Title margins at Fidelity National Financial increased by 200 basis points in 2Q13 over the year prior, the best for any second quarter at the underwriter since 2003, leading to 32% growth in adjusted pre-tax title earnings.
GAAP net income for the period is $146 million, down slightly from $147 million one year prior. But second quarter results were affected by a $20 million pre-tax charge related to employment litigation and $2.5 million of pre-tax expenses connected with
The title business contributed $265 million in adjusted pre-tax earnings to FNF’s bottom line in 2Q13, up from $201 million the previous year. FNF’s results also include the company’s restaurant business and auto part manufacturer investments.
FNF had 672,000 of title orders opened during the period, compared with 504,000. But in what could be a sign that rising rates are impacting home sales and mortgage volume, the number of orders opened fell to 188,000 in June from 240,000 in May.
On the commercial side, open orders were flat at 20,300 during the second quarter. But the fee per file increased to $9,100 from $7,900 for 2Q12.
There was an increase in title claim loss expense to $79 million for 2Q13 from $77 million one year prior.
CEO George Scanlon, in the company’s press release, said the interest rate rise in June and July “adversely impacted refinance orders.”
As a result FNF has reduced headcount by nearly 670 positions in the past six weeks, he said.
