Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 08, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | FIRST AMERICAN FINANCIAL CORPORATION | ||
Trading Symbol | FAF | ||
Entity Central Index Key | 0001472787 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 5,358,609,470 | ||
Entity Common Stock, Shares Outstanding | 103,133,334 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common stock, $0.00001 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-34580 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1911571 | ||
Entity Address, Address Line One | 1 First American Way | ||
Entity Address, City or Town | Santa Ana | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92707-5913 | ||
City Area Code | (714) | ||
Local Phone Number | 250-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement with respect to the 2023 annual meeting of the stockholders are incorporated by reference in Part III of this report. The definitive proxy statement or an amendment to this Form 10-K will be filed no later than 120 days after the close of registrant’s fiscal year. | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Los Angeles, California | ||
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 1,224 | $ 1,228 |
Accounts and accrued income receivable, less allowances of $21 and $14 | 367 | 441 |
Income taxes receivable | 22 | 11 |
Investments: | ||
Deposits with banks | 63 | 58 |
Debt securities (amortized cost of $9,170 and $9,317; pledged of $86 and $91) | 8,170 | 9,362 |
Equity securities | 754 | 1,176 |
Investments, Total | 8,987 | 10,596 |
Secured financings receivable | 423 | 565 |
Property and equipment, net | 637 | 506 |
Operating lease assets | 248 | 249 |
Title plants and other indexes | 640 | 587 |
Deferred income taxes | 54 | 14 |
Goodwill | 1,798 | 1,588 |
Other intangible assets, net | 194 | 218 |
Other assets | 361 | 448 |
Total assets | 14,955 | 16,451 |
LIABILITIES AND EQUITY | ||
Deposits | 5,520 | 5,069 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 51 | 87 |
Personnel costs | 299 | 376 |
Pension costs and other retirement plans | 381 | 494 |
Other | 184 | 305 |
Accounts payable and accrued liabilities | 915 | 1,262 |
Deferred revenue | 197 | 224 |
Reserve for known and incurred but not reported claims | 1,325 | 1,284 |
Income taxes payable | 10 | 24 |
Deferred income taxes | 19 | 345 |
Operating lease liabilities | 269 | 274 |
Secured financings payable | 366 | 538 |
Notes and contracts payable | 1,646 | 1,648 |
Total liabilities | 10,267 | 10,668 |
Commitments and contingencies (Note 21) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—0.5 shares; Outstanding—none | 0 | 0 |
Common stock, $0.00001 par value; Authorized - 300.0 shares; Outstanding - 103.2 shares and 109.7 shares | 0 | 0 |
Additional paid-in capital | 1,812 | 2,179 |
Retained earnings | 3,721 | 3,680 |
Accumulated other comprehensive loss | (868) | (92) |
Total stockholders’ equity | 4,665 | 5,767 |
Noncontrolling interests | 23 | 16 |
Total equity | 4,688 | 5,783 |
Total liabilities and equity | $ 14,955 | $ 16,451 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts and accrued income receivable, allowances | $ 21 | $ 14 |
Pledged securities included in debt securities | 86 | 91 |
Debt securities, amortized cost | $ 9,170 | $ 9,317 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 0.5 | 0.5 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300 | 300 |
Common stock, shares outstanding | 103.2 | 109.7 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues: | ||||
Direct premiums and escrow fees | $ 3,085 | $ 3,598 | $ 2,988 | |
Agent premiums | 3,548 | 3,757 | 2,759 | |
Information and other | 1,148 | 1,215 | 1,013 | |
Net investment income | 340 | 215 | 221 | |
Net investment (losses) gains (realized of $(85), $20, $15) | (516) | 436 | 105 | |
Total revenues | 7,605 | 9,221 | 7,086 | |
Expenses: | ||||
Personnel costs | 2,340 | 2,350 | 1,941 | |
Premiums retained by agents | 2,830 | 2,987 | 2,184 | |
Other operating expenses | 1,272 | 1,323 | 1,119 | |
Provision for policy losses and other claims | 486 | 589 | 580 | |
Depreciation and amortization | 167 | 158 | 149 | |
Impairment losses on exit of business | 0 | 0 | 55 | |
Premium taxes | 91 | 100 | 78 | |
Interest | 93 | 72 | 57 | |
Total expenses | 7,279 | 7,579 | 6,163 | |
Income before income taxes | 326 | 1,642 | 923 | |
Income taxes | 61 | 393 | 223 | |
Net income | 265 | 1,249 | 700 | |
Less: Net income attributable to noncontrolling interests | 2 | 8 | 4 | |
Net income attributable to the Company | $ 263 | $ 1,241 | $ 696 | |
Net income per share attributable to the Company’s stockholders: | ||||
Basic | [1] | $ 2.46 | $ 11.18 | $ 6.18 |
Diluted | [1] | 2.45 | 11.14 | 6.16 |
Cash dividends per share | $ 2.06 | $ 1.94 | $ 1.78 | |
Weighted-average common shares outstanding: | ||||
Basic | 107 | 111 | 112.7 | |
Diluted | 107.3 | 111.4 | 113 | |
[1] Net income per share may not recalculate due to rounding. |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Realized (losses) gains of net investment | $ (85) | $ 20 | $ 15 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 265 | $ 1,249 | $ 700 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (losses) gains on securities | (781) | (143) | 88 |
Foreign currency translation adjustment | (42) | (1) | 14 |
Pension benefit adjustment | 47 | 12 | (21) |
Total other comprehensive (loss) income, net of tax | (776) | (132) | 81 |
Comprehensive (loss) income | (511) | 1,117 | 781 |
Less: Comprehensive income attributable to noncontrolling interests | 2 | 8 | 4 |
Comprehensive (loss) income attributable to the Company | $ (513) | $ 1,109 | $ 777 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Total stockholders' equity | Noncontrolling Interests |
Balance at Dec. 31, 2019 | $ 4,425 | $ 0 | $ 2,300 | $ 2,161 | $ (41) | $ 4,420 | $ 5 |
Balance, Shares at Dec. 31, 2019 | 112.5 | ||||||
Net income | 700 | $ 0 | 0 | 696 | 0 | 696 | 4 |
Dividends on common shares | (199) | 0 | 0 | (199) | 0 | (199) | 0 |
Repurchases of Company shares | (139) | $ 0 | (139) | 0 | 0 | (139) | 0 |
Repurchases of Company shares, shares | (3.2) | ||||||
Shares issued in connection with share-based compensation | (1) | $ 0 | 2 | (3) | 0 | (1) | 0 |
Shares issued in connection with share-based compensation, shares | 1.1 | ||||||
Share-based compensation | 52 | $ 0 | 52 | 0 | 0 | 52 | 0 |
Net activity related to noncontrolling interests | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
Other comprehensive income (loss) | 81 | 0 | 0 | 0 | 81 | 81 | 0 |
Balance at Dec. 31, 2020 | 4,922 | $ 0 | 2,215 | 2,655 | 40 | 4,910 | 12 |
Balance, Shares at Dec. 31, 2020 | 110.4 | ||||||
Net income | 1,249 | $ 0 | 0 | 1,241 | 0 | 1,241 | 8 |
Dividends on common shares | (213) | 0 | 0 | (213) | 0 | (213) | 0 |
Repurchases of Company shares | (99) | $ 0 | (99) | 0 | 0 | (99) | 0 |
Repurchases of Company shares, shares | (1.7) | ||||||
Shares issued in connection with share-based compensation | 6 | $ 0 | 9 | (3) | 0 | 6 | 0 |
Shares issued in connection with share-based compensation, shares | 1 | ||||||
Share-based compensation | 54 | $ 0 | 54 | 0 | 0 | 54 | 0 |
Net activity related to noncontrolling interests | (4) | 0 | 0 | 0 | 0 | 0 | (4) |
Other comprehensive income (loss) | (132) | 0 | 0 | 0 | (132) | (132) | 0 |
Balance at Dec. 31, 2021 | $ 5,783 | $ 0 | 2,179 | 3,680 | (92) | 5,767 | 16 |
Balance, Shares at Dec. 31, 2021 | 109.7 | 109.7 | |||||
Net income | $ 265 | $ 0 | 0 | 263 | 0 | 263 | 2 |
Dividends on common shares | (217) | 0 | 0 | (217) | 0 | (217) | |
Repurchases of Company shares | (441) | $ 0 | (441) | 0 | 0 | (441) | 0 |
Repurchases of Company shares, shares | (7.5) | ||||||
Shares issued in connection with share-based compensation | 2 | $ 0 | 7 | (5) | 0 | 2 | 0 |
Shares issued in connection with share-based compensation, shares | 1 | ||||||
Share-based compensation | 67 | $ 0 | 67 | 0 | 0 | 67 | 0 |
Net activity related to noncontrolling interests | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
Other comprehensive income (loss) | (776) | 0 | 0 | 0 | (776) | (776) | 0 |
Balance at Dec. 31, 2022 | $ 4,688 | $ 0 | $ 1,812 | $ 3,721 | $ (868) | $ 4,665 | $ 23 |
Balance, Shares at Dec. 31, 2022 | 103.2 | 103.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 265 | $ 1,249 | $ 700 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for policy losses and other claims | 486 | 589 | 580 |
Depreciation and amortization | 167 | 158 | 149 |
Impairment losses on exit of business | 0 | 0 | 55 |
Amortization of premiums and accretion of discounts on debt securities, net | 19 | 47 | 39 |
Net investment losses (gains) | 516 | (436) | (105) |
Share-based compensation | 67 | 54 | 52 |
Equity in earnings of affiliates, net | (11) | (7) | (6) |
Dividends from equity method investments | 11 | 12 | 7 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | |||
Claims paid, including assets acquired, net of recoveries | (434) | (482) | (471) |
Net change in income tax accounts | (130) | 53 | 29 |
Decrease (increase) in accounts and accrued income receivable | 83 | (48) | (53) |
(Decrease) increase in accounts payable and accrued liabilities | (266) | 115 | 130 |
(Decrease) increase in deferred revenue | (28) | (47) | 19 |
Other, net | 35 | (37) | (40) |
Cash provided by operating activities | 780 | 1,220 | 1,085 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash effect of acquisitions/dispositions | (278) | (187) | (393) |
Net (increase) decrease in deposits with banks | (8) | (15) | 1 |
Purchases of debt securities | (2,980) | (6,138) | (2,749) |
Proceeds from sales of debt securities | 1,753 | 1,071 | 759 |
Proceeds from maturities of debt securities | 1,171 | 1,864 | 1,630 |
Purchases of equity securities | (157) | (198) | (194) |
Proceeds from sales of equity securities | 241 | 172 | 103 |
Net change in other investments | (7) | (12) | (11) |
Advances under secured financing agreements | (15,658) | (25,926) | (17,584) |
Collections of secured financings receivable | 15,778 | 26,109 | 17,123 |
Capital expenditures | (260) | (161) | (114) |
Proceeds from sales of property and equipment | 7 | 18 | 14 |
Proceeds from insurance settlement | 3 | 10 | 0 |
Cash used for investing activities | (395) | (3,393) | (1,415) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | 451 | 1,792 | (60) |
Borrowings under secured financing agreements | 15,533 | 24,602 | 15,442 |
Repayments of secured financings payable | (15,695) | (24,594) | (15,205) |
Net proceeds from issuance of unsecured senior notes | 0 | 642 | 444 |
Borrowings under unsecured credit facility | 0 | 0 | 120 |
Repayments of borrowings under unsecured credit facility | 0 | 0 | (280) |
Repayments of other notes and contracts payable | (7) | (6) | (6) |
Net activity related to noncontrolling interests | (2) | (4) | (3) |
Net proceeds (payments) in connection with share-based compensation | 2 | 6 | (1) |
Repurchases of Company shares | (441) | (99) | (139) |
Payments of cash dividends | (217) | (213) | (199) |
Cash (used for) provided by financing activities | (376) | 2,126 | 113 |
Effect of exchange rate changes on cash | (13) | 0 | 6 |
Net decrease in cash and cash equivalents | (4) | (47) | (211) |
Cash and cash equivalents—Beginning of year | 1,228 | 1,275 | 1,486 |
Cash and cash equivalents—End of year | 1,224 | 1,228 | 1,275 |
SUPPLEMENTAL INFORMATION: | |||
Interest | 87 | 64 | 54 |
Premium taxes | 113 | 86 | 72 |
Income taxes, less refunds of $2 and $3 in 2022 and 2020, respectively | $ 189 | $ 339 | $ 193 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Income taxes, refunds | $ 2 | $ 3 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1. Basis of Presentation and Significant Accounting Policies: First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. 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, New Zealand, 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's property and casualty business was in the final stages of its wind-down in 2022. • The Company’s corporate segment includes its investments in venture-stage companies, certain financing facilities and corporate services that support the Company’s business operations. Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values, or non-marketable equity securities, are accounted for at cost, less impairment, and are adjusted up or down for any observable price changes. Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. Cash equivalents The Company considers cash equivalents to include all unrestricted short-term investments that have an initial maturity of 90 days or less. Accounts and accrued income receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for credit losses. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the current condition, and future expectations, of the general economy and industry as a whole. Amounts are written off in the period in which they are deemed to be uncollectible. The Company’s policy is to present accrued interest receivable on financial assets measured at amortized cost within accounts and accrued income receivable on the balance sheet. Accrued interest receivable at December 31, 2022 and 2021 totaled $ 17 million and $ 2 million, respectively. The Company has elected to not measure an allowance for credit losses for accrued interest receivable and maintains a policy that all receivables ninety days past due are written off to credit loss expense. Accounts are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Payments of interest for accounts in non-accrual status are applied under the cost recovery method. Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive income/loss. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. When the fair value of an available-for-sale debt security falls below its amortized cost, entities must determine whether the decline in fair value is due to credit-related factors or noncredit-related factors. Declines in fair value that are credit-related are recorded on the balance sheet through an allowance for credit losses with a corresponding adjustment to earnings and declines that are noncredit-related are recognized through other comprehensive income/loss. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2022, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. For debt securities in an unrealized loss position for which the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security, the Company determines whether the loss is due to credit-related factors or noncredit-related factors. For debt securities in an unrealized loss position for which the losses are primarily due to credit-related factors, the Company’s policy is to recognize the entire loss in earnings. For debt securities in an unrealized loss position for which the losses are determined to be the result of both credit-related and noncredit-related factors, the credit loss is determined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted using the effective interest rate (i.e., purchase yield) and for variable rate securities the interest rate is fixed at the rate in effect at the credit loss measurement date. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. The Company’s policy is to present accrued interest receivable on debt securities within accounts and accrued income receivable on the balance sheet. Accrued interest receivable on debt securities at December 31, 2022 and 2021 totaled $ 38 million and $ 34 million, respectively. The Company has elected to not measure an allowance for accrued interest receivable on debt securities and maintains a policy that all receivables ninety days past due are written off to credit loss expense. Debt securities are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Interest income is recognized on a cash basis for interest payments received on debt securities in non-accrual status. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2022 and 2021, the fair values of such investments totaled $ 86 million and $ 91 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. Equity securities Marketable equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and preferred stocks of corporate entities. Changes in the fair values of the Company’s equity securities are recognized in net investment gains/losses on the consolidated statements of income. Equity investments in which the Company exercises significant influence but does not control, and is not the primary beneficiary, are accounted for under the equity method of accounting. These investments are initially measured at cost and are generally adjusted by the Company’s share of equity in the income or losses of the investee. The carrying values of these investments are written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment is impaired, the Company assesses the current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity is operating. The Company has elected to measure its non-marketable equity securities in which it does not exercise significant influence over the investee and without readily determinable fair values at cost, less impairment, adjusted up or down for any observable price changes from orderly transactions for the identical or a similar investment of the same issuer. The carrying values of these investments are written down, or impaired, to fair value when a qualitative assessment indicates that the fair value is less than the carrying value. In making the determination as to whether an individual investment is impaired, the Company assesses such qualitative factors as the current and expected financial condition of each relevant entity, the market conditions in the industry in which the entity operates and the entity’s anticipated ability to generate sufficient cash flows. Notes Receivable Notes receivable are carried at cost, less allowance for credit losses. An allowance for credit losses is established on an individual note based on the Company’s estimate of the net amount expected to be collected. The allowance for credit losses is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. For the year ended December 31, 2022, the Company recorded $ 28 million in credit losses on notes receivable related to its venture investment portfolio. Notes receivable are included in other assets on the consolidated balance sheets. Secured financings receivable and payable The Company’s secured financings receivable are collateralized by mortgage loans on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. No allowance for credit losses has been recorded due to, among other factors, the Company typically identifying investors in the underlying mortgage loans prior to making advances, the short-term nature of these receivables, the majority of the underlying mortgage loans are Qualified Mortgages (QM) and due to the receivable having no history of significant prior credit losses. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 3 to 40 years and from 3 to 15 years, respectively. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Computer software developed for internal use and for use with the Company’s products is amortized over estimated useful lives ranging from 1 to 15 years using the straight-line method. Software development and implementation costs, which include certain payroll-related costs of employees directly associated with developing or implementing software and payments to third parties directly associated with developing or implementing software are capitalized during the application development or implementation stage until the software is ready for its intended use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Impairment losses on property and equipment for the years ended December 31, 2022 and 2021 were $ 1 million and $ 5 million, respectively. In connection with the Company’s decision in 2020 to exit its property and casualty insurance business, it recognized impairment losses on its capitalized software of $ 18 million for the year ended December 31, 2020. Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. In connection with its lease commitments, the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) on leases of commercial real estate and instead accounts for both components as a single lease component for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company excludes any leases with an initial term of 12 months or less from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased use of all, or a portion, of a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $ 2.6 million and $ 1.0 million for the years ended December 31, 2022 and 2020, respectively, and were immaterial for the year ended December 31, 2021. For further information on the Company’s leasing arrangements see Note 7 Leases. Title plants and other indexes Title plants are carried at cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is initially recorded at cost and is amortized using the straight-line method over a 15 year estimated useful life. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of title plants whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Business Combinations Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed and are based on their estimated fair values at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. Goodwill Impairment The Company is required to perform an annual goodwill impairment assessment for each reporting unit for which goodwill has been allocated. The reporting units that have been allocated goodwill include title insurance and home warranty. The Company’s trust and other services reporting unit has no allocated goodwill and is, therefore, not assessed for impairment. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on accounting guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50 %) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego a qualitative assessment and perform a quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of a qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform a quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and, where appropriate, market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. The Company chose to perform qualitative assessments for its title insurance and home warranty reporting units for 2022 and 2021, and performed quantitative impairment tests for 2020. The results of the Company’s qualitative assessments in 2022 and 2021 supported the conclusion that the reporting unit fair values were not more likely than not less than their carrying amounts and, therefore, a quantitative impairment test was not considered necessary. Based on the results of the quantitative tests in 2020, the Company determined that the fair values for both reporting units exceeded their carrying amounts and no additional analysis was required. As a result of the Company’s annual goodwill impairment assessments for the title insurance and home warranty reporting units, the Company did no t record any goodwill impairment losses related to either reporting unit for 2022, 2021 or 2020. Other intangible assets The Company’s finite-lived intangible assets consist of customer relationships, noncompete agreements, trademarks, internal-use software licenses and patents. These assets are amortized on a straight-line basis over their useful lives ranging from 1 to 20 years and are subject to impairment assessments when there is an indication of a triggering event or abandonment. The Company’s indefinite-lived other intangible assets consist of licenses which are not amortized but rather assessed for impairment by comparing the fair values to carrying amounts at least annually, and when an indicator of potential impairment has occurred. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Management’s impairment assessment for indefinite-lived other intangible assets include a valuation using a discounted cash flow analysis or through a market approach. If the fair value exceeds its carrying amount, the asset is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment loss is recorded equal to the excess. Reserve for known and incurred but not reported claims The Company provides for title insurance losses through a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. The process of assessing the loss provision rate and the resulting IBNR reserve involves an evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also contemplated as part of the reserve analysis. These include conditions in the real estate and mortgage markets, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. For recent policy years at early stages of development (generally the last three years), IBNR is generally estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees and by adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. The volume and timing of title insurance claims are subject to cyclical influences from both the real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often the lender must realize an actual loss, or at least be likely to realize an actual loss, for a title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that the sensitivity of claims to external conditions in the real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70 % to 80 % of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss rates exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. The Company provides for claims losses relating to its home warranty business based on the average cost per claim and historical loss experience as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience adjusted for estimated future increases in costs. Contingent litigation and regulatory liabilities Amounts related to contingent litigation and regulatory liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. The Company records legal fees in other operating expenses in the period incurred. Revenues Premiums on title policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by agents are recorded when notice of issuance is received from the agent, which is generally when cash pay |
Statutory Restrictions on Inves
Statutory Restrictions on Investments and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Restrictions On Investments And Stockholders' Equity | NOTE 2. Statutory Restrictions on Investments and Stockholders’ Equity: Investments totaling $ 102 million and $ 108 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2022 and 2021, respectively. Pursuant to insurance and other regulations under which the Company’s insurance subsidiaries operate, the amount of dividends, loans and advances available to the Company is limited, principally for the protection of policyholders. As of December 31, 2022, under such regulations, the maximum amount available to the Company from its insurance subsidiaries in 2023, without prior approval from applicable regulators, was dividends of $ 689 million and loans and advances of $ 113 million. The Company’s principal title insurance subsidiary, First American Title Insurance Company (“FATICO”), maintained total statutory capital and surplus of $ 1.5 billion and $ 1.7 billion as of December 31, 2022 and 2021, respectively. Statutory net income for the years ended December 31, 2022, 2021 and 2020 was $ 436 million, $ 654 million and $ 502 million, respectively. FATICO was in compliance with the minimum statutory capital and surplus requirements as of December 31, 2022. FATICO is domiciled in Nebraska and its statutory-based financial statements are prepared in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the state of Nebraska. The state of Nebraska has adopted certain prescribed accounting practices that differ from those found in the NAIC SAP. Specifically, the timing of amounts released from the statutory premium reserve under Nebraska’s required practice differs from NAIC SAP resulting in total statutory capital and surplus that was lower than if reported in accordance with NAIC SAP by $ 325 million and $ 293 million at December 31, 2022 and 2021, respectively. Statutory accounting principles differ in some respects from GAAP, and these differences include, but are not limited to, non-admission of certain assets (principally limitations on deferred tax assets, goodwill, capitalized furniture and equipment, investment in subsidiaries and affiliates, real estate, capitalized software, and premiums and other receivables 90 days past due), reporting of bonds at amortized cost, recognition of credit losses, the lack of recognition of operating lease assets and liabilities on the balance sheet for lease commitments in which the Company is a lessee, changes in the fair values of marketable equity securities, amortization of goodwill, deferral of premiums received as statutory premium reserve, supplemental reserve (if applicable) and exclusion of the incurred but not reported claims reserve. |
Debt Securities
Debt Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Debt Securities | NOTE 3. Debt Securities: Investments in debt securities, classified as available-for-sale, are as follows: Amortized Gross unrealized Estimated (in millions) cost gains losses fair value December 31, 2022 U.S. Treasury bonds $ 309 $ 1 $ ( 7 ) $ 303 Municipal bonds 1,671 3 ( 195 ) 1,479 Foreign government bonds 208 — ( 14 ) 194 Governmental agency bonds 248 — ( 19 ) 229 Governmental agency mortgage-backed securities 5,253 1 ( 653 ) 4,601 U.S. corporate debt securities 1,004 2 ( 85 ) 921 Foreign corporate debt securities 477 2 ( 36 ) 443 $ 9,170 $ 9 $ ( 1,009 ) $ 8,170 December 31, 2021 U.S. Treasury bonds $ 123 $ 1 $ ( 1 ) $ 123 Municipal bonds 1,607 59 ( 17 ) 1,649 Foreign government bonds 228 2 ( 3 ) 227 Governmental agency bonds 175 3 ( 1 ) 177 Governmental agency mortgage-backed securities 5,620 34 ( 47 ) 5,607 U.S. corporate debt securities 1,071 19 ( 9 ) 1,081 Foreign corporate debt securities 493 9 ( 4 ) 498 $ 9,317 $ 127 $ ( 82 ) $ 9,362 Sales of debt securities resulted in realized gains of $ 5 million, $ 29 million and $ 18 million, realized losses of $ 142 million, $ 9 million and $ 3 million, and proceeds of $ 1.8 billion, $ 1.1 billion and $ 759 million for the years ended December 31, 2022, 2021 and 2020, respectively. Investments in debt securities in an unrealized loss position, based on length of time, are as follows: Less than 12 months 12 months or longer Total (in millions) Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2022 U.S. Treasury bonds $ 108 $ ( 1 ) $ 50 $ ( 6 ) $ 158 $ ( 7 ) Municipal bonds 813 ( 56 ) 540 ( 139 ) 1,353 ( 195 ) Foreign government bonds 142 ( 6 ) 46 ( 8 ) 188 ( 14 ) Governmental agency bonds 173 ( 8 ) 56 ( 11 ) 229 ( 19 ) Governmental agency mortgage-backed 1,860 ( 141 ) 2,627 ( 512 ) 4,487 ( 653 ) U.S. corporate debt securities 528 ( 38 ) 325 ( 47 ) 853 ( 85 ) Foreign corporate debt securities 241 ( 17 ) 137 ( 19 ) 378 ( 36 ) $ 3,865 $ ( 267 ) $ 3,781 $ ( 742 ) $ 7,646 $ ( 1,009 ) December 31, 2021 U.S. Treasury bonds $ 76 $ ( 1 ) $ — $ — $ 76 $ ( 1 ) Municipal bonds 684 ( 17 ) — — 684 ( 17 ) Foreign government bonds 103 ( 1 ) 33 ( 2 ) 136 ( 3 ) Governmental agency bonds 73 ( 1 ) — — 73 ( 1 ) Governmental agency mortgage-backed 4,036 ( 47 ) — — 4,036 ( 47 ) U.S. corporate debt securities 533 ( 9 ) — — 533 ( 9 ) Foreign corporate debt securities 234 ( 4 ) — — 234 ( 4 ) $ 5,739 $ ( 80 ) $ 33 $ ( 2 ) $ 5,772 $ ( 82 ) Based on the Company’s review of its debt securities in an unrealized loss position it determined that the losses were due to non-credit factors and, therefore, it does not consider these securities to be credit impaired at December 31, 2022. As of December 31, 2022, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. In determining credit losses on its debt securities in an unrealized loss position, the Company considers certain factors that may include, among others, severity of the unrealized loss, security type, industry sector, credit rating, yield to maturity, profitability and stock performance. Investments in debt securities at December 31, 2022, by contractual maturities, are as follows: (in millions) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 143 $ 141 $ 6 $ 19 $ 309 Estimated fair value $ 143 $ 137 $ 5 $ 18 $ 303 Municipal bonds Amortized cost 21 288 758 604 1,671 Estimated fair value 21 268 669 521 1,479 Foreign government bonds Amortized cost 36 95 71 6 208 Estimated fair value 36 93 60 5 194 Governmental agency bonds Amortized cost 26 157 7 58 248 Estimated fair value 25 151 6 47 229 U.S. corporate debt securities Amortized cost 55 687 199 63 1,004 Estimated fair value 54 629 186 52 921 Foreign corporate debt securities Amortized cost 20 300 116 41 477 Estimated fair value 20 280 107 36 443 Total debt securities, excluding mortgage-backed Amortized cost $ 301 $ 1,668 $ 1,157 $ 791 $ 3,917 Estimated fair value $ 299 $ 1,558 $ 1,033 $ 679 $ 3,569 Total mortgage-backed securities Amortized cost 5,253 Estimated fair value 4,601 Total debt securities Amortized cost $ 9,170 Estimated fair value $ 8,170 Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity as borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties. The composition of the debt securities portfolio at December 31, 2022, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (dollars in millions) Estimated Percentage Estimated Percentage Estimated Percentage Estimated U.S. Treasury bonds $ 303 100.0 $ — — $ — — $ 303 Municipal bonds 1,432 96.8 47 3.2 — — 1,479 Foreign government bonds 190 98.0 2 1.0 2 1.0 194 Governmental agency bonds 229 100.0 — — — — 229 Governmental agency mortgage- 4,601 100.0 — — — — 4,601 U.S. corporate debt securities 429 46.6 362 39.3 130 14.1 921 Foreign corporate debt securities 193 43.6 211 47.6 39 8.8 443 $ 7,377 90.3 $ 622 7.6 $ 171 2.1 $ 8,170 Included in debt securities at December 31, 2022, were bank loans totaling $ 126 million, of which $ 121 million were non-investment grade; high yield corporate debt securities totaling $ 44 million, all of which were non-investment grade; and emerging market debt securities totaling $ 54 million, of which $ 6 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at December 31, 2022, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (dollars in millions) Estimated Percentage Estimated Percentage Estimated Percentage Estimated U.S. Treasury bonds $ 158 100.0 $ — — $ — — $ 158 Municipal bonds 1,315 97.2 38 2.8 — — 1,353 Foreign government bonds 184 97.9 1 0.5 3 1.6 188 Governmental agency bonds 229 100.0 — — — — 229 Governmental agency mortgage- 4,487 100.0 — — — — 4,487 U.S. corporate debt securities 411 48.2 327 38.3 115 13.5 853 Foreign corporate debt securities 169 44.7 175 46.3 34 9.0 378 $ 6,953 90.9 $ 541 7.1 $ 152 2.0 $ 7,646 Debt securities in an unrealized loss position at December 31, 2022, included bank loans totaling $ 107 million, of which $ 102 million were non-investment grade; high yield corporate debt securities totaling $ 44 million, all of which were non-investment grade; and emerging market debt securities totaling $ 53 million, of which $ 6 million were non-investment grade. The credit ratings in the above tables reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies, the lowest rating was selected. Governmental agency mortgage-backed securities are not rated by any of the ratings agencies; however, these securities have been included in the above table in the “A- or higher” rating category because the payments of principal and interest are guaranteed by the governmental agency that issued the security. |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Securities | NOTE 4. Equity Securities: Investments in equity securities, by classification, are summarized as follows: December 31, (in millions) 2022 2021 Marketable equity securities $ 280 $ 657 Non-marketable equity securities 396 441 Equity method investments 78 78 $ 754 $ 1,176 Investments in marketable equity securities are summarized as follows: (in millions) Cost Unrealized gains (losses) Estimated December 31, 2022 Common stocks $ 324 $ ( 55 ) $ 269 Preferred stocks 15 ( 4 ) 11 $ 339 $ ( 59 ) $ 280 December 31, 2021 Common stocks $ 418 $ 222 $ 640 Preferred stocks 17 — 17 $ 435 $ 222 $ 657 Net losses of $ 263 million and net gains of $ 184 million resulting from changes in the fair values of marketable equity securities were recognized for the years ended December 31, 2022 and 2021, respectively, which included net unrealized losses of $ 237 million and net unrealized gains of $ 172 million on securities still held at December 31, 2022 and 2021, respectively. Included in net losses during the year ended December 31, 2022 and net gains during the year ended December 31, 2021 were unrealized losses of $ 191 million and unrealized gains of $ 121 million, respectively, related to changes in the fair value of the Company’s investment in Offerpad Solutions Inc., a tech-enabled real estate company, which began trading publicly in September 2021. Net gains and losses resulting from changes in the fair values of marketable equity securities are recognized in net investment gains/losses on the consolidated statements of income. Investments in non-marketable equity securities are summarized as follows: (in millions) Cost Unrealized gains Carrying amount December 31, 2022 $ 307 $ 89 $ 396 December 31, 2021 $ 215 $ 226 $ 441 The Company recognized unrealized losses of $ 153 million, which included impairment charges of $ 140 million and recognized unrealized gains of $ 16 million for the year ended December 31, 2022, all related to its investments in private venture-stage companies. For the year ended December 31, 2021, the Company recognized unrealized gains of $ 210 million related to its investments in private venture-stage companies. All such unrealized losses and gains related to securities still held at December 31, 2022 and 2021. Net gains and losses on non-marketable equity securities are recognized in net investment gains/losses on the consolidated statements of income. Also, during the year ended December 31, 2022, the Company realized a gain of $ 52 million and cash proceeds of $ 63 million related to the sale of an investment in a title insurance business. |
Allowance for Credit Losses _ A
Allowance for Credit Losses – Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Credit Losses – Accounts Receivable | NOTE 5. Allowance for Credit Losses – Accounts Receivable: Activity in the allowance for credit losses on accounts receivable is summarized as follows: Year Ended December 31, (in millions) 2022 2021 Balance at beginning of period $ 14 $ 14 Provision for expected credit losses 11 4 Write-offs/recoveries ( 4 ) ( 4 ) Balance at end of period $ 21 $ 14 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 6. Property and Equipment: Property and equipment is summarized as follows: December 31, (in millions) 2022 2021 Land $ 27 $ 24 Buildings 189 185 Leasehold improvements 72 70 Furniture and equipment 230 215 Capitalized software 1,059 884 1,577 1,378 Accumulated depreciation and amortization ( 940 ) ( 872 ) $ 637 $ 506 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 7. Leases: Lease assets and liabilities are summarized as follows: December 31. (in millions) 2022 2021 Classification Assets Operating lease assets $ 248 $ 249 Operating lease assets Finance lease assets 3 2 Other assets Total lease assets $ 251 $ 251 Liabilities Operating lease liabilities $ 269 $ 274 Operating lease liabilities Finance lease liabilities 3 3 Notes and contracts payable Total lease liabilities $ 272 $ 277 The components of lease expense are summarized as follows: Year ended December 31. (in millions) 2022 2021 2020 Classification Operating lease cost $ 93 $ 86 $ 89 Other operating expenses Finance lease cost: Amortization of lease assets 2 2 2 Depreciation and amortization Variable lease cost 34 31 32 Other operating expenses Short-term lease cost 3 2 1 Other operating expenses Sublease income ( 1 ) ( 3 ) ( 3 ) Information and other Net lease cost $ 131 $ 118 $ 121 Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of December 31, 2022, are summarized as follows: (in millions) Operating Finance Total 2023 $ 86 $ 1 $ 87 2024 71 1 72 2025 55 1 56 2026 38 — 38 2027 21 — 21 Thereafter 17 — 17 Total lease payments 288 3 291 Interest ( 19 ) — ( 19 ) Present value of lease liabilities $ 269 $ 3 $ 272 Information related to lease terms and discount rates is summarized as follows: December 31, 2022 2021 Weighted-average remaining lease terms (years): Operating leases 4 4 Finance leases 2 2 Weighted-average discount rates: Operating leases 3.34 % 3.40 % Finance leases 3.23 % 3.96 % Cash flow information related to lease liabilities is summarized as follows: Year ended December 31, (in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96 $ 90 $ 93 Financing cash flows from finance leases $ 2 $ 2 $ 2 Operating lease assets obtained in exchange for new operating lease liabilities $ 66 $ 59 $ 54 Finance lease assets obtained in exchange for new finance lease liabilities $ 3 $ — $ 1 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 8. Goodwill: A summary of the changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2022 and 2021, is as follows: (in millions) Title Specialty Total Balance as of December 31, 2020 $ 1,366 $ 13 $ 1,379 Acquisitions 209 — 209 Balance as of December 31, 2021 1,575 13 1,588 Acquisitions 217 — 217 Transfers ( 28 ) 28 — Foreign currency translation ( 7 ) — ( 7 ) Balance as of December 31, 2022 $ 1,757 $ 41 $ 1,798 Accumulated impairment losses $ — $ ( 34 ) $ ( 34 ) For discussion about the Company’s acquisitions in 2022, see Note 22 Business Combinations. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 9. Other Intangible Assets: Other intangible assets are summarized as follows: December 31, (in millions) 2022 2021 Finite-lived intangible assets: Customer relationships $ 191 $ 203 Noncompete agreements 34 49 Trademarks 70 32 Internal-use software licenses 24 21 Patents 3 3 322 308 Accumulated amortization ( 145 ) ( 107 ) 177 201 Indefinite-lived intangible assets: Licenses 17 17 $ 194 $ 218 Amortization expense for finite-lived intangible assets was $ 54 million, $ 51 million and $ 43 million for the years ended December 31, 2022, 2021 and 2020, respectively. Estimated amortization expense for finite-lived intangible assets for the next five years is summarized as follows: Year (in millions) 2023 $ 46 2024 $ 33 2025 $ 26 2026 $ 26 2027 $ 11 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Banking And Thrifts [Abstract] | |
Deposits | NOTE 10. Deposits: Deposit accounts are summarized as follows: December 31, (dollars in millions) 2022 2021 Escrow deposits: Interest bearing $ 2,542 $ 2,792 Non-interest bearing 2,077 2,083 4,619 4,875 Mortgage subservicing deposits: Interest bearing 713 — Business checking and other deposits (1) 188 194 $ 5,520 $ 5,069 Weighted-average interest rate: Interest bearing deposit accounts 0.50 % 0.10 % (1) Accounts are primarily non-interest bearing. |
Reserve for Known and Incurred
Reserve for Known and Incurred But Not Reported Claims | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred But Not Reported Claims | NOTE 11. Reserve for Known and Incurred But Not Reported Claims: Activity in the reserve for known and incurred but not reported claims is summarized as follows: December 31, (in millions) 2022 2021 2020 Balance at beginning of year $ 1,284 $ 1,178 $ 1,063 Provision related to: Current year 468 570 532 Prior years 18 19 48 486 589 580 Payments, net of recoveries, related to: Current year 227 292 268 Prior years 207 190 203 434 482 471 Other ( 11 ) ( 1 ) 6 Balance at end of year $ 1,325 $ 1,284 $ 1,178 The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0 % for the years ended December 31, 2022 and 2021, and 5.0 % for the year ended December 31, 2020. The current year loss rate of 4.0 % reflects the ultimate loss rate for the current policy year and no change in the loss reserve estimates for prior policy years. The 2021 loss rate of 4.0 % reflects the ultimate loss rate for the current policy year and no change in the loss reserve estimates for prior policy years. The 2020 loss rate of 5.0% reflected an ultimate loss rate of 4.5 % for policy year 2020 and a net increase in the loss reserve estimates for prior policy years of 0.5 %, or $ 26 million. A summary of the Company’s loss reserves is as follows: December 31, (dollars in millions) 2022 2021 Known title claims $ 62 4.7 % $ 67 5.2 % IBNR title claims 1,207 91.1 % 1,143 89.0 % Total title claims 1,269 95.8 % 1,210 94.2 % Non-title claims 56 4.2 % 74 5.8 % Total loss reserves $ 1,325 100.0 % $ 1,284 100.0 % Short-Duration Insurance Contracts Home Warranty The following reflects information as of December 31, 2022 about incurred and paid claims development as well as cumulative claims frequency by claims event, and the total of incurred but not reported claims plus expected development on reported claims included with the net incurred claims amounts. The information below about incurred and paid claims development for the years ended December 31, 2013 to 2021, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses December 31, 2022 Accident Years ended December 31, Cumulative number of reported Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022 claims (in millions) 2013 $ 124 124 124 124 124 124 124 124 124 $ 124 0.7 2014 124 124 124 124 124 124 124 124 124 0.8 2015 144 144 144 144 144 144 144 144 0.9 2016 173 173 173 173 173 173 173 1.0 2017 167 167 167 167 167 167 1.0 2018 180 180 180 180 180 1.1 2019 174 174 174 174 1.1 2020 197 197 197 1.2 2021 218 218 1.2 2022 211 1.1 Total $ 1,712 * Amounts unaudited. Cumulative paid claims and allocated claim adjustment expenses Accident Years ended December 31, Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022 (in millions) 2013 $ 111 124 124 124 124 124 124 124 124 $ 124 2014 111 124 124 124 124 124 124 124 124 2015 129 144 144 144 144 144 144 144 2016 155 173 173 173 173 173 173 2017 151 167 167 167 167 167 2018 163 180 180 180 180 2019 159 174 174 174 2020 178 197 197 2021 199 218 2022 192 Total $ 1,693 All outstanding liabilities before 2013 — Liabilities for claims and claims adjustment expenses $ 19 * Amounts unaudited. A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2022, is as follows: December 31, 2022 (in millions) Liability for unpaid claims and claim adjustment — short-duration: Home warranty $ 19 Property and casualty insurance 37 56 Insurance lines other than short-duration: Title insurance 1,269 Total liability for unpaid claims and claims adjustment $ 1,325 Supplementary information about average historical claims duration for the Company’s home warranty business as of December 31, 2022, is as follows: Average annual percentage payout of incurred claims by age (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Annual payout 90.3 % 9.7 % — — — — — — — — |
Notes and Contracts Payable
Notes and Contracts Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes and Contracts Payable | NOTE 12. Notes and Contracts Payable: December 31, 2022 2021 (dollars in millions) 2.40% senior unsecured notes due August 15, 2031 , effective interest rate of 2.44 % $ 650 $ 650 4.00% senior unsecured notes due May 15, 2030 , effective interest rate of 4.05 % 450 450 4.60% senior unsecured notes due November 15, 2024 , effective interest rate of 4.60 % 300 300 4.30% senior unsecured notes due February 1, 2023 , effective interest rate of 4.35 % 250 250 Trust deed note due November 1, 2023 , collateralized by land and buildings 36 and $ 37 at December 31, 2022 and 2021, 5.26 % 4 8 Other notes and contracts payable with maturities through 2027 , weighted 3.30 % and 4.21 % at December 31, 2022 and 2021, 4 4 1,658 1,662 Unamortized discounts and debt issuance costs ( 12 ) ( 14 ) $ 1,646 $ 1,648 In April 2019, the Company entered into a senior unsecured credit agreement with JPMorgan Chase Bank, N.A. in its capacity as administrative agent and the lenders party thereto. The credit agreement, which is comprised of a $ 700 million revolving credit facility, includes an expansion option that permits the Company, subject to satisfaction of certain conditions, to increase the revolving commitments and/or add term loan tranches in an aggregate amount not to exceed $ 350 million. Unless terminated earlier, the credit agreement will terminate on April 30, 2024 . The obligations of the Company under the credit agreement are neither secured nor guaranteed. Proceeds under the credit agreement may be used for general corporate purposes. At December 31, 2022, the Company had no outstanding borrowings under the facility. A t the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) until LIBOR is discontinued, the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the credit agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies d epending upon the debt rating assigned by Moody’s Investor Service, Inc., Standard & Poor’s Rating Services and/or Fitch Ratings Inc. The minimum applicable spread for Alternate Base Rate borrowings is 0.25 % and the maximum is 1.00 %. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.25 % and the maximum is 2.00 %. The rate of interest on any term loans incurred in connection with the expansion option will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of December 31, 2022, the Company was in compliance with the financial covenants under the credit agreement. The aggregate annual maturities for notes and contracts payable for the next five years and thereafter are summarized as follows: Year Annual maturities (in millions) 2023 $ 256 2024 301 2025 1 2026 — 2027 — Thereafter 1,100 $ 1,658 On February 1, 2023, the Company repaid its $ 250 million 4.30 % senior unsecured notes, upon maturity, through available cash. |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2022 | |
Net Investment Income [Abstract] | |
Net Investment Income | NOTE 13. Net Investment Income: The components of net investment income are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Interest on: Debt securities $ 206 $ 133 $ 126 Deposits and other investments 135 47 69 Dividends on equity securities 9 11 11 Deferred compensation plan assets ( 25 ) 19 13 Equity in earnings of affiliates, net 11 7 6 Other 7 1 — Total investment income 343 218 225 Investment expenses ( 3 ) ( 3 ) ( 4 ) Net investment income $ 340 $ 215 $ 221 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14. Income Taxes: For the years ended December 31, 2022, 2021 and 2020, domestic and foreign pretax income, before noncontrolling interests, were $ 268 million and $ 58 million, $ 1.5 billion and $ 93 million, and $ 850 million and $ 73 million, respectively. Income taxes are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Current: Federal $ 132 $ 244 $ 191 State 19 37 27 Foreign 18 20 12 169 301 230 Deferred: Federal ( 80 ) 65 ( 18 ) State ( 25 ) 24 1 Foreign ( 3 ) 3 10 ( 108 ) 92 ( 7 ) $ 61 $ 393 $ 223 The Company’s actual income tax expense differs from the expense computed by applying the federal income tax rate of 21 % for the years ended December 31, 2022, 2021 and 2020. A reconciliation of these differences is as follows: Year ended December 31, 2022 2021 2020 (dollars in millions) Taxes calculated at federal rate $ 68 21.0 % $ 345 21.0 % $ 194 21.0 % State taxes, net of federal benefit ( 5 ) ( 1.5 ) 48 2.9 22 2.4 Change in liability for tax positions ( 1 ) ( 0.3 ) — — — — Foreign income taxed at different rates 2 0.6 1 0.1 5 0.6 Unremitted foreign earnings — — 1 0.1 ( 2 ) ( 0.2 ) Other items, net ( 3 ) ( 1.1 ) ( 2 ) ( 0.2 ) 4 0.3 $ 61 18.7 % $ 393 23.9 % $ 223 24.1 % The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 18.7 %, 23.9 %, and 24.1 % for the years ended December 31, 2022, 2021, and 2020, respectively. The effective income tax rates differ from the federal statutory rate as a result of state and foreign income taxes for which the Company is liable, as well as permanent differences between amounts reported for financial statement purposes and amounts reported for income tax purposes, including the recognition of excess tax benefits or tax deficiencies associated with share-based payment transactions through income tax expense. The effective income tax rate for 2022 also reflects the impact on pretax earnings from losses and impairments on equity investments and benefits from the resolution of state tax matters from prior years. The effective tax rates for 2021 and 2020 also reflect benefits related to foreign tax law changes and, for 2020, also reflects the impairment of nondeductible goodwill relating to the wind-down of the Company’s property and casualty insurance business. The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: December 31, 2022 2021 (in millions) Deferred tax assets: Deferred revenue $ 8 $ 11 Employee benefits 97 102 Bad debt reserves 12 7 Pension 13 30 Net operating loss carryforward 29 10 Foreign tax credit 5 4 Operating lease liabilities 59 58 Payroll taxes — 5 Securities 264 — Other 10 6 497 233 Valuation allowance ( 7 ) ( 8 ) 490 225 Deferred tax liabilities: Depreciable and amortizable assets 282 274 Claims and related salvage 82 89 Investments in affiliates 26 63 Securities — 65 Operating lease assets 53 52 Unremitted foreign earnings 12 13 455 556 Net deferred tax asset (liability) $ 35 $ ( 331 ) On August 16, 2022, the Inflation Reduction Act was signed into law. The Inflation Reduction Act includes various tax provisions, which are effective for tax years beginning on or after January 1, 2023. While the Company is still evaluating these tax law changes, it does not expect them to have a material impact on its consolidated financial statements. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law in 2020, allowed employers to defer payment of a portion of payroll taxes otherwise due on wages paid between the enactment date and December 31, 2020 and remit the deferred payroll taxes on December 31, 2021 and December 31, 2022. Under this provision of the CARES Act, the Company deferred $ 49 million in payroll taxes for 2020 and recorded the tax impact of $ 12 million as a deferred tax asset. As of December 31, 2022, the Company has remitted all of its deferred payroll taxes and has no remaining deferred tax asset. The vesting of RSUs represents a tax benefit that has been reflected as a reduction to income taxes payable and income tax expense for the years ended December 31, 2022, 2021 and 2020. The benefits recorded were $ 2 million, $ 2 million and $ 4 million for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022, the Company had available a $ 4 million foreign tax credit carryover, net of a valuation allowance, and expects to utilize this credit within the carryover period. At December 31, 2022, the Company had available net operating loss carryforwards for income tax purposes totaling $ 196 million, consisting of federal, state and foreign losses of $ 85 million, $ 86 million and $ 25 million, respectively. Of the aggregate net operating losses, $ 107 million has an indefinite expiration. The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and makes adjustments to the allowance as necessary. The factors used by the Company in assessing the likelihood of realization of its deferred tax assets include forecasts of future taxable income and available tax planning strategies that could be implemented. The Company’s ability to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of its deferred tax assets. At December 31, 2022 and 2021, the Company carried a valuation allowance of $ 7 million and $ 8 million, respectively, of which $ 6 million and $ 7 million, respectively, related to net operating losses and the remaining $ 1 million related to other deferred tax assets. The decrease in the overall valuation allowance during 2022 was primarily due to the reversal of the allowance previously provided against certain foreign net operating losses and other deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months. As of December 31, 2022, 2021 and 2020, the liability for income taxes associated with uncertain tax positions was $ 3 million, $ 8 million and $ 7 million, respectively. The net decrease in the liability in 2022 from 2021 was primarily attributable to the resolution of state tax matters from prior years and the net increase in the liability in 2021 from 2020 was primarily attributable to positions taken on the Company’s tax returns for prior years. The liabilities could be reduced by $ 2 million, $ 3 million and $ 2 million as of December 31, 2022, 2021 and 2020, respectively, due to offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net liability, if recognized, would favorably affect the Company’s effective income tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows: Year ended December 31, 2022 2021 2020 (in millions) Unrecognized tax benefits—beginning balance $ 8 $ 7 $ 1 Gross increases (decreases)—prior period tax — — 5 Gross increases—current period tax positions 1 1 1 Settlements with taxing authorities ( 6 ) — — Unrecognized tax benefits—ending balance $ 3 $ 8 $ 7 The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties, net of tax benefits, related to uncertain tax positions were no t material as of December 31, 2022, 2021 and 2020. The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. As of December 31, 2022, the Company is, generally, no longer subject to U.S. federal and state income tax examinations for years prior to 2019, and, for non-U.S. jurisdictions, income tax examinations for years prior to 2014. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. The Company records a liability for potential tax assessments based on its estimate of the potential exposure. New tax laws and new interpretations of laws and rulings by taxing authorities may affect the liability for potential tax assessments. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. To the extent that the Company’s estimates differ from actual payments or assessments, income tax expense is adjusted. The Company’s income tax returns in several jurisdictions are being examined by various taxing authorities. The Company believes that adequate amounts of tax and related interest from any adjustments that may result from these examinations have been provided for. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 15. Earnings Per Share: The computation of basic and diluted earnings per share is as follows: Year ended December 31, 2022 2021 2020 (in millions, except per share data) Numerator Net income attributable to the Company $ 263 $ 1,241 $ 696 Denominator Basic weighted-average common shares 107.0 111.0 112.7 Effect of dilutive RSUs 0.3 0.4 0.3 Diluted weighted-average common shares 107.3 111.4 113.0 Net income per share attributable to the Company’s Basic $ 2.46 $ 11.18 $ 6.18 Diluted $ 2.45 $ 11.14 $ 6.16 (1) Net income per share may not recalculate due to rounding. For the years ended December 31, 2022 and 2020, 19 thousand and 203 thousand RSUs were excluded from the weighted-average diluted common shares outstanding due to their antidilutive effect. For the year ended December 31, 2021, RSUs excluded from diluted weighted-average common shares outstanding due to their antidilutive effect were not material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 16. Employee Benefit Plans: The First American Financial Corporation 401(k) Savings Plan (the “Savings Plan”) allows for employee-elective contributions up to the maximum amount as determined by the Internal Revenue Code. The Company makes discretionary contributions to the Savings Plan based on profitability, as well as the contributions of participants. The Savings Plan held 1.6 million shares and 1.7 million shares of the Company’s common stock, representing 1.5 % and 1.6 % of the Company’s total common shares outstanding at December 31, 2022 and 2021, respectively. Effective July 1, 2015, additional investments in common stock of the Company are no longer allowed. The Company maintains a deferred compensation plan for certain employees that allows participants to defer up to 100 % of their salary, commissions and certain bonuses. Participants can allocate their deferrals among a variety of investment crediting options (known as “deemed investments”). The term deemed investments means that the participant has no ownership interest in the funds they select; the funds are only used to measure the gains or losses that will be attributed to each participant’s deferral account over time. Participants can elect to have their deferral balance paid out while they are still employed or after their employment ends. The deferred compensation plan is exempt from most provisions of the Employee Retirement Income Security Act because it is only available to a select group of management and highly compensated employees and is not a qualified employee benefit plan. To preserve the tax-deferred savings advantages of a nonqualified deferred compensation plan, federal law requires that it be unfunded or informally funded. Participant deferrals, and any earnings on those deferrals, are general unsecured obligations of the Company. The Company informally funds the deferred compensation plan through a tax-advantaged investment known as variable universal life insurance. Deferred compensation plan assets are held as an asset of the Company within a special trust, known as a “Rabbi Trust.” At December 31, 2022 and 2021, the value of the assets held in the Rabbi Trust of $ 110 million and $ 134 million, respectively, and the unfunded liabilities of $ 136 million and $ 153 million, respectively, were included in the consolidated balance sheets in other assets and pension costs and other retirement plans, respectively. The Company also has nonqualified, unfunded supplemental benefit plans covering certain management personnel, which are comprised primarily of the Executive and Management Supplemental Benefit Plans and the smaller Pension Restoration Plan (collectively, the “unfunded supplemental benefit plans”). The Executive and Management Supplemental Benefit Plans, subject to certain limitations, provide participants with maximum annual benefits of 30 % and 15 %, respectively, of average annual compensation over a fixed five-year period. Effective January 1, 2011, the plans were closed to new participants. Certain of the Company’s subsidiaries have separate savings and employee benefit plans. Expenses related to these plans and the Company’s deferred compensation plan are included below under other plans, net. The principal components of employee benefit costs are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Expense: Savings plan $ 37 $ 74 $ 32 Unfunded supplemental benefit plans 12 11 9 Other plans, net (1) ( 14 ) 24 19 $ 35 $ 109 $ 60 (1) For the year ended December 31, 2022, participant investments included in the deferred compensation plan realized losses in excess of expenses recorded by the Company. The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2022 2021 (in millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 262 $ 283 Interest costs 6 5 Actuarial gains ( 57 ) ( 11 ) Benefits paid ( 15 ) ( 15 ) Projected benefit obligation at end of year 196 262 Change in plan assets: Contributions 15 14 Benefits paid ( 15 ) ( 14 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 196 $ 262 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 196 $ 262 Amounts recognized in accumulated other Unrecognized net actuarial loss $ 48 $ 111 $ 48 $ 111 Accumulated benefit obligation at end of year $ 196 $ 262 Net periodic benefit costs related to the Company’s unfunded supplemental benefit pension plans are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Expense: Interest costs $ 6 $ 5 $ 7 Amortization of net actuarial loss 6 7 5 Amortization of prior service credit — ( 1 ) ( 3 ) $ 12 $ 11 $ 9 Net actuarial loss for the unfunded supplemental benefit plans expected to be amortized from accumulated other comprehensive income/loss into net periodic benefit cost during 2023 is $ 2 million. The weighted-average discount rate assumptions used to determine net periodic benefit costs for the Executive and Management Supplemental Benefit Plans for the years ended December 31, 2022, 2021 and 2020, are as follows: Year ended December 31, 2022 2021 2020 Discount rates: Projected benefit obligation 2.89 % 2.49 % 3.27 % Service cost 3.29 % 3.14 % 3.71 % Interest cost 2.37 % 1.83 % 2.86 % The weighted-average discount rate assumptions used to determine the projected benefit obligations for the Executive and Management Supplemental Benefit Plans at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 Discount rate 5.56 % 2.89 % The discount rate assumptions used reflect the yield available on high-quality, fixed-income debt securities that match the expected timing of the benefit obligation payments. The Company expects to make cash contributions of $ 16 million to its unfunded supplemental benefit plans during 2023. Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in millions) 2023 $ 16 2024 $ 17 2025 $ 17 2026 $ 17 2027 $ 16 Five years thereafter $ 77 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17. Fair Value Measurements: Certain of the Company’s assets and liabilities are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes its assets and liabilities carried at fair value using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and the Company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management’s assessment of the transparency and reliability of the inputs used to estimate the fair values at the measurement date. The three hierarchy levels are defined as follows: Level 1—Valuations based on unadjusted quoted market prices in active markets for identical assets or liabilities. Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. If the inputs used to measure fair value fall into different levels of the fair value hierarchy, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement. Assets measured at fair value on a recurring basis The valuation techniques and inputs used by the Company to estimate the fair value of assets measured on a recurring basis are summarized as follows: Debt securities The fair values of debt securities were based on the market values obtained from independent pricing services that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other market information and price quotes from well-established, independent broker-dealers. The independent pricing services monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The pricing services utilize the market approach in determining the fair values of the debt securities held by the Company. The Company obtains an understanding of the valuation models and assumptions utilized by the services and has controls in place to determine that the values provided represent fair values. The Company’s validation procedures include comparing prices received from the pricing services to quotes received from other third-party sources for certain securities with market prices that are readily verifiable. If the price comparison results in differences over a predefined threshold, the Company will assess the reasonableness of the changes relative to prior periods given the prevailing market conditions and assess changes in the issuers’ credit worthiness, performance of any underlying collateral and prices of the instrument relative to similar issuances. To date, the Company has not made any material adjustments to the fair value measurements provided by the pricing services. Typical inputs and assumptions to pricing models used to value the Company’s debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes and prepayment speeds. Marketable equity securities The fair values of marketable equity securities, including preferred and common stocks, were based on quoted market prices for identical assets that are readily and regularly available in an active market. The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of December 31, 2022 and 2021: (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Debt securities: U.S. Treasury bonds $ 303 $ — $ 303 $ — Municipal bonds 1,479 — 1,479 — Foreign government bonds 194 — 194 — Governmental agency bonds 229 — 229 — Governmental agency mortgage-backed securities 4,601 — 4,601 — U.S. corporate debt securities 921 — 921 — Foreign corporate debt securities 443 — 443 — 8,170 — 8,170 — Marketable equity securities: Common stocks 269 269 — — Preferred stocks 11 11 — — 280 280 — — Mortgage loans held for sale 16 — 14 2 Total $ 8,466 $ 280 $ 8,184 $ 2 (in millions) Total Level 1 Level 2 Level 3 December 31, 2021 Debt securities: U.S. Treasury bonds $ 123 $ — $ 123 $ — Municipal bonds 1,649 — 1,649 — Foreign government bonds 227 — 227 — Governmental agency bonds 177 — 177 — Governmental agency mortgage-backed securities 5,607 — 5,607 — U.S. corporate debt securities 1,081 — 1,081 — Foreign corporate debt securities 498 — 498 — 9,362 — 9,362 — Marketable equity securities: Common stocks 640 640 — — Preferred stocks 17 17 — — 657 657 — — Mortgage loans held for sale 12 — 11 1 Total $ 10,031 $ 657 $ 9,373 $ 1 There were no transfers between Levels 1, 2 and 3 during the years ended December 31, 2022 and 2021. Transfers into or out of the Level 3 category occur when unobservable inputs become either more, or less, significant to the fair value measurement. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. Financial instruments not measured at fair value In estimating the fair values of its financial instruments not measured at fair value, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents approximates fair value due to the short-term maturity of these investments. Deposits with banks The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. Notes receivable, net The fair value of notes receivable, net is estimated based on current market rates offered for notes with similar maturities and credit quality. Secured financings receivable The carrying amount of secured financings receivable approximates fair value due to the short-term nature of these assets. Secured financings payable The carrying amount of secured financings payable approximates fair value due to the short-term nature of these liabilities. Notes and contracts payable The fair value of notes and contracts payable is estimated based on current rates offered for debt of similar remaining maturities. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2022 and 2021: Carrying Estimated fair value (in millions) Amount Total Level 1 Level 2 Level 3 December 31, 2022 Assets: Cash and cash equivalents $ 1,224 $ 1,224 $ 1,224 $ — $ — Deposits with banks $ 63 $ 62 $ 8 $ 54 $ — Notes receivable, net $ 11 $ 11 $ — $ — $ 11 Secured financings receivable $ 423 $ 423 $ — $ 423 $ — Liabilities: Secured financings payable $ 366 $ 366 $ — $ 366 $ — Notes and contracts payable $ 1,646 $ 1,405 $ — $ 1,401 $ 4 Carrying Estimated fair value (in millions) Amount Total Level 1 Level 2 Level 3 December 31, 2021 Assets: Cash and cash equivalents $ 1,228 $ 1,228 $ 1,228 $ — $ — Deposits with banks $ 58 $ 58 $ 13 $ 45 $ — Notes receivable, net $ 32 $ 32 $ — $ — $ 32 Secured financings receivable $ 565 $ 565 $ — $ 565 $ — Liabilities: Secured financings payable $ 529 $ 529 $ — $ 529 $ — Notes and contracts payable $ 1,648 $ 1,724 $ — $ 1,720 $ 4 Assets measured at fair value on a non-recurring basis The Company measures the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. These assets generally include goodwill, title plants and other indexes, other intangible assets, property and equipment and equity-method investments. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | NOTE 18. Share-Based Compensation Plans: The First American Financial Corporation 2020 Incentive Compensation Plan (the “Incentive Compensation Plan”), effective January 22, 2020, permits the granting of stock options, stock appreciation rights, restricted stock, RSUs, PRSUs, performance shares and other stock-based awards. Eligible participants, which include the Company’s directors and officers, as well as other employees, may elect to defer the distribution of their RSUs to a future date beyond the scheduled vesting date. At December 31, 2022, 1.6 million shares of common stock remain available to be issued by the Company, subject to certain annual limits based on the type of award granted. The Company settles its equity awards with authorized but unissued shares of its common stock. The Incentive Compensation Plan terminates 10 years from its effective date unless canceled earlier by the Company’s board of directors. The First American Financial Corporation 2010 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees the option to purchase common stock of the Company at 85 % of the lower of the closing price on either the first or last day of each quarterly offering period. There were 0.6 million shares issued in connection with this plan for the year ended December 31, 2022 and 0.5 million for the years ended December 31, 2021 and 2020. In March 2022, the Company’s board of directors amended the First American Financial Corporation 2010 Employee Stock Purchase Plan (the “Amended ESPP”), effective July 1, 2022. The Amended ESPP increases the maximum number of shares of Company common stock available for sale from 5 million to 14 million. In addition, the Amended ESPP extends the term of the plan from July 1, 2023 to July 1, 2032 . At December 31, 2022, there were 9.0 million shares reserved for future issuances. The following table summarizes the costs associated with the Company’s share-based compensation plans: Year ended December 31, 2022 2021 2020 (in millions) Expense: RSUs $ 58 $ 48 $ 47 PRSUs 3 — — Employee stock purchase plan 6 6 5 $ 67 $ 54 $ 52 The following table summarizes RSU and PRSU activity for the year ended December 31, 2022: (in millions, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2021 0.9 $ 58.11 Granted during 2022 1.0 67.65 Vested during 2022 ( 1.0 ) 63.47 Unvested at December 31, 2022 0.9 $ 63.01 As of December 31, 2022, there was $ 29 million of total unrecognized compensation cost related to unvested RSUs and PRSUs that is expected to be recognized over a weighted-average period of 2.0 years. The fair values of RSUs and PRSUs is generally based on the market value of the Company’s shares on the date of grant. The weighted-average grant-date fair values of RSUs and PRSUs for the year ended December 31, 2022 was $ 67.65 and, for the years ended December 31, 2021 and 2020, the weighted-average grant-date fair values of RSUs were $ 56.65 and $ 63.14 for the years ended December 31, 2022, 2021 and 2020, respectively. The total fair values of shares distributed for the years ended December 31, 2022, 2021 and 2020 were $ 57 million, $ 49 million and $ 56 million, respectively. At December 31, 2022, 1.2 million shares were vested but not distributed. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 19. Stockholders’ Equity: In June 2022, the Company’s board of directors approved a new share repurchase plan and terminated its prior share repurchase plan. The Company’s new share repurchase plan authorizes the repurchase of up to $ 400 million of the Company's common stock, of which $ 287 million remained as of December 31, 2022. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the year ended December 31, 2022, the Company repurchased and retired, under both the Company’s prior authorization and the current authorization, 7.5 million shares of its common stock for a total purchase price of $ 441 million and, as of December 31, 2022, had cumulatively repurchased and retired 10.4 million shares of its common stock for a total purchase price of $ 598 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | NOTE 20. Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2022, 2021 and 2020: First American Financial Corporation (in millions) Unrealized Foreign Pension Accumulated Balance at December 31, 2019 $ 84 $ ( 52 ) $ ( 73 ) $ ( 41 ) Change in unrealized gains (losses) on debt securities 116 — — 116 Change in unrealized gains (losses) on debt securities for 1 — — 1 Change in foreign currency translation adjustment — 14 — 14 Net actuarial loss — — ( 31 ) ( 31 ) Amortization of net actuarial loss — — 5 5 Amortization of prior service credit — — ( 3 ) ( 3 ) Tax effect ( 29 ) — 8 ( 21 ) Balance at December 31, 2020 172 ( 38 ) ( 94 ) 40 Change in unrealized gains (losses) on debt securities ( 189 ) — — ( 189 ) Change in foreign currency translation adjustment — ( 2 ) — ( 2 ) Net actuarial gain — — 11 11 Amortization of net actuarial loss — — 7 7 Amortization of prior service credit — — ( 1 ) ( 1 ) Tax effect 46 1 ( 5 ) 42 Balance at December 31, 2021 29 ( 39 ) ( 82 ) ( 92 ) Change in unrealized gains (losses) on debt securities ( 1,045 ) — — ( 1,045 ) Change in foreign currency translation adjustment — ( 43 ) — ( 43 ) Net actuarial gain — — 57 57 Amortization of net actuarial loss — — 6 6 Tax effect 264 1 ( 16 ) 249 Balance at December 31, 2022 $ ( 752 ) $ ( 81 ) $ ( 35 ) $ ( 868 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2022, 2021 and 2020: Unrealized Foreign Pension Total (in millions) Year ended December 31, 2022 Pretax change before reclassifications $ ( 1,182 ) $ ( 43 ) $ 57 $ ( 1,168 ) Reclassifications out of AOCI 137 — 6 143 Tax effect 264 1 ( 16 ) 249 Total other comprehensive income (loss), net of tax $ ( 781 ) $ ( 42 ) $ 47 $ ( 776 ) Year ended December 31, 2021 Pretax change before reclassifications $ ( 169 ) $ ( 2 ) $ 11 $ ( 160 ) Reclassifications out of AOCI ( 20 ) — 6 ( 14 ) Tax effect 46 1 ( 5 ) 42 Total other comprehensive income (loss), net of tax $ ( 143 ) $ ( 1 ) $ 12 $ ( 132 ) Year ended December 31, 2020 Pretax change before reclassifications $ 125 $ 14 $ ( 31 ) $ 108 Reclassifications out of AOCI ( 8 ) — 2 ( 6 ) Tax effect ( 29 ) — 8 ( 21 ) Total other comprehensive income (loss), net of tax $ 88 $ 14 $ ( 21 ) $ 81 The following table presents the effects of the reclassifications out of AOCI on the respective line items in the consolidated statements of income: Year ended December 31, (in millions) 2022 2021 2020 Affected line items Unrealized gains (losses) on debt securities: Net realized (losses) gains on sales of debt $ ( 137 ) $ 20 $ 15 Net investment (losses) gains Credit losses recognized on debt securities — — ( 7 ) Net investment (losses) gains Pretax total $ ( 137 ) $ 20 $ 8 Tax effect $ 35 $ ( 5 ) $ ( 2 ) Pension benefit adjustment (1): Amortization of net actuarial loss $ ( 6 ) $ ( 7 ) $ ( 5 ) Other operating expenses Amortization of prior service credit — 1 3 Other operating expenses Pretax total $ ( 6 ) $ ( 6 ) $ ( 2 ) Tax effect $ 2 $ 2 $ 1 (1) Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | NOTE 21. Litigation and Regulatory Contingencies: The Company and its subsidiaries are parties to a number of lawsuits and are also involved in numerous ongoing routine legal and regulatory proceedings related to their operations. These lawsuits and proceedings frequently are similar in nature to other lawsuits and proceedings pending against the Company’s competitors. When the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company’s financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded. With respect to the Company’s outstanding ordinary course lawsuits and proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s ordinary course lawsuits include putative or purported class action lawsuits, which challenge practices in the Company’s title insurance and services and home warranty businesses. The Company’s title insurance, property and casualty insurance, home warranty, mortgage servicing and subservicing, banking, thrift, trust and wealth management businesses are regulated by various federal, state and local governmental agencies. Many of the Company’s other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company’s operations. Exams and investigations by governmental agencies include an investigation initiated in connection with the information security incident that occurred during the second quarter of 2019 by the New York Department of Financial Services. The New York Department of Financial Services has alleged violations of its cyber security requirements for financial services companies and filed a statement of charges on July 22, 2020, as amended on March 10, 2021, and the previously scheduled administrative hearing has been postponed and not rescheduled. While the ultimate disposition of the New York Department of Financial Services matter is not yet determinable, the Company does not believe that it or any of the other pending examinations or investigations will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Some of these exams or investigations could, however, result in changes to the Company’s business practices which could ultimately have a material adverse impact on the Company’s financial condition, results of operations or cash flows. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 22. Business Combinations: During the year ended December 31, 2022, the Company completed acquisitions for an aggregate purchase price of $ 311 million in cash. These acquisitions have been included in the Company’s title insurance and services segment. In May 2022, the Company acquired a California-based provider of title insurance, underwriting and escrow services for residential and commercial real estate transactions for a purchase price of $ 300 million in cash. In connection with the purchase, the Company recorded fair value estimates for goodwill, other intangible assets and title plants of $ 203 million, $ 34 million and $ 29 million, respectively. The Company recognized revenues of $ 110 million and pre-tax income of $ 12 million since the acquisition date, related to the acquiree, during the year ended December 31, 2022. |
Segment Financial Information
Segment Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Financial Information | NOTE 23. Segment Financial Information: Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2022, 2021 and 2020, is as follows: Revenues Depreciation Income (loss) Assets Capital (in millions) 2022 Title Insurance and Services $ 7,547 $ 162 $ 758 $ 13,911 $ 271 Specialty Insurance 437 5 27 461 4 Corporate and Eliminations ( 379 ) — ( 459 ) 583 — $ 7,605 $ 167 $ 326 $ 14,955 $ 275 2021 Title Insurance and Services $ 8,320 $ 152 $ 1,358 $ 15,058 $ 168 Specialty Insurance 541 6 36 557 4 Corporate and Eliminations 360 — 248 836 — $ 9,221 $ 158 $ 1,642 $ 16,451 $ 172 2020 Title Insurance and Services $ 6,535 $ 141 $ 1,026 $ 11,922 $ 117 Specialty Insurance 532 8 ( 25 ) 645 4 Corporate and Eliminations 19 — ( 78 ) 229 — $ 7,086 $ 149 $ 923 $ 12,796 $ 121 Direct premiums and escrow fees Agent Information Net investment income Net investment Total (in millions) 2022 Title Insurance and Services $ 2,663 $ 3,548 $ 1,127 $ 359 $ ( 150 ) $ 7,547 Specialty Insurance 422 — 22 6 ( 13 ) 437 Corporate and Eliminations — — ( 1 ) ( 25 ) ( 353 ) ( 379 ) $ 3,085 $ 3,548 $ 1,148 $ 340 $ ( 516 ) $ 7,605 2021 Title Insurance and Services $ 3,100 $ 3,757 $ 1,203 $ 188 $ 72 $ 8,320 Specialty Insurance 498 — 13 7 23 541 Corporate and Eliminations — — ( 1 ) 20 341 360 $ 3,598 $ 3,757 $ 1,215 $ 215 $ 436 $ 9,221 2020 Title Insurance and Services $ 2,490 $ 2,759 $ 1,001 $ 199 $ 86 $ 6,535 Specialty Insurance 498 — 13 9 12 532 Corporate and Eliminations — — ( 1 ) 13 7 19 $ 2,988 $ 2,759 $ 1,013 $ 221 $ 105 $ 7,086 The Company’s title insurance and services segment offers title insurance, closing services and similar or related products and services both domestically and internationally. The operations of the Company’s specialty insurance and corporate segments are entirely domestic. Domestic and foreign revenues from external customers for the title insurance and services segment are as follows: Year Ended December 31, 2022 2021 2020 Domestic Foreign Domestic Foreign Domestic Foreign (in millions) Revenues $ 7,131 $ 416 $ 7,872 $ 448 $ 6,193 $ 342 Domestic and foreign long-lived assets for the title insurance and services segment are as follows: December 31, 2022 2021 2020 Domestic Foreign Domestic Foreign Domestic Foreign (in millions) Long-lived assets $ 1,001 $ 51 $ 945 $ 51 $ 957 $ 60 |
Summary Of Investments-Other Th
Summary Of Investments-Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments-Other Than Investments in Related Parties | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) December 31, 2022 Column A Column B Column C Column D Type of investment Cost Market value Amount at which shown in the balance sheet Deposits with banks: Consolidated $ 63 $ 62 $ 63 Debt securities: U.S. Treasury bonds Consolidated $ 309 $ 303 $ 303 Municipal bonds Consolidated $ 1,671 $ 1,479 $ 1,479 Foreign government bonds Consolidated $ 208 $ 194 $ 194 Governmental agency bonds Consolidated $ 248 $ 229 $ 229 Governmental agency mortgage-backed securities Consolidated $ 5,253 $ 4,601 $ 4,601 U.S. corporate debt securities Consolidated $ 1,004 $ 921 $ 921 Foreign corporate debt securities Consolidated $ 477 $ 443 $ 443 Total debt securities: Consolidated $ 9,170 $ 8,170 $ 8,170 Equity securities: Consolidated $ 724 $ 754 (1) $ 754 Notes receivable, net: Consolidated $ 11 $ 11 $ 11 Total investments: Consolidated $ 9,968 $ 8,997 $ 8,998 (1) Included in equity securities are non-marketable equity securities and equity method investments. Estimates of fair value for these investments could not be made without incurring excessive costs. |
Condensed Financial Statements
Condensed Financial Statements (Parent Company) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | S CHEDULE II 1 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED BALANCE SHEETS (in millions, except par values) December 31, 2022 2021 Assets Cash and cash equivalents $ 597 $ 925 Due from subsidiaries, net 10 79 Income taxes receivable 22 11 Investment in subsidiaries 5,908 6,862 Equity securities 15 206 Deferred income taxes 54 14 Other assets 118 137 $ 6,724 $ 8,234 Liabilities and Equity Accounts payable and other accrued liabilities $ 36 $ 30 Pension costs and other retirement plans 333 416 Income taxes payable 10 24 Deferred income taxes 19 345 Notes and contracts payable 1,638 1,636 2,036 2,451 C ommitments and contingencies Stockholders’ equity: Preferred stock, $ 0.00001 par value; Authorized— 0.5 shares; none — — Common stock, $ 0.00001 par value; Authorized— 300.0 shares; Outstanding— 103.2 shares and 109.7 shares — — Additional paid-in capital 1,812 2,179 Retained earnings 3,721 3,680 Accumulated other comprehensive loss ( 868 ) ( 92 ) Total stockholders’ equity 4,665 5,767 Noncontrolling interests 23 16 Total equity 4,688 5,783 $ 6,724 $ 8,234 See Notes to Condensed Financial Statements SCHEDULE II 2 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF INCOME (in millions) Year Ended December 31, 2022 2021 2020 Revenues: Dividends from subsidiaries $ 733 $ 622 $ 604 Other (losses) income ( 23 ) 19 14 Net investment (losses) gains ( 192 ) 121 7 518 762 625 Expenses: Other expenses 55 84 69 Income before income taxes and equity in undistributed earnings of 463 678 556 Income taxes 86 162 134 Equity in undistributed (losses) earnings of subsidiaries ( 112 ) 733 278 Net income 265 1,249 700 Less: Net income attributable to noncontrolling interests 2 8 4 Net income attributable to the Company $ 263 $ 1,241 $ 696 See Notes to Condensed Financial Statements SCHEDULE II 3 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended December 31, 2022 2021 2020 Net income $ 265 $ 1,249 $ 700 Other comprehensive income (loss), net of tax: Unrealized (losses) gains on securities ( 781 ) ( 143 ) 88 Foreign currency translation adjustment ( 42 ) ( 1 ) 14 Pension benefit adjustment 47 12 ( 21 ) Total other comprehensive (loss) income, net of tax ( 776 ) ( 132 ) 81 Comprehensive (loss) income ( 511 ) 1,117 781 Less: Comprehensive income attributable to noncontrolling interests 2 8 4 Comprehensive (loss) income attributable to the Company $ ( 513 ) $ 1,109 $ 777 See Notes to Condensed Financial Statements SCHEDULE II 4 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2022 2021 2020 Cash flows from operating activities: Cash provided by operating activities $ 779 $ 641 $ 600 Cash flows from investing activities: Net cash effect of acquisitions ( 296 ) — — Net payments to subsidiaries ( 155 ) ( 259 ) ( 668 ) Purchases of equity securities — — ( 19 ) Proceeds from sales of property and equipment — — 7 Cash used for investing activities ( 451 ) ( 259 ) ( 680 ) Cash flows from financing activities: Net proceeds from issuance of unsecured senior notes — 642 444 Borrowings under unsecured credit facility — — 120 Repayments of borrowings under unsecured credit facility — — ( 280 ) Net proceeds (payments) in connection with share-based 2 6 ( 1 ) Repurchases of Company shares ( 441 ) ( 99 ) ( 139 ) Payments of cash dividends ( 217 ) ( 213 ) ( 199 ) Cash (used for) provided by financing activities ( 656 ) 336 ( 55 ) Net (decrease) increase in cash and cash equivalents ( 328 ) 718 ( 135 ) Cash and cash equivalents—Beginning of period 925 207 342 Cash and cash equivalents—End of period $ 597 $ 925 $ 207 See Notes to Condensed Financial Statements SCHEDULE II 5 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) NOTES TO CONDENSED FINANCIAL STATEMENTS NOTE 1. Description of the Company: First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company financial statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. NOTE 2. Dividends Received: The holding company received cash dividends from subsidiaries of $ 731 million, $ 624 million and $ 574 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUPPLEMENTARY INSURANCE INFORMATION (in millions) BALANCE SHEET CAPTIONS Column A Column B Column C Column D Segment Deferred policy Claims Deferred 2022 Title Insurance and Services $ — $ 1,269 $ 7 Specialty Insurance 20 56 190 Total $ 20 $ 1,325 $ 197 2021 Title Insurance and Services $ — $ 1,210 $ 6 Specialty Insurance 24 74 218 Total $ 24 $ 1,284 $ 224 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUPPLEMENTARY INSURANCE INFORMATION (in millions) INCOME STATEMENT CAPTIONS Column A Column F Column G Column H Column I Column J Column K Segment Premiums Net Loss Amortization Other Premiums 2022 Title Insurance and Services $ 6,211 $ 209 $ 248 $ — $ 1,155 $ — Specialty Insurance 422 ( 7 ) 238 4 82 394 Corporate and Eliminations — ( 378 ) — — 35 — Total $ 6,633 $ ( 176 ) $ 486 $ 4 $ 1,272 $ 394 2021 Title Insurance and Services $ 6,857 $ 260 $ 275 $ — $ 1,198 $ — Specialty Insurance 498 30 314 11 89 450 Corporate and Eliminations — 361 — — 36 — Total $ 7,355 $ 651 $ 589 $ 11 $ 1,323 $ 450 2020 Title Insurance and Services $ 5,249 $ 285 $ 263 $ — $ 1,000 $ — Specialty Insurance 498 21 317 ( 2 ) 83 520 Corporate and Eliminations — 20 — — 36 — Total $ 5,747 $ 326 $ 580 $ ( 2 ) $ 1,119 $ 520 (1) Includes net investment income and net investment gains (losses). |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES REINSURANCE (dollars in millions) Segment Premiums Ceded to Assumed Premiums Percentage of Title Insurance and Services 2022 $ 6,229 $ 19 $ 1 $ 6,211 0.0 % 2021 $ 6,879 $ 22 $ — $ 6,857 0.0 % 2020 $ 5,265 $ 16 $ — $ 5,249 0.0 % Specialty Insurance 2022 $ 423 $ 1 $ — $ 422 0.0 % 2021 $ 504 $ 6 $ — $ 498 0.0 % 2020 $ 508 $ 10 $ — $ 498 0.0 % |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | S CHEDULE V 1 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in millions) Year Ended December 31, 2022 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 14 $ 11 $ — $ 4 (1) $ 21 Reserve for known and incurred but not reported Consolidated $ 1,284 $ 486 $ ( 11 ) $ 434 (2) $ 1,325 Reserve deducted from notes receivable: Consolidated $ — $ 28 $ — $ 21 $ 7 Reserve deducted from deferred income taxes: Consolidated $ 8 $ — $ — $ 1 $ 7 (1) Amount represents accounts written off, net of recoveries. (2) Amount represents claim payments, net of recoveries. SCHEDULE V 2 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in millions) Year Ended December 31, 2021 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 14 $ 4 $ — $ 4 (1) $ 14 Reserve for known and incurred but not reported Consolidated $ 1,178 $ 589 $ ( 1 ) $ 482 (2) $ 1,284 Reserve deducted from deferred income taxes: Consolidated $ 9 $ — $ — $ 1 $ 8 (1) Amount represents accounts written off, net of recoveries. (2) Amount represents claim payments, net of recoveries. SCHEDULE V 3 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in millions) Year Ended December 31, 2020 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 13 $ 7 $ — $ 6 (1) $ 14 Reserve for known and incurred but not reported Consolidated $ 1,063 $ 580 $ 6 $ 471 (2) $ 1,178 Reserve deducted from deferred income taxes: Consolidated $ 10 $ — $ — $ 1 $ 9 (1) Amount represents accounts written off, net of recoveries. (2) Amount represents claim payments, net of recoveries. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. 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, New Zealand, 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's property and casualty business was in the final stages of its wind-down in 2022. • The Company’s corporate segment includes its investments in venture-stage companies, certain financing facilities and corporate services that support the Company’s business operations. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values, or non-marketable equity securities, are accounted for at cost, less impairment, and are adjusted up or down for any observable price changes. |
Use of Estimates | Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. |
Cash Equivalents | Cash equivalents The Company considers cash equivalents to include all unrestricted short-term investments that have an initial maturity of 90 days or less. |
Accounts and Accrued Income Receivable | Accounts and accrued income receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for credit losses. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the current condition, and future expectations, of the general economy and industry as a whole. Amounts are written off in the period in which they are deemed to be uncollectible. The Company’s policy is to present accrued interest receivable on financial assets measured at amortized cost within accounts and accrued income receivable on the balance sheet. Accrued interest receivable at December 31, 2022 and 2021 totaled $ 17 million and $ 2 million, respectively. The Company has elected to not measure an allowance for credit losses for accrued interest receivable and maintains a policy that all receivables ninety days past due are written off to credit loss expense. Accounts are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Payments of interest for accounts in non-accrual status are applied under the cost recovery method. |
Investments | Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. |
Debt and Equity Securities | Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive income/loss. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. When the fair value of an available-for-sale debt security falls below its amortized cost, entities must determine whether the decline in fair value is due to credit-related factors or noncredit-related factors. Declines in fair value that are credit-related are recorded on the balance sheet through an allowance for credit losses with a corresponding adjustment to earnings and declines that are noncredit-related are recognized through other comprehensive income/loss. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2022, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. For debt securities in an unrealized loss position for which the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security, the Company determines whether the loss is due to credit-related factors or noncredit-related factors. For debt securities in an unrealized loss position for which the losses are primarily due to credit-related factors, the Company’s policy is to recognize the entire loss in earnings. For debt securities in an unrealized loss position for which the losses are determined to be the result of both credit-related and noncredit-related factors, the credit loss is determined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted using the effective interest rate (i.e., purchase yield) and for variable rate securities the interest rate is fixed at the rate in effect at the credit loss measurement date. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. The Company’s policy is to present accrued interest receivable on debt securities within accounts and accrued income receivable on the balance sheet. Accrued interest receivable on debt securities at December 31, 2022 and 2021 totaled $ 38 million and $ 34 million, respectively. The Company has elected to not measure an allowance for accrued interest receivable on debt securities and maintains a policy that all receivables ninety days past due are written off to credit loss expense. Debt securities are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Interest income is recognized on a cash basis for interest payments received on debt securities in non-accrual status. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2022 and 2021, the fair values of such investments totaled $ 86 million and $ 91 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. Equity securities Marketable equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and preferred stocks of corporate entities. Changes in the fair values of the Company’s equity securities are recognized in net investment gains/losses on the consolidated statements of income. Equity investments in which the Company exercises significant influence but does not control, and is not the primary beneficiary, are accounted for under the equity method of accounting. These investments are initially measured at cost and are generally adjusted by the Company’s share of equity in the income or losses of the investee. The carrying values of these investments are written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment is impaired, the Company assesses the current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity is operating. The Company has elected to measure its non-marketable equity securities in which it does not exercise significant influence over the investee and without readily determinable fair values at cost, less impairment, adjusted up or down for any observable price changes from orderly transactions for the identical or a similar investment of the same issuer. The carrying values of these investments are written down, or impaired, to fair value when a qualitative assessment indicates that the fair value is less than the carrying value. In making the determination as to whether an individual investment is impaired, the Company assesses such qualitative factors as the current and expected financial condition of each relevant entity, the market conditions in the industry in which the entity operates and the entity’s anticipated ability to generate sufficient cash flows. |
Notes Receivable | Notes Receivable Notes receivable are carried at cost, less allowance for credit losses. An allowance for credit losses is established on an individual note based on the Company’s estimate of the net amount expected to be collected. The allowance for credit losses is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. For the year ended December 31, 2022, the Company recorded $ 28 million in credit losses on notes receivable related to its venture investment portfolio. Notes receivable are included in other assets on the consolidated balance sheets. |
Secured financings receivable and payable | Secured financings receivable and payable The Company’s secured financings receivable are collateralized by mortgage loans on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. No allowance for credit losses has been recorded due to, among other factors, the Company typically identifying investors in the underlying mortgage loans prior to making advances, the short-term nature of these receivables, the majority of the underlying mortgage loans are Qualified Mortgages (QM) and due to the receivable having no history of significant prior credit losses. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. |
Property and Equipment | Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 3 to 40 years and from 3 to 15 years, respectively. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Computer software developed for internal use and for use with the Company’s products is amortized over estimated useful lives ranging from 1 to 15 years using the straight-line method. Software development and implementation costs, which include certain payroll-related costs of employees directly associated with developing or implementing software and payments to third parties directly associated with developing or implementing software are capitalized during the application development or implementation stage until the software is ready for its intended use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Impairment losses on property and equipment for the years ended December 31, 2022 and 2021 were $ 1 million and $ 5 million, respectively. In connection with the Company’s decision in 2020 to exit its property and casualty insurance business, it recognized impairment losses on its capitalized software of $ 18 million for the year ended December 31, 2020. |
Leases | Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. In connection with its lease commitments, the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) on leases of commercial real estate and instead accounts for both components as a single lease component for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company excludes any leases with an initial term of 12 months or less from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased use of all, or a portion, of a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $ 2.6 million and $ 1.0 million for the years ended December 31, 2022 and 2020, respectively, and were immaterial for the year ended December 31, 2021. For further information on the Company’s leasing arrangements see Note 7 Leases. |
Title plants and other indexes | Title plants and other indexes Title plants are carried at cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is initially recorded at cost and is amortized using the straight-line method over a 15 year estimated useful life. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of title plants whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. |
Business Combinations | Business Combinations Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed and are based on their estimated fair values at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. |
Goodwill Impairment | Goodwill Impairment The Company is required to perform an annual goodwill impairment assessment for each reporting unit for which goodwill has been allocated. The reporting units that have been allocated goodwill include title insurance and home warranty. The Company’s trust and other services reporting unit has no allocated goodwill and is, therefore, not assessed for impairment. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on accounting guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50 %) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego a qualitative assessment and perform a quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of a qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform a quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and, where appropriate, market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. The Company chose to perform qualitative assessments for its title insurance and home warranty reporting units for 2022 and 2021, and performed quantitative impairment tests for 2020. The results of the Company’s qualitative assessments in 2022 and 2021 supported the conclusion that the reporting unit fair values were not more likely than not less than their carrying amounts and, therefore, a quantitative impairment test was not considered necessary. Based on the results of the quantitative tests in 2020, the Company determined that the fair values for both reporting units exceeded their carrying amounts and no additional analysis was required. As a result of the Company’s annual goodwill impairment assessments for the title insurance and home warranty reporting units, the Company did no t record any goodwill impairment losses related to either reporting unit for 2022, 2021 or 2020. |
Other Intangible Assets | Other intangible assets The Company’s finite-lived intangible assets consist of customer relationships, noncompete agreements, trademarks, internal-use software licenses and patents. These assets are amortized on a straight-line basis over their useful lives ranging from 1 to 20 years and are subject to impairment assessments when there is an indication of a triggering event or abandonment. The Company’s indefinite-lived other intangible assets consist of licenses which are not amortized but rather assessed for impairment by comparing the fair values to carrying amounts at least annually, and when an indicator of potential impairment has occurred. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Management’s impairment assessment for indefinite-lived other intangible assets include a valuation using a discounted cash flow analysis or through a market approach. If the fair value exceeds its carrying amount, the asset is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment loss is recorded equal to the excess. |
Reserve for Known and Incurred but Not Reported Claims | Reserve for known and incurred but not reported claims The Company provides for title insurance losses through a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. The process of assessing the loss provision rate and the resulting IBNR reserve involves an evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also contemplated as part of the reserve analysis. These include conditions in the real estate and mortgage markets, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. For recent policy years at early stages of development (generally the last three years), IBNR is generally estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees and by adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. The volume and timing of title insurance claims are subject to cyclical influences from both the real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often the lender must realize an actual loss, or at least be likely to realize an actual loss, for a title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that the sensitivity of claims to external conditions in the real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70 % to 80 % of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss rates exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. The Company provides for claims losses relating to its home warranty business based on the average cost per claim and historical loss experience as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience adjusted for estimated future increases in costs. |
Contingent Litigation and Regulatory Liabilities | Contingent litigation and regulatory liabilities Amounts related to contingent litigation and regulatory liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. The Company records legal fees in other operating expenses in the period incurred. |
Revenues | Revenues Premiums on title policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Premiums on home warranty contracts are generally recognized ratably in proportion to expected claims experience over the duration of the policy or contract, which is typically 12 months. Information and other revenues are recognized when control of the promised goods or services is transferred to the customer and in an amount that reflects the consideration the Company expects to be entitled to in exchange for these goods or services. For those products and services where the Company’s performance obligation is satisfied at a point in time and for which there is no ongoing obligation, revenue is recognized upon delivery. For those products and services where the Company satisfies its performance obligation over time as the product or service is being transferred to the customer, revenue is generally recognized using the output method as the products or services are delivered. The Company applies the optional exemptions allowed under accounting guidance whereby the Company is not required to disclose either the transaction price allocated to performance obligations that are unsatisfied as of the end of the period or an explanation as to when the Company expects to recognize the related revenue. Such contracts generally include performance obligations that are contingent upon the closing of a real estate transaction or include variable consideration based on order volumes and have remaining contract terms of generally less than three years. The Company is allowed to apply the optional exemptions to its remaining performance obligations due to (1) the performance obligation is part of a contract that has an original duration of one year or less, (2) the associated revenue is based on the Company’s right to invoice for the value of the product or service delivered, (3) the associated variable consideration is allocated entirely to wholly unsatisfied performance obligations or (4) immateriality. The Company also applies the practical expedient allowed under accounting guidance whereby it can disregard the impact to the transaction price of the effects of a significant financing component for arrangements where the Company expects the period between delivery of the product or service and customer payment to be one year or less. In addition, the Company applies the practical expedient whereby it recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period for the asset that the Company otherwise would have recognized is one year or less. The Company records a contract asset, and recognizes revenue, upon delivery of certain products related to the closing of a real estate transaction where the Company’s right to payment is subject to the closing of the transaction. The Company records a contract liability for payments received in advance of revenue recognition for certain products or services. Contract assets and liabilities were not material at December 31, 2022 and 2021. Revenues recognized during the years ended December 31, 2022, 2021 and 2020 that were included in contract liabilities at the beginning of the respective period were not material. For information about the Company’s revenues disaggregated by reportable segment see Note 23 Segment Financial Information. |
Premium Taxes | Premium taxes Title insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. |
Income Taxes | Income taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. |
Share-Based Compensation | Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. For awards with retirement eligibility provisions, the cost is recognized through the date the employee becomes eligible to retire and is no longer required to provide service to earn the award. The Company accounts for forfeitures as they occur. The Company utilizes a Monte Carlo valuation model to estimate the fair value of its market-based equity-settled performance awards. The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting features and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. In 2022, the Company began granting performance restricted stock units (“PRSUs”) to certain key employees and executives, which generally contain service and market conditions. RSUs and PRSUs receive dividend equivalents in the form of RSUs/PRSUs having the same vesting requirements as the initial grant. The Company also offers an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at 85 % of the lower of the closing price on either the first or last day of each offering period. The offering periods are three-month periods beginning on January 1, April 1, July 1 and October 1 of each fiscal year. The Company recognizes an expense in the amount equal to the value of the 15 % discount and look-back feature over the three-month offering period. |
Earnings Per Share | Earnings per share Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential dilutive common shares include RSUs and PRSUs. |
Employee Benefit Plans | Employee benefit plans The Company recognizes the underfunded status of its unfunded supplemental benefit plans as a liability on its consolidated balance sheets. Actuarial gains and losses and prior service costs and credits that have not been previously recognized as a component of net periodic benefit cost are recorded as a component of accumulated other comprehensive income/loss. Plan obligations are measured annually as of December 31. The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income or loss earned on the Company’s plan assets is included as a component of net investment income and the income or loss earned by the plan participants is included as a component of personnel costs on the consolidated statements of income. |
Foreign Currency | Foreign currency The Company operates in other countries, including Canada, the United Kingdom, Australia, New Zealand and South Korea. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of foreign subsidiaries with local currencies that were determined to be the functional currency are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing during the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive income/loss as a separate component of stockholders’ equity. For those foreign subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with remeasurement gains and losses included in other operating expenses. Gains and losses resulting from foreign currency transactions are included within other operating expenses. |
Reinsurance | Reinsurance The Company’s title insurance business assumes and cedes large title insurance risks through reinsurance. Additionally, the Company has limited reinsurance arrangements related to certain products offered through its international operations. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s consolidated statements of income. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0 % of consolidated premium and escrow fees for each of the three years in the period ended December 31, 2022. Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the years ended December 31, 2022, 2021 and 2020. |
Escrow deposits and trust assets | Escrow deposits and trust assets The Company administers escrow deposits and trust assets as a service to its direct customers. Escrow deposits totaled $ 10.0 billion and $ 10.8 billion at December 31, 2022 and 2021, respectively, of which $ 4.6 billion and $ 4.8 billion, respectively, were held at First American Trust, FSB (“FA Trust”). The remaining deposits were held at third-party financial institutions. Trust assets held or managed by FA Trust totaled $ 4.1 billion and $ 4.6 billion at December 31, 2022 and 2021, respectively. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits with various financial institutions. The results from these programs are included as income or a reduction in expense, as appropriate, in the consolidated statements of income based on the nature of the arrangement and benefit received. Like-kind exchanges The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds administered by the Company totaled $ 2.8 billion and $ 6.0 billion at December 31, 2022 and 2021, respectively. The like-kind exchange deposits are held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the returns on such proceeds. |
Subservicing Deposits | Subservicing deposits In conducting its residential mortgage loan subservicing operations, the Company administers cash deposits on behalf of its clients. Cash deposits totaled $ 1.1 billion at December 31, 2022, of which $ 0.7 billion were held at FA Trust. The remaining deposits were held at third-party financial institutions. Cash deposits totaled $ 0.4 billion at December 31, 2021, all of which were held at third-party financial institutions. Cash deposits held at third-party financial institutions are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. In connection with certain accounts, the Company has ongoing programs for realizing economic benefits with various financial institutions whereby it earns economic benefits either as income or as a reduction in expense. Deposit balances held at FA Trust are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying consolidated balance sheets. The Company regularly reviews the financial strength of third-party financial institutions where deposits are held and, based on this review and the fact that all amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation, does not expect any credit losses; therefore the Company has not recorded a liability for credit losses. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (“FASB”) issued updated guidance intended to increase the comparability of financial information across reporting entities that have investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The updated guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, as a result, should not be considered in measuring fair value. In addition, new disclosures are required about the nature of the restrictions and their remaining duration. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of this guidance to impact its consolidated financial statements. |
Debt Securities (Tables)
Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt Securities, Classified as Available-For-Sale | Investments in debt securities, classified as available-for-sale, are as follows: Amortized Gross unrealized Estimated (in millions) cost gains losses fair value December 31, 2022 U.S. Treasury bonds $ 309 $ 1 $ ( 7 ) $ 303 Municipal bonds 1,671 3 ( 195 ) 1,479 Foreign government bonds 208 — ( 14 ) 194 Governmental agency bonds 248 — ( 19 ) 229 Governmental agency mortgage-backed securities 5,253 1 ( 653 ) 4,601 U.S. corporate debt securities 1,004 2 ( 85 ) 921 Foreign corporate debt securities 477 2 ( 36 ) 443 $ 9,170 $ 9 $ ( 1,009 ) $ 8,170 December 31, 2021 U.S. Treasury bonds $ 123 $ 1 $ ( 1 ) $ 123 Municipal bonds 1,607 59 ( 17 ) 1,649 Foreign government bonds 228 2 ( 3 ) 227 Governmental agency bonds 175 3 ( 1 ) 177 Governmental agency mortgage-backed securities 5,620 34 ( 47 ) 5,607 U.S. corporate debt securities 1,071 19 ( 9 ) 1,081 Foreign corporate debt securities 493 9 ( 4 ) 498 $ 9,317 $ 127 $ ( 82 ) $ 9,362 |
Gross Unrealized Losses on Investments in Debt Securities | Investments in debt securities in an unrealized loss position, based on length of time, are as follows: Less than 12 months 12 months or longer Total (in millions) Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2022 U.S. Treasury bonds $ 108 $ ( 1 ) $ 50 $ ( 6 ) $ 158 $ ( 7 ) Municipal bonds 813 ( 56 ) 540 ( 139 ) 1,353 ( 195 ) Foreign government bonds 142 ( 6 ) 46 ( 8 ) 188 ( 14 ) Governmental agency bonds 173 ( 8 ) 56 ( 11 ) 229 ( 19 ) Governmental agency mortgage-backed 1,860 ( 141 ) 2,627 ( 512 ) 4,487 ( 653 ) U.S. corporate debt securities 528 ( 38 ) 325 ( 47 ) 853 ( 85 ) Foreign corporate debt securities 241 ( 17 ) 137 ( 19 ) 378 ( 36 ) $ 3,865 $ ( 267 ) $ 3,781 $ ( 742 ) $ 7,646 $ ( 1,009 ) December 31, 2021 U.S. Treasury bonds $ 76 $ ( 1 ) $ — $ — $ 76 $ ( 1 ) Municipal bonds 684 ( 17 ) — — 684 ( 17 ) Foreign government bonds 103 ( 1 ) 33 ( 2 ) 136 ( 3 ) Governmental agency bonds 73 ( 1 ) — — 73 ( 1 ) Governmental agency mortgage-backed 4,036 ( 47 ) — — 4,036 ( 47 ) U.S. corporate debt securities 533 ( 9 ) — — 533 ( 9 ) Foreign corporate debt securities 234 ( 4 ) — — 234 ( 4 ) $ 5,739 $ ( 80 ) $ 33 $ ( 2 ) $ 5,772 $ ( 82 ) |
Investments in Debt Securities by Contractual Maturity | Investments in debt securities at December 31, 2022, by contractual maturities, are as follows: (in millions) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 143 $ 141 $ 6 $ 19 $ 309 Estimated fair value $ 143 $ 137 $ 5 $ 18 $ 303 Municipal bonds Amortized cost 21 288 758 604 1,671 Estimated fair value 21 268 669 521 1,479 Foreign government bonds Amortized cost 36 95 71 6 208 Estimated fair value 36 93 60 5 194 Governmental agency bonds Amortized cost 26 157 7 58 248 Estimated fair value 25 151 6 47 229 U.S. corporate debt securities Amortized cost 55 687 199 63 1,004 Estimated fair value 54 629 186 52 921 Foreign corporate debt securities Amortized cost 20 300 116 41 477 Estimated fair value 20 280 107 36 443 Total debt securities, excluding mortgage-backed Amortized cost $ 301 $ 1,668 $ 1,157 $ 791 $ 3,917 Estimated fair value $ 299 $ 1,558 $ 1,033 $ 679 $ 3,569 Total mortgage-backed securities Amortized cost 5,253 Estimated fair value 4,601 Total debt securities Amortized cost $ 9,170 Estimated fair value $ 8,170 |
Composition of Debt Securities Portfolio by Credit Rating Agencies | The composition of the debt securities portfolio at December 31, 2022, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (dollars in millions) Estimated Percentage Estimated Percentage Estimated Percentage Estimated U.S. Treasury bonds $ 303 100.0 $ — — $ — — $ 303 Municipal bonds 1,432 96.8 47 3.2 — — 1,479 Foreign government bonds 190 98.0 2 1.0 2 1.0 194 Governmental agency bonds 229 100.0 — — — — 229 Governmental agency mortgage- 4,601 100.0 — — — — 4,601 U.S. corporate debt securities 429 46.6 362 39.3 130 14.1 921 Foreign corporate debt securities 193 43.6 211 47.6 39 8.8 443 $ 7,377 90.3 $ 622 7.6 $ 171 2.1 $ 8,170 |
Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies | The composition of the debt securities portfolio in an unrealized loss position at December 31, 2022, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (dollars in millions) Estimated Percentage Estimated Percentage Estimated Percentage Estimated U.S. Treasury bonds $ 158 100.0 $ — — $ — — $ 158 Municipal bonds 1,315 97.2 38 2.8 — — 1,353 Foreign government bonds 184 97.9 1 0.5 3 1.6 188 Governmental agency bonds 229 100.0 — — — — 229 Governmental agency mortgage- 4,487 100.0 — — — — 4,487 U.S. corporate debt securities 411 48.2 327 38.3 115 13.5 853 Foreign corporate debt securities 169 44.7 175 46.3 34 9.0 378 $ 6,953 90.9 $ 541 7.1 $ 152 2.0 $ 7,646 |
Equity Securities (Tables)
Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments in Equity Securities, by Classification | Investments in equity securities, by classification, are summarized as follows: December 31, (in millions) 2022 2021 Marketable equity securities $ 280 $ 657 Non-marketable equity securities 396 441 Equity method investments 78 78 $ 754 $ 1,176 |
Summary of Investments in Marketable Equity Securities | Investments in marketable equity securities are summarized as follows: (in millions) Cost Unrealized gains (losses) Estimated December 31, 2022 Common stocks $ 324 $ ( 55 ) $ 269 Preferred stocks 15 ( 4 ) 11 $ 339 $ ( 59 ) $ 280 December 31, 2021 Common stocks $ 418 $ 222 $ 640 Preferred stocks 17 — 17 $ 435 $ 222 $ 657 |
Summary of Investments in Non-Marketable Equity Securities | Investments in non-marketable equity securities are summarized as follows: (in millions) Cost Unrealized gains Carrying amount December 31, 2022 $ 307 $ 89 $ 396 December 31, 2021 $ 215 $ 226 $ 441 |
Allowance for Credit Losses __2
Allowance for Credit Losses – Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses on Accounts Receivables | Activity in the allowance for credit losses on accounts receivable is summarized as follows: Year Ended December 31, (in millions) 2022 2021 Balance at beginning of period $ 14 $ 14 Provision for expected credit losses 11 4 Write-offs/recoveries ( 4 ) ( 4 ) Balance at end of period $ 21 $ 14 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is summarized as follows: December 31, (in millions) 2022 2021 Land $ 27 $ 24 Buildings 189 185 Leasehold improvements 72 70 Furniture and equipment 230 215 Capitalized software 1,059 884 1,577 1,378 Accumulated depreciation and amortization ( 940 ) ( 872 ) $ 637 $ 506 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | Lease assets and liabilities are summarized as follows: December 31. (in millions) 2022 2021 Classification Assets Operating lease assets $ 248 $ 249 Operating lease assets Finance lease assets 3 2 Other assets Total lease assets $ 251 $ 251 Liabilities Operating lease liabilities $ 269 $ 274 Operating lease liabilities Finance lease liabilities 3 3 Notes and contracts payable Total lease liabilities $ 272 $ 277 |
Summary of Components of Lease Expense | The components of lease expense are summarized as follows: Year ended December 31. (in millions) 2022 2021 2020 Classification Operating lease cost $ 93 $ 86 $ 89 Other operating expenses Finance lease cost: Amortization of lease assets 2 2 2 Depreciation and amortization Variable lease cost 34 31 32 Other operating expenses Short-term lease cost 3 2 1 Other operating expenses Sublease income ( 1 ) ( 3 ) ( 3 ) Information and other Net lease cost $ 131 $ 118 $ 121 |
Schedule of Future Minimum Lease Payments Under Operating and Finance Lease with Noncancelable Lease Terms | Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of December 31, 2022, are summarized as follows: (in millions) Operating Finance Total 2023 $ 86 $ 1 $ 87 2024 71 1 72 2025 55 1 56 2026 38 — 38 2027 21 — 21 Thereafter 17 — 17 Total lease payments 288 3 291 Interest ( 19 ) — ( 19 ) Present value of lease liabilities $ 269 $ 3 $ 272 |
Schedule of Information Related to Lease Terms and Discount Rate | Information related to lease terms and discount rates is summarized as follows: December 31, 2022 2021 Weighted-average remaining lease terms (years): Operating leases 4 4 Finance leases 2 2 Weighted-average discount rates: Operating leases 3.34 % 3.40 % Finance leases 3.23 % 3.96 % |
Schedule of Cash Flow Information Related to Lease Liabilities | Cash flow information related to lease liabilities is summarized as follows: Year ended December 31, (in millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96 $ 90 $ 93 Financing cash flows from finance leases $ 2 $ 2 $ 2 Operating lease assets obtained in exchange for new operating lease liabilities $ 66 $ 59 $ 54 Finance lease assets obtained in exchange for new finance lease liabilities $ 3 $ — $ 1 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | A summary of the changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2022 and 2021, is as follows: (in millions) Title Specialty Total Balance as of December 31, 2020 $ 1,366 $ 13 $ 1,379 Acquisitions 209 — 209 Balance as of December 31, 2021 1,575 13 1,588 Acquisitions 217 — 217 Transfers ( 28 ) 28 — Foreign currency translation ( 7 ) — ( 7 ) Balance as of December 31, 2022 $ 1,757 $ 41 $ 1,798 Accumulated impairment losses $ — $ ( 34 ) $ ( 34 ) |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets are summarized as follows: December 31, (in millions) 2022 2021 Finite-lived intangible assets: Customer relationships $ 191 $ 203 Noncompete agreements 34 49 Trademarks 70 32 Internal-use software licenses 24 21 Patents 3 3 322 308 Accumulated amortization ( 145 ) ( 107 ) 177 201 Indefinite-lived intangible assets: Licenses 17 17 $ 194 $ 218 |
Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated amortization expense for finite-lived intangible assets for the next five years is summarized as follows: Year (in millions) 2023 $ 46 2024 $ 33 2025 $ 26 2026 $ 26 2027 $ 11 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Banking And Thrifts [Abstract] | |
Escrow, Mortgage Subserving, and Other Deposits | Deposit accounts are summarized as follows: December 31, (dollars in millions) 2022 2021 Escrow deposits: Interest bearing $ 2,542 $ 2,792 Non-interest bearing 2,077 2,083 4,619 4,875 Mortgage subservicing deposits: Interest bearing 713 — Business checking and other deposits (1) 188 194 $ 5,520 $ 5,069 Weighted-average interest rate: Interest bearing deposit accounts 0.50 % 0.10 % (1) Accounts are primarily non-interest bearing. |
Reserve for Known and Incurre_2
Reserve for Known and Incurred But Not Reported Claims (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Activity in Reserve for Known and Incurred but Not Reported Claims | Activity in the reserve for known and incurred but not reported claims is summarized as follows: December 31, (in millions) 2022 2021 2020 Balance at beginning of year $ 1,284 $ 1,178 $ 1,063 Provision related to: Current year 468 570 532 Prior years 18 19 48 486 589 580 Payments, net of recoveries, related to: Current year 227 292 268 Prior years 207 190 203 434 482 471 Other ( 11 ) ( 1 ) 6 Balance at end of year $ 1,325 $ 1,284 $ 1,178 A summary of the Company’s loss reserves is as follows: December 31, (dollars in millions) 2022 2021 Known title claims $ 62 4.7 % $ 67 5.2 % IBNR title claims 1,207 91.1 % 1,143 89.0 % Total title claims 1,269 95.8 % 1,210 94.2 % Non-title claims 56 4.2 % 74 5.8 % Total loss reserves $ 1,325 100.0 % $ 1,284 100.0 % |
Summary of Incurred and Paid Claims Development Net of Reinsurance | The information below about incurred and paid claims development for the years ended December 31, 2013 to 2021, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses December 31, 2022 Accident Years ended December 31, Cumulative number of reported Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022 claims (in millions) 2013 $ 124 124 124 124 124 124 124 124 124 $ 124 0.7 2014 124 124 124 124 124 124 124 124 124 0.8 2015 144 144 144 144 144 144 144 144 0.9 2016 173 173 173 173 173 173 173 1.0 2017 167 167 167 167 167 167 1.0 2018 180 180 180 180 180 1.1 2019 174 174 174 174 1.1 2020 197 197 197 1.2 2021 218 218 1.2 2022 211 1.1 Total $ 1,712 * Amounts unaudited. Cumulative paid claims and allocated claim adjustment expenses Accident Years ended December 31, Year 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020* 2021* 2022 (in millions) 2013 $ 111 124 124 124 124 124 124 124 124 $ 124 2014 111 124 124 124 124 124 124 124 124 2015 129 144 144 144 144 144 144 144 2016 155 173 173 173 173 173 173 2017 151 167 167 167 167 167 2018 163 180 180 180 180 2019 159 174 174 174 2020 178 197 197 2021 199 218 2022 192 Total $ 1,693 All outstanding liabilities before 2013 — Liabilities for claims and claims adjustment expenses $ 19 * Amounts unaudited. |
Reconciliation of the Net Incurred and Paid Claims Development Tables to the Liability for Claims and Claim Adjustment Expense | A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2022, is as follows: December 31, 2022 (in millions) Liability for unpaid claims and claim adjustment — short-duration: Home warranty $ 19 Property and casualty insurance 37 56 Insurance lines other than short-duration: Title insurance 1,269 Total liability for unpaid claims and claims adjustment $ 1,325 |
Schedule of Supplementary Information about Average Historical Claims | Supplementary information about average historical claims duration for the Company’s home warranty business as of December 31, 2022, is as follows: Average annual percentage payout of incurred claims by age (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Annual payout 90.3 % 9.7 % — — — — — — — — |
Notes and Contracts Payable (Ta
Notes and Contracts Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes and Contracts Payable | December 31, 2022 2021 (dollars in millions) 2.40% senior unsecured notes due August 15, 2031 , effective interest rate of 2.44 % $ 650 $ 650 4.00% senior unsecured notes due May 15, 2030 , effective interest rate of 4.05 % 450 450 4.60% senior unsecured notes due November 15, 2024 , effective interest rate of 4.60 % 300 300 4.30% senior unsecured notes due February 1, 2023 , effective interest rate of 4.35 % 250 250 Trust deed note due November 1, 2023 , collateralized by land and buildings 36 and $ 37 at December 31, 2022 and 2021, 5.26 % 4 8 Other notes and contracts payable with maturities through 2027 , weighted 3.30 % and 4.21 % at December 31, 2022 and 2021, 4 4 1,658 1,662 Unamortized discounts and debt issuance costs ( 12 ) ( 14 ) $ 1,646 $ 1,648 |
Aggregate Annual Maturities of Notes and Contracts Payable | The aggregate annual maturities for notes and contracts payable for the next five years and thereafter are summarized as follows: Year Annual maturities (in millions) 2023 $ 256 2024 301 2025 1 2026 — 2027 — Thereafter 1,100 $ 1,658 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income | The components of net investment income are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Interest on: Debt securities $ 206 $ 133 $ 126 Deposits and other investments 135 47 69 Dividends on equity securities 9 11 11 Deferred compensation plan assets ( 25 ) 19 13 Equity in earnings of affiliates, net 11 7 6 Other 7 1 — Total investment income 343 218 225 Investment expenses ( 3 ) ( 3 ) ( 4 ) Net investment income $ 340 $ 215 $ 221 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Expenses | Income taxes are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Current: Federal $ 132 $ 244 $ 191 State 19 37 27 Foreign 18 20 12 169 301 230 Deferred: Federal ( 80 ) 65 ( 18 ) State ( 25 ) 24 1 Foreign ( 3 ) 3 10 ( 108 ) 92 ( 7 ) $ 61 $ 393 $ 223 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s actual income tax expense differs from the expense computed by applying the federal income tax rate of 21 % for the years ended December 31, 2022, 2021 and 2020. A reconciliation of these differences is as follows: Year ended December 31, 2022 2021 2020 (dollars in millions) Taxes calculated at federal rate $ 68 21.0 % $ 345 21.0 % $ 194 21.0 % State taxes, net of federal benefit ( 5 ) ( 1.5 ) 48 2.9 22 2.4 Change in liability for tax positions ( 1 ) ( 0.3 ) — — — — Foreign income taxed at different rates 2 0.6 1 0.1 5 0.6 Unremitted foreign earnings — — 1 0.1 ( 2 ) ( 0.2 ) Other items, net ( 3 ) ( 1.1 ) ( 2 ) ( 0.2 ) 4 0.3 $ 61 18.7 % $ 393 23.9 % $ 223 24.1 % |
Net Deferred Tax (Liability) Assets | The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: December 31, 2022 2021 (in millions) Deferred tax assets: Deferred revenue $ 8 $ 11 Employee benefits 97 102 Bad debt reserves 12 7 Pension 13 30 Net operating loss carryforward 29 10 Foreign tax credit 5 4 Operating lease liabilities 59 58 Payroll taxes — 5 Securities 264 — Other 10 6 497 233 Valuation allowance ( 7 ) ( 8 ) 490 225 Deferred tax liabilities: Depreciable and amortizable assets 282 274 Claims and related salvage 82 89 Investments in affiliates 26 63 Securities — 65 Operating lease assets 53 52 Unremitted foreign earnings 12 13 455 556 Net deferred tax asset (liability) $ 35 $ ( 331 ) |
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows: Year ended December 31, 2022 2021 2020 (in millions) Unrecognized tax benefits—beginning balance $ 8 $ 7 $ 1 Gross increases (decreases)—prior period tax — — 5 Gross increases—current period tax positions 1 1 1 Settlements with taxing authorities ( 6 ) — — Unrecognized tax benefits—ending balance $ 3 $ 8 $ 7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Year ended December 31, 2022 2021 2020 (in millions, except per share data) Numerator Net income attributable to the Company $ 263 $ 1,241 $ 696 Denominator Basic weighted-average common shares 107.0 111.0 112.7 Effect of dilutive RSUs 0.3 0.4 0.3 Diluted weighted-average common shares 107.3 111.4 113.0 Net income per share attributable to the Company’s Basic $ 2.46 $ 11.18 $ 6.18 Diluted $ 2.45 $ 11.14 $ 6.16 (1) Net income per share may not recalculate due to rounding. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Principal Components of Employee Benefit Costs | The principal components of employee benefit costs are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Expense: Savings plan $ 37 $ 74 $ 32 Unfunded supplemental benefit plans 12 11 9 Other plans, net (1) ( 14 ) 24 19 $ 35 $ 109 $ 60 (1) For the year ended December 31, 2022, participant investments included in the deferred compensation plan realized losses in excess of expenses recorded by the Company. |
Company's Benefit Obligations and Funded Status | The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2022 2021 (in millions) Change in projected benefit obligation: Benefit obligation at beginning of year $ 262 $ 283 Interest costs 6 5 Actuarial gains ( 57 ) ( 11 ) Benefits paid ( 15 ) ( 15 ) Projected benefit obligation at end of year 196 262 Change in plan assets: Contributions 15 14 Benefits paid ( 15 ) ( 14 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 196 $ 262 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 196 $ 262 Amounts recognized in accumulated other Unrecognized net actuarial loss $ 48 $ 111 $ 48 $ 111 Accumulated benefit obligation at end of year $ 196 $ 262 |
Net Periodic Benefit Costs | Net periodic benefit costs related to the Company’s unfunded supplemental benefit pension plans are summarized as follows: Year ended December 31, 2022 2021 2020 (in millions) Expense: Interest costs $ 6 $ 5 $ 7 Amortization of net actuarial loss 6 7 5 Amortization of prior service credit — ( 1 ) ( 3 ) $ 12 $ 11 $ 9 |
The Weighted-Average Discount Rate Assumptions Used to Determine Net Periodic Benefit Costs and Projected Benefit Obligations | The weighted-average discount rate assumptions used to determine net periodic benefit costs for the Executive and Management Supplemental Benefit Plans for the years ended December 31, 2022, 2021 and 2020, are as follows: Year ended December 31, 2022 2021 2020 Discount rates: Projected benefit obligation 2.89 % 2.49 % 3.27 % Service cost 3.29 % 3.14 % 3.71 % Interest cost 2.37 % 1.83 % 2.86 % The weighted-average discount rate assumptions used to determine the projected benefit obligations for the Executive and Management Supplemental Benefit Plans at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 Discount rate 5.56 % 2.89 % |
Benefit Payments | Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in millions) 2023 $ 16 2024 $ 17 2025 $ 17 2026 $ 17 2027 $ 16 Five years thereafter $ 77 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured on Recurring Basis | The following tables present the fair values of the Company’s assets, measured on a recurring basis, as of December 31, 2022 and 2021: (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Debt securities: U.S. Treasury bonds $ 303 $ — $ 303 $ — Municipal bonds 1,479 — 1,479 — Foreign government bonds 194 — 194 — Governmental agency bonds 229 — 229 — Governmental agency mortgage-backed securities 4,601 — 4,601 — U.S. corporate debt securities 921 — 921 — Foreign corporate debt securities 443 — 443 — 8,170 — 8,170 — Marketable equity securities: Common stocks 269 269 — — Preferred stocks 11 11 — — 280 280 — — Mortgage loans held for sale 16 — 14 2 Total $ 8,466 $ 280 $ 8,184 $ 2 (in millions) Total Level 1 Level 2 Level 3 December 31, 2021 Debt securities: U.S. Treasury bonds $ 123 $ — $ 123 $ — Municipal bonds 1,649 — 1,649 — Foreign government bonds 227 — 227 — Governmental agency bonds 177 — 177 — Governmental agency mortgage-backed securities 5,607 — 5,607 — U.S. corporate debt securities 1,081 — 1,081 — Foreign corporate debt securities 498 — 498 — 9,362 — 9,362 — Marketable equity securities: Common stocks 640 640 — — Preferred stocks 17 17 — — 657 657 — — Mortgage loans held for sale 12 — 11 1 Total $ 10,031 $ 657 $ 9,373 $ 1 |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2022 and 2021: Carrying Estimated fair value (in millions) Amount Total Level 1 Level 2 Level 3 December 31, 2022 Assets: Cash and cash equivalents $ 1,224 $ 1,224 $ 1,224 $ — $ — Deposits with banks $ 63 $ 62 $ 8 $ 54 $ — Notes receivable, net $ 11 $ 11 $ — $ — $ 11 Secured financings receivable $ 423 $ 423 $ — $ 423 $ — Liabilities: Secured financings payable $ 366 $ 366 $ — $ 366 $ — Notes and contracts payable $ 1,646 $ 1,405 $ — $ 1,401 $ 4 Carrying Estimated fair value (in millions) Amount Total Level 1 Level 2 Level 3 December 31, 2021 Assets: Cash and cash equivalents $ 1,228 $ 1,228 $ 1,228 $ — $ — Deposits with banks $ 58 $ 58 $ 13 $ 45 $ — Notes receivable, net $ 32 $ 32 $ — $ — $ 32 Secured financings receivable $ 565 $ 565 $ — $ 565 $ — Liabilities: Secured financings payable $ 529 $ 529 $ — $ 529 $ — Notes and contracts payable $ 1,648 $ 1,724 $ — $ 1,720 $ 4 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Costs Associated with Share-Based Compensation Plans | The following table summarizes the costs associated with the Company’s share-based compensation plans: Year ended December 31, 2022 2021 2020 (in millions) Expense: RSUs $ 58 $ 48 $ 47 PRSUs 3 — — Employee stock purchase plan 6 6 5 $ 67 $ 54 $ 52 |
Summary of RSU and PSRU Activity | The following table summarizes RSU and PRSU activity for the year ended December 31, 2022: (in millions, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2021 0.9 $ 58.11 Granted during 2022 1.0 67.65 Vested during 2022 ( 1.0 ) 63.47 Unvested at December 31, 2022 0.9 $ 63.01 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2022, 2021 and 2020: First American Financial Corporation (in millions) Unrealized Foreign Pension Accumulated Balance at December 31, 2019 $ 84 $ ( 52 ) $ ( 73 ) $ ( 41 ) Change in unrealized gains (losses) on debt securities 116 — — 116 Change in unrealized gains (losses) on debt securities for 1 — — 1 Change in foreign currency translation adjustment — 14 — 14 Net actuarial loss — — ( 31 ) ( 31 ) Amortization of net actuarial loss — — 5 5 Amortization of prior service credit — — ( 3 ) ( 3 ) Tax effect ( 29 ) — 8 ( 21 ) Balance at December 31, 2020 172 ( 38 ) ( 94 ) 40 Change in unrealized gains (losses) on debt securities ( 189 ) — — ( 189 ) Change in foreign currency translation adjustment — ( 2 ) — ( 2 ) Net actuarial gain — — 11 11 Amortization of net actuarial loss — — 7 7 Amortization of prior service credit — — ( 1 ) ( 1 ) Tax effect 46 1 ( 5 ) 42 Balance at December 31, 2021 29 ( 39 ) ( 82 ) ( 92 ) Change in unrealized gains (losses) on debt securities ( 1,045 ) — — ( 1,045 ) Change in foreign currency translation adjustment — ( 43 ) — ( 43 ) Net actuarial gain — — 57 57 Amortization of net actuarial loss — — 6 6 Tax effect 264 1 ( 16 ) 249 Balance at December 31, 2022 $ ( 752 ) $ ( 81 ) $ ( 35 ) $ ( 868 ) |
Adjustments for Reclassification of Other Comprehensive Income (Loss) | The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2022, 2021 and 2020: Unrealized Foreign Pension Total (in millions) Year ended December 31, 2022 Pretax change before reclassifications $ ( 1,182 ) $ ( 43 ) $ 57 $ ( 1,168 ) Reclassifications out of AOCI 137 — 6 143 Tax effect 264 1 ( 16 ) 249 Total other comprehensive income (loss), net of tax $ ( 781 ) $ ( 42 ) $ 47 $ ( 776 ) Year ended December 31, 2021 Pretax change before reclassifications $ ( 169 ) $ ( 2 ) $ 11 $ ( 160 ) Reclassifications out of AOCI ( 20 ) — 6 ( 14 ) Tax effect 46 1 ( 5 ) 42 Total other comprehensive income (loss), net of tax $ ( 143 ) $ ( 1 ) $ 12 $ ( 132 ) Year ended December 31, 2020 Pretax change before reclassifications $ 125 $ 14 $ ( 31 ) $ 108 Reclassifications out of AOCI ( 8 ) — 2 ( 6 ) Tax effect ( 29 ) — 8 ( 21 ) Total other comprehensive income (loss), net of tax $ 88 $ 14 $ ( 21 ) $ 81 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the reclassifications out of AOCI on the respective line items in the consolidated statements of income: Year ended December 31, (in millions) 2022 2021 2020 Affected line items Unrealized gains (losses) on debt securities: Net realized (losses) gains on sales of debt $ ( 137 ) $ 20 $ 15 Net investment (losses) gains Credit losses recognized on debt securities — — ( 7 ) Net investment (losses) gains Pretax total $ ( 137 ) $ 20 $ 8 Tax effect $ 35 $ ( 5 ) $ ( 2 ) Pension benefit adjustment (1): Amortization of net actuarial loss $ ( 6 ) $ ( 7 ) $ ( 5 ) Other operating expenses Amortization of prior service credit — 1 3 Other operating expenses Pretax total $ ( 6 ) $ ( 6 ) $ ( 2 ) Tax effect $ 2 $ 2 $ 1 |
Segment Financial Information (
Segment Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2022, 2021 and 2020, is as follows: Revenues Depreciation Income (loss) Assets Capital (in millions) 2022 Title Insurance and Services $ 7,547 $ 162 $ 758 $ 13,911 $ 271 Specialty Insurance 437 5 27 461 4 Corporate and Eliminations ( 379 ) — ( 459 ) 583 — $ 7,605 $ 167 $ 326 $ 14,955 $ 275 2021 Title Insurance and Services $ 8,320 $ 152 $ 1,358 $ 15,058 $ 168 Specialty Insurance 541 6 36 557 4 Corporate and Eliminations 360 — 248 836 — $ 9,221 $ 158 $ 1,642 $ 16,451 $ 172 2020 Title Insurance and Services $ 6,535 $ 141 $ 1,026 $ 11,922 $ 117 Specialty Insurance 532 8 ( 25 ) 645 4 Corporate and Eliminations 19 — ( 78 ) 229 — $ 7,086 $ 149 $ 923 $ 12,796 $ 121 Direct premiums and escrow fees Agent Information Net investment income Net investment Total (in millions) 2022 Title Insurance and Services $ 2,663 $ 3,548 $ 1,127 $ 359 $ ( 150 ) $ 7,547 Specialty Insurance 422 — 22 6 ( 13 ) 437 Corporate and Eliminations — — ( 1 ) ( 25 ) ( 353 ) ( 379 ) $ 3,085 $ 3,548 $ 1,148 $ 340 $ ( 516 ) $ 7,605 2021 Title Insurance and Services $ 3,100 $ 3,757 $ 1,203 $ 188 $ 72 $ 8,320 Specialty Insurance 498 — 13 7 23 541 Corporate and Eliminations — — ( 1 ) 20 341 360 $ 3,598 $ 3,757 $ 1,215 $ 215 $ 436 $ 9,221 2020 Title Insurance and Services $ 2,490 $ 2,759 $ 1,001 $ 199 $ 86 $ 6,535 Specialty Insurance 498 — 13 9 12 532 Corporate and Eliminations — — ( 1 ) 13 7 19 $ 2,988 $ 2,759 $ 1,013 $ 221 $ 105 $ 7,086 |
Schedule Of Revenues From External Customers And Long-Lived Assets | Domestic and foreign revenues from external customers for the title insurance and services segment are as follows: Year Ended December 31, 2022 2021 2020 Domestic Foreign Domestic Foreign Domestic Foreign (in millions) Revenues $ 7,131 $ 416 $ 7,872 $ 448 $ 6,193 $ 342 Domestic and foreign long-lived assets for the title insurance and services segment are as follows: December 31, 2022 2021 2020 Domestic Foreign Domestic Foreign Domestic Foreign (in millions) Long-lived assets $ 1,001 $ 51 $ 945 $ 51 $ 957 $ 60 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Narrative) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) State | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Number of states company issues title insurance policies | State | 49 | ||
Number of states company issues home warranty contracts | State | 35 | ||
Net investment (losses) gains (realized of $(85), $20, $15) | $ (516) | $ 436 | $ 105 |
Non-Marketable Equity Securities | 396 | 441 | |
Equity method investments | 78 | 78 | |
Other assets | 361 | 448 | |
Accrued Interest Receivable | 17 | 2 | |
Accrued Interest Receivable On Debt Securities | 38 | 34 | |
Fair values of investments in debt securities for funding of statutory premium reserves and state deposits | 86 | 91 | |
Credit losses on notes receivable related to venture investment portfolio | $ 28 | ||
Period of mortgage loan sold description | Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. | ||
Impairment losses on property and equipment primarily related to impairments of internally developed software | $ 1 | 5 | 18 |
Impairment losses related to commercial real estate leases | $ 2.6 | $ 1 | |
Assessment to determine fair value | 50% | ||
Escrow deposits | $ 10,000 | 10,800 | |
Like-kind exchange funds | 2,800 | 6,000 | |
Cash deposits with third party financial institutions | 1,100 | 400 | |
Mortgage subservicing deposits interest bearing | 713 | 0 | |
First American Trust | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Escrow deposits | 4,600 | 4,800 | |
Assets held-in-trust | 4,100 | $ 4,600 | |
Mortgage subservicing deposits interest bearing | $ 700 | ||
Employee Stock Purchase Plan | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Employee stock purchase plan percentage of purchase price on closing price | 85% | 85% | |
Employee stock purchase plan percentage of discount purchase price on closing price | 15% | ||
Capitalized Real Estate | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Capitalized real estate estimated useful lives, years | 15 years | ||
Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Percentage of claim amounts known in the first few years of the policy life | 70% | ||
Minimum | Other Intangible Assets | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other intangible assets estimated useful lives, years | 1 year | ||
Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Percentage of claim amounts known in the first few years of the policy life | 80% | ||
Percentage of total premiums assumed and ceded in connection with reinsurance | 1% | 1% | 1% |
Maximum | Other Intangible Assets | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other intangible assets estimated useful lives, years | 20 years | ||
Buildings | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 3 years | ||
Buildings | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 40 years | ||
Furniture and Equipment | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 3 years | ||
Furniture and Equipment | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 15 years | ||
Leasehold Improvements | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Leasehold improvements, estimated useful lives | initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. | ||
Capitalized Software Costs | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 1 year | ||
Capitalized Software Costs | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 15 years | ||
Title Insurance and Services | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Operating Segments | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Net investment (losses) gains (realized of $(85), $20, $15) | 516 | 436 | 105 |
Operating Segments | Specialty Insurance | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Net investment (losses) gains (realized of $(85), $20, $15) | $ 13 | $ 23 | $ 12 |
Statutory Restrictions on Inv_2
Statutory Restrictions on Investments and Stockholders' Equity (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | |||
Investments on deposit with state treasurers | $ 102 | $ 108 | |
Dividends available to parent from subsidiaries | 689 | ||
Loans and advances available to parent from subsidiaries | 113 | ||
Differences in state prescribed or permitted practices to NAIC Statutory Accounting | 325 | 293 | |
FATICO | |||
Statutory Accounting Practices [Line Items] | |||
Statutory surplus maintained by insurance subsidiary | 1,500 | 1,700 | |
Statutory net income of insurance subsidiary | $ 436 | $ 654 | $ 502 |
Debt Securities (Investments in
Debt Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 9,170 | $ 9,317 |
Debt Securities, Gross unrealized gains | 9 | 127 |
Debt Securities, Gross unrealized losses | (1,009) | (82) |
Debt securities, Estimated fair value | 8,170 | 9,362 |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 309 | 123 |
Debt Securities, Gross unrealized gains | 1 | 1 |
Debt Securities, Gross unrealized losses | (7) | (1) |
Debt securities, Estimated fair value | 303 | 123 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 1,671 | 1,607 |
Debt Securities, Gross unrealized gains | 3 | 59 |
Debt Securities, Gross unrealized losses | (195) | (17) |
Debt securities, Estimated fair value | 1,479 | 1,649 |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 208 | 228 |
Debt Securities, Gross unrealized gains | 0 | 2 |
Debt Securities, Gross unrealized losses | (14) | (3) |
Debt securities, Estimated fair value | 194 | 227 |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 248 | 175 |
Debt Securities, Gross unrealized gains | 0 | 3 |
Debt Securities, Gross unrealized losses | (19) | (1) |
Debt securities, Estimated fair value | 229 | 177 |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 5,253 | 5,620 |
Debt Securities, Gross unrealized gains | 1 | 34 |
Debt Securities, Gross unrealized losses | (653) | (47) |
Debt securities, Estimated fair value | 4,601 | 5,607 |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 1,004 | 1,071 |
Debt Securities, Gross unrealized gains | 2 | 19 |
Debt Securities, Gross unrealized losses | (85) | (9) |
Debt securities, Estimated fair value | 921 | 1,081 |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 477 | 493 |
Debt Securities, Gross unrealized gains | 2 | 9 |
Debt Securities, Gross unrealized losses | (36) | (4) |
Debt securities, Estimated fair value | $ 443 | $ 498 |
Debt Securities (Sales of Debt
Debt Securities (Sales of Debt Securities) (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains on sales of debt securities | $ 5 | $ 29 | $ 18 |
Realized losses on sales of debt securities | 142 | 9 | 3 |
Proceeds from sales of debt securities | $ 1,753 | $ 1,071 | $ 759 |
Debt Securities (Gross Unrealiz
Debt Securities (Gross Unrealized Losses on Investments in Debt Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 3,865 | $ 5,739 |
Unrealized losses, Less than 12 months | (267) | (80) |
Estimated fair value, 12 months or longer | 3,781 | 33 |
Unrealized losses, 12 months or longer | (742) | (2) |
Estimated fair value, Total | 7,646 | 5,772 |
Unrealized losses, Total | (1,009) | (82) |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 108 | 76 |
Unrealized losses, Less than 12 months | (1) | (1) |
Estimated fair value, 12 months or longer | 50 | 0 |
Unrealized losses, 12 months or longer | (6) | 0 |
Estimated fair value, Total | 158 | 76 |
Unrealized losses, Total | (7) | (1) |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 813 | 684 |
Unrealized losses, Less than 12 months | (56) | (17) |
Estimated fair value, 12 months or longer | 540 | 0 |
Unrealized losses, 12 months or longer | (139) | 0 |
Estimated fair value, Total | 1,353 | 684 |
Unrealized losses, Total | (195) | (17) |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 142 | 103 |
Unrealized losses, Less than 12 months | (6) | (1) |
Estimated fair value, 12 months or longer | 46 | 33 |
Unrealized losses, 12 months or longer | (8) | (2) |
Estimated fair value, Total | 188 | 136 |
Unrealized losses, Total | (14) | (3) |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 173 | 73 |
Unrealized losses, Less than 12 months | (8) | (1) |
Estimated fair value, 12 months or longer | 56 | 0 |
Unrealized losses, 12 months or longer | (11) | 0 |
Estimated fair value, Total | 229 | 73 |
Unrealized losses, Total | (19) | (1) |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 1,860 | 4,036 |
Unrealized losses, Less than 12 months | (141) | (47) |
Estimated fair value, 12 months or longer | 2,627 | 0 |
Unrealized losses, 12 months or longer | (512) | 0 |
Estimated fair value, Total | 4,487 | 4,036 |
Unrealized losses, Total | (653) | (47) |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 528 | 533 |
Unrealized losses, Less than 12 months | (38) | (9) |
Estimated fair value, 12 months or longer | 325 | 0 |
Unrealized losses, 12 months or longer | (47) | 0 |
Estimated fair value, Total | 853 | 533 |
Unrealized losses, Total | (85) | (9) |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 241 | 234 |
Unrealized losses, Less than 12 months | (17) | (4) |
Estimated fair value, 12 months or longer | 137 | 0 |
Unrealized losses, 12 months or longer | (19) | 0 |
Estimated fair value, Total | 378 | 234 |
Unrealized losses, Total | $ (36) | $ (4) |
Debt Securities (Investments _2
Debt Securities (Investments in Debt Securities by Contractual Maturity) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, amortized cost | $ 9,170 | $ 9,317 |
Debt securities, estimated fair value | 8,170 | 9,362 |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 143 | |
Amortized cost, Due after one through five years | 141 | |
Amortized cost, Due after five through ten years | 6 | |
Amortized cost, Due after ten years | 19 | |
Debt securities, amortized cost | 309 | 123 |
Estimated fair value, Due in one year or less | 143 | |
Estimated fair value, Due after one through five years | 137 | |
Estimated fair value, Due after five through ten years | 5 | |
Estimated fair value, Due after ten years | 18 | |
Debt securities, estimated fair value | 303 | 123 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 21 | |
Amortized cost, Due after one through five years | 288 | |
Amortized cost, Due after five through ten years | 758 | |
Amortized cost, Due after ten years | 604 | |
Debt securities, amortized cost | 1,671 | 1,607 |
Estimated fair value, Due in one year or less | 21 | |
Estimated fair value, Due after one through five years | 268 | |
Estimated fair value, Due after five through ten years | 669 | |
Estimated fair value, Due after ten years | 521 | |
Debt securities, estimated fair value | 1,479 | 1,649 |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 36 | |
Amortized cost, Due after one through five years | 95 | |
Amortized cost, Due after five through ten years | 71 | |
Amortized cost, Due after ten years | 6 | |
Debt securities, amortized cost | 208 | 228 |
Estimated fair value, Due in one year or less | 36 | |
Estimated fair value, Due after one through five years | 93 | |
Estimated fair value, Due after five through ten years | 60 | |
Estimated fair value, Due after ten years | 5 | |
Debt securities, estimated fair value | 194 | 227 |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 26 | |
Amortized cost, Due after one through five years | 157 | |
Amortized cost, Due after five through ten years | 7 | |
Amortized cost, Due after ten years | 58 | |
Debt securities, amortized cost | 248 | 175 |
Estimated fair value, Due in one year or less | 25 | |
Estimated fair value, Due after one through five years | 151 | |
Estimated fair value, Due after five through ten years | 6 | |
Estimated fair value, Due after ten years | 47 | |
Debt securities, estimated fair value | 229 | 177 |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 55 | |
Amortized cost, Due after one through five years | 687 | |
Amortized cost, Due after five through ten years | 199 | |
Amortized cost, Due after ten years | 63 | |
Debt securities, amortized cost | 1,004 | 1,071 |
Estimated fair value, Due in one year or less | 54 | |
Estimated fair value, Due after one through five years | 629 | |
Estimated fair value, Due after five through ten years | 186 | |
Estimated fair value, Due after ten years | 52 | |
Debt securities, estimated fair value | 921 | 1,081 |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 20 | |
Amortized cost, Due after one through five years | 300 | |
Amortized cost, Due after five through ten years | 116 | |
Amortized cost, Due after ten years | 41 | |
Debt securities, amortized cost | 477 | 493 |
Estimated fair value, Due in one year or less | 20 | |
Estimated fair value, Due after one through five years | 280 | |
Estimated fair value, Due after five through ten years | 107 | |
Estimated fair value, Due after ten years | 36 | |
Debt securities, estimated fair value | 443 | $ 498 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 301 | |
Amortized cost, Due after one through five years | 1,668 | |
Amortized cost, Due after five through ten years | 1,157 | |
Amortized cost, Due after ten years | 791 | |
Debt securities, amortized cost | 3,917 | |
Estimated fair value, Due in one year or less | 299 | |
Estimated fair value, Due after one through five years | 1,558 | |
Estimated fair value, Due after five through ten years | 1,033 | |
Estimated fair value, Due after ten years | 679 | |
Debt securities, estimated fair value | 3,569 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 5,253 | |
Estimated fair value | $ 4,601 |
Debt Securities (Composition of
Debt Securities (Composition of Debt Securities Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 8,170 | $ 9,362 |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 303 | 123 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 1,479 | 1,649 |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 194 | 227 |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 229 | 177 |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 4,601 | 5,607 |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 921 | 1,081 |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 443 | $ 498 |
Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 7,377 | |
Percentage of debt securities by credit rating agencies | 90.30% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 622 | |
Percentage of debt securities by credit rating agencies | 7.60% | |
Investment Grade | U.S. Treasury bonds | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 303 | |
Percentage of debt securities by credit rating agencies | 100% | |
Investment Grade | U.S. Treasury bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Investment Grade | Municipal bonds | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,432 | |
Percentage of debt securities by credit rating agencies | 96.80% | |
Investment Grade | Municipal bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 47 | |
Percentage of debt securities by credit rating agencies | 3.20% | |
Investment Grade | Foreign government bonds | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 190 | |
Percentage of debt securities by credit rating agencies | 98% | |
Investment Grade | Foreign government bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2 | |
Percentage of debt securities by credit rating agencies | 1% | |
Investment Grade | Governmental agency bonds | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 229 | |
Percentage of debt securities by credit rating agencies | 100% | |
Investment Grade | Governmental agency bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Investment Grade | Governmental agency mortgage-backed securities | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 4,601 | |
Percentage of debt securities by credit rating agencies | 100% | |
Investment Grade | Governmental agency mortgage-backed securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Investment Grade | U.S. corporate debt securities | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 429 | |
Percentage of debt securities by credit rating agencies | 46.60% | |
Investment Grade | U.S. corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 362 | |
Percentage of debt securities by credit rating agencies | 39.30% | |
Investment Grade | Foreign corporate debt securities | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 193 | |
Percentage of debt securities by credit rating agencies | 43.60% | |
Investment Grade | Foreign corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 211 | |
Percentage of debt securities by credit rating agencies | 47.60% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 171 | |
Percentage of debt securities by credit rating agencies | 2.10% | |
Non-Investment Grade | U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Non-Investment Grade | Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Non-Investment Grade | Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2 | |
Percentage of debt securities by credit rating agencies | 1% | |
Non-Investment Grade | Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Non-Investment Grade | Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0% | |
Non-Investment Grade | U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 130 | |
Percentage of debt securities by credit rating agencies | 14.10% | |
Non-Investment Grade | Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 39 | |
Percentage of debt securities by credit rating agencies | 8.80% |
Debt Securities (Debt Securitie
Debt Securities (Debt Securities Investment Portfolio) (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 8,170 | $ 9,362 |
Bank Loans | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 126 | |
High Yield Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 44 | |
Emerging Market Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 54 | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 171 | |
Non-Investment Grade | Bank Loans | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | 121 | |
Non-Investment Grade | Emerging Market Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 6 |
Debt Securities (Composition _2
Debt Securities (Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,646 | $ 5,772 |
Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 6,953 | |
Percentage of debt securities in unrealized loss position | 90.90% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 541 | |
Percentage of debt securities in unrealized loss position | 7.10% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 152 | |
Percentage of debt securities in unrealized loss position | 2% | |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 158 | 76 |
U.S. Treasury bonds | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 158 | |
Percentage of debt securities in unrealized loss position | 100% | |
U.S. Treasury bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
U.S. Treasury bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,353 | 684 |
Municipal bonds | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,315 | |
Percentage of debt securities in unrealized loss position | 97.20% | |
Municipal bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 38 | |
Percentage of debt securities in unrealized loss position | 2.80% | |
Municipal bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 188 | 136 |
Foreign government bonds | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 184 | |
Percentage of debt securities in unrealized loss position | 97.90% | |
Foreign government bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1 | |
Percentage of debt securities in unrealized loss position | 0.50% | |
Foreign government bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 3 | |
Percentage of debt securities in unrealized loss position | 1.60% | |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 229 | 73 |
Governmental agency bonds | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 229 | |
Percentage of debt securities in unrealized loss position | 100% | |
Governmental agency bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
Governmental agency bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 4,487 | 4,036 |
Governmental agency mortgage-backed securities | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 4,487 | |
Percentage of debt securities in unrealized loss position | 100% | |
Governmental agency mortgage-backed securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Governmental agency mortgage-backed securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0% | |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 853 | 533 |
U.S. corporate debt securities | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 411 | |
Percentage of debt securities in unrealized loss position | 48.20% | |
U.S. corporate debt securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 327 | |
Percentage of debt securities in unrealized loss position | 38.30% | |
U.S. corporate debt securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 115 | |
Percentage of debt securities in unrealized loss position | 13.50% | |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 378 | $ 234 |
Foreign corporate debt securities | Investment Grade | A- or higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 169 | |
Percentage of debt securities in unrealized loss position | 44.70% | |
Foreign corporate debt securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 175 | |
Percentage of debt securities in unrealized loss position | 46.30% | |
Foreign corporate debt securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 34 | |
Percentage of debt securities in unrealized loss position | 9% |
Debt Securities (Debt Securit_2
Debt Securities (Debt Securities in Unrealized Loss Position) (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,646 | $ 5,772 |
Bank Loans | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | 107 | |
Emerging Market Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | 53 | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | 152 | |
Non-Investment Grade | Bank Loans | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | 102 | |
Non-Investment Grade | High Yield Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | 44 | |
Non-Investment Grade | Emerging Market Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 6 |
Equity Securities - (Summary of
Equity Securities - (Summary of Investments in Equity Securities, by Classification) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable equity securities | $ 280 | $ 657 |
Non-Marketable Equity Securities | 396 | 441 |
Equity method investments | 78 | 78 |
Equity Securities | $ 754 | $ 1,176 |
Equity Securities - (Summary _2
Equity Securities - (Summary of Investments in Marketable Equity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Equity securities, Cost | $ 339 | $ 435 |
Equity securities, Unrealized gains (losses) | (59) | 222 |
Equity securities, Estimated fair value | 280 | 657 |
Common Stock | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Equity securities, Cost | 324 | 418 |
Equity securities, Unrealized gains (losses) | (55) | 222 |
Equity securities, Estimated fair value | 269 | 640 |
Preferred Stock | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Equity securities, Cost | 15 | 17 |
Equity securities, Unrealized gains (losses) | (4) | 0 |
Equity securities, Estimated fair value | $ 11 | $ 17 |
Equity Securities (Narrative) (
Equity Securities (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | |||
Realized and unrealized net gains on equity securities | $ (263) | $ 184 | |
Net unrealized gains on equity securities | (237) | 172 | |
Non-Marketable Equity Securities | 396 | 441 | |
Cash proceeds from sale of equity securities | 241 | 172 | $ 103 |
Offerpad Inc [Member] | |||
Schedule Of Investments [Line Items] | |||
Net unrealized losses on equity securities | 191 | ||
Net unrealized gains on equity securities | 121 | ||
Non Marketable Equity Securities | |||
Schedule Of Investments [Line Items] | |||
Cost | 307 | 215 | |
Non-Marketable Equity Securities | 396 | 441 | |
Net unrealized losses on equity securities | 153 | ||
Net unrealized gains on equity securities | 16 | $ 210 | |
Recognized impairment charges of investments | 140 | ||
Realized gain on securities | 52 | ||
Cash proceeds from sale of equity securities | $ 63 |
Equity Securities - (Summary _3
Equity Securities - (Summary of Investments in Non Marketable Equity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||
Carrying amount | $ 396 | $ 441 |
Non Marketable Equity Securities | ||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||
Cost | 307 | 215 |
Unrealized gains | 89 | 226 |
Carrying amount | $ 396 | $ 441 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Allowance for Credit Losses on Accounts Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 14 | $ 14 |
Provision for expected credit losses | 11 | 4 |
Write-offs/recoveries | (4) | (4) |
Balance at end of period | $ 21 | $ 14 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 27 | $ 24 |
Buildings | 189 | 185 |
Leasehold improvements | 72 | 70 |
Furniture and equipment | 230 | 215 |
Capitalized software | 1,059 | 884 |
Property and equipment, Gross | 1,577 | 1,378 |
Accumulated depreciation and amortization | (940) | (872) |
Property and equipment, Total | $ 637 | $ 506 |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease assets | $ 248 | $ 249 |
Finance lease assets | $ 3 | $ 2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Total lease assets | $ 251 | $ 251 |
Liabilities | ||
Operating lease liabilities | 269 | 274 |
Finance lease liabilities | $ 3 | $ 3 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Notes and contracts payable | Notes and contracts payable |
Total lease liabilities | $ 272 | $ 277 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost: | |||
Net lease cost | $ 131 | $ 118 | $ 121 |
Other Operating Income (Expense) | |||
Lessee Lease Description [Line Items] | |||
Operating lease cost | 93 | 86 | 89 |
Finance lease cost: | |||
Variable lease cost | 34 | 31 | 32 |
Short-term lease cost | 3 | 2 | 1 |
Depreciation And Amortization | |||
Finance lease cost: | |||
Amortization of lease assets | 2 | 2 | 2 |
Information And Other | |||
Finance lease cost: | |||
Sublease income | $ (1) | $ (3) | $ (3) |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Operating and Finance Lease with Noncancelable Lease Terms (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases Maturities | ||
Operating Leases, 2023 | $ 86 | |
Operating Leases, 2024 | 71 | |
Operating Leases, 2025 | 55 | |
Operating Leases, 2026 | 38 | |
Operating Leases, 2027 | 21 | |
Operating Leases, Thereafter | 17 | |
Operating Leases, Total lease payments | 288 | |
Operating Lease, Interest | (19) | |
Operating Leases, Present value of lease liabilities | 269 | $ 274 |
Finance Leases Maturities | ||
Finance Leases, 2023 | 1 | |
Finance Leases, 2024 | 1 | |
Finance Leases, 2025 | 1 | |
Finance Leases, 2026 | 0 | |
Finance Leases, 2027 | 0 | |
Finance Leases, Thereafter | 0 | |
Finance Leases, Total lease payments | 3 | |
Finance Leases, Interest | 0 | |
Finance Leases, Present value of lease liabilities | 3 | 3 |
Operating and Finance Leases Maturities | ||
Total, 2023 | 87 | |
Total, 2024 | 72 | |
Total, 2025 | 56 | |
Total, 2026 | 38 | |
Total, 2027 | 21 | |
Total, Thereafter | 17 | |
Total lease payments | 291 | |
Total, Interest | 19 | |
Total, Present value of lease liabilities | $ 272 | $ 277 |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Lease Terms and Discount Rate (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease terms (years): | ||
Operating leases | 4 years | 4 years |
Finance leases | 2 years | 2 years |
Weighted-average discount rates: | ||
Operating leases | 3.34% | 3.40% |
Finance leases | 3.23% | 3.96% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Lease Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases | $ 96 | $ 90 | $ 93 |
Cash paid for amounts included in the measurement of lease liabilities, Financing cash flows from finance leases | 2 | 2 | 2 |
Operating lease assets obtained in exchange for new operating lease liabilities | 66 | 59 | 54 |
Finance lease assets obtained in exchange for new finance lease liabilities | $ 3 | $ 0 | $ 1 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Reportable Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 1,588 | $ 1,379 |
Acquisitions | 217 | 209 |
Transfers | 0 | |
Foreign currency translation | (7) | |
Accumulated impairment losses Ending Balance | (34) | |
Goodwill, Ending Balance | 1,798 | 1,588 |
Title Insurance and Services | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,575 | 1,366 |
Acquisitions | 217 | 209 |
Transfers | (28) | |
Foreign currency translation | (7) | |
Accumulated impairment losses Ending Balance | 0 | |
Goodwill, Ending Balance | 1,757 | 1,575 |
Specialty Insurance | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 13 | 13 |
Acquisitions | 0 | 0 |
Transfers | 28 | |
Foreign currency translation | 0 | |
Accumulated impairment losses Ending Balance | (34) | |
Goodwill, Ending Balance | $ 41 | $ 13 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 191 | $ 203 |
Noncompete agreements | 34 | 49 |
Trademarks | 70 | 32 |
Internal-use software licenses | 24 | 21 |
Patents | 3 | 3 |
Finite-lived intangible assets, gross | 177 | 201 |
Accumulated amortization | (145) | (107) |
Finite-lived intangible assets, net | 322 | 308 |
Licenses | 17 | 17 |
Other intangibles assets, net | $ 194 | $ 218 |
Other Intangible Assets - Narra
Other Intangible Assets - Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense | $ 54 | $ 51 | $ 43 |
Other Intangible Assets - Estim
Other Intangible Assets - Estimated Amortization Expense for Finite-Lived Intangible Assets (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2023 | $ 46 |
2024 | 33 |
2025 | 26 |
2026 | 26 |
2027 | $ 11 |
Deposits (Escrow, Mortgage Subs
Deposits (Escrow, Mortgage Subserving, and Other Deposits) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Banking And Thrifts [Abstract] | |||
Interest bearing | $ 2,542 | $ 2,792 | |
Non-interest bearing | 2,077 | 2,083 | |
Escrow accounts | 4,619 | 4,875 | |
Interest bearing | 713 | 0 | |
Business checking and other deposits (1) | [1] | 188 | 194 |
Deposits, Total | $ 5,520 | $ 5,069 | |
Weighted average interest rate, Interest bearing deposit accounts | 0.50% | 0.10% | |
[1] Accounts are primarily non-interest bearing. |
Reserve for Known and Incurre_3
Reserve for Known and Incurred but Not Reported Claims (Activity in Reserve for Known and Incurred but Not Reported Claims) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance at beginning of year | $ 1,284 | $ 1,178 | $ 1,063 |
Provision related to current year | 468 | 570 | 532 |
Provision related to prior years | 18 | 19 | 48 |
Total Provision | 486 | 589 | 580 |
Payments, net of recoveries, related to: Current year | 227 | 292 | 268 |
Payments, net of recoveries, related to: Prior years | 207 | 190 | 203 |
Total Payments, net of recoveries | 434 | 482 | 471 |
Other | (11) | (1) | 6 |
Balance at end of year | $ 1,325 | $ 1,284 | $ 1,178 |
Reserve for Known and Incurre_4
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments, net of recoveries, related to: Current year | $ 227 | $ 292 | $ 268 |
Payments, net of recoveries, related to: Prior years | $ 207 | $ 190 | $ 203 |
Provision for title loss, percentage of title premiums and escrow fees | 4% | 4% | 5% |
Ultimate loss rate | 4% | 4% | 4.50% |
Estimated percentage increase in loss reserve for prior policy years | 0.50% | ||
Estimated increase in loss reserve for prior policy years | $ 0 | $ 0 | $ 26 |
Reserve for Known and Incurre_5
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||||
Known title claims, amount | $ 62 | $ 67 | ||
IBNR title claims, amount | 1,207 | 1,143 | ||
Total title claims, amount | 1,269 | 1,210 | ||
Non-title claims, amount | 56 | 74 | ||
Total loss reserves, amount | $ 1,325 | $ 1,284 | $ 1,178 | $ 1,063 |
Known title claims, percent | 4.70% | 5.20% | ||
IBNR title claims, percent | 91.10% | 89% | ||
Total title claims, percent | 95.80% | 94.20% | ||
Non-title claims, percent | 4.20% | 5.80% | ||
Total loss reserves | 100% | 100% |
Reserve for Known and Incurre_6
Reserve for Known and Incurred but Not Reported Claims - Summary of Incurred and Paid Claims Development Net of Reinsurance (Detail) Claim in Millions, $ in Millions | Dec. 31, 2022 USD ($) Claim | Dec. 31, 2021 USD ($) | [1] | Dec. 31, 2020 USD ($) | [1] | Dec. 31, 2019 USD ($) | [1] | Dec. 31, 2018 USD ($) | [1] | Dec. 31, 2017 USD ($) | [1] | Dec. 31, 2016 USD ($) | [1] | Dec. 31, 2015 USD ($) | [1] | Dec. 31, 2014 USD ($) | [1] | Dec. 31, 2013 USD ($) | [1] |
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 1,712 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | 1,693 | ||||||||||||||||||
All outstanding liabilities before 2013 | 0 | ||||||||||||||||||
Liabilities for claims and claims adjustment expenses | 56 | ||||||||||||||||||
Home warranty | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Liabilities for claims and claims adjustment expenses | 19 | ||||||||||||||||||
Accident Year 2013 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | $ 124 | |||||||||
Cumulative number of reported claims | Claim | 0.7 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 124 | 124 | 124 | 124 | 124 | 124 | 124 | 124 | 124 | $ 111 | |||||||||
Accident Year 2014 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 124 | 124 | 124 | 124 | 124 | 124 | 124 | 124 | 124 | ||||||||||
Cumulative number of reported claims | Claim | 0.8 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 124 | 124 | 124 | 124 | 124 | 124 | 124 | 124 | $ 111 | ||||||||||
Accident Year 2015 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 144 | 144 | 144 | 144 | 144 | 144 | 144 | 144 | |||||||||||
Cumulative number of reported claims | Claim | 0.9 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 144 | 144 | 144 | 144 | 144 | 144 | 144 | $ 129 | |||||||||||
Accident Year 2016 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 173 | 173 | 173 | 173 | 173 | 173 | 173 | ||||||||||||
Cumulative number of reported claims | Claim | 1 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 173 | 173 | 173 | 173 | 173 | 173 | $ 155 | ||||||||||||
Accident Year 2017 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 167 | 167 | 167 | 167 | 167 | 167 | |||||||||||||
Cumulative number of reported claims | Claim | 1 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 167 | 167 | 167 | 167 | 167 | $ 151 | |||||||||||||
Accident Year 2018 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 180 | 180 | 180 | 180 | 180 | ||||||||||||||
Cumulative number of reported claims | Claim | 1.1 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 180 | 180 | 180 | 180 | $ 163 | ||||||||||||||
Accident Year 2019 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 174 | 174 | 174 | 174 | |||||||||||||||
Cumulative number of reported claims | Claim | 1.1 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 174 | 174 | 174 | $ 159 | |||||||||||||||
Accident Year 2020 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 197 | 197 | 197 | ||||||||||||||||
Cumulative number of reported claims | Claim | 1.2 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 197 | 197 | $ 178 | ||||||||||||||||
Accident Year 2021 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 218 | 218 | |||||||||||||||||
Cumulative number of reported claims | Claim | 1.2 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 218 | $ 199 | |||||||||||||||||
Accident Year 2022 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses | $ 211 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 1.1 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses | $ 192 | ||||||||||||||||||
[1] Amounts unaudited. |
Reserve for Known and Incurre_7
Reserve for Known and Incurred but Not Reported Claims - Reconciliation of the Net Incurred and Paid Claims Development Tables to the Liability for Claims and Claim Adjustment Expense (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Claims Development [Line Items] | ||||
Liability for unpaid claims and claim adjustment expenses - short-duration | $ 56 | |||
Title insurance | 1,269 | $ 1,210 | ||
Total loss reserves, amount | 1,325 | $ 1,284 | $ 1,178 | $ 1,063 |
Property and casualty insurance | ||||
Claims Development [Line Items] | ||||
Liability for unpaid claims and claim adjustment expenses - short-duration | 37 | |||
Home warranty | ||||
Claims Development [Line Items] | ||||
Liability for unpaid claims and claim adjustment expenses - short-duration | $ 19 |
Reserve for Known and Incurre_8
Reserve for Known and Incurred but Not Reported Claims - Schedule of Supplementary Information about Average Historical Claims (Detail) | Dec. 31, 2022 |
Short-Duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |
Average annual percentage payout of incurred claims by age, Year 1 | 90.30% |
Average annual percentage payout of incurred claims by age, Year 2 | 9.70% |
Average annual percentage payout of incurred claims by age, Year 3 | 0% |
Average annual percentage payout of incurred claims by age, Year 4 | 0% |
Average annual percentage payout of incurred claims by age, Year 5 | 0% |
Average annual percentage payout of incurred claims by age, Year 6 | 0% |
Average annual percentage payout of incurred claims by age, Year 7 | 0% |
Average annual percentage payout of incurred claims by age, Year 8 | 0% |
Average annual percentage payout of incurred claims by age, Year 9 | 0% |
Average annual percentage payout of incurred claims by age, Year 10 | 0% |
Notes and Contracts Payable (Sc
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $36 and $37 at December 31, 2022 and 2021, respectively, fixed interest rate of 5.26% | $ 4 | $ 8 |
Other notes and contracts payable with maturities through 2027, weighted-average interest rates of 3.30% and 4.21% at December 31, 2022 and 2021, respectively | 4 | 4 |
Debt And Capital Lease Obligations Before Discounts Premiums Debt Issuance Costs | 1,658 | 1,662 |
Unamortized discounts and debt issuance costs | (12) | (14) |
Notes and contracts payable net of unamortized discount and debt issuance costs | 1,646 | 1,648 |
2.40% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | 650 | 650 |
4.00% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | 450 | 450 |
4.60% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | 300 | 300 |
4.30% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | $ 250 | $ 250 |
Notes and Contracts Payable (_2
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Senior Notes | 2.40% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | Aug. 15, 2031 | |
Effective interest rate | 2.44% | |
Senior Notes | 4.00% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | May 15, 2030 | |
Effective interest rate | 4.05% | |
Senior Notes | 4.60% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | Nov. 15, 2024 | |
Effective interest rate | 4.60% | |
Senior Notes | 4.30% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | Feb. 01, 2023 | |
Effective interest rate | 4.35% | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Maturity year | Nov. 01, 2023 | |
Collateral value | $ 36 | $ 37 |
Fixed interest rate | 5.26% | |
Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Other notes and contracts payable maturities in year | 2027 | |
Weighted-average interest rate | 3.30% | 4.21% |
Notes and Contracts Payable (Na
Notes and Contracts Payable (Narrative) (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 01, 2023 | Apr. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Line Of Credit Facility Maximum Increase In Revolving Credit Expansion Option | $ 350 | |||
Long-term Line of Credit | $ 0 | |||
Revolving loans, interest rate description | At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) until LIBOR is discontinued, the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the credit agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc., Standard & Poor’s Rating Services and/or Fitch Ratings Inc. The minimum applicable spread for Alternate Base Rate borrowings is 0.25% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.25% and the maximum is 2.00%. The rate of interest on any term loans incurred in connection with the expansion option will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. | |||
Line of Credit Facility, Covenant Compliance | The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of December 31, 2022, the Company was in compliance with the financial covenants under the credit agreement. | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||
Unsecured Debt | JPMorgan Chase Bank, N.A | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700 | |||
Line of Credit Facility, Expiration Date | Apr. 30, 2024 | |||
2.40% unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes | $ 650 | $ 650 | ||
2.40% unsecured notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 4.30% | |||
Debt repaid | $ 250 |
Notes and Contracts Payable (Ag
Notes and Contracts Payable (Aggregate Annual Maturities of Notes and Contracts Payable) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Maturities of Long-term Debt [Abstract] | ||
2023 | $ 256 | |
2024 | 301 | |
2025 | 1 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 1,100 | |
Debt And Capital Lease Obligations Before Discounts Premiums Debt Issuance Costs | $ 1,658 | $ 1,662 |
Net Investment Income (Schedule
Net Investment Income (Schedule of Net Investment Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||
Total investment income | $ 343 | $ 218 | $ 225 |
Deposits and other investments | 135 | 47 | 69 |
Deferred compensation plan assets | (25) | 19 | 13 |
Equity in earnings of affiliates, net | 11 | 7 | 6 |
Other | 7 | 1 | 0 |
Investment expenses | (3) | (3) | (4) |
Net investment income | 340 | 215 | 221 |
Debt Securities | |||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||
Total investment income | 206 | 133 | 126 |
Equity Securities | |||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||
Total investment income | $ 9 | $ 11 | $ 11 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Income (loss) before noncontrolling interests, Domestic | $ 268 | $ 1,500 | $ 850 | |
Income (loss) before noncontrolling interests, Foreign | $ 58 | $ 93 | $ 73 | |
Federal income tax rates | 21% | 21% | 21% | |
Effective income tax rates | 18.70% | 23.90% | 24.10% | |
Payroll taxes | $ 0 | $ 5 | ||
Tax benefits recorded | 2 | 2 | $ 4 | |
Foreign tax credit carryover net of valuation allowance | 4 | |||
Operating loss carryforwards, amount | 196 | |||
Operating loss carryforwards, indefinite expiration, amount | 107 | |||
Deferred tax asset valuation allowance | 7 | 8 | ||
Liability for income taxes associated with uncertain tax positions | 3 | 8 | 7 | $ 1 |
Offsetting tax benefits related to uncertain tax positions | 2 | 3 | 2 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | 0 | 0 | |
Unrecognized tax positions increase decrease, months | It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. | |||
Deferred Tax Assets Valuation Allowances On Net Operating Loss Carryforwards | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax asset valuation allowance | $ 6 | 7 | ||
Deferred Tax Assets Valuation Allowances On Other Deferred Tax Assets | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax asset valuation allowance | 1 | $ 1 | ||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 85 | |||
State and Local Jurisdiction | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 86 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | $ 25 | |||
Coronavirus Aid Relief And Economic Security Act | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred payroll taxes remittance payment period description | The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was signed into law in 2020, allowed employers to defer payment of a portion of payroll taxes otherwise due on wages paid between the enactment date and December 31, 2020 and remit the deferred payroll taxes on December 31, 2021 and December 31, 2022. | |||
Deferred payroll taxes | 49 | |||
Payroll taxes | $ 0 | $ 12 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 132 | $ 244 | $ 191 |
Current State | 19 | 37 | 27 |
Current foreign | 18 | 20 | 12 |
Current Income Tax Expense (Benefit), Total | 169 | 301 | 230 |
Deferred Federal | (80) | 65 | (18) |
Deferred State | (25) | 24 | 1 |
Deferred Foreign | (3) | 3 | 10 |
Deferred Income Tax Expense (Benefit), Total | (108) | 92 | (7) |
Income tax | $ 61 | $ 393 | $ 223 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Taxes calculated at federal rate | $ 68 | $ 345 | $ 194 |
State taxes, net of federal benefit | (5) | 48 | 22 |
Change in liability for tax positions | (1) | 0 | 0 |
Foreign income taxed at different rates | 2 | 1 | 5 |
Unremitted foreign earnings | 0 | 1 | (2) |
Other items, net | (3) | (2) | 4 |
Income tax | $ 61 | $ 393 | $ 223 |
Federal income tax rates | 21% | 21% | 21% |
State taxes, net of federal benefit | (1.50%) | 2.90% | 2.40% |
Change in liability for tax positions | (0.30%) | 0% | 0% |
Foreign income taxed at different rates | 0.60% | 0.10% | 0.60% |
Unremitted foreign earnings | 0% | 0.10% | (0.20%) |
Other items, net | (1.10%) | (0.20%) | 0.30% |
Income tax | 18.70% | 23.90% | 24.10% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred revenue | $ 8 | $ 11 |
Employee benefits | 97 | 102 |
Bad debt reserves | 12 | 7 |
Pension | 13 | 30 |
Net operating loss carryforward | 29 | 10 |
Foreign tax credit | 5 | 4 |
Operating lease liabilities | 59 | 58 |
Payroll taxes | 0 | 5 |
Securities | 264 | 0 |
Other | 10 | 6 |
Deferred tax assets before valuation allowance | 497 | 233 |
Valuation allowance | (7) | (8) |
Deferred tax assets | 490 | 225 |
Depreciable and amortizable assets | 282 | 274 |
Claims and related salvage | 82 | 89 |
Investments in affiliates | 26 | 63 |
Securities | 0 | 65 |
Operating lease assets | 53 | 52 |
Unremitted foreign earnings | 12 | 13 |
Deferred tax liabilities | 455 | 556 |
Net deferred tax asset | $ 35 | |
Net deferred tax liability | $ 331 |
Income Taxes - Changes In Unrec
Income Taxes - Changes In Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits—beginning balance | $ 8 | $ 7 | $ 1 |
Gross increases—prior period tax positions | 0 | 0 | 5 |
Gross increases—current period tax positions | 1 | 1 | 1 |
Settlements with taxing authorities | (6) | 0 | 0 |
Unrecognized tax benefits—ending balance | $ 3 | $ 8 | $ 7 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Earnings Per Share [Abstract] | ||||
Net income attributable to the Company | $ 263 | $ 1,241 | $ 696 | |
Basic weighted-average common shares | 107 | 111 | 112.7 | |
Effect of dilutive RSUs | 0.3 | 0.4 | 0.3 | |
Diluted weighted-average common shares | 107.3 | 111.4 | 113 | |
Basic | [1] | $ 2.46 | $ 11.18 | $ 6.18 |
Diluted | [1] | $ 2.45 | $ 11.14 | $ 6.16 |
[1] Net income per share may not recalculate due to rounding. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the weighted-average diluted common shares outstanding | 19 | 203 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred compensation arrangements [Abstract] | ||
Deferred compensation plan, maximum deferral percentage | 100% | |
Assets held-in-trust | $ 110 | $ 134 |
Unfunded liabilities | $ 136 | $ 153 |
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Executive and management supplemental benefit plans compensation period | 5 years | |
Savings Plan | ||
Deferred compensation arrangements [Abstract] | ||
Common stock, outstanding | 1.6 | 1.7 |
Percentage of plan shares in total shares outstanding | 1.50% | 1.60% |
Unfunded Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Cash contribution to plans during the next 12 months | $ 16 | |
Unfunded Supplemental Benefit Plans | Maximum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 30% | |
Unfunded Supplemental Benefit Plans | Minimum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 15% | |
Defined Benefit Pension And Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Net actuarial loss expected to be amortized from accumulated comprehensive income/loss into net periodic loss in next fiscal year | $ 2 |
Employee Benefit Plans (Princip
Employee Benefit Plans (Principal Components of Employee Benefit Costs) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Employee Benefit Plan Disclosure [Line Items] | ||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 35 | $ 109 | $ 60 | |
Savings Plan | ||||
Employee Benefit Plan Disclosure [Line Items] | ||||
Savings plan | 37 | 74 | 32 | |
Unfunded Supplemental Benefit Plans | ||||
Employee Benefit Plan Disclosure [Line Items] | ||||
Employee benefit plan expenses | 12 | 11 | 9 | |
Other Plans, Net | ||||
Employee Benefit Plan Disclosure [Line Items] | ||||
Other plans, net | [1] | $ (14) | $ 24 | $ 19 |
[1] For the year ended December 31, 2022, participant investments included in the deferred compensation plan realized losses in excess of expenses recorded by the Company. |
Employee Benefit Plans (Company
Employee Benefit Plans (Company's Benefit Obligations and Funded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in projected benefit obligation: | |||
Interest costs | $ 6 | $ 5 | $ 7 |
Unfunded Supplemental Benefit Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 262 | 283 | |
Interest costs | 6 | 5 | |
Actuarial gains | (57) | (11) | |
Benefits paid | (15) | (15) | |
Projected benefit obligation at end of year | 196 | 262 | $ 283 |
Change in plan assets: | |||
Contributions | 15 | 14 | |
Benefits paid | (15) | (14) | |
Fair value of plan assets at end of year | 0 | 0 | |
Reconciliation of funded status, Unfunded status of the plans | 196 | 262 | |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | 196 | 262 | |
Unrecognized net actuarial loss | 48 | 111 | |
Amounts recognized in accumulated other comprehensive income/loss | 48 | 111 | |
Accumulated benefit obligation at end of year | $ 196 | $ 262 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest costs | $ 6 | $ 5 | $ 7 |
Amortization of net actuarial loss | 6 | 7 | 5 |
Amortization of prior service credit | 0 | (1) | (3) |
Net periodic costs | $ 12 | $ 11 | $ 9 |
Employee Benefit Plans (The Wei
Employee Benefit Plans (The Weighted-Average Discount Rate Assumptions Used to Determine Net Periodic Benefit Costs) (Detail) - Unfunded Supplemental Benefit Plans | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discount rates: | |||
Projected benefit obligation | 2.89% | 2.49% | 3.27% |
Service cost | 3.29% | 3.14% | 3.71% |
Interest cost | 2.37% | 1.83% | 2.86% |
Employee Benefit Plans (The W_2
Employee Benefit Plans (The Weighted-Average Discount Rate Assumptions Used to Determine the Projected Benefit Obligations) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Unfunded Supplemental Benefit Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Defined benefit pension plans, Discount rate | 5.56% | 2.89% |
Employee Benefit Plans (Benefit
Employee Benefit Plans (Benefit Payments) (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 16 |
2024 | 17 |
2025 | 17 |
2026 | 17 |
2027 | 16 |
Five years thereafter | $ 77 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | $ 8,170 | $ 9,362 | |
Equity securities, estimated fair value | 280 | 657 | |
Mortgage loans held for sale | 16 | 12 | |
Debt and Equity securities, estimated fair value | 8,466 | 10,031 | |
U.S. Treasury bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 303 | 123 | |
Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 1,479 | 1,649 | |
Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 194 | 227 | |
Governmental agency bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 229 | 177 | |
Governmental agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 4,601 | 5,607 | |
U.S. corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 921 | 1,081 | |
Foreign corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 443 | 498 | |
Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 11 | 17 | |
Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 269 | 640 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Equity securities, estimated fair value | 280 | 657 | |
Mortgage loans held for sale | 0 | 0 | |
Debt and Equity securities, estimated fair value | 280 | 657 | |
Level 1 | U.S. Treasury bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Governmental agency bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Governmental agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | U.S. corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Foreign corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 1 | Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 11 | 17 | |
Level 1 | Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 269 | 640 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 8,170 | 9,362 | |
Equity securities, estimated fair value | 0 | 0 | |
Mortgage loans held for sale | 14 | 11 | |
Debt and Equity securities, estimated fair value | 8,184 | 9,373 | |
Level 2 | U.S. Treasury bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 303 | 123 | |
Level 2 | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 1,479 | 1,649 | |
Level 2 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 194 | 227 | |
Level 2 | Governmental agency bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 229 | 177 | |
Level 2 | Governmental agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 4,601 | 5,607 | |
Level 2 | U.S. corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 921 | 1,081 | |
Level 2 | Foreign corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 443 | 498 | |
Level 2 | Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 0 | 0 | |
Level 2 | Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Equity securities, estimated fair value | 0 | $ 0 | |
Mortgage loans held for sale | 2 | 1 | |
Debt and Equity securities, estimated fair value | 2 | $ 1 | |
Level 3 | U.S. Treasury bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Governmental agency bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Governmental agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | U.S. corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Foreign corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Debt securities, estimated fair value | 0 | 0 | |
Level 3 | Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | 0 | 0 | |
Level 3 | Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Equity securities, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets, Level 1 to Level 2 transfers amount | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | 0 | 0 |
Fair Value Assets Level 1 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 1 Transfers Amount | 0 | 0 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 2 Transfers Amount | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,224 | $ 1,228 |
Deposits with banks | 63 | 58 |
Notes receivable, net | 11 | 32 |
Secured financings receivable | 423 | 565 |
Liabilities: | ||
Secured financings payable | 366 | 529 |
Notes and contracts payable | 1,646 | 1,648 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,224 | 1,228 |
Deposits with banks | 62 | 58 |
Notes receivable, net | 11 | 32 |
Secured financings receivable | 423 | 565 |
Liabilities: | ||
Secured financings payable | 366 | 529 |
Notes and contracts payable | 1,405 | 1,724 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,224 | 1,228 |
Deposits with banks | 8 | 13 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 54 | 45 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 423 | 565 |
Liabilities: | ||
Secured financings payable | 366 | 529 |
Notes and contracts payable | 1,401 | 1,720 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 11 | 32 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | $ 4 | $ 4 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs and PRSUs | $ 29 | ||
Incentive Compensation Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Incentive Compensation Plan, termination period, in years | 10 years | ||
Common stock that will be made available for sale, in shares | 1.6 | ||
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee stock purchase plan percentage of purchase price on closing price | 85% | 85% | |
Shares issued Employee Stock Purchase Plan | 0.6 | 0.5 | 0.5 |
Common stock that will be made available for sale, in shares | 5 | ||
Share-based compensation arrangement, term of plan | Jul. 01, 2023 | ||
Shares reserved for future issuances | 9 | ||
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total fair value of shares distributed | $ 57 | $ 49 | $ 56 |
Shares vested but not distributed | 1.2 | ||
RSUs and PRSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs and PRSUs that is expected to be recognized over a weighted-average period, Years | 2 years | ||
Weighted average grant-date fair value | $ 67.65 | $ 56.65 | $ 63.14 |
Amended Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock that will be made available for sale, in shares | 14 | ||
Share-based compensation arrangement, term of plan | Jul. 01, 2032 |
Share-Based Compensation (Costs
Share-Based Compensation (Costs Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 67 | $ 54 | $ 52 |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 58 | 48 | 47 |
PRSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 3 | 0 | 0 |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 6 | $ 6 | $ 5 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU and PSRU Activity) (Detail) - RSUs - RSUs and PRSUs shares in Millions | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested at December 31, 2021 | shares | 0.9 |
Granted during 2022 | shares | 1 |
Vested during 2022 | shares | (1) |
Unvested at December 31, 2022 | shares | 0.9 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested at December 31, 2021 | $ / shares | $ 58.11 |
Granted during 2022 | $ / shares | 67.65 |
Vested during 2022 | $ / shares | 63.47 |
Unvested at December 31, 2022 | $ / shares | $ 63.01 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) shares in Millions, $ in Millions | 12 Months Ended | 26 Months Ended |
Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) shares | |
Equity [Abstract] | ||
Remaining authorized amount under stock repurchase program | $ 287 | $ 287 |
Common stock repurchased, shares | shares | 7.5 | 10.4 |
Purchase of Company, value | $ 441 | $ 598 |
Maximum | ||
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 400 | $ 400 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | $ (92) | ||
Tax effect | 249 | $ 42 | $ (21) |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | (868) | (92) | |
Unrealized Gains (Losses) on Debt Securities Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), debt securities, available-for-sale, adjustment, after tax, Beginning Balance | 29 | 172 | 84 |
Change in unrealized gains (losses) on debt securities | (1,045) | (189) | 116 |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 1 | ||
Tax effect | 264 | 46 | (29) |
Accumulated other comprehensive income (loss), debt securities, available-for-sale, adjustment, after tax, Ending Balance | 752 | 29 | 172 |
Foreign Currency Translation Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Beginning Balance | (39) | (38) | (52) |
Change in foreign currency translation adjustment | (43) | (2) | 14 |
Tax effect | 1 | 1 | |
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Ending Balance | (81) | (39) | (38) |
Pension Benefit Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Beginning Balance | (82) | (94) | (73) |
Net actuarial (loss) gain | 57 | 11 | (31) |
Amortization of net actuarial loss | 6 | 7 | 5 |
Amortization of prior service credit | (1) | (3) | |
Tax effect | (16) | (5) | 8 |
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Ending Balance | (35) | (82) | (94) |
Accumulated Other Comprehensive Income/(loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | (92) | (40) | 41 |
Change in unrealized gains (losses) on debt securities | (1,045) | (189) | 116 |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 1 | ||
Change in foreign currency translation adjustment | (43) | (2) | 14 |
Net actuarial (loss) gain | 57 | 11 | (31) |
Amortization of net actuarial loss | 6 | 7 | 5 |
Amortization of prior service credit | (1) | (3) | |
Tax effect | 249 | 42 | (21) |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | $ (868) | $ (92) | $ (40) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) Reclassification Adjustments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | $ (1,168) | $ (160) | $ 108 |
Reclassifications out of AOCI | 143 | (14) | (6) |
Tax effect | 249 | 42 | (21) |
Total other comprehensive (loss) income, net of tax | (776) | (132) | 81 |
Unrealized Gains (Losses) on Debt Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | (1,182) | (169) | 125 |
Reclassifications out of AOCI | 137 | (20) | (8) |
Tax effect | 264 | 46 | (29) |
Total other comprehensive (loss) income, net of tax | (781) | (143) | 88 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | (43) | (2) | 14 |
Reclassifications out of AOCI | 0 | 0 | 0 |
Tax effect | 1 | 1 | 0 |
Total other comprehensive (loss) income, net of tax | (42) | (1) | 14 |
Pension Benefit Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 57 | 11 | (31) |
Reclassifications out of AOCI | 6 | 6 | 2 |
Tax effect | (16) | (5) | 8 |
Total other comprehensive (loss) income, net of tax | $ 47 | $ 12 | $ (21) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax total | $ (143) | $ 14 | $ 6 | |
Unrealized Gains (Losses) on Debt Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized (losses) gains on sales of debt securities | (137) | 20 | 15 | |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | (7) | |||
Pretax total | (137) | 20 | 8 | |
Tax effect | 35 | (5) | (2) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax total | [1] | (6) | (6) | (2) |
Tax effect | [1] | 2 | 2 | 1 |
Amortization of net actuarial loss | [1] | $ (6) | (7) | (5) |
Amortization of prior service credit | [1] | $ 1 | $ 3 | |
[1] Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details. |
Business Combinations (Narrativ
Business Combinations (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Business acquisition cost | $ 311 | ||
Fair value estimates for goodwill | 217 | $ 209 | |
California-based Acquisition | |||
Business Acquisition [Line Items] | |||
Business acquisition cost | $ 300 | ||
Fair value estimates for goodwill | 203 | ||
Fair value estimates for other intangible assets | 34 | ||
Fair value estimates for title plant | $ 29 | ||
Revenues | 110 | ||
Pre-tax income | $ 12 |
Segment Financial Information_2
Segment Financial Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 7,605 | $ 9,221 | $ 7,086 |
Depreciation and amortization | 167 | 158 | 149 |
Income (loss) before income taxes | 326 | 1,642 | 923 |
Assets | 14,955 | 16,451 | 12,796 |
Capital expenditures | 275 | 172 | 121 |
Direct premiums and escrow fees | 3,085 | 3,598 | 2,988 |
Agent premiums | 3,548 | 3,757 | 2,759 |
Information and other | 1,148 | 1,215 | 1,013 |
Net investment income | 340 | 215 | 221 |
Net investment (losses) gains | (516) | 436 | 105 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,605 | 9,221 | 7,086 |
Direct premiums and escrow fees | 3,085 | 3,598 | 2,988 |
Agent premiums | 3,548 | 3,757 | 2,759 |
Information and other | 1,148 | 1,215 | 1,013 |
Net investment income | 340 | 215 | 221 |
Net investment (losses) gains | 516 | 436 | 105 |
Operating Segments | Title Insurance and Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,547 | 8,320 | 6,535 |
Depreciation and amortization | 162 | 152 | 141 |
Income (loss) before income taxes | 758 | 1,358 | 1,026 |
Assets | 13,911 | 15,058 | 11,922 |
Capital expenditures | 271 | 168 | 117 |
Direct premiums and escrow fees | 2,663 | 3,100 | 2,490 |
Agent premiums | 3,548 | 3,757 | 2,759 |
Information and other | 1,127 | 1,203 | 1,001 |
Net investment income | 359 | 188 | 199 |
Net investment (losses) gains | 150 | 72 | 86 |
Operating Segments | Specialty Insurance | |||
Segment Reporting Information [Line Items] | |||
Revenues | 437 | 541 | 532 |
Depreciation and amortization | 5 | 6 | 8 |
Income (loss) before income taxes | 27 | 36 | (25) |
Assets | 461 | 557 | 645 |
Capital expenditures | 4 | 4 | 4 |
Direct premiums and escrow fees | 422 | 498 | 498 |
Agent premiums | 0 | 0 | 0 |
Information and other | 22 | 13 | 13 |
Net investment income | 6 | 7 | 9 |
Net investment (losses) gains | 13 | 23 | 12 |
Operating Segments | Corporate and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (379) | 360 | 19 |
Depreciation and amortization | 0 | 0 | 0 |
Income (loss) before income taxes | (459) | 248 | (78) |
Assets | 583 | 836 | 229 |
Capital expenditures | 0 | 0 | 0 |
Direct premiums and escrow fees | 0 | 0 | 0 |
Agent premiums | 0 | 0 | 0 |
Information and other | (1) | (1) | (1) |
Net investment income | (25) | 20 | 13 |
Net investment (losses) gains | $ (353) | $ 341 | $ 7 |
Segment Financial Information_3
Segment Financial Information (Schedule of Total Revenues From External Customers And Long-Lived Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues from external customers | $ 7,605 | $ 9,221 | $ 7,086 |
Domestic | Title Insurance and Services | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues from external customers | 7,131 | 7,872 | 6,193 |
Long-lived assets | 1,001 | 945 | 957 |
Foreign | Title Insurance and Services | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues from external customers | 416 | 448 | 342 |
Long-lived assets | $ 51 | $ 51 | $ 60 |
Schedule I - Summary Of Investm
Schedule I - Summary Of Investments - Other Than Investments In Related Parties (Detail) $ in Millions | Dec. 31, 2022 USD ($) | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | $ 9,968 | |
Market value | 8,997 | |
Amount at which shown in the balance sheet | 8,998 | |
Short-term Investments | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 63 | |
Market value | 62 | |
Amount at which shown in the balance sheet | 63 | |
U.S. Treasury bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 309 | |
Market value | 303 | |
Amount at which shown in the balance sheet | 303 | |
Municipal bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 1,671 | |
Market value | 1,479 | |
Amount at which shown in the balance sheet | 1,479 | |
Foreign government bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 208 | |
Market value | 194 | |
Amount at which shown in the balance sheet | 194 | |
Governmental agency bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 248 | |
Market value | 229 | |
Amount at which shown in the balance sheet | 229 | |
Governmental agency mortgage-backed securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 5,253 | |
Market value | 4,601 | |
Amount at which shown in the balance sheet | 4,601 | |
U.S. corporate debt securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 1,004 | |
Market value | 921 | |
Amount at which shown in the balance sheet | 921 | |
Foreign corporate debt securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 477 | |
Market value | 443 | |
Amount at which shown in the balance sheet | 443 | |
Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 9,170 | |
Market value | 8,170 | |
Amount at which shown in the balance sheet | 8,170 | |
Equity Securities, Investment Summary | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 724 | |
Market value | 754 | [1] |
Amount at which shown in the balance sheet | 754 | |
Notes Receivable | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 11 | |
Market value | 11 | |
Amount at which shown in the balance sheet | $ 11 | |
[1] Included in equity securities are non-marketable equity securities and equity method investments. Estimates of fair value for these investments could not be made without incurring excessive costs. |
Schedule II - Condensed Balance
Schedule II - Condensed Balance Sheets Parent Company (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 1,224 | $ 1,228 | ||
Income taxes receivable | 22 | 11 | ||
Equity securities | 754 | 1,176 | ||
Deferred income taxes | 54 | 14 | ||
Other assets | 361 | 448 | ||
Total assets | 14,955 | 16,451 | $ 12,796 | |
LIABILITIES AND EQUITY | ||||
Accounts payable and other accrued liabilities | 915 | 1,262 | ||
Pension costs and other retirement plans | 381 | 494 | ||
Income taxes payable | 10 | 24 | ||
Deferred income taxes | 19 | 345 | ||
Notes and contracts payable | 1,646 | 1,648 | ||
Total liabilities | 10,267 | 10,668 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.00001 par value; Authorized—0.5 shares; Outstanding—none | 0 | 0 | ||
Common stock, $0.00001 par value; Authorized - 300.0 shares; Outstanding - 103.2 shares and 109.7 shares | 0 | 0 | ||
Additional paid-in capital | 1,812 | 2,179 | ||
Retained earnings | 3,721 | 3,680 | ||
Accumulated other comprehensive loss | (868) | (92) | ||
Total stockholders’ equity | 4,665 | 5,767 | ||
Noncontrolling interests | 23 | 16 | ||
Total equity | 4,688 | 5,783 | $ 4,922 | $ 4,425 |
Total liabilities and equity | 14,955 | 16,451 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 597 | 925 | ||
Due from subsidiaries, net | 10 | 79 | ||
Income taxes receivable | 22 | 11 | ||
Investment in subsidiaries | 5,908 | 6,862 | ||
Equity securities | 15 | 206 | ||
Deferred income taxes | 54 | 14 | ||
Other assets | 118 | 137 | ||
Total assets | 6,724 | 8,234 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other accrued liabilities | 36 | 30 | ||
Pension costs and other retirement plans | 333 | 416 | ||
Income taxes payable | 10 | 24 | ||
Deferred income taxes | 19 | 345 | ||
Notes and contracts payable | 1,638 | 1,636 | ||
Total liabilities | 2,036 | 2,451 | ||
Commitments and contingencies | 0 | 0 | ||
Stockholders’ equity: | ||||
Preferred stock, $0.00001 par value; Authorized—0.5 shares; Outstanding—none | 0 | 0 | ||
Common stock, $0.00001 par value; Authorized - 300.0 shares; Outstanding - 103.2 shares and 109.7 shares | 0 | 0 | ||
Additional paid-in capital | 1,812 | 2,179 | ||
Retained earnings | 3,721 | 3,680 | ||
Accumulated other comprehensive loss | (868) | (92) | ||
Total stockholders’ equity | 4,665 | 5,767 | ||
Noncontrolling interests | 23 | 16 | ||
Total equity | 4,688 | 5,783 | ||
Total liabilities and equity | $ 6,724 | $ 8,234 |
Schedule II - Condensed Balan_2
Schedule II - Condensed Balance Sheets Parent Company (Parenthetical) (Detail) - $ / shares shares in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 0.5 | 0.5 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300 | 300 |
Common stock, shares outstanding | 103.2 | 109.7 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 0.5 | 0.5 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300 | 300 |
Common stock, shares outstanding | 103.2 | 109.7 |
Schedule II - Condensed Stateme
Schedule II - Condensed Statements of Income Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Net investment (losses) gains | $ (516) | $ 436 | $ 105 |
Total revenues | 7,605 | 9,221 | 7,086 |
Expenses: | |||
Income taxes | 61 | 393 | 223 |
Net income | 265 | 1,249 | 700 |
Less: Net income attributable to noncontrolling interests | 2 | 8 | 4 |
Net income attributable to the Company | 263 | 1,241 | 696 |
Parent Company | |||
Revenues: | |||
Dividends from subsidiaries | 733 | 622 | 604 |
Other (losses) income | (23) | 19 | 14 |
Net investment (losses) gains | (192) | 121 | 7 |
Total revenues | 518 | 762 | 625 |
Expenses: | |||
Other expenses | 55 | 84 | 69 |
Income before income taxes and equity in undistributed earnings of subsidiaries | 463 | 678 | 556 |
Income taxes | 86 | 162 | 134 |
Equity in undistributed (losses) earnings of subsidiaries | (112) | 733 | 278 |
Net income | 265 | 1,249 | 700 |
Less: Net income attributable to noncontrolling interests | 2 | 8 | 4 |
Net income attributable to the Company | $ 263 | $ 1,241 | $ 696 |
Schedule II - Condensed State_2
Schedule II - Condensed Statements of Comprehensive Income Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statement Of Income Captions [Line Items] | |||
Net income | $ 265 | $ 1,249 | $ 700 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (losses) gains on securities | (781) | (143) | 88 |
Foreign currency translation adjustment | (42) | (1) | 14 |
Pension benefit adjustment | 47 | 12 | (21) |
Total other comprehensive (loss) income, net of tax | (776) | (132) | 81 |
Comprehensive (loss) income | (511) | 1,117 | 781 |
Less: Comprehensive income attributable to noncontrolling interests | 2 | 8 | 4 |
Comprehensive income attributable to the Company | (513) | 1,109 | 777 |
Parent Company | |||
Condensed Statement Of Income Captions [Line Items] | |||
Net income | 265 | 1,249 | 700 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (losses) gains on securities | (781) | (143) | 88 |
Foreign currency translation adjustment | (42) | (1) | 14 |
Pension benefit adjustment | 47 | 12 | (21) |
Total other comprehensive (loss) income, net of tax | (776) | (132) | 81 |
Comprehensive (loss) income | (511) | 1,117 | 781 |
Less: Comprehensive income attributable to noncontrolling interests | 2 | 8 | 4 |
Comprehensive income attributable to the Company | $ (513) | $ 1,109 | $ 777 |
Schedule II - Condensed State_3
Schedule II - Condensed Statements of Cash Flows Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Cash provided by operating activities | $ 780 | $ 1,220 | $ 1,085 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Net cash effect of acquisitions/dispositions | (278) | (187) | (393) | |
Purchases of equity securities | (157) | (198) | (194) | |
Proceeds from sales of property and equipment | 7 | 18 | 14 | |
Cash used for investing activities | (395) | (3,393) | (1,415) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from issuance of unsecured senior notes | 0 | 642 | 444 | |
Borrowings under unsecured credit facility | 0 | 0 | 120 | |
Repayments of borrowings under unsecured credit facility | 0 | 0 | 280 | |
Net proceeds (payments) in connection with share-based compensation | 2 | 6 | (1) | |
Repurchases of Company shares | 441 | 99 | 139 | |
Payments of cash dividends | 217 | 213 | 199 | |
Cash (used for) provided by financing activities | (376) | 2,126 | 113 | |
Net (decrease) increase in cash and cash equivalents | (4) | (47) | (211) | |
Cash and cash equivalents—Beginning of year | 1,228 | 1,275 | 1,486 | |
Cash and cash equivalents—End of year | 1,224 | 1,228 | 1,275 | $ 1,486 |
Parent Company | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Cash provided by operating activities | 779 | 641 | 600 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Net cash effect of acquisitions/dispositions | (296) | 0 | 0 | |
Net payments to subsidiaries | (155) | (259) | (668) | |
Purchases of equity securities | 0 | 0 | (19) | |
Proceeds from sales of property and equipment | 0 | 0 | 7 | |
Cash used for investing activities | (259) | (680) | (451) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from issuance of unsecured senior notes | 0 | 642 | 444 | |
Borrowings under unsecured credit facility | 0 | 0 | 120 | |
Repayments of borrowings under unsecured credit facility | 0 | 0 | (280) | |
Net proceeds (payments) in connection with share-based compensation | 2 | 6 | (1) | |
Repurchases of Company shares | (441) | (99) | (139) | |
Payments of cash dividends | (217) | (213) | (199) | |
Cash (used for) provided by financing activities | (656) | 336 | (55) | |
Net (decrease) increase in cash and cash equivalents | 718 | (135) | (328) | |
Cash and cash equivalents—Beginning of year | 925 | 207 | 342 | |
Cash and cash equivalents—End of year | $ 597 | $ 925 | $ 207 | $ 342 |
Schedule II - Notes to Condense
Schedule II - Notes to Condensed Financial Statements Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |||
Cash dividends received from subsidiaries | $ 731 | $ 624 | $ 574 |
Schedule III - Balance Sheet Ca
Schedule III - Balance Sheet Captions (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | $ 20 | $ 24 |
Claims reserves | 1,325 | 1,284 |
Deferred revenues | 197 | 224 |
Title Insurance and Services | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 0 | 0 |
Claims reserves | 1,269 | 1,210 |
Deferred revenues | 7 | 6 |
Specialty Insurance | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 20 | 24 |
Claims reserves | 56 | 74 |
Deferred revenues | $ 190 | $ 218 |
Schedule III - Income Statement
Schedule III - Income Statement Captions (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | $ 6,633 | $ 7,355 | $ 5,747 | |
Net investment income (1) | [1] | 176 | 651 | 326 |
Loss provision | 486 | 589 | 580 | |
Amortization of deferred policy acquisition costs (credits) | 4 | 11 | (2) | |
Other operating expenses | 1,272 | 1,323 | 1,119 | |
Premiums written | 394 | 450 | 520 | |
Operating Segments | Title Insurance and Services | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 6,211 | 6,857 | 5,249 | |
Net investment income (1) | [1] | 209 | 260 | 285 |
Loss provision | 248 | 275 | 263 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | 1,155 | 1,198 | 1,000 | |
Premiums written | 0 | 0 | 0 | |
Operating Segments | Specialty Insurance | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 422 | 498 | 498 | |
Net investment income (1) | [1] | 7 | 30 | 21 |
Loss provision | 238 | 314 | 317 | |
Amortization of deferred policy acquisition costs (credits) | 4 | 11 | (2) | |
Other operating expenses | 82 | 89 | 83 | |
Premiums written | 394 | 450 | 520 | |
Operating Segments | Corporate and Eliminations | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 0 | 0 | 0 | |
Net investment income (1) | [1] | (378) | 361 | 20 |
Loss provision | 0 | 0 | 0 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | 35 | 36 | 36 | |
Premiums written | $ 0 | $ 0 | $ 0 | |
[1] Includes net investment income and net investment gains (losses). |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Title Insurance and Services | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $ 6,229 | $ 6,879 | $ 5,265 |
Ceded to other companies | 19 | 22 | 16 |
Assumed from other companies | 1 | 0 | 0 |
Premiums and escrow fees | $ 6,211 | $ 6,857 | $ 5,249 |
Percentage of amount assumed to premiums and escrow fees | 0% | 0% | 0% |
Specialty Insurance | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $ 423 | $ 504 | $ 508 |
Ceded to other companies | 1 | 6 | 10 |
Assumed from other companies | 0 | 0 | 0 |
Premiums and escrow fees | $ 422 | $ 498 | $ 498 |
Percentage of amount assumed to premiums and escrow fees | 0% | 0% | 0% |
Schedule V - Valuation And Qual
Schedule V - Valuation And Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Reserve Deducted From Accounts Receivable | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | $ 14 | $ 14 | $ 13 | ||
Additions Charged to costs and expenses | 11 | 4 | 7 | ||
Additions Charged to other accounts | 0 | 0 | 0 | ||
Deductions from reserve | 4 | [1] | 4 | 6 | |
Balance at end of period | 21 | 14 | 14 | ||
Reserve For Known And Incurred But Not Reported Claims | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 1,284 | 1,178 | 1,063 | ||
Additions Charged to costs and expenses | 486 | 589 | 580 | ||
Additions Charged to other accounts | (11) | (1) | 6 | ||
Deductions from reserve | [2] | 434 | 482 | 471 | |
Balance at end of period | 1,325 | 1,284 | 1,178 | ||
Reserve deducted from notes receivable | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 0 | ||||
Additions Charged to costs and expenses | 28 | ||||
Additions Charged to other accounts | 0 | ||||
Deductions from reserve | 21 | ||||
Balance at end of period | 7 | 0 | |||
Reserve Deducted From Deferred Income Taxes | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 8 | 9 | 10 | ||
Additions Charged to costs and expenses | 0 | 0 | 0 | ||
Additions Charged to other accounts | 0 | 0 | 0 | ||
Deductions from reserve | 1 | 1 | 1 | ||
Balance at end of period | $ 7 | $ 8 | $ 9 | ||
[1] Amount represents accounts written off, net of recoveries. Amount represents claim payments, net of recoveries. |