Fidelity National Financial Inc., Jacksonville, Fla., reported net earnings of $147 million for the second quarter, up from $80 million one year prior with its pretax title margin rising 280 basis points during that time frame.
The company saw a 30% increase in business as new residential title orders in the three-month period totaled 667,500 versus 514,000 in 2Q11.
Commercial orders—which carry higher profit margins—increased by 600 over 2Q11, to 19,700 and brought in $98.3 million in revenue, up 4%.
Fidelity National CEO George P. Scanlon noted that even though the increase in residential title revenue is largely a result of the current refinance boom, it saw a 7% increase in purchase-related orders.
Total title premiums (both direct and agent-generated) totaled $946 million, up from $842 million for 2Q11.
But title claim loss expense increased as well—to $77 million for 2Q12 from $57 million one year prior.
Pretax earnings for the title business, including investment gains, came to $202 million, compared with 2Q11's $141 million.
For the first time, FNF is including its restaurant investments as a distinct reporting segment, and that business added pretax earnings of $63 million for the quarter.
