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Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information

Note 18 – 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; provides warehouse lending services; subservices mortgage loans; and provides 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 including 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 Company is continuing its wind-down of the property and casualty insurance business through the transfer and non-renewal of policies and expects the transfers to be completed by the end of the third quarter of 2022.

 

•

The Company’s corporate segment, which was expanded in 2021 to include its investments in venture-stage companies, also includes certain financing facilities and corporate services that support the Company’s business operations.  In connection with the expansion, the Company reclassified $44 million and $86 million in net investment gains during the three and six months ended June 30, 2021, respectively, previously reported in the title insurance and services segment to the corporate segment. 

Selected financial information about the Company’s operations, by segment, is as follows:

For the three months ended June 30, 2022:

(in millions)

 

Revenues

 

 

Income (loss)

before

income taxes

 

 

Depreciation

and

amortization

 

 

Capital

expenditures

 

Title Insurance and Services

 

$

2,053

 

 

$

240

 

 

$

41

 

 

$

74

 

Specialty Insurance

 

 

104

 

 

 

4

 

 

 

1

 

 

 

—

 

Corporate

 

 

(95

)

 

 

(103

)

 

 

—

 

 

 

—

 

 

 

$

2,062

 

 

$

141

 

 

$

42

 

 

$

74

 

 

(in millions)

 

Direct

premiums

and escrow

fees

 

 

Agent

premiums

 

 

Information

and other

 

 

Net

investment

income

 

 

Net

investment

gains (losses)

 

 

Total

Revenues

 

Title Insurance and Services

 

$

793

 

 

$

937

 

 

$

305

 

 

$

70

 

 

$

(52

)

 

$

2,053

 

Specialty Insurance

 

 

104

 

 

 

—

 

 

 

3

 

 

 

1

 

 

 

(4

)

 

 

104

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18

)

 

 

(77

)

 

 

(95

)

 

 

$

897

 

 

$

937

 

 

$

308

 

 

$

53

 

 

$

(133

)

 

$

2,062

 

 

For the three months ended June 30, 2021:

(in millions)

 

Revenues

 

 

Income (loss)

before

income taxes

 

 

Depreciation

and

amortization

 

 

Capital

expenditures

 

Title Insurance and Services

 

$

2,064

 

 

$

358

 

 

$

40

 

 

$

37

 

Specialty Insurance

 

 

152

 

 

 

20

 

 

 

1

 

 

 

1

 

Corporate

 

 

51

 

 

 

21

 

 

 

—

 

 

 

—

 

Eliminations

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

2,266

 

 

$

399

 

 

$

41

 

 

$

38

 

 

(in millions)

 

Direct

premiums

and escrow

fees

 

 

Agent

premiums

 

 

Information

and other

 

 

Net

investment

income

 

 

Net

investment

gains (losses)

 

 

Total

Revenues

 

Title Insurance and Services

 

$

787

 

 

$

905

 

 

$

299

 

 

$

47

 

 

$

26

 

 

$

2,064

 

Specialty Insurance

 

 

130

 

 

 

—

 

 

 

4

 

 

 

2

 

 

 

16

 

 

 

152

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7

 

 

 

44

 

 

 

51

 

 

 

$

917

 

 

$

905

 

 

$

303

 

 

$

56

 

 

$

86

 

 

$

2,267

 

 

For the six months ended June 30, 2022:

(in millions)

 

Revenues

 

 

Income (loss)

before

income taxes

 

 

Depreciation

and

amortization

 

 

Capital

expenditures

 

Title Insurance and Services

 

$

4,051

 

 

$

461

 

 

$

81

 

 

$

123

 

Specialty Insurance

 

 

219

 

 

 

16

 

 

 

2

 

 

 

1

 

Corporate

 

 

(174

)

 

 

(206

)

 

 

—

 

 

 

—

 

 

 

$

4,096

 

 

$

271

 

 

$

83

 

 

$

124

 

 

(in millions)

 

Direct

premiums

and escrow

fees

 

 

Agent

premiums

 

 

Information

and other

 

 

Net

investment

income

 

 

Net

investment

gains (losses)

 

 

Total

Revenues

 

Title Insurance and Services

 

$

1,459

 

 

$

1,885

 

 

$

607

 

 

$

122

 

 

$

(22

)

 

$

4,051

 

Specialty Insurance

 

 

212

 

 

 

—

 

 

 

10

 

 

 

3

 

 

 

(6

)

 

 

219

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(26

)

 

 

(148

)

 

 

(174

)

 

 

$

1,671

 

 

$

1,885

 

 

$

617

 

 

$

99

 

 

$

(176

)

 

$

4,096

 

 

For the six months ended June 30, 2021:

 

(in millions)

 

Revenues

 

 

Income (loss)

before

income taxes

 

 

Depreciation

and

amortization

 

 

Capital

expenditures

 

Title Insurance and Services

 

$

3,908

 

 

$

638

 

 

$

76

 

 

$

67

 

Specialty Insurance

 

 

288

 

 

 

26

 

 

 

3

 

 

 

2

 

Corporate

 

 

98

 

 

 

41

 

 

 

—

 

 

 

—

 

Eliminations

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

4,292

 

 

$

705

 

 

$

79

 

 

$

69

 

 

 

(in millions)

 

Direct

premiums

and escrow

fees

 

 

Agent

premiums

 

 

Information

and other

 

 

Net

investment

income

 

 

Net investment

gains (losses)

 

 

Total

Revenues

 

Title Insurance and Services

 

$

1,445

 

 

$

1,750

 

 

$

575

 

 

$

90

 

 

$

48

 

 

$

3,908

 

Specialty Insurance

 

 

258

 

 

 

—

 

 

 

7

 

 

 

4

 

 

 

19

 

 

 

288

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12

 

 

 

86

 

 

 

98

 

 

 

$

1,703

 

 

$

1,750

 

 

$

582

 

 

$

106

 

 

$

153

 

 

$

4,294