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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Information | Note 19 – Segment Information The Company consists of the following reportable segments:
| • | The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; and provides warehouse lending services and banking, trust and wealth management services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies, the District of Columbia and certain United States territories. The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in other countries, including Canada, the United Kingdom, Australia, South Korea and various other established and emerging markets.
| • | The Company’s specialty insurance segment sells home warranty products and issues property and casualty insurance policies. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 35 states and the District of Columbia. The 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. During 2020, the Company initiated a plan to exit its property and casualty insurance business. In January 2021, the Company entered into book transfer agreements with two third-party insurers and will seek to non-renew policies that are not transferred. The Company expects the transfers to be completed by the end of the third quarter of 2022.
| • | Effective July 1, 2021, the Company expanded its corporate segment to include investing in, and management of, its developing portfolio of private venture-stage companies. The operating results for certain of the Company’s investments in private venture-stage companies were previously reported within the title insurance and services segment. This change serves to better align the Company’s segment reporting with a comparable change in internal management reporting during the current quarter. As a result of this change, the Company reclassified $85.8 million in net realized investment gains previously reported during the six months ended June 30, 2021 from the title insurance and services segment to the corporate segment. The Company did not reclassify prior year segment results as amounts were not material. The Company’s corporate segment also consists of certain financing facilities as well as 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 September 30, 2021:
(in thousands) |  | Revenues |  |  | Income (loss) before income taxes |  |  | Depreciation and amortization |  |  | Capital expenditures |
Title Insurance and Services |  | $ | 2,146,779 |  |  | $ | 352,366 |  |  | $ | 37,792 |  |  | $ | 44,570 |
Specialty Insurance |  |  | 132,226 |  |  |  | (1,887 | ) |  |  | 1,410 |  |  |  | 965 |
Corporate |  |  | 277,374 |  |  |  | 252,695 |  |  |  | 36 |  |  |  | — |
Eliminations |  |  | (451 | ) |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 2,555,928 |  |  | $ | 603,174 |  |  | $ | 39,238 |  |  | $ | 45,535 |
(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 |  | $ | 794,215 |  |  | $ | 998,534 |  |  | $ | 307,616 |  |  | $ | 49,827 |  |  | $ | (3,413 | ) |  | $ | 2,146,779 |
Specialty Insurance |  |  | 127,121 |  |  |  | — |  |  |  | 2,789 |  |  |  | 1,682 |  |  |  | 634 |  |  |  | 132,226 |
|  | $ | 921,336 |  |  | $ | 998,534 |  |  | $ | 310,405 |  |  | $ | 51,509 |  |  | $ | (2,779 | ) |  | $ | 2,279,005 |
For the three months ended September 30, 2020:
(in thousands) |  | Revenues |  |  | Income (loss) before income taxes |  |  | Depreciation and amortization |  |  | Capital expenditures |
Title Insurance and Services |  | $ | 1,771,993 |  |  | $ | 337,480 |  |  | $ | 36,194 |  |  | $ | 33,034 |
Specialty Insurance |  |  | 136,332 |  |  |  | (72,129 | ) |  |  | 1,995 |  |  |  | 2,114 |
Corporate |  |  | 6,055 |  |  |  | (21,980 | ) |  |  | 38 |  |  |  | — |
Eliminations |  |  | (659 | ) |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 1,913,721 |  |  | $ | 243,371 |  |  | $ | 38,227 |  |  | $ | 35,148 |
(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 |  | $ | 680,910 |  |  | $ | 722,434 |  |  | $ | 282,671 |  |  | $ | 44,726 |  |  | $ | 41,252 |  |  | $ | 1,771,993 |
Specialty Insurance |  |  | 127,037 |  |  |  | — |  |  |  | 3,450 |  |  |  | 2,105 |  |  |  | 3,740 |  |  |  | 136,332 |
|  | $ | 807,947 |  |  | $ | 722,434 |  |  | $ | 286,121 |  |  | $ | 46,831 |  |  | $ | 44,992 |  |  | $ | 1,908,325 |
For the nine months ended September 30, 2021:
(in thousands) |  | Revenues |  |  | Income (loss) before income taxes |  |  | Depreciation and amortization |  |  | Capital expenditures |
Title Insurance and Services |  | $ | 6,054,309 |  |  | $ | 990,585 |  |  | $ | 113,976 |  |  | $ | 111,638 |
Specialty Insurance |  |  | 420,335 |  |  |  | 24,106 |  |  |  | 4,392 |  |  |  | 2,484 |
Corporate |  |  | 375,185 |  |  |  | 293,921 |  |  |  | 107 |  |  |  | — |
Eliminations |  |  | (1,781 | ) |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 6,848,048 |  |  | $ | 1,308,612 |  |  | $ | 118,475 |  |  | $ | 114,122 |
(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 |  | $ | 2,238,956 |  |  | $ | 2,748,723 |  |  | $ | 881,262 |  |  | $ | 139,963 |  |  | $ | 45,405 |  |  | $ | 6,054,309 |
Specialty Insurance |  |  | 385,506 |  |  |  | — |  |  |  | 9,994 |  |  |  | 5,432 |  |  |  | 19,403 |  |  |  | 420,335 |
|  | $ | 2,624,462 |  |  | $ | 2,748,723 |  |  | $ | 891,256 |  |  | $ | 145,395 |  |  | $ | 64,808 |  |  | $ | 6,474,644 |
For the nine months ended September 30, 2020:
(in thousands) |  | Revenues |  |  | Income (loss) before income taxes |  |  | Depreciation and amortization |  |  | Capital expenditures |
Title Insurance and Services |  | $ | 4,535,558 |  |  | $ | 648,261 |  |  | $ | 104,705 |  |  | $ | 86,456 |
Specialty Insurance |  |  | 391,818 |  |  |  | (51,954 | ) |  |  | 5,832 |  |  |  | 8,015 |
Corporate |  |  | 9,260 |  |  |  | (55,317 | ) |  |  | 115 |  |  |  | — |
Eliminations |  |  | (1,243 | ) |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 4,935,393 |  |  | $ | 540,990 |  |  | $ | 110,652 |  |  | $ | 94,471 |
(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 |  | $ | 1,712,946 |  |  | $ | 1,920,011 |  |  | $ | 719,196 |  |  | $ | 147,628 |  |  | $ | 35,777 |  |  | $ | 4,535,558 |
Specialty Insurance |  |  | 367,622 |  |  |  | — |  |  |  | 9,992 |  |  |  | 7,005 |  |  |  | 7,199 |  |  |  | 391,818 |
|  | $ | 2,080,568 |  |  | $ | 1,920,011 |  |  | $ | 729,188 |  |  | $ | 154,633 |  |  | $ | 42,976 |  |  | $ | 4,927,376 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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