This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First American Financial's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Turning to our Specialty Insurance segment, we achieved pretax earnings of $7 million, for a 9% margin. The overall loss ratio was 60%, compared to 53% in the third quarter of last year. During the quarter, we experienced adverse development for title claim losses, primarily related to policy year 2007, resulting in a $14.7 million reserve charge.

In addition, as mentioned on last quarter's call, we've been engaged in a multi-stage mediation process with Bank of America and FiServ that was scheduled to conclude at the end of August. The parties agreed to delay the final stage until the fourth quarter. As part of that process, we’ve engaged the services of statisticians and other experts to help us analyze the claims involved in the lawsuit. As a result of that analysis, we’ve estimated our financial exposure to be between $13 million and $42 million, with $13 million being our best estimate of the Company's financial exposure. We've booked a reserve and offered to settle the case for that amount.

Let me briefly comment on recent developments concerning CoreLogic. On August 29, CoreLogic announced that its Board was exploring options aimed at enhancing shareholder value, including a potential sale of the entire Company. We own over 8% of CoreLogic and are the Company's largest shareholder. Therefore we have a strong interest in the outcome of that process.

Since their announcement and in a series of SEC filings and communication with CoreLogic, we’ve made our interest known. Last week, we delivered a letter to their Board indicating that in the current environment, we do not believe the Company could be sold at a price that is in the best interest of long-term shareholders. We also advised their Board that a better solution is for CoreLogic to focus on its core business.

In the event, they decide to pursue a sale anyway. We submitted a non-binding offer for the Company. We've also made a non-binding offer to purchase certain of their assets that we believe to be non-core to them. While we are not certain as to the timing or ultimate outcome of the CoreLogic process, we are monitoring the situation closely.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,122.20 -405.83 -2.46%
S&P 500 1,927.84 -44.34 -2.25%
NASDAQ 4,683.2210 -93.2870 -1.95%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs