Fidelity National Financial, Inc. reports operating results for the three-month and twelve-month periods ended 31 December2008. The results include the impact of Commonwealth Land Title Insurance Company, Lawyers Title Insurance Corporation and United Capital Title Insurance Company from their acquisition date of 22 December 2008.
“We continued to operate in challenging markets during the fourth quarter as low order volumes in October and November caused us to continue to aggressively reduce expenses in our title operations,” says P. Foley William, chairman. “However, there were two positive events which occurred during the month of December that provide momentum and renewed optimism as we enter 2009.
“First, we closed on the acquisition of Commonwealth Land Title, Lawyers Title and United Capital Title on December 22, 2008. The acquisition of these underwriters makes FNF the nation’s largest title insurer by market share. We now have reserve for claim losses of more than $2.6 billion, which are approximately twice that of any other title company, reserves plus stockholders’ equity of approximately $5.4 billion and a cash and investment portfolio of more than $4.7 billion. In the first month since the acquisition, we have been very aggressive on reducing costs in those underwriters.”
“Through the end of January, we have eliminated approximately 1,500 of the 5,500 employees that we inherited at closing, a reduction of approximately 27% of the existing workforce. We have also closed about 125 offices in the first month of ownership. In total, we have eliminated run-rate savings of approximately $180 million.”
“The second positive event was the significant increase in open order counts in the months of December and January. Absolute total open order counts more than doubled in December versus their November level, with per day open orders of 9,300 increasing by approximately 65%.
“January open order counts improved further from the significant December increase, as we opened approximately 14,200 orders per day in the month of January, more than a 50% increase over December.”
“The significantly stronger order count levels and the acquisition of Commonwealth Land Title, Lawyers Title and United Capital Title both provide significant opportunities for our title business as we move into 2009.”
L.D.