This Day On The Street
Continue to site
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 Reports Second Quarter 2014 Results

First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today announced financial results for the second quarter ended June 30, 2014.

Current Quarter Highlights
  • Total revenue down 11 percent compared with last year
    • Refinance closed orders down 57 percent
  • Title Insurance and Services segment pretax margin of 8.0 percent
  • Title Insurance and Services segment loss ratio of 8.9 percent
    • Includes $25.1 million reserve strengthening, primarily due to a commercial claim from policy year 2007
  • Average revenue per direct title order up 27 percent compared with last year
    • Mix continues to shift to higher-premium purchase and commercial transactions
    • Average revenue per purchase transaction up 6 percent
  • Commercial revenues of $132.1 million, down 4 percent compared with last year
    • Commercial revenues up 7 percent in the first half of 2014
  • Specialty Insurance segment total revenues up 9 percent, with a pretax margin of 12.1 percent
  • Debt-to-capital ratio of 15.1 percent as of June 30, 2014
  • Amended existing revolving credit facility with improved terms
    • Increased capacity to $700 million and extended term to May 2019

Selected Financial Information ($ in millions, except per share data)

For the Three Months Ended

June 30,
2014                 2013
Total revenues $ 1,150.0                 $ 1,288.5
Income before taxes 76.5 59.2
Net income $ 50.6 $ 34.7
Net income per diluted share 0.47 0.31

Total revenues for the second quarter of 2014 were $1.1 billion, a decline of 11 percent relative to the second quarter of 2013. Net income in the current quarter was $50.6 million, or 47 cents per diluted share, compared with net income of $34.7 million, or 31 cents per diluted share, in the second quarter of 2013. The current quarter results include net realized investment gains of $6.3 million, or 4 cents per diluted share, compared with net realized investment gains of $4.5 million, or 2 cents per diluted share, in the same quarter of last year. The current quarter also benefited from a 34 percent tax rate, primarily due to a lower effective foreign tax rate, as well as the utilization of foreign net operating loss carryforwards.

1 of 6

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.01 -1.20%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $226.77 -2.40%
YHOO $37.40 3.90%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs