Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 14, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FAF | |
Entity Registrant Name | First American Financial Corp | |
Entity Central Index Key | 1,472,787 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 109,820,934 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 1,443,312 | $ 1,027,321 |
Accounts and accrued income receivable, net | 327,109 | 256,731 |
Income taxes receivable | 2,740 | 1,067 |
Investments: | ||
Deposits with banks | 22,257 | 23,224 |
Debt securities, includes pledged securities of $117,294 and $122,441 | 4,592,170 | 4,279,347 |
Equity securities | 387,921 | 321,285 |
Other investments | 157,260 | 161,177 |
Investments, Total | 5,159,608 | 4,785,033 |
Property and equipment, net | 430,631 | 409,973 |
Title plants and other indexes | 588,593 | 554,923 |
Deferred income taxes | 22,020 | 22,020 |
Goodwill | 1,014,764 | 964,342 |
Other intangible assets, net | 51,417 | 48,114 |
Other assets | 206,283 | 180,777 |
Total assets | 9,246,477 | 8,250,301 |
Liabilities and Equity | ||
Deposits | 3,218,128 | 2,699,015 |
Accounts payable and accrued liabilities | 813,943 | 876,087 |
Deferred revenue | 230,747 | 207,929 |
Reserve for known and incurred but not reported claims | 1,018,040 | 983,880 |
Income taxes payable | 66,025 | 7,576 |
Deferred income taxes | 133,097 | 133,097 |
Notes and contracts payable | 737,944 | 581,052 |
Total liabilities | 6,217,924 | 5,488,636 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none | ||
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—109,820 shares and 109,098 shares | 1 | 1 |
Additional paid-in capital | 2,182,879 | 2,150,813 |
Retained earnings | 1,012,452 | 846,691 |
Accumulated other comprehensive loss | (173,052) | (239,003) |
Total stockholders’ equity | 3,022,280 | 2,758,502 |
Noncontrolling interests | 6,273 | 3,163 |
Total equity | 3,028,553 | 2,761,665 |
Total liabilities and equity | $ 9,246,477 | $ 8,250,301 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Pledged securities included in debt securities | $ 117,294 | $ 122,441 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 109,820,000 | 109,098,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Direct premiums and escrow fees | $ 649,726 | $ 605,450 | $ 1,775,615 | $ 1,716,468 |
Agent premiums | 625,953 | 585,974 | 1,653,990 | 1,520,507 |
Information and other | 188,727 | 173,349 | 526,575 | 511,334 |
Net investment income | 34,422 | 22,272 | 92,717 | 70,694 |
Net realized investment gains (losses) | 9,516 | (3,130) | 22,692 | (215) |
Total revenues | 1,508,344 | 1,383,915 | 4,071,589 | 3,818,788 |
Expenses | ||||
Personnel costs | 438,692 | 411,743 | 1,239,129 | 1,185,318 |
Premiums retained by agents | 495,130 | 462,535 | 1,303,838 | 1,200,549 |
Other operating expenses | 219,959 | 209,316 | 622,995 | 621,298 |
Provision for policy losses and other claims | 137,015 | 139,126 | 366,473 | 363,550 |
Depreciation and amortization | 24,491 | 21,072 | 70,905 | 63,389 |
Premium taxes | 18,288 | 17,439 | 48,692 | 46,920 |
Interest | 7,838 | 7,288 | 23,427 | 21,798 |
Total expenses | 1,341,413 | 1,268,519 | 3,675,459 | 3,502,822 |
Income before income taxes | 166,931 | 115,396 | 396,130 | 315,966 |
Income taxes | 59,539 | 39,637 | 133,615 | 108,831 |
Net income | 107,392 | 75,759 | 262,515 | 207,135 |
Less: Net income attributable to noncontrolling interests | 72 | 217 | 545 | 615 |
Net income attributable to the Company | $ 107,320 | $ 75,542 | $ 261,970 | $ 206,520 |
Net income per share attributable to the Company's stockholders (Note 9): | ||||
Basic | $ 0.97 | $ 0.69 | $ 2.37 | $ 1.91 |
Diluted | 0.96 | 0.69 | 2.36 | 1.88 |
Cash dividends declared per share | $ 0.34 | $ 0.25 | $ 0.86 | $ 0.75 |
Weighted-average common shares outstanding (Note 9): | ||||
Basic | 110,571 | 108,647 | 110,423 | 108,284 |
Diluted | 111,251 | 110,004 | 111,006 | 109,706 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 107,392 | $ 75,759 | $ 262,515 | $ 207,135 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on securities | 2,579 | (10,942) | 52,087 | (19,374) |
Foreign currency translation adjustment | (3,459) | (15,416) | 3,066 | (29,210) |
Pension benefit adjustment | 3,602 | 4,058 | 10,819 | 13,260 |
Total other comprehensive income (loss), net of tax | 2,722 | (22,300) | 65,972 | (35,324) |
Comprehensive income | 110,114 | 53,459 | 328,487 | 171,811 |
Less: Comprehensive income attributable to noncontrolling interests | 77 | 206 | 566 | 598 |
Comprehensive income attributable to the Company | $ 110,037 | $ 53,253 | $ 327,921 | $ 171,213 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total stockholders' equity | Noncontrolling Interests |
Balance value at Dec. 31, 2015 | $ 2,761,665 | $ 1 | $ 2,150,813 | $ 846,691 | $ (239,003) | $ 2,758,502 | $ 3,163 |
Balance shares at Dec. 31, 2015 | 109,098 | 109,098 | |||||
Net income for nine months ended September 30, 2016 | $ 262,515 | $ 0 | 0 | 261,970 | 0 | 261,970 | 545 |
Dividends on common shares | (94,202) | 0 | 0 | (94,202) | 0 | (94,202) | 0 |
Purchase of Company shares, value | (454) | $ 0 | (454) | 0 | 0 | (454) | 0 |
Purchase of Company shares, shares | (14) | ||||||
Shares issued in connection with share-based compensation plans, value | 2,443 | $ 0 | 4,450 | (2,007) | 0 | 2,443 | 0 |
Shares issued in connection with share-based compensation plans, shares | 736 | ||||||
Share-based compensation | 28,096 | $ 0 | 28,096 | 0 | 0 | 28,096 | 0 |
Net activity related to noncontrolling interests | 2,518 | 0 | (26) | 0 | 0 | (26) | 2,544 |
Other comprehensive income (Note 13) | 65,972 | 0 | 0 | 0 | 65,951 | 65,951 | 21 |
Balance value at Sep. 30, 2016 | $ 3,028,553 | $ 1 | $ 2,182,879 | $ 1,012,452 | $ (173,052) | $ 3,022,280 | $ 6,273 |
Balance shares at Sep. 30, 2016 | 109,820 | 109,820 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 262,515 | $ 207,135 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for policy losses and other claims | 366,473 | 363,550 |
Depreciation and amortization | 70,905 | 63,389 |
Amortization of premiums and accretion of discounts on debt securities, net | 20,267 | 21,702 |
Excess tax benefits from share-based compensation | (3,197) | (8,496) |
Net realized investment (gains) losses | (22,692) | 215 |
Share-based compensation | 28,096 | 20,261 |
Equity in earnings of affiliates, net | (5,771) | (7,710) |
Dividends from equity method investments | 7,953 | 7,559 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ||
Claims paid, including assets acquired, net of recoveries | (351,349) | (364,255) |
Net change in income tax accounts | 20,765 | 56,784 |
Increase in accounts and accrued income receivable | (43,454) | (32,194) |
Decrease in accounts payable and accrued liabilities | (99,777) | (7,074) |
Increase in deferred revenue | 23,342 | 12,049 |
Other, net | (21,857) | 19,282 |
Cash provided by operating activities | 252,219 | 352,197 |
Cash flows from investing activities: | ||
Net cash effect of acquisitions/dispositions | (73,173) | (26,662) |
Net decrease in deposits with banks | 608 | 2,471 |
Purchases of debt and equity securities | (1,490,824) | (1,726,939) |
Proceeds from sales of debt and equity securities | 494,717 | 443,276 |
Proceeds from maturities of debt securities | 744,411 | 531,440 |
Net change in other investments | 2,798 | 470 |
Capital expenditures | (103,735) | (91,964) |
Proceeds from sales of property and equipment | 9,218 | 17,057 |
Cash used for investing activities | (415,980) | (850,851) |
Cash flows from financing activities: | ||
Net change in deposits | 519,113 | 288,495 |
Net proceeds from issuance of debt | 160,000 | |
Repayment of debt | (3,745) | (4,087) |
Net activity related to noncontrolling interests | (1,004) | (705) |
Excess tax benefits from share-based compensation | 3,197 | 8,496 |
Net payments in connection with share-based compensation plans | (754) | (1,534) |
Purchase of Company shares | (454) | |
Cash dividends | (94,202) | (81,283) |
Cash provided by financing activities | 582,151 | 209,382 |
Effect of exchange rate changes on cash | (2,399) | (6,378) |
Net increase (decrease) in cash and cash equivalents | 415,991 | (295,650) |
Cash and cash equivalents—Beginning of period | 1,027,321 | 1,190,080 |
Cash and cash equivalents—End of period | 1,443,312 | 894,430 |
Supplemental information: | ||
Interest | 21,097 | 21,166 |
Premium taxes | 54,151 | 45,683 |
Income taxes, less refunds of $2,731 and $711 | $ 112,401 | $ 52,069 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Cash Flows [Abstract] | ||
Income taxes, refunds | $ 2,731 | $ 711 |
Basis of Condensed Consolidated
Basis of Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Condensed Consolidated Financial Statements | Note 1 – Basis of Condensed Consolidated Financial Statements Basis of Presentation The condensed consolidated financial information included in this report has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the consolidated results for the interim periods. All material intercompany transactions and balances have been eliminated upon consolidation. Reclassifications and revisions Certain 2015 amounts have been reclassified to conform to the 2016 presentation. During the fourth quarter of 2015, the Company reclassified certain revenues and expenses related to closing protection letters and temporary labor costs. The impact to the Company’s title insurance and services segment for the three and nine months ended September 30, 2015 included decreases to direct premiums and escrow fees and increases to agent premiums of $9.5 million and $24.6 million, increases to personnel costs of $10.6 million and $29.0 million, increases to premiums retained by agents of $0.5 million and $1.2 million and decreases to other operating expenses of $11.1 million and $30.2 million, respectively. The impact to the Company’s specialty insurance segment for the three and nine months ended September 30, 2015 included increases to personnel costs and decreases to other operating expenses of $0.2 million and $0.7 million, respectively. Also, during the fourth quarter of 2015, the Company identified certain non-risk based revenues included within direct premiums and escrow fees that should have been reflected in information and other. To correct for this error, these revenues were reclassified from direct premiums and escrow fees to information and other. The revision to the Company’s title insurance and services segment for the three and nine months ended September 30, 2015 resulted in a decrease to direct premiums and escrow fees and an increase to information and other of $10.7 million and $31.5 million, respectively. The Company does not consider these adjustments to be material, individually or in the aggregate, to any previously issued consolidated financial statements. Recently Adopted Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance intended to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminates the requirement to retrospectively account for those adjustments. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015 and applies prospectively to adjustments made to provisional amounts that occur after the effective date of this guidance with early adoption permitted for financial statements that have not been issued. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. In August 2015, the FASB issued updated guidance relating to the Securities and Exchange Commission Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. The updated guidance allows for the deferral and presentation of debt issuance costs as an asset which may be amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any related outstanding borrowings. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. In May 2015, the FASB issued updated guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. In April 2015, the FASB issued updated guidance intended to clarify the accounting treatment for cloud computing arrangements that include software licenses. Under the updated guidance, if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company elected to adopt the updated guidance prospectively for all arrangements entered into or materially modified after the effective date. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. The financial statement line items impacted by the adoption of the updated guidance include other intangible assets, net and depreciation and amortization. See Note 5 Other Intangible Assets for further information on the Company’s internal-use software licenses. In April 2015, the FASB issued updated guidance intended to simplify, and provide consistency to, the presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In February 2015, the FASB issued updated guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. Pending Accounting Pronouncements In August 2016, the FASB issued updated guidance intended to eliminate the diversity in practice regarding the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated statement of cash flows. In June 2016, the FASB issued updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. In May 2016, the FASB issued updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In April 2016, the FASB issued updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance is intended to reduce the cost and complexity of applying the guidance on identifying promised goods or services in a contract and to improve the operability and understandability of the implementation guidance regarding the licensing of intellectual property. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In March 2016, the FASB issued updated guidance intended to simplify and improve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of such awards as either equity or liabilities and classification on the statement of cash flows. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. In March 2016, the FASB issued updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance is intended to improve the operability and understandability of the implementation guidance regarding principal versus agent considerations in a contract. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In March 2016, the FASB issued updated guidance intended to simplify the accounting treatment for investments that become qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its condensed consolidated financial statements. In February 2016, the FASB issued updated guidance that requires the rights and obligations associated with leasing arrangements be reflected on the balance sheet in order to increase transparency and comparability among organizations. Under the updated guidance, lessees will be required to recognize a right-of-use asset and a liability to make lease payments and disclose key information about leasing arrangements. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. In January 2016, the FASB issued updated guidance intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. In addition to making other targeted improvements to current guidance, the updated guidance also requires all equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in the fair value recognized through net income. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted in certain circumstances. While the Company expects the adoption of this guidance to impact its condensed consolidated statements of income, the materiality of the impact will depend upon the size of, and level of volatility experienced within, the Company’s equity portfolio. In May 2015, the FASB issued updated disclosure guidance related to short-duration contracts issued by insurance entities. The updated guidance is intended to increase the transparency of significant estimates made in measuring liabilities for unpaid claims and claim adjustment expenses and to provide additional insight into an insurance entity’s ability to underwrite and anticipate costs associated with claims. The updated guidance is effective for annual reporting periods beginning after December 15, 2015 and for interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to impact its condensed consolidated financial statements. In May 2014, the FASB issued updated guidance for recognizing revenue from contracts with customers to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within and across industries, and across capital markets. The new revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of recognition. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. Revenue from insurance contracts is not within the scope of this guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. In August 2015, the FASB issued updated guidance which defers the effective date of this guidance by one year to interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. |
Escrow Deposits, Like-Kind Exch
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | Note 2 – Escrow Deposits, Like-kind Exchange Deposits and Trust Assets The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $7.5 billion and $6.6 billion at September 30, 2016 and December 31, 2015, respectively, of which $3.1 billion and $2.6 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying condensed consolidated balance sheets. The remaining escrow deposits were held at third-party financial institutions. Trust assets held or managed by First American Trust, FSB totaled $3.2 billion and $3.0 billion at September 30, 2016 and December 31, 2015, 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 condensed consolidated balance sheets. However, 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 in the condensed consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. 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 held by the Company totaled $2.2 billion and $2.8 billion at September 30, 2016 and December 31, 2015, 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 condensed 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. |
Debt and Equity Securities
Debt and Equity Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Debt and Equity Securities | Note 3 – Debt and Equity Securities Investments in debt securities, classified as available-for-sale, are as follows: (in thousands) Amortized Gross unrealized Estimated Gains Losses September 30, 2016 U.S. Treasury bonds $ 148,808 $ 2,089 $ (463 ) $ 150,434 Municipal bonds 906,895 19,565 (2,223 ) 924,237 Foreign government bonds 143,853 1,847 (342 ) 145,358 Governmental agency bonds 192,430 2,870 (123 ) 195,177 Governmental agency mortgage-backed securities 2,229,651 12,309 (6,163 ) 2,235,797 U.S. corporate debt securities 674,651 17,722 (1,635 ) 690,738 Foreign corporate debt securities 245,227 5,665 (463 ) 250,429 $ 4,541,515 $ 62,067 $ (11,412 ) $ 4,592,170 December 31, 2015 U.S. Treasury bonds $ 130,252 $ 421 $ (1,301 ) $ 129,372 Municipal bonds 692,000 12,640 (845 ) 703,795 Foreign government bonds 129,984 1,132 (1,015 ) 130,101 Governmental agency bonds 419,869 1,023 (2,801 ) 418,091 Governmental agency mortgage-backed securities 2,065,728 4,984 (15,039 ) 2,055,673 U.S. corporate debt securities 642,869 4,297 (12,483 ) 634,683 Foreign corporate debt securities 210,162 1,248 (3,778 ) 207,632 $ 4,290,864 $ 25,745 $ (37,262 ) $ 4,279,347 Investments in equity securities, classified as available-for-sale, are as follows: Cost Gross unrealized Estimated (in thousands) Gains Losses September 30, 2016 Preferred stocks $ 19,311 $ — $ (4,092 ) $ 15,219 Common stocks 351,841 24,742 (3,881 ) 372,702 $ 371,152 $ 24,742 $ (7,973 ) $ 387,921 December 31, 2015 Preferred stocks $ 18,305 $ 420 $ (3,258 ) $ 15,467 Common stocks 307,429 13,103 (14,714 ) 305,818 $ 325,734 $ 13,523 $ (17,972 ) $ 321,285 Sales of debt and equity securities resulted in realized gains of $8.9 million and $1.3 million and realized losses of $0.2 million and $1.6 million for the three months ended September 30, 2016 and 2015, respectively, and realized gains of $22.1 million and $6.5 million and realized losses of $7.2 million and $8.2 million for the nine months ended September 30, 2016 and 2015, respectively. Gross unrealized losses on investments in debt and equity securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2016 Debt securities: U.S. Treasury bonds $ 55,705 $ (463 ) $ — $ — $ 55,705 $ (463 ) Municipal bonds 223,714 (1,941 ) 16,401 (282 ) 240,115 (2,223 ) Foreign government bonds 32,714 (313 ) 363 (29 ) 33,077 (342 ) Governmental agency bonds 5,706 (123 ) — — 5,706 (123 ) Governmental agency mortgage-backed 749,900 (2,654 ) 339,896 (3,509 ) 1,089,796 (6,163 ) U.S. corporate debt securities 50,855 (634 ) 30,740 (1,001 ) 81,595 (1,635 ) Foreign corporate debt securities 21,121 (181 ) 9,990 (282 ) 31,111 (463 ) Total debt securities 1,139,715 (6,309 ) 397,390 (5,103 ) 1,537,105 (11,412 ) Equity securities 7,716 (74 ) 76,717 (7,899 ) 84,433 (7,973 ) Total $ 1,147,431 $ (6,383 ) $ 474,107 $ (13,002 ) $ 1,621,538 $ (19,385 ) December 31, 2015 Debt securities: U.S. Treasury bonds $ 105,701 $ (1,285 ) $ 1,654 $ (16 ) $ 107,355 $ (1,301 ) Municipal bonds 133,465 (733 ) 13,190 (112 ) 146,655 (845 ) Foreign government bonds 13,601 (890 ) 267 (125 ) 13,868 (1,015 ) Governmental agency bonds 191,035 (2,497 ) 18,237 (304 ) 209,272 (2,801 ) Governmental agency mortgage-backed 1,096,301 (9,424 ) 213,020 (5,615 ) 1,309,321 (15,039 ) U.S. corporate debt securities 361,842 (11,272 ) 13,511 (1,211 ) 375,353 (12,483 ) Foreign corporate debt securities 102,801 (2,725 ) 11,246 (1,053 ) 114,047 (3,778 ) Total debt securities 2,004,746 (28,826 ) 271,125 (8,436 ) 2,275,871 (37,262 ) Equity securities 191,248 (12,068 ) 31,974 (5,904 ) 223,222 (17,972 ) Total $ 2,195,994 $ (40,894 ) $ 303,099 $ (14,340 ) $ 2,499,093 $ (55,234 ) Investments in debt securities at September 30, 2016, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 35,270 $ 68,799 $ 16,147 $ 28,592 $ 148,808 Estimated fair value $ 35,293 $ 69,127 $ 16,660 $ 29,354 $ 150,434 Municipal bonds Amortized cost $ 47,544 $ 331,550 $ 214,529 $ 313,272 $ 906,895 Estimated fair value $ 47,615 $ 337,258 $ 221,613 $ 317,751 $ 924,237 Foreign government bonds Amortized cost $ 4,447 $ 107,304 $ 11,240 $ 20,862 $ 143,853 Estimated fair value $ 4,482 $ 108,323 $ 11,702 $ 20,851 $ 145,358 Governmental agency bonds Amortized cost $ 20,771 $ 82,989 $ 47,203 $ 41,467 $ 192,430 Estimated fair value $ 20,781 $ 83,238 $ 47,561 $ 43,597 $ 195,177 U.S. corporate debt securities Amortized cost $ 15,513 $ 318,116 $ 274,598 $ 66,424 $ 674,651 Estimated fair value $ 15,578 $ 324,386 $ 281,216 $ 69,558 $ 690,738 Foreign corporate debt securities Amortized cost $ 9,521 $ 114,704 $ 110,180 $ 10,822 $ 245,227 Estimated fair value $ 9,532 $ 116,436 $ 112,776 $ 11,685 $ 250,429 Total debt securities excluding mortgage-backed securities Amortized cost $ 133,066 $ 1,023,462 $ 673,897 $ 481,439 $ 2,311,864 Estimated fair value $ 133,281 $ 1,038,768 $ 691,528 $ 492,796 $ 2,356,373 Total mortgage-backed securities Amortized cost $ 2,229,651 Estimated fair value $ 2,235,797 Total debt securities Amortized cost $ 4,541,515 Estimated fair value $ 4,592,170 Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity because borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties. The composition of the investment portfolio at September 30, 2016, by credit rating, is as follows: A- Ratings or higher BBB+ to BBB- Ratings Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage September 30, 2016 Debt securities: U.S. Treasury bonds $ 150,434 100.0 $ — — $ — — $ 150,434 100.0 Municipal bonds 879,726 95.2 35,861 3.8 8,650 1.0 924,237 100.0 Foreign government bonds 121,153 83.4 22,003 15.1 2,202 1.5 145,358 100.0 Governmental agency bonds 195,177 100.0 — — — — 195,177 100.0 Governmental agency mortgage- 2,235,797 100.0 — — — — 2,235,797 100.0 U.S. corporate debt securities 237,952 34.5 222,588 32.2 230,198 33.3 690,738 100.0 Foreign corporate debt securities 114,882 45.9 87,352 34.9 48,195 19.2 250,429 100.0 Total debt securities 3,935,121 85.7 367,804 8.0 289,245 6.3 4,592,170 100.0 Preferred stocks — — 8,987 59.1 6,232 40.9 15,219 100.0 Total $ 3,935,121 85.4 $ 376,791 8.2 $ 295,477 6.4 $ 4,607,389 100.0 As of September 30, 2016, the estimated fair value of total debt securities included $153.3 million of bank loans, of which $141.8 million was non-investment grade; $128.1 million of high yield corporate debt securities, all of which was non-investment grade; and $68.8 million of emerging market debt securities, of which $10.7 million was non-investment grade. The composition of the investment portfolio in an unrealized loss position at September 30, 2016, by credit rating, is as follows: A- Ratings or higher BBB+ to BBB- Ratings Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage September 30, 2016 Debt securities: U.S. Treasury bonds $ 55,705 100.0 $ — — $ — — $ 55,705 100.0 Municipal bonds 233,406 97.2 5,332 2.2 1,377 0.6 240,115 100.0 Foreign government bonds 19,904 60.1 12,197 36.9 976 3.0 33,077 100.0 Governmental agency bonds 5,706 100.0 — — — — 5,706 100.0 Governmental agency mortgage- 1,089,796 100.0 — — — — 1,089,796 100.0 U.S. corporate debt securities 7,342 9.0 29,664 36.4 44,589 54.6 81,595 100.0 Foreign corporate debt securities 3,004 9.7 15,461 49.7 12,646 40.6 31,111 100.0 Total debt securities 1,414,863 92.0 62,654 4.1 59,588 3.9 1,537,105 100.0 Preferred stocks — — 8,987 59.1 6,232 40.9 15,219 100.0 Total $ 1,414,863 91.2 $ 71,641 4.6 $ 65,820 4.2 $ 1,552,324 100.0 As of September 30, 2016, the estimated fair value of total debt securities in an unrealized loss position included $18.1 million of bank loans, of which $18.0 million was non-investment grade; $36.3 million of high yield corporate debt securities, all of which was non-investment grade; and $17.6 million of emerging market debt securities, of which $3.9 million was non-investment grade. The credit ratings in the above tables reflect published ratings obtained from Standard & Poor’s Rating Services, DBRS, Inc., Fitch Ratings, Inc. and Moody’s Investor Services, Inc. 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- Ratings or higher category because the payments of principal and interest are guaranteed by the governmental agency that issued the security. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4 – Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2016, is as follows: (in thousands) Title Specialty Total Balance as of December 31, 2015 $ 917,577 $ 46,765 $ 964,342 Acquisitions 49,570 — 49,570 Foreign currency translation 1,146 — 1,146 Other adjustments (294 ) — (294 ) Balance as of September 30, 2016 $ 967,999 $ 46,765 $ 1,014,764 The Company’s four reporting units for purposes of assessing impairment are title insurance, home warranty, property and casualty insurance and trust and other services. During the nine months ended September 30, 2016 there were no triggering events that would require an impairment analysis. There is no accumulated impairment for goodwill as the Company has never recognized impairment to any of its reporting units. |
Other Intangible Assets
Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 5 – Other Intangible Assets Other intangible assets consist of the following: (in thousands) September 30, 2016 December 31, Finite-lived intangible assets: Customer relationships $ 95,777 $ 93,572 Noncompete agreements 28,174 26,963 Trademarks 8,621 9,341 Internal-use software licenses 11,006 — Patents 2,840 2,840 146,418 132,716 Accumulated amortization (111,898 ) (101,479 ) 34,520 31,237 Indefinite-lived intangible assets: Licenses 16,897 16,877 $ 51,417 $ 48,114 Amortization expense for finite-lived intangible assets was $3.7 million and $9.3 million for the three and nine months ended September 30, 2016, respectively, and $2.3 million and $7.1 million for the three and nine months ended September 30, 2015, respectively. Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2016 $ 4,490 2017 $ 11,163 2018 $ 6,763 2019 $ 4,401 2020 $ 2,278 2021 $ 1,151 |
Reserve for Known and Incurred
Reserve for Known and Incurred but Not Reported Claims | 9 Months Ended |
Sep. 30, 2016 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | Note 6 – Reserve for Known and Incurred But Not Reported Claims A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2016 December 31, 2015 Known title claims $ 74,206 7.3 % $ 87,543 8.9 % Incurred but not reported claims 886,643 87.1 % 844,364 85.8 % Total title claims 960,849 94.4 % 931,907 94.7 % Non-title claims 57,191 5.6 % 51,973 5.3 % Total loss reserves $ 1,018,040 100.0 % $ 983,880 100.0 % The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 5.5% for the three and nine months ended September 30, 2016 compared to 6.6% for the three and nine months ended September 30, 2015. The current quarter rate of 5.5% reflects the ultimate loss rate of 5.0% for the current policy year and a $5.8 million net increase in the loss reserve estimates for prior policy years. The third quarter of 2015 rate of 6.6% reflected the ultimate loss rate of 6.0% for the 2015 policy year and a $6.2 million net increase in the loss reserve estimates for prior policy years. |
Notes and Contracts Payable
Notes and Contracts Payable | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Notes and Contracts Payable | Note 7 – Notes and Contracts Payable In September 2016, the Company borrowed $160.0 million under its credit facility to fund acquisitions and to partially fund its obligation in connection with the termination of its pension plan. As a result, the Company’s available borrowing capacity under its credit facility was reduced from $700.0 million to $540.0 million. At September 30, 2016, outstanding borrowings under the facility totaled $160.0 million at an interest rate of 2.28%. See Note 10 Employee Benefit Plans for further discussion of the Company’s pension termination and Note 15 Business Combinations for further discussion of the Company’s acquisitions. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 35.7% and 33.7% for the three and nine months ended September 30, 2016, respectively, and 34.3% and 34.4% for the three and nine months ended September 30, 2015, respectively. The effective tax rates differ from the statutory federal rate of 35% primarily due to changes in state and foreign income taxes resulting from fluctuations in the Company’s noninsurance and foreign subsidiaries’ contribution to pretax income and changes in the ratio of permanent differences to income before income taxes. The rates for both the three and nine months ended September 30, 2016 reflect the resolution of certain tax authority examinations and tax credits claimed in current and prior years. In connection with the Company’s June 2010 spin-off from its prior parent, which subsequently assumed the name CoreLogic, Inc. (“CoreLogic”), it entered into a tax sharing agreement which governs the Company’s and CoreLogic’s respective rights, responsibilities and obligations for certain tax-related matters. At September 30, 2016 and December 31, 2015, the Company had a net payable to CoreLogic of $37.5 million and $36.5 million, respectively, related to tax matters prior to the spin-off. This amount is included in the Company’s condensed consolidated balance sheets in accounts payable and accrued liabilities. The increase during the current year was primarily the result of an additional accrual for tax matters prior to the spin-off. The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and adjusts the allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. The ability or failure to achieve the forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of 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 in the next 12 months. As of September 30, 2016 and December 31, 2015, the liability for income taxes associated with uncertain tax positions was $26.8 million and $23.8 million, respectively. The net increase in the liability during 2016 was primarily attributable to reserves for tax positions taken by the Company. As of September 30, 2016 and December 31, 2015, the liabilities could be reduced by $3.6 million and $3.4 million, respectively, of offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net amounts of $23.2 million and $20.4 million as of September 30, 2016 and December 31, 2015, respectively, if recognized, would favorably affect the Company’s effective tax rate. The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. As of September 30, 2016 and December 31, 2015, the Company had accrued $9.5 million and $9.7 million, respectively, of interest and penalties (net of tax benefits of $4.4 million and $4.1 million, respectively) related to uncertain tax positions. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may significantly decrease within the next 12 months. This 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, 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. The Company is generally no longer subject to U.S. federal, state and non-U.S. income tax examinations by taxing authorities for years prior to 2005. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2016 2015 2016 2015 Numerator Net income attributable to the Company $ 107,320 $ 75,542 $ 261,970 $ 206,520 Less: dividends and undistributed earnings — 68 — 230 Net income allocated to common stockholders $ 107,320 $ 75,474 $ 261,970 $ 206,290 Denominator Basic weighted-average shares 110,571 108,647 110,423 108,284 Effect of dilutive employee stock options and 680 1,357 583 1,422 Diluted weighted-average shares 111,251 110,004 111,006 109,706 Net income per share attributable to the Company’s Basic $ 0.97 $ 0.69 $ 2.37 $ 1.91 Diluted $ 0.96 $ 0.69 $ 2.36 $ 1.88 For the three months ended September 30, 2016, no stock options or RSUs had an antidilutive effect on weighted-average diluted common shares outstanding. For the nine months ended September 30, 2016, 17 thousand RSUs were excluded from weighted-average diluted common shares outstanding due to their antidilutive effect. For the three and nine months ended September 30, 2015, 2 thousand RSUs and 1 thousand RSUs, respectively, were excluded from weighted-average diluted common shares outstanding due to their antidilutive effect. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans Net periodic cost related to the Company’s funded defined benefit pension and unfunded supplemental benefit plans includes the following components: Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Expense: Service costs $ 260 $ 390 $ 781 $ 1,170 Interest costs 5,999 6,786 18,000 20,805 Expected return on plan assets (3,083 ) (5,341 ) (9,250 ) (16,237 ) Amortization of net actuarial loss 7,043 7,613 21,153 24,596 Amortization of prior service credit (1,211 ) (1,041 ) (3,633 ) (3,122 ) $ 9,008 $ 8,407 $ 27,051 $ 27,212 Pension termination and settlement In May 2016, the Company’s board of directors terminated the Company’s funded defined benefit pension plan known as the First American Financial Corporation Pension Plan (the “Pension Plan”) effective as of July 31, 2016. The Pension Plan was closed to new entrants effective December 31, 2001 and amended to “freeze” all benefit accruals as of April 30, 2008. Also, in May 2016, a subsidiary of the Company terminated its small regional funded defined benefit pension plan effective as of August 31, 2016. The Company expects the termination of both pension plans to occur over a similar timeframe. Upon completion of these terminations, the Company will have no remaining funded defined benefit pension plan obligations. All financial impacts discussed below reflect the termination of both pension plans. The Pension Plan offers participants annuity payments based on a number of factors. The Pension Plan will also offer an alternative lump sum distribution to certain participants. After certain regulatory approvals are obtained, the Company will provide additional cash contributions to the Pension Plan to ensure that sufficient assets are available to make lump sum distribution payments, purchase group annuity contracts from one or more highly rated insurance companies to pay and administer future benefit payments, and complete other transactions required to terminate the Pension Plan in a manner that fully meets its obligations to all participants. The total amount of additional cash contributions required to be provided by the Company will depend upon changes in interest rates, Pension Plan asset returns, the lump sum election rate, and other factors. To sufficiently fund the Pension Plan, the Company contributed an additional cash contribution of $55.9 million in September 2016 and expects to make an additional cash contribution of approximately $44 million. The Company also expects to pay other termination related expenses. As of December 31, 2015, the Company reported net unrealized losses of $197 million, before tax, in accumulated other comprehensive loss on its consolidated balance sheet related to the Pension Plan. These net unrealized losses, as well as other expenses estimated to be approximately $15 million, before tax, will be recognized in the Company’s consolidated statement of income in two separate quarters as payments are made, initially to settle lump sum elections, and later to purchase group annuity contracts. The Company expects to make distributions to participants electing lump sum payouts and to recognize approximately $81 million in net unrealized losses during the fourth quarter of 2016. The Company expects to complete the transfer of all remaining liabilities and administrative responsibilities related to the Pension Plan to one or more highly rated insurance companies and to recognize approximately $131 million in net unrealized losses and other expenses by the end of the third quarter of 2017. The preceding information related to the expected amounts and timing of pension termination expenses to be recognized are estimates based on net unrealized losses as of December 31, 2015 and actual amounts recognized may differ due to changes in interest rates, Pension Plan asset returns, the lump sum election rate, and other factors. Certain aspects of the transactions required to terminate the Pension Plan and settle its obligations are subject to regulatory review. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 – Fair Value Measurements Certain of the Company’s assets 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 value 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 value. 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 U.S. Treasury bonds, municipal bonds, foreign government bonds, governmental agency bonds, governmental agency mortgage-backed securities and U.S. and foreign corporate 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. Non-agency mortgage-backed securities and certain corporate debt securities were not actively traded and there were fewer observable inputs available requiring the use of more judgment in determining their fair values, which resulted in their classification as Level 3. Equity securities The fair values of 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 September 30, 2016 and December 31, 2015: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2016 Assets: Debt securities: U.S. Treasury bonds $ 150,434 $ — $ 150,434 $ — Municipal bonds 924,237 — 924,237 — Foreign government bonds 145,358 — 145,358 — Governmental agency bonds 195,177 — 195,177 — Governmental agency mortgage-backed 2,235,797 — 2,235,797 — U.S. corporate debt securities 690,738 — 673,239 17,499 Foreign corporate debt securities 250,429 — 248,668 1,761 4,592,170 — 4,572,910 19,260 Equity securities: Preferred stocks 15,219 15,219 — — Common stocks 372,702 372,702 — — 387,921 387,921 — — Total assets $ 4,980,091 $ 387,921 $ 4,572,910 $ 19,260 (in thousands) Total Level 1 Level 2 Level 3 December 31, 2015 Assets: Debt securities: U.S. Treasury bonds $ 129,372 $ — $ 129,372 $ — Municipal bonds 703,795 — 703,795 — Foreign government bonds 130,101 — 130,101 — Governmental agency bonds 418,091 — 418,091 — Governmental agency mortgage-backed 2,055,673 — 2,055,673 — U.S. corporate debt securities 634,683 — 591,116 43,567 Foreign corporate debt securities 207,632 — 201,060 6,572 4,279,347 — 4,229,208 50,139 Equity securities: Preferred stocks 15,467 15,467 — — Common stocks 305,818 305,818 — — 321,285 321,285 — — Total assets $ 4,600,632 $ 321,285 $ 4,229,208 $ 50,139 There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2016 and 2015. Transfers into or out of the Level 3 category occur when unobservable inputs become more or less significant to the fair value measurement. For the three and nine months ended September 30, 2016, and for the three months ended September 30, 2015, transfers between Level 2 and Level 3 were based on market liquidity and related transparency of pricing and associated observable inputs for certain of the Company’s corporate debt securities. There were no transfers in or out of Level 3 during the nine months ended September 30, 2015. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three months ended September 30, 2016 and 2015: September 30, 2016 September 30, 2015 (in thousands) U.S. debt securities Foreign debt securities Total U.S. debt securities Foreign debt Total Fair value at beginning of period $ 14,493 $ 723 $ 15,216 $ 9,314 $ 2,044 $ 11,358 Transfers into Level 3 5,968 — 5,968 1,899 22 1,921 Transfers out of Level 3 (4,546 ) — (4,546 ) (2,634 ) (1,377 ) (4,011 ) Net realized and unrealized gains (losses): Included in earnings 5 — 5 (2 ) — (2 ) Included in other comprehensive income (loss) 115 43 158 (31 ) (9 ) (40 ) Purchases 1,866 1,045 2,911 1,694 4 1,698 Sales (46 ) (50 ) (96 ) (92 ) — (92 ) Settlements (356 ) — (356 ) (2,312 ) (162 ) (2,474 ) Fair value at end of period $ 17,499 $ 1,761 $ 19,260 $ 7,836 $ 522 $ 8,358 Unrealized gains (losses) included in earnings for the period Net realized investment gains (losses) $ — $ — $ — $ — $ — $ — The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the nine months ended September 30, 2016 and 2015: September 30, 2016 September 30, 2015 (in thousands) U.S. debt securities Foreign debt securities Total U.S. debt securities Foreign debt Non-agency Total Fair value at beginning of period $ 43,567 $ 6,572 $ 50,139 $ — $ — $ 16,538 $ 16,538 Transfers into Level 3 269 — 269 — — — — Transfers out of Level 3 (27,764 ) (3,822 ) (31,586 ) — — — — Net realized and unrealized gains (losses): Included in earnings (88 ) (48 ) (136 ) 1 — (1,015 ) (1,014 ) Included in other comprehensive 1,053 88 1,141 — 6 (589 ) (583 ) Purchases 10,132 1,243 11,375 8,316 515 — 8,831 Sales (4,750 ) (1,045 ) (5,795 ) (427 ) — (14,934 ) (15,361 ) Settlements (4,920 ) (1,227 ) (6,147 ) (54 ) 1 — (53 ) Fair value at end of period $ 17,499 $ 1,761 $ 19,260 $ 7,836 $ 522 $ — $ 8,358 Unrealized gains (losses) included in earnings for Net realized investment gains $ (5 ) $ — $ (5 ) $ — $ — $ — $ — 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 is a reasonable estimate of 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 being offered for notes with similar maturities and credit quality. Deposits The carrying value of escrow and other deposit accounts 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 to the Company 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 September 30, 2016 and December 31, 2015: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2016 Assets: Cash and cash equivalents $ 1,443,312 $ 1,443,312 $ 1,443,312 $ — $ — Deposits with banks $ 22,257 $ 22,214 $ 1,110 $ 21,104 $ — Notes receivable, net $ 7,007 $ 6,893 $ — $ — $ 6,893 Liabilities: Deposits $ 3,218,128 $ 3,218,128 $ 3,218,128 $ — $ — Notes and contracts payable $ 737,944 $ 763,860 $ — $ 758,073 $ 5,787 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2015 Assets: Cash and cash equivalents $ 1,027,321 $ 1,027,321 $ 1,027,321 $ — $ — Deposits with banks $ 23,224 $ 23,211 $ 1,103 $ 22,108 $ — Notes receivable, net $ 5,866 $ 5,791 $ — $ — $ 5,791 Liabilities: Deposits $ 2,699,015 $ 2,699,015 $ 2,699,015 $ — $ — Notes and contracts payable $ 581,052 $ 590,970 $ — $ 583,893 $ 7,077 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 12 – Share-Based Compensation The following table presents compensation expense associated with the Company’s share-based compensation plans: Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Expense: RSUs $ 5,401 $ 4,059 $ 25,766 $ 18,278 Stock options 68 68 203 203 Employee stock purchase plan 659 571 2,127 1,780 $ 6,128 $ 4,698 $ 28,096 $ 20,261 The following table summarizes RSU activity for the nine months ended September 30, 2016: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average fair value RSUs unvested at December 31, 2015 1,354 $ 29.20 Granted during 2016 967 36.77 Vested during 2016 (726 ) 30.76 Forfeited during 2016 (20 ) 31.48 RSUs unvested at September 30, 2016 1,575 $ 33.10 The following table summarizes stock option activity for the nine months ended September 30, 2016: ( in thousands, except weighted-average exercise price and contractual term) Number outstanding Weighted- average exercise price Weighted- average remaining contractual term Aggregate intrinsic value Balance at December 31, 2015 132 $ 27.66 Exercised during 2016 — — Balance at September 30, 2016 132 $ 27.66 7.2 years $ 1,391 Vested and expected to vest at September 30, 2016 132 $ 27.66 7.2 years $ 1,391 Exercisable at September 30, 2016 66 $ 27.66 7.2 years $ 696 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | Note 13 – Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table presents a summary of the changes in each component of AOCI for the nine months ended September 30, 2016: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Accumulated other comprehensive income (loss) Balance at December 31, 2015 $ (16,401 ) $ (57,242 ) $ (165,357 ) $ (239,000 ) Change in unrealized gains (losses) on 83,390 — — 83,390 Change in foreign currency translation — 3,066 — 3,066 Amortization of net actuarial loss — — 21,153 21,153 Amortization of prior service cost — — (3,633 ) (3,633 ) Tax effect (31,303 ) — (6,701 ) (38,004 ) Balance at September 30, 2016 $ 35,686 $ (54,176 ) $ (154,538 ) $ (173,028 ) Allocated to the Company $ 35,662 $ (54,176 ) $ (154,538 ) $ (173,052 ) Allocated to noncontrolling interests 24 — — 24 Balance at September 30, 2016 $ 35,686 $ (54,176 ) $ (154,538 ) $ (173,028 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2016 and 2015: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended September 30, 2016 Pretax change before reclassifications $ 12,435 $ (3,459 ) $ — $ 8,976 Reclassifications out of AOCI (8,687 ) — 5,832 (2,855 ) Tax effect (1,169 ) — (2,230 ) (3,399 ) Total other comprehensive income (loss), net of tax $ 2,579 $ (3,459 ) $ 3,602 $ 2,722 Three Months Ended September 30, 2015 Pretax change before reclassifications $ (15,614 ) $ (15,416 ) $ — $ (31,030 ) Reclassifications out of AOCI (108 ) — 6,572 6,464 Tax effect 4,780 — (2,514 ) 2,266 Total other comprehensive income (loss), net of tax $ (10,942 ) $ (15,416 ) $ 4,058 $ (22,300 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2016 and 2015: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Nine Months Ended September 30, 2016 Pretax change before reclassifications $ 96,612 $ 3,066 $ — $ 99,678 Reclassifications out of AOCI (13,222 ) — 17,520 4,298 Tax effect (31,303 ) — (6,701 ) (38,004 ) Total other comprehensive income (loss), net of tax $ 52,087 $ 3,066 $ 10,819 $ 65,972 Nine Months Ended September 30, 2015 Pretax change before reclassifications $ (29,966 ) $ (29,210 ) $ — $ (59,176 ) Reclassifications out of AOCI 1,545 — 21,474 23,019 Tax effect 9,047 — (8,214 ) 833 Total other comprehensive income (loss), net of tax $ (19,374 ) $ (29,210 ) $ 13,260 $ (35,324 ) The following table presents the effect of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Affected line items in the condensed 2016 2015 2016 2015 consolidated statements of income Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities $ 8,687 $ 108 $ 13,707 $ (1,545 ) Net realized investment gains (losses) Net other-than-temporary impairment losses — — (485 ) — Net realized investment gains (losses) Pretax total $ 8,687 $ 108 $ 13,222 $ (1,545 ) Tax effect $ (3,261 ) $ (33 ) $ (5,057 ) $ 492 Pension benefit adjustment: Amortization of employee benefit plan items: Net actuarial loss $ (7,043 ) $ (7,613 ) $ (21,153 ) $ (24,596 ) (1) Prior service credit 1,211 1,041 3,633 3,122 (1) Pretax total $ (5,832 ) $ (6,572 ) $ (17,520 ) $ (21,474 ) Tax effect $ 2,229 $ 2,514 $ 6,701 $ 8,214 (1) These components of AOCI are included in the computation of net periodic cost. See Note 10 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | Note 14 – Litigation and Regulatory Contingencies The Company and its subsidiaries are parties to a number of non-ordinary course lawsuits. These lawsuits frequently are similar in nature to other lawsuits pending against the Company’s competitors. For those non-ordinary course lawsuits where 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. For a substantial majority of these lawsuits, however, it is not possible to assess the probability of loss. Most of these lawsuits are putative class actions which require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner the Company’s activities, the making of factual allegations sufficient to suggest that the Company’s activities exceeded the limits of the law and a determination by the court—known as class certification—that the law permits a group of individuals to pursue the case together as a class. In certain instances the Company may also be able to compel the plaintiff to arbitrate its claim on an individual basis. If these procedural requirements are not met, either the lawsuit cannot proceed or, as is the case with class certification or compelled arbitration, the plaintiffs lose the financial incentive to proceed with the case (or the amount at issue effectively becomes de minimis). Frequently, a court’s determination as to these procedural requirements is subject to appeal to a higher court. As a result of, among other factors, ambiguities and inconsistencies in the myriad laws applicable to the Company’s business and the uniqueness of the factual issues presented in any given lawsuit, the Company often cannot determine the probability of loss until a court has finally determined that a plaintiff has satisfied applicable procedural requirements. Furthermore, because most of these lawsuits are putative class actions, it is often impossible to estimate the possible loss or a range of loss amounts, even where the Company has determined that a loss is reasonably possible. Generally class actions involve a large number of people and the effort to determine which people satisfy the requirements to become plaintiffs—or class members—is often time consuming and burdensome. Moreover, these lawsuits raise complex factual issues which result in uncertainty as to their outcome and, ultimately, make it difficult for the Company to estimate the amount of damages which a plaintiff might successfully prove. In addition, many of the Company’s businesses are regulated by various federal, state, local and foreign governmental agencies and are subject to numerous statutory guidelines. These regulations and statutory guidelines often are complex, inconsistent or ambiguous, which results in additional uncertainty as to the outcome of a given lawsuit—including the amount of damages a plaintiff might be afforded—or makes it difficult to analogize experience in one case or jurisdiction to another case or jurisdiction. Most of the non-ordinary course lawsuits to which the Company and its subsidiaries are parties challenge practices in the Company’s title insurance business, though a limited number of cases also pertain to the Company’s other businesses. These lawsuits include, among others, cases alleging, among other assertions, that the Company, one of its subsidiaries and/or one of its agents: • charged an improper rate for title insurance in a refinance transaction, including • Lewis v. First American Title Insurance Company, filed on November 28, 2006 and pending in the United States District Court for the District of Idaho. A court has granted class certification in Lewis. For the reasons stated above, the Company has been unable to assess the probability of loss or estimate the possible loss or the range of loss. • purchased minority interests in title insurance agents as an inducement to refer title insurance underwriting business to the Company or gave items of value to title insurance agents and others for referrals of business in violation of the Real Estate Settlement Procedures Act, including • Edwards v. First American Financial Corporation, filed on June 12, 2007 and pending in the United States District Court for the Central District of California. In Edwards the court has issued final approval of a settlement. The anticipated loss, for which a liability has been previously recorded, is not material to the condensed consolidated financial statements as a whole. • misclassified certain employees, including • Cruz v. First American Financial Corporation, et al., filed on November 25, 2015 and pending in the Superior Court of the State of California, County of Orange, • Sager v. Interthinx, Inc., filed on January 23, 2015 and pending in the Superior Court of the State of California, County of Los Angeles, and • Weber v. Interthinx, Inc., et al., filed on April 17, 2015 and pending in the United States District Court for the Eastern District of Missouri. These lawsuits are putative class actions for which a class has not been certified. For the reasons described above, as well as the applicability of certain indemnification rights the Company may have, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is not material to the condensed consolidated financial statements as a whole. • overcharged or improperly charged fees for products and services, conspired to fix prices, participated in the conveyance of illusory property interests, denied home warranty claims, and gave items of value to builders, brokers and others as inducements to refer business in violation of certain laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including • Chassen v. First American Financial Corporation, et al., filed on January 22, 2009 and pending in the United States District Court of New Jersey, • Downing v. First American Title Insurance Company, et al., filed on July 26, 2016 and pending in the Northern District of Georgia, • Kaufman v. First American Financial Corporation, et al., filed on December 21, 2007 and pending in the Superior Court of the State of California, County of Los Angeles, • Kirk v. First American Financial Corporation, et al., filed on June 15, 2006 and pending in the Superior Court of the State of California, County of Los Angeles, • Lennen v. First American Financial Corporation, et al., filed on May 19, 2016 and pending in the United States District court for the Middle District of Florida, • McCormick v. First American Real Estate Services, Inc., et al., filed on December 31, 2015 and pending in the Superior Court of the State of California, County of Orange, • Sjobring v. First American Financial Corporation, et al., filed on February 25, 2005 and pending in the Superior Court of the State of California, County of Los Angeles, • Wilmot v. First American Financial Corporation, et al., filed on April 20, 2007 and pending in the Superior Court of the State of California, County of Los Angeles, and • In re First American Home Buyers Protection Corporation, consolidated on October 9, 2014 and pending in the United States District Court for the Southern District of California. All of these lawsuits, except Kaufman and Kirk, are putative class actions for which a class has not been certified. In Kaufman a class was certified but that certification was subsequently vacated. A trial of the Kirk matter has concluded and the judgment has been affirmed on appeal. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is not material to the condensed consolidated financial statements as a whole. While some of the lawsuits described above may be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that any of these lawsuits will have a material adverse effect on the Company’s overall financial condition or liquidity. The Company also is a party to non-ordinary course lawsuits other than those described above. With respect to these lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the condensed consolidated financial statements as a whole. The Company’s title insurance, property and casualty insurance, home warranty, banking, thrift, trust and investment advisory 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. These exams or investigations include inquiries into, among other matters, pricing and rate setting practices in the title insurance industry, competition in the title insurance industry, real estate settlement service customer acquisition and retention practices and agency relationships. With respect to matters where the Company has determined that a loss is both probable and reasonably estimable, the Company has recorded a liability representing its best estimate of the financial exposure based on known facts. While the ultimate disposition of each such exam or investigation is not yet determinable, the Company does not believe that individually or in the aggregate they will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 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. The Company’s Canadian operations provide certain services to lenders which it believes to be exempt from excise tax under applicable Canadian tax laws. However, in October 2014, the Canadian taxing authority provided internal guidance that the services in question should be subject to the excise tax. While discussions with the taxing authority are ongoing, the Company believes that the guidance may result in an assessment. The amount, if any, of such assessment is not currently known, and any such assessment would be subject to negotiation. In the event that the Company disagrees with the ultimate assessment, the Company intends to avail itself of avenues of appeal. While the Company believes it is reasonably likely that the Company would prevail on the merits, a loss associated with the matter is possible. In light of the foregoing, the Company is not currently able to reasonably estimate a loss or range of loss associated with the matter. While such a loss could be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that this matter will have a material adverse effect on the Company’s overall financial condition or liquidity. The Company and its subsidiaries also are involved in numerous ongoing routine legal and regulatory proceedings related to their operations. With respect to each of these proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the condensed consolidated financial statements as a whole. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 15 – Business Combinations During the three and nine months ended September 30, 2016, the Company completed acquisitions for an aggregate purchase price of $56.9 million and $75.5 million, respectively. The Company has recorded preliminary fair value estimates for the assets acquired and liabilities assumed, which are subject to change pending completion of the Company’s purchase price allocation. The Company allocates the purchase price of each acquisition to the assets acquired and liabilities assumed using a variety of valuation techniques, including discounted cash flow analysis. These acquisitions have been included in the Company’s title insurance and services segment. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 16 – Segment Information The Company consists of the following reportable segments and a corporate function: • 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 involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory 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 and the District of Columbia. The Company also offers title insurance and other insurance and guarantee products, as well as related settlement services in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. • The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 47 states. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 39 states and the District of Columbia. The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Eliminations consist of inter-segment revenues and related expenses included in the results of the operating segments. Selected financial information about the Company’s operations, by segment, is as follows: For the three months ended September 30, 2016: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,395,727 $ 188,706 $ 22,994 $ 41,948 Specialty Insurance 109,782 1,781 1,401 844 Corporate 2,855 (23,556 ) 96 — Eliminations (20 ) — — — $ 1,508,344 $ 166,931 $ 24,491 $ 42,792 For the three months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,288,156 $ 136,984 $ 19,753 $ 31,309 Specialty Insurance 101,210 1,684 1,197 927 Corporate (5,428 ) (23,272 ) 122 2 Eliminations (23 ) — — — $ 1,383,915 $ 115,396 $ 21,072 $ 32,238 F or the nine months ended September 30, 2016: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,750,118 $ 448,815 $ 66,510 $ 99,887 Specialty Insurance 317,246 18,744 4,107 3,928 Corporate 4,265 (71,429 ) 288 — Eliminations (40 ) — — — $ 4,071,589 $ 396,130 $ 70,905 $ 103,815 For the nine months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,534,987 $ 361,223 $ 59,443 $ 91,468 Specialty Insurance 293,398 29,446 3,579 2,804 Corporate (9,148 ) (74,703 ) 367 2 Eliminations (449 ) — — — $ 3,818,788 $ 315,966 $ 63,389 $ 94,274 |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Gross Unrealized Losses on Investments in Debt and Equity Securities | Gross unrealized losses on investments in debt and equity securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2016 Debt securities: U.S. Treasury bonds $ 55,705 $ (463 ) $ — $ — $ 55,705 $ (463 ) Municipal bonds 223,714 (1,941 ) 16,401 (282 ) 240,115 (2,223 ) Foreign government bonds 32,714 (313 ) 363 (29 ) 33,077 (342 ) Governmental agency bonds 5,706 (123 ) — — 5,706 (123 ) Governmental agency mortgage-backed 749,900 (2,654 ) 339,896 (3,509 ) 1,089,796 (6,163 ) U.S. corporate debt securities 50,855 (634 ) 30,740 (1,001 ) 81,595 (1,635 ) Foreign corporate debt securities 21,121 (181 ) 9,990 (282 ) 31,111 (463 ) Total debt securities 1,139,715 (6,309 ) 397,390 (5,103 ) 1,537,105 (11,412 ) Equity securities 7,716 (74 ) 76,717 (7,899 ) 84,433 (7,973 ) Total $ 1,147,431 $ (6,383 ) $ 474,107 $ (13,002 ) $ 1,621,538 $ (19,385 ) December 31, 2015 Debt securities: U.S. Treasury bonds $ 105,701 $ (1,285 ) $ 1,654 $ (16 ) $ 107,355 $ (1,301 ) Municipal bonds 133,465 (733 ) 13,190 (112 ) 146,655 (845 ) Foreign government bonds 13,601 (890 ) 267 (125 ) 13,868 (1,015 ) Governmental agency bonds 191,035 (2,497 ) 18,237 (304 ) 209,272 (2,801 ) Governmental agency mortgage-backed 1,096,301 (9,424 ) 213,020 (5,615 ) 1,309,321 (15,039 ) U.S. corporate debt securities 361,842 (11,272 ) 13,511 (1,211 ) 375,353 (12,483 ) Foreign corporate debt securities 102,801 (2,725 ) 11,246 (1,053 ) 114,047 (3,778 ) Total debt securities 2,004,746 (28,826 ) 271,125 (8,436 ) 2,275,871 (37,262 ) Equity securities 191,248 (12,068 ) 31,974 (5,904 ) 223,222 (17,972 ) Total $ 2,195,994 $ (40,894 ) $ 303,099 $ (14,340 ) $ 2,499,093 $ (55,234 ) |
Investments in Debt Securities | Investments in debt securities at September 30, 2016, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 35,270 $ 68,799 $ 16,147 $ 28,592 $ 148,808 Estimated fair value $ 35,293 $ 69,127 $ 16,660 $ 29,354 $ 150,434 Municipal bonds Amortized cost $ 47,544 $ 331,550 $ 214,529 $ 313,272 $ 906,895 Estimated fair value $ 47,615 $ 337,258 $ 221,613 $ 317,751 $ 924,237 Foreign government bonds Amortized cost $ 4,447 $ 107,304 $ 11,240 $ 20,862 $ 143,853 Estimated fair value $ 4,482 $ 108,323 $ 11,702 $ 20,851 $ 145,358 Governmental agency bonds Amortized cost $ 20,771 $ 82,989 $ 47,203 $ 41,467 $ 192,430 Estimated fair value $ 20,781 $ 83,238 $ 47,561 $ 43,597 $ 195,177 U.S. corporate debt securities Amortized cost $ 15,513 $ 318,116 $ 274,598 $ 66,424 $ 674,651 Estimated fair value $ 15,578 $ 324,386 $ 281,216 $ 69,558 $ 690,738 Foreign corporate debt securities Amortized cost $ 9,521 $ 114,704 $ 110,180 $ 10,822 $ 245,227 Estimated fair value $ 9,532 $ 116,436 $ 112,776 $ 11,685 $ 250,429 Total debt securities excluding mortgage-backed securities Amortized cost $ 133,066 $ 1,023,462 $ 673,897 $ 481,439 $ 2,311,864 Estimated fair value $ 133,281 $ 1,038,768 $ 691,528 $ 492,796 $ 2,356,373 Total mortgage-backed securities Amortized cost $ 2,229,651 Estimated fair value $ 2,235,797 Total debt securities Amortized cost $ 4,541,515 Estimated fair value $ 4,592,170 |
Composition of Investment Portfolio by Credit Rating Agencies | The composition of the investment portfolio at September 30, 2016, by credit rating, is as follows: A- Ratings or higher BBB+ to BBB- Ratings Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage September 30, 2016 Debt securities: U.S. Treasury bonds $ 150,434 100.0 $ — — $ — — $ 150,434 100.0 Municipal bonds 879,726 95.2 35,861 3.8 8,650 1.0 924,237 100.0 Foreign government bonds 121,153 83.4 22,003 15.1 2,202 1.5 145,358 100.0 Governmental agency bonds 195,177 100.0 — — — — 195,177 100.0 Governmental agency mortgage- 2,235,797 100.0 — — — — 2,235,797 100.0 U.S. corporate debt securities 237,952 34.5 222,588 32.2 230,198 33.3 690,738 100.0 Foreign corporate debt securities 114,882 45.9 87,352 34.9 48,195 19.2 250,429 100.0 Total debt securities 3,935,121 85.7 367,804 8.0 289,245 6.3 4,592,170 100.0 Preferred stocks — — 8,987 59.1 6,232 40.9 15,219 100.0 Total $ 3,935,121 85.4 $ 376,791 8.2 $ 295,477 6.4 $ 4,607,389 100.0 |
Composition of Investment Portfolio in Unrealized Loss Position by Credit Rating Agencies | The composition of the investment portfolio in an unrealized loss position at September 30, 2016, by credit rating, is as follows: A- Ratings or higher BBB+ to BBB- Ratings Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage September 30, 2016 Debt securities: U.S. Treasury bonds $ 55,705 100.0 $ — — $ — — $ 55,705 100.0 Municipal bonds 233,406 97.2 5,332 2.2 1,377 0.6 240,115 100.0 Foreign government bonds 19,904 60.1 12,197 36.9 976 3.0 33,077 100.0 Governmental agency bonds 5,706 100.0 — — — — 5,706 100.0 Governmental agency mortgage- 1,089,796 100.0 — — — — 1,089,796 100.0 U.S. corporate debt securities 7,342 9.0 29,664 36.4 44,589 54.6 81,595 100.0 Foreign corporate debt securities 3,004 9.7 15,461 49.7 12,646 40.6 31,111 100.0 Total debt securities 1,414,863 92.0 62,654 4.1 59,588 3.9 1,537,105 100.0 Preferred stocks — — 8,987 59.1 6,232 40.9 15,219 100.0 Total $ 1,414,863 91.2 $ 71,641 4.6 $ 65,820 4.2 $ 1,552,324 100.0 |
Debt Securities | |
Investments Classified as Available-For-Sale | Investments in debt securities, classified as available-for-sale, are as follows: (in thousands) Amortized Gross unrealized Estimated Gains Losses September 30, 2016 U.S. Treasury bonds $ 148,808 $ 2,089 $ (463 ) $ 150,434 Municipal bonds 906,895 19,565 (2,223 ) 924,237 Foreign government bonds 143,853 1,847 (342 ) 145,358 Governmental agency bonds 192,430 2,870 (123 ) 195,177 Governmental agency mortgage-backed securities 2,229,651 12,309 (6,163 ) 2,235,797 U.S. corporate debt securities 674,651 17,722 (1,635 ) 690,738 Foreign corporate debt securities 245,227 5,665 (463 ) 250,429 $ 4,541,515 $ 62,067 $ (11,412 ) $ 4,592,170 December 31, 2015 U.S. Treasury bonds $ 130,252 $ 421 $ (1,301 ) $ 129,372 Municipal bonds 692,000 12,640 (845 ) 703,795 Foreign government bonds 129,984 1,132 (1,015 ) 130,101 Governmental agency bonds 419,869 1,023 (2,801 ) 418,091 Governmental agency mortgage-backed securities 2,065,728 4,984 (15,039 ) 2,055,673 U.S. corporate debt securities 642,869 4,297 (12,483 ) 634,683 Foreign corporate debt securities 210,162 1,248 (3,778 ) 207,632 $ 4,290,864 $ 25,745 $ (37,262 ) $ 4,279,347 |
Equity securities | |
Investments Classified as Available-For-Sale | Investments in equity securities, classified as available-for-sale, are as follows: Cost Gross unrealized Estimated (in thousands) Gains Losses September 30, 2016 Preferred stocks $ 19,311 $ — $ (4,092 ) $ 15,219 Common stocks 351,841 24,742 (3,881 ) 372,702 $ 371,152 $ 24,742 $ (7,973 ) $ 387,921 December 31, 2015 Preferred stocks $ 18,305 $ 420 $ (3,258 ) $ 15,467 Common stocks 307,429 13,103 (14,714 ) 305,818 $ 325,734 $ 13,523 $ (17,972 ) $ 321,285 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Operating Segment | A summary of the changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2016, is as follows: (in thousands) Title Specialty Total Balance as of December 31, 2015 $ 917,577 $ 46,765 $ 964,342 Acquisitions 49,570 — 49,570 Foreign currency translation 1,146 — 1,146 Other adjustments (294 ) — (294 ) Balance as of September 30, 2016 $ 967,999 $ 46,765 $ 1,014,764 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consist of the following: (in thousands) September 30, 2016 December 31, Finite-lived intangible assets: Customer relationships $ 95,777 $ 93,572 Noncompete agreements 28,174 26,963 Trademarks 8,621 9,341 Internal-use software licenses 11,006 — Patents 2,840 2,840 146,418 132,716 Accumulated amortization (111,898 ) (101,479 ) 34,520 31,237 Indefinite-lived intangible assets: Licenses 16,897 16,877 $ 51,417 $ 48,114 |
Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2016 $ 4,490 2017 $ 11,163 2018 $ 6,763 2019 $ 4,401 2020 $ 2,278 2021 $ 1,151 |
Reserve for Known and Incurre28
Reserve for Known and Incurred but Not Reported Claims (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Insurance Loss Reserves [Abstract] | |
Summary of Loss Reserves | A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2016 December 31, 2015 Known title claims $ 74,206 7.3 % $ 87,543 8.9 % Incurred but not reported claims 886,643 87.1 % 844,364 85.8 % Total title claims 960,849 94.4 % 931,907 94.7 % Non-title claims 57,191 5.6 % 51,973 5.3 % Total loss reserves $ 1,018,040 100.0 % $ 983,880 100.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2016 2015 2016 2015 Numerator Net income attributable to the Company $ 107,320 $ 75,542 $ 261,970 $ 206,520 Less: dividends and undistributed earnings — 68 — 230 Net income allocated to common stockholders $ 107,320 $ 75,474 $ 261,970 $ 206,290 Denominator Basic weighted-average shares 110,571 108,647 110,423 108,284 Effect of dilutive employee stock options and 680 1,357 583 1,422 Diluted weighted-average shares 111,251 110,004 111,006 109,706 Net income per share attributable to the Company’s Basic $ 0.97 $ 0.69 $ 2.37 $ 1.91 Diluted $ 0.96 $ 0.69 $ 2.36 $ 1.88 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Cost | Net periodic cost related to the Company’s funded defined benefit pension and unfunded supplemental benefit plans includes the following components: Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Expense: Service costs $ 260 $ 390 $ 781 $ 1,170 Interest costs 5,999 6,786 18,000 20,805 Expected return on plan assets (3,083 ) (5,341 ) (9,250 ) (16,237 ) Amortization of net actuarial loss 7,043 7,613 21,153 24,596 Amortization of prior service credit (1,211 ) (1,041 ) (3,633 ) (3,122 ) $ 9,008 $ 8,407 $ 27,051 $ 27,212 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2016 Assets: Debt securities: U.S. Treasury bonds $ 150,434 $ — $ 150,434 $ — Municipal bonds 924,237 — 924,237 — Foreign government bonds 145,358 — 145,358 — Governmental agency bonds 195,177 — 195,177 — Governmental agency mortgage-backed 2,235,797 — 2,235,797 — U.S. corporate debt securities 690,738 — 673,239 17,499 Foreign corporate debt securities 250,429 — 248,668 1,761 4,592,170 — 4,572,910 19,260 Equity securities: Preferred stocks 15,219 15,219 — — Common stocks 372,702 372,702 — — 387,921 387,921 — — Total assets $ 4,980,091 $ 387,921 $ 4,572,910 $ 19,260 (in thousands) Total Level 1 Level 2 Level 3 December 31, 2015 Assets: Debt securities: U.S. Treasury bonds $ 129,372 $ — $ 129,372 $ — Municipal bonds 703,795 — 703,795 — Foreign government bonds 130,101 — 130,101 — Governmental agency bonds 418,091 — 418,091 — Governmental agency mortgage-backed 2,055,673 — 2,055,673 — U.S. corporate debt securities 634,683 — 591,116 43,567 Foreign corporate debt securities 207,632 — 201,060 6,572 4,279,347 — 4,229,208 50,139 Equity securities: Preferred stocks 15,467 15,467 — — Common stocks 305,818 305,818 — — 321,285 321,285 — — Total assets $ 4,600,632 $ 321,285 $ 4,229,208 $ 50,139 |
Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis | The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three months ended September 30, 2016 and 2015: September 30, 2016 September 30, 2015 (in thousands) U.S. debt securities Foreign debt securities Total U.S. debt securities Foreign debt Total Fair value at beginning of period $ 14,493 $ 723 $ 15,216 $ 9,314 $ 2,044 $ 11,358 Transfers into Level 3 5,968 — 5,968 1,899 22 1,921 Transfers out of Level 3 (4,546 ) — (4,546 ) (2,634 ) (1,377 ) (4,011 ) Net realized and unrealized gains (losses): Included in earnings 5 — 5 (2 ) — (2 ) Included in other comprehensive income (loss) 115 43 158 (31 ) (9 ) (40 ) Purchases 1,866 1,045 2,911 1,694 4 1,698 Sales (46 ) (50 ) (96 ) (92 ) — (92 ) Settlements (356 ) — (356 ) (2,312 ) (162 ) (2,474 ) Fair value at end of period $ 17,499 $ 1,761 $ 19,260 $ 7,836 $ 522 $ 8,358 Unrealized gains (losses) included in earnings for the period Net realized investment gains (losses) $ — $ — $ — $ — $ — $ — The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the nine months ended September 30, 2016 and 2015: September 30, 2016 September 30, 2015 (in thousands) U.S. debt securities Foreign debt securities Total U.S. debt securities Foreign debt Non-agency Total Fair value at beginning of period $ 43,567 $ 6,572 $ 50,139 $ — $ — $ 16,538 $ 16,538 Transfers into Level 3 269 — 269 — — — — Transfers out of Level 3 (27,764 ) (3,822 ) (31,586 ) — — — — Net realized and unrealized gains (losses): Included in earnings (88 ) (48 ) (136 ) 1 — (1,015 ) (1,014 ) Included in other comprehensive 1,053 88 1,141 — 6 (589 ) (583 ) Purchases 10,132 1,243 11,375 8,316 515 — 8,831 Sales (4,750 ) (1,045 ) (5,795 ) (427 ) — (14,934 ) (15,361 ) Settlements (4,920 ) (1,227 ) (6,147 ) (54 ) 1 — (53 ) Fair value at end of period $ 17,499 $ 1,761 $ 19,260 $ 7,836 $ 522 $ — $ 8,358 Unrealized gains (losses) included in earnings for Net realized investment gains $ (5 ) $ — $ (5 ) $ — $ — $ — $ — |
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 September 30, 2016 and December 31, 2015: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2016 Assets: Cash and cash equivalents $ 1,443,312 $ 1,443,312 $ 1,443,312 $ — $ — Deposits with banks $ 22,257 $ 22,214 $ 1,110 $ 21,104 $ — Notes receivable, net $ 7,007 $ 6,893 $ — $ — $ 6,893 Liabilities: Deposits $ 3,218,128 $ 3,218,128 $ 3,218,128 $ — $ — Notes and contracts payable $ 737,944 $ 763,860 $ — $ 758,073 $ 5,787 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2015 Assets: Cash and cash equivalents $ 1,027,321 $ 1,027,321 $ 1,027,321 $ — $ — Deposits with banks $ 23,224 $ 23,211 $ 1,103 $ 22,108 $ — Notes receivable, net $ 5,866 $ 5,791 $ — $ — $ 5,791 Liabilities: Deposits $ 2,699,015 $ 2,699,015 $ 2,699,015 $ — $ — Notes and contracts payable $ 581,052 $ 590,970 $ — $ 583,893 $ 7,077 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expenses Associated with Share-Based Compensation Plans | The following table presents compensation expense associated with the Company’s share-based compensation plans: Three Months Ended Nine Months Ended (in thousands) 2016 2015 2016 2015 Expense: RSUs $ 5,401 $ 4,059 $ 25,766 $ 18,278 Stock options 68 68 203 203 Employee stock purchase plan 659 571 2,127 1,780 $ 6,128 $ 4,698 $ 28,096 $ 20,261 |
Summary of RSU Activity | The following table summarizes RSU activity for the nine months ended September 30, 2016: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average fair value RSUs unvested at December 31, 2015 1,354 $ 29.20 Granted during 2016 967 36.77 Vested during 2016 (726 ) 30.76 Forfeited during 2016 (20 ) 31.48 RSUs unvested at September 30, 2016 1,575 $ 33.10 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the nine months ended September 30, 2016: ( in thousands, except weighted-average exercise price and contractual term) Number outstanding Weighted- average exercise price Weighted- average remaining contractual term Aggregate intrinsic value Balance at December 31, 2015 132 $ 27.66 Exercised during 2016 — — Balance at September 30, 2016 132 $ 27.66 7.2 years $ 1,391 Vested and expected to vest at September 30, 2016 132 $ 27.66 7.2 years $ 1,391 Exercisable at September 30, 2016 66 $ 27.66 7.2 years $ 696 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Accumulated other comprehensive income (loss) Balance at December 31, 2015 $ (16,401 ) $ (57,242 ) $ (165,357 ) $ (239,000 ) Change in unrealized gains (losses) on 83,390 — — 83,390 Change in foreign currency translation — 3,066 — 3,066 Amortization of net actuarial loss — — 21,153 21,153 Amortization of prior service cost — — (3,633 ) (3,633 ) Tax effect (31,303 ) — (6,701 ) (38,004 ) Balance at September 30, 2016 $ 35,686 $ (54,176 ) $ (154,538 ) $ (173,028 ) Allocated to the Company $ 35,662 $ (54,176 ) $ (154,538 ) $ (173,052 ) Allocated to noncontrolling interests 24 — — 24 Balance at September 30, 2016 $ 35,686 $ (54,176 ) $ (154,538 ) $ (173,028 ) |
Adjustments for Reclassification of Other Comprehensive Income (Loss) | The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2016 and 2015: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended September 30, 2016 Pretax change before reclassifications $ 12,435 $ (3,459 ) $ — $ 8,976 Reclassifications out of AOCI (8,687 ) — 5,832 (2,855 ) Tax effect (1,169 ) — (2,230 ) (3,399 ) Total other comprehensive income (loss), net of tax $ 2,579 $ (3,459 ) $ 3,602 $ 2,722 Three Months Ended September 30, 2015 Pretax change before reclassifications $ (15,614 ) $ (15,416 ) $ — $ (31,030 ) Reclassifications out of AOCI (108 ) — 6,572 6,464 Tax effect 4,780 — (2,514 ) 2,266 Total other comprehensive income (loss), net of tax $ (10,942 ) $ (15,416 ) $ 4,058 $ (22,300 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2016 and 2015: (in thousands) Unrealized gains (losses) on securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Nine Months Ended September 30, 2016 Pretax change before reclassifications $ 96,612 $ 3,066 $ — $ 99,678 Reclassifications out of AOCI (13,222 ) — 17,520 4,298 Tax effect (31,303 ) — (6,701 ) (38,004 ) Total other comprehensive income (loss), net of tax $ 52,087 $ 3,066 $ 10,819 $ 65,972 Nine Months Ended September 30, 2015 Pretax change before reclassifications $ (29,966 ) $ (29,210 ) $ — $ (59,176 ) Reclassifications out of AOCI 1,545 — 21,474 23,019 Tax effect 9,047 — (8,214 ) 833 Total other comprehensive income (loss), net of tax $ (19,374 ) $ (29,210 ) $ 13,260 $ (35,324 ) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effect of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Affected line items in the condensed 2016 2015 2016 2015 consolidated statements of income Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities $ 8,687 $ 108 $ 13,707 $ (1,545 ) Net realized investment gains (losses) Net other-than-temporary impairment losses — — (485 ) — Net realized investment gains (losses) Pretax total $ 8,687 $ 108 $ 13,222 $ (1,545 ) Tax effect $ (3,261 ) $ (33 ) $ (5,057 ) $ 492 Pension benefit adjustment: Amortization of employee benefit plan items: Net actuarial loss $ (7,043 ) $ (7,613 ) $ (21,153 ) $ (24,596 ) (1) Prior service credit 1,211 1,041 3,633 3,122 (1) Pretax total $ (5,832 ) $ (6,572 ) $ (17,520 ) $ (21,474 ) Tax effect $ 2,229 $ 2,514 $ 6,701 $ 8,214 (1) These components of AOCI are included in the computation of net periodic cost. See Note 10 Employee Benefit Plans for additional details. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, is as follows: For the three months ended September 30, 2016: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,395,727 $ 188,706 $ 22,994 $ 41,948 Specialty Insurance 109,782 1,781 1,401 844 Corporate 2,855 (23,556 ) 96 — Eliminations (20 ) — — — $ 1,508,344 $ 166,931 $ 24,491 $ 42,792 For the three months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,288,156 $ 136,984 $ 19,753 $ 31,309 Specialty Insurance 101,210 1,684 1,197 927 Corporate (5,428 ) (23,272 ) 122 2 Eliminations (23 ) — — — $ 1,383,915 $ 115,396 $ 21,072 $ 32,238 F or the nine months ended September 30, 2016: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,750,118 $ 448,815 $ 66,510 $ 99,887 Specialty Insurance 317,246 18,744 4,107 3,928 Corporate 4,265 (71,429 ) 288 — Eliminations (40 ) — — — $ 4,071,589 $ 396,130 $ 70,905 $ 103,815 For the nine months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,534,987 $ 361,223 $ 59,443 $ 91,468 Specialty Insurance 293,398 29,446 3,579 2,804 Corporate (9,148 ) (74,703 ) 367 2 Eliminations (449 ) — — — $ 3,818,788 $ 315,966 $ 63,389 $ 94,274 |
Basis of Condensed Consolidat35
Basis of Condensed Consolidated Financial Statements (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Direct premiums and escrow fees | $ 649,726 | $ 605,450 | $ 1,775,615 | $ 1,716,468 |
Agent premiums | 625,953 | 585,974 | 1,653,990 | 1,520,507 |
Personnel costs | 438,692 | 411,743 | 1,239,129 | 1,185,318 |
Premiums retained by agents | 495,130 | 462,535 | 1,303,838 | 1,200,549 |
Other operating expenses | 219,959 | 209,316 | 622,995 | 621,298 |
Information and other | $ 188,727 | 173,349 | $ 526,575 | 511,334 |
Restatement Adjustment | Title Insurance and Services | Closing Protection Letters And Temporary Labor Costs | ||||
Segment Reporting Information [Line Items] | ||||
Direct premiums and escrow fees | (9,500) | (24,600) | ||
Agent premiums | 9,500 | 24,600 | ||
Personnel costs | 10,600 | 29,000 | ||
Premiums retained by agents | 500 | 1,200 | ||
Other operating expenses | (11,100) | (30,200) | ||
Restatement Adjustment | Title Insurance and Services | Certain Non Risk Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Direct premiums and escrow fees | (10,700) | (31,500) | ||
Information and other | 10,700 | 31,500 | ||
Restatement Adjustment | Specialty Insurance | Closing Protection Letters And Temporary Labor Costs | ||||
Segment Reporting Information [Line Items] | ||||
Personnel costs | 200 | 700 | ||
Other operating expenses | $ (200) | $ (700) |
Escrow Deposits, Like-Kind Ex36
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets (Narrative) (Detail) - USD ($) $ in Billions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Assets [Line Items] | ||
Escrow deposits | $ 7.5 | $ 6.6 |
Like-kind exchange funds | 2.2 | 2.8 |
First American Trust | ||
Other Assets [Line Items] | ||
Escrow deposits | 3.1 | 2.6 |
Trust assets | $ 3.2 | $ 3 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | $ 4,541,515 | $ 4,290,864 |
Debt Securities, Gross unrealized gains | 62,067 | 25,745 |
Debt Securities, Gross unrealized losses | (11,412) | (37,262) |
Debt securities, Estimated fair value | 4,592,170 | 4,279,347 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 148,808 | 130,252 |
Debt Securities, Gross unrealized gains | 2,089 | 421 |
Debt Securities, Gross unrealized losses | (463) | (1,301) |
Debt securities, Estimated fair value | 150,434 | 129,372 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 906,895 | 692,000 |
Debt Securities, Gross unrealized gains | 19,565 | 12,640 |
Debt Securities, Gross unrealized losses | (2,223) | (845) |
Debt securities, Estimated fair value | 924,237 | 703,795 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 143,853 | 129,984 |
Debt Securities, Gross unrealized gains | 1,847 | 1,132 |
Debt Securities, Gross unrealized losses | (342) | (1,015) |
Debt securities, Estimated fair value | 145,358 | 130,101 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 192,430 | 419,869 |
Debt Securities, Gross unrealized gains | 2,870 | 1,023 |
Debt Securities, Gross unrealized losses | (123) | (2,801) |
Debt securities, Estimated fair value | 195,177 | 418,091 |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 2,229,651 | 2,065,728 |
Debt Securities, Gross unrealized gains | 12,309 | 4,984 |
Debt Securities, Gross unrealized losses | (6,163) | (15,039) |
Debt securities, Estimated fair value | 2,235,797 | 2,055,673 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 674,651 | 642,869 |
Debt Securities, Gross unrealized gains | 17,722 | 4,297 |
Debt Securities, Gross unrealized losses | (1,635) | (12,483) |
Debt securities, Estimated fair value | 690,738 | 634,683 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | 245,227 | 210,162 |
Debt Securities, Gross unrealized gains | 5,665 | 1,248 |
Debt Securities, Gross unrealized losses | (463) | (3,778) |
Debt securities, Estimated fair value | $ 250,429 | $ 207,632 |
Debt and Equity Securities (I38
Debt and Equity Securities (Investments in Equity Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | $ 371,152 | $ 325,734 |
Equity securities, Gross unrealized gains | 24,742 | 13,523 |
Equity securities, Gross unrealized losses | (7,973) | (17,972) |
Equity securities | 387,921 | 321,285 |
Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | 19,311 | 18,305 |
Equity securities, Gross unrealized gains | 0 | 420 |
Equity securities, Gross unrealized losses | (4,092) | (3,258) |
Equity securities | 15,219 | 15,467 |
Common stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | 351,841 | 307,429 |
Equity securities, Gross unrealized gains | 24,742 | 13,103 |
Equity securities, Gross unrealized losses | (3,881) | (14,714) |
Equity securities | $ 372,702 | $ 305,818 |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Realized gains on sales of securities | $ 8,900 | $ 1,300 | $ 22,100 | $ 6,500 | |
Realized losses on sales of securities | 200 | $ 1,600 | 7,200 | $ 8,200 | |
Debt securities, Estimated fair value | 4,592,170 | 4,592,170 | $ 4,279,347 | ||
Estimated fair value, Unrealized loss position | 1,621,538 | 1,621,538 | 2,499,093 | ||
Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 1,537,105 | 1,537,105 | $ 2,275,871 | ||
Bank Loans | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 153,300 | 153,300 | |||
Bank Loans | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 18,100 | 18,100 | |||
Emerging Market Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 68,800 | 68,800 | |||
Emerging Market Securities | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 17,600 | 17,600 | |||
Non-Investment Grade | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 289,245 | 289,245 | |||
Non-Investment Grade | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 59,588 | 59,588 | |||
Non-Investment Grade | Bank Loans | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 141,800 | 141,800 | |||
Non-Investment Grade | Bank Loans | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 18,000 | 18,000 | |||
Non-Investment Grade | High Yield Corporate Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 128,100 | 128,100 | |||
Non-Investment Grade | High Yield Corporate Debt Securities | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | 36,300 | 36,300 | |||
Non-Investment Grade | Emerging Market Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Debt securities, Estimated fair value | 10,700 | 10,700 | |||
Non-Investment Grade | Emerging Market Securities | Debt Securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Estimated fair value, Unrealized loss position | $ 3,900 | $ 3,900 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt and Equity Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 1,147,431 | $ 2,195,994 |
Unrealized losses, Less than 12 months | (6,383) | (40,894) |
Estimated fair value, 12 months or longer | 474,107 | 303,099 |
Unrealized losses, 12 months or longer | (13,002) | (14,340) |
Estimated fair value, Total | 1,621,538 | 2,499,093 |
Unrealized losses, Total | (19,385) | (55,234) |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 1,139,715 | 2,004,746 |
Unrealized losses, Less than 12 months | (6,309) | (28,826) |
Estimated fair value, 12 months or longer | 397,390 | 271,125 |
Unrealized losses, 12 months or longer | (5,103) | (8,436) |
Estimated fair value, Total | 1,537,105 | 2,275,871 |
Unrealized losses, Total | (11,412) | (37,262) |
Debt Securities | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 55,705 | 105,701 |
Unrealized losses, Less than 12 months | (463) | (1,285) |
Estimated fair value, 12 months or longer | 0 | 1,654 |
Unrealized losses, 12 months or longer | 0 | (16) |
Estimated fair value, Total | 55,705 | 107,355 |
Unrealized losses, Total | (463) | (1,301) |
Debt Securities | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 223,714 | 133,465 |
Unrealized losses, Less than 12 months | (1,941) | (733) |
Estimated fair value, 12 months or longer | 16,401 | 13,190 |
Unrealized losses, 12 months or longer | (282) | (112) |
Estimated fair value, Total | 240,115 | 146,655 |
Unrealized losses, Total | (2,223) | (845) |
Debt Securities | Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 32,714 | 13,601 |
Unrealized losses, Less than 12 months | (313) | (890) |
Estimated fair value, 12 months or longer | 363 | 267 |
Unrealized losses, 12 months or longer | (29) | (125) |
Estimated fair value, Total | 33,077 | 13,868 |
Unrealized losses, Total | (342) | (1,015) |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 749,900 | 1,096,301 |
Unrealized losses, Less than 12 months | (2,654) | (9,424) |
Estimated fair value, 12 months or longer | 339,896 | 213,020 |
Unrealized losses, 12 months or longer | (3,509) | (5,615) |
Estimated fair value, Total | 1,089,796 | 1,309,321 |
Unrealized losses, Total | (6,163) | (15,039) |
Debt Securities | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 5,706 | 191,035 |
Unrealized losses, Less than 12 months | (123) | (2,497) |
Estimated fair value, 12 months or longer | 0 | 18,237 |
Unrealized losses, 12 months or longer | 0 | (304) |
Estimated fair value, Total | 5,706 | 209,272 |
Unrealized losses, Total | (123) | (2,801) |
Debt Securities | U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 50,855 | 361,842 |
Unrealized losses, Less than 12 months | (634) | (11,272) |
Estimated fair value, 12 months or longer | 30,740 | 13,511 |
Unrealized losses, 12 months or longer | (1,001) | (1,211) |
Estimated fair value, Total | 81,595 | 375,353 |
Unrealized losses, Total | (1,635) | (12,483) |
Debt Securities | Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 21,121 | 102,801 |
Unrealized losses, Less than 12 months | (181) | (2,725) |
Estimated fair value, 12 months or longer | 9,990 | 11,246 |
Unrealized losses, 12 months or longer | (282) | (1,053) |
Estimated fair value, Total | 31,111 | 114,047 |
Unrealized losses, Total | (463) | (3,778) |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 7,716 | 191,248 |
Unrealized losses, Less than 12 months | (74) | (12,068) |
Estimated fair value, 12 months or longer | 76,717 | 31,974 |
Unrealized losses, 12 months or longer | (7,899) | (5,904) |
Estimated fair value, Total | 84,433 | 223,222 |
Unrealized losses, Total | $ (7,973) | $ (17,972) |
Debt and Equity Securities (I41
Debt and Equity Securities (Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized Cost | $ 4,541,515 | $ 4,290,864 |
Debt securities, Estimated fair value | 4,592,170 | 4,279,347 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 35,270 | |
Amortized cost, Due after one through five years | 68,799 | |
Amortized cost, Due after five through ten years | 16,147 | |
Amortized cost, Due after ten years | 28,592 | |
Debt Securities, Amortized Cost | 148,808 | 130,252 |
Estimated fair value, Due in one year or less | 35,293 | |
Estimated fair value, Due after one through five years | 69,127 | |
Estimated fair value, Due after five through ten years | 16,660 | |
Estimated fair value, Due after ten years | 29,354 | |
Debt securities, Estimated fair value | 150,434 | 129,372 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 47,544 | |
Amortized cost, Due after one through five years | 331,550 | |
Amortized cost, Due after five through ten years | 214,529 | |
Amortized cost, Due after ten years | 313,272 | |
Debt Securities, Amortized Cost | 906,895 | 692,000 |
Estimated fair value, Due in one year or less | 47,615 | |
Estimated fair value, Due after one through five years | 337,258 | |
Estimated fair value, Due after five through ten years | 221,613 | |
Estimated fair value, Due after ten years | 317,751 | |
Debt securities, Estimated fair value | 924,237 | 703,795 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 4,447 | |
Amortized cost, Due after one through five years | 107,304 | |
Amortized cost, Due after five through ten years | 11,240 | |
Amortized cost, Due after ten years | 20,862 | |
Debt Securities, Amortized Cost | 143,853 | 129,984 |
Estimated fair value, Due in one year or less | 4,482 | |
Estimated fair value, Due after one through five years | 108,323 | |
Estimated fair value, Due after five through ten years | 11,702 | |
Estimated fair value, Due after ten years | 20,851 | |
Debt securities, Estimated fair value | 145,358 | 130,101 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 20,771 | |
Amortized cost, Due after one through five years | 82,989 | |
Amortized cost, Due after five through ten years | 47,203 | |
Amortized cost, Due after ten years | 41,467 | |
Debt Securities, Amortized Cost | 192,430 | 419,869 |
Estimated fair value, Due in one year or less | 20,781 | |
Estimated fair value, Due after one through five years | 83,238 | |
Estimated fair value, Due after five through ten years | 47,561 | |
Estimated fair value, Due after ten years | 43,597 | |
Debt securities, Estimated fair value | 195,177 | 418,091 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 15,513 | |
Amortized cost, Due after one through five years | 318,116 | |
Amortized cost, Due after five through ten years | 274,598 | |
Amortized cost, Due after ten years | 66,424 | |
Debt Securities, Amortized Cost | 674,651 | 642,869 |
Estimated fair value, Due in one year or less | 15,578 | |
Estimated fair value, Due after one through five years | 324,386 | |
Estimated fair value, Due after five through ten years | 281,216 | |
Estimated fair value, Due after ten years | 69,558 | |
Debt securities, Estimated fair value | 690,738 | 634,683 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 9,521 | |
Amortized cost, Due after one through five years | 114,704 | |
Amortized cost, Due after five through ten years | 110,180 | |
Amortized cost, Due after ten years | 10,822 | |
Debt Securities, Amortized Cost | 245,227 | 210,162 |
Estimated fair value, Due in one year or less | 9,532 | |
Estimated fair value, Due after one through five years | 116,436 | |
Estimated fair value, Due after five through ten years | 112,776 | |
Estimated fair value, Due after ten years | 11,685 | |
Debt securities, Estimated fair value | 250,429 | $ 207,632 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 133,066 | |
Amortized cost, Due after one through five years | 1,023,462 | |
Amortized cost, Due after five through ten years | 673,897 | |
Amortized cost, Due after ten years | 481,439 | |
Debt Securities, Amortized Cost | 2,311,864 | |
Estimated fair value, Due in one year or less | 133,281 | |
Estimated fair value, Due after one through five years | 1,038,768 | |
Estimated fair value, Due after five through ten years | 691,528 | |
Estimated fair value, Due after ten years | 492,796 | |
Debt securities, Estimated fair value | 2,356,373 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 2,229,651 | |
Estimated fair value | $ 2,235,797 |
Debt and Equity Securities (Com
Debt and Equity Securities (Composition of Investment Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 4,592,170 | $ 4,279,347 |
Equity securities | $ 387,921 | 321,285 |
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,935,121 | |
Percentage of investment portfolio by credit rating agencies | 85.40% | |
Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 85.70% | |
Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 367,804 | |
Percentage of investment portfolio by credit rating agencies | 8.20% | |
Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 8.00% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 289,245 | |
Percentage of investment portfolio by credit rating agencies | 6.40% | |
Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 6.30% | |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 150,434 | 129,372 |
U.S. Treasury Bonds | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
U.S. Treasury Bonds | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 150,434 | |
U.S. Treasury Bonds | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
U.S. Treasury Bonds | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
U.S. Treasury Bonds | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
U.S. Treasury Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
U.S. Treasury Bonds | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 924,237 | 703,795 |
Municipal Bonds | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Municipal Bonds | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 879,726 | |
Municipal Bonds | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 95.20% | |
Municipal Bonds | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 35,861 | |
Municipal Bonds | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 3.80% | |
Municipal Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 8,650 | |
Municipal Bonds | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 1.00% | |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 145,358 | 130,101 |
Foreign Government Bonds | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Foreign Government Bonds | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 121,153 | |
Foreign Government Bonds | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 83.40% | |
Foreign Government Bonds | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 22,003 | |
Foreign Government Bonds | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 15.10% | |
Foreign Government Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,202 | |
Foreign Government Bonds | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 1.50% | |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 195,177 | 418,091 |
Governmental Agency Bonds | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Governmental Agency Bonds | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 195,177 | |
Governmental Agency Bonds | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Governmental Agency Bonds | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Governmental Agency Bonds | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
Governmental Agency Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Governmental Agency Bonds | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,235,797 | 2,055,673 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,235,797 | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
Governmental Agency Mortgage-Backed Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Governmental Agency Mortgage-Backed Securities | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 690,738 | 634,683 |
U.S. Corporate Debt Securities | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
U.S. Corporate Debt Securities | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 237,952 | |
U.S. Corporate Debt Securities | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 34.50% | |
U.S. Corporate Debt Securities | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 222,588 | |
U.S. Corporate Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 32.20% | |
U.S. Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 230,198 | |
U.S. Corporate Debt Securities | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 33.30% | |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 250,429 | 207,632 |
Foreign Corporate Debt Securities | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Foreign Corporate Debt Securities | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 114,882 | |
Foreign Corporate Debt Securities | Investment Grade | A- Rating or Higher | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 45.90% | |
Foreign Corporate Debt Securities | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 87,352 | |
Foreign Corporate Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 34.90% | |
Foreign Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 48,195 | |
Foreign Corporate Debt Securities | Non-Investment Grade | Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 19.20% | |
Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities | $ 15,219 | $ 15,467 |
Preferred stocks | Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Preferred stocks | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities | $ 0 | |
Preferred stocks | Investment Grade | A- Rating or Higher | Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 0.00% | |
Preferred stocks | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities | $ 8,987 | |
Preferred stocks | Investment Grade | BBB+ to BBB- Ratings | Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 59.10% | |
Preferred stocks | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities | $ 6,232 | |
Preferred stocks | Non-Investment Grade | Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investment portfolio by credit rating agencies | 40.90% | |
Available For Sale Securities Excluding Common Stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Total | $ 4,607,389 | |
Available For Sale Securities Excluding Common Stocks | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Total | 3,935,121 | |
Available For Sale Securities Excluding Common Stocks | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Total | 376,791 | |
Available For Sale Securities Excluding Common Stocks | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Total | $ 295,477 |
Debt and Equity Securities (C43
Debt and Equity Securities (Composition of Investment Portfolio in Unrealized Loss Position by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,621,538 | $ 2,499,093 |
Percentage of investments in unrealized loss position | 100.00% | |
Available For Sale Securities Excluding Common Stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,552,324 | |
Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investments in unrealized loss position | 91.20% | |
Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investments in unrealized loss position | 4.60% | |
Investment Grade | Available For Sale Securities Excluding Common Stocks | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,414,863 | |
Investment Grade | Available For Sale Securities Excluding Common Stocks | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 71,641 | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of investments in unrealized loss position | 4.20% | |
Non-Investment Grade | Available For Sale Securities Excluding Common Stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 65,820 | |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,537,105 | 2,275,871 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 55,705 | 107,355 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 240,115 | 146,655 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 33,077 | 13,868 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,089,796 | 1,309,321 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 5,706 | 209,272 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 81,595 | 375,353 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 31,111 | 114,047 |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,414,863 | |
Percentage of investments in unrealized loss position | 92.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 55,705 | |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 233,406 | |
Percentage of investments in unrealized loss position | 97.20% | |
Debt Securities | Investment Grade | A- Rating or Higher | Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 19,904 | |
Percentage of investments in unrealized loss position | 60.10% | |
Debt Securities | Investment Grade | A- Rating or Higher | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,089,796 | |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 5,706 | |
Percentage of investments in unrealized loss position | 100.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 7,342 | |
Percentage of investments in unrealized loss position | 9.00% | |
Debt Securities | Investment Grade | A- Rating or Higher | Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 3,004 | |
Percentage of investments in unrealized loss position | 9.70% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 62,654 | |
Percentage of investments in unrealized loss position | 4.10% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 5,332 | |
Percentage of investments in unrealized loss position | 2.20% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 12,197 | |
Percentage of investments in unrealized loss position | 36.90% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 29,664 | |
Percentage of investments in unrealized loss position | 36.40% | |
Debt Securities | Investment Grade | BBB+ to BBB- Ratings | Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 15,461 | |
Percentage of investments in unrealized loss position | 49.70% | |
Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 59,588 | |
Percentage of investments in unrealized loss position | 3.90% | |
Debt Securities | Non-Investment Grade | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Non-Investment Grade | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 1,377 | |
Percentage of investments in unrealized loss position | 0.60% | |
Debt Securities | Non-Investment Grade | Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 976 | |
Percentage of investments in unrealized loss position | 3.00% | |
Debt Securities | Non-Investment Grade | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Non-Investment Grade | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Debt Securities | Non-Investment Grade | U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 44,589 | |
Percentage of investments in unrealized loss position | 54.60% | |
Debt Securities | Non-Investment Grade | Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 12,646 | |
Percentage of investments in unrealized loss position | 40.60% | |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 84,433 | $ 223,222 |
Equity securities | Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 15,219 | |
Percentage of investments in unrealized loss position | 100.00% | |
Equity securities | Investment Grade | A- Rating or Higher | Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 0 | |
Percentage of investments in unrealized loss position | 0.00% | |
Equity securities | Investment Grade | BBB+ to BBB- Ratings | Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 8,987 | |
Percentage of investments in unrealized loss position | 59.10% | |
Equity securities | Non-Investment Grade | Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Unrealized loss position | $ 6,232 | |
Percentage of investments in unrealized loss position | 40.90% |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Operating Segment) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 964,342 |
Acquisitions | 49,570 |
Foreign currency translation | 1,146 |
Other adjustments | (294) |
Ending balance | 1,014,764 |
Title Insurance and Services | |
Goodwill [Line Items] | |
Beginning balance | 917,577 |
Acquisitions | 49,570 |
Foreign currency translation | 1,146 |
Other adjustments | (294) |
Ending balance | 967,999 |
Specialty Insurance | |
Goodwill [Line Items] | |
Beginning balance | 46,765 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Other adjustments | 0 |
Ending balance | $ 46,765 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($)ReportingUnit | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Number of reporting units | ReportingUnit | 4 |
Goodwill impairment losses | $ 0 |
Accumulated goodwill impairment | $ 0 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 95,777 | $ 93,572 |
Noncompete agreements | 28,174 | 26,963 |
Trademarks | 8,621 | 9,341 |
Internal-use software licenses | 11,006 | |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 146,418 | 132,716 |
Accumulated amortization | (111,898) | (101,479) |
Finite-lived intangible assets, net | 34,520 | 31,237 |
Licenses | 16,897 | 16,877 |
Other intangibles assets, net | $ 51,417 | $ 48,114 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expense | $ 3.7 | $ 2.3 | $ 9.3 | $ 7.1 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Remainder of 2016 | $ 4,490 |
2,017 | 11,163 |
2,018 | 6,763 |
2,019 | 4,401 |
2,020 | 2,278 |
2,021 | $ 1,151 |
Reserve for Known and Incurre49
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Insurance [Abstract] | ||
Known title claims, amount | $ 74,206 | $ 87,543 |
Incurred but not reported claims, amount | 886,643 | 844,364 |
Total title claims, amount | 960,849 | 931,907 |
Non-title claims, amount | 57,191 | 51,973 |
Total loss reserves, amount | $ 1,018,040 | $ 983,880 |
Known title claims, percent | 7.30% | 8.90% |
Incurred but not reported claims, percent | 87.10% | 85.80% |
Total title claims, percent | 94.40% | 94.70% |
Non-title claims, percent | 5.60% | 5.30% |
Total loss reserves, percent | 100.00% | 100.00% |
Reserve for Known and Incurre50
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Insurance [Abstract] | ||||
Provision for title loss, percentage of title premiums and escrow fees | 5.50% | 6.60% | 5.50% | 6.60% |
Ultimate loss rate | 5.00% | 6.00% | ||
Estimated increase in loss reserve for prior policy years | $ 5.8 | $ 6.2 |
Notes and Contracts Payable (Na
Notes and Contracts Payable (Narrative) (Detail) | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Credit facility, maximum borrowing capacity | $ 700,000,000 |
Reduction in available borrowing capacity under credit facility | 540,000,000 |
Outstanding borrowings under credit facility | $ 160,000,000 |
Credit facility interest rate | 2.28% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rates | 35.70% | 34.30% | 33.70% | 34.40% | |
Statutory federal income tax rate | 35.00% | ||||
Net payable related to spin-off tax liabilities | $ 37.5 | $ 37.5 | $ 36.5 | ||
Liability for income taxes associated with uncertain tax positions | 26.8 | 26.8 | 23.8 | ||
Offsetting tax benefits related to uncertain tax positions | 3.6 | 3.6 | 3.4 | ||
Uncertain tax positions, net | 23.2 | 23.2 | 20.4 | ||
Accrued interest and penalties on uncertain tax positions | $ 9.5 | 9.5 | 9.7 | ||
Other tax benefits related to interest and penalties of uncertain tax positions | $ 4.4 | $ 4.1 | |||
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 significantly decrease within the next 12 months. This change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the Company | $ 107,320 | $ 75,542 | $ 261,970 | $ 206,520 |
Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) | 0 | 68 | 0 | 230 |
Net income allocated to common stockholders | $ 107,320 | $ 75,474 | $ 261,970 | $ 206,290 |
Basic weighted-average shares | 110,571 | 108,647 | 110,423 | 108,284 |
Effect of dilutive employee stock options and RSUs | 680 | 1,357 | 583 | 1,422 |
Diluted weighted-average shares | 111,251 | 110,004 | 111,006 | 109,706 |
Basic | $ 0.97 | $ 0.69 | $ 2.37 | $ 1.91 |
Diluted | $ 0.96 | $ 0.69 | $ 2.36 | $ 1.88 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options and Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the weighted-average diluted common shares outstanding | 0 | |||
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from the weighted-average diluted common shares outstanding | 2 | 17 | 1 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Cost) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service costs | $ 260 | $ 390 | $ 781 | $ 1,170 |
Interest costs | 5,999 | 6,786 | 18,000 | 20,805 |
Expected return on plan assets | (3,083) | (5,341) | (9,250) | (16,237) |
Amortization of net actuarial loss | 7,043 | 7,613 | 21,153 | 24,596 |
Amortization of prior service credit | (1,211) | (1,041) | (3,633) | (3,122) |
Net periodic cost | $ 9,008 | $ 8,407 | $ 27,051 | $ 27,212 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2015 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Contribution to partially fund the pension plan | $ 55.9 | |||
Estimated future contribution to pension plan | 44 | |||
Net unrealized accumulated other comprehensive loss, before tax | $ 197 | |||
Estimated other termination related expenses, before tax will be recognized | $ 15 | |||
Scenario Forecast | ||||
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Net unrealized losses recognized | $ 81 | $ 131 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | $ 4,980,091 | $ 4,600,632 |
Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 4,592,170 | 4,279,347 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 387,921 | 321,285 |
U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 150,434 | 129,372 |
Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 924,237 | 703,795 |
Foreign Government Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 145,358 | 130,101 |
Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 195,177 | 418,091 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 2,235,797 | 2,055,673 |
U.S. Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 690,738 | 634,683 |
Foreign Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 250,429 | 207,632 |
Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,219 | 15,467 |
Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 372,702 | 305,818 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 387,921 | 321,285 |
Level 1 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 387,921 | 321,285 |
Level 1 | U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Foreign Government Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | U.S. Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Foreign Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 1 | Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,219 | 15,467 |
Level 1 | Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 372,702 | 305,818 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 4,572,910 | 4,229,208 |
Level 2 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 4,572,910 | 4,229,208 |
Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 2 | U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 150,434 | 129,372 |
Level 2 | Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 924,237 | 703,795 |
Level 2 | Foreign Government Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 145,358 | 130,101 |
Level 2 | Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 195,177 | 418,091 |
Level 2 | Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 2,235,797 | 2,055,673 |
Level 2 | U.S. Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 673,239 | 591,116 |
Level 2 | Foreign Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 248,668 | 201,060 |
Level 2 | Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 2 | Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 19,260 | 50,139 |
Level 3 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 19,260 | 50,139 |
Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | Foreign Government Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | U.S. Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 17,499 | 43,567 |
Level 3 | Foreign Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 1,761 | 6,572 |
Level 3 | Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 0 | 0 |
Level 3 | Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | 0 | 0 | 0 | 0 |
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Transfers into Level 3 | 5,968,000 | 1,921,000 | 269,000 | 0 |
Transfers out of Level 3 | $ 4,546,000 | $ 4,011,000 | $ 31,586,000 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Net realized investment gains (losses) | $ 9,516,000 | $ (3,130,000) | $ 22,692,000 | $ (215,000) |
Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 15,216,000 | 11,358,000 | 50,139,000 | 16,538,000 |
Transfers into Level 3 | 5,968,000 | 1,921,000 | 269,000 | 0 |
Transfers out of Level 3 | (4,546,000) | (4,011,000) | (31,586,000) | 0 |
Included in earnings | 5,000 | (2,000) | (136,000) | (1,014,000) |
Included in other comprehensive income (loss) | 158,000 | (40,000) | 1,141,000 | (583,000) |
Purchases | 2,911,000 | 1,698,000 | 11,375,000 | 8,831,000 |
Sales | (96,000) | (92,000) | (5,795,000) | (15,361,000) |
Settlements | (356,000) | (2,474,000) | (6,147,000) | (53,000) |
Fair value at end of period | 19,260,000 | 8,358,000 | 19,260,000 | 8,358,000 |
Net realized investment gains (losses) | 0 | 0 | (5,000) | 0 |
U.S. Corporate Debt Securities | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 14,493,000 | 9,314,000 | 43,567,000 | 0 |
Transfers into Level 3 | 5,968,000 | 1,899,000 | 269,000 | 0 |
Transfers out of Level 3 | (4,546,000) | (2,634,000) | (27,764,000) | 0 |
Included in earnings | 5,000 | (2,000) | (88,000) | 1,000 |
Included in other comprehensive income (loss) | 115,000 | (31,000) | 1,053,000 | 0 |
Purchases | 1,866,000 | 1,694,000 | 10,132,000 | 8,316,000 |
Sales | (46,000) | (92,000) | (4,750,000) | (427,000) |
Settlements | (356,000) | (2,312,000) | (4,920,000) | (54,000) |
Fair value at end of period | 17,499,000 | 7,836,000 | 17,499,000 | 7,836,000 |
Net realized investment gains (losses) | 0 | 0 | (5,000) | 0 |
Foreign Corporate Debt Securities | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 723,000 | 2,044,000 | 6,572,000 | 0 |
Transfers into Level 3 | 0 | 22,000 | 0 | 0 |
Transfers out of Level 3 | 0 | (1,377,000) | (3,822,000) | 0 |
Included in earnings | 0 | 0 | (48,000) | 0 |
Included in other comprehensive income (loss) | 43,000 | (9,000) | 88,000 | 6,000 |
Purchases | 1,045,000 | 4,000 | 1,243,000 | 515,000 |
Sales | (50,000) | 0 | (1,045,000) | 0 |
Settlements | 0 | (162,000) | (1,227,000) | 1,000 |
Fair value at end of period | 1,761,000 | 522,000 | 1,761,000 | 522,000 |
Net realized investment gains (losses) | $ 0 | 0 | $ 0 | 0 |
Non-Agency Mortgage-Backed Securities | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 16,538,000 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Included in earnings | (1,015,000) | |||
Included in other comprehensive income (loss) | (589,000) | |||
Purchases | 0 | |||
Sales | (14,934,000) | |||
Settlements | 0 | |||
Fair value at end of period | $ 0 | 0 | ||
Net realized investment gains (losses) | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,443,312 | $ 1,027,321 |
Deposits with banks | 22,257 | 23,224 |
Notes receivable, net | 7,007 | 5,866 |
Liabilities: | ||
Deposits | 3,218,128 | 2,699,015 |
Notes and contracts payable | 737,944 | 581,052 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,443,312 | 1,027,321 |
Deposits with banks | 22,214 | 23,211 |
Notes receivable, net | 6,893 | 5,791 |
Liabilities: | ||
Deposits | 3,218,128 | 2,699,015 |
Notes and contracts payable | 763,860 | 590,970 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,443,312 | 1,027,321 |
Deposits with banks | 1,110 | 1,103 |
Notes receivable, net | 0 | 0 |
Liabilities: | ||
Deposits | 3,218,128 | 2,699,015 |
Notes and contracts payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 21,104 | 22,108 |
Notes receivable, net | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Notes and contracts payable | 758,073 | 583,893 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 6,893 | 5,791 |
Liabilities: | ||
Deposits | 0 | 0 |
Notes and contracts payable | $ 5,787 | $ 7,077 |
Share-Based Compensation (Expen
Share-Based Compensation (Expenses Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 6,128 | $ 4,698 | $ 28,096 | $ 20,261 |
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 5,401 | 4,059 | 25,766 | 18,278 |
Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 68 | 68 | 203 | 203 |
Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 659 | $ 571 | $ 2,127 | $ 1,780 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - RSUs shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
RSU, Shares | |
RSUs unvested at December 31, 2015 | shares | 1,354 |
Granted during 2016 | shares | 967 |
Vested during 2016 | shares | (726) |
Forfeited during 2016 | shares | (20) |
RSUs unvested at September 30, 2016 | shares | 1,575 |
RSU, Weighted-average grant-date fair value | |
Beginning Balance, Weighted-average grant-date fair value | $ / shares | $ 29.20 |
Granted, Weighted-average grant-date fair value | $ / shares | 36.77 |
Vested, Weighted-average grant-date fair value | $ / shares | 30.76 |
Forfeited, Weighted-average grant-date fair value | $ / shares | 31.48 |
Ending Balance, Weighted-average grant-date fair value | $ / shares | $ 33.10 |
Share-Based Compensation (Sum63
Share-Based Compensation (Summary of Stock Option Activity) (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Stock option | |
Balance at December 31, 2015 | shares | 132 |
Exercised during 2016 | shares | 0 |
Balance at September 30, 2016 | shares | 132 |
Vested and expected to vest at September 30, 2016 | shares | 132 |
Exercisable at September 30, 2016 | shares | 66 |
Stock option, weighted-average exercise price | |
Beginning Balance, Weighted-average exercise price | $ / shares | $ 27.66 |
Exercised, Weighted-average exercise price | $ / shares | 0 |
Ending Balance, Weighted-average exercise price | $ / shares | 27.66 |
Vested and expected to vest at September 30, 2016, Weighted-average exercise price | $ / shares | 27.66 |
Exercisable at September 30, 2016, Weighted-average exercise price | $ / shares | $ 27.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |
Ending Balance, Weighted-average remaining contractual term, years | 7 years 2 months 12 days |
Vested and expected to vest at September 30, 2016, Weighted-average remaining contractual term, years | 7 years 2 months 12 days |
Exercisable at September 30, 2016, Weighted-average remaining contractual term, years | 7 years 2 months 12 days |
Ending Balance, Aggregate intrinsic value | $ | $ 1,391 |
Vested and expected to vest at September 30, 2016, Aggregate intrinsic value | $ | 1,391 |
Exercisable at September 30, 2016, Aggregate intrinsic value | $ | $ 696 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (AOCI) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | $ (239,000) | ||||
Change in unrealized gains (losses) on securities | 83,390 | ||||
Change in foreign currency translation adjustment | 3,066 | ||||
Amortization of net actuarial loss | 21,153 | ||||
Amortization of prior service cost | (3,633) | ||||
Tax effect | $ (3,399) | $ 2,266 | (38,004) | $ 833 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (173,028) | (173,028) | |||
Accumulated other comprehensive loss | (173,052) | (173,052) | $ (239,003) | ||
Allocated to noncontrolling interests | 24 | 24 | |||
Unrealized Gains (Losses) on Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (16,401) | ||||
Change in unrealized gains (losses) on securities | 83,390 | ||||
Tax effect | (1,169) | 4,780 | (31,303) | 9,047 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 35,686 | 35,686 | |||
Accumulated other comprehensive loss | 35,662 | 35,662 | |||
Allocated to noncontrolling interests | 24 | 24 | |||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (57,242) | ||||
Change in foreign currency translation adjustment | 3,066 | ||||
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (54,176) | (54,176) | |||
Accumulated other comprehensive loss | (54,176) | (54,176) | |||
Pension Benefit Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (165,357) | ||||
Amortization of net actuarial loss | 21,153 | ||||
Amortization of prior service cost | (3,633) | ||||
Tax effect | (2,230) | $ (2,514) | (6,701) | $ (8,214) | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (154,538) | (154,538) | |||
Accumulated other comprehensive loss | $ (154,538) | $ (154,538) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | $ 8,976 | $ (31,030) | $ 99,678 | $ (59,176) |
Reclassifications out of AOCI | (2,855) | 6,464 | 4,298 | 23,019 |
Tax effect | (3,399) | 2,266 | (38,004) | 833 |
Total other comprehensive income (loss), net of tax | 2,722 | (22,300) | 65,972 | (35,324) |
Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | 12,435 | (15,614) | 96,612 | (29,966) |
Reclassifications out of AOCI | (8,687) | (108) | (13,222) | 1,545 |
Tax effect | (1,169) | 4,780 | (31,303) | 9,047 |
Total other comprehensive income (loss), net of tax | 2,579 | (10,942) | 52,087 | (19,374) |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | (3,459) | (15,416) | 3,066 | (29,210) |
Total other comprehensive income (loss), net of tax | (3,459) | (15,416) | 3,066 | (29,210) |
Pension Benefit Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassifications out of AOCI | 5,832 | 6,572 | 17,520 | 21,474 |
Tax effect | (2,230) | (2,514) | (6,701) | (8,214) |
Total other comprehensive income (loss), net of tax | $ 3,602 | $ 4,058 | $ 10,819 | $ 13,260 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income before income taxes | $ 166,931 | $ 115,396 | $ 396,130 | $ 315,966 | |
Tax effect | 59,539 | 39,637 | 133,615 | 108,831 | |
Reclassifications out of AOCI | 2,855 | (6,464) | (4,298) | (23,019) | |
Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications out of AOCI | 8,687 | 108 | 13,222 | (1,545) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications out of AOCI | [1] | (7,043) | (7,613) | (21,153) | (24,596) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications out of AOCI | [1] | 1,211 | 1,041 | 3,633 | 3,122 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications out of AOCI | (5,832) | (6,572) | (17,520) | (21,474) | |
Tax effect | 2,229 | 2,514 | 6,701 | 8,214 | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains (losses) on sales of securities | 8,687 | 108 | 13,707 | (1,545) | |
Net other-than-temporary impairment losses | (485) | ||||
Income before income taxes | 8,687 | 108 | 13,222 | (1,545) | |
Tax effect | $ (3,261) | $ (33) | $ (5,057) | $ 492 | |
[1] | These components of AOCI are included in the computation of net periodic cost. See Note 10 Employee Benefit Plans for additional details |
Business Combinations (Narrativ
Business Combinations (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Business Combinations [Abstract] | ||
Acquisition purchase price | $ 56.9 | $ 75.5 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2016State | |
Segment Reporting [Abstract] | |
Number of states issues title insurance policies | 49 |
Number of states licensed to issues property and casualty insurance policies | 50 |
Number of states issues property and casualty policies | 47 |
Number of states issues home warranty contracts | 39 |
Segment Information (Schedule o
Segment Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,508,344 | $ 1,383,915 | $ 4,071,589 | $ 3,818,788 |
Income (loss) before income taxes | 166,931 | 115,396 | 396,130 | 315,966 |
Depreciation and amortization | 24,491 | 21,072 | 70,905 | 63,389 |
Capital expenditures | 42,792 | 32,238 | 103,815 | 94,274 |
Operating Segments | Title Insurance and Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,395,727 | 1,288,156 | 3,750,118 | 3,534,987 |
Income (loss) before income taxes | 188,706 | 136,984 | 448,815 | 361,223 |
Depreciation and amortization | 22,994 | 19,753 | 66,510 | 59,443 |
Capital expenditures | 41,948 | 31,309 | 99,887 | 91,468 |
Operating Segments | Specialty Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 109,782 | 101,210 | 317,246 | 293,398 |
Income (loss) before income taxes | 1,781 | 1,684 | 18,744 | 29,446 |
Depreciation and amortization | 1,401 | 1,197 | 4,107 | 3,579 |
Capital expenditures | 844 | 927 | 3,928 | 2,804 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,855 | (5,428) | 4,265 | (9,148) |
Income (loss) before income taxes | (23,556) | (23,272) | (71,429) | (74,703) |
Depreciation and amortization | 96 | 122 | 288 | 367 |
Capital expenditures | 2 | 2 | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (20) | $ (23) | $ (40) | $ (449) |