first american financial公佈2024年第三季度業績報告

2024年10月23日，位於加州聖安娜市－first american financial公司（NYSE: FAF），一家領先的房地產業標題、結算和風險解決方案提供商，也是其行業數位轉型的領導者，今天宣佈了截至2024年9月30日的第三季度財務業績。

本季度亮點

- 由於投資組合再平衡專案，導致淨投資損失為31200萬美元，每股稀釋損失為2.28美元

經過調整，總營業收入為17億美元，較去年增加4%。

- 截至目前為止，已回購110萬股，總金額為6000萬美元，平均價格為54.64美元

選定的財務資訊

（以百萬美元為單位，每股數據除外）

2024年第三季的總營業收入為14億美元，較2023年第三季下降5％。本季的凈損失為10400萬美元，每股稀釋後1.00美元，較2023年第三季的凈虧損200萬美元，每股稀釋後2分鐘相比。本季的調整凈利潤為13800萬美元，每股稀釋後1.34美元，較去年第三季的12800萬美元，每股稀釋後1.22美元有所提高。本季的淨投資損失為31200萬美元，每股稀釋後2.28美元，較去年第三季的淨投資損失16400萬美元，每股稀釋後1.17美元有所增加。本季的購買相關無形攤銷為800萬美元，每股稀釋後6分鐘，較去年第三季的1000萬美元，每股稀釋後7分鐘有所降低。本季的有效稅率為28.4％。排除淨實現投資損失和與購買相關的無形無形攤銷的影響，稅率將為20.5％，本季受益於本季承認的600萬美元研發和外國稅收抵減。

“在第三季度，市場狀況逐步改善，調整後營業收入增長4%，這是自2022年第二季度以來首次出現年度增長，”第一美國金融公司首席執行官肯・迪喬吉奧(Ken DeGiorgio)表示。“我們調整後的每股稀釋收益為1.34美元，增長了10%。在我們的標題業務中，保費和託管收入在所有主要業務板塊中均有增長，但最值得注意的是我們的商業業務板塊，在那裡營收增長了19%。”

「正如我們上個季度所指出的，我們預計2024年整年度的營業收入將有些許增長，這將使我們能夠實現類似於2023年所發表的標題利潤率。鑒於我們商業業務的最近表現和投資組合再平衡所帶來的利息收入增加，我們現在對此結果更有信心。九個季度以來收入的首次年比增長，以及我們預期支付能力挑戰將逐漸減輕，也讓我們謹慎樂觀地認為我們已經踏上一個新週期的開端，並將推動2025年進一步改善。」

「最近的颶風造成了多個東南部州遭受廣泛的破壞與災難。我們許多員工以及他們所居住的社區蒙受了深刻的困難。儘管我們很感激我們的所有員工皆安全無恙，但我們知道現在許多人正面臨艱難的恢復任務。我要感謝我們的員工們為幫助受影響者所做的一切，並再次重申我們公司支持我們的員工及他們的社區的承諾。」

標題保險和服務

（以百萬為單位，除了平均訂單收入）

在第三季度，產權保險和服務部門的總營業收入爲13億元，比2023年同季度下降了15%。本季度的總調整營業收入爲16億元，比去年增長了4%。與去年第三季度相比，直接保費和託管費用增加了9%，主要是由於每個完成訂單的平均營業收入增加了7%以及我們國內業務中直接產權訂單關閉數量增加了1%。直接產權訂單的平均營業收入增加至3,926美元，主要是由於商業和購買交易的每個訂單平均營業收入的增加。代理保費相對於直接保費記錄大約滯後一個季度，同比增加了3%。

Information and other revenues were $242 million during the quarter, up $2 million, or 1 percent, compared with last year.

Investment income was $136 million in the third quarter, down $5 million compared with the same quarter last year. The decline was primarily driven by lower average interest-bearing escrow and tax-deferred property exchange balances, partly offset by higher interest income from the company's warehouse lending business and the partial impact of the company's investment portfolio rebalancing project. Net investment losses totaled $308 million in the current quarter, compared with losses of $16 million in the third quarter of 2023. Net realized investment losses in the current quarter were primarily attributable to losses realized from the company's investment portfolio rebalancing project, partly offset by a favorable change in the fair value of marketable equity securities. Net investment losses in the third quarter of last year were primarily due to unfavorable changes in the fair value of marketable securities and losses recognized on the sale of fixed-income securities.

Personnel costs were $492 million in the third quarter, up $23 million, or 5 percent compared with the same quarter of 2023. The increase in personnel costs was primarily due to higher salary, incentive compensation, employee benefits, and payroll tax expense, partly offset by lower severance expense.

Other operating expenses of $252 million in the current quarter were up $9 million, or 4 percent compared with the third quarter of 2023 primarily due to higher production and software expense.

The provision for policy losses and other claims was $37 million in the third quarter, or 3.0 percent of title premiums and escrow fees, unchanged from the prior year. The third quarter rate reflects an ultimate loss rate of 3.75 percent for the current policy year and a net decrease of $9 million in the loss reserve estimate for prior policy years.

Depreciation and amortization expense was $52 million in the third quarter, up $6 million, or 12 percent, compared with the same period last year, due to higher amortization of capitalized software from recently deployed digital settlement products.

Interest expense was $24 million in the current quarter, up 2 percent compared with last year primarily due to higher interest expense in the company's warehouse lending business, largely offset by lower interest expense related to our subservicing business.

The Title Insurance and Services segment posted a pretax loss of $130 million in the third quarter, compared with pretax income of $160 million in the third quarter of 2023. Pretax margin was (10.1) percent in the current quarter, compared with 10.5 percent last year. Adjusted pretax margin was 11.6 percent in the current period, compared with 12.0 percent last year.

Home Warranty

($ in millions)

Total revenues for the Home Warranty segment were $111 million in the third quarter, up 2 percent compared with last year. The segment posted pretax income of $9 million this quarter, down 4 percent compared with last year. The claim loss rate was 53.8 percent in the third quarter, compared with 54.9 percent last year, due to lower claim counts that were partially offset by higher claim severity. Home Warranty’s pretax margin was 8.1 percent this quarter, compared with 8.7 percent last year. Adjusted pretax margin was 7.7 percent this quarter, compared with 9.3 percent last year.

Corporate

Net investment income was $9 million this quarter, up $13 million from the prior year, primarily attributable to changes in the value of investments associated with the company’s deferred compensation program. This amount was offset by higher personnel expense, reflecting returns on the plan participants’ investments.

Net recognized investment losses were $4 million this quarter, compared with losses of $147 million last year. Excluding these net recognized losses, the Corporate pretax loss was $19 million this quarter, down $5 million compared with the third quarter of last year, due to favorable reserve adjustments related to the legacy property and casualty business.

Teleconference/Webcast

First American’s third quarter 2024 results will be discussed in more detail on Thursday, Oct. 24, 2024, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is +1-877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through Nov. 7, 2024, by dialing +1-201-612-7415 and using the conference ID 13749447. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $6.0 billion in 2023, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2024, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the ninth consecutive year, and named one of the 100 Best Workplaces for Innovators by Fast Company for the second consecutive year. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in conditions of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company’s goodwill or other intangible assets; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; climate change, health crises, terrorist attacks, severe weather conditions and other catastrophe events; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture investment portfolio; material variance between actual and expected claims experience; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework or use of models; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; failures to recruit and retain qualified employees; the company’s use of a global workforce; inability of the company to fulfill parent company obligations and/or pay dividends; inability to realize anticipated synergies or produce returns that justify investment in acquired businesses; a reduction in the deposits at the company’s federal savings bank subsidiary; claims of infringement or inability to adequately protect the company’s intellectual property; and other factors described in the company’s quarterly report on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted pretax margin, adjusted net income, and adjusted earnings per share. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.