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Segment Information
 9 Months Ended
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