Fidelity National Financial See Some Gains Despite Challenges

The title insurance business at Fidelity National Financial Inc., Jacksonville, Fla., proved able to generate pre-tax earnings of nearly $23 million in a challenging first quarter, up from $7.3 million for the first quarter of 2009. Even though it had negative cash flow of $88 million during the period, the company as a whole posted first quarter 2010 earnings of $16.5 million, compared with a loss of $12.4 million one-year prior. Direct orders opened declined from 746,000 one year ago to 511,100 for the most recent period. Still, said William P. Foley II, FNF chairman, "Open order counts were relatively stable during the quarter, after the first two weeks of January, as we averaged between 8,500 and 8,800 open orders per day from the second half of January through March. Closed order counts were seasonally soft during the first quarter and were further impacted by new RESPA closing requirements. We also continued to aggressively manage our cost structure in the first quarter, eliminating nearly 600 additional positions during those three months. The two and a half months of consistent open order activity, the first quarter seasonal delay in order closings and the continued cost reductions should allow us to produce stronger results in the title business during the second quarter."