First American Financial (FAF) Q1 Earnings, Revenues Top
Zacks Investment Research | Apr 25, 2019 10:41PM ET
First American Financial Corporation (NYSE:FAF) reported first-quarter 2019 operating income per share of 74 cents, which outperformed the Zacks Consensus Estimate by 7.3%. Moreover, the bottom line improved 4.2% year over year.
The quarter benefited from effective expense management and growth in investment income that helped the company achieve 12.1% pretax title margin.
Behind the Headlines
Operating revenues of $1.3 billion improved 0.5% year over year and beat the Zacks Consensus Estimate by nearly 2%
Net investment income surged 92% to $82.3 million.
Closed title orders declined 12% due to 29% decline in refinance orders and 8% decline in purchase orders.
Average revenue per order increased 7%, driven by higher average fee per file from commercial transactions.
Total expense of $1.2 billion decreased 3.5% year over year, attributable to lower personnel costs, premiums retained by agents, premium taxes and other operating expenses.
First American Financial Corporation Price, Consensus and EPS Surprise
Performance of Other P&C Insurers
Among other companies in the insurance industry, which have already reported first-quarter earnings, The Travelers Companies, Inc. (NYSE:TRV) , The Progressive Corporation’s (NYSE:PGR) and RLI Corp. (NYSE:RLI) outpaced the respective Zacks Consensus Estimate.
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