Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 17 – Segment Information

The Company consists of the following reportable segments and a corporate function:

• The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally.  This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; and provides warehouse lending services and banking,  trust and wealth management services.  The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents.  Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies, the District of Columbia and certain United States territories.  The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in other countries, including Canada, the United Kingdom, Australia, South Korea and various other established and emerging markets.

• The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products.  The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage.  This business is licensed to issue policies in all 50 states and the District of Columbia.  The majority of policy liability is in the western United States, including approximately 59% in California. During 2020, the Company initiated a plan to exit its property and casualty insurance business.  In January 2021, the Company entered into book transfer agreements with two third-party insurers, which will provide qualifying agents and customers of the Company an opportunity to transfer their policies.  The Company expects the transfers to be completed by the end of the third quarter of 2022.  The Company will seek to non-renew policies that are not transferred and, except in certain limited circumstances, is no longer issuing new policies.

The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period.  This business currently operates in 35 states and the District of Columbia.

The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations.

Selected financial information about the Company’s operations, by segment, is as follows:

For the three months ended March 31, 2021:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	1,885,058		$	321,630		$	36,713	$	30,469
Specialty Insurance		136,480			6,261			1,549		530
Corporate		5,066			(21,869	)		36		—
Eliminations		(859	)		—			—		—
	$	2,025,745		$	306,022		$	38,298	$	30,999

(in thousands)	Direct premiums and escrow fees		Agent premiums		Information and other		Net investment income		Net realized investment gains (losses)		Total Revenues
Title Insurance and Services	$	657,497	$	845,292	$	275,404	$	42,652	$	64,213	$	1,885,058
Specialty Insurance		128,178		—		3,748		1,934		2,620		136,480
	$	785,675	$	845,292	$	279,152	$	44,586	$	66,833	$	2,021,538

For the three months ended March 31, 2020:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	1,300,625		$	72,976		$	29,517	$	28,423
Specialty Insurance		121,969			12,857			1,894		2,801
Corporate		(9,311	)		(13,509	)		38		—
Eliminations		(340	)		—			—		—
	$	1,412,943		$	72,324		$	31,449	$	31,224

(in thousands)	Direct premiums and escrow fees		Agent premiums		Information and other		Net investment income		Net realized investment gains (losses)			Total Revenues
Title Insurance and Services	$	501,301	$	599,682	$	208,273	$	59,668	$	(68,299	)	$	1,300,625
Specialty Insurance		119,336		—		3,439		2,584		(3,390	)		121,969
	$	620,637	$	599,682	$	211,712	$	62,252	$	(71,689	)	$	1,422,594