Mortgages

Return to Article

Fidelity National Financial Reports 1Q Loss

The Associated Press

JACKSONVILLE, Fla. (AP) — Title insurance provider Fidelity National Financial Inc. said Monday it posted a loss for its first quarter, hurt by a slow start in its title business and higher expenses.

For the quarter ended March 31, the company reported a loss after paying preferred dividends of $12.4 million, or 6 cents per share, compared with a profit of $27.2 million, or 13 cents per share, a year ago.

Revenue jumped 21 percent to $1.36 billion from $1.13 billion.

Analysts polled by Thomson Reuters expected much higher profit of 12 cents per share on revenue of $1.48 billion.

The company's results were hurt by higher expenses for personnel, agent commissions, claim losses and other costs.

The company said strong open order volumes continued in the quarter. But rising demand for mortgage refinancing increased the time it took to close orders. Fidelity National also said operating performance in its title business began slowly and didn't pick up until March.

Title insurance is part of the closing costs people pay when they buy or refinance a home. The insurance protects against potential losses if there's a problem with the property's ownership records. Title insurers have struggled since the middle of last year when the housing market took a nosedive.

Shares rose 15 cents to close at $19.06.