First American Corp to split in two …
By: Myles, January 15th, 2008
The times are certainly ” a changing,” in the title insurance industry. Check out this news …..
As reported by Inman News today — January 15, 2008 – First American Corp., the real estate title insurance leader with a 23.3% marketshare, announced that it will separate its financial and real estate information segments by spinning off its title insurance and related businesses into a separate company.
The new company, to be known as First American Financial Corp., will include First American’s residential and commercial title operations, its home warranty and homeowners insurance businesses, and its trust and banking services.
Although First American is separating its financial services and real estate information segments, the resulting companies will enter into a business arrangement “to facilitate the fulfillment of origination and default title orders to large, centralized national customers,” the company said.
Creating two separate companies allows each to implement its own growth strategy, raise capital and match management and employee incentives to the interests of shareholders, said First American Chief Executive Officer Parker Kennedy in a statement.
Bad news ….. In a separate announcement, First American said it expects to report an after-tax fourth-quarter loss of up to $50 million on revenues of $1.9 billion when it issues results for the quarter and year on Feb. 28.
The new financial services company, First American Financial, will include
* First American Title Insurance Co.,
* First Canadian Title,
* First Title plc,
* United General Title and
* Pacific Northwest Title
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January 15th, 2008 at 11:32 pm
Surely proving that there’s a true need for quality and stability in the commercial title insurance biz. I guess this is proof that having the ability to shop real estate insurance underwriters is critical.