Fidelity National Says 1Q Title Business Best Since 2004

Fidelity National Financial Inc., the No. 1 underwriter of title insurance according to the American Land Title Association, said 1Q13 was its strongest quarter in that business since 2004.

The company had net earnings of $90 million, up from $74 million one year prior. Fidelity National Title Group had pretax earnings of $171 million, up from $129 million in 1Q12.

Meanwhile, the company’s investments in restaurant chains and an automobile equipment manufacturer had combined pretax losses of $5 million in 1Q13.

Direct orders opened in 1Q13 totaled 643,000, compared with 651,000 in the same period in 2012.

Open commercial orders were 18,700, down from 19,800 in 1Q12, but the revenue from this segment increased by $5 million to $88 million as the fee per file increased by $1,200 to $8,300.

CEO George Scanlon said its residential business is seeing its share of open orders from purchase transactions continue to increase. In 1Q13, 38% of total open orders were from purchase transactions, up from 36% in 4Q12.

Furthermore, 41% of the open orders in March were from purchases, he said.

Direct title premium revenue for 1Q13 was $414 million while agent-generated title premium revenue was $524 million. One year prior they were $354 million and $414 million, respectively.

Title claim loss expense in 1Q13 was $65 million, compared with $54 million in 1Q12.

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