of the Company since March 28, 1995. Mr. Koll
is Chairman of the Board and Chief Executive Officer of The Koll Company and has
been since its formation on March 26, 1962. Mr. Koll is also a director of Koll
Real Estate Group, Inc.

DANIEL D. (RON) LANE

    Mr. Lane has been a director of the Company since September 1989. Since
February 1983, he has been a principal, Chairman and Chief Executive Officer of
Lane/Kuhn Pacific, Inc., a corporation that consists of several community
development and home-building partnerships, all of which are headquartered in
Newport Beach, California. Mr. Lane has also served as a director of Hawaiian
Airlines, Inc. since January 1990, as a director of Resort Income Investors,
Inc. since September 1990 and as Chairman of the Board and Chief Executive
Officer of Pro Shot Golf, Inc. since August 1994. He is Vice Chairman of the
Board of Directors of CKE Restaurants, Inc.

STEPHEN C. MAHOOD

    Mr. Mahood is a lawyer and a private investor. He was associated with SEDCO,
Inc., a large offshore oil well drilling contractor, from 1966 until it was
acquired by Schlumberger, Ltd. in 1985, at which time he was President of SEDCO
Energy Corporation, an Executive Vice President and director of SEDCO, Inc. and
a director of the International Association of Drilling Contractors. Mr. Mahood
served as a Trustee of the Teachers' Retirement System of Texas from 1987-1993.
Mr. Mahood currently serves as a director of Maxor National Pharmacy Services
Corporation.

J. THOMAS TALBOT

    Mr. Talbot has been a director of the Company since December 1990. He was
formerly Chairman of the Board and Chief Executive Officer of HAL, Inc. and its
subsidiaries Hawaiian Airlines and West Maui Airport, and served in various
executive capacities with those companies until June 1991. Between August 1992
and March 1994, Mr. Talbot was Chairman and Chief Executive Officer of Alliance
Bancorp, which was being liquidated. Mr. Talbot has been a general partner of
Shaw & Talbot, a real estate investment and development company, since 1975. He
was Chairman of Jet America Airlines from 1981 to 1987, when it merged with
Alaska Air Group. Mr. Talbot is currently serving as a director of the Hallwood
Group, Showbiz Pizza Time, Inc., Koll Real Estate Group, Hemmeter Enterprises,
Inc. and the Baldwin Company.

CARY H. THOMPSON

    Mr. Thompson has been a director of the Company since July 1992. Mr.
Thompson is currently Chief Operating Officer and a director of Aames Financial
Corporation. Mr. Thompson was a managing director of Nat West Markets from May
of 1994 through March of 1995. Mr. Thompson was Senior Vice President and
managed the West Coast Financial Institutions Group for Oppenheimer & Co., Inc.,
an investment banking firm from 1989 to May 1994. Prior to that time, he was a
partner with the law firm of Manatt, Phelps, Rothenberg and Phillips.






                                       -3-
<PAGE>   4
CARL A. STRUNK

    Mr. Strunk joined Fidelity Title in February 1992 as an Executive Vice
President. He was named an Executive Vice President and Chief Financial Officer
of the Company in March 1992. Prior to his employment with the Company, Mr.
Strunk was President of Land Resources Corporation from 1987 to 1991. Mr. Strunk
is a certified public accountant. Mr. Strunk currently serves as a director of
Micro General Corporation. Mr. Strunk was elected Executive Vice President and
Chief Financial Officer of CKE Restaurants, Inc. on February 6, 1997.

ANDREW F. PUZDER

    Mr. Puzder has been an Executive Vice President and General Counsel of the
Company since January 1, 1995. From March 1994 through December 1994, he was a
partner at the law firm of Stradling, Yocca, Carlson & Rauth. Prior to that he
was a partner at Lewis, D' Amato, Brisbois & Bisgaard, a law firm, from
September 1991 through March 1994, and he was a partner of the Stoler
Partnership from February 1984 through September 1991. Mr. Puzder was elected
Executive Vice President and General Counsel of CKE Restaurants, Inc. on
February 6, 1997.

M'LISS JONES KANE

    Ms. Kane has been a Senior Vice President and Corporate Counsel of the
Company since March 1995 and became Corporate Secretary in April 1995. Prior to
that she was with the ICN Pharmaceuticals, Inc. group of companies from March of
1990 as Vice President, General Counsel and Secretary of ICN Biomedicals, Inc.
and subsequently in addition became Vice President, General Counsel and
Secretary of SPI Pharmaceuticals, Inc.

RAYMOND R. QUIRK

    Mr. Quirk has been a Vice President of the Company since June 1993, and has
been an Executive Vice President and a Regional Manager of Fidelity Title since
August 1991. Mr. Quirk has been employed by Fidelity Title in other management
positions since November 1987.

GARY R. NELSON

    Mr. Nelson has been a Vice President of the Company since September 26,
1994. From August 1993 to September 1994 he was Chief Financial Officer of World
Title Company. From May 1991 to July 1993 Mr. Nelson was Senior Vice President
of Mergers and Acquisitions of the Company. From January 1988 to May 1991 he was
a Vice President, Chief Financial Officer and Treasurer of the Company. Mr.
Nelson is a certified public accountant.


                      COMPLIANCE WITH SECTION 16(a) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

    Rules adopted by the Securities and Exchange Commission ("SEC") under
Section 16(a) of the Exchange Act require the Company's officers and directors,
and persons who own more than 10% of the issued and outstanding shares of the
Company's common stock, to file reports of their ownership, and changes in
ownership, of such securities with the SEC on SEC Forms 3, 4 or 5, as
appropriate. Officers, directors and greater-than-ten-percent stockholders are
required by the SEC's regulations to furnish the Company with copies of all
forms they file pursuant to Section 16(a).

    Based solely upon a review of Forms 3, 4 and 5 and amendments thereto
furnished to the Company during its most recent fiscal year end, and any written
representations provided to it, the Company is advised that all filings were
timely and correctly made.





                                       -4-
<PAGE>   5
ITEM 11.           EXECUTIVE COMPENSATION

    The following Summary Compensation Table shows compensation paid by the
Company for services rendered during fiscal years 1996, 1995 and 1994 for the
Company's Chief Executive Officer and the four most highly compensated current
executive officers whose salary and bonus exceeded $100,000 in 1996.

                           SUMMARY COMPENSATION TABLE


<TABLE>
<CAPTION>
                                               Annual Compensation
                                 ----------------------------------------------
                                                                                  Long Term
                                                                                 Compensation
                                                                      Other      ------------
                                                                      Annual        Awards-     All Other
       Name and Principal                               Bonus      Compensation    Options(#)  Compensation
            Position             Year    Salary($)    ($)(1)(2)        (3)         (1)(4)(5)     ($)(6)
       ------------------        ----    ---------    ---------    ------------    ----------  ------------
<S>                              <C>     <C>           <C>           <C>            <C>         <C>     
William P. Foley, II,            1996    $600,000.     $507,943.     $122,596.      188,100.    $28,859.
Chairman of the Board            1995     394,008.      430,000.      135,914.      188,760.     29,343.
and Chief Executive Officer      1994     369,951.      505,000.      117,134.      206,910.     45,770.

Patrick F. Stone,                1996     300,000.      124,165.         --          38,316.     12,250.
Chief Operating Officer (7)      1995     226,950.      222,160.         --           2,420.      6,248.

Frank P. Willey,                 1996     250,000.      150,000.         --          52,800.     14,250.
President                        1995     200,000.      120,000.         --          50,820.     14,577.
                                 1994     189,389.      145,000.         --          29,040.     14,521.

Carl A. Strunk,                  1996     240,000.      110,000.         --          26,400.        --
Executive Vice President         1995     200,000.      110,000.         --          29,040.        --
Chief Executive Officer          1994     189,359.      135,000.         --          26,620.        --
and Treasurer

Andrew F. Puzder                 1996     240,000.       75,000.         --          49,500.      4,860.
Executive Vice President (8)
General Counsel
Assistant Secretary
</TABLE>
----------

(1) Consists of cash bonuses in the years paid or deferred to reduce the
    exercise price of stock options granted to the above-noted key employees to
    less than fair market value of the common stock at the date of grant,
    pursuant to the Company's 1991 Stock Option Plan. Bonuses were awarded
    during the year following the fiscal year to which the bonuses relate, based
    on an evaluation by the Compensation Committee of the Board of Directors.
    The amount of deferred bonuses included in this column for 1995, 1994 and
    1993, the most recent three years for which the options were granted, are as
    follows: (i) Mr. Foley: $105,000, -- 1995 bonus; $30,000, -- 1994 bonus;
    $105,000, -- 1993 bonus; (ii) Mr. Stone: $24,165, - 1995 bonus; $10,000, --
    1994 bonus; (iii) Mr. Willey: $40,000, - 1995 bonus; $10,000, -- 1994 bonus;
    $35,000, -- 1993 bonus; (iv) Mr. Strunk: $20,000, - 1995 bonus; $20,000, --
    1994 bonus; $35,000, -- 1993 bonus.

(2) Not included in the table are the bonuses received in 1997 for the 1996
    fiscal year by the executive officers named in the table, based on formulas
    in their employment agreements as follows: William P. Foley, II, $961,125;
    Patrick F. Stone, $286,504; Frank P. Willey, $318,338, Carl A. Strunk,
    $159,169 and Andrew F. Puzder, $159,169 and certain deferred option grants
    to the following executive officers: William P. Foley, options to purchase
    20,000 shares and Patrick F. Stone, option to purchase 6,367 shares.

(3) Certain incidental perquisites or other personal benefits for executive
    officers of the Company (not otherwise disclosed in this Proxy Statement)
    may result from expenses incurred by the Company or its subsidiaries in the
    interest of attracting and retaining qualified personnel. The incremental
    cost to the Company and its subsidiaries of providing such incidental
    perquisites or other personal benefits for executive officers named in the
    Summary Compensation Table, did not exceed the lesser of $50,000 or 10% of
    the total annual salary and bonus reported in fiscal 1996 for the named
    executive officer. Other Annual Compensation for Mr. Foley included the cost
    of (i) a Company provided automobile -- $9,000 in 1996, $9,000 in 1995 and
    $9,000 in 1994; and (ii) tax and financial planning advice provided by third
    parties to Mr. Foley and Folco Development Corporation and personal use of
    Company assets by Mr. Foley and Folco Development Corporation -- $113,596 in
    1996, $126,914 in 1995 and $108,134 in 1994.


                                       -5-
<PAGE>   6
(4) The number of options granted per year in this column for 1996, 1995 and
    1994, the three-year period in which the options were granted, are as
    follows: (i) Mr. Foley: 1996 grant -- 165,000 options granted under the 1987
    Stock Option Plan and 23,100 stock options granted under the 1991 Stock
    Option Plan; 1995 grant -- options granted under the 1987 Stock Option Plan
    and 7,260 options granted under the 1991 Stock Option Plan, and 1994 grant
    -- 181,500 options granted under the 1987 Stock Option Plan and 25,410
    options granted under the 1991 Stock Option Plan; (ii) Mr. Stone: 1996 grant
    - 33,000 options granted under the 1987 Stock Option Plan and 5,316 stock
    options granted under the 1991 Stock Option Plan; 1995 grant -- 2,420
    options granted under the 1991 Stock Option Plan, and 1994 grant --13,310
    options granted under the 1991 Stock Option Plan; (iii) Mr. Willey: 1996
    grant -- 44,000 options granted under the 1987 Stock Option Plan and 8,800
    stock options granted under the 1991 Stock Option plan; 1995 grant -- 48,400
    options granted under the 1987 Stock Option Plan and 2,420 options granted
    under the 1991 Stock Option Plan, and 1994 grant -- 20,570 options granted
    under the 1987 Stock Option Plan; and 8,470 options granted under the 1991
    Stock Option Plan; (iv) Mr. Strunk: 1996 grant -- 22,000 options granted
    under the 1987 Stock Option Plan and 4,400 stock options granted under the
    1991 Stock Option Plan; 1995 grant -- 24,200 options granted under the 1987
    Stock Option Plan and 4,840 options under the 1991 Stock Option Plan, and
    1994 grant -- 18,150 options granted under the 1987 Stock Option Plan and
    8,470 options granted under the 1991 Stock Option Plan; (v) Mr. Puzder: 1996
    grant -- 22,000 options granted under the 1987 Stock Option Plan and 27,500
    stock options granted under the 1991 Stock Option plan, and 1995 grant --
    60,500 options granted under the 1993 Stock Option Plan.

(5) The Company does not have any long-term incentive plans or compensation
    plans pursuant to which stock appreciation rights or restricted stock is
    awarded to officers or directors. The number of options granted in 1997 for
    fiscal year 1996 to the named executives not included in the table are as 
    follows: under the 1993 Stock Option Plan (i) Mr. Puzder -- 25,000 shares;
    under the 1991 Stock Option Plan (i) Mr. Foley -- 20,000 shares; (ii) Mr.
    Stone -- 6,367 shares and under the 1987 Stock Option Plan (i) Mr. Foley --
    150,000 shares; (ii) Mr. Stone -- 30,000 shares; (iii) Mr. Willey -- 40,000
    shares; (iv) Mr. Strunk -- 20,000 shares; (v) Mr. Puzder -- 20,000 shares.

(6) Includes Company cash contributions to the Employee Stock Purchase Plan on
    behalf of the individuals named in the Summary Compensation Table, except
    for Mr. Foley. All Other Compensation for Mr. Foley includes imputed income
    of $1,081 for 1996, $725 for 1995 and $1,426 for 1994 respectively, from a
    joint life split dollar insurance policy.

(7) Mr. Stone was not an officer of the Company prior to May 1995.

(8) Mr. Puzder was not an officer of the Company prior to January 1995. Mr.
    Puzder qualifies for inclusion in the Summary Compensation Table for the
    first time in 1996.

    Certain executive officers received loans from subsidiaries of the Company
    in amounts in excess of $60,000 after January 1, 1996, as follows: Frank P.
    Willey, loan amount $200,000 at an interest rate of 10% per annum, largest
    aggregate amount outstanding at any time during the period $216,444, as of
    March 31, 1996; Carl A. Strunk, loan amount $184,750 at an interest rate of
    10% per annum, largest aggregate amount outstanding at any time during the
    period $201,993, as of March 31, 1996; Patrick F. Stone, loan amount
    $200,000 at an interest rate of prime per annum, largest aggregate amount
    outstanding at any time during the period $203,662, as of March 31, 1996.




                                       -6-
<PAGE>   7
    OPTION GRANTS

    The following table provides information as to options to purchase common
stock granted to the named individuals during 1996 pursuant to the Company's
1993, 1991 and 1987 Stock Option Plans. The Company does not currently grant
stock appreciation rights to officers or directors.

                     STOCK OPTION GRANTS IN LAST FISCAL YEAR


<TABLE>
<CAPTION>
                                              Percent                                                  Potential
                                              of Total                                               Realizable Value
                              Number of       Options                                                  at Assumed
                             Securities      Granted to      Market                                  Annual Rates of
                             Underlying      Employees      Price at  Exercise or                      Stock Price
                              Options        in Fiscal      Date of   Base Price(1)  Expiration      Appreciation for
      Name                   Granted(#)         Year         Grant      ($/SH)          Date           Option Term
      ----                   ----------         ----         -----      ------          ----           -----------
                                                                                                    5%($)      10%($)
<S>                             <C>             <C>         <C>         <C>         <C>           <C>        <C>        
                                         1993 STOCK OPTION PLAN

Andrew F. Puzder                27,500          100.0%      $12.045     $11.7255    04/16/06      $217,098.  $  536,693.

                                         1991 STOCK OPTION PLAN

William P. Foley,II             23,100          24.2%       $11.3640    $ 6.8182    05/13/08       313,926.     666,363.
Patrick F. Stone                 5,316           5.5%        11.3640      6.8182    05/13/08        72,248.     153,358.
Frank P. Willey II               8,800           9.2%        11.3640      6.8182    05/13/08       119,591.     253,852.
Carl A. Strunk                   4,400           4.6%        11.3640      6.8182    05/13/08        59,795.     126,926.
Andrew F. Puzder                    --            --              --          --          --             --           --

                                         1987 STOCK OPTION PLAN

William P. Foley, II           165,000          56.0%       $11.5910    $11.5910    04/10/06     1,202,370.   3,046,777.
Patrick F. Stone                33,000          11.2%        11.5910     11.5910    04/10/06       240,474.     609,355.
Frank P. Willey                 44,000          14.9%        11.5910     11.5910    04/10/06       320,632.     812,474.
Carl A. Strunk                  22,000           7.4%        11.5910     11.5910    04/10/06       160,316.     406,237.
Andrew F. Puzder                22,000           7.4%        11.5910     11.5910    04/10/06       160,316.     406,237.

                               TOTAL -- 1993, 1991 AND 1987 STOCK OPTION PLANS

William P. Foley, II           188,100          45.1%       $11.3640-   $ 6.8182-   05/13/08-    1,516,297.   3,713,141.
                                                             11.5910     11.5910    04/10/06
Patrick F. Stone                38,316           9.1%       $11.3640-   $ 6.8182-   05/13/08-      312,722.     762,714.
                                                             11.5910     11.5910    04/10/06
Frank P. Willey                 52,800          12.6%       $11.3640-   $ 6.8182-   05/13/08-      440,223.   1,066,326.
                                                             11.5910     11.5910    04/10/06
Carl A. Strunk                  26,400           6.3%       $11.3640-   $ 6.8182-   05/13/08-      220,111.     533,163.
                                                             11.5910     11.5910    04/10/06
Andrew F. Puzder                49,500          11.8%       $12.0450-   $11.7255-   04/16/06-      377,415.     942,930.
                                                             12.5910     11.5910    04/10/06
</TABLE>



                                       -7-
<PAGE>   8
-------------

(1) The options granted in 1996 under the 1991 Stock Option Plan were granted at
    an exercise price of $11.3640 to key employees of the Company who applied
    deferred bonuses expensed in 1996 (see (1) of Summary Compensation Table) to
    the exercise price, thereby reducing such price to $6.8182 per share if
    exercised within the first year of grant. The exercise price of these
    options decreases approximately 5% per year through May 13, 2001 and $0.20
    per share from May 14, 2001 through May 13, 2007, at which time the exercise
    price will be $4.00. The options granted in 1996 under the 1993 and 1987
    Stock Option Plans were granted at an exercise price of $12.045 per share
    and $11.5910 per share respectively, the market price at the date of grant.
    These options became exercisable on April 17, 1997 and April 11, 1997
    respectively.


OPTION EXERCISES AND FISCAL YEAR-END VALUES

        The following table summarizes information regarding exercises of stock
    options by the named individuals during 1996 and unexercised options held by
    them as of December 31, 1996. The Company did not reprice any existing
    options during the last completed fiscal year.

                        AGGREGATED STOCK OPTION EXERCISES
              IN LAST FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES


<TABLE>
<CAPTION>
                                                                                Number of                Value of
                                                                               Unexercised              Unexercised
                                                                               Options at               in-the-Money
                                                                                 FY-End               Options at FY-End
                                   Shares Acquired      Value Realized       (#) Exercisable          ($) Exercisable/
      Name                           Exercise (#)            ($)             Unexercisable(1)(2)      Unexercisable(1)(2)
      ----                           ------------            ---             -------------------      ------------------- 
<S>                                  <C>                     <C>             <C>                     <C>     
William P. Foley, II                    --                    --              799,259/165,000        $5,289,830./583,126.
Patrick F. Stone                                                                69,060/33,000           581,914./116,625.
Frank P. Willey                         --                    --               179,214/44,000         1,387,939./155,500.
Carl A. Strunk                          --                    --                99,990/22,000            547,977./77,750.
Andrew F. Puzder                        --                    --                40,334/69,666           247,707./295,083.
</TABLE>

----------

(1) Number of exercisable shares and corresponding values relate to options
    granted under the 1993, 1991 and 1987 Stock Option Plans. The exercise price
    varies based upon the exercise price at the time of grant and the amount of
    deferred bonus applied by the officer to reduce the exercise price. See
    Summary Compensation Table above. The value of unexercised options at
    year-end is calculated as the difference between the market value of the
    underlying security, $15.125 per share, and the exercise price of the option
    at year-end, less the bonus deferral. The exercise prices of the options at
    year-end were as follows: (i) Mr. Foley -- options to purchase 23,100 shares
    at $6.8182 per share, options to purchase 7,260 shares at $3.7600 per share,
    options to purchase 25,410 shares at $6.8800 per share, options to purchase
    38,115 shares at $8.1955 per share, options to purchase 51,974 shares at
    $3.2355 per share and options to purchase 108,900 shares at $.6530 under the
    1991 Plan, and options to purchase 181,500 shares at $8.3682, options to
    purchase 181,500 shares at $11.4673 and options to purchase 181,500 shares
    at $12.6036 under the 1987 Plan; (ii) Mr. Stone -options to purchase 5,316
    shares at $6.8182 per share, options to purchase 2,420 shares at $3.7600 per
    share, options to purchase 13,310 shares at $6.8800, options to purchase
    34,345 shares at $8.1955, and 13,669 shares at $3.2355 per share under the
    1991 Plan; (iii) Mr. Willey -- options to purchase 8,800 shares at $6.8182
    per share, 2,420 shares at $3.7600 per share, options to purchase 8,470
    shares at $6.8800 per share, options to purchase 11,435 shares at $8.1955
    per share, options to purchase 15,594 shares at $3.2355 per share and
    options to purchase 32,670 shares at $.6530 under the 1991 Plan; and options
    to purchase 48,400 shares at $8.3682, options to purchase 20,570 shares at
    $11,4673, and options to purchase 30,855 at $12.6036 per share under the
    1987 Plan; (iv) Mr. Strunk -- options to purchase 4,400 shares at $6.8182
    per share, options to purchase 4,840 shares at $3.7600 per share options to
    purchase 8,470 shares at $6.8800 and options to purchase 12,705 shares at
    $8.1955 per share under the 1991 Plan; and options to purchase 24,200 shares
    at $8.3682 per share, options to purchase 18,150 shares at $11.4673 and
    options to purchase 27,225 shares at $12.6036 under the 1987 Plan; and (v)
    Mr. Puzder -- options to purchase 40,334 shares at $8.9836 per share under
    the 1993 Stock Option Plan .

(2) Number of unexercisable shares and corresponding value relate to options
    granted under the Company's 1993, 1991 and 1987 Stock Option Plans. The
    value of these unexercisable options represents the difference between the
    year-end market value of the underlying security of $15.125 per share and
    the exercise price of the 1993 options at year-end of $11.7255 per share,
    the 1991 options at year-end of $6.8182 per share and the 1987 options at
    year-end of $11.5910 per share. These options became exercisable on April
    17, 1997, May 14, 1997 and April 11, 1997 respectively.


                                       -8-

<PAGE>   9
EMPLOYMENT AGREEMENTS

    The Company entered into a five-year employment agreement (the "Agreement")
with its Chairman and Chief Executive Officer, Mr. Foley, effective April 1,
1991 and amended the agreement on April 1, 1996 and January 1, 1997,
(collectively the "Amendment") to the employment agreement effective on April 1,
1996, for an additional five year period through March 31, 2001. The first
amendment adjusted his minimum annual base salary to $600,000. The Board will
review Mr. Foley's minimum base annual salary in March 1998, and may, in its
sole discretion, increase such minimum base annual salary for the remainder of
the term of the Amendment based upon Mr. Foley's performance during the first
two years of the Amendment. The Agreement and Amendment include other
compensation and executive fringe benefits, including an annual merit bonus
calculated based on the Company's return on equity before extraordinary items, a
$1,000,000 insurance policy payable to the beneficiary of his choice and a joint
life split dollar insurance arrangement under which the Company advances the
premiums and retains the full cash value of the policy. There is a change of
control provision in the Amendment enabling Mr. Foley to terminate this
agreement due to a change in control during the period commencing 60 days and
expiring 365 days after such change in control. In the event of termination of
the agreement for Good Reason (as defined in the agreement as a change in
control) or if Mr. Foley's employment is terminated following a change of
control due to a breach of this Agreement then he shall receive (i) his salary
through the date of termination, (ii) severance pay in an amount equal to his
annual salary in effect as of the date of termination plus the total bonus paid
or payable to him for the most recent calendar year multiplied by the greater
number of years remaining in the term of employment, including partial years, or
3 years of such payment to be made in a lump sum on or before the fifth day
following the date of termination, (iii) maintenance of all benefit plans and
programs for Mr. Foley for the greater number of 3 years or the number of years
(including partial years) remaining in the Amendment. The Company obtained a
covenant from Mr. Foley that he will not compete with the Company or disclose
its trade secrets both during employment or in the event the agreement ends or
Mr. Foley's employment is terminated. The Agreement allows the Company to
terminate Mr. Foley upon written notice without cause with terms specified in
the Amendment. Upon Mr. Foley's death, his estate will receive a payment in the
amount of two years' base salary. Upon incapacity or disability for a continuous
period of nine months, the Company may terminate the employment contract with
Mr. Foley upon payment of an amount equal to two years' base salary.

    The Company entered into a one year employment agreement with Patrick F.
Stone effective January 1, 1996, which was subsequently amended effective
January 1, 1997, extending the term for a period of 3 years ending December 31,
1999. The amendment also provides for a minimum base salary of $325,000 which
may be increased at the discretion of the Chief Executive Officer and/or the
Board of Directors. Other compensation and executive fringe benefits include an
annual bonus calculated based on the Company's return on equity before
extraordinary items. There is a change of control provision in the first
amendment enabling Mr. Stone to terminate this Agreement due to a change in
control during the period commencing 60 days and expiring 365 days after such
change in control. In the event of termination of the agreement for Good Reason
(defined in the agreement as a change in control) or if Mr. Stone's employment
is terminated following a change of control due to a breach of this agreement
then he shall receive (i) his salary through the date of termination, (ii)
severance pay in an amount equal to his annual salary in effect as of the date
of termination plus the total bonus paid or payable to him for the most recent
calendar year multiplied by the greater of the number of years (including
partial years) remaining in the agreement or the number 2, such payment to be
made in a lump sum on or before the fifth day following the date of termination,
(iii) maintenance of all benefit plans and programs for Mr. Stone for the number
of 2 years or the number of years (including partial years) remaining in the
Agreement.

    The Company entered into a one year employment agreement with Frank P.
Willey effective January 1, 1996, which was subsequently amended effective
January 1, 1997, extending the term for a period of 3 years ending December 31,
1999. The agreement provided for a minimum base salary of $250,000 which may be
increased at the discretion of the Chief Executive Officer and/or the Board of
Directors. Other compensation and executive fringe benefits include an annual
bonus calculated based on the Company's return on equity before extraordinary
items. There is a change of control provision in the first amendment enabling
Mr. Willey to terminate this Agreement due to a change in control during the
period commencing 60 days and expiring 365 days after such change in control. In
the event of termination of the agreement for Good Reason (defined in the
Agreement as a change in control) or if Mr. Willey's employment is terminated
following a change of control due to a breach of this agreement then he shall
receive (i) his salary through the date of termination, (ii) severance pay in an
amount equal to his annual salary in effect as of the date of termination

                                       -9-
<PAGE>   10
plus the total bonus paid or payable to him for the most recent calendar year
multiplied by the greater of the number of years (including partial years)
remaining in the agreement or the number 2, such payment to be made in a lump
sum on or before the fifth day following the date of termination, (iii)
maintenance of all benefit plans and programs for Mr. Willey for the number of 2
years or the number of years (including partial years) remaining in the
Agreement.

    Mr. Carl A. Strunk entered into an employment agreement with the Company
effective April 1, 1997, for a term of 3 years which provides for a minimum
annual base salary of $150,000 which may be increased at the discretion of the
Chief Executive Officer and/or the Compensation Committee of the Board of
Directors. Other compensation and fringe benefits include an annual bonus
calculated based on the Company's return on equity before extraordinary items.
There is a change of control provision in the first amendment enabling Mr.
Strunk to terminate this Agreement due to a change in control during the period
commencing 60 days and expiring 365 days after such change in control. In the
event of termination of the agreement for Good Reason (defined in the agreement
as a change in control) or if Mr. Strunk's employment is terminated following a
change of control due to a breach of this agreement then he shall receive (i)
his salary through the date of termination, (ii) severance pay in an amount
equal to his annual salary in effect as of the date of termination plus the
total bonus paid or payable to him for the most recent calendar year multiplied
by the greater of the number of years (including partial years) remaining in the
agreement or the number 2, such payment to be made in a lump sum on or before
the fifth day following the date of termination, (iii) maintenance of all
benefit plans and programs for Mr. Strunk for the number of 2 years or the
number of years (including partial years) remaining in the agreement. Employee
has the right to be the Chief Financial Officer of CKE Restaurants, Inc., during
the term of this agreement. Other than as provided in the agreement, employee
will not engage in any business competitive with the Company.

    Mr. Andrew F. Puzder entered into an employment agreement with the Company
effective April 1, 1997, for a term of 3 years which provides for a minimum
annual base salary of $150,000 which may be increased at the discretion of the
Chief Executive Officer and/or the Compensation Committee of the Board of
Directors. Other compensation and fringe benefits include an annual bonus
calculated based on the Company's return on equity before extraordinary items.
Mr. Puzder is also granted the right to represent Mr. Carl N. Karcher. There is
a change of control provision in the first amendment enabling Mr. Puzder to
terminate this Agreement due to a change in control during the period commencing
60 days and expiring 365 days after such change in control. In the event of
termination of the agreement for Good Reason (defined in the agreement as a
change in control) or if Mr. Puzder's employment is terminated following a
change of control due to a breach of this agreement then he shall receive (i)
his salary through the date of termination, (ii) severance pay in an amount
equal to his annual salary in effect as of the date of termination plus the
total bonus paid or payable to him for the most recent calendar year multiplied
by the greater of the number of years (including partial years) remaining in the
Agreement or the number 2, such payment to be made in a lump sum on or before
the fifth day following the date of termination, (iii) maintenance of all
benefit plans and programs for Mr. Puzder for the number of 2 years or the
number of years (including partial years) remaining in the agreement. Employee
has the right to be the General Counsel of CKE Restaurants, Inc., during the
term of this agreement. Other than as provided in the agreement, employee will
not engage in any business competitive with the Company.

DIRECTOR COMPENSATION

    Directors who are not employees of the Company receive a $2,500 per quarter
retainer and $2,500 per Board of Directors meeting attended (or $1,250 per
committee meeting attended), plus reimbursement of reasonable expenses.
Directors who are employees of the Company do not receive any compensation for
acting as directors, except for reimbursement of reasonable expenses, if any,
for Board meeting attendance.


COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

    During 1996, Messrs. Thompson, Talbot and Lane served as members of the
Compensation Committee. The Compensation Committee is currently composed of
three independent directors. No member of the Compensation Committee is a former
or current officer or employee of the Company or any of its subsidiaries, and
there are no interlocking directorships.



                                      -10-

<PAGE>   11



    Mr. Thompson has served as a member of the Compensation Committee since
March 1993. In March 1993, the Company issued and sold its Senior Secured Notes
in the aggregate principal amount of $22.5 million to certain institutional
investors in a private placement. Oppenheimer & Co., Inc. received approximately
$300,000 as a placement fee in connection with this transaction. Mr. Thompson
was employed by Oppenheimer & Co. Inc., until May of 1994.

    In April 1993, the Company issued 1,542,750 shares of its common stock in a
public offering in which Oppenheimer & Co., Inc. served as one of three primary
underwriters. Oppenheimer & Co., Inc. received a discount of approximately 5.5%
on the shares it purchased from the Company, which was an underwriting discount
consistent with industry practice.

         REPORT OF THE COMPENSATION COMMITTEE ON EXECUTIVE COMPENSATION

    The following report of the Compensation Committee to the Board of Directors
shall not be deemed to be incorporated by reference into any previous filing by
the Company under either the Securities Act of 1933 ("Securities Act") or the
Securities Exchange Act of 1934 ("Exchange Act") that incorporates future
Securities Act or Exchange Act filings in whole or in part by reference.

To the Board of Directors:

GENERAL

    The Compensation Committee of the Board of Directors is responsible for
establishing and administering the policies that govern executive compensation
and benefit practices. The Compensation Committee evaluates the performance of
the executive officers and determines their compensation levels, in terms of
salary, annual bonus and related benefits, all subject to Board approval. The
Compensation Committee has access to independent compensation data for use in
assessing levels of compensation for officers of the Company.

COMPENSATION PHILOSOPHY

    The Company's executive compensation programs are designed to (i) provide
levels of compensation that integrate pay and incentive plans with the Company's
strategic goals, so as to align the interests of executive management with the
long-term interests of the stockholders; (ii) motivate Company executives to
achieve the strategic business goals of the Company and to recognize their
individual contributions; and (iii) provide compensation opportunities which are
competitive to those offered by other national title insurance companies and
other middle-market corporations similar in size and performance. Although the
exact identity of the corporations surveyed varies, these generally include
title companies and other corporations equal to or larger than the Company. Most
of the title companies surveyed are included in the Peer Group Index utilized in
the "Performance Graph" set forth below.

    Therefore, the Compensation Committee believes that the components of
executive compensation should include base salary, annual cash bonus, stock
option grants and other benefits and should be linked to individual and Company
performance. With regard to the Company's performance, the measures used for
determining appropriate levels of compensation for executive officers include
the Company's national market share, net margin, quality of service, meeting
strategic goals within the current economic climate and industry environment,
scope of responsibilities, expansion by acquisition or otherwise, profit
retention and profitability, all of which combine to enhance stockholder value.

BASE SALARY

    The Committee considers Company management proposals concerning salary
adjustments, with the exception of Mr. Foley, its Chairman and Chief Executive
Officer, whose compensation was established under the terms of an employment
agreement entered into in 1991 and amended in 1996 and 1997 with the approval of
the Board of Directors and four key employees including Mr. Stone, Mr. Willey,
Mr. Strunk and Mr. Puzder, all of whom have three year employment contracts. The
Compensation Committee then makes recommendations to the entire Board of
Directors for their approval.

                                      -11-
<PAGE>   12
    In determining bate salaries for executives for 1996, the Compensation
Committee considered the Company's earnings, outside surveys of salary levels of
other title insurance companies and other similar corporations, individual
performance and achievement, areas of responsibility, position tenure and
internal comparability. Salaries of certain executive officers were adjusted in
1996.

ANNUAL CASH BONUSES

    Executive officers of the Company are eligible for annual bonuses which may
be paid in the form of cash or as deferred compensation. Given the Company's
performance in 1996, the Compensation Committee approved 1996 bonuses for the
executives which were paid in 1997.

STOCK OPTION GRANTS

    As indicated above, an important element of the Company's compensation
philosophy is the desire to align the interests of the executive officers with
the long-term interests of the Company's stockholders. In order to meet this
desire, the Board of Directors adopted a performance-based stock option plan in
1991 for executive officers, key employees and branch managers of the Company
that allows participants to defer a portion of their bonus income in order to
reduce their option exercise price. Additionally, the Company's Board of
Directors and stockholders had previously approved the adoption of the Company's
1987 Stock Option Plan, pursuant to which the Company may grant stock options to
certain key employees and non-employee directors or officers, and in 1994 the
Board of Directors and stockholders approved the 1993 Stock Plan pursuant to
which the Company may grant stock options to certain key employees and
nonemployee directors and officers. The purpose of these plans is to attract,
retain and award executive officers and directors and to furnish incentives to
these persons to improve operations, increase profits and positively impact the
Company's long-term performance. Consistent with these objectives, the
Compensation Committee has approved the granting of options in 1997 for their
performance in 1996 to executive officers as follows: (i) under the 1991 Stock
Option Plan Mr. Foley, options to purchase 20,000 shares; Mr. Stone, options to
purchase 6,367 shares; (ii) under the 1987 Stock Option Plan as follows: Mr.
Foley, options to purchase 150,000 shares; Mr. Stone, options to purchase 30,000
shares; Mr. Willey, options to purchase 40,000 shares; Mr. Strunk, options to
purchase 20,000 shares; Mr. Puzder, options to purchase 20,000 shares; Mr.
Imparato, options to purchase 25,000 shares; Mr. Koll, options to purchase
25,000 shares; Mr. Lane, options to purchase 25,000 shares; Mr. Mahood, options
to purchase 25,000 shares; Mr. Talbot, options to purchase 25,000 shares; Mr.
Thompson, options to purchase 25,000 shares; (iii) under the 1993 Stock Option
Plan as follows: Mr. Puzder, options to purchase 25,000 shares.

April 22, 1997                                   Compensation Committee:


                                                 Daniel D. (Ron) Lane
                                                 J. Thomas Talbot
                                                 Cary H. Thompson


                                      -12-
<PAGE>   13



                            PERFORMANCE GRAPH

    Set forth below is a graph comparing cumulative total stockholder return on
the Company's common stock against the cumulative total return on the S & P 500
Index and against the cumulative total return of a peer group index comprised of
certain companies for the industry in which the Company competes (SIC code 6361
-- Title Insurance) for the five-year period ending December 31, 1996. This peer
group consists of the following companies: Alleghany Corporation, Capital
Guaranty Corporation, First American Financial Corporation, Investors Title
Insurance Company, Lawyers Title Corporation and Stewart Information Services
Corp. The peer group comparison has been weighted based on the Company's stock
market capitalization. The graph assumes an initial investment of $100.00 on
January 1, 1992, with dividends reinvested over the periods indicated.


                 COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN
                   OF COMPANY, INDUSTRY INDEX AND BROAD MARKET




                                     [GRAPH]


<TABLE>
<CAPTION>
                                                        Fiscal Year Ended
                                    ---------------------------------------------------------
           Company                  Dec-91     Dec-92    Dec-93    Dec-94    Dec-95    Dec-96
           -------                  ------     ------    ------    ------    ------    ------
<S>                                 <C>        <C>       <C>       <C>       <C>       <C>   
Fidelity National Financial Inc.    100.00     201.34    465.72    191.15    334.77    334.99
S&P 500 Index                       100.00     107.62    118.46    120.03    165.13    203.05
Peer Group                          100.00     138.10    167.51    143.40    203.81    235.77
</TABLE>


                    ASSUMES $100 INVESTED ON JANUARY 1, 1992
                           ASSUMES DIVIDEND REINVESTED
                      FISCAL YEAR ENDING DECEMBER 31, 1996



                                      -13-

<PAGE>   14
BOARD MEETINGS AND COMMITTEES

    The Board of Directors held a total of five formal meetings during the year
ended December 31, 1996. No director attended fewer than 80% of the aggregate of
all meetings of the Board of Directors or any committee in 1996.

    The Board presently has an Audit Committee, a Compensation Committee and an
Executive Committee, but does not have a Nominating Committee. The Audit
Committee, which consists of Messrs. Lane, Mahood and Talbot, met one time
during 1996. The Audit Committee meets independently with the internal audit
staff, representatives of the Company's independent auditors and representatives
of senior management. The Audit Committee reviews the general scope of the
Company's annual audit, the fee charged by the independent auditors and other
matters relating to internal control systems. In addition, the Audit Committee
is responsible for reviewing and monitoring the performance of non-audit
services by the Company's auditors. The Committee is also responsible for
recommending the engagement or discharge of the Company's independent auditors.

    The Compensation Committee currently consists of Messrs. Lane, Talbot and
Thompson. The Compensation Committee, either alone or in conjunction with other
Board committees, reviews and reports to the Board the salary, fee and benefit
programs designed for senior management, officers and directors with a view to
ensure that the Company is attracting and retaining highly-qualified individuals
through competitive salary, fee and benefit programs and encouraging continued
extraordinary effort through incentive rewards. The Compensation Committee did
not meet during 1996.

    The Company also has an Executive Committee consisting of Messrs. Foley,
Willey and Talbot. The Executive Committee may invoke all of the power and
authority of the Board of Directors in the management of the business and the
affairs of the Company, except those powers which, by law, cannot be delegated
by the Board of Directors. The Executive Committee did not meet during 1996.


                                      -14-
<PAGE>   15
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

    As of March 31, 1997, the following table sets forth the beneficial
ownership of the Common Stock of the Company by each director who owns shares,
by the director nominees, all executive officers named in the Summary
Compensation Table, all directors and executive officers as a group and by all
persons known by the Company to be the beneficial owners of more than 5% of the
Company's Common Stock. The information as to beneficial stock ownership is
based on data furnished by the persons concerning whom such information is
given.


<TABLE>
<CAPTION>
                                                           Shares of Common Stock
                                                             Beneficially Owned
                                                             ------------------
Name and Address                                   Number of Shares         Percent of Total
----------------                                   ----------------         ----------------
<S>                                               <C>                           <C>  
William P. Foley, II   
17911 Von Karman Ave., #500
Irvine, CA 92714                                   3,625,560.(1) (2)             26.0%

Richard H. Pickup
c/o Wedbush Morgan Securities, Inc.
500 Newport Center Drive
Suite 550
Newport Beach, CA  92660                           1,170,000.                     8.4%

Frank P. Willey 
17911 Von Karman Ave., #500
Irvine, CA 92714                                     659,845.(2)                  4.7%

William A. Imparato
1515 East Missouri Ave.,  Bld. A
Phoenix, AZ 85014                                     14,093.(2)                   *

Donald M. Koll 
4343 Von Karman Ave.
Newport Beach, CA 92660                                2,017.(2)                   *

Daniel D. (Ron) Lane 
14 Corporate Plaza
Newport Beach, CA 92660                               78,650.(2)                   *

Stephen C. Mahood    
500 Crescent Ct., #270
Dallas, TX 75201                                      27,044.(2)                   *

J. Thomas Talbot     
500 Newport Center Dr., #900
Newport Beach, CA 92660                               22,100.(2)                   *

Cary H. Thompson     
3731 Wilshire Blvd., 10th Flr.
Los Angeles, CA 90010                                 14,822.(2)                   *

Patrick F. Stone     
17911 Von Karman Ave., #500
Irvine, CA 92714                                      79,453.(2)                   *

Carl A. Strunk       
17911 Von Karman Ave., #500
Irvine, CA 92714                                     136,008.(2)                   *

Andrew F. Puzder     
17911 Von Karman Ave., #300
Irvine, CA 92714                                      43,473.(2)                   *

All directors and officers as a group (14          4,859,937.                    34.9%
 persons)
</TABLE>


----------
*  Represents less than 1%.




                                      -15-
<PAGE>   16
    (1) Included jn this amount are 1,559,050 shares held by Folco Development
Corporation, of which Mr. Foley and his spouse are the sole stockholders; Mr.
Foley is a "controlling person" of the Company.

    (2) Includes currently exercisable stock options for Mr. Foley of 254,759
shares under the 1991 Stock Option Plan and 544,500 shares under the 1987 Stock
Option Plan; currently exercisable stock options for Mr. Willey of 79,389 shares
under the 1991 Stock Option Plan and 99,825 shares under the 1987 Stock Option
Plan; includes currently exercisable stock options for Mr. Imparato of 12,100
shares under the 1993 Stock Option Plan; includes currently exercisable stock
options for Mr. Koll of 2,017 shares under the 1993 Stock Option Plan; currently
exercisable stock options for Mr. Lane of 12,100 shares under the 1993 Stock
Option Plan; currently exercisable stock options for Mr. Mahood of 7,058 shares
under the 1993 Stock Option Plan; currently exercisable stock options for Mr.
Talbot for 12,100 shares under the 1993 Stock Option Plan; currently exercisable
stock options for Mr. Thompson for 12,100 shares under the 1993 Stock Option
Plan; currently exercisable stock options for Mr. Stone of 69,060 shares under
the 1991 Stock Option Plan currently exercisable stock options for Mr. Strunk of
30,415 shares under the 1991 Stock Option Plan and 69,575 shares under the 1987
Stock Option Plan; and currently exercisable stock options for Mr. Puzder of
40,334 shares under the 1993 Stock Option Plan.




                                      -16-

<PAGE>   17



ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    The Company previously made investments in real property for investment or
operating purposes, most of which, as described below, were in partnerships
which included one or more officers of the Company. All such transactions were
approved by a majority of the non-interested directors of the Company. The
Company believes these transactions were for terms and at rates no less
favorable to the Company than those which could have been obtained from
unrelated parties. As previously announced, the Company intends to reduce and
divest itself of real estate investments as market conditions permit.

    The Company currently leases five of its facilities from partnerships or
other entities in which Manchester, or one or more of its officers have an
interest. These transactions are discussed below with respect to "Investments in
Partnerships" and "Transactions with Management and Others," respectively. The
Company believes that all such leases were on terms no less favorable than those
that could have then been obtained from unrelated parties.

    Manchester has interests in, or acts as property manager for, the following
real estate partnerships in which one or more officers of the Company have an
interest. Certain officers of the Company have made contributions to these
partnerships in exchange for partnership interests that cannot be valued until
the dissolution of each individual partnership. Fidelity Title is a tenant in
certain of the properties owned by the partnerships discussed below.

INVESTMENTS IN PARTNERSHIPS

    Folco Mission Valley Partners Limited Partnership ("Folco Mission Valley")
was formed in 1991 by Folco Development Corporation ("Folco"), a corporation of
which Mr. Foley and his spouse are the sole stockholders, as a 78% general
partner, and Fidelity National Title Insurance Company ("Fidelity Title"), as a
22% limited partner, for the purpose of acquiring from the Resolution Trust
Corporation an office building in San Diego County where Fidelity Title was the
sole tenant and conducted its San Diego County, California title operations.
Folco's 78% general partnership interest was assigned to Sussex Holdings, Ltd.
("Sussex"), an affiliate of Folco, in June 1992 and Fidelity Title's 22% limited
partnership interest was assigned to Manchester in January 1992. Fidelity Title
continues to lease the building for $28,272 per month, plus taxes, insurance and
other operating costs. This annual rental rate is a 30% discount based on its
lease with Folco Mission Valley.

    Goodyear Investors II General Partnership ("Goodyear II") was formed in 1986
by Manchester as a 50% partner, Folco as a 32.5% partner, Mr. Willey as a 2%
partner, and others, to purchase, for investment, unimproved real property
located in Maricopa County, Arizona. Manchester's interest in Goodyear II was
transferred to the Company in June, 1993. As of March 31, 1996, Manchester,
Kensington Development Corporation ("Kensington"), which is 90% owned by
Manchester and 10% by Fidelity National Title Insurance Company of California
("Fidelity California") and the Company have contributed $1,025,000 to Goodyear
II. Kensington held this interest from 1988 to March 1996. The Company may be
required to make annual contributions of its pro rata share of property taxes
and insurance costs. All general partners have made their required pro rata
capital contributions. The Company and the other general partners received pro
rata capital distributions in March 1995.

    Prospect Office Partners Limited Partnership ("Prospect Office Partners")
was formed in 1988 by Manchester as a combined 29.7% general and limited
partner, Mr. Foley as a 30.4% general partner, Mr. Willey as a 6.1% general
partner, and others, to develop an office building in Tustin, California.
Currently Manchester is a 41.62% general partner and a 28.38% limited partner
due to assignments of interests by other general and limited partners. Mr. Foley
and Mr. Willey no longer have any partnership interests in Prospect.
Approximately one-half of the building is leased by Fidelity Title for its
Orange County title operations. Manchester advanced to the partnership, at an
interest rate of 12% per annum, amounts necessary to fund operating deficits.
These advances were assigned to the Company in June 1993. The lease provides for
a monthly rent payment of $29,152. In May 1996, Fidelity Title purchased from
the FDIC, as receiver of Guardian Bank, a note secured by a deed of trust with
an unpaid principal balance of $3,413,560 and a first lien deed of trust
encumbering the Tustin office building. Fidelity Title purchased and continues
to hold the note under which Prospect Office Partners is the maker for a
discounted price of $3,072,204.


                                      -17-
<PAGE>   18
    Tustin Retail Limited Partnership ("Tustin Retail") was formed in 1988 by
Manchester as a combined 30% general and limited partner, Mr. Foley as a 30.7%
general partner, Mr. Willey as a 4.3% general partner, and others, to develop a
retail center in Tustin, California. Manchester advanced to the partnership, at
an interest rate of 12% per annum, amounts necessary to fund operating deficits.
The outstanding balance of these advances at December 31, 1995, and March 31,
1996, was $736,184. In addition, Tustin Retail is indebted to Manchester in the
amount of $303,500 which is evidenced by a promissory note which provides for
interest at 12% per annum and is secured by a second trust deed on the property.
These advances and loans were assigned to the Company in June 1993. In August
1994, CommerceBank filed a lawsuit (the "Lawsuit") against Tustin Retail (a
real estate partnership), Manchester (a general partner in Tustin Retail) and
Messrs. Foley and Willey (as general partners). The Lawsuit is essentially a
judicial foreclosure under a deed of trust securing a $4,350,000 note dated
February 18, 1992, to CommerceBank from Tustin Retail (the "Note"). In December
1995, the Federal Deposit Insurance Corporation, which took control of
CommerceBank, submitted a bid at the property foreclosure auction and acquired
the property for $2.9 million. The lease for this space provides for a monthly
lease payment of $20,100. On July 3, 1996, following a fair value hearing, the
court determined that the value of the property as of the foreclosure sale was
$4,580,680. Subsequently, the court entered a deficiency judgment against Tustin
Retail and the general partners in the amount of $480,545. In consideration of
Fidelity Title's payment of the deficiency amount, Tustin Retail assigned its
statutory redemption right to Fidelity Title. On November 21, 1996, Fidelity
Title redeemed the property for the amount of $2,792,470 and assumed control of
the operation of the property from the receiver.

    West Woodland Business Associates Limited Partnership ("West Woodland") was
formed in 1989 by Manchester as a 10% general partner, Mr. Foley as a 21.3%
general partner, Folco as a combined 20% general and limited partner, Mr. Willey
as a 2.5% general partner, and others, to develop an office building in
Woodland, California. In September 1991, Manchester sold its interest in the
partnership to Folco. See "Transactions with Management and Others" below.
Folco's interest was subsequently assigned to Sussex. Approximately one-half of
the building is leased by Fidelity California for its Yolo County title
operations. The lease provides for a monthly lease payment of $11,032. In March
1994, the lender on this project agreed to a modification of the credit
agreement substituting Sussex for Manchester and releasing Manchester from these
obligations. As of December 31, 1996, Manchester had not been released from its
general partnership obligation under the West Woodland Credit Agreement. West
Woodland remains indebted under a $940,000 first lien loan encumbering the
office building and a $250,000 unsecured loan. West Woodland refinanced both
loans with a new lender, thereby lowering the loans' interest accrual rates and
extending the terms of both loans for five (5) years.

    During 1994, the Company paid $2.3 million in order to acquire a 100%
ownership interest in an investment property at 7750 East Broadway, Tucson,
Arizona. The Company sold the property for a sales price of $2.4 million.

    Wilmac III Limited Partnership ("Wilmac III") was formed in 1987 to acquire
for investment unimproved real property in Maricopa County, Arizona. In December
1987, Manchester acquired a 24% limited partnership interest in Wilmac III, 30%
of the limited partnership units. Mr. Willey has a 8.2% combined general and
limited partnership interest and Mr. Strunk has a 1.6% limited partnership
interest. The partnership agreement requires all the limited partners to make
pro rata capital contributions to service the debt on the property. Manchester
has invested $696,000 in the partnership. Manchester's interest was assigned to
the Company in June 1993. It is not anticipated that additional capital
contributions will be required of the Company.

TRANSACTIONS WITH MANAGEMENT AND OTHERS

    In September 1991, Manchester sold 11 office buildings (the "office
buildings"), its partnership interest in West Woodland and Tucson Partners and
certain notes receivable to Folco for approximately the net book value of these
assets. The Company believes the amount paid approximated the fair market value
of these assets. This transaction resulted in a receivable to Manchester from
Folco evidenced by a promissory note in the original principal amount of
$1,492,000 and secured by subordinate deeds of trust on the office buildings
acquired. The promissory note provides for interest at the rate of 9.5% per
annum, monthly payments of $13,900 and additional payments of 15% of the net
sale proceeds of each office building subject to a subordinate deed of trust. In
June 1992, Folco assigned its interest in these



                                      -18-
<PAGE>   19
office buildings to Bilcar Limited Partnership ("Bilcar"), an affiliate of
Folco. The unpaid balance of this promissory note at December 31, 1996, was
$471,167.

    Prior to the sale, the office buildings were leased to Fidelity Title for
use in its title operations. All but one of these office buildings have been
sold to unaffiliated third parties in each instance. During 1996, Fidelity Title
continued to lease one of the office buildings from Bilcar under lease
agreements entered into in 1991 at the time of the sale and paid Bilcar $51,624
under these lease agreements.

    In July 1990, Lake Mortgage Corporation, a wholly-owned subsidiary of the
Company, made a $300,000 secured loan to a relative of Mr. Willey. The loan was
assigned to Fidelity Title in July 1990. This loan has been purchased by Mr.
Willey for full consideration.

                                      -19-
<PAGE>   20
                                   SIGNATURES

    Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                               Fidelity National Financial, Inc.


                                               By: /s/ WILLIAM P. FOLEY, II
                                                  ------------------------------
                                                  William P.  Foley, II
                                                  Chief Executive Officer

Date: April , 1997

    Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
             Signatures                  Title                        Date
             ----------                  -----                        ----
<S>                              <C>                             <C> 


/s/ WILLIAM P. FOLEY, II
-------------------------------  Chairman of the Board and       April 30, 1997
      William P. Foley, II       Chief Executive Officer
                                 (Principal Executive Officer)


/s/ PATRICK F. STONE
-------------------------------  Chief Operating Officer         April 30, 1997
      Patrick F. Stone


/s/ CARL A. STRUNK
-------------------------------  Executive Vice President        April 30, 1997
        Carl A. Strunk           Chief Financial Officer
                                 (Principal Financial and
                                 Accounting Officer)


/s/ FRANK P. WILLEY
-------------------------------  Director                        April 30, 1997
       Frank P. Willey


/s/ DANIEL D. (RON) LANE
-------------------------------  Director                        April 30, 1997
     Daniel D. (Ron) Lane


/s/ J. THOMAS TALBOT
-------------------------------  Director                        April 30, 1997
      J. Thomas Talbot


/s/ STEPHEN C. MAHOOD
-------------------------------  Director                        April 30, 1997
     Stephen C. Mahood


/s/ DONALD M. KOLL
-------------------------------  Director                        April 30, 1997
       Donald M. Koll


/s/ WILLIAM A. IMPARATO
-------------------------------  Director                        April 30, 1997
    William A. Imparato


/s/ CARY H. THOMPSON
-------------------------------  Director                        April 30, 1997
      Cary H. Thompson
</TABLE>



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