First American Q4 2019 Earnings Report
Key Takeaways
First American Financial Corporation reported a 22 percent increase in total revenue to $1.7 billion for the fourth quarter of 2019. Net income was $224.0 million, or $1.97 per diluted share. The company's title segment delivered a record annual pretax margin of 16.1 percent, and the specialty insurance segment achieved a pretax margin of 13.2 percent, its highest since 2014.
Total revenue of $1.7 billion, up 22 percent compared with last year.
Closed title orders up 27 percent, driven by a 131 percent increase in refinance orders.
Title Insurance and Services segment pretax margin of 17.8 percent.
Specialty Insurance segment pretax margin of 16.7 percent.
First American
First American
First American Revenue by Segment
Forward Guidance
First American is optimistic about market conditions and expects to continue to deliver strong financial results in 2020. The company raised the dividend by 5 percent in January.
Positive Outlook
- Optimistic about market conditions.
- Expect to continue to deliver strong financial results.
- Raised the dividend by 5 percent in January.
- Acquisition of Docutech expected to close by the end of March and be accretive to earnings in 2020.
- Continued focus on operational efficiency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income