Earnings Remain Strong Although Orders Decline
Tuesday, August 15, 2017
- Fidelity National Financial
Fidelity National Financial reported second quarter pre-tax earnings from its title insurance business of $294 million compared to $281 million the same period a year ago. The adjusted pre-tax title margins were 16.2 percent. Fidelity opened 524,000 direct orders during the second quarter versus 577,000 direct orders opened during the second quarter of 2016. Meanwhile, the company closed 370,000 direct orders during the second quarter versus 401,266 direct closed orders during Q2 2016. During the latest quarter, Fidelity paid $57 million in claims, down from $73M paid during the second quarter of 2016.
- First American Financial Corporation
First American Financial Corporation reported that pre-tax income for its title insurance and services segment rose from $172.4 million in the second quarter of last year to $197.3 million in the second quarter of 2017. Pre-tax margins rose from 13.7% to 14.8%. Direct open orders were 299,600 in the second quarter of 2017 compared to 347,800 in the year-ago quarter. Average revenue per direct title order grew to $2,294 while the provision for losses was $43.5 million in the quarter, or 4% of title premiums and escrow fees.
- Stewart Information Services
Stewart Information Services reported that its title segment generated $39.5 million in pre-tax income during the second quarter of 2017. This compared to $51.3 million in pre-tax income during the same period a year ago. During the second quarter of 2017, Stewart’s direct operations opened 107,217 orders, compared to 124,299 direct orders during the same period a year ago, Stewart paid $24.5 million in claims during the latest quarter, up from $17.2 million paid during the second quarter of 2016.
- Old Republic International
Old Republic International reported that pre-tax operating income from its Title Insurance Group rose to $65 million in the second quarter of 2017 compared to $44.6 million in the second quarter of last year. The claims ratio dropped to 2% in the second quarter as compared to 5.1% in the second quarter of 2016. The total operating expense ratio remained virtually unchanged.