Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 21, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FAF | |
Entity Registrant Name | First American Financial Corp | |
Entity Central Index Key | 0001472787 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 111,421,080 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34580 | |
Entity Tax Identification Number | 26-1911571 | |
Entity Address, Address Line One | 1 First American Way | |
Entity Address, City or Town | Santa Ana | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92707-5913 | |
City Area Code | 714 | |
Local Phone Number | 250-3000 | |
Title of 12(b) Security | Common stock, $0.00001 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,049,985 | $ 1,485,959 |
Accounts and accrued income receivable, less allowances of $11,576 and $12,676 | 404,541 | 324,385 |
Income taxes receivable | 11,870 | 10,967 |
Investments: | ||
Deposits with banks | 39,425 | 44,422 |
Debt securities, includes pledged securities of $92,261 and $91,636 (amortized cost$5,711,924 and $5,796,755; allowance for credit losses of $7,493 at March 31, 2020) | 5,839,530 | 5,913,636 |
Equity securities | 377,296 | 392,318 |
Other investments | 292,726 | 239,067 |
Investments, Total | 6,548,977 | 6,589,443 |
Secured financings receivable | 480,160 | 287,459 |
Property and equipment, net | 488,490 | 442,014 |
Operating lease assets | 295,387 | 291,385 |
Title plants and other indexes | 580,255 | 579,674 |
Deferred income taxes | 18,283 | 18,283 |
Goodwill | 1,381,495 | 1,150,908 |
Other intangible assets, net | 183,961 | 91,833 |
Other assets | 232,081 | 246,857 |
Total assets | 11,675,485 | 11,519,167 |
Liabilities and Equity | ||
Deposits | 3,431,347 | 3,337,431 |
Accounts payable and accrued liabilities | 664,023 | 820,356 |
Deferred revenue | 237,500 | 252,331 |
Reserve for known and incurred but not reported claims | 1,057,538 | 1,063,044 |
Income taxes payable | 36,427 | 25,475 |
Deferred income taxes | 266,108 | 266,108 |
Operating lease liabilities | 324,804 | 322,776 |
Secured financings payable | 441,657 | 278,412 |
Notes and contracts payable | 847,159 | 728,232 |
Total liabilities | 7,306,563 | 7,094,165 |
Commitments and contingencies (Note 15 and Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none | 0 | 0 |
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—111,417 shares and 112,476 shares | 1 | 1 |
Additional paid-in capital | 2,247,569 | 2,300,926 |
Retained earnings | 2,173,720 | 2,161,049 |
Accumulated other comprehensive loss | (61,945) | (41,492) |
Total stockholders’ equity | 4,359,345 | 4,420,484 |
Noncontrolling interests | 9,577 | 4,518 |
Total equity | 4,368,922 | 4,425,002 |
Total liabilities and equity | $ 11,675,485 | $ 11,519,167 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Statement Of Financial Position [Abstract] | |||
Accounts and accrued income receivable, allowances | $ 11,576 | $ 12,676 | |
Debt securities, amortized cost | 5,711,924 | 5,796,755 | |
Debt securities, allowance for credit losses | [1] | 7,493 | 0 |
Pledged securities included in debt securities | $ 92,261 | $ 91,636 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 500,000 | 500,000 | |
Preferred stock, outstanding | 0 | 0 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 | |
Common stock, shares outstanding | 111,417,000 | 112,476,000 | |
[1] | Represents the amount of impairment resulting from credit-related factors and is included in net realized investment gains/losses in the condensed consolidated statements of income for the three months ended March 31, 2020. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Direct premiums and escrow fees | $ 620,637 | $ 514,202 |
Agent premiums | 599,682 | 501,537 |
Information and other | 211,512 | 172,892 |
Net investment income | 45,874 | 82,268 |
Net realized investment (losses) gains | (64,762) | 32,682 |
Total revenues | 1,412,943 | 1,303,581 |
Expenses | ||
Personnel costs | 429,660 | 411,612 |
Premiums retained by agents | 475,381 | 396,607 |
Other operating expenses | 257,240 | 196,447 |
Provision for policy losses and other claims | 117,477 | 97,712 |
Depreciation and amortization | 31,449 | 32,934 |
Premium taxes | 17,315 | 14,663 |
Interest | 12,097 | 11,936 |
Total expenses | 1,340,619 | 1,161,911 |
Income before income taxes | 72,324 | 141,670 |
Income taxes | 8,478 | 31,866 |
Net income | 63,846 | 109,804 |
Less: Net income attributable to noncontrolling interests | 642 | 229 |
Net income attributable to the Company | $ 63,204 | $ 109,575 |
Net income per share attributable to the Company’s stockholders (Note 9): | ||
Basic | $ 0.56 | $ 0.97 |
Diluted | 0.55 | 0.97 |
Cash dividends declared per share | $ 0.44 | $ 0.42 |
Weighted-average common shares outstanding (Note 9): | ||
Basic | 113,556 | 112,703 |
Diluted | 113,959 | 113,224 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 63,846 | $ 109,804 |
Other comprehensive income (loss), net of tax: | ||
Unrealized gains on debt securities | 12,619 | 59,505 |
Unrealized gains on debt securities for which credit-related portion was recognized in earnings | 85 | |
Foreign currency translation adjustment | (33,556) | 6,888 |
Pension benefit adjustment | 399 | (76) |
Total other comprehensive (loss) income, net of tax | (20,453) | 66,317 |
Comprehensive income | 43,393 | 176,121 |
Less: Comprehensive income attributable to noncontrolling interests | 642 | 228 |
Comprehensive income attributable to the Company | $ 42,751 | $ 175,893 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total stockholders' equity | Noncontrolling Interests |
Balance, Value at Dec. 31, 2018 | $ 3,745,388 | $ 1 | $ 2,258,290 | $ 1,644,165 | $ (160,575) | $ 3,741,881 | $ 3,507 |
Balance, Shares at Dec. 31, 2018 | 111,496 | ||||||
Cumulative-effect adjustment | Accounting Standards Update 2016-02 | 1,283 | $ 0 | 0 | 1,283 | 0 | 1,283 | 0 |
Net income | 109,804 | 0 | 0 | 109,575 | 0 | 109,575 | 229 |
Dividends on common shares | (47,021) | 0 | 0 | (47,021) | 0 | (47,021) | 0 |
Purchase of Company shares | (2,066) | $ 0 | (2,066) | 0 | 0 | (2,066) | 0 |
Purchase of Company shares, shares | (47) | ||||||
Shares issued in connection with share-based compensation | (11,480) | $ 0 | (10,618) | (862) | 0 | (11,480) | 0 |
Shares issued in connection with share-based compensation, shares | 623 | ||||||
Share-based compensation | 19,597 | $ 0 | 19,597 | 0 | 0 | 19,597 | 0 |
Net activity related to noncontrolling interests | (1,286) | 0 | (60) | 0 | 0 | (60) | (1,226) |
Other comprehensive income (loss) | 66,317 | 0 | 0 | 0 | 66,318 | 66,318 | (1) |
Balance, Value at Mar. 31, 2019 | 3,880,536 | $ 1 | 2,265,143 | 1,707,140 | (94,257) | 3,878,027 | 2,509 |
Balance, Shares at Mar. 31, 2019 | 112,072 | ||||||
Balance, Value at Dec. 31, 2019 | $ 4,425,002 | $ 1 | 2,300,926 | 2,161,049 | (41,492) | 4,420,484 | 4,518 |
Balance, Shares at Dec. 31, 2019 | 112,476 | 112,476 | |||||
Net income | $ 63,846 | $ 0 | 0 | 63,204 | 0 | 63,204 | 642 |
Dividends on common shares | (49,702) | 0 | 0 | (49,702) | 0 | (49,702) | 0 |
Purchase of Company shares | (65,785) | $ 0 | (65,785) | 0 | 0 | (65,785) | 0 |
Purchase of Company shares, shares | (1,703) | ||||||
Shares issued in connection with share-based compensation | (14,378) | $ 0 | (13,547) | (831) | 0 | (14,378) | 0 |
Shares issued in connection with share-based compensation, shares | 644 | ||||||
Share-based compensation | 25,903 | $ 0 | 25,903 | 0 | 0 | 25,903 | 0 |
Net activity related to noncontrolling interests | 4,489 | 0 | 72 | 0 | 0 | 72 | 4,417 |
Other comprehensive income (loss) | (20,453) | 0 | 0 | 0 | (20,453) | (20,453) | 0 |
Balance, Value at Mar. 31, 2020 | $ 4,368,922 | $ 1 | $ 2,247,569 | $ 2,173,720 | $ (61,945) | $ 4,359,345 | $ 9,577 |
Balance, Shares at Mar. 31, 2020 | 111,417 | 111,417 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 63,846 | $ 109,804 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for policy losses and other claims | 117,477 | 97,712 |
Depreciation and amortization | 31,449 | 32,934 |
Amortization of premiums and accretion of discounts on debt securities, net | 9,952 | 5,464 |
Net realized investment losses (gains) | 64,762 | (32,682) |
Share-based compensation | 25,903 | 19,597 |
Equity in earnings of equity method investments, net | 228 | 180 |
Dividends from equity method investments | 1,402 | 545 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ||
Claims paid, including assets acquired, net of recoveries | (108,538) | (99,992) |
Net change in income tax accounts | 5,181 | 29,186 |
(Increase) decrease in accounts and accrued income receivable | (45,747) | 2,543 |
Decrease in accounts payable and accrued liabilities | (149,960) | (118,318) |
Decrease in deferred revenue | (15,753) | (13,447) |
Other, net | 23,952 | 945 |
Cash provided by operating activities | 24,154 | 34,471 |
Cash flows from investing activities: | ||
Net cash effect of acquisitions/dispositions | (386,231) | (225) |
Net decrease (increase) in deposits with banks | 2,095 | (8,824) |
Purchases of debt and equity securities | (588,327) | (727,001) |
Proceeds from sales of debt and equity securities | 211,370 | 461,447 |
Proceeds from maturities of debt securities | 320,523 | 136,670 |
Investments in unconsolidated entities | (44,795) | (75,000) |
Net change in other investments | 298 | 1,036 |
Advances under secured financing agreements | (3,028,490) | (985,478) |
Collections of secured financings receivable | 2,835,789 | 934,149 |
Capital expenditures | (29,213) | (27,386) |
Proceeds from sales of property and equipment | 14,141 | 12 |
Cash used for investing activities | (692,840) | (290,600) |
Cash flows from financing activities: | ||
Net change in deposits | 93,916 | 135,720 |
Borrowings under secured financing agreements | 2,998,687 | 985,878 |
Repayments of secured financings payable | (2,835,442) | (934,544) |
Borrowings under unsecured credit agreement | 120,000 | |
Repayments of notes and contracts payable | (1,338) | (1,411) |
Net activity related to noncontrolling interests | (1,328) | (1,065) |
Net payments in connection with share-based compensation | (14,378) | (11,480) |
Repurchases of Company shares | (65,785) | (2,066) |
Payments of cash dividends | (49,702) | (47,021) |
Cash provided by financing activities | 244,630 | 124,011 |
Effect of exchange rate changes on cash | (11,918) | 2,041 |
Net decrease in cash and cash equivalents | (435,974) | (130,077) |
Cash and cash equivalents—Beginning of period | 1,485,959 | 1,467,129 |
Cash and cash equivalents—End of period | 1,049,985 | 1,337,052 |
Supplemental information: | ||
Interest | 9,462 | 10,353 |
Premium taxes | 25,049 | 24,353 |
Income taxes, less refunds of $71 and $548 | $ 3,239 | $ 2,559 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Cash Flows [Abstract] | ||
Income taxes, refunds | $ 71 | $ 548 |
Basis of Condensed Consolidated
Basis of Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Condensed Consolidated Financial Statements | Note 1 – Basis of Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial information included in this report has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the First American Financial Corporation (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2019. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the consolidated results for the interim periods. All material intercompany transactions and balances have been eliminated upon consolidation. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued updated guidance that is intended to reduce potential diversity in practice in accounting for the costs of implementing cloud computing arrangements (i.e., hosting arrangements) that are service contracts. The updated guidance aligns the requirements for capitalizing implementation costs for these arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued updated guidance as part of its disclosure framework project intended to improve the effectiveness of disclosures in the notes to the financial statements. The updated guidance eliminates, adds and modifies certain disclosure requirements related to fair value measurements. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued updated guidance intended to simplify how an entity tests goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the updated guidance, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020 and applied prospectively, did not have a material impact, except for the disclosure requirements, on the Company’s condensed consolidated financial statements. See Note 3 Debt and Equity Securities and Note 4 Credit Losses – Financial Assets and Off-Balance Sheet Credit Exposures for further information on the Company’s credit losses. Pending Accounting Pronouncements In December 2019, the FASB issued updated guidance intended to simplify and improve the accounting for income taxes. The updated guidance eliminates certain exceptions and clarifies and amends certain areas of the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. |
Escrow Deposits, Like-Kind Exch
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | Note 2 – Escrow Deposits, Like-kind Exchange Deposits and Trust Assets The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $7.7 billion and $7.3 billion at March 31, 2020 and December 31, 2019, respectively, of which $3.3 billion and $3.2 billion, respectively, were held at First American Trust, FSB. The escrow deposits held at First American Trust, FSB are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying condensed consolidated balance sheets. The remaining escrow deposits were held at third-party financial institutions. Trust assets held or managed by First American Trust, FSB totaled $4.0 billion and $4.2 billion at March 31, 2020 and December 31, 2019, respectively. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits with various financial institutions. The results from these programs are included as income or a reduction in expense, as appropriate, in the condensed consolidated statements of income based on the nature of the arrangement and benefit received. The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds held by the Company totaled $2.9 billion and $3.0 billion at March 31, 2020 and December 31, 2019, respectively. The like-kind exchange deposits are held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the returns on such proceeds. |
Debt and Equity Securities
Debt and Equity Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Debt and Equity Securities | Note 3 – Debt and Equity Securities On January 1, 2020, the Company adopted updated accounting guidance which changes the impairment methodology for available-for-sale debt securities. Under the new guidance, when the fair value of an available-for-sale debt security falls below its amortized cost, entities must determine whether the decline in fair value is due to credit-related factors or noncredit-related factors. Declines in fair value that are credit-related are now recorded on the balance sheet through an allowance for credit losses with a corresponding adjustment to earnings and declines that are noncredit-related are recognized through other comprehensive income/loss. Investments in debt securities, classified as available-for-sale, are as follows: (in thousands) Amortized Allowance for credit losses (1) Gross unrealized Estimated Gains Losses March 31, 2020 U.S. Treasury bonds $ 120,676 $ — $ 2,032 $ — $ 122,708 Municipal bonds 1,008,935 — 41,978 (1,971 ) 1,048,942 Foreign government bonds 154,968 (399 ) 4,254 (525 ) 158,298 Governmental agency bonds 285,947 — 13,153 (5 ) 299,095 Governmental agency mortgage-backed securities 3,264,553 — 91,671 (7,848 ) 3,348,376 U.S. corporate debt securities 547,250 (5,886 ) 12,250 (14,333 ) 539,281 Foreign corporate debt securities 329,595 (1,208 ) 3,121 (8,678 ) 322,830 $ 5,711,924 $ (7,493 ) $ 168,459 $ (33,360 ) $ 5,839,530 December 31, 2019 U.S. Treasury bonds $ 143,825 $ — $ 469 $ (353 ) $ 143,941 Municipal bonds 1,043,252 — 47,804 (217 ) 1,090,839 Foreign government bonds 179,554 — 1,497 (961 ) 180,090 Governmental agency bonds 316,318 — 5,820 (219 ) 321,919 Governmental agency mortgage-backed securities 3,241,966 — 43,599 (7,307 ) 3,278,258 U.S. corporate debt securities 535,878 — 18,466 (972 ) 553,372 Foreign corporate debt securities 335,962 — 9,468 (213 ) 345,217 $ 5,796,755 $ — $ 127,123 $ (10,242 ) $ 5,913,636 (1) Represents the amount of impairment resulting from credit-related factors and is included in net realized investment gains/losses in the condensed consolidated statements of income for the three months ended March 31, 2020. Sales of debt securities resulted in realized gains of $6.2 million and $3.1 million, realized losses of $1.3 million and $3.0 million, and proceeds of $209.4 million and $391.4 million for the three months ended March 31, 2020 and 2019, respectively. Gross unrealized losses on investments in debt securities for which an allowance for credit losses has not been recorded, are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses March 31, 2020 Municipal bonds $ 64,810 $ (1,965 ) $ 790 $ (6 ) $ 65,600 $ (1,971 ) Foreign government bonds 32,427 (525 ) — — 32,427 (525 ) Governmental agency bonds 1,540 (5 ) — — 1,540 (5 ) Governmental agency mortgage-backed securities 451,608 (3,315 ) 478,847 (4,533 ) 930,455 (7,848 ) U.S. corporate debt securities 225,547 (13,868 ) 2,869 (465 ) 228,416 (14,333 ) Foreign corporate debt securities 195,407 (8,629 ) 698 (49 ) 196,105 (8,678 ) $ 971,339 $ (28,307 ) $ 483,204 $ (5,053 ) $ 1,454,543 $ (33,360 ) December 31, 2019 U.S. Treasury bonds $ 12,507 $ (350 ) $ 3,193 $ (3 ) $ 15,700 $ (353 ) Municipal bonds 29,333 (207 ) 2,827 (10 ) 32,160 (217 ) Foreign government bonds 112,167 (934 ) 11,001 (27 ) 123,168 (961 ) Governmental agency bonds 24,493 (142 ) 14,923 (77 ) 39,416 (219 ) Governmental agency mortgage-backed securities 719,602 (2,785 ) 637,009 (4,522 ) 1,356,611 (7,307 ) U.S. corporate debt securities 42,607 (451 ) 10,216 (521 ) 52,823 (972 ) Foreign corporate debt securities 30,895 (108 ) 12,373 (105 ) 43,268 (213 ) $ 971,604 $ (4,977 ) $ 691,542 $ (5,265 ) $ 1,663,146 $ (10,242 ) Based on the Company’s review of its debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, it determined that the losses were due to non-credit factors, such as the sharp increase in market volatility due to the recent disruption in global financial markets as a result of the coronavirus pandemic and responses to it. As such, the Company does not consider these securities to be credit impaired at March 31, 2020. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is impaired and it is written down to fair value with all losses recognized in earnings. As of March 31, 2020, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. For debt securities in an unrealized loss position for which the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security, the Company determines whether the loss is due to credit-related factors or noncredit-related factors. For debt securities in an unrealized loss position for which the losses are primarily due to credit-related factors, the Company’s policy is to recognize the entire loss in earnings. For debt securities in an unrealized loss position for which the losses are determined to be the result of both credit-related and noncredit-related factors, the credit loss is determined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted using the effective interest rate (i.e. purchase yield) and for variable rate securities the interest rate is fixed at the rate in effect at the credit loss measurement date. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. Activity in the allowance for credit losses on debt securities is summarized as follows: (in thousands) Three Months Ended Balance at beginning of period $ — Credit losses recognized during the period (7,493 ) Balance at end of period $ (7,493 ) In determining credit losses on its debt securities in an unrealized loss position, the Company considers certain factors that may include, among others, severity of the unrealized loss, security type, industry sector, credit rating, profitability and stock performance. The Company’s policy is to present accrued interest receivable on debt securities within accounts and accrued income receivable on the balance sheet. Accrued interest receivable on debt securities at March 31, 2020 totaled $27.2 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable on debt securities and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Debt securities are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Interest income is recognized on a cash basis for interest payments received on debt securities in non-accrual status. Investments in debt securities at March 31, 2020, by contractual maturities, are as follows: (in thousands) Due in one year or less Due after one through five years Due after five through ten years Due after ten years Total U.S. Treasury bonds Amortized cost $ 65,958 $ 51,199 $ 1,025 $ 2,494 $ 120,676 Estimated fair value $ 66,287 $ 52,545 $ 1,152 $ 2,724 $ 122,708 Municipal bonds Amortized cost $ 62,536 $ 130,688 $ 332,696 $ 483,015 $ 1,008,935 Estimated fair value $ 62,788 $ 132,402 $ 347,166 $ 506,586 $ 1,048,942 Foreign government bonds Amortized cost $ 22,647 $ 61,278 $ 57,108 $ 13,935 $ 154,968 Estimated fair value $ 22,652 $ 62,676 $ 59,523 $ 13,447 $ 158,298 Governmental agency bonds Amortized cost $ 7,673 $ 84,475 $ 132,414 $ 61,385 $ 285,947 Estimated fair value $ 7,733 $ 87,291 $ 137,197 $ 66,874 $ 299,095 U.S. corporate debt securities Amortized cost $ 23,210 $ 303,513 $ 173,846 $ 46,681 $ 547,250 Estimated fair value $ 23,192 $ 301,707 $ 167,908 $ 46,474 $ 539,281 Foreign corporate debt securities Amortized cost $ 23,461 $ 202,346 $ 75,858 $ 27,930 $ 329,595 Estimated fair value $ 23,428 $ 199,226 $ 73,886 $ 26,290 $ 322,830 Total debt securities excluding mortgage-backed securities Amortized cost $ 205,485 $ 833,499 $ 772,947 $ 635,440 $ 2,447,371 Estimated fair value $ 206,080 $ 835,847 $ 786,832 $ 662,395 $ 2,491,154 Total mortgage-backed securities Amortized cost $ 3,264,553 Estimated fair value $ 3,348,376 Total debt securities Amortized cost $ 5,711,924 Estimated fair value $ 5,839,530 Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity as borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties. Investments in equity securities are as follows: (in thousands) Cost Estimated fair value March 31, 2020 Preferred stocks $ 20,284 $ 13,308 Common stocks 396,635 363,988 $ 416,919 $ 377,296 December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 Net losses (realized and unrealized) of $82.5 million and net gains (realized and unrealized) of $32.5 million were recognized for the three months ended March 31, 2020 and 2019, respectively, as a result of changes in the fair values of equity securities. Included in net losses during the three months ended March 31, 2020 were net unrealized losses of $82.4 million related to equity securities still held at March 31, 2020, and included in net gains during the three months ended March 31, 2019 were net unrealized gains of $29.0 million related to equity securities still held at March 31, 2019. The composition of the investment portfolio at March 31, 2020, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Debt securities: U.S. Treasury bonds $ 122,708 100.0 $ — — $ — — $ 122,708 100.0 Municipal bonds 1,003,827 95.7 43,777 4.2 1,338 0.1 1,048,942 100.0 Foreign government bonds 144,010 91.0 11,761 7.4 2,527 1.6 158,298 100.0 Governmental agency bonds 299,095 100.0 — — — — 299,095 100.0 Governmental agency mortgage-backed securities 3,348,376 100.0 — — — — 3,348,376 100.0 U.S. corporate debt securities 250,839 46.5 218,235 40.5 70,207 13.0 539,281 100.0 Foreign corporate debt securities 129,565 40.1 167,265 51.8 26,000 8.1 322,830 100.0 Total debt securities 5,298,420 90.7 441,038 7.6 100,072 1.7 5,839,530 100.0 Preferred stocks 28 0.2 12,589 94.6 691 5.2 13,308 100.0 Total $ 5,298,448 90.5 $ 453,627 7.8 $ 100,763 1.7 $ 5,852,838 100.0 Included in debt securities at March 31, 2020, were bank loans totaling $67.7 million, of which $61.4 million were non-investment grade; high yield corporate debt securities totaling $30.6 million, all of which were non-investment grade; and emerging market debt securities totaling $62.1 million, of which $6.7 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at March 31, 2020, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Municipal bonds $ 46,321 70.6 $ 19,279 29.4 $ — — $ 65,600 100.0 Foreign government bonds 24,960 77.0 6,139 18.9 1,328 4.1 32,427 100.0 Governmental agency bonds 1,540 100.0 — — — — 1,540 100.0 Governmental agency mortgage-backed securities 930,455 100.0 — — — — 930,455 100.0 U.S. corporate debt securities 68,401 30.0 102,437 44.8 57,578 25.2 228,416 100.0 Foreign corporate debt securities 67,625 34.5 108,333 55.2 20,147 10.3 196,105 100.0 Total $ 1,139,302 78.4 $ 236,188 16.2 $ 79,063 5.4 $ 1,454,543 100.0 Debt securities in an unrealized loss position at March 31, 2020, included bank loans totaling $60.9 million, of which $54.7 million were non-investment grade; high yield corporate debt securities totaling $20.1 million, all of which were non-investment grade; and emerging market debt securities totaling $35.9 million, of which $4.3 million were non-investment grade. The credit ratings in the above tables reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies, the lowest rating was selected. Governmental agency mortgage-backed securities are not rated by any of the ratings agencies; however, these securities have been included in the above table in the “A- or higher” rating category because the payments of principal and interest are guaranteed by the governmental agency that issued the security. |
Credit Losses - Financial Asset
Credit Losses - Financial Assets and Off - Balance Sheet Credit Exposures | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Credit Losses - Financial Assets and Off - Balance Sheet Credit Exposures | Note 4 – Credit Losses – Financial Assets and Off-Balance Sheet Credit Exposures On January 1, 2020, the Company adopted updated accounting guidance which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected with credit losses recorded through an allowance account that is deducted from the amortized cost of the financial asset. The updated guidance also requires the measurement of expected credit losses on off-balance sheet credit exposures. The Company’s financial assets, which are measured at amortized cost, primarily include accounts receivable, accrued interest receivable and secured financings receivable. See Note 3 Debt and Equity Securities for discussion of accrued interest receivable on debt securities. Accounts and accrued income receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for credit losses. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the current condition, and future expectations, of the general economy and industry as a whole. Amounts are charged off in the period in which they are deemed to be uncollectible. Activity in the allowance for credit losses on accounts receivable is summarized as follows: (in thousands) Three Months Ended Balance at beginning of period (1) $ 12,676 Provision for expected credit losses 1,003 Write-offs, net of recoveries (2,103 ) Balance at end of period $ 11,576 (1) Amount reflects the allowance determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. The Company’s policy is to present accrued interest receivable on financial assets measured at amortized cost within accounts and accrued income receivable on the balance sheet. Accrued interest receivable at March 31, 2020 totaled $3.2 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Accounts are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Payments of interest for accounts in non-accrual status are applied under the cost recovery method. Secured financings receivable The Company’s secured financings receivable are collateralized by mortgage loans on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. No allowance is recorded for credit losses due to, among other factors, the short-term nature of these receivables, investors in the underlying mortgage loans being typically identified prior to advances being made by the Company, the underlying mortgage loans are predominantly Qualified Mortgages (QM) and the receivable has no history of significant prior credit losses. Escrow deposits and like-kind exchange deposits Escrow deposits held at third-party financial institutions are not considered assets or liabilities of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. The Company regularly reviews the financial strength of third-party financial institutions where escrow deposits are held and, based on this review and the fact that all amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation, does not expect any credit losses; therefore the Company has not recorded a liability for credit losses. Like-kind exchange deposits held at third-party financial institutions are not considered assets or liabilities of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the returns on such proceeds. The Company regularly reviews the financial strength of third-party financial institutions where like-kind exchange deposits are held and, based on this review and the fact that all amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation, does not expect any credit losses; therefore the Company has not recorded a liability for credit losses. See Note 2 Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets for further information about the Company’s escrow deposits and like-kind exchange deposits. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 5 – Goodwill A summary of the changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2020, is as follows: (in thousands) Title Insurance and Services Specialty Insurance Total Balance at December 31, 2019 $ 1,104,143 $ 46,765 $ 1,150,908 Acquisitions 236,242 — 236,242 Dispositions (358 ) — (358 ) Foreign currency translation (5,297 ) — (5,297 ) Balance at March 31, 2020 $ 1,334,730 $ 46,765 $ 1,381,495 The Company’s four reporting units for purposes of assessing goodwill for impairment are title insurance, home warranty, property and casualty insurance and trust and other services. During the three months ended March 31, 2020, there were no triggering events that would more likely than not reduce the fair value of any reporting unit below its carrying amount. For discussion about the Company’s acquisitions in 2020, see Note 16 Business Combinations. |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 6 – Other Intangible Assets Other intangible assets consist of the following: (in thousands) March 31, 2020 December 31, 2019 Finite-lived intangible assets: Customer relationships $ 150,700 $ 99,905 Noncompete agreements 32,198 13,150 Trademarks 25,312 10,520 Internal-use software licenses 18,812 21,982 Patents 2,840 2,840 229,862 148,397 Accumulated amortization (62,786 ) (73,449 ) 167,076 74,948 Indefinite-lived intangible assets: Licenses 16,885 16,885 $ 183,961 $ 91,833 Amortization expense for finite-lived intangible assets was $6.3 million and $8.0 million for the three months ended March 31, 2020 and 2019, respectively. For discussion about the Company’s acquisitions in 2020, see Note 16 Business Combinations. Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2020 $ 28,650 2021 $ 28,394 2022 $ 27,285 2023 $ 25,461 2024 $ 20,094 2025 $ 14,352 |
Reserve for Known and Incurred
Reserve for Known and Incurred but Not Reported Claims | 3 Months Ended |
Mar. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | Note 7 – Reserve for Known and Incurred But Not Reported Claims Activity in the reserve for known and incurred but not reported claims is summarized as follows: Three Months Ended (in thousands) 2020 2019 Balance at beginning of period $ 1,063,044 $ 1,042,679 Provision related to: Current year 103,213 88,603 Prior years 14,264 9,109 117,477 97,712 Payments, net of recoveries, related to: Current year 32,685 30,446 Prior years 75,853 69,546 108,538 99,992 Other (14,445 ) (6,765 ) Balance at end of period $ 1,057,538 $ 1,033,634 The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 5.0% and 4.0% for the three months ended March 31, 2020 and 2019, respectively. The current quarter rate of 5.0% reflects an ultimate loss rate of 4.5% for the current policy year and a net increase in the loss reserve estimates for prior policy years of $5.5 million. The 4.0% rate for the first quarter of 2019 reflected the ultimate loss rate for the 2019 policy year and no change in the loss reserve estimates for prior policy years. To date, the Company has not experienced an increase in title claims as a result of the coronavirus pandemic. For the three months ended March 31, 2020, the Company’s incurred title claims were 6.2% lower than the same period of the prior year and significantly below the Company’s actuarial expectation. However, title claims generally increase when economic conditions deteriorate. Due to the recent deterioration in economic conditions in connection with the coronavirus pandemic and responses to it, the Company increased its calendar year loss rate from 4.0% in 2019 to 5.0%. A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) March 31, 2020 December 31, 2019 Known title claims $ 73,829 7.0 % $ 83,382 7.8 % Incurred but not reported claims 915,192 86.5 % 903,994 85.1 % Total title claims 989,021 93.5 % 987,376 92.9 % Non-title claims 68,517 6.5 % 75,668 7.1 % Total loss reserves $ 1,057,538 100.0 % $ 1,063,044 100.0 % |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 11.7% and 22.5% for the three months ended March 31, 2020 and 2019, respectively. The Company’s effective tax rates differ from the statutory federal rate of 21.0% due to state and foreign income taxes incurred, as well as permanent differences between amounts reported for financial statement purposes and amounts reported for income tax purposes, including the recognition of excess tax benefits or tax deficiencies associated with share-based payment transactions through income tax expense. In addition, the rate for 2020 reflects a benefit related to foreign tax law changes. The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and makes adjustments to the allowance as necessary. The factors used by the Company to assess the likelihood of realization include its forecast of future taxable income and available tax planning strategies that could be implemented to realize its deferred tax assets. The Company’s ability or failure to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of its deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months. As of March 31, 2020 and December 31, 2019, the liability for income taxes associated with uncertain tax positions was $6.6 million and $1.5 million, respectively. The increase in the current quarter results primarily from positions taken on the Company’s tax returns for prior years. As of March 31, 2020 and December 31, 2019, the liability could be reduced by $1.8 million and $0.4 million, respectively, due to offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net liability, if recognized, would favorably affect the Company’s effective income tax rate. The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. As of March 31, 2020 and December 31, 2019, the Company had accrued interest and penalties, net of tax benefits, of $28 thousand and $26 thousand, respectively, related to uncertain tax positions. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. As of March 31, 2020, the Company had concluded U.S. federal income tax examinations through 2015 and is generally no longer subject to state and non-U.S. income tax examinations for years prior to 2014. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share The computation of basic and diluted earnings per share is as follows: Three Months Ended (in thousands, except per share amounts) 2020 2019 Numerator Net income attributable to the Company $ 63,204 $ 109,575 Denominator Basic weighted-average shares 113,556 112,703 Effect of dilutive employee stock options and 403 521 Diluted weighted-average shares 113,959 113,224 Net income per share attributable to the Company’s stockholders Basic $ 0.56 $ 0.97 Diluted $ 0.55 $ 0.97 For the three months ended March 31, 2020 and 2019, 192 thousand and 301 thousand RSUs, respectively, were excluded from diluted weighted-average common shares outstanding due to their antidilutive effect. No stock options had a dilutive effect on weighted-average common shares outstanding during the three months ended March 31, 2020, as all remaining stock options outstanding were exercised during the fourth quarter of 2019. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans Net periodic cost related to the Company’s unfunded supplemental benefit plans includes the following components: Three Months Ended (in thousands) 2020 2019 Expense: Service costs $ 45 $ 70 Interest costs 1,781 2,279 Amortization of net actuarial loss 1,320 915 Amortization of prior service credit (777 ) (1,018 ) $ 2,369 $ 2,246 The Company contributed $3.5 million to its unfunded supplemental benefit plans during the three months ended March 31, 2020, and expects to contribute an additional $11.9 million during the remainder of 2020. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 – Fair Value Measurements Certain of the Company’s assets are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes its assets and liabilities carried at fair value using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and the Company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management’s assessment of the transparency and reliability of the inputs used to estimate the fair values at the measurement date. The three hierarchy levels are defined as follows: Level 1—Valuations based on unadjusted quoted market prices in active markets for identical assets or liabilities. Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. If the inputs used to measure fair value fall into different levels of the fair value hierarchy, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement. Assets measured at fair value on a recurring basis The valuation techniques and inputs used by the Company to estimate the fair value of assets measured on a recurring basis are summarized as follows: Debt securities The fair values of debt securities were based on the market values obtained from independent pricing services that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other market information and price quotes from well-established, independent broker-dealers. The independent pricing services monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The pricing services utilize the market approach in determining the fair values of the debt securities held by the Company. The Company obtains an understanding of the valuation models and assumptions utilized by the services and has controls in place to determine that the values provided represent fair values. The Company’s validation procedures include comparing prices received from the pricing services to quotes received from other third party sources for certain securities with market prices that are readily verifiable. If the price comparison results in differences over a predefined threshold, the Company will assess the reasonableness of the changes relative to prior periods given the prevailing market conditions and assess changes in the issuers’ credit worthiness, performance of any underlying collateral and prices of the instrument relative to similar issuances. To date, the Company has not made any material adjustments to the fair value measurements provided by the pricing services. Typical inputs and assumptions to pricing models used to value the Company’s debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes and prepayment speeds. Equity securities The fair values of equity securities, including preferred and common stocks, were based on quoted market prices for identical assets that are readily and regularly available in an active market. The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of March 31, 2020 and December 31, 2019: (in thousands) Total Level 1 Level 2 Level 3 March 31, 2020 Debt securities: U.S. Treasury bonds $ 122,708 $ — $ 122,708 $ — Municipal bonds 1,048,942 — 1,048,942 — Foreign government bonds 158,298 — 158,298 — Governmental agency bonds 299,095 — 299,095 — Governmental agency mortgage-backed securities 3,348,376 — 3,348,376 — U.S. corporate debt securities 539,281 — 539,281 — Foreign corporate debt securities 322,830 — 322,830 — 5,839,530 — 5,839,530 — Equity securities: Preferred stocks 13,308 13,308 — — Common stocks 363,988 363,988 — — 377,296 377,296 — — Total assets $ 6,216,826 $ 377,296 $ 5,839,530 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2019 Debt securities: U.S. Treasury bonds $ 143,941 $ — $ 143,941 $ — Municipal bonds 1,090,839 — 1,090,839 — Foreign government bonds 180,090 — 180,090 — Governmental agency bonds 321,919 — 321,919 — Governmental agency mortgage-backed securities 3,278,258 — 3,278,258 — U.S. corporate debt securities 553,372 — 553,372 — Foreign corporate debt securities 345,217 — 345,217 — 5,913,636 — 5,913,636 — Equity securities: Preferred stocks 18,094 18,094 — — Common stocks 374,224 374,224 — — 392,318 392,318 — — Total assets $ 6,305,954 $ 392,318 $ 5,913,636 $ — There were no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2020 and 2019. Transfers into or out of the Level 3 category occur when unobservable inputs become more or less significant to the fair value measurement. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. Financial instruments not measured at fair value In estimating the fair values of its financial instruments not measured at fair value, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents approximates fair value due to the short-term maturity of these investments. Deposits with banks The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. Notes receivable, net The fair value of notes receivable, net is estimated based on current market rates offered for notes with similar maturities and credit quality. Secured financings receivable The carrying amount of secured financings receivable approximates fair value due to the short-term nature of these assets. Secured financings payable The carrying amount of secured financings payable approximates fair value due to the short-term nature of these liabilities. Notes and contracts payable The fair value of notes and contracts payable is estimated based on current rates offered for debt of similar remaining maturities. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of March 31, 2020 and December 31, 2019: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 March 31, 2020 Assets: Cash and cash equivalents $ 1,049,985 $ 1,049,985 $ 1,049,985 $ — $ — Deposits with banks $ 39,425 $ 39,461 $ 2,030 $ 37,431 $ — Notes receivable, net $ 18,694 $ 17,212 $ — $ — $ 17,212 Secured financings receivable $ 480,160 $ 480,160 $ — $ 480,160 $ — Liabilities: Secured financings payable $ 441,657 $ 441,657 $ — $ 441,657 $ — Notes and contracts payable $ 847,159 $ 900,755 $ — $ 896,153 $ 4,602 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Cash and cash equivalents $ 1,485,959 $ 1,485,959 $ 1,485,959 $ — $ — Deposits with banks $ 44,422 $ 44,339 $ 4,074 $ 40,265 $ — Notes receivable, net $ 18,970 $ 19,422 $ — $ — $ 19,422 Secured financings receivable $ 287,459 $ 287,459 $ — $ 287,459 $ — Liabilities: Secured financings payable $ 278,412 $ 278,412 $ — $ 278,412 $ — Notes and contracts payable $ 728,232 $ 761,224 $ — $ 756,306 $ 4,918 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 12 – Share-Based Compensation The following table presents costs associated with the Company’s share-based compensation plans: Three Months Ended (in thousands) 2020 2019 Expense: RSUs $ 24,658 $ 18,348 Employee stock purchase plan 1,245 1,249 $ 25,903 $ 19,597 The following table summarizes RSU activity for the three months ended March 31, 2020: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average grant-date fair value Unvested at December 31, 2019 1,152 $ 49.25 Granted during 2020 717 $ 64.68 Vested during 2020 (788 ) $ 52.68 Forfeited during 2020 (3 ) $ 55.12 Unvested at March 31, 2020 1,078 $ 56.99 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 13 – Stockholders’ Equity The Company maintains a stock repurchase plan with authorization up to $250.0 million, of which $95.8 million remained as of March 31, 2020. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the three months ended March 31, 2020, the Company repurchased and retired 1.7 million shares of its common stock for a total purchase price of $65.8 million and as of March 31, 2020, had repurchased and retired 5.3 million shares of its common stock under the current authorization for a total purchase price of $154.2 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | Note 14 – Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table presents a summary of the changes in each component of AOCI for the three months ended March 31, 2020: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance Balance at December 31, 2019 $ 83,117 $ (51,668 ) $ (72,941 ) $ (41,492 ) $ 1 $ (41,491 ) Change in unrealized gains (losses) on debt securities 18,096 — — 18,096 — 18,096 Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings 122 — — 122 — 122 Change in foreign currency translation adjustment — (34,688 ) — (34,688 ) — (34,688 ) Amortization of net actuarial loss — — 1,320 1,320 — 1,320 Amortization of prior service credit — — (777 ) (777 ) — (777 ) Tax effect (5,514 ) 1,132 (144 ) (4,526 ) — (4,526 ) Balance at March 31, 2020 $ 95,821 $ (85,224 ) $ (72,542 ) $ (61,945 ) $ 1 $ (61,944 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2020 and 2019: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended March 31, 2020 Pretax change before reclassifications $ 15,396 $ (34,688 ) $ — $ (19,292 ) Reclassifications out of AOCI 2,822 — 543 3,365 Tax effect (5,514 ) 1,132 (144 ) (4,526 ) Total other comprehensive income (loss), net of tax $ 12,704 $ (33,556 ) $ 399 $ (20,453 ) Three Months Ended March 31, 2019 Pretax change before reclassifications $ 77,765 $ 7,166 $ — $ 84,931 Reclassifications out of AOCI 41 — (103 ) (62 ) Tax effect (18,301 ) (278 ) 27 (18,552 ) Total other comprehensive income (loss), net of tax $ 59,505 $ 6,888 $ (76 ) $ 66,317 The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: (in thousands) Amounts reclassified from AOCI Affected line items in the condensed Three Months Ended March 31, 2020 2019 Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of $ 4,671 $ (41 ) Net realized investment (losses) gains Credit losses recognized on debt securities (7,493 ) — Net realized investment (losses) gains Pretax total $ (2,822 ) $ (41 ) Tax effect $ 854 $ 10 Pension benefit adjustment (1): Amortization of net actuarial loss $ (1,320 ) $ (915 ) Other operating expenses Amortization of prior service credit 777 1,018 Other operating expenses Pretax total $ (543 ) $ 103 Tax effect $ 224 $ (27 ) (1) These components of AOCI are components of net periodic cost. See Note 10 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | Note 15 – Litigation and Regulatory Contingencies The Company and its subsidiaries are parties to a number of non-ordinary course lawsuits. These lawsuits frequently are similar in nature to other lawsuits pending against the Company’s competitors. For those non-ordinary course lawsuits where the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company’s financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded. It is, however, often not possible to assess the probability of loss. Lawsuits that are putative class actions require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner the Company’s activities, the making of factual allegations sufficient to suggest that the Company’s activities exceeded the limits of the law and a determination by the court—known as class certification—that the law permits a group of individuals to pursue the case together as a class. In certain instances, the Company may also be able to compel the plaintiff to arbitrate its claim on an individual basis. If these procedural requirements are not met, either the lawsuit cannot proceed or, as is the case with class certification or compelled arbitration, the plaintiffs lose the financial incentive to proceed with the case (or the amount at issue effectively becomes de minimis). Frequently, a court’s determination as to these procedural requirements is subject to appeal to a higher court. As a result of, among other factors, ambiguities and inconsistencies in the laws applicable to the Company’s business and the uniqueness of the factual issues presented in any given lawsuit, the Company often cannot determine the probability of loss until a court has finally determined that a plaintiff has satisfied applicable procedural requirements. Furthermore, for putative class actions, it is often impossible to estimate the possible loss or a range of loss amounts, even where the Company has determined that a loss is reasonably possible. Generally class actions involve a large number of people and the effort to determine which people satisfy the requirements to become plaintiffs—or class members—is often time consuming and burdensome. Moreover, these lawsuits raise complex factual issues which result in uncertainty as to their outcome and, ultimately, make it difficult for the Company to estimate the amount of damages which a plaintiff might successfully prove. In addition, many of the Company’s businesses are regulated by various federal, state, local and foreign governmental agencies and are subject to numerous statutory guidelines. These regulations and statutory guidelines often are complex, inconsistent or ambiguous, which results in additional uncertainty as to the outcome of a given lawsuit—including the amount of damages a plaintiff might be afforded—or makes it difficult to analogize experience in one case or jurisdiction to another case or jurisdiction. Most of the non-ordinary course lawsuits to which the Company and its subsidiaries are parties challenge practices in the Company’s title insurance business, though a limited number of cases also pertain to the Company’s other businesses. These lawsuits include, among others, cases alleging, among other assertions, that the Company or one of its subsidiaries improperly charged fees for products and services, improperly handled property and casualty claims and gave items of value to builders as inducements to refer business in violation of certain laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including: • Antao Properties LLC vs. First American Title Insurance Company, filed on November 6, 2019 and pending in the United States District Court for the Middle District of Florida, • Tenefufu vs. First American Specialty Insurance Company, filed on June 1, 2017 and pending in the Superior Court of the State of California, County of Sacramento, and • Wilmot v. First American Financial Corporation, et al., filed on April 20, 2007 and pending in the Superior Court of the State of California, County of Los Angeles. These lawsuits are putative class actions for which a class has not been certified. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. The Company and/or its subsidiaries are also parties to numerous class action lawsuits as a result of the information security incident that occurred during the second quarter of 2019 . All of these lawsuits are putative class actions for which a class has not been certified. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. While some of the lawsuits described above may be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that any of these lawsuits will have a material adverse effect on the Company’s overall financial condition or liquidity. The Company also is a party to non-ordinary course lawsuits other than those described above. With respect to these lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the condensed consolidated financial statements as a whole. The Company’s title insurance, property and casualty insurance, home warranty, banking, thrift, trust and wealth management businesses are regulated by various federal, state and local governmental agencies. Many of the Company’s other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company’s operations. These include numerous regulatory inquiries and/or investigations as a result of the information security incident that occurred during the second quarter of 2019, including inquiries and/or investigations of certain state insurance regulators, the Federal Trade Commission and the Securities and Exchange Commission. These also include an inquiry by the New York Attorney General and the Massachusetts Attorney General into competitive practices in the title insurance industry. With respect to matters where the Company has determined that a loss is both probable and reasonably estimable, the Company records a liability representing its best estimate of the financial exposure based on known facts. While the ultimate disposition of each such exam or investigation is not yet determinable, the Company does not believe that individually or in the aggregate they will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. These exams or investigations could, however, result in changes to the Company’s business practices which could ultimately have a material adverse impact on the Company’s financial condition, results of operations or cash flows. The Company’s Canadian operations provide certain services to lenders which it believes to be exempt from excise tax under applicable Canadian tax laws. However, in October 2014, the Canadian taxing authority provided internal guidance that the services in question should be subject to the excise tax. During July 2019, the Company received an assessment from the Canadian taxing authority. The amount of the assessment is $13.8 million, which is based on the exchange rate as of, and includes interest charges through, March 31, 2020. As the Company does not believe that the services in question are subject to excise tax, it intends to avail itself of avenues of appeal, and it believes it is reasonably likely that the Company will prevail on the merits. Accordingly, the Company filed a notice of appeal with the Canadian taxing authority in March 2020. Based on the current facts and circumstances, the Company does not believe a loss is probable, therefore no liability has been recorded. The Company and its subsidiaries also are involved in numerous ongoing routine legal and regulatory proceedings related to their operations. With respect to each of these proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the condensed consolidated financial statements as a whole. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Note 16 – Business Combinations During the three months ended March 31, 2020, the Company completed acquisitions for an aggregate purchase price of $391.9 million, which were funded through cash on hand and additional borrowings of $120.0 million under the Company’s credit facility. For acquisitions in which the Company has not completed its purchase price allocation, preliminary fair value estimates for the assets acquired and liabilities assumed have been recorded. The Company allocates the purchase price of each acquisition to the assets acquired and liabilities assumed using a variety of valuation techniques, including discounted cash flow analysis. These acquisitions have been included in the Company’s title insurance and services segment. Current quarter acquisitions included the purchase of a company that provides document, eClose and fulfillment technology for the mortgage industry on March 2, 2020 for a purchase price of $350.0 million. In connection with the purchase, the Company has recorded preliminary estimates for goodwill, property and equipment and other intangible assets of $197.9 million, $50.0 million and $90.0 million, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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, many of which products, services and solutions involve the use of real property-related data; maintains, manages and provides access to title plant data and records; provides document generation and delivery services; and provides appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, evidence of title, 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 and actively issues policies in 46 states. The majority of policy liability is in the western United States, including approximately 59% in California. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. 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 36 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, 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 For the three months ended March 31, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,172,180 $ 142,007 $ 31,162 $ 25,479 Specialty Insurance 122,182 17,785 1,734 2,497 Corporate 9,559 (18,122 ) 38 — Eliminations (340 ) — — — $ 1,303,581 $ 141,670 $ 32,934 $ 27,976 (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 $ 402,756 $ 501,537 $ 170,089 $ 70,053 $ 27,745 $ 1,172,180 Specialty Insurance 111,446 — 3,067 2,732 4,937 122,182 $ 514,202 $ 501,537 $ 173,156 $ 72,785 $ 32,682 $ 1,294,362 |
Coronavirus Pandemic
Coronavirus Pandemic | 3 Months Ended |
Mar. 31, 2020 | |
Loss Contingency [Abstract] | |
Coronavirus Pandemic | Note 18 – Coronavirus Pandemic The coronavirus pandemic and responses to it have created significant volatility, uncertainty and economic disruption. The extent to which the coronavirus pandemic impacts the Company’s business, operations and financial results will depend on numerous factors that the Company may not be able to accurately predict, including: the duration and scope of the pandemic and restrictions and responses to it; governmental, business and individual actions that have been and will continue to be taken in response to the pandemic; the ongoing impact of the pandemic on economic activity and actions taken in response, including the efficacy of governmental relief efforts; the effect on participants in real estate transactions and the demand for the Company’s products and services, including as a result of higher unemployment, business closures and economic uncertainty; and the Company’s ability to sell and provide its services and solutions, including as a result of illness, travel restrictions, people working from home, governmental closure orders and partial or full closures of business and government offices. During the first quarter of 2020, for example, the Company experienced increased volatility in its investment portfolio. Also, the number of residential purchase orders opened by the Company’s direct title operations declined sharply in the middle of March 2020. For the first three weeks in April 2020, open purchase orders are down 43.4% compared to the same three weeks of 2019. In addition, revenue from the Company’s commercial business, for the first three weeks in April 2020, has declined 44.1% compared to the same three weeks of 2019. |
Basis of Condensed Consolidat_2
Basis of Condensed Consolidated Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued updated guidance that is intended to reduce potential diversity in practice in accounting for the costs of implementing cloud computing arrangements (i.e., hosting arrangements) that are service contracts. The updated guidance aligns the requirements for capitalizing implementation costs for these arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued updated guidance as part of its disclosure framework project intended to improve the effectiveness of disclosures in the notes to the financial statements. The updated guidance eliminates, adds and modifies certain disclosure requirements related to fair value measurements. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued updated guidance intended to simplify how an entity tests goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the updated guidance, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The adoption of this guidance, effective January 1, 2020 and applied prospectively, did not have a material impact, except for the disclosure requirements, on the Company’s condensed consolidated financial statements. See Note 3 Debt and Equity Securities and Note 4 Credit Losses – Financial Assets and Off-Balance Sheet Credit Exposures for further information on the Company’s credit losses. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements In December 2019, the FASB issued updated guidance intended to simplify and improve the accounting for income taxes. The updated guidance eliminates certain exceptions and clarifies and amends certain areas of the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments in Debt Securities, Classified as Available-For-Sale | Investments in debt securities, classified as available-for-sale, are as follows: (in thousands) Amortized Allowance for credit losses (1) Gross unrealized Estimated Gains Losses March 31, 2020 U.S. Treasury bonds $ 120,676 $ — $ 2,032 $ — $ 122,708 Municipal bonds 1,008,935 — 41,978 (1,971 ) 1,048,942 Foreign government bonds 154,968 (399 ) 4,254 (525 ) 158,298 Governmental agency bonds 285,947 — 13,153 (5 ) 299,095 Governmental agency mortgage-backed securities 3,264,553 — 91,671 (7,848 ) 3,348,376 U.S. corporate debt securities 547,250 (5,886 ) 12,250 (14,333 ) 539,281 Foreign corporate debt securities 329,595 (1,208 ) 3,121 (8,678 ) 322,830 $ 5,711,924 $ (7,493 ) $ 168,459 $ (33,360 ) $ 5,839,530 December 31, 2019 U.S. Treasury bonds $ 143,825 $ — $ 469 $ (353 ) $ 143,941 Municipal bonds 1,043,252 — 47,804 (217 ) 1,090,839 Foreign government bonds 179,554 — 1,497 (961 ) 180,090 Governmental agency bonds 316,318 — 5,820 (219 ) 321,919 Governmental agency mortgage-backed securities 3,241,966 — 43,599 (7,307 ) 3,278,258 U.S. corporate debt securities 535,878 — 18,466 (972 ) 553,372 Foreign corporate debt securities 335,962 — 9,468 (213 ) 345,217 $ 5,796,755 $ — $ 127,123 $ (10,242 ) $ 5,913,636 |
Gross Unrealized Losses on Investments in Debt Securities | Gross unrealized losses on investments in debt securities for which an allowance for credit losses has not been recorded, are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses March 31, 2020 Municipal bonds $ 64,810 $ (1,965 ) $ 790 $ (6 ) $ 65,600 $ (1,971 ) Foreign government bonds 32,427 (525 ) — — 32,427 (525 ) Governmental agency bonds 1,540 (5 ) — — 1,540 (5 ) Governmental agency mortgage-backed securities 451,608 (3,315 ) 478,847 (4,533 ) 930,455 (7,848 ) U.S. corporate debt securities 225,547 (13,868 ) 2,869 (465 ) 228,416 (14,333 ) Foreign corporate debt securities 195,407 (8,629 ) 698 (49 ) 196,105 (8,678 ) $ 971,339 $ (28,307 ) $ 483,204 $ (5,053 ) $ 1,454,543 $ (33,360 ) December 31, 2019 U.S. Treasury bonds $ 12,507 $ (350 ) $ 3,193 $ (3 ) $ 15,700 $ (353 ) Municipal bonds 29,333 (207 ) 2,827 (10 ) 32,160 (217 ) Foreign government bonds 112,167 (934 ) 11,001 (27 ) 123,168 (961 ) Governmental agency bonds 24,493 (142 ) 14,923 (77 ) 39,416 (219 ) Governmental agency mortgage-backed securities 719,602 (2,785 ) 637,009 (4,522 ) 1,356,611 (7,307 ) U.S. corporate debt securities 42,607 (451 ) 10,216 (521 ) 52,823 (972 ) Foreign corporate debt securities 30,895 (108 ) 12,373 (105 ) 43,268 (213 ) $ 971,604 $ (4,977 ) $ 691,542 $ (5,265 ) $ 1,663,146 $ (10,242 ) |
Rollforward of Allowance for Credit Losses for Investments in Debt Securities | Activity in the allowance for credit losses on debt securities is summarized as follows: (in thousands) Three Months Ended Balance at beginning of period $ — Credit losses recognized during the period (7,493 ) Balance at end of period $ (7,493 ) |
Investments in Debt Securities by Contractual Maturity | Investments in debt securities at March 31, 2020, by contractual maturities, are as follows: (in thousands) Due in one year or less Due after one through five years Due after five through ten years Due after ten years Total U.S. Treasury bonds Amortized cost $ 65,958 $ 51,199 $ 1,025 $ 2,494 $ 120,676 Estimated fair value $ 66,287 $ 52,545 $ 1,152 $ 2,724 $ 122,708 Municipal bonds Amortized cost $ 62,536 $ 130,688 $ 332,696 $ 483,015 $ 1,008,935 Estimated fair value $ 62,788 $ 132,402 $ 347,166 $ 506,586 $ 1,048,942 Foreign government bonds Amortized cost $ 22,647 $ 61,278 $ 57,108 $ 13,935 $ 154,968 Estimated fair value $ 22,652 $ 62,676 $ 59,523 $ 13,447 $ 158,298 Governmental agency bonds Amortized cost $ 7,673 $ 84,475 $ 132,414 $ 61,385 $ 285,947 Estimated fair value $ 7,733 $ 87,291 $ 137,197 $ 66,874 $ 299,095 U.S. corporate debt securities Amortized cost $ 23,210 $ 303,513 $ 173,846 $ 46,681 $ 547,250 Estimated fair value $ 23,192 $ 301,707 $ 167,908 $ 46,474 $ 539,281 Foreign corporate debt securities Amortized cost $ 23,461 $ 202,346 $ 75,858 $ 27,930 $ 329,595 Estimated fair value $ 23,428 $ 199,226 $ 73,886 $ 26,290 $ 322,830 Total debt securities excluding mortgage-backed securities Amortized cost $ 205,485 $ 833,499 $ 772,947 $ 635,440 $ 2,447,371 Estimated fair value $ 206,080 $ 835,847 $ 786,832 $ 662,395 $ 2,491,154 Total mortgage-backed securities Amortized cost $ 3,264,553 Estimated fair value $ 3,348,376 Total debt securities Amortized cost $ 5,711,924 Estimated fair value $ 5,839,530 |
Investments in Equity Securities | Investments in equity securities are as follows: (in thousands) Cost Estimated fair value March 31, 2020 Preferred stocks $ 20,284 $ 13,308 Common stocks 396,635 363,988 $ 416,919 $ 377,296 December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 |
Composition of Investment Portfolio by Credit Rating Agencies | The composition of the investment portfolio at March 31, 2020, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Debt securities: U.S. Treasury bonds $ 122,708 100.0 $ — — $ — — $ 122,708 100.0 Municipal bonds 1,003,827 95.7 43,777 4.2 1,338 0.1 1,048,942 100.0 Foreign government bonds 144,010 91.0 11,761 7.4 2,527 1.6 158,298 100.0 Governmental agency bonds 299,095 100.0 — — — — 299,095 100.0 Governmental agency mortgage-backed securities 3,348,376 100.0 — — — — 3,348,376 100.0 U.S. corporate debt securities 250,839 46.5 218,235 40.5 70,207 13.0 539,281 100.0 Foreign corporate debt securities 129,565 40.1 167,265 51.8 26,000 8.1 322,830 100.0 Total debt securities 5,298,420 90.7 441,038 7.6 100,072 1.7 5,839,530 100.0 Preferred stocks 28 0.2 12,589 94.6 691 5.2 13,308 100.0 Total $ 5,298,448 90.5 $ 453,627 7.8 $ 100,763 1.7 $ 5,852,838 100.0 |
Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies | The composition of the debt securities portfolio in an unrealized loss position at March 31, 2020, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Municipal bonds $ 46,321 70.6 $ 19,279 29.4 $ — — $ 65,600 100.0 Foreign government bonds 24,960 77.0 6,139 18.9 1,328 4.1 32,427 100.0 Governmental agency bonds 1,540 100.0 — — — — 1,540 100.0 Governmental agency mortgage-backed securities 930,455 100.0 — — — — 930,455 100.0 U.S. corporate debt securities 68,401 30.0 102,437 44.8 57,578 25.2 228,416 100.0 Foreign corporate debt securities 67,625 34.5 108,333 55.2 20,147 10.3 196,105 100.0 Total $ 1,139,302 78.4 $ 236,188 16.2 $ 79,063 5.4 $ 1,454,543 100.0 |
Credit Losses - Financial Ass_2
Credit Losses - Financial Assets and Off - Balance Sheet Credit Exposures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses on Accounts Receivables | Activity in the allowance for credit losses on accounts receivable is summarized as follows: (in thousands) Three Months Ended Balance at beginning of period (1) $ 12,676 Provision for expected credit losses 1,003 Write-offs, net of recoveries (2,103 ) Balance at end of period $ 11,576 (1) Amount reflects the allowance determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | A summary of the changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2020, is as follows: (in thousands) Title Insurance and Services Specialty Insurance Total Balance at December 31, 2019 $ 1,104,143 $ 46,765 $ 1,150,908 Acquisitions 236,242 — 236,242 Dispositions (358 ) — (358 ) Foreign currency translation (5,297 ) — (5,297 ) Balance at March 31, 2020 $ 1,334,730 $ 46,765 $ 1,381,495 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets Gross Excluding Goodwill [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consist of the following: (in thousands) March 31, 2020 December 31, 2019 Finite-lived intangible assets: Customer relationships $ 150,700 $ 99,905 Noncompete agreements 32,198 13,150 Trademarks 25,312 10,520 Internal-use software licenses 18,812 21,982 Patents 2,840 2,840 229,862 148,397 Accumulated amortization (62,786 ) (73,449 ) 167,076 74,948 Indefinite-lived intangible assets: Licenses 16,885 16,885 $ 183,961 $ 91,833 |
Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2020 $ 28,650 2021 $ 28,394 2022 $ 27,285 2023 $ 25,461 2024 $ 20,094 2025 $ 14,352 |
Reserve for Known and Incurre_2
Reserve for Known and Incurred but Not Reported Claims (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
Activity in Reserve for Known and Incurred but Not Reported Claims | Activity in the reserve for known and incurred but not reported claims is summarized as follows: Three Months Ended (in thousands) 2020 2019 Balance at beginning of period $ 1,063,044 $ 1,042,679 Provision related to: Current year 103,213 88,603 Prior years 14,264 9,109 117,477 97,712 Payments, net of recoveries, related to: Current year 32,685 30,446 Prior years 75,853 69,546 108,538 99,992 Other (14,445 ) (6,765 ) Balance at end of period $ 1,057,538 $ 1,033,634 A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) March 31, 2020 December 31, 2019 Known title claims $ 73,829 7.0 % $ 83,382 7.8 % Incurred but not reported claims 915,192 86.5 % 903,994 85.1 % Total title claims 989,021 93.5 % 987,376 92.9 % Non-title claims 68,517 6.5 % 75,668 7.1 % Total loss reserves $ 1,057,538 100.0 % $ 1,063,044 100.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended (in thousands, except per share amounts) 2020 2019 Numerator Net income attributable to the Company $ 63,204 $ 109,575 Denominator Basic weighted-average shares 113,556 112,703 Effect of dilutive employee stock options and 403 521 Diluted weighted-average shares 113,959 113,224 Net income per share attributable to the Company’s stockholders Basic $ 0.56 $ 0.97 Diluted $ 0.55 $ 0.97 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Cost | Net periodic cost related to the Company’s unfunded supplemental benefit plans includes the following components: Three Months Ended (in thousands) 2020 2019 Expense: Service costs $ 45 $ 70 Interest costs 1,781 2,279 Amortization of net actuarial loss 1,320 915 Amortization of prior service credit (777 ) (1,018 ) $ 2,369 $ 2,246 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured on Recurring Basis | The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of March 31, 2020 and December 31, 2019: (in thousands) Total Level 1 Level 2 Level 3 March 31, 2020 Debt securities: U.S. Treasury bonds $ 122,708 $ — $ 122,708 $ — Municipal bonds 1,048,942 — 1,048,942 — Foreign government bonds 158,298 — 158,298 — Governmental agency bonds 299,095 — 299,095 — Governmental agency mortgage-backed securities 3,348,376 — 3,348,376 — U.S. corporate debt securities 539,281 — 539,281 — Foreign corporate debt securities 322,830 — 322,830 — 5,839,530 — 5,839,530 — Equity securities: Preferred stocks 13,308 13,308 — — Common stocks 363,988 363,988 — — 377,296 377,296 — — Total assets $ 6,216,826 $ 377,296 $ 5,839,530 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2019 Debt securities: U.S. Treasury bonds $ 143,941 $ — $ 143,941 $ — Municipal bonds 1,090,839 — 1,090,839 — Foreign government bonds 180,090 — 180,090 — Governmental agency bonds 321,919 — 321,919 — Governmental agency mortgage-backed securities 3,278,258 — 3,278,258 — U.S. corporate debt securities 553,372 — 553,372 — Foreign corporate debt securities 345,217 — 345,217 — 5,913,636 — 5,913,636 — Equity securities: Preferred stocks 18,094 18,094 — — Common stocks 374,224 374,224 — — 392,318 392,318 — — Total assets $ 6,305,954 $ 392,318 $ 5,913,636 $ — |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of March 31, 2020 and December 31, 2019: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 March 31, 2020 Assets: Cash and cash equivalents $ 1,049,985 $ 1,049,985 $ 1,049,985 $ — $ — Deposits with banks $ 39,425 $ 39,461 $ 2,030 $ 37,431 $ — Notes receivable, net $ 18,694 $ 17,212 $ — $ — $ 17,212 Secured financings receivable $ 480,160 $ 480,160 $ — $ 480,160 $ — Liabilities: Secured financings payable $ 441,657 $ 441,657 $ — $ 441,657 $ — Notes and contracts payable $ 847,159 $ 900,755 $ — $ 896,153 $ 4,602 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Cash and cash equivalents $ 1,485,959 $ 1,485,959 $ 1,485,959 $ — $ — Deposits with banks $ 44,422 $ 44,339 $ 4,074 $ 40,265 $ — Notes receivable, net $ 18,970 $ 19,422 $ — $ — $ 19,422 Secured financings receivable $ 287,459 $ 287,459 $ — $ 287,459 $ — Liabilities: Secured financings payable $ 278,412 $ 278,412 $ — $ 278,412 $ — Notes and contracts payable $ 728,232 $ 761,224 $ — $ 756,306 $ 4,918 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Costs Associated with Share-Based Compensation Plans | The following table presents costs associated with the Company’s share-based compensation plans: Three Months Ended (in thousands) 2020 2019 Expense: RSUs $ 24,658 $ 18,348 Employee stock purchase plan 1,245 1,249 $ 25,903 $ 19,597 |
Summary of RSU Activity | The following table summarizes RSU activity for the three months ended March 31, 2020: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average grant-date fair value Unvested at December 31, 2019 1,152 $ 49.25 Granted during 2020 717 $ 64.68 Vested during 2020 (788 ) $ 52.68 Forfeited during 2020 (3 ) $ 55.12 Unvested at March 31, 2020 1,078 $ 56.99 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of the changes in each component of AOCI for the three months ended March 31, 2020: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance Balance at December 31, 2019 $ 83,117 $ (51,668 ) $ (72,941 ) $ (41,492 ) $ 1 $ (41,491 ) Change in unrealized gains (losses) on debt securities 18,096 — — 18,096 — 18,096 Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings 122 — — 122 — 122 Change in foreign currency translation adjustment — (34,688 ) — (34,688 ) — (34,688 ) Amortization of net actuarial loss — — 1,320 1,320 — 1,320 Amortization of prior service credit — — (777 ) (777 ) — (777 ) Tax effect (5,514 ) 1,132 (144 ) (4,526 ) — (4,526 ) Balance at March 31, 2020 $ 95,821 $ (85,224 ) $ (72,542 ) $ (61,945 ) $ 1 $ (61,944 ) |
Adjustments for Reclassification of Other Comprehensive Income (Loss) | The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2020 and 2019: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended March 31, 2020 Pretax change before reclassifications $ 15,396 $ (34,688 ) $ — $ (19,292 ) Reclassifications out of AOCI 2,822 — 543 3,365 Tax effect (5,514 ) 1,132 (144 ) (4,526 ) Total other comprehensive income (loss), net of tax $ 12,704 $ (33,556 ) $ 399 $ (20,453 ) Three Months Ended March 31, 2019 Pretax change before reclassifications $ 77,765 $ 7,166 $ — $ 84,931 Reclassifications out of AOCI 41 — (103 ) (62 ) Tax effect (18,301 ) (278 ) 27 (18,552 ) Total other comprehensive income (loss), net of tax $ 59,505 $ 6,888 $ (76 ) $ 66,317 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: (in thousands) Amounts reclassified from AOCI Affected line items in the condensed Three Months Ended March 31, 2020 2019 Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of $ 4,671 $ (41 ) Net realized investment (losses) gains Credit losses recognized on debt securities (7,493 ) — Net realized investment (losses) gains Pretax total $ (2,822 ) $ (41 ) Tax effect $ 854 $ 10 Pension benefit adjustment (1): Amortization of net actuarial loss $ (1,320 ) $ (915 ) Other operating expenses Amortization of prior service credit 777 1,018 Other operating expenses Pretax total $ (543 ) $ 103 Tax effect $ 224 $ (27 ) (1) These components of AOCI are components of net periodic cost. See Note 10 Employee Benefit Plans for additional details. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, is as follows: 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 For the three months ended March 31, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,172,180 $ 142,007 $ 31,162 $ 25,479 Specialty Insurance 122,182 17,785 1,734 2,497 Corporate 9,559 (18,122 ) 38 — Eliminations (340 ) — — — $ 1,303,581 $ 141,670 $ 32,934 $ 27,976 (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 $ 402,756 $ 501,537 $ 170,089 $ 70,053 $ 27,745 $ 1,172,180 Specialty Insurance 111,446 — 3,067 2,732 4,937 122,182 $ 514,202 $ 501,537 $ 173,156 $ 72,785 $ 32,682 $ 1,294,362 |
Escrow Deposits, Like-Kind Ex_2
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets (Narrative) (Detail) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets [Line Items] | ||
Escrow deposits | $ 7.7 | $ 7.3 |
Like-kind exchange funds | 2.9 | 3 |
First American Trust | ||
Other Assets [Line Items] | ||
Escrow deposits | 3.3 | 3.2 |
Assets held-in-trust | $ 4 | $ 4.2 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | $ 5,711,924 | $ 5,796,755 | |
Debt Securities, Allowance for credit losses | [1] | (7,493) | 0 |
Debt Securities, Gross unrealized gains | 168,459 | 127,123 | |
Debt Securities, Gross unrealized losses | (33,360) | (10,242) | |
Debt securities, Estimated fair value | 5,839,530 | 5,913,636 | |
U.S. Treasury bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 120,676 | 143,825 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 2,032 | 469 | |
Debt Securities, Gross unrealized losses | 0 | (353) | |
Debt securities, Estimated fair value | 122,708 | 143,941 | |
Municipal bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 1,008,935 | 1,043,252 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 41,978 | 47,804 | |
Debt Securities, Gross unrealized losses | (1,971) | (217) | |
Debt securities, Estimated fair value | 1,048,942 | 1,090,839 | |
Foreign government bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 154,968 | 179,554 | |
Debt Securities, Allowance for credit losses | [1] | (399) | 0 |
Debt Securities, Gross unrealized gains | 4,254 | 1,497 | |
Debt Securities, Gross unrealized losses | (525) | (961) | |
Debt securities, Estimated fair value | 158,298 | 180,090 | |
Governmental agency bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 285,947 | 316,318 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 13,153 | 5,820 | |
Debt Securities, Gross unrealized losses | (5) | (219) | |
Debt securities, Estimated fair value | 299,095 | 321,919 | |
Governmental agency mortgage-backed securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 3,264,553 | 3,241,966 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 91,671 | 43,599 | |
Debt Securities, Gross unrealized losses | (7,848) | (7,307) | |
Debt securities, Estimated fair value | 3,348,376 | 3,278,258 | |
U.S. corporate debt securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 547,250 | 535,878 | |
Debt Securities, Allowance for credit losses | [1] | (5,886) | 0 |
Debt Securities, Gross unrealized gains | 12,250 | 18,466 | |
Debt Securities, Gross unrealized losses | (14,333) | (972) | |
Debt securities, Estimated fair value | 539,281 | 553,372 | |
Foreign corporate debt securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 329,595 | 335,962 | |
Debt Securities, Allowance for credit losses | [1] | (1,208) | 0 |
Debt Securities, Gross unrealized gains | 3,121 | 9,468 | |
Debt Securities, Gross unrealized losses | (8,678) | (213) | |
Debt securities, Estimated fair value | $ 322,830 | $ 345,217 | |
[1] | Represents the amount of impairment resulting from credit-related factors and is included in net realized investment gains/losses in the condensed consolidated statements of income for the three months ended March 31, 2020. |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule Of Debt and Equity Securities [Line Items] | |||
Realized gains on sales of debt securities | $ 6,200 | $ 3,100 | |
Realized losses on sales of debt securities | 1,300 | 3,000 | |
Proceeds from sale of debt securities | 209,400 | 391,400 | |
Accrued interest receivable | 27,200 | ||
Realized and unrealized net gains (losses) on equity securities | (82,500) | 32,500 | |
Net unrealized gains (losses) on equity securities | (82,400) | $ 29,000 | |
Debt securities, Estimated fair value | 5,839,530 | $ 5,913,636 | |
Estimated fair value of debt securities, Unrealized loss position | 1,454,543 | $ 1,663,146 | |
Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 67,700 | ||
Estimated fair value of debt securities, Unrealized loss position | 60,900 | ||
Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 62,100 | ||
Estimated fair value of debt securities, Unrealized loss position | 35,900 | ||
Non-Investment Grade | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 100,072 | ||
Estimated fair value of debt securities, Unrealized loss position | 79,063 | ||
Non-Investment Grade | Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 61,400 | ||
Estimated fair value of debt securities, Unrealized loss position | 54,700 | ||
Non-Investment Grade | High Yield Corporate Debt Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 30,600 | ||
Estimated fair value of debt securities, Unrealized loss position | 20,100 | ||
Non-Investment Grade | Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 6,700 | ||
Estimated fair value of debt securities, Unrealized loss position | $ 4,300 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 971,339 | $ 971,604 |
Unrealized losses, Less than 12 months | (28,307) | (4,977) |
Estimated fair value, 12 months or longer | 483,204 | 691,542 |
Unrealized losses, 12 months or longer | (5,053) | (5,265) |
Estimated fair value, Total | 1,454,543 | 1,663,146 |
Unrealized losses, Total | (33,360) | (10,242) |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 64,810 | 29,333 |
Unrealized losses, Less than 12 months | (1,965) | (207) |
Estimated fair value, 12 months or longer | 790 | 2,827 |
Unrealized losses, 12 months or longer | (6) | (10) |
Estimated fair value, Total | 65,600 | 32,160 |
Unrealized losses, Total | (1,971) | (217) |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 32,427 | 112,167 |
Unrealized losses, Less than 12 months | (525) | (934) |
Estimated fair value, 12 months or longer | 0 | 11,001 |
Unrealized losses, 12 months or longer | 0 | (27) |
Estimated fair value, Total | 32,427 | 123,168 |
Unrealized losses, Total | (525) | (961) |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 1,540 | 24,493 |
Unrealized losses, Less than 12 months | (5) | (142) |
Estimated fair value, 12 months or longer | 0 | 14,923 |
Unrealized losses, 12 months or longer | 0 | (77) |
Estimated fair value, Total | 1,540 | 39,416 |
Unrealized losses, Total | (5) | (219) |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 451,608 | 719,602 |
Unrealized losses, Less than 12 months | (3,315) | (2,785) |
Estimated fair value, 12 months or longer | 478,847 | 637,009 |
Unrealized losses, 12 months or longer | (4,533) | (4,522) |
Estimated fair value, Total | 930,455 | 1,356,611 |
Unrealized losses, Total | (7,848) | (7,307) |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 225,547 | 42,607 |
Unrealized losses, Less than 12 months | (13,868) | (451) |
Estimated fair value, 12 months or longer | 2,869 | 10,216 |
Unrealized losses, 12 months or longer | (465) | (521) |
Estimated fair value, Total | 228,416 | 52,823 |
Unrealized losses, Total | (14,333) | (972) |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 195,407 | 30,895 |
Unrealized losses, Less than 12 months | (8,629) | (108) |
Estimated fair value, 12 months or longer | 698 | 12,373 |
Unrealized losses, 12 months or longer | (49) | (105) |
Estimated fair value, Total | 196,105 | 43,268 |
Unrealized losses, Total | $ (8,678) | (213) |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 12,507 | |
Unrealized losses, Less than 12 months | (350) | |
Estimated fair value, 12 months or longer | 3,193 | |
Unrealized losses, 12 months or longer | (3) | |
Estimated fair value, Total | 15,700 | |
Unrealized losses, Total | $ (353) |
Debt and Equity Securities (Rol
Debt and Equity Securities (Rollforward of Allowance for Credit Losses for Investments in Debt Securities ) (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Investments Debt And Equity Securities [Abstract] | ||
Balance at beginning of period | $ 0 | [1] |
Credit losses recognized during the period | (7,493) | |
Balance at end of period | $ (7,493) | [1] |
[1] | Represents the amount of impairment resulting from credit-related factors and is included in net realized investment gains/losses in the condensed consolidated statements of income for the three months ended March 31, 2020. |
Debt and Equity Securities (I_2
Debt and Equity Securities (Investments in Debt Securities by Contractual Maturity) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 5,711,924 | $ 5,796,755 |
Debt securities, Estimated fair value | 5,839,530 | 5,913,636 |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 65,958 | |
Amortized cost, Due after one through five years | 51,199 | |
Amortized cost, Due after five through ten years | 1,025 | |
Amortized cost, Due after ten years | 2,494 | |
Debt Securities, Amortized cost | 120,676 | 143,825 |
Estimated fair value, Due in one year or less | 66,287 | |
Estimated fair value, Due after one through five years | 52,545 | |
Estimated fair value, Due after five through ten years | 1,152 | |
Estimated fair value, Due after ten years | 2,724 | |
Debt securities, Estimated fair value | 122,708 | 143,941 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 62,536 | |
Amortized cost, Due after one through five years | 130,688 | |
Amortized cost, Due after five through ten years | 332,696 | |
Amortized cost, Due after ten years | 483,015 | |
Debt Securities, Amortized cost | 1,008,935 | 1,043,252 |
Estimated fair value, Due in one year or less | 62,788 | |
Estimated fair value, Due after one through five years | 132,402 | |
Estimated fair value, Due after five through ten years | 347,166 | |
Estimated fair value, Due after ten years | 506,586 | |
Debt securities, Estimated fair value | 1,048,942 | 1,090,839 |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 22,647 | |
Amortized cost, Due after one through five years | 61,278 | |
Amortized cost, Due after five through ten years | 57,108 | |
Amortized cost, Due after ten years | 13,935 | |
Debt Securities, Amortized cost | 154,968 | 179,554 |
Estimated fair value, Due in one year or less | 22,652 | |
Estimated fair value, Due after one through five years | 62,676 | |
Estimated fair value, Due after five through ten years | 59,523 | |
Estimated fair value, Due after ten years | 13,447 | |
Debt securities, Estimated fair value | 158,298 | 180,090 |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 7,673 | |
Amortized cost, Due after one through five years | 84,475 | |
Amortized cost, Due after five through ten years | 132,414 | |
Amortized cost, Due after ten years | 61,385 | |
Debt Securities, Amortized cost | 285,947 | 316,318 |
Estimated fair value, Due in one year or less | 7,733 | |
Estimated fair value, Due after one through five years | 87,291 | |
Estimated fair value, Due after five through ten years | 137,197 | |
Estimated fair value, Due after ten years | 66,874 | |
Debt securities, Estimated fair value | 299,095 | 321,919 |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 23,210 | |
Amortized cost, Due after one through five years | 303,513 | |
Amortized cost, Due after five through ten years | 173,846 | |
Amortized cost, Due after ten years | 46,681 | |
Debt Securities, Amortized cost | 547,250 | 535,878 |
Estimated fair value, Due in one year or less | 23,192 | |
Estimated fair value, Due after one through five years | 301,707 | |
Estimated fair value, Due after five through ten years | 167,908 | |
Estimated fair value, Due after ten years | 46,474 | |
Debt securities, Estimated fair value | 539,281 | 553,372 |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 23,461 | |
Amortized cost, Due after one through five years | 202,346 | |
Amortized cost, Due after five through ten years | 75,858 | |
Amortized cost, Due after ten years | 27,930 | |
Debt Securities, Amortized cost | 329,595 | 335,962 |
Estimated fair value, Due in one year or less | 23,428 | |
Estimated fair value, Due after one through five years | 199,226 | |
Estimated fair value, Due after five through ten years | 73,886 | |
Estimated fair value, Due after ten years | 26,290 | |
Debt securities, Estimated fair value | 322,830 | $ 345,217 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 205,485 | |
Amortized cost, Due after one through five years | 833,499 | |
Amortized cost, Due after five through ten years | 772,947 | |
Amortized cost, Due after ten years | 635,440 | |
Debt Securities, Amortized cost | 2,447,371 | |
Estimated fair value, Due in one year or less | 206,080 | |
Estimated fair value, Due after one through five years | 835,847 | |
Estimated fair value, Due after five through ten years | 786,832 | |
Estimated fair value, Due after ten years | 662,395 | |
Debt securities, Estimated fair value | 2,491,154 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 3,264,553 | |
Estimated fair value | $ 3,348,376 |
Debt and Equity Securities (I_3
Debt and Equity Securities (Investments in Equity Securities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | $ 416,919 | $ 349,959 |
Equity securities, Estimated fair value | 377,296 | 392,318 |
Preferred stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 20,284 | 21,849 |
Equity securities, Estimated fair value | 13,308 | 18,094 |
Common stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 396,635 | 328,110 |
Equity securities, Estimated fair value | $ 363,988 | $ 374,224 |
Debt and Equity Securities (Com
Debt and Equity Securities (Composition of Investment Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,839,530 | $ 5,913,636 |
Equity securities, Estimated fair value | 377,296 | 392,318 |
Estimated fair value, Total | $ 5,852,838 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Percentage of investment portfolio by credit rating agencies | 100.00% | |
U.S. Treasury bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 122,708 | 143,941 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Municipal bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,048,942 | 1,090,839 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign government bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 158,298 | 180,090 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental agency bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 299,095 | 321,919 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental agency mortgage-backed securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,348,376 | 3,278,258 |
Percentage of debt securities by credit rating agencies | 100.00% | |
U.S. corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 539,281 | 553,372 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 322,830 | 345,217 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 13,308 | $ 18,094 |
Percentage of equity securities by credit rating agencies | 100.00% | |
Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,298,420 | |
Estimated fair value, Total | $ 5,298,448 | |
Percentage of debt securities by credit rating agencies | 90.70% | |
Percentage of investment portfolio by credit rating agencies | 90.50% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 441,038 | |
Estimated fair value, Total | $ 453,627 | |
Percentage of debt securities by credit rating agencies | 7.60% | |
Percentage of investment portfolio by credit rating agencies | 7.80% | |
Investment Grade | U.S. Treasury bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 122,708 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | Municipal bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,003,827 | |
Percentage of debt securities by credit rating agencies | 95.70% | |
Investment Grade | Municipal bonds | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 43,777 | |
Percentage of debt securities by credit rating agencies | 4.20% | |
Investment Grade | Foreign government bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 144,010 | |
Percentage of debt securities by credit rating agencies | 91.00% | |
Investment Grade | Foreign government bonds | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 11,761 | |
Percentage of debt securities by credit rating agencies | 7.40% | |
Investment Grade | Governmental agency bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 299,095 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | Governmental agency mortgage-backed securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,348,376 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | U.S. corporate debt securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 250,839 | |
Percentage of debt securities by credit rating agencies | 46.50% | |
Investment Grade | U.S. corporate debt securities | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 218,235 | |
Percentage of debt securities by credit rating agencies | 40.50% | |
Investment Grade | Foreign corporate debt securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 129,565 | |
Percentage of debt securities by credit rating agencies | 40.10% | |
Investment Grade | Foreign corporate debt securities | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 167,265 | |
Percentage of debt securities by credit rating agencies | 51.80% | |
Investment Grade | Preferred stocks | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 28 | |
Percentage of equity securities by credit rating agencies | 0.20% | |
Investment Grade | Preferred stocks | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 12,589 | |
Percentage of equity securities by credit rating agencies | 94.60% | |
Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 100,072 | |
Estimated fair value, Total | $ 100,763 | |
Percentage of debt securities by credit rating agencies | 1.70% | |
Percentage of investment portfolio by credit rating agencies | 1.70% | |
Non-Investment Grade | Municipal bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,338 | |
Percentage of debt securities by credit rating agencies | 0.10% | |
Non-Investment Grade | Foreign government bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,527 | |
Percentage of debt securities by credit rating agencies | 1.60% | |
Non-Investment Grade | U.S. corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 70,207 | |
Percentage of debt securities by credit rating agencies | 13.00% | |
Non-Investment Grade | Foreign corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 26,000 | |
Percentage of debt securities by credit rating agencies | 8.10% | |
Non-Investment Grade | Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 691 | |
Percentage of equity securities by credit rating agencies | 5.20% |
Debt and Equity Securities (C_2
Debt and Equity Securities (Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,454,543 | $ 1,663,146 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 65,600 | 32,160 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 32,427 | 123,168 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,540 | 39,416 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 930,455 | 1,356,611 |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 228,416 | 52,823 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 196,105 | $ 43,268 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,139,302 | |
Percentage of debt securities in unrealized loss position | 78.40% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 236,188 | |
Percentage of debt securities in unrealized loss position | 16.20% | |
Investment Grade | Municipal bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 46,321 | |
Percentage of debt securities in unrealized loss position | 70.60% | |
Investment Grade | Municipal bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 19,279 | |
Percentage of debt securities in unrealized loss position | 29.40% | |
Investment Grade | Foreign government bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 24,960 | |
Percentage of debt securities in unrealized loss position | 77.00% | |
Investment Grade | Foreign government bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 6,139 | |
Percentage of debt securities in unrealized loss position | 18.90% | |
Investment Grade | Governmental agency bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,540 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | Governmental agency bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Investment Grade | Governmental agency mortgage-backed securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 930,455 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | Governmental agency mortgage-backed securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Investment Grade | U.S. corporate debt securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 68,401 | |
Percentage of debt securities in unrealized loss position | 30.00% | |
Investment Grade | U.S. corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 102,437 | |
Percentage of debt securities in unrealized loss position | 44.80% | |
Investment Grade | Foreign corporate debt securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 67,625 | |
Percentage of debt securities in unrealized loss position | 34.50% | |
Investment Grade | Foreign corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 108,333 | |
Percentage of debt securities in unrealized loss position | 55.20% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 79,063 | |
Percentage of debt securities in unrealized loss position | 5.40% | |
Non-Investment Grade | Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,328 | |
Percentage of debt securities in unrealized loss position | 4.10% | |
Non-Investment Grade | Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Non-Investment Grade | Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Non-Investment Grade | U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 57,578 | |
Percentage of debt securities in unrealized loss position | 25.20% | |
Non-Investment Grade | Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 20,147 | |
Percentage of debt securities in unrealized loss position | 10.30% |
Credit Losses - Financial Ass_3
Credit Losses - Financial Assets and Off - Balance Sheet Credit Exposures- Summary of Allowance for Credit Losses on Accounts Receivables (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Receivables [Abstract] | |
Balance at beginning of period | $ 12,676 |
Provision for expected credit losses | 1,003 |
Write-offs, net of recoveries | (2,103) |
Balance at end of period | $ 11,576 |
Credit Losses - Financial Ass_4
Credit Losses - Financial Assets and Off - Balance Sheet Credit Exposures - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
Receivables [Abstract] | |
Accrued interest receivable | $ 3.2 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Reportable Segment) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 1,150,908 |
Acquisitions | 236,242 |
Dispositions | (358) |
Foreign currency translation | (5,297) |
Ending balance | 1,381,495 |
Title Insurance and Services | |
Goodwill [Line Items] | |
Beginning balance | 1,104,143 |
Acquisitions | 236,242 |
Dispositions | (358) |
Foreign currency translation | (5,297) |
Ending balance | 1,334,730 |
Specialty Insurance | |
Goodwill [Line Items] | |
Beginning balance | 46,765 |
Acquisitions | 0 |
Dispositions | 0 |
Foreign currency translation | 0 |
Ending balance | $ 46,765 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2020ReportingUnit | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Number of reporting units | 4 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 150,700 | $ 99,905 |
Noncompete agreements | 32,198 | 13,150 |
Trademarks | 25,312 | 10,520 |
Internal-use software licenses | 18,812 | 21,982 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 229,862 | 148,397 |
Accumulated amortization | (62,786) | (73,449) |
Finite-lived intangible assets, net | 167,076 | 74,948 |
Licenses | 16,885 | 16,885 |
Other intangibles assets, net | $ 183,961 | $ 91,833 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Amortization expense | $ 6.3 | $ 8 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Remainder of 2020 | $ 28,650 |
2021 | 28,394 |
2022 | 27,285 |
2023 | 25,461 |
2024 | 20,094 |
2025 | $ 14,352 |
Reserve for Known and Incurre_3
Reserve for Known and Incurred but Not Reported Claims (Activity in Reserve for Known and Incurred but Not Reported Claims) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance at beginning of period | $ 1,063,044 | $ 1,042,679 |
Provision related to current year | 103,213 | 88,603 |
Provision related to prior years | 14,264 | 9,109 |
Total Provision | 117,477 | 97,712 |
Payments, net of recoveries, related to: Current year | 32,685 | 30,446 |
Payments, net of recoveries, related to: Prior years | 75,853 | 69,546 |
Total Payments, net of recoveries | 108,538 | 99,992 |
Other | (14,445) | (6,765) |
Balance at end of period | $ 1,057,538 | $ 1,033,634 |
Reserve for Known and Incurre_4
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Provision for title loss, percentage of title premiums and escrow fees | 5.00% | 4.00% | |
Ultimate loss rate | 4.50% | 4.00% | 4.00% |
Estimated increase in loss reserve for prior policy years | $ 5,500,000 | $ 0 | |
Decrease in Company’s incurred title claims | 6.20% |
Reserve for Known and Incurre_5
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||||
Known title claims, amount | $ 73,829 | $ 83,382 | ||
Incurred but not reported claims, amount | 915,192 | 903,994 | ||
Total title claims, amount | 989,021 | 987,376 | ||
Non-title claims, amount | 68,517 | 75,668 | ||
Total loss reserves, amount | $ 1,057,538 | $ 1,063,044 | $ 1,033,634 | $ 1,042,679 |
Known title claims, percent | 7.00% | 7.80% | ||
Incurred but not reported claims, percent | 86.50% | 85.10% | ||
Total title claims, percent | 93.50% | 92.90% | ||
Non-title claims, percent | 6.50% | 7.10% | ||
Total loss reserves, percent | 100.00% | 100.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rates | 11.70% | 22.50% | |
Federal income tax rates | 21.00% | ||
Liability for income taxes associated with uncertain tax positions | $ 6,600 | $ 1,500 | |
Offsetting tax benefits related to uncertain tax positions | 1,800 | 400 | |
Other tax benefits related to interest and penalties of uncertain tax positions | $ 28 | $ 26 | |
Unrecognized tax positions increase decrease, months | It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 63,204 | $ 109,575 |
Basic weighted-average shares | 113,556 | 112,703 |
Effect of dilutive employee stock options and restricted stock units (“RSUs”) | 403 | 521 |
Diluted weighted-average shares | 113,959 | 113,224 |
Basic | $ 0.56 | $ 0.97 |
Diluted | $ 0.55 | $ 0.97 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the weighted-average diluted common shares outstanding | 192 | 301 |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Dilutive securities excluded from the weighted-average diluted common shares outstanding | 0 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Cost) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||
Service costs | $ 45 | $ 70 |
Interest costs | 1,781 | 2,279 |
Amortization of net actuarial loss | 1,320 | 915 |
Amortization of prior service credit | (777) | (1,018) |
Net periodic costs | $ 2,369 | $ 2,246 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - Unfunded Supplemental Benefit Plans $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution for pension obligation | $ 3.5 |
Cash contribution to plans during the remainder | $ 11.9 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | $ 5,839,530 | $ 5,913,636 |
Equity securities, estimated fair value | 377,296 | 392,318 |
Debt and Equity securities, estimated fair value | 6,216,826 | 6,305,954 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 377,296 | 392,318 |
Debt and Equity securities, estimated fair value | 377,296 | 392,318 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 5,839,530 | 5,913,636 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 5,839,530 | 5,913,636 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 0 | 0 |
U.S. Treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 122,708 | 143,941 |
U.S. Treasury bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. Treasury bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 122,708 | 143,941 |
U.S. Treasury bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,048,942 | 1,090,839 |
Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,048,942 | 1,090,839 |
Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 158,298 | 180,090 |
Foreign government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 158,298 | 180,090 |
Foreign government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 299,095 | 321,919 |
Governmental agency bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental agency bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 299,095 | 321,919 |
Governmental agency bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,348,376 | 3,278,258 |
Governmental agency mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental agency mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,348,376 | 3,278,258 |
Governmental agency mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 539,281 | 553,372 |
U.S. corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 539,281 | 553,372 |
U.S. corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 322,830 | 345,217 |
Foreign corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 322,830 | 345,217 |
Foreign corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 13,308 | 18,094 |
Preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 13,308 | 18,094 |
Preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 363,988 | 374,224 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 363,988 | 374,224 |
Common Stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Common Stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Fair value assets, Level 1 to Level 2 transfers amount | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | 0 | 0 |
Fair Value Assets Level 1 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 1 Transfers Amount | 0 | 0 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 2 Transfers Amount | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,049,985 | $ 1,485,959 |
Deposits with banks | 39,425 | 44,422 |
Notes receivable, net | 18,694 | 18,970 |
Secured financings receivable | 480,160 | 287,459 |
Liabilities: | ||
Secured financings payable | 441,657 | 278,412 |
Notes and contracts payable | 847,159 | 728,232 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,049,985 | 1,485,959 |
Deposits with banks | 39,461 | 44,339 |
Notes receivable, net | 17,212 | 19,422 |
Secured financings receivable | 480,160 | 287,459 |
Liabilities: | ||
Secured financings payable | 441,657 | 278,412 |
Notes and contracts payable | 900,755 | 761,224 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,049,985 | 1,485,959 |
Deposits with banks | 2,030 | 4,074 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 37,431 | 40,265 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 480,160 | 287,459 |
Liabilities: | ||
Secured financings payable | 441,657 | 278,412 |
Notes and contracts payable | 896,153 | 756,306 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 17,212 | 19,422 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | $ 4,602 | $ 4,918 |
Share-Based Compensation (Costs
Share-Based Compensation (Costs Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 25,903 | $ 19,597 |
RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | 24,658 | 18,348 |
Employee stock purchase plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 1,245 | $ 1,249 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - RSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
RSU, Shares | |
Unvested at December 31, 2019 | shares | 1,152 |
Granted during 2020 | shares | 717 |
Vested during 2020 | shares | (788) |
Forfeited during 2020 | shares | (3) |
Unvested at March 31, 2020 | shares | 1,078 |
RSU, Weighted-average grant-date fair value | |
Unvested at December 31, 2019 | $ / shares | $ 49.25 |
Granted during 2020 | $ / shares | 64.68 |
Vested during 2020 | $ / shares | 52.68 |
Forfeited during 2020 | $ / shares | 55.12 |
Unvested at March 31, 2020 | $ / shares | $ 56.99 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) shares in Millions, $ in Millions | 3 Months Ended | 109 Months Ended |
Mar. 31, 2020USD ($)shares | Mar. 31, 2020USD ($)shares | |
Remaining authorized amount under stock repurchase program | $ 95.8 | $ 95.8 |
Common stock repurchased, shares | shares | 1.7 | 5.3 |
Purchase of Company, value | $ 65.8 | $ 154.2 |
Maximum | ||
Stock repurchase program, authorized amount | $ 250 | $ 250 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | $ (41,492) | |
Stockholders equity attributable to noncontrolling interest, Beginning Balance | 4,518 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (41,491) | |
Change in unrealized gains (losses) on debt securities | 18,096 | |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 122 | |
Change in foreign currency translation adjustment | (34,688) | |
Amortization of net actuarial loss | 1,320 | |
Amortization of prior service credit | (777) | |
Tax effect | (4,526) | $ (18,552) |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | (61,945) | |
Stockholders equity attributable to noncontrolling interest, Ending Balance | 9,577 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (61,944) | |
Unrealized Gains (Losses) on Debt Securities Attributable to First American Financial Corporation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), debt securities, available-for-sale, adjustment, after tax, Beginning Balance | 83,117 | |
Change in unrealized gains (losses) on debt securities | 18,096 | |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 122 | |
Tax effect | (5,514) | |
Accumulated other comprehensive income (loss), debt securities, available-for-sale, adjustment, after tax, Ending Balance | 95,821 | |
Foreign Currency Translation Adjustment Attributable to First American Financial Corporation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Beginning Balance | (51,668) | |
Change in foreign currency translation adjustment | (34,688) | |
Tax effect | 1,132 | |
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Ending Balance | (85,224) | |
Pension Benefit Adjustment Attributable to First American Financial Corporation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Beginning Balance | (72,941) | |
Amortization of net actuarial loss | 1,320 | |
Amortization of prior service credit | (777) | |
Tax effect | (144) | |
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Ending Balance | (72,542) | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | (41,492) | |
Change in unrealized gains (losses) on debt securities | 18,096 | |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 122 | |
Change in foreign currency translation adjustment | (34,688) | |
Amortization of net actuarial loss | 1,320 | |
Amortization of prior service credit | (777) | |
Tax effect | (4,526) | |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | (61,945) | |
Accumulated Other Comprehensive Income (Loss) Attributable to NCI | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Stockholders equity attributable to noncontrolling interest, Beginning Balance | 1 | |
Change in unrealized gains (losses) on debt securities | 0 | |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 0 | |
Tax effect | 0 | |
Stockholders equity attributable to noncontrolling interest, Ending Balance | $ 1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Pretax change before reclassifications | $ (19,292) | $ 84,931 |
Reclassifications out of AOCI | 3,365 | (62) |
Tax effect | (4,526) | (18,552) |
Total other comprehensive (loss) income, net of tax | (20,453) | 66,317 |
Unrealized Gains (Losses) on Debt Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Pretax change before reclassifications | 15,396 | 77,765 |
Reclassifications out of AOCI | 2,822 | 41 |
Tax effect | (5,514) | (18,301) |
Total other comprehensive (loss) income, net of tax | 12,704 | 59,505 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Pretax change before reclassifications | (34,688) | 7,166 |
Reclassifications out of AOCI | 0 | 0 |
Tax effect | 1,132 | (278) |
Total other comprehensive (loss) income, net of tax | (33,556) | 6,888 |
Pension Benefit Adjustment | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Pretax change before reclassifications | 0 | 0 |
Reclassifications out of AOCI | 543 | (103) |
Tax effect | (144) | 27 |
Total other comprehensive (loss) income, net of tax | $ 399 | $ (76) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Credit losses recognized on debt securities | $ (122) | ||
Pretax total | (3,365) | $ 62 | |
Amortization of net actuarial loss | 1,320 | ||
Amortization of prior service credit | 777 | ||
Unrealized Gains (Losses) on Debt Securities | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains (losses) on sales of debt securities | 4,671 | (41) | |
Credit losses recognized on debt securities | (7,493) | 0 | |
Pretax total | (2,822) | (41) | |
Tax effect | 854 | 10 | |
Pension Benefit Adjustment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Pretax total | [1] | (543) | 103 |
Tax effect | [1] | 224 | (27) |
Amortization of net actuarial loss | [1] | (1,320) | (915) |
Amortization of prior service credit | [1] | $ 777 | $ 1,018 |
[1] | These components of AOCI are components of net periodic cost. See Note 10 Employee Benefit Plans for additional details |
Litigation and Regulatory Con_2
Litigation and Regulatory Contingencies (Narrative) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Canadian Taxing Authority | |
Loss Contingencies [Line Items] | |
Income tax authority assessment | $ 13.8 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Detail) - USD ($) $ in Thousands | Mar. 02, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Business acquisition cost | $ 391,900 | ||
Operating cash and additional borrowings under credit facility | 120,000 | ||
Goodwill | 1,381,495 | $ 1,150,908 | |
eClose and Fulfillment Technology | |||
Business Acquisition [Line Items] | |||
Business acquisition cost | $ 350,000 | ||
Goodwill | 197,900 | ||
Preliminary estimates recorded for property and equipment | 50,000 | ||
Preliminary estimates recorded for other intangible assets | $ 90,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) | 3 Months Ended |
Mar. 31, 2020State | |
Segment Reporting Information [Line Items] | |
Number of states issues title insurance policies | 49 |
Number of states licensed to issues property and casualty insurance policies | 50 |
Number of states issues property and casualty policies | 46 |
Number of states issues home warranty contracts | 36 |
California | |
Segment Reporting Information [Line Items] | |
Policy liability percentage | 59.00% |
Segment Information (Schedule o
Segment Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,412,943 | $ 1,303,581 |
Income (loss) before income taxes | 72,324 | 141,670 |
Depreciation and amortization | 31,449 | 32,934 |
Capital expenditures | 31,224 | 27,976 |
Direct premiums and escrow fees | 620,637 | 514,202 |
Agent premiums | 599,682 | 501,537 |
Information and other | 211,512 | 172,892 |
Net investment income | 45,874 | 82,268 |
Net realized investment gains (losses) | (64,762) | 32,682 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,422,594 | 1,294,362 |
Direct premiums and escrow fees | 620,637 | 514,202 |
Agent premiums | 599,682 | 501,537 |
Information and other | 211,712 | 173,156 |
Net investment income | 62,252 | 72,785 |
Net realized investment gains (losses) | (71,689) | 32,682 |
Operating Segments | Title Insurance and Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,300,625 | 1,172,180 |
Income (loss) before income taxes | 72,976 | 142,007 |
Depreciation and amortization | 29,517 | 31,162 |
Capital expenditures | 28,423 | 25,479 |
Direct premiums and escrow fees | 501,301 | 402,756 |
Agent premiums | 599,682 | 501,537 |
Information and other | 208,273 | 170,089 |
Net investment income | 59,668 | 70,053 |
Net realized investment gains (losses) | (68,299) | 27,745 |
Operating Segments | Specialty Insurance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 121,969 | 122,182 |
Income (loss) before income taxes | 12,857 | 17,785 |
Depreciation and amortization | 1,894 | 1,734 |
Capital expenditures | 2,801 | 2,497 |
Direct premiums and escrow fees | 119,336 | 111,446 |
Agent premiums | 0 | 0 |
Information and other | 3,439 | 3,067 |
Net investment income | 2,584 | 2,732 |
Net realized investment gains (losses) | (3,390) | 4,937 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenues | (9,311) | 9,559 |
Income (loss) before income taxes | (13,509) | (18,122) |
Depreciation and amortization | 38 | 38 |
Capital expenditures | 0 | 0 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (340) | (340) |
Income (loss) before income taxes | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Capital expenditures | $ 0 | $ 0 |
Coronavirus Pandemic (Narrative
Coronavirus Pandemic (Narrative) (Detail) - COVID-19 Pandemic - Subsequent Event | 1 Months Ended |
Apr. 21, 2020 | |
Unusual Risk Or Uncertainty [Line Items] | |
Coronavirus pandemic description | For the first three weeks in April 2020, open purchase orders are down 43.4% compared to the same three weeks of 2019. In addition, revenue from the Company’s commercial business, for the first three weeks in April 2020, has declined 44.1% compared to the same three weeks of 2019. |
Open purchase order percentage are down compared to 2019 | 43.40% |
Revenue percentage are declined compared to 2019 | 44.10% |