Real-Estate

Title company earnings rise in 2Q even as business slips


First American Financial’s title insurance segment ended the second quarter with a margin of 19.1%, a new record for the company. This compares with 17.1% in the first quarter and 16.3% in the second quarter of 2020.

Segment pretax income rose to $402.4 million, up from $321.6 million last quarter and $237.8 million one year prior. Net income at the holding company level was $302.3 million, compared with $233.6 million and $170.7 million.

The company’s results were the product of the strong purchase market as well as a commercial real estate rebound.

“We also benefited from high productivity bolstered by our ongoing data and title automation initiatives,” First American CEO Dennis Gilmore said in a press release. “In addition, we recognized a $44 million gain this quarter related to our venture investments program, which continues to provide strategic and financial benefit.”

However, open order counts are down from the prior quarter and the previous year. In the second quarter, First American opened 329,500 new orders, compared with 363,000 one quarter earlier and 351,300 one year prior.

Meanwhile, First American had closed orders of 271,100, versus 287,600 in the first quarter and 254,400 during last year’s second quarter.


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