Title insurance giant Fidelity National Financial Inc., earned $140 million in the second quarter, a 52% jump from the same period a year ago.
The strong showing came despite a decline in closed title orders which decreased 31% from 2Q09.
William P. Foley, chairman of the Jacksonville, Fla.-based company, said the firm benefited from increasing profit margins in title insurance, despite the decline in business.
"Resale transactions were 54% of closed orders during the second quarter versus 34% in last year's second quarter, with this mix shift primarily causing a 28% increase in fee per file over the second quarter of 2009," FNF said.
During the quarter, the share of open orders due to refinancings began to grow. Foley said that in July, the open orders count continued to increase due to low rates. This is helping the company provide momentum in the third quarter.
Actual title claims paid increased to $122 million in the quarter, from $77 million one year prior.
Earnings at FNF also benefited from the May sale of its remaining stake in Sedgwick Claims Management Services Inc., which resulted in a pre-tax gain of $98 million.
