First American Financial Reports Results for the Fourth Quarter and Full Year of 2021
—Reports Fourth Quarter Earnings of
Current Quarter Highlights
-
Total revenue of
$2.4 billion , up 10 percent compared with last year-
Title agent premiums up 20 percent to
$1.0 billion -
Title direct premium and escrow fees up 11 percent to
$862 million -
Commercial title revenues up 66 percent to
$377 million
-
Title agent premiums up 20 percent to
-
Net investment gains of
$7 million , or5 cents per diluted share -
Title Insurance and Services segment pretax margin of 16.3 percent- 15.3 percent excluding net investment gains
-
Specialty Insurance segment pretax margin of 9.2 percent including a pretax loss of$6 million in the company’s property and casualty business -
Repurchased 270,400 shares for a total of
$20 million at an average price of$74.38 -
Debt-to-capital ratio of 27.4 percent, or 22.2 percent excluding secured financings payable of
$538 million
Full Year 2021 Highlights
-
Total revenue a record
$9.2 billion , up 30 percent compared with last year-
Title agent premiums up 36 percent to a record
$3.8 billion -
Total direct premium and escrow fees up 20 percent to a record
$3.6 billion -
Commercial title revenues up 61 percent to a record
$1.0 billion
-
Title agent premiums up 36 percent to a record
-
Title Insurance and Services segment record pretax margin of 16.3 percent- 15.6 percent excluding net investment gains
-
Specialty Insurance segment pretax margin of 6.7 percent- The property and casualty business reduced policies-in-force by 71 percent during the year and the wind-down remains on track for completion in third quarter 2022
-
Cash flow from operations a record
$1.2 billion , up 12 percent compared with last year -
Venture portfolio year-end carrying value of
$673 million , including unrealized gains of$355 million - Return on equity a record 23.2 percent
- Closed acquisition of ServiceMac, a residential mortgage subservicing company
- Expanded geographic coverage of title plants to 1,600 counties
-
Repurchased 1.7 million shares for a total of
$99 million at an average price of$58.05 -
Raised the common stock dividend by 11 percent to an annual rate of
$2.04 per share - Named to the Fortune 100 Best Companies to Work For® list for the sixth consecutive year
Selected Financial Information
($ in millions, except per share data)
|
Three Months Ended |
|
Full Year Ended |
|||||||||
|
|
|
|
|||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
Total revenue |
$ |
2,373 |
$ |
2,151 |
$ |
9,221 |
$ |
7,086 |
||||
Income before taxes |
$ |
333 |
$ |
382 |
$ |
1,642 |
$ |
923 |
||||
|
|
|
|
|
|
|
|
|
||||
Net income |
$ |
260 |
$ |
280 |
$ |
1,241 |
$ |
696 |
||||
Net income per diluted share |
$ |
2.33 |
$ |
2.49 |
$ |
11.14 |
$ |
6.16 |
Total revenue for the fourth quarter of 2021 was
Total revenue for the full year of 2021 was
“The company’s fourth quarter performance marked a strong finish to a record year in 2021,” said
“During the year, we accelerated our innovation efforts by expanding our data capabilities and developing next-generation tools to digitize the closing process. The company expanded the geographic coverage of its title plants to 1,600 counties, significantly enhancing our data assets and strengthening our industry-leading platform to support title automation initiatives in the years ahead.
“Consistent with our commitment to return capital to shareholders, the company increased its common stock dividend by 11 percent to an annual rate of
($ in millions, except average revenue per order)
|
Three Months Ended |
|||||||
|
|
|||||||
|
2021 |
|
2020 |
|||||
Total revenues |
$ |
2,267 |
|
$ |
2,000 |
|
||
|
|
|
|
|
|
|
||
Income before taxes |
$ |
369 |
|
$ |
377 |
|
||
Pretax margin |
|
16.3 |
% |
|
18.9 |
% |
||
|
|
|
|
|
|
|
||
Title open orders(1) |
|
263,500 |
|
|
354,600 |
|
||
Title closed orders(1) |
|
239,300 |
|
|
295,100 |
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Total revenues |
$ |
377 |
|
$ |
227 |
|
||
Open orders |
|
33,400 |
|
|
32,100 |
|
||
Closed orders |
|
23,500 |
|
|
19,400 |
|
||
Average revenue per order |
$ |
16,100 |
|
$ |
11,700 |
|
||
(1) |
Total revenues for the
Information and other revenues were
Investment income was
Personnel costs were
Other operating expenses were
The provision for policy losses and other claims was
Depreciation and amortization expense was
Pretax income for the
($ in millions)
|
|
Three Months Ended |
||||||
|
|
|
||||||
|
|
2021 |
|
2020 |
||||
Total revenues |
|
$ |
120 |
|
|
$ |
141 |
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
$ |
11 |
|
|
$ |
27 |
|
Pretax margin |
|
|
9.2 |
% |
|
|
19.1 |
% |
Total revenues for the
Home warranty revenues were up 1 percent this quarter to
The wind-down of the property and casualty business remains on track for completion in the third quarter of 2022. At the close of the fourth quarter, policies-in-force had declined by 71 percent since the beginning of the year. The property and casualty business ended the quarter with a pretax loss of
Teleconference/Webcast
First American’s fourth quarter 2021 results will be discussed in more detail on
The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through
About First American
Website Disclosure
First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its
Presentation Change
Beginning in the fourth quarter of 2021, certain previously reported amounts have been updated to conform to our current practice of rounding to millions.
Forward-Looking Statements
Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in the performance of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; climate change, health crises, severe weather conditions and other catastrophe events; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified personnel; the company’s use of a global workforce; inability of the company’s subsidiaries to pay dividends or repay funds; and other factors described in the company’s quarterly report on Form 10-Q for the quarter ended
Use of Non-GAAP Financial Measures
This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted earnings per share, and adjusted pretax margins for the company, its title insurance and services segment and its specialty insurance segment. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. Because not all companies use identical calculations, the presentation of these non-GAAP measures may not be comparable to other similarly titled measures of other companies.
|
||||||||||||
Summary of Consolidated Financial Results and Selected Information |
||||||||||||
(in millions, except per share amounts and title orders, unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Total revenues |
$ |
2,373 |
$ |
2,151 |
$ |
9,221 |
$ |
7,086 |
||||
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
$ |
333 |
$ |
382 |
$ |
1,642 |
$ |
923 |
||||
Income tax expense |
|
72 |
|
101 |
|
393 |
|
223 |
||||
Net income |
|
261 |
|
281 |
|
1,249 |
|
700 |
||||
Less: Net income attributable to noncontrolling interests |
|
1 |
|
1 |
|
8 |
|
4 |
||||
Net income attributable to the Company |
$ |
260 |
$ |
280 |
$ |
1,241 |
$ |
696 |
||||
|
|
|
|
|
|
|
|
|
||||
Net income per share attributable to stockholders: |
|
|
|
|
|
|
|
|
||||
Basic |
$ |
2.35 |
$ |
2.50 |
$ |
11.18 |
$ |
6.18 |
||||
Diluted |
$ |
2.33 |
$ |
2.49 |
$ |
11.14 |
$ |
6.16 |
||||
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per share |
$ |
0.51 |
$ |
0.46 |
$ |
1.94 |
$ |
1.78 |
||||
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||
Basic |
|
110.8 |
|
112.2 |
|
111.0 |
|
112.7 |
||||
Diluted |
|
111.4 |
|
112.5 |
|
111.4 |
|
113.0 |
||||
|
|
|
|
|
|
|
|
|
||||
Selected Title Insurance Segment Information |
|
|
|
|
|
|
|
|
||||
Title orders opened(1) |
|
263,500 |
|
354,600 |
|
1,275,000 |
|
1,470,900 |
||||
Title orders closed(1) |
|
239,300 |
|
295,100 |
|
1,050,700 |
|
1,043,800 |
||||
Paid title claims |
$ |
47 |
$ |
43 |
$ |
154 |
$ |
164 |
||||
|
|
|
|
|
|
|
|
|
||||
(1) |
||||||||||||
|
||||||
Selected Consolidated Balance Sheet Information |
||||||
(in millions, unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2021 |
|
2020 |
||
Cash and cash equivalents |
$ |
1,228 |
$ |
1,275 |
||
Investments |
|
10,596 |
|
7,151 |
||
|
|
1,806 |
|
1,573 |
||
Total assets |
|
16,451 |
|
12,796 |
||
Reserve for claim losses |
|
1,284 |
|
1,178 |
||
Notes and contracts payable |
|
1,648 |
|
1,011 |
||
Total stockholders’ equity |
$ |
5,767 |
$ |
4,910 |
||
|
||||||||||||||||
Segment Information |
||||||||||||||||
(in millions, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three Months Ended |
|
Title |
Specialty |
Corporate |
||||||||||||
|
Consolidated |
Insurance |
Insurance |
(incl. Elims.) |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct premiums and escrow fees |
$ |
974 |
|
$ |
862 |
$ |
112 |
|
$ |
— |
|
|||||
Agent premiums |
|
1,008 |
|
|
1,008 |
|
— |
|
|
— |
|
|||||
Information and other |
|
325 |
|
|
322 |
|
3 |
|
|
— |
|
|||||
Net investment income |
|
59 |
|
|
49 |
|
1 |
|
|
9 |
|
|||||
Net investment gains (losses) |
|
7 |
|
|
26 |
|
4 |
|
|
(23 |
) |
|||||
|
|
2,373 |
|
|
2,267 |
|
120 |
|
|
(14 |
) |
|||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||
Personnel costs |
|
642 |
|
|
612 |
|
21 |
|
|
9 |
|
|||||
Premiums retained by agents |
|
803 |
|
|
803 |
|
— |
|
|
— |
|
|||||
Other operating expenses |
|
364 |
|
|
337 |
|
18 |
|
|
9 |
|
|||||
Provision for policy losses and other claims |
|
143 |
|
|
75 |
|
68 |
|
|
— |
|
|||||
Depreciation and amortization |
|
40 |
|
|
39 |
|
1 |
|
|
— |
|
|||||
Impairment losses on exit of business |
|
— |
|
|
— |
|
— |
|
|
— |
|
|||||
Premium taxes |
|
28 |
|
|
27 |
|
1 |
|
|
— |
|
|||||
Interest |
|
20 |
|
|
5 |
|
— |
|
|
15 |
|
|||||
|
|
2,040 |
|
|
1,898 |
|
109 |
|
|
33 |
|
|||||
Income (loss) before income taxes |
$ |
333 |
|
$ |
369 |
$ |
11 |
|
$ |
(47 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Three Months Ended |
|
|
|
Title |
Specialty |
Corporate |
||||||||||
|
Consolidated |
Insurance |
Insurance |
(incl. Elims.) |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct premiums and escrow fees |
$ |
907 |
|
$ |
777 |
$ |
130 |
|
$ |
— |
|
|||||
Agent premiums |
|
839 |
|
|
839 |
|
— |
|
|
— |
|
|||||
Information and other |
|
284 |
|
|
280 |
|
4 |
|
|
— |
|
|||||
Net investment income |
|
65 |
|
|
53 |
|
2 |
|
|
10 |
|
|||||
Net investment gains |
|
56 |
|
|
51 |
|
5 |
|
|
— |
|
|||||
|
|
2,151 |
|
|
2,000 |
|
141 |
|
|
10 |
|
|||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||
Personnel costs |
|
549 |
|
|
515 |
|
22 |
|
|
12 |
|
|||||
Premiums retained by agents |
|
663 |
|
|
663 |
|
— |
|
|
— |
|
|||||
Other operating expenses |
|
332 |
|
|
301 |
|
21 |
|
|
10 |
|
|||||
Provision for policy losses and other claims |
|
166 |
|
|
81 |
|
85 |
|
|
— |
|
|||||
Depreciation and amortization |
|
38 |
|
|
36 |
|
2 |
|
|
— |
|
|||||
Impairment losses on exit of business |
|
(18 |
) |
|
— |
|
(18 |
) |
|
— |
|
|||||
Premium taxes |
|
24 |
|
|
22 |
|
2 |
|
|
— |
|
|||||
Interest |
|
15 |
|
|
5 |
|
— |
|
|
10 |
|
|||||
|
|
1,769 |
|
|
1,623 |
|
114 |
|
|
32 |
|
|||||
Income (loss) before income taxes |
$ |
382 |
|
$ |
377 |
$ |
27 |
|
$ |
(22 |
) |
|||||
|
||||||||||||||||
Segment Information |
||||||||||||||||
(in millions, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Year Ended |
|
|
Title |
Specialty |
Corporate |
|||||||||||
|
Consolidated |
Insurance |
Insurance |
(incl. Elims.) |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
||||||
Direct premiums and escrow fees |
$ |
3,598 |
$ |
3,100 |
$ |
498 |
|
$ |
— |
|
||||||
Agent premiums |
|
3,757 |
|
|
3,757 |
|
|
— |
|
|
— |
|
||||
Information and other |
|
1,215 |
|
|
1,203 |
|
|
13 |
|
|
(1 |
) |
||||
Net investment income |
|
215 |
|
|
188 |
|
|
7 |
|
|
20 |
|
||||
Net investment gains |
|
436 |
|
|
72 |
|
|
23 |
|
|
341 |
|
||||
|
|
9,221 |
|
|
8,320 |
|
|
541 |
|
|
360 |
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
||||||
Personnel costs |
|
2,350 |
|
|
2,235 |
|
|
90 |
|
|
25 |
|
||||
Premiums retained by agents |
|
2,987 |
|
|
2,987 |
|
|
— |
|
|
— |
|
||||
Other operating expenses |
|
1,323 |
|
|
1,198 |
|
|
89 |
|
|
36 |
|
||||
Provision for policy losses and other claims |
|
589 |
|
|
275 |
|
|
314 |
|
|
— |
|
||||
Depreciation and amortization |
|
158 |
|
|
152 |
|
|
6 |
|
|
— |
|
||||
Impairment losses on exit of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Premium taxes |
|
100 |
|
|
94 |
|
|
6 |
|
|
— |
|
||||
Interest |
|
72 |
|
|
21 |
|
|
— |
|
|
51 |
|
||||
|
|
7,579 |
|
|
6,962 |
|
|
505 |
|
|
112 |
|
||||
Income before income taxes |
$ |
1,642 |
|
$ |
1,358 |
|
$ |
36 |
|
$ |
248 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Year Ended |
|
|
Title |
Specialty |
Corporate |
|||||||||||
|
Consolidated |
Insurance |
Insurance |
(incl. Elims.) |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
||||||
Direct premiums and escrow fees |
$ |
2,988 |
|
$ |
2,490 |
|
$ |
498 |
|
$ |
— |
|
||||
Agent premiums |
|
2,759 |
|
|
2,759 |
|
|
— |
|
|
— |
|
||||
Information and other |
|
1,013 |
|
|
1,001 |
|
|
13 |
|
|
(1 |
) |
||||
Net investment income |
|
221 |
|
|
199 |
|
|
9 |
|
|
13 |
|
||||
Net investment gains |
|
105 |
|
|
86 |
|
|
12 |
|
|
7 |
|
||||
|
|
7,086 |
|
|
6,535 |
|
|
532 |
|
|
19 |
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
||||||
Personnel costs |
|
1,941 |
|
|
1,834 |
|
|
86 |
|
|
21 |
|
||||
Premiums retained by agents |
|
2,184 |
|
|
2,184 |
|
|
— |
|
|
— |
|
||||
Other operating expenses |
|
1,119 |
|
|
1,000 |
|
|
83 |
|
|
36 |
|
||||
Provision for policy losses and other claims |
|
580 |
|
|
263 |
|
|
317 |
|
|
— |
|
||||
Depreciation and amortization |
|
149 |
|
|
141 |
|
|
8 |
|
|
— |
|
||||
Impairment losses on exit of business |
|
55 |
|
|
— |
|
|
55 |
|
|
— |
|
||||
Premium taxes |
|
78 |
|
|
70 |
|
|
8 |
|
|
— |
|
||||
Interest |
|
57 |
|
|
17 |
|
|
— |
|
|
40 |
|
||||
|
|
6,163 |
|
|
5,509 |
|
|
557 |
|
|
97 |
|
||||
Income (loss) before income taxes |
$ |
923 |
|
$ |
1,026 |
|
$ |
(25 |
) |
$ |
(78 |
) |
||||
|
||||||||||||||||
Reconciliation of Pretax Margins and Earnings per Diluted Share |
||||||||||||||||
Excluding Net Investment Gains and Losses ("NIG(L)") |
||||||||||||||||
(in millions, except margin and per share amounts, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
2,373 |
|
$ |
2,151 |
|
$ |
9,221 |
|
$ |
7,086 |
|
||||
Less: NIG(L) |
|
7 |
|
|
56 |
|
|
436 |
|
|
105 |
|
||||
Total revenues excluding NIG(L) |
$ |
2,366 |
|
$ |
2,095 |
|
$ |
8,785 |
|
$ |
6,981 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income |
$ |
333 |
|
$ |
382 |
|
$ |
1,642 |
|
$ |
923 |
|
||||
Less: NIG(L) |
|
7 |
|
|
56 |
|
|
436 |
|
|
105 |
|
||||
Pretax income excluding NIG(L) |
$ |
326 |
|
$ |
326 |
|
$ |
1,206 |
|
$ |
818 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
14.0 |
% |
|
17.8 |
% |
|
17.8 |
% |
|
13.0 |
% |
||||
Less: Pretax margin impact of NIG(L) |
|
0.2 |
% |
|
2.2 |
% |
|
4.1 |
% |
|
1.3 |
% |
||||
Pretax margin excluding NIG(L) |
|
13.8 |
% |
|
15.6 |
% |
|
13.7 |
% |
|
11.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per diluted share (EPS) |
$ |
2.33 |
|
$ |
2.49 |
|
$ |
11.14 |
|
$ |
6.16 |
|
||||
Less: EPS impact of NIG(L) |
|
0.05 |
|
|
0.38 |
|
|
2.97 |
|
|
0.71 |
|
||||
EPS excluding NIG(L) |
$ |
2.28 |
|
$ |
2.11 |
|
$ |
8.17 |
|
$ |
5.45 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
2,267 |
|
$ |
2,000 |
|
$ |
8,320 |
|
$ |
6,535 |
|
||||
Less: NIG(L) |
|
26 |
|
|
51 |
|
|
72 |
|
|
86 |
|
||||
Total revenues excluding NIG(L) |
$ |
2,241 |
|
$ |
1,949 |
|
$ |
8,248 |
|
$ |
6,449 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income |
$ |
369 |
|
$ |
377 |
|
$ |
1,358 |
|
$ |
1,026 |
|
||||
Less: NIG(L) |
|
26 |
|
|
51 |
|
|
72 |
|
|
86 |
|
||||
Pretax income excluding NIG(L) |
$ |
343 |
|
$ |
326 |
|
$ |
1,286 |
|
$ |
940 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
16.3 |
% |
|
18.9 |
% |
|
16.3 |
% |
|
15.7 |
% |
||||
Less: Pretax margin impact of NIG(L) |
|
1.0 |
% |
|
2.2 |
% |
|
0.7 |
% |
|
1.1 |
% |
||||
Pretax margin excluding NIG(L) |
|
15.3 |
% |
|
16.7 |
% |
|
15.6 |
% |
|
14.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Specialty Insurance Segment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
120 |
|
$ |
141 |
|
$ |
541 |
|
$ |
532 |
|
||||
Less: NIG(L) |
|
4 |
|
|
5 |
|
|
23 |
|
|
12 |
|
||||
Total revenues excluding NIG(L) |
$ |
116 |
|
$ |
136 |
|
$ |
518 |
|
$ |
520 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax income |
$ |
11 |
|
$ |
27 |
|
$ |
36 |
|
$ |
(25 |
) |
||||
Less: NIG(L) |
|
4 |
|
|
5 |
|
|
23 |
|
|
12 |
|
||||
Pretax income excluding NIG(L) |
$ |
7 |
|
$ |
22 |
|
$ |
13 |
|
$ |
(37 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
9.2 |
% |
|
19.1 |
% |
|
6.7 |
% |
|
(4.7 |
)% |
||||
Less: Pretax margin impact of NIG(L) |
|
3.2 |
% |
|
2.9 |
% |
|
4.2 |
% |
|
2.4 |
% |
||||
Pretax margin excluding NIG(L) |
|
6.0 |
% |
|
16.2 |
% |
|
2.5 |
% |
|
(7.1 |
)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Totals may not sum due to rounding. |
||||||||||||||||
|
||||||||||||||||||
Expense and Success Ratio Reconciliation |
||||||||||||||||||
|
||||||||||||||||||
($ in millions, unaudited) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Total revenues |
$ |
2,267 |
|
$ |
2,000 |
|
$ |
8,320 |
|
$ |
6,535 |
|
||||||
Less: |
Net investment gains |
|
26 |
|
|
51 |
|
|
72 |
|
|
86 |
|
|||||
Net investment income |
|
49 |
|
|
53 |
|
|
188 |
|
|
199 |
|
||||||
Premiums retained by agents |
|
803 |
|
|
663 |
|
|
2,987 |
|
|
2,184 |
|
||||||
Net operating revenues |
$ |
1,389 |
|
$ |
1,233 |
|
$ |
5,073 |
|
$ |
4,066 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Personnel and other operating expenses |
$ |
949 |
|
$ |
816 |
|
$ |
3,433 |
|
$ |
2,834 |
|
||||||
Ratio (% net operating revenues) |
|
68.3 |
% |
|
66.2 |
% |
|
67.7 |
% |
|
69.7 |
% |
||||||
Ratio (% total revenues) |
|
41.9 |
% |
|
40.8 |
% |
|
41.3 |
% |
|
43.4 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in net operating revenues |
$ |
156 |
|
|
|
|
$ |
1,007 |
|
|
|
|
||||||
Change in personnel and other operating expenses |
|
133 |
|
|
|
|
|
599 |
|
|
|
|
||||||
Success Ratio(1) |
|
85 |
% |
|
|
|
|
59 |
% |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Change in personnel and other operating expenses divided by change in net operating revenues. | ||||||||||||||||||
|
||||||||||||||||||||
Supplemental Direct Title Insurance Order Information(1) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q421 |
|
Q321 |
|
Q221 |
|
Q121 |
|
Q420 |
||||||||||
Open Orders per Day |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase |
|
1,849 |
|
|
2,191 |
|
|
2,381 |
|
|
2,275 |
|
|
1,925 |
|
|||||
Refinance |
|
1,342 |
|
|
1,771 |
|
|
1,752 |
|
|
2,652 |
|
|
2,923 |
|
|||||
Refinance as % of residential orders |
|
42 |
% |
|
45 |
% |
|
42 |
% |
|
54 |
% |
|
60 |
% |
|||||
Commercial |
|
539 |
|
|
540 |
|
|
579 |
|
|
537 |
|
|
509 |
|
|||||
Default and other |
|
520 |
|
|
479 |
|
|
436 |
|
|
491 |
|
|
273 |
|
|||||
Total open orders per day |
|
4,250 |
|
|
4,981 |
|
|
5,148 |
|
|
5,954 |
|
|
5,629 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Closed Orders per Day |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase |
|
1,687 |
|
|
1,782 |
|
|
1,873 |
|
|
1,495 |
|
|
1,740 |
|
|||||
Refinance |
|
1,299 |
|
|
1,435 |
|
|
1,628 |
|
|
2,506 |
|
|
2,430 |
|
|||||
Refinance as % of residential orders |
|
44 |
% |
|
45 |
% |
|
47 |
% |
|
63 |
% |
|
58 |
% |
|||||
Commercial |
|
379 |
|
|
316 |
|
|
315 |
|
|
272 |
|
|
307 |
|
|||||
Default and other |
|
495 |
|
|
416 |
|
|
420 |
|
|
442 |
|
|
207 |
|
|||||
Total closed orders per day |
|
3,860 |
|
|
3,948 |
|
|
4,236 |
|
|
4,715 |
|
|
4,684 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Revenue per Order (ARPO) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase |
$ |
3,031 |
|
$ |
3,044 |
|
$ |
3,001 |
|
$ |
2,794 |
|
$ |
2,826 |
|
|||||
Refinance |
|
1,254 |
|
|
1,246 |
|
|
1,260 |
|
|
1,228 |
|
|
1,228 |
|
|||||
Commercial |
|
16,070 |
|
|
12,993 |
|
|
11,078 |
|
|
9,838 |
|
|
11,703 |
|
|||||
Default and other |
|
120 |
|
|
179 |
|
|
161 |
|
|
128 |
|
|
55 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total ARPO |
$ |
3,339 |
|
$ |
2,884 |
|
$ |
2,651 |
|
$ |
2,118 |
|
$ |
2,457 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Business Days |
|
62 |
|
|
64 |
|
|
64 |
|
|
61 |
|
|
63 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Totals may not sum due to rounding. |
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