Fidelity Reports Q2 Earnings
July 22, 2010
Fidelity National Title Group reported pre-tax earnings of $122.1 million with a pre-tax margin of 9.6 percent during the first quarter of 2010, the company reported July 22.
This compared to earnings of $133.3 million and pre-tax margin of 9.2 percent during the same period a year ago.
Results held steady for Fidelity despite a 31 percent decline in closed orders compared to the second quarter of 2009. Overall, Fidelity opened 551,100 orders during the second quarter of 2010, compared to 745,800 opened orders during second-quarter 2009. The company closed 361,900 orders during the latest quarter, versus 524,100 closed orders during the same period last year.
Resale transactions were 54 percent of closed orders during the second quarter versus 34 percent in last year's second quarter. The shift in business resulted in a 28 percent increase in the fee per file versus the second quarter of 2009.
“During June, we began to see the effect of lower mortgage rates, as open orders per day increased 6 percent sequentially over May and refinance orders represented 58 percent of open order activity during that final month of the quarter,” said Bill Foley, chairman of Fidelity National Financial. “Open orders continued to show strength in the first half of July, with open orders per day increasing more than 18 percent sequentially from June, again driven by higher refinance volumes. Lower mortgage rates and increased order activity will provide momentum as we move into the third quarter."
The company generated $897.4 million in title insurance premiums during the second quarter of 2010. Fidelity’s direct offices produced $344.6 million of the premiums, compared to $552.8 million through its agency channel.