We are very pleased with our record-setting third quarter results as we increased revenues 31% to $3.9 billion, which resulted in adjusted net earnings growth of 39% to $604 million, both as compared with the 2020 third quarter.
Importantly, we grew our holding company cash balance by 25% to $1.5 billion as compared to $1.2 billion at the end of the second quarter of 2021.
During the quarter, we took advantage of exceptional interest rates and issued $450 million of 3.2% senior notes with a 30-year maturity.
We also funded a $400 million intercompany loan with F&G to fund their growth.
We delivered adjusted pre-tax title earnings of $669 million, with an adjusted pre-tax title margin of 21.7% in the 2021 third quarter compared with adjusted pre-tax title earnings of $528 million and an adjusted pre-tax title margin of 21.2% in the 2020 comparable quarter.
We continue to be very pleased with the results this quarter as we open new channels of distribution and accelerate our sales growth, driving assets under management at the end of the third quarter to nearly $35 billion, an increase of 9% in the quarter.
Total assets under management have grown 31% since we closed the acquisition, and we are well on our way toward our goal of more than doubling assets under management in five years.
Share buybacks are an important component of our strategy, and we were active once again, having purchased 1.3 million shares for $61 million at an average price of $46.29 per share through the third quarter.
In the first week of October, we reached our $500 million share buyback target, which we announced in the fourth quarter of 2020.
Lastly, we announced yesterday a quarterly cash dividend of $0.44 per share, an increase of 10% from our previous quarterly dividend.
For the third quarter, we had generated adjusted pre-tax title earnings of $669 million, a 27% increase over the third quarter of 2020.
Our adjusted pre-tax title margin was 21.7%, a 50 basis point increase over the prior year quarter.
The results were driven by a 25% increase in average fee per file, a 9% increase in daily purchase orders closed and a 31% increase in total commercial orders closed, partially offset by a 21% decrease in daily refinance orders closed.
Total commercial revenue was a record $366 million compared with the year-ago quarter of $216 million due to the 31% increase in closed orders and a 28% increase in total commercial fee per file.
For the third quarter, total orders opened averaged 10,800 per day, with July at 11,000, August at 11,000 and September at 10,300.
For October, total orders opened were 9,300 per day, as we saw solid demand and purchase activity, while the refinance market continues to moderate as compared with last year's robust levels.
Daily purchase orders opened were up 1% in the quarter versus the prior year.
And for October, daily purchase orders opened were up 4% versus the prior year.
Refinance orders opened decreased by 33% on a daily basis versus the third quarter of 2020.
For October, daily refinance orders opened were down 38% versus the prior year.
Lastly, total commercial orders opened per day increased by 15% over the third quarter of 2020.
For October, total commercial opened orders per day were up 15% over October of 2020.
Importantly, commercial opened orders per day have exceeded 1,000 orders each of the last nine months, having consistently been in record territory and will provide momentum as we close out 2021 and begin 2022, given the longer tail for closings in commercial as compared with residential.
Looking forward, while refinance volumes may continue to moderate, it is important to note that direct refinance revenue only contributed approximately 19% of total direct revenue in the third quarter compared with 27% in the third quarter of last year.
On a sequential basis, refinance revenue contributed 21% of total direct revenue in the second quarter and 33% in the first quarter of this year.
Additionally, refinance fee per file in the third quarter was approximately $1,000 as compared with nearly $3,400 for purchase, providing a strong counterbalance to declines in refinance revenue.
During the quarter, we reached a significant milestone as more than two million consumers have now been invited to begin their transactions on our digital inHere Experience Platform through Start inHere, and more than 1.3 million have chosen to do so.
We achieved record sales in the third quarter, surpassing $3 billion in total sales for the quarter and $7 billion in total sales for the first nine months of the year, which in turn have boosted ending assets under management to nearly $35 billion as of September 30, as Randy mentioned previously.
In the third quarter, annuity sales in our retail channel were $1.5 billion, up 43% from the third quarter of 2020 and down slightly from the record sequential quarter.
F&G has issued $1.2 billion of funding agreement-backed notes in September, following our inaugural $750 million issuance in June.
F&G has also successfully entered the pension risk transfer market, closing $371 million of transactions in the third quarter and securing an additional $564 million of transactions in the fourth quarter.
Based on transactions secured to date, F&G will assume approximately $900 million in pension liabilities and provide annuity benefits to over 22,000 retirees.
Overall, institutional sales were $2.6 billion for the first nine-month period.
And with the additional $500 million pension risk transfer volume secured in the fourth quarter, we're on track to achieve $3 billion of institutional sales in 2021.
With these strong top line results, average assets under management, or AAUM, has reached $32.7 billion, driven by approximately $2.3 billion of net new business flows in the third quarter.
Total product net investment spread was 285 basis points in the third quarter and FIA net investment spread was 335 basis points.
Adjusting for favorable notable items, total product spread was 248 basis points and FIA spread was 293 basis points, both in line with our historical trends and consistent with our disciplined approach to pricing.
First, F&G's net earnings attributable to common shareholders of $373 million for the third quarter included a $224 million onetime favorable adjustment from an actuarial system conversion, reflecting modeling enhancements and other refinements and represents less than 1% of reserves.
Next, F&G's adjusted net earnings for the third quarter were $101 million.
Net favorable items in the period were $27 million.
Adjusted net earnings, excluding notable items, were $74 million, up from $70 million in the second quarter.
We generated $3.9 billion in total revenue in the third quarter, with the Title segment producing $2.9 billion, F&G producing $927 million and the Corporate segment generating $44 million.
Third quarter net earnings were $732 million, which includes net recognized losses of $154 million versus net recognized gains of $73 million in the third quarter of 2020.
Excluding net recognized gains and losses, our total revenue was $4 billion as compared with $2.9 billion in the third quarter of 2020.
Adjusted net earnings from continuing operations were $604 million or $2.12 per diluted share.
The Title segment contributed $521 million.
F&G contributed $101 million.
And the Corporate segment had an adjusted net loss of $18 million.
Excluding net recognized losses of $169 million, our Title segment generated $3.1 billion in total revenue for the third quarter compared with $2.5 billion in the third quarter of 2020.
Direct premiums increased by 22% versus the third quarter of 2020.
Agency premiums grew by 34%.
And escrow title-related and other fees increased by 14% versus the prior year.
Personnel costs increased by 15%.
And other operating expenses increased by 17%.
All in, the Title business generated a 21.7% adjusted pre-tax title margin, representing a 50 basis point increase versus the third quarter of 2020.
Interest and investment income in the Title and Corporate segments of $27 million declined $4 million as compared with the prior year quarter due to decreases in bond interest, dividends received on preferred stock and a slight decrease in income from our 1031 Exchange business.
In September, we closed an issuance of $450 million of 3.2% senior notes due September of 2051.
We also put in place a $400 million intercompany loan to fund F&G's growth and to better optimize their capital structure.
FNF debt outstanding was $3.1 billion on September 30 for a debt-to-total capital ratio of 24.9%.
Our title claims paid of $55 million, were $45 million lower than our provision of $100 million for the third quarter.
The carried reserve for title claim losses is currently $95 million or 5.9% above the actuary's central estimate.
We continue to provide for title claims at 4.5% of total title premiums.
Our title and corporate investment portfolio totaled $6.7 billion at September 30.
Included in the $6.7 billion are fixed maturity and preferred securities of $2.2 billion with an average duration of 2.8 years and an average rating of A2, equity securities of $1.2 billion, short-term and other investments of $500 million and cash of $2.8 billion.
We ended the quarter with $1.5 billion in cash and short-term liquid investments at the holding company level.
Our current level of cash generation supports the following: first, FNF's $500 million annual common dividend; next, our $100 million annual interest expense on F&F debt; third, our $400 million 5.5% senior notes, which are due in September of 2022; and finally, our share repurchases.
During the quarter, we purchased 1.3 million shares at an average purchase price of $46.29 per share.
And in the first week of October, we completed our previously announced $500 million share repurchase plan.
In total, we repurchased 12 million shares at an average price of $41.62 since announcing the plan in October of last year.
Capital funding for this growth includes $400 million in debt capital from FNF in the third quarter as well as third-party financial reinsurance with an existing partner in the fourth quarter.
Based on current forecasts, we expect to contribute $200 million to $300 million of new equity capital in 2022.
And with F&G's 25% debt-to-capital target, we believe F&G has ample financial flexibility to execute on our growth strategy and capture market opportunities.
Beyond that horizon and subject to ongoing sales momentum, there may be an additional capital investment required in 2023, which could take the form of converting our existing $400 million term loan to equity capital.

Summary:
We delivered adjusted pre-tax title earnings of $669 million, with an adjusted pre-tax title margin of 21.7% in the 2021 third quarter compared with adjusted pre-tax title earnings of $528 million and an adjusted pre-tax title margin of 21.2% in the 2020 comparable quarter.
We generated $3.9 billion in total revenue in the third quarter, with the Title segment producing $2.9 billion, F&G producing $927 million and the Corporate segment generating $44 million.
Adjusted net earnings from continuing operations were $604 million or $2.12 per diluted share.