Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 21, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FAF | |
Entity Registrant Name | First American Financial Corp | |
Entity Central Index Key | 0001472787 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 112,336,298 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-34580 | |
Entity Tax Identification Number | 26-1911571 | |
Entity Address, Address Line One | 1 First American Way | |
Entity Address, City or Town | Santa Ana | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92707-5913 | |
City Area Code | 714 | |
Local Phone Number | 250-3000 | |
Title of 12(b) Security | Common stock, $0.00001 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 1,710,999 | $ 1,467,129 |
Accounts and accrued income receivable, net | 351,816 | 325,686 |
Income taxes receivable | 20,703 | 11,007 |
Investments: | ||
Deposits with banks | 38,459 | 36,209 |
Debt securities, includes pledged securities of $93,152 and $110,975 | 5,882,421 | 5,713,811 |
Equity securities | 416,488 | 353,535 |
Other investments | 215,766 | 121,965 |
Investments, Total | 6,553,134 | 6,225,520 |
Secured financings receivable | 352,013 | 76,311 |
Property and equipment, net | 447,980 | 457,840 |
Operating lease assets | 288,406 | 0 |
Title plants and other indexes | 580,600 | 577,467 |
Deferred income taxes | 16,636 | 16,636 |
Goodwill | 1,149,765 | 1,144,166 |
Other intangible assets, net | 92,855 | 109,372 |
Other assets | 239,185 | 219,501 |
Total assets | 11,804,092 | 10,630,635 |
Liabilities and Equity | ||
Deposits | 3,840,728 | 3,786,183 |
Accounts payable and accrued liabilities | 812,499 | 778,688 |
Deferred revenue | 261,463 | 243,280 |
Reserve for known and incurred but not reported claims | 1,054,724 | 1,042,679 |
Income taxes payable | 90,099 | 8,988 |
Deferred income taxes | 217,097 | 217,097 |
Operating lease liabilities | 319,445 | 0 |
Secured financings payable | 233,483 | 76,313 |
Notes and contracts payable | 728,332 | 732,019 |
Total liabilities | 7,557,870 | 6,885,247 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none | 0 | 0 |
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—112,336 shares and 111,496 shares | 1 | 1 |
Additional paid-in capital | 2,288,737 | 2,258,290 |
Retained earnings | 1,985,073 | 1,644,165 |
Accumulated other comprehensive loss | (31,670) | (160,575) |
Total stockholders’ equity | 4,242,141 | 3,741,881 |
Noncontrolling interests | 4,081 | 3,507 |
Total equity | 4,246,222 | 3,745,388 |
Total liabilities and equity | $ 11,804,092 | $ 10,630,635 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Pledged securities included in debt securities | $ 93,152 | $ 110,975 |
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 | 112,336,000 | 111,496,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Direct premiums and escrow fees | $ 728,610 | $ 649,375 | $ 1,910,830 | $ 1,854,835 |
Agent premiums | 656,154 | 615,113 | 1,701,538 | 1,701,831 |
Information and other | 208,297 | 198,680 | 581,858 | 596,090 |
Net investment income | 76,628 | 67,874 | 236,607 | 167,000 |
Net realized investment gains | 1,507 | 11,144 | 42,564 | 10,975 |
Total revenues | 1,671,196 | 1,542,186 | 4,473,397 | 4,330,731 |
Expenses | ||||
Personnel costs | 470,683 | 449,839 | 1,329,322 | 1,312,455 |
Premiums retained by agents | 518,824 | 485,621 | 1,344,517 | 1,341,808 |
Other operating expenses | 248,252 | 227,670 | 667,047 | 675,085 |
Provision for policy losses and other claims | 124,683 | 122,196 | 331,525 | 336,395 |
Depreciation and amortization | 31,719 | 31,729 | 97,537 | 92,534 |
Premium taxes | 19,484 | 18,774 | 50,887 | 51,837 |
Interest | 12,213 | 10,770 | 36,057 | 29,997 |
Total expenses | 1,425,858 | 1,346,599 | 3,856,892 | 3,840,111 |
Income before income taxes | 245,338 | 195,587 | 616,505 | 490,620 |
Income taxes | 57,171 | 44,126 | 131,263 | 107,896 |
Net income | 188,167 | 151,461 | 485,242 | 382,724 |
Less: Net income (loss) attributable to noncontrolling interests | 985 | (19) | 1,830 | (123) |
Net income attributable to the Company | $ 187,182 | $ 151,480 | $ 483,412 | $ 382,847 |
Net income per share attributable to the Company's stockholders (Note 10): | ||||
Basic | $ 1.65 | $ 1.34 | $ 4.28 | $ 3.40 |
Diluted | 1.65 | 1.34 | 4.26 | 3.38 |
Cash dividends declared per share | $ 0.42 | $ 0.42 | $ 1.26 | $ 1.18 |
Weighted-average common shares outstanding (Note 10): | ||||
Basic | 113,163 | 112,722 | 112,983 | 112,541 |
Diluted | 113,741 | 113,365 | 113,509 | 113,213 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 188,167 | $ 151,461 | $ 485,242 | $ 382,724 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on debt securities | 13,493 | (14,662) | 126,172 | (73,933) |
Foreign currency translation adjustment | (7,373) | 3,001 | 2,959 | (11,296) |
Pension benefit adjustment | (76) | 118 | (227) | 357 |
Total other comprehensive income (loss), net of tax | 6,044 | (11,543) | 128,904 | (84,872) |
Comprehensive income | 194,211 | 139,918 | 614,146 | 297,852 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 985 | (19) | 1,829 | (142) |
Comprehensive income attributable to the Company | $ 193,226 | $ 139,937 | $ 612,317 | $ 297,994 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2017 | $ 3,483,025 | $ 1 | $ 2,236,351 | $ 1,311,112 | $ (67,509) | $ 3,479,955 | $ 3,070 |
Balance, Shares at Dec. 31, 2017 | 110,925 | ||||||
Cumulative-effect adjustment | Accounting Standards Update 2016-01 | 0 | $ 0 | 0 | 40,550 | (40,550) | 0 | 0 |
Net income (loss) | 76,172 | 0 | 0 | 76,227 | 0 | 76,227 | (55) |
Dividends on common shares | (42,330) | 0 | 0 | (42,330) | 0 | (42,330) | 0 |
Shares issued in connection with share-based compensation, value | (12,606) | $ 0 | (11,759) | (847) | 0 | (12,606) | 0 |
Shares issued in connection with share-based compensation, shares | 620 | ||||||
Share-based compensation | 19,509 | $ 0 | 19,509 | 0 | 0 | 19,509 | 0 |
Net activity related to noncontrolling interests | (901) | 0 | 189 | 0 | 0 | 189 | (1,090) |
Other comprehensive income (loss) | (50,428) | 0 | 0 | 0 | (50,409) | (50,409) | (19) |
Balance, Value at Mar. 31, 2018 | 3,472,441 | $ 1 | 2,244,290 | 1,384,712 | (158,468) | 3,470,535 | 1,906 |
Balance, Shares at Mar. 31, 2018 | 111,545 | ||||||
Balance, Value at Dec. 31, 2017 | 3,483,025 | $ 1 | 2,236,351 | 1,311,112 | (67,509) | 3,479,955 | 3,070 |
Balance, Shares at Dec. 31, 2017 | 110,925 | ||||||
Net income (loss) | 382,724 | ||||||
Other comprehensive income (loss) | (84,872) | ||||||
Balance, Value at Sep. 30, 2018 | 3,675,998 | $ 1 | 2,266,830 | 1,600,296 | (192,912) | 3,674,215 | 1,783 |
Balance, Shares at Sep. 30, 2018 | 111,787 | ||||||
Balance, Value at Mar. 31, 2018 | 3,472,441 | $ 1 | 2,244,290 | 1,384,712 | (158,468) | 3,470,535 | 1,906 |
Balance, Shares at Mar. 31, 2018 | 111,545 | ||||||
Net income (loss) | 155,091 | $ 0 | 0 | 155,140 | 0 | 155,140 | (49) |
Dividends on common shares | (42,387) | 0 | 0 | (42,387) | 0 | (42,387) | 0 |
Shares issued in connection with share-based compensation, value | 1,377 | $ 0 | 2,204 | (827) | 0 | 1,377 | 0 |
Shares issued in connection with share-based compensation, shares | 113 | ||||||
Share-based compensation | 7,626 | $ 0 | 7,626 | 0 | 0 | 7,626 | 0 |
Net activity related to noncontrolling interests | (25) | 0 | 133 | 0 | 0 | 133 | (158) |
Other comprehensive income (loss) | (22,901) | 0 | 0 | 0 | (22,901) | (22,901) | 0 |
Balance, Value at Jun. 30, 2018 | 3,571,222 | $ 1 | 2,254,253 | 1,496,638 | (181,369) | 3,569,523 | 1,699 |
Balance, Shares at Jun. 30, 2018 | 111,658 | ||||||
Net income (loss) | 151,461 | $ 0 | 0 | 151,480 | 0 | 151,480 | (19) |
Dividends on common shares | (46,912) | 0 | 0 | (46,912) | 0 | (46,912) | 0 |
Shares issued in connection with share-based compensation, value | 4,556 | $ 0 | 5,466 | (910) | 0 | 4,556 | 0 |
Shares issued in connection with share-based compensation, shares | 129 | ||||||
Share-based compensation | 7,241 | $ 0 | 7,241 | 0 | 0 | 7,241 | 0 |
Net activity related to noncontrolling interests | (27) | 0 | (130) | 0 | 0 | (130) | 103 |
Other comprehensive income (loss) | (11,543) | 0 | 0 | 0 | (11,543) | (11,543) | 0 |
Balance, Value at Sep. 30, 2018 | 3,675,998 | $ 1 | 2,266,830 | 1,600,296 | (192,912) | 3,674,215 | 1,783 |
Balance, Shares at Sep. 30, 2018 | 111,787 | ||||||
Balance, Value at Dec. 31, 2018 | $ 3,745,388 | $ 1 | 2,258,290 | 1,644,165 | (160,575) | 3,741,881 | 3,507 |
Balance, Shares at Dec. 31, 2018 | 111,496 | 111,496 | |||||
Cumulative-effect adjustment | Accounting Standards Update 2016-02 | $ 1,283 | $ 0 | 0 | 1,283 | 0 | 1,283 | 0 |
Net income (loss) | 109,804 | 0 | 0 | 109,575 | 0 | 109,575 | 229 |
Dividends on common shares | (47,021) | 0 | 0 | (47,021) | 0 | (47,021) | 0 |
Purchase of Company shares | (2,066) | $ 0 | (2,066) | 0 | 0 | (2,066) | 0 |
Purchase of Company shares, shares | (47) | ||||||
Shares issued in connection with share-based compensation, value | (11,480) | $ 0 | (10,618) | (862) | 0 | (11,480) | 0 |
Shares issued in connection with share-based compensation, shares | 623 | ||||||
Share-based compensation | 19,597 | $ 0 | 19,597 | 0 | 0 | 19,597 | 0 |
Net activity related to noncontrolling interests | (1,286) | 0 | (60) | 0 | 0 | (60) | (1,226) |
Other comprehensive income (loss) | 66,317 | 0 | 0 | 0 | 66,318 | 66,318 | (1) |
Balance, Value at Mar. 31, 2019 | 3,880,536 | $ 1 | 2,265,143 | 1,707,140 | (94,257) | 3,878,027 | 2,509 |
Balance, Shares at Mar. 31, 2019 | 112,072 | ||||||
Balance, Value at Dec. 31, 2018 | $ 3,745,388 | $ 1 | 2,258,290 | 1,644,165 | (160,575) | 3,741,881 | 3,507 |
Balance, Shares at Dec. 31, 2018 | 111,496 | 111,496 | |||||
Net income (loss) | $ 485,242 | ||||||
Other comprehensive income (loss) | 128,904 | ||||||
Balance, Value at Sep. 30, 2019 | $ 4,246,222 | $ 1 | 2,288,737 | 1,985,073 | (31,670) | 4,242,141 | 4,081 |
Balance, Shares at Sep. 30, 2019 | 112,336 | 112,336 | |||||
Balance, Value at Mar. 31, 2019 | $ 3,880,536 | $ 1 | 2,265,143 | 1,707,140 | (94,257) | 3,878,027 | 2,509 |
Balance, Shares at Mar. 31, 2019 | 112,072 | ||||||
Net income (loss) | 187,271 | $ 0 | 0 | 186,655 | 0 | 186,655 | 616 |
Dividends on common shares | (47,084) | 0 | 0 | (47,084) | 0 | (47,084) | 0 |
Shares issued in connection with share-based compensation, value | 2,990 | $ 0 | 3,836 | (846) | 0 | 2,990 | 0 |
Shares issued in connection with share-based compensation, shares | 145 | ||||||
Share-based compensation | 7,758 | $ 0 | 7,758 | 0 | 0 | 7,758 | 0 |
Net activity related to noncontrolling interests | 20 | 0 | 0 | 0 | 0 | 0 | 20 |
Other comprehensive income (loss) | 56,543 | 0 | 0 | 0 | 56,543 | 56,543 | 0 |
Balance, Value at Jun. 30, 2019 | 4,088,034 | $ 1 | 2,276,737 | 1,845,865 | (37,714) | 4,084,889 | 3,145 |
Balance, Shares at Jun. 30, 2019 | 112,217 | ||||||
Net income (loss) | 188,167 | $ 0 | 0 | 187,182 | 0 | 187,182 | 985 |
Dividends on common shares | (47,139) | 0 | 0 | (47,139) | 0 | (47,139) | 0 |
Shares issued in connection with share-based compensation, value | 3,631 | $ 0 | 4,466 | (835) | 0 | 3,631 | 0 |
Shares issued in connection with share-based compensation, shares | 119 | ||||||
Share-based compensation | 7,556 | $ 0 | 7,556 | 0 | 0 | 7,556 | 0 |
Net activity related to noncontrolling interests | (71) | 0 | (22) | 0 | 0 | (22) | (49) |
Other comprehensive income (loss) | 6,044 | 0 | 0 | 0 | 6,044 | 6,044 | 0 |
Balance, Value at Sep. 30, 2019 | $ 4,246,222 | $ 1 | $ 2,288,737 | $ 1,985,073 | $ (31,670) | $ 4,242,141 | $ 4,081 |
Balance, Shares at Sep. 30, 2019 | 112,336 | 112,336 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 485,242 | $ 382,724 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for policy losses and other claims | 331,525 | 336,395 |
Depreciation and amortization | 97,537 | 92,534 |
Amortization of premiums and accretion of discounts on debt securities, net | 18,646 | 20,521 |
Net realized investment gains | (42,564) | (10,975) |
Share-based compensation | 34,911 | 34,376 |
Equity in earnings of equity method investments, net | (1,802) | (2,255) |
Dividends from equity method investments | 4,077 | 3,419 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ||
Claims paid, including assets acquired, net of recoveries | (305,174) | (333,970) |
Net change in income tax accounts | 17,523 | 12,301 |
Increase in accounts and accrued income receivable | (52,757) | (51,150) |
Increase (decrease) in accounts payable and accrued liabilities | 10,686 | (11,806) |
Increase in deferred revenue | 19,484 | 14,678 |
Other, net | (5,653) | (1,931) |
Cash provided by operating activities | 611,681 | 484,861 |
Cash flows from investing activities: | ||
Net cash effect of acquisitions/dispositions | (19,674) | (73,757) |
Net (increase) decrease in deposits with banks | (3,749) | 2,462 |
Purchases of debt and equity securities | (1,611,934) | (1,924,260) |
Proceeds from sales of debt and equity securities | 979,019 | 660,548 |
Proceeds from maturities of debt securities | 666,749 | 429,287 |
Net increase in other investments | (81,707) | (6,612) |
Advances under secured financing agreements | (5,311,828) | (1,537,657) |
Collections of secured financings receivable | 5,036,122 | 1,520,911 |
Capital expenditures | (78,158) | (87,319) |
Proceeds from sales of property and equipment | 105 | 1,670 |
Cash used for investing activities | (425,055) | (1,014,727) |
Cash flows from financing activities: | ||
Net change in deposits | 54,545 | 1,478,069 |
Borrowings under secured financing agreements | 5,195,063 | 1,537,593 |
Repayments of secured financings payable | (5,037,893) | (1,520,855) |
Borrowings under unsecured credit agreement | 160,000 | 0 |
Repayments of notes and contracts payable | (164,280) | (4,111) |
Net activity related to noncontrolling interests | (1,112) | (945) |
Net payments in connection with share-based compensation | (4,859) | (6,673) |
Purchase of Company shares | (2,066) | 0 |
Payments of cash dividends | (141,244) | (131,629) |
Cash provided by financing activities | 58,154 | 1,351,449 |
Effect of exchange rate changes on cash | (910) | (3,490) |
Net increase in cash and cash equivalents | 243,870 | 818,093 |
Cash and cash equivalents—Beginning of period | 1,467,129 | 1,387,226 |
Cash and cash equivalents—End of period | 1,710,999 | 2,205,319 |
Supplemental information: | ||
Interest | 34,053 | 28,030 |
Premium taxes | 55,229 | 56,396 |
Income taxes, less refunds of $930 and $1,047 | $ 113,723 | $ 95,041 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Cash Flows [Abstract] | ||
Income taxes, refunds | $ 930 | $ 1,047 |
Basis of Condensed Consolidated
Basis of Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
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 First American Financial Corporation (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2018. 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance that requires the rights and obligations associated with leasing arrangements to be reflected on the balance sheet in order to increase transparency and comparability among organizations. Under the updated guidance, lessees are 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. The updated guidance may either be adopted using a modified retrospective transition approach or may be initially applied on the adoption date with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted and initially applied the updated guidance on January 1, 2019. Upon adoption, the Company recognized deferred gains of $1.3 million on previous sale and operating leaseback transactions as a cumulative-effect adjustment to retained earnings. The Company elected to adopt the package of practical expedients allowed under the guidance, which was applied to all leases as of the adoption date. The package of practical expedients included (1) entities could choose not to reassess whether any expired or existing contracts are or contain leases, (2) entities could choose not to reassess the lease classification for any expired or existing leases, and (3) entities could choose not to reassess initial direct costs for any existing leases. See Note 4 Leases for further information on the Company’s leasing arrangements. Pending Accounting Pronouncements In August 2018, the FASB issued updated guidance that is intended to reduce potential diversity in practice in accounting for the costs of implementing cloud computing arrangements (i.e., hosting arrangements) that are service contracts. The updated guidance aligns the requirements for capitalizing implementation costs for these arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued updated guidance as part of its disclosure framework project intended to improve the effectiveness of disclosures in the notes to the financial statements. The updated guidance eliminates, adds and modifies certain disclosure requirements related to fair value measurements. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In January 2017, the FASB issued updated guidance intended to simplify how an entity tests goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the updated guidance, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. 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. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to have a material impact 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, 2019 | |
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 $8.7 billion and $7.6 billion at September 30, 2019 and December 31, 2018, respectively, of which $3.7 billion and $3.6 billion, respectively, were held at 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 are held at third-party financial institutions. Trust assets held or managed by First American Trust, FSB totaled $4.1 billion and $3.6 billion at September 30, 2019 and December 31, 2018, 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 as income or a reduction in expense in the condensed consolidated statements of income, 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 $2.7 billion at September 30, 2019 and December 31, 2018. 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, 2019 | |
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, 2019 U.S. Treasury bonds $ 208,873 $ 984 $ (283 ) $ 209,574 Municipal bonds 1,041,195 49,524 (129 ) 1,090,590 Foreign government bonds 159,039 2,437 (116 ) 161,360 Governmental agency bonds 364,815 8,736 (115 ) 373,436 Governmental agency mortgage-backed securities 3,155,538 40,519 (9,900 ) 3,186,157 U.S. corporate debt securities 564,505 19,278 (1,179 ) 582,604 Foreign corporate debt securities 270,978 8,106 (384 ) 278,700 $ 5,764,943 $ 129,584 $ (12,106 ) $ 5,882,421 December 31, 2018 U.S. Treasury bonds $ 162,904 $ 741 $ (1,139 ) $ 162,506 Municipal bonds 1,050,134 7,210 (12,309 ) 1,045,035 Foreign government bonds 158,885 571 (2,159 ) 157,297 Governmental agency bonds 319,115 1,145 (4,093 ) 316,167 Governmental agency mortgage-backed securities 3,219,585 12,030 (29,016 ) 3,202,599 U.S. corporate debt securities 575,646 1,113 (15,499 ) 561,260 Foreign corporate debt securities 274,881 551 (6,485 ) 268,947 $ 5,761,150 $ 23,361 $ (70,700 ) $ 5,713,811 Sales of debt securities resulted in realized gains of $3.3 million and $8.2 million, realized losses of $0.5 million and $5.2 million, and proceeds of $229.4 million and $852.1 million for the three and nine months ended September 30, 2019, respectively, and realized gains of $0.6 million and $1.9 million, realized losses of $3.1 million and $6.9 million, and proceeds of $183.1 million and $525.4 million for the three and nine months ended September 30, 2018, respectively. Gross unrealized losses on investments in debt securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses September 30, 2019 U.S. Treasury bonds $ 42,776 $ (271 ) $ 4,925 $ (12 ) $ 47,701 $ (283 ) Municipal bonds 42,084 (111 ) 3,397 (18 ) 45,481 (129 ) Foreign government bonds 26,049 (78 ) 10,801 (38 ) 36,850 (116 ) Governmental agency bonds 14,935 (32 ) 32,537 (83 ) 47,472 (115 ) Governmental agency mortgage-backed securities 581,727 (3,900 ) 683,684 (6,000 ) 1,265,411 (9,900 ) U.S. corporate debt securities 69,127 (668 ) 13,933 (511 ) 83,060 (1,179 ) Foreign corporate debt securities 18,494 (148 ) 12,077 (236 ) 30,571 (384 ) $ 795,192 $ (5,208 ) $ 761,354 $ (6,898 ) $ 1,556,546 $ (12,106 ) December 31, 2018 U.S. Treasury bonds $ 19,749 $ (85 ) $ 55,615 $ (1,054 ) $ 75,364 $ (1,139 ) Municipal bonds 172,387 (1,772 ) 369,139 (10,537 ) 541,526 (12,309 ) Foreign government bonds 23,654 (1,037 ) 42,119 (1,122 ) 65,773 (2,159 ) Governmental agency bonds 56,270 (748 ) 90,631 (3,345 ) 146,901 (4,093 ) Governmental agency mortgage-backed securities 850,459 (6,955 ) 982,610 (22,061 ) 1,833,069 (29,016 ) U.S. corporate debt securities 374,473 (10,537 ) 109,844 (4,962 ) 484,317 (15,499 ) Foreign corporate debt securities 175,762 (4,575 ) 50,802 (1,910 ) 226,564 (6,485 ) $ 1,672,754 $ (25,709 ) $ 1,700,760 $ (44,991 ) $ 3,373,514 $ (70,700 ) Based on the Company’s review of its debt securities in an unrealized loss position at September 30, 2019, it determined that the losses were primarily the result of changes in interest rates, which were considered to be temporary, rather than a deterioration in credit quality. The Company does not intend to sell and it is not more likely than not that the Company will be required to sell these securities prior to recovering their amortized cost. As such, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2019. Investments in debt securities at September 30, 2019, by contractual maturities, are as follows: (in thousands) Due in one year or less Due after one through five years Due after five through ten years Due after ten years Total U.S. Treasury bonds Amortized cost $ 76,388 $ 103,981 $ 24,067 $ 4,437 $ 208,873 Estimated fair value $ 76,438 $ 104,782 $ 24,035 $ 4,319 $ 209,574 Municipal bonds Amortized cost $ 74,855 $ 156,509 $ 303,603 $ 506,228 $ 1,041,195 Estimated fair value $ 75,082 $ 158,756 $ 318,688 $ 538,064 $ 1,090,590 Foreign government bonds Amortized cost $ 12,967 $ 81,436 $ 56,338 $ 8,298 $ 159,039 Estimated fair value $ 12,928 $ 82,186 $ 57,367 $ 8,879 $ 161,360 Governmental agency bonds Amortized cost $ 30,394 $ 119,642 $ 140,215 $ 74,564 $ 364,815 Estimated fair value $ 30,427 $ 120,701 $ 144,471 $ 77,837 $ 373,436 U.S. corporate debt securities Amortized cost $ 45,800 $ 300,810 $ 184,908 $ 32,987 $ 564,505 Estimated fair value $ 45,867 $ 308,609 $ 192,169 $ 35,959 $ 582,604 Foreign corporate debt securities Amortized cost $ 25,623 $ 169,666 $ 66,489 $ 9,200 $ 270,978 Estimated fair value $ 25,656 $ 172,679 $ 70,301 $ 10,064 $ 278,700 Total debt securities excluding mortgage-backed securities Amortized cost $ 266,027 $ 932,044 $ 775,620 $ 635,714 $ 2,609,405 Estimated fair value $ 266,398 $ 947,713 $ 807,031 $ 675,122 $ 2,696,264 Total mortgage-backed securities Amortized cost $ 3,155,538 Estimated fair value $ 3,186,157 Total debt securities Amortized cost $ 5,764,943 Estimated fair value $ 5,882,421 Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity as borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties. Investments in equity securities are as follows: (in thousands) Cost Estimated fair value September 30, 2019 Preferred stocks $ 18,487 $ 14,262 Common stocks 369,852 402,226 $ 388,339 $ 416,488 December 31, 2018 Preferred stocks $ 16,892 $ 14,162 Common stocks 341,460 339,373 $ 358,352 $ 353,535 Net gains (realized and unrealized) of $0.2 million and $41.6 million were recognized for the three and nine months ended September 30, 2019, respectively, as a result of changes in the fair values of equity securities. Included in net gains during the three and nine months ended September 30, 2019, were net unrealized losses of $1.5 million and net unrealized gains of $35.9 million, respectively, related to equity securities still held at September 30, 2019. Net gains of $14.2 million and $16.0 million were recognized for the three and nine months ended September 30, 2018, respectively, as a result of changes in the fair values of equity securities. Included in net gains during the three and nine months ended September 30, 2018, were net unrealized gains of $14.1 million and $15.9 million, respectively, related to equity securities still held at September 30, 2018. The composition of the investment portfolio at September 30, 2019, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Debt securities: U.S. Treasury bonds $ 209,574 100.0 $ — — $ — — $ 209,574 100.0 Municipal bonds 1,048,526 96.2 40,686 3.7 1,378 0.1 1,090,590 100.0 Foreign government bonds 141,959 87.9 13,820 8.6 5,581 3.5 161,360 100.0 Governmental agency bonds 373,436 100.0 — — — — 373,436 100.0 Governmental agency mortgage-backed securities 3,186,157 100.0 — — — — 3,186,157 100.0 U.S. corporate debt securities 251,999 43.2 236,341 40.6 94,264 16.2 582,604 100.0 Foreign corporate debt securities 104,526 37.5 151,605 54.4 22,569 8.1 278,700 100.0 Total debt securities 5,316,177 90.4 442,452 7.5 123,792 2.1 5,882,421 100.0 Preferred stocks 43 0.3 13,124 92.0 1,095 7.7 14,262 100.0 Total $ 5,316,220 90.2 $ 455,576 7.7 $ 124,887 2.1 $ 5,896,683 100.0 Included in debt securities at September 30, 2019, were bank loans totaling $78.1 million, of which $68.1 million were non-investment grade; high yield corporate debt securities totaling $45.2 million, all of which were non-investment grade; and emerging market debt securities totaling $57.2 million, of which $9.1 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at September 30, 2019, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage U.S. Treasury bonds $ 47,701 100.0 $ — — $ — — $ 47,701 100.0 Municipal bonds 43,010 94.6 2,471 5.4 — — 45,481 100.0 Foreign government bonds 36,850 100.0 — — — — 36,850 100.0 Governmental agency bonds 47,472 100.0 — — — — 47,472 100.0 Governmental agency mortgage-backed securities 1,265,411 100.0 — — — — 1,265,411 100.0 U.S. corporate debt securities 18,790 22.6 29,450 35.5 34,820 41.9 83,060 100.0 Foreign corporate debt securities 13,343 43.7 9,394 30.7 7,834 25.6 30,571 100.0 Total $ 1,472,577 94.6 $ 41,315 2.7 $ 42,654 2.7 $ 1,556,546 100.0 Debt securities in an unrealized loss position at September 30, 2019, included bank loans totaling $29.7 million, of which $28.8 million were non-investment grade; high yield corporate debt securities totaling $13.7 million, all of which were non-investment grade; and emerging market debt securities totaling $0.5 million, of which $0.2 million were non-investment grade. The credit ratings in the above tables reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies, the lowest rating was selected. Governmental agency mortgage-backed securities are not rated by any of the ratings agencies; however, these securities have been included in the above table in the “A- or higher” rating category because the payments of principal and interest are guaranteed by the governmental agency that issued the security. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 4 – Leases On January 1, 2019, the Company adopted updated accounting guidance which requires lessees in leasing arrangements to recognize a right-of-use asset and a liability to make lease payments on the balance sheet. The Company leases commercial real estate, including office buildings and office space, and also certain equipment. The Company has elected the practical expedient for its leases of commercial real estate whereby it does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and instead accounts for both components as a single lease component. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of lease payments. Lease assets and liabilities are summarized as follows: (in thousands) Classification September 30, 2019 Assets Operating lease assets Operating lease assets $ 288,406 Finance lease assets Other assets 3,864 Total lease assets $ 292,270 Liabilities Operating lease liabilities Operating lease liabilities $ 319,445 Finance lease liabilities Notes and contracts payable 4,150 Total lease liabilities $ 323,595 The components of lease expense are as follows: (in thousands) Classification Three Months Ended Nine Months Ended Operating lease cost Other operating expenses $ 21,770 $ 65,332 Finance lease cost: Amortization of lease assets Depreciation and amortization 490 1,586 Interest on lease liabilities Interest 43 148 Variable lease cost Other operating expenses 8,369 23,678 Short-term lease cost Other operating expenses 327 1,317 Sublease income Information and other (377 ) (1,232 ) Net lease cost $ 30,622 $ 90,829 Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of September 30, 2019, are as follows: (in thousands) Operating Leases Finance Leases Total Remainder of 2019 $ 22,438 $ 362 $ 22,800 2020 82,378 1,445 83,823 2021 68,112 1,140 69,252 2022 56,188 1,045 57,233 2023 41,864 437 42,301 2024 29,632 — 29,632 Thereafter 59,414 — 59,414 Total lease payments 360,026 4,429 364,455 Interest (40,581 ) (279 ) (40,860 ) Present value of lease liabilities $ 319,445 $ 4,150 $ 323,595 Information related to lease terms and discount rates is as follows: September 30, 2019 Weighted-average remaining lease terms (years): Operating leases 5.5 Finance leases 3.4 Weighted-average discount rates: Operating leases 4.24 % Finance leases 4.12 % Cash flow information related to lease liabilities is as follows: (in thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 66,705 Operating cash flows from finance leases $ 148 Financing cash flows from finance leases $ 1,446 Operating lease assets obtained in exchange for new operating lease liabilities $ 26,785 Future minimum lease payments under operating leases with noncancelable lease terms, as of December 31, 2018, are as follows: Year in thousands 2019 $ 76,375 2020 68,026 2021 54,853 2022 41,859 2023 28,948 Thereafter 64,732 Total lease payments $ 334,793 Total rental expense for all operating leases was $22.2 million and $67.0 million for the three and nine months ended September 30, 2018, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 5 – Goodwill A summary of the changes in the carrying amount of goodwill, by reportable segment, for the nine months ended September 30, 2019, is as follows: (in thousands) Title Insurance and Services Specialty Insurance Total Balance at December 31, 2018 $ 1,097,401 $ 46,765 $ 1,144,166 Acquisitions 4,689 — 4,689 Foreign currency translation 910 — 910 Balance at September 30, 2019 $ 1,103,000 $ 46,765 $ 1,149,765 The Company’s four reporting units for purposes of assessing goodwill for impairment are title insurance, home warranty, property and casualty insurance and trust and other services. During the nine months ended September 30, 2019, there were no triggering events that would more likely than not reduce the fair value of any reporting unit below its carrying amount. |
Other Intangible Assets
Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 6 – Other Intangible Assets Other intangible assets consist of the following: (in thousands) September 30, 2019 December 31, 2018 Finite-lived intangible assets: Customer relationships $ 99,737 $ 114,603 Noncompete agreements 13,464 14,402 Trademarks 10,769 10,753 Internal-use software licenses 20,238 29,394 Patents 2,840 2,840 147,048 171,992 Accumulated amortization (71,108 ) (79,535 ) 75,940 92,457 Indefinite-lived intangible assets: Licenses 16,915 16,915 $ 92,855 $ 109,372 Amortization expense for finite-lived intangible assets was $6.7 million and $22.0 million for the three and nine months ended September 30, 2019, respectively, and $7.9 million and $22.0 million for the three and nine months ended September 30, 2018, respectively. Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2019 $ 6,165 2020 $ 16,752 2021 $ 11,442 2022 $ 10,447 2023 $ 9,851 2024 $ 7,197 |
Reserve for Known and Incurred
Reserve for Known and Incurred but Not Reported Claims | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | Note 7 – Reserve for Known and Incurred But Not Reported Claims Activity in the reserve for known and incurred but not reported claims is summarized as follows: Nine Months Ended (in thousands) 2019 2018 Balance at beginning of period $ 1,042,679 $ 1,028,933 Provision related to: Current year 325,012 328,326 Prior years 6,513 8,069 331,525 336,395 Payments, net of recoveries, related to: Current year 158,285 167,802 Prior years 146,889 166,168 305,174 333,970 Other (14,306 ) (4,399 ) Balance at end of period $ 1,054,724 $ 1,026,959 The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% for the three and nine months ended September 30, 2019 and 2018. The current quarter rate of 4.0% reflects the ultimate loss rate for the current policy year and no change in the loss reserve estimates for prior policy years. The 4.0% rate for the third quarter of 2018 reflected the ultimate loss rate for the 2018 policy year and no change in the loss reserve estimates for prior policy years. A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2019 December 31, 2018 Known title claims $ 84,569 8.0 % $ 80,306 7.7 % Incurred but not reported claims 888,118 84.2 % 877,134 84.1 % Total title claims 972,687 92.2 % 957,440 91.8 % Non-title claims 82,037 7.8 % 85,239 8.2 % Total loss reserves $ 1,054,724 100.0 % $ 1,042,679 100.0 % |
Notes and Contracts Payable
Notes and Contracts Payable | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes and Contracts Payable | Note 8 – Notes and Contracts Payable In April 2019, the Company entered into a senior unsecured credit agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”) in its capacity as administrative agent and the lenders party thereto. The credit agreement, which is comprised of a $700.0 million revolving credit facility, includes an expansion option that permits the Company, subject to satisfaction of certain conditions, to increase the revolving commitments and/or add term loan tranches in an aggregate amount not to exceed $350.0 million. Unless terminated earlier, the credit agreement will terminate on April 30, 2024. The obligations of the Company under the credit agreement are neither secured nor guaranteed. Upon entry into the credit agreement, the Company borrowed $160.0 million and repaid the $160.0 million obligation outstanding under the previous $700.0 million senior unsecured credit agreement, which was terminated at that time. Other proceeds under the credit agreement may be used for general corporate purposes. At September 30, 2019, outstanding borrowings under the facility totaled $160.0 million at an interest rate of 3.54%. At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the credit agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc., Standard & Poor’s Rating Services and/or Fitch Ratings Inc. The minimum applicable spread for Alternate Base Rate borrowings is 0.25% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.25% and the maximum is 2.00%. The rate of interest on any term loans incurred in connection with the expansion option will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of September 30, 2019, the Company was in compliance with the financial covenants under the credit agreement. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 23.3% and 21.3% for the three and nine months ended September 30, 2019, respectively, and 22.6% and 22.0% for the three and nine months ended September 30, 2018, respectively. The Company’s effective tax rates differ from the statutory federal rate of 21% In connection with the Company’s September 2010 spin-off from its prior parent, the Company entered into a tax sharing agreement which governs the Company’s and its prior parent’s respective rights, responsibilities and obligations for certain tax related matters. At September 30, 2019 and December 31, 2018, the Company had a net payable to its prior parent of $0.5 million and $15.6 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 decrease during the current year was primarily the result of the resolution of state tax matters for years prior to the spin-off. The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and makes adjustments to the allowance as necessary. The factors used by the Company to assess the likelihood of realization include its forecast of future taxable income and available tax planning strategies that could be implemented to realize its deferred tax assets. The Company’s ability or failure to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of its deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months. As of September 30, 2019 and December 31, 2018, the liability for income taxes associated with uncertain tax positions was $5.1 million and $13.3 million, respectively. The decrease during the current year was primarily the result of the resolution of state tax matters from prior years. As of September 30, 2019 and December 31, 2018, the liability could be reduced by $2.0 million and $3.7 million, respectively, due to offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net liability, if recognized, would favorably affect the Company’s effective income tax rate. 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, 2019 and December 31, 2018, the Company had accrued interest and penalties, net of tax benefits, of $0.1 million and $5.8 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. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. As of September 30, 2019, the Company had concluded U.S. federal income tax examinations through 2015 and is generally no longer subject to state and non-U.S. income tax examinations for years prior to 2010. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10 – Earnings Per Share The computation of basic and diluted earnings per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator Net income attributable to the Company $ 187,182 $ 151,480 $ 483,412 $ 382,847 Denominator Basic weighted-average shares 113,163 112,722 112,983 112,541 Effect of dilutive employee stock options and 578 643 526 672 Diluted weighted-average shares 113,741 113,365 113,509 113,213 Net income per share attributable to the Company’s stockholders Basic $ 1.65 $ 1.34 $ 4.28 $ 3.40 Diluted $ 1.65 $ 1.34 $ 4.26 $ 3.38 For the three and nine months ended September 30, 2019, RSUs excluded from the weighted-average diluted common shares outstanding due to their antidilutive effect were not material. No RSUs were excluded due to their antidilutive effect on weighted-average diluted common shares outstanding for either period in the prior year. No stock options had an antidilutive effect on weighted-average diluted common shares outstanding for either period in the current or prior year. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 11 – Employee Benefit Plans Net periodic costs related to the Company’s unfunded supplemental benefit plans includes the following components: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Expense: Service costs $ 70 $ 130 $ 211 $ 390 Interest costs 2,280 2,018 6,838 6,054 Amortization of net actuarial loss 916 1,205 2,746 3,615 Amortization of prior service credit (1,018 ) (1,045 ) (3,053 ) (3,135 ) $ 2,248 $ 2,308 $ 6,742 $ 6,924 The Company contributed $10.8 million to its unfunded supplemental benefit plans during the nine months ended September 30, 2019, and expects to contribute an additional $3.8 million during the remainder of 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 – 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 values of the debt securities held by the Company. The Company obtains an understanding of the valuation models and assumptions utilized by the services and has controls in place to determine that the values provided represent fair values. The Company’s validation procedures include comparing prices received from the pricing services to quotes received from other third party sources for certain securities with market prices that are readily verifiable. If the price comparison results in differences over a predefined threshold, the Company will assess the reasonableness of the changes relative to prior periods given the prevailing market conditions and assess changes in the issuers’ credit worthiness, performance of any underlying collateral and prices of the instrument relative to similar issuances. To date, the Company has not made any material adjustments to the fair value measurements provided by the pricing services. Typical inputs and assumptions to pricing models used to value the Company’s debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes and prepayment speeds. 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, 2019 and December 31, 2018: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2019 Debt securities: U.S. Treasury bonds $ 209,574 $ — $ 209,574 $ — Municipal bonds 1,090,590 — 1,090,590 — Foreign government bonds 161,360 — 161,360 — Governmental agency bonds 373,436 — 373,436 — Governmental agency mortgage-backed securities 3,186,157 — 3,186,157 — U.S. corporate debt securities 582,604 — 582,604 — Foreign corporate debt securities 278,700 — 278,700 — 5,882,421 — 5,882,421 — Equity securities: Preferred stocks 14,262 14,262 — — Common stocks 402,226 402,226 — — 416,488 416,488 — — Total assets $ 6,298,909 $ 416,488 $ 5,882,421 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2018 Debt securities: U.S. Treasury bonds $ 162,506 $ — $ 162,506 $ — Municipal bonds 1,045,035 — 1,045,035 — Foreign government bonds 157,297 — 157,297 — Governmental agency bonds 316,167 — 316,167 — Governmental agency mortgage-backed securities 3,202,599 — 3,202,599 — U.S. corporate debt securities 561,260 — 561,260 — Foreign corporate debt securities 268,947 — 268,947 — 5,713,811 — 5,713,811 — Equity securities: Preferred stocks 14,162 14,162 — — Common stocks 339,373 339,373 — — 353,535 353,535 — — Total assets $ 6,067,346 $ 353,535 $ 5,713,811 $ — There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2019 and 2018. Transfers into or out of the Level 3 category occur when unobservable inputs become more or less significant to the fair value measurement. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. Financial instruments not measured at fair value In estimating the fair values of its financial instruments not measured at fair value, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents approximates fair value due to the short-term maturity of these investments. Deposits with banks The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. Notes receivable, net The fair value of notes receivable, net is estimated based on current market rates offered for notes with similar maturities and credit quality. Secured financings receivable The carrying amount of secured financings receivable approximates fair value due to the short-term nature of these assets. Secured financings payable The carrying amount of secured financings payable approximates fair value due to the short-term nature of these liabilities. Notes and contracts payable The fair value of notes and contracts payable is estimated based on current rates offered 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, 2019 and December 31, 2018: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2019 Assets: Cash and cash equivalents $ 1,710,999 $ 1,710,999 $ 1,710,999 $ — $ — Deposits with banks $ 38,459 $ 38,385 $ 1,518 $ 36,867 $ — Notes receivable, net $ 19,156 $ 19,029 $ — $ — $ 19,029 Secured financings receivable $ 352,013 $ 352,013 $ — $ 352,013 $ — Liabilities: Secured financings payable $ 233,483 $ 233,483 $ — $ 233,483 $ — Notes and contracts payable $ 728,332 $ 762,011 $ — $ 757,739 $ 4,272 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2018 Assets: Cash and cash equivalents $ 1,467,129 $ 1,467,129 $ 1,467,129 $ — $ — Deposits with banks $ 36,209 $ 35,979 $ 4,307 $ 31,672 $ — Notes receivable, net $ 13,237 $ 12,805 $ — $ — $ 12,805 Secured financings receivable $ 76,311 $ 76,311 $ — $ 76,311 $ — Liabilities: Secured financings payable $ 76,313 $ 76,313 $ — $ 76,313 $ — Notes and contracts payable $ 732,019 $ 741,839 $ — $ 736,048 $ 5,791 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 13 – Share-Based Compensation The following table presents costs associated with the Company’s share-based compensation plans: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Expense: RSUs $ 6,608 $ 6,392 $ 31,761 $ 31,570 Employee stock purchase plan 948 849 3,150 2,806 $ 7,556 $ 7,241 $ 34,911 $ 34,376 The following table summarizes RSU activity for the nine months ended September 30, 2019: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average grant-date fair value Unvested at December 31, 2018 1,248 $ 44.53 Granted during 2019 758 $ 51.31 Vested during 2019 (822 ) $ 44.49 Forfeited during 2019 (19 ) $ 47.44 Unvested at September 30, 2019 1,165 $ 48.91 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | Note 14 – 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, 2019: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Accumulated other comprehensive income (loss) Balance at December 31, 2018 $ (42,165 ) $ (65,628 ) $ (52,780 ) $ (160,573 ) Change in unrealized gains (losses) on debt securities 164,817 — — 164,817 Change in foreign currency translation adjustment — 3,146 — 3,146 Amortization of net actuarial loss — — 2,746 2,746 Amortization of prior service credit — — (3,053 ) (3,053 ) Tax effect (38,645 ) (187 ) 80 (38,752 ) Balance at September 30, 2019 $ 84,007 $ (62,669 ) $ (53,007 ) $ (31,669 ) Allocated to the Company $ 84,006 $ (62,669 ) $ (53,007 ) $ (31,670 ) Allocated to noncontrolling interests 1 — — 1 Balance at September 30, 2019 $ 84,007 $ (62,669 ) $ (53,007 ) $ (31,669 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2019 and 2018: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended September 30, 2019 Pretax change before reclassifications $ 19,348 $ (7,614 ) $ — $ 11,734 Reclassifications out of AOCI (2,165 ) — (102 ) (2,267 ) Tax effect (3,690 ) 241 26 (3,423 ) Total other comprehensive income (loss), net of tax $ 13,493 $ (7,373 ) $ (76 ) $ 6,044 Three Months Ended September 30, 2018 Pretax change before reclassifications $ (21,879 ) $ 2,441 $ — $ (19,438 ) Reclassifications out of AOCI 2,522 — 160 2,682 Tax effect 4,695 560 (42 ) 5,213 Total other comprehensive income (loss), net of tax $ (14,662 ) $ 3,001 $ 118 $ (11,543 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2019 and 2018: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Nine Months Ended September 30, 2019 Pretax change before reclassifications $ 166,647 $ 3,146 $ — $ 169,793 Reclassifications out of AOCI (1,830 ) — (307 ) (2,137 ) Tax effect (38,645 ) (187 ) 80 (38,752 ) Total other comprehensive income (loss), net of tax $ 126,172 $ 2,959 $ (227 ) $ 128,904 Nine Months Ended September 30, 2018 Pretax change before reclassifications $ (101,173 ) $ (11,856 ) $ — $ (113,029 ) Reclassifications out of AOCI 4,757 — 480 5,237 Tax effect 22,483 560 (123 ) 22,920 Total other comprehensive income (loss), net of tax $ (73,933 ) $ (11,296 ) $ 357 $ (84,872 ) The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Affected line items Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of debt securities $ 2,165 $ (2,522 ) $ 1,830 $ (4,757 ) Net realized investment gains Tax effect $ (465 ) $ 612 $ (429 ) $ 1,109 Pension benefit adjustment (1): Amortization of net actuarial loss $ (916 ) $ (1,205 ) $ (2,746 ) $ (3,615 ) Other operating expenses Amortization of prior service credit 1,018 1,045 3,053 3,135 Other operating expenses Pretax total $ 102 $ (160 ) $ 307 $ (480 ) Tax effect $ (26 ) $ 42 $ (80 ) $ 123 (1) These components of AOCI are components of net periodic cost. See Note 11 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | Note 15 – 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. It is, however, often not possible to assess the probability of loss. Lawsuits that are putative class actions 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, for 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 or one of its subsidiaries improperly charged fees for products and services, improperly handled property and casualty claims and gave items of value to builders 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: • Tenefufu vs. First American Specialty Insurance Company, filed on June 1, 2017 and pending in the Superior Court of the State of California, County of Sacramento, and • 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. These lawsuits are putative class actions for which a class has not been certified. 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. The Company and/or its subsidiaries are also parties to numerous class action lawsuits as a result of the information security incident that occurred during the second quarter of 2019. All of these lawsuits are putative class actions for which a class has not been certified. 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. 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 wealth management businesses are regulated by various federal, state and local governmental agencies. Many of the Company’s other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company’s operations. One of these investigations pertains to title insurance policies issued by agents of the Company’s title insurance subsidiary in the State of Indiana during 2006-2008. As a result of this investigation, the Indiana Commissioner of Insurance determined, based upon a simple extrapolation of a review of settlement statements issued in 129 transactions, that the Company’s title insurance subsidiary overcharged consumers by approximately $3.1 million and, consequently, failed to pay premium taxes by approximately $38,000. The Commissioner ordered the payment of these amounts to the Indiana Department of Insurance, plus interest and certain fees and expenses. On appeal, the Commissioner was ordered to refund approximately $2.8 million in inappropriately assessed interest and fees. The Commissioner has appealed this order and the Company expects to cross-appeal to challenge the Commissioner’s methodology for determining the appropriateness of the premium charged, among other matters. With respect to the same transactions involved in this investigation, on July 24, 2019, the Commissioner filed a Statement of Charges seeking payment of a civil penalty relating to the alleged overcharges. While the Company intends to conduct a vigorous defense to the Statement of Charges, should the Commissioner prevail it is expected that any civil penalty would be proportionate to the amount actually determined to have been overcharged. The Company also has received numerous regulatory inquiries and/or investigations as a result of the information security incident that occurred during the second quarter of 2019. 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. During July 2019, the Company received an assessment from the Canadian taxing authority. The amount of the assessment is $14.4 million, which is based on the exchange rate as of, and includes interest charges through, September 30, 2019. As the Company does not believe that the services in question are subject to excise tax, it intends to avail itself of avenues of appeal, and it believes it is reasonably likely that the Company will prevail on the merits. Based on the current facts and circumstances, the Company does not believe a loss is probable, therefore no liability has been recorded. 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
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 designed to mitigate risk or otherwise facilitate real estate transactions, many of which products, services and solutions involve the use of real property-related data; maintains, manages and provides access to title plant records and images; and provides appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, evidence of title, and banking, trust and wealth management services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies, the District of Columbia and certain United States territories. The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in other countries, including Canada, the United Kingdom, Australia, South Korea and various other established and emerging markets. • The Company’s specialty insurance segment 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 46 states. The majority of policy liability is in the western United States, including approximately 60% in California. 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 certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 35 states and the District of Columbia. The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Selected financial information about the Company’s operations, by segment, is as follows: For the three months ended September 30, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,540,741 $ 253,570 $ 29,822 $ 22,869 Specialty Insurance 129,190 11,021 1,859 2,015 Corporate 1,770 (19,253 ) 38 — Eliminations (505 ) — — — $ 1,671,196 $ 245,338 $ 31,719 $ 24,884 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 606,812 $ 656,154 $ 205,282 $ 72,044 $ 449 $ 1,540,741 Specialty Insurance 121,798 — 3,270 3,064 1,058 129,190 $ 728,610 $ 656,154 $ 208,552 $ 75,108 $ 1,507 $ 1,669,931 For the three months ended September 30, 2018: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,413,841 $ 206,539 $ 29,978 $ 28,342 Specialty Insurance 124,179 6,201 1,713 2,403 Corporate 4,461 (17,153 ) 38 — Eliminations (295 ) — — — $ 1,542,186 $ 195,587 $ 31,729 $ 30,745 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 532,769 $ 615,113 $ 195,963 $ 60,871 $ 9,125 $ 1,413,841 Specialty Insurance 116,606 — 2,981 2,573 2,019 124,179 $ 649,375 $ 615,113 $ 198,944 $ 63,444 $ 11,144 $ 1,538,020 For the nine months ended September 30, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 4,084,795 $ 628,392 $ 92,043 $ 71,839 Specialty Insurance 374,340 44,546 5,379 7,187 Corporate 15,456 (56,433 ) 115 — Eliminations (1,194 ) — — — $ 4,473,397 $ 616,505 $ 97,537 $ 79,026 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 1,561,926 $ 1,701,538 $ 573,150 $ 213,067 $ 35,114 $ 4,084,795 Specialty Insurance 348,904 — 9,490 8,496 7,450 374,340 $ 1,910,830 $ 1,701,538 $ 582,640 $ 221,563 $ 42,564 $ 4,459,135 For the nine months ended September 30, 2018: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 3,968,347 $ 518,565 $ 87,438 $ 84,296 Specialty Insurance 357,750 26,220 4,981 9,981 Corporate 5,488 (54,165 ) 115 — Eliminations (854 ) — — — $ 4,330,731 $ 490,620 $ 92,534 $ 94,277 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 1,515,537 $ 1,701,831 $ 588,079 $ 154,009 $ 8,891 $ 3,968,347 Specialty Insurance 339,298 — 8,807 7,561 2,084 357,750 $ 1,854,835 $ 1,701,831 $ 596,886 $ 161,570 $ 10,975 $ 4,326,097 |
Basis of Condensed Consolidat_2
Basis of Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance that requires the rights and obligations associated with leasing arrangements to be reflected on the balance sheet in order to increase transparency and comparability among organizations. Under the updated guidance, lessees are 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. The updated guidance may either be adopted using a modified retrospective transition approach or may be initially applied on the adoption date with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted and initially applied the updated guidance on January 1, 2019. Upon adoption, the Company recognized deferred gains of $1.3 million on previous sale and operating leaseback transactions as a cumulative-effect adjustment to retained earnings. The Company elected to adopt the package of practical expedients allowed under the guidance, which was applied to all leases as of the adoption date. The package of practical expedients included (1) entities could choose not to reassess whether any expired or existing contracts are or contain leases, (2) entities could choose not to reassess the lease classification for any expired or existing leases, and (3) entities could choose not to reassess initial direct costs for any existing leases. See Note 4 Leases for further information on the Company’s leasing arrangements. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements In August 2018, the FASB issued updated guidance that is intended to reduce potential diversity in practice in accounting for the costs of implementing cloud computing arrangements (i.e., hosting arrangements) that are service contracts. The updated guidance aligns the requirements for capitalizing implementation costs for these arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued updated guidance as part of its disclosure framework project intended to improve the effectiveness of disclosures in the notes to the financial statements. The updated guidance eliminates, adds and modifies certain disclosure requirements related to fair value measurements. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In January 2017, the FASB issued updated guidance intended to simplify how an entity tests goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Under the updated guidance, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. 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. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments in Debt Securities, Classified as Available-For-Sale | Investments in debt securities, classified as available-for-sale, are as follows: (in thousands) Amortized Gross unrealized Estimated Gains Losses September 30, 2019 U.S. Treasury bonds $ 208,873 $ 984 $ (283 ) $ 209,574 Municipal bonds 1,041,195 49,524 (129 ) 1,090,590 Foreign government bonds 159,039 2,437 (116 ) 161,360 Governmental agency bonds 364,815 8,736 (115 ) 373,436 Governmental agency mortgage-backed securities 3,155,538 40,519 (9,900 ) 3,186,157 U.S. corporate debt securities 564,505 19,278 (1,179 ) 582,604 Foreign corporate debt securities 270,978 8,106 (384 ) 278,700 $ 5,764,943 $ 129,584 $ (12,106 ) $ 5,882,421 December 31, 2018 U.S. Treasury bonds $ 162,904 $ 741 $ (1,139 ) $ 162,506 Municipal bonds 1,050,134 7,210 (12,309 ) 1,045,035 Foreign government bonds 158,885 571 (2,159 ) 157,297 Governmental agency bonds 319,115 1,145 (4,093 ) 316,167 Governmental agency mortgage-backed securities 3,219,585 12,030 (29,016 ) 3,202,599 U.S. corporate debt securities 575,646 1,113 (15,499 ) 561,260 Foreign corporate debt securities 274,881 551 (6,485 ) 268,947 $ 5,761,150 $ 23,361 $ (70,700 ) $ 5,713,811 |
Gross Unrealized Losses on Investments in Debt Securities | Gross unrealized losses on investments in debt securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses September 30, 2019 U.S. Treasury bonds $ 42,776 $ (271 ) $ 4,925 $ (12 ) $ 47,701 $ (283 ) Municipal bonds 42,084 (111 ) 3,397 (18 ) 45,481 (129 ) Foreign government bonds 26,049 (78 ) 10,801 (38 ) 36,850 (116 ) Governmental agency bonds 14,935 (32 ) 32,537 (83 ) 47,472 (115 ) Governmental agency mortgage-backed securities 581,727 (3,900 ) 683,684 (6,000 ) 1,265,411 (9,900 ) U.S. corporate debt securities 69,127 (668 ) 13,933 (511 ) 83,060 (1,179 ) Foreign corporate debt securities 18,494 (148 ) 12,077 (236 ) 30,571 (384 ) $ 795,192 $ (5,208 ) $ 761,354 $ (6,898 ) $ 1,556,546 $ (12,106 ) December 31, 2018 U.S. Treasury bonds $ 19,749 $ (85 ) $ 55,615 $ (1,054 ) $ 75,364 $ (1,139 ) Municipal bonds 172,387 (1,772 ) 369,139 (10,537 ) 541,526 (12,309 ) Foreign government bonds 23,654 (1,037 ) 42,119 (1,122 ) 65,773 (2,159 ) Governmental agency bonds 56,270 (748 ) 90,631 (3,345 ) 146,901 (4,093 ) Governmental agency mortgage-backed securities 850,459 (6,955 ) 982,610 (22,061 ) 1,833,069 (29,016 ) U.S. corporate debt securities 374,473 (10,537 ) 109,844 (4,962 ) 484,317 (15,499 ) Foreign corporate debt securities 175,762 (4,575 ) 50,802 (1,910 ) 226,564 (6,485 ) $ 1,672,754 $ (25,709 ) $ 1,700,760 $ (44,991 ) $ 3,373,514 $ (70,700 ) |
Investments in Debt Securities by Contractual Maturity | Investments in debt securities at September 30, 2019, by contractual maturities, are as follows: (in thousands) Due in one year or less Due after one through five years Due after five through ten years Due after ten years Total U.S. Treasury bonds Amortized cost $ 76,388 $ 103,981 $ 24,067 $ 4,437 $ 208,873 Estimated fair value $ 76,438 $ 104,782 $ 24,035 $ 4,319 $ 209,574 Municipal bonds Amortized cost $ 74,855 $ 156,509 $ 303,603 $ 506,228 $ 1,041,195 Estimated fair value $ 75,082 $ 158,756 $ 318,688 $ 538,064 $ 1,090,590 Foreign government bonds Amortized cost $ 12,967 $ 81,436 $ 56,338 $ 8,298 $ 159,039 Estimated fair value $ 12,928 $ 82,186 $ 57,367 $ 8,879 $ 161,360 Governmental agency bonds Amortized cost $ 30,394 $ 119,642 $ 140,215 $ 74,564 $ 364,815 Estimated fair value $ 30,427 $ 120,701 $ 144,471 $ 77,837 $ 373,436 U.S. corporate debt securities Amortized cost $ 45,800 $ 300,810 $ 184,908 $ 32,987 $ 564,505 Estimated fair value $ 45,867 $ 308,609 $ 192,169 $ 35,959 $ 582,604 Foreign corporate debt securities Amortized cost $ 25,623 $ 169,666 $ 66,489 $ 9,200 $ 270,978 Estimated fair value $ 25,656 $ 172,679 $ 70,301 $ 10,064 $ 278,700 Total debt securities excluding mortgage-backed securities Amortized cost $ 266,027 $ 932,044 $ 775,620 $ 635,714 $ 2,609,405 Estimated fair value $ 266,398 $ 947,713 $ 807,031 $ 675,122 $ 2,696,264 Total mortgage-backed securities Amortized cost $ 3,155,538 Estimated fair value $ 3,186,157 Total debt securities Amortized cost $ 5,764,943 Estimated fair value $ 5,882,421 |
Investments in Equity Securities | Investments in equity securities are as follows: (in thousands) Cost Estimated fair value September 30, 2019 Preferred stocks $ 18,487 $ 14,262 Common stocks 369,852 402,226 $ 388,339 $ 416,488 December 31, 2018 Preferred stocks $ 16,892 $ 14,162 Common stocks 341,460 339,373 $ 358,352 $ 353,535 |
Composition of Investment Portfolio by Credit Rating Agencies | The composition of the investment portfolio at September 30, 2019, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Debt securities: U.S. Treasury bonds $ 209,574 100.0 $ — — $ — — $ 209,574 100.0 Municipal bonds 1,048,526 96.2 40,686 3.7 1,378 0.1 1,090,590 100.0 Foreign government bonds 141,959 87.9 13,820 8.6 5,581 3.5 161,360 100.0 Governmental agency bonds 373,436 100.0 — — — — 373,436 100.0 Governmental agency mortgage-backed securities 3,186,157 100.0 — — — — 3,186,157 100.0 U.S. corporate debt securities 251,999 43.2 236,341 40.6 94,264 16.2 582,604 100.0 Foreign corporate debt securities 104,526 37.5 151,605 54.4 22,569 8.1 278,700 100.0 Total debt securities 5,316,177 90.4 442,452 7.5 123,792 2.1 5,882,421 100.0 Preferred stocks 43 0.3 13,124 92.0 1,095 7.7 14,262 100.0 Total $ 5,316,220 90.2 $ 455,576 7.7 $ 124,887 2.1 $ 5,896,683 100.0 |
Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies | The composition of the debt securities portfolio in an unrealized loss position at September 30, 2019, by credit rating, is as follows: A- or higher BBB+ to BBB- Non-Investment Grade Total (in thousands, except percentages) Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage Estimated fair value Percentage U.S. Treasury bonds $ 47,701 100.0 $ — — $ — — $ 47,701 100.0 Municipal bonds 43,010 94.6 2,471 5.4 — — 45,481 100.0 Foreign government bonds 36,850 100.0 — — — — 36,850 100.0 Governmental agency bonds 47,472 100.0 — — — — 47,472 100.0 Governmental agency mortgage-backed securities 1,265,411 100.0 — — — — 1,265,411 100.0 U.S. corporate debt securities 18,790 22.6 29,450 35.5 34,820 41.9 83,060 100.0 Foreign corporate debt securities 13,343 43.7 9,394 30.7 7,834 25.6 30,571 100.0 Total $ 1,472,577 94.6 $ 41,315 2.7 $ 42,654 2.7 $ 1,556,546 100.0 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | Lease assets and liabilities are summarized as follows: (in thousands) Classification September 30, 2019 Assets Operating lease assets Operating lease assets $ 288,406 Finance lease assets Other assets 3,864 Total lease assets $ 292,270 Liabilities Operating lease liabilities Operating lease liabilities $ 319,445 Finance lease liabilities Notes and contracts payable 4,150 Total lease liabilities $ 323,595 |
Summary of Components of Lease Expense | The components of lease expense are as follows: (in thousands) Classification Three Months Ended Nine Months Ended Operating lease cost Other operating expenses $ 21,770 $ 65,332 Finance lease cost: Amortization of lease assets Depreciation and amortization 490 1,586 Interest on lease liabilities Interest 43 148 Variable lease cost Other operating expenses 8,369 23,678 Short-term lease cost Other operating expenses 327 1,317 Sublease income Information and other (377 ) (1,232 ) Net lease cost $ 30,622 $ 90,829 |
Schedule of Future Minimum Lease Payments Under Operating and Finance Lease with Noncancelable Lease Terms | Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of September 30, 2019, are as follows: (in thousands) Operating Leases Finance Leases Total Remainder of 2019 $ 22,438 $ 362 $ 22,800 2020 82,378 1,445 83,823 2021 68,112 1,140 69,252 2022 56,188 1,045 57,233 2023 41,864 437 42,301 2024 29,632 — 29,632 Thereafter 59,414 — 59,414 Total lease payments 360,026 4,429 364,455 Interest (40,581 ) (279 ) (40,860 ) Present value of lease liabilities $ 319,445 $ 4,150 $ 323,595 |
Schedule of Information Related to Lease Terms and Discount Rate | Information related to lease terms and discount rates is as follows: September 30, 2019 Weighted-average remaining lease terms (years): Operating leases 5.5 Finance leases 3.4 Weighted-average discount rates: Operating leases 4.24 % Finance leases 4.12 % |
Schedule of Cash Flow Information Related to Lease Liabilities | Cash flow information related to lease liabilities is as follows: (in thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 66,705 Operating cash flows from finance leases $ 148 Financing cash flows from finance leases $ 1,446 Operating lease assets obtained in exchange for new operating lease liabilities $ 26,785 |
Summary of Future Minimum Lease Payments Under Operating Leases with Noncancelable Lease Terms | Future minimum lease payments under operating leases with noncancelable lease terms, as of December 31, 2018, are as follows: Year in thousands 2019 $ 76,375 2020 68,026 2021 54,853 2022 41,859 2023 28,948 Thereafter 64,732 Total lease payments $ 334,793 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Reportable Segment | A summary of the changes in the carrying amount of goodwill, by reportable segment, for the nine months ended September 30, 2019, is as follows: (in thousands) Title Insurance and Services Specialty Insurance Total Balance at December 31, 2018 $ 1,097,401 $ 46,765 $ 1,144,166 Acquisitions 4,689 — 4,689 Foreign currency translation 910 — 910 Balance at September 30, 2019 $ 1,103,000 $ 46,765 $ 1,149,765 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets Gross Excluding Goodwill [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consist of the following: (in thousands) September 30, 2019 December 31, 2018 Finite-lived intangible assets: Customer relationships $ 99,737 $ 114,603 Noncompete agreements 13,464 14,402 Trademarks 10,769 10,753 Internal-use software licenses 20,238 29,394 Patents 2,840 2,840 147,048 171,992 Accumulated amortization (71,108 ) (79,535 ) 75,940 92,457 Indefinite-lived intangible assets: Licenses 16,915 16,915 $ 92,855 $ 109,372 |
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 2019 $ 6,165 2020 $ 16,752 2021 $ 11,442 2022 $ 10,447 2023 $ 9,851 2024 $ 7,197 |
Reserve for Known and Incurre_2
Reserve for Known and Incurred but Not Reported Claims (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Activity in Reserve for Known and Incurred but Not Reported Claims | Activity in the reserve for known and incurred but not reported claims is summarized as follows: Nine Months Ended (in thousands) 2019 2018 Balance at beginning of period $ 1,042,679 $ 1,028,933 Provision related to: Current year 325,012 328,326 Prior years 6,513 8,069 331,525 336,395 Payments, net of recoveries, related to: Current year 158,285 167,802 Prior years 146,889 166,168 305,174 333,970 Other (14,306 ) (4,399 ) Balance at end of period $ 1,054,724 $ 1,026,959 |
Summary of Loss Reserves | A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2019 December 31, 2018 Known title claims $ 84,569 8.0 % $ 80,306 7.7 % Incurred but not reported claims 888,118 84.2 % 877,134 84.1 % Total title claims 972,687 92.2 % 957,440 91.8 % Non-title claims 82,037 7.8 % 85,239 8.2 % Total loss reserves $ 1,054,724 100.0 % $ 1,042,679 100.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator Net income attributable to the Company $ 187,182 $ 151,480 $ 483,412 $ 382,847 Denominator Basic weighted-average shares 113,163 112,722 112,983 112,541 Effect of dilutive employee stock options and 578 643 526 672 Diluted weighted-average shares 113,741 113,365 113,509 113,213 Net income per share attributable to the Company’s stockholders Basic $ 1.65 $ 1.34 $ 4.28 $ 3.40 Diluted $ 1.65 $ 1.34 $ 4.26 $ 3.38 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Costs | Net periodic costs related to the Company’s unfunded supplemental benefit plans includes the following components: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Expense: Service costs $ 70 $ 130 $ 211 $ 390 Interest costs 2,280 2,018 6,838 6,054 Amortization of net actuarial loss 916 1,205 2,746 3,615 Amortization of prior service credit (1,018 ) (1,045 ) (3,053 ) (3,135 ) $ 2,248 $ 2,308 $ 6,742 $ 6,924 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and December 31, 2018: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2019 Debt securities: U.S. Treasury bonds $ 209,574 $ — $ 209,574 $ — Municipal bonds 1,090,590 — 1,090,590 — Foreign government bonds 161,360 — 161,360 — Governmental agency bonds 373,436 — 373,436 — Governmental agency mortgage-backed securities 3,186,157 — 3,186,157 — U.S. corporate debt securities 582,604 — 582,604 — Foreign corporate debt securities 278,700 — 278,700 — 5,882,421 — 5,882,421 — Equity securities: Preferred stocks 14,262 14,262 — — Common stocks 402,226 402,226 — — 416,488 416,488 — — Total assets $ 6,298,909 $ 416,488 $ 5,882,421 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2018 Debt securities: U.S. Treasury bonds $ 162,506 $ — $ 162,506 $ — Municipal bonds 1,045,035 — 1,045,035 — Foreign government bonds 157,297 — 157,297 — Governmental agency bonds 316,167 — 316,167 — Governmental agency mortgage-backed securities 3,202,599 — 3,202,599 — U.S. corporate debt securities 561,260 — 561,260 — Foreign corporate debt securities 268,947 — 268,947 — 5,713,811 — 5,713,811 — Equity securities: Preferred stocks 14,162 14,162 — — Common stocks 339,373 339,373 — — 353,535 353,535 — — Total assets $ 6,067,346 $ 353,535 $ 5,713,811 $ — |
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, 2019 and December 31, 2018: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2019 Assets: Cash and cash equivalents $ 1,710,999 $ 1,710,999 $ 1,710,999 $ — $ — Deposits with banks $ 38,459 $ 38,385 $ 1,518 $ 36,867 $ — Notes receivable, net $ 19,156 $ 19,029 $ — $ — $ 19,029 Secured financings receivable $ 352,013 $ 352,013 $ — $ 352,013 $ — Liabilities: Secured financings payable $ 233,483 $ 233,483 $ — $ 233,483 $ — Notes and contracts payable $ 728,332 $ 762,011 $ — $ 757,739 $ 4,272 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2018 Assets: Cash and cash equivalents $ 1,467,129 $ 1,467,129 $ 1,467,129 $ — $ — Deposits with banks $ 36,209 $ 35,979 $ 4,307 $ 31,672 $ — Notes receivable, net $ 13,237 $ 12,805 $ — $ — $ 12,805 Secured financings receivable $ 76,311 $ 76,311 $ — $ 76,311 $ — Liabilities: Secured financings payable $ 76,313 $ 76,313 $ — $ 76,313 $ — Notes and contracts payable $ 732,019 $ 741,839 $ — $ 736,048 $ 5,791 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Costs Associated with Share-Based Compensation Plans | The following table presents costs associated with the Company’s share-based compensation plans: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Expense: RSUs $ 6,608 $ 6,392 $ 31,761 $ 31,570 Employee stock purchase plan 948 849 3,150 2,806 $ 7,556 $ 7,241 $ 34,911 $ 34,376 |
Summary of RSU Activity | The following table summarizes RSU activity for the nine months ended September 30, 2019: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average grant-date fair value Unvested at December 31, 2018 1,248 $ 44.53 Granted during 2019 758 $ 51.31 Vested during 2019 (822 ) $ 44.49 Forfeited during 2019 (19 ) $ 47.44 Unvested at September 30, 2019 1,165 $ 48.91 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Accumulated other comprehensive income (loss) Balance at December 31, 2018 $ (42,165 ) $ (65,628 ) $ (52,780 ) $ (160,573 ) Change in unrealized gains (losses) on debt securities 164,817 — — 164,817 Change in foreign currency translation adjustment — 3,146 — 3,146 Amortization of net actuarial loss — — 2,746 2,746 Amortization of prior service credit — — (3,053 ) (3,053 ) Tax effect (38,645 ) (187 ) 80 (38,752 ) Balance at September 30, 2019 $ 84,007 $ (62,669 ) $ (53,007 ) $ (31,669 ) Allocated to the Company $ 84,006 $ (62,669 ) $ (53,007 ) $ (31,670 ) Allocated to noncontrolling interests 1 — — 1 Balance at September 30, 2019 $ 84,007 $ (62,669 ) $ (53,007 ) $ (31,669 ) |
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, 2019 and 2018: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Three Months Ended September 30, 2019 Pretax change before reclassifications $ 19,348 $ (7,614 ) $ — $ 11,734 Reclassifications out of AOCI (2,165 ) — (102 ) (2,267 ) Tax effect (3,690 ) 241 26 (3,423 ) Total other comprehensive income (loss), net of tax $ 13,493 $ (7,373 ) $ (76 ) $ 6,044 Three Months Ended September 30, 2018 Pretax change before reclassifications $ (21,879 ) $ 2,441 $ — $ (19,438 ) Reclassifications out of AOCI 2,522 — 160 2,682 Tax effect 4,695 560 (42 ) 5,213 Total other comprehensive income (loss), net of tax $ (14,662 ) $ 3,001 $ 118 $ (11,543 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2019 and 2018: (in thousands) Unrealized gains (losses) on debt securities Foreign currency translation adjustment Pension benefit adjustment Total other comprehensive income (loss) Nine Months Ended September 30, 2019 Pretax change before reclassifications $ 166,647 $ 3,146 $ — $ 169,793 Reclassifications out of AOCI (1,830 ) — (307 ) (2,137 ) Tax effect (38,645 ) (187 ) 80 (38,752 ) Total other comprehensive income (loss), net of tax $ 126,172 $ 2,959 $ (227 ) $ 128,904 Nine Months Ended September 30, 2018 Pretax change before reclassifications $ (101,173 ) $ (11,856 ) $ — $ (113,029 ) Reclassifications out of AOCI 4,757 — 480 5,237 Tax effect 22,483 560 (123 ) 22,920 Total other comprehensive income (loss), net of tax $ (73,933 ) $ (11,296 ) $ 357 $ (84,872 ) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Affected line items Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of debt securities $ 2,165 $ (2,522 ) $ 1,830 $ (4,757 ) Net realized investment gains Tax effect $ (465 ) $ 612 $ (429 ) $ 1,109 Pension benefit adjustment (1): Amortization of net actuarial loss $ (916 ) $ (1,205 ) $ (2,746 ) $ (3,615 ) Other operating expenses Amortization of prior service credit 1,018 1,045 3,053 3,135 Other operating expenses Pretax total $ 102 $ (160 ) $ 307 $ (480 ) Tax effect $ (26 ) $ 42 $ (80 ) $ 123 (1) These components of AOCI are components of net periodic cost. See Note 11 Employee Benefit Plans for additional details. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | For the three months ended September 30, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,540,741 $ 253,570 $ 29,822 $ 22,869 Specialty Insurance 129,190 11,021 1,859 2,015 Corporate 1,770 (19,253 ) 38 — Eliminations (505 ) — — — $ 1,671,196 $ 245,338 $ 31,719 $ 24,884 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 606,812 $ 656,154 $ 205,282 $ 72,044 $ 449 $ 1,540,741 Specialty Insurance 121,798 — 3,270 3,064 1,058 129,190 $ 728,610 $ 656,154 $ 208,552 $ 75,108 $ 1,507 $ 1,669,931 For the three months ended September 30, 2018: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 1,413,841 $ 206,539 $ 29,978 $ 28,342 Specialty Insurance 124,179 6,201 1,713 2,403 Corporate 4,461 (17,153 ) 38 — Eliminations (295 ) — — — $ 1,542,186 $ 195,587 $ 31,729 $ 30,745 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 532,769 $ 615,113 $ 195,963 $ 60,871 $ 9,125 $ 1,413,841 Specialty Insurance 116,606 — 2,981 2,573 2,019 124,179 $ 649,375 $ 615,113 $ 198,944 $ 63,444 $ 11,144 $ 1,538,020 For the nine months ended September 30, 2019: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 4,084,795 $ 628,392 $ 92,043 $ 71,839 Specialty Insurance 374,340 44,546 5,379 7,187 Corporate 15,456 (56,433 ) 115 — Eliminations (1,194 ) — — — $ 4,473,397 $ 616,505 $ 97,537 $ 79,026 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 1,561,926 $ 1,701,538 $ 573,150 $ 213,067 $ 35,114 $ 4,084,795 Specialty Insurance 348,904 — 9,490 8,496 7,450 374,340 $ 1,910,830 $ 1,701,538 $ 582,640 $ 221,563 $ 42,564 $ 4,459,135 For the nine months ended September 30, 2018: (in thousands) Revenues Income (loss) before income taxes Depreciation and amortization Capital expenditures Title Insurance and Services $ 3,968,347 $ 518,565 $ 87,438 $ 84,296 Specialty Insurance 357,750 26,220 4,981 9,981 Corporate 5,488 (54,165 ) 115 — Eliminations (854 ) — — — $ 4,330,731 $ 490,620 $ 92,534 $ 94,277 (in thousands) Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues Title Insurance and Services $ 1,515,537 $ 1,701,831 $ 588,079 $ 154,009 $ 8,891 $ 3,968,347 Specialty Insurance 339,298 — 8,807 7,561 2,084 357,750 $ 1,854,835 $ 1,701,831 $ 596,886 $ 161,570 $ 10,975 $ 4,326,097 |
Basis of Condensed Consolidat_3
Basis of Condensed Consolidated Financial Statement (Narrative) (Details) $ in Millions | Jan. 01, 2019USD ($) |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Deferred gains on previous sale and operating leaseback transactions | $ 1.3 |
Escrow Deposits, Like-Kind Ex_2
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets (Narrative) (Detail) - USD ($) $ in Billions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets [Line Items] | ||
Escrow deposits | $ 8.7 | $ 7.6 |
Like-kind exchange funds | 2.7 | 2.7 |
First American Trust | ||
Other Assets [Line Items] | ||
Escrow deposits | 3.7 | 3.6 |
Assets held-in-trust | $ 4.1 | $ 3.6 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 5,764,943 | $ 5,761,150 |
Debt Securities, Gross unrealized gains | 129,584 | 23,361 |
Debt Securities, Gross unrealized losses | (12,106) | (70,700) |
Debt securities, Estimated fair value | 5,882,421 | 5,713,811 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 208,873 | 162,904 |
Debt Securities, Gross unrealized gains | 984 | 741 |
Debt Securities, Gross unrealized losses | (283) | (1,139) |
Debt securities, Estimated fair value | 209,574 | 162,506 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 1,041,195 | 1,050,134 |
Debt Securities, Gross unrealized gains | 49,524 | 7,210 |
Debt Securities, Gross unrealized losses | (129) | (12,309) |
Debt securities, Estimated fair value | 1,090,590 | 1,045,035 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 159,039 | 158,885 |
Debt Securities, Gross unrealized gains | 2,437 | 571 |
Debt Securities, Gross unrealized losses | (116) | (2,159) |
Debt securities, Estimated fair value | 161,360 | 157,297 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 364,815 | 319,115 |
Debt Securities, Gross unrealized gains | 8,736 | 1,145 |
Debt Securities, Gross unrealized losses | (115) | (4,093) |
Debt securities, Estimated fair value | 373,436 | 316,167 |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 3,155,538 | 3,219,585 |
Debt Securities, Gross unrealized gains | 40,519 | 12,030 |
Debt Securities, Gross unrealized losses | (9,900) | (29,016) |
Debt securities, Estimated fair value | 3,186,157 | 3,202,599 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 564,505 | 575,646 |
Debt Securities, Gross unrealized gains | 19,278 | 1,113 |
Debt Securities, Gross unrealized losses | (1,179) | (15,499) |
Debt securities, Estimated fair value | 582,604 | 561,260 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 270,978 | 274,881 |
Debt Securities, Gross unrealized gains | 8,106 | 551 |
Debt Securities, Gross unrealized losses | (384) | (6,485) |
Debt securities, Estimated fair value | $ 278,700 | $ 268,947 |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule Of Debt and Equity Securities [Line Items] | |||||
Realized gains on sales of debt securities | $ 3,300 | $ 600 | $ 8,200 | $ 1,900 | |
Realized losses on sales of debt securities | 500 | 3,100 | 5,200 | 6,900 | |
Proceeds from sale of debt securities | 229,400 | 183,100 | 852,100 | 525,400 | |
Realized and unrealized net gains (losses) on equity securities | 200 | 14,200 | 41,600 | 16,000 | |
Net unrealized gains (losses) on equity securities | (1,500) | $ 14,100 | 35,900 | $ 15,900 | |
Debt securities, Estimated fair value | 5,882,421 | 5,882,421 | $ 5,713,811 | ||
Estimated fair value of debt securities, Unrealized loss position | 1,556,546 | 1,556,546 | $ 3,373,514 | ||
Bank Loans | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 78,100 | 78,100 | |||
Estimated fair value of debt securities, Unrealized loss position | 29,700 | 29,700 | |||
Emerging Market Securities | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 57,200 | 57,200 | |||
Estimated fair value of debt securities, Unrealized loss position | 500 | 500 | |||
Non-Investment Grade | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 123,792 | 123,792 | |||
Estimated fair value of debt securities, Unrealized loss position | 42,654 | 42,654 | |||
Non-Investment Grade | Bank Loans | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 68,100 | 68,100 | |||
Estimated fair value of debt securities, Unrealized loss position | 28,800 | 28,800 | |||
Non-Investment Grade | High Yield Corporate Debt Securities | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 45,200 | 45,200 | |||
Estimated fair value of debt securities, Unrealized loss position | 13,700 | 13,700 | |||
Non-Investment Grade | Emerging Market Securities | |||||
Schedule Of Debt and Equity Securities [Line Items] | |||||
Debt securities, Estimated fair value | 9,100 | 9,100 | |||
Estimated fair value of debt securities, Unrealized loss position | $ 200 | $ 200 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 795,192 | $ 1,672,754 |
Unrealized losses, Less than 12 months | (5,208) | (25,709) |
Estimated fair value, 12 months or longer | 761,354 | 1,700,760 |
Unrealized losses, 12 months or longer | (6,898) | (44,991) |
Estimated fair value, Total | 1,556,546 | 3,373,514 |
Unrealized losses, Total | (12,106) | (70,700) |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 42,776 | 19,749 |
Unrealized losses, Less than 12 months | (271) | (85) |
Estimated fair value, 12 months or longer | 4,925 | 55,615 |
Unrealized losses, 12 months or longer | (12) | (1,054) |
Estimated fair value, Total | 47,701 | 75,364 |
Unrealized losses, Total | (283) | (1,139) |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 42,084 | 172,387 |
Unrealized losses, Less than 12 months | (111) | (1,772) |
Estimated fair value, 12 months or longer | 3,397 | 369,139 |
Unrealized losses, 12 months or longer | (18) | (10,537) |
Estimated fair value, Total | 45,481 | 541,526 |
Unrealized losses, Total | (129) | (12,309) |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 26,049 | 23,654 |
Unrealized losses, Less than 12 months | (78) | (1,037) |
Estimated fair value, 12 months or longer | 10,801 | 42,119 |
Unrealized losses, 12 months or longer | (38) | (1,122) |
Estimated fair value, Total | 36,850 | 65,773 |
Unrealized losses, Total | (116) | (2,159) |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 14,935 | 56,270 |
Unrealized losses, Less than 12 months | (32) | (748) |
Estimated fair value, 12 months or longer | 32,537 | 90,631 |
Unrealized losses, 12 months or longer | (83) | (3,345) |
Estimated fair value, Total | 47,472 | 146,901 |
Unrealized losses, Total | (115) | (4,093) |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 581,727 | 850,459 |
Unrealized losses, Less than 12 months | (3,900) | (6,955) |
Estimated fair value, 12 months or longer | 683,684 | 982,610 |
Unrealized losses, 12 months or longer | (6,000) | (22,061) |
Estimated fair value, Total | 1,265,411 | 1,833,069 |
Unrealized losses, Total | (9,900) | (29,016) |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 69,127 | 374,473 |
Unrealized losses, Less than 12 months | (668) | (10,537) |
Estimated fair value, 12 months or longer | 13,933 | 109,844 |
Unrealized losses, 12 months or longer | (511) | (4,962) |
Estimated fair value, Total | 83,060 | 484,317 |
Unrealized losses, Total | (1,179) | (15,499) |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 18,494 | 175,762 |
Unrealized losses, Less than 12 months | (148) | (4,575) |
Estimated fair value, 12 months or longer | 12,077 | 50,802 |
Unrealized losses, 12 months or longer | (236) | (1,910) |
Estimated fair value, Total | 30,571 | 226,564 |
Unrealized losses, Total | $ (384) | $ (6,485) |
Debt and Equity Securities (I_2
Debt and Equity Securities (Investments in Debt Securities by Contractual Maturity) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 5,764,943 | $ 5,761,150 |
Debt securities, Estimated fair value | 5,882,421 | 5,713,811 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 76,388 | |
Amortized cost, Due after one through five years | 103,981 | |
Amortized cost, Due after five through ten years | 24,067 | |
Amortized cost, Due after ten years | 4,437 | |
Debt Securities, Amortized cost | 208,873 | 162,904 |
Estimated fair value, Due in one year or less | 76,438 | |
Estimated fair value, Due after one through five years | 104,782 | |
Estimated fair value, Due after five through ten years | 24,035 | |
Estimated fair value, Due after ten years | 4,319 | |
Debt securities, Estimated fair value | 209,574 | 162,506 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 74,855 | |
Amortized cost, Due after one through five years | 156,509 | |
Amortized cost, Due after five through ten years | 303,603 | |
Amortized cost, Due after ten years | 506,228 | |
Debt Securities, Amortized cost | 1,041,195 | 1,050,134 |
Estimated fair value, Due in one year or less | 75,082 | |
Estimated fair value, Due after one through five years | 158,756 | |
Estimated fair value, Due after five through ten years | 318,688 | |
Estimated fair value, Due after ten years | 538,064 | |
Debt securities, Estimated fair value | 1,090,590 | 1,045,035 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 12,967 | |
Amortized cost, Due after one through five years | 81,436 | |
Amortized cost, Due after five through ten years | 56,338 | |
Amortized cost, Due after ten years | 8,298 | |
Debt Securities, Amortized cost | 159,039 | 158,885 |
Estimated fair value, Due in one year or less | 12,928 | |
Estimated fair value, Due after one through five years | 82,186 | |
Estimated fair value, Due after five through ten years | 57,367 | |
Estimated fair value, Due after ten years | 8,879 | |
Debt securities, Estimated fair value | 161,360 | 157,297 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 30,394 | |
Amortized cost, Due after one through five years | 119,642 | |
Amortized cost, Due after five through ten years | 140,215 | |
Amortized cost, Due after ten years | 74,564 | |
Debt Securities, Amortized cost | 364,815 | 319,115 |
Estimated fair value, Due in one year or less | 30,427 | |
Estimated fair value, Due after one through five years | 120,701 | |
Estimated fair value, Due after five through ten years | 144,471 | |
Estimated fair value, Due after ten years | 77,837 | |
Debt securities, Estimated fair value | 373,436 | 316,167 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 45,800 | |
Amortized cost, Due after one through five years | 300,810 | |
Amortized cost, Due after five through ten years | 184,908 | |
Amortized cost, Due after ten years | 32,987 | |
Debt Securities, Amortized cost | 564,505 | 575,646 |
Estimated fair value, Due in one year or less | 45,867 | |
Estimated fair value, Due after one through five years | 308,609 | |
Estimated fair value, Due after five through ten years | 192,169 | |
Estimated fair value, Due after ten years | 35,959 | |
Debt securities, Estimated fair value | 582,604 | 561,260 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 25,623 | |
Amortized cost, Due after one through five years | 169,666 | |
Amortized cost, Due after five through ten years | 66,489 | |
Amortized cost, Due after ten years | 9,200 | |
Debt Securities, Amortized cost | 270,978 | 274,881 |
Estimated fair value, Due in one year or less | 25,656 | |
Estimated fair value, Due after one through five years | 172,679 | |
Estimated fair value, Due after five through ten years | 70,301 | |
Estimated fair value, Due after ten years | 10,064 | |
Debt securities, Estimated fair value | 278,700 | $ 268,947 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 266,027 | |
Amortized cost, Due after one through five years | 932,044 | |
Amortized cost, Due after five through ten years | 775,620 | |
Amortized cost, Due after ten years | 635,714 | |
Debt Securities, Amortized cost | 2,609,405 | |
Estimated fair value, Due in one year or less | 266,398 | |
Estimated fair value, Due after one through five years | 947,713 | |
Estimated fair value, Due after five through ten years | 807,031 | |
Estimated fair value, Due after ten years | 675,122 | |
Debt securities, Estimated fair value | 2,696,264 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 3,155,538 | |
Estimated fair value | $ 3,186,157 |
Debt and Equity Securities (I_3
Debt and Equity Securities (Investments in Equity Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | $ 388,339 | $ 358,352 |
Equity securities, Estimated fair value | 416,488 | 353,535 |
Preferred stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 18,487 | 16,892 |
Equity securities, Estimated fair value | 14,262 | 14,162 |
Common stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 369,852 | 341,460 |
Equity securities, Estimated fair value | $ 402,226 | $ 339,373 |
Debt and Equity Securities (Com
Debt and Equity Securities (Composition of Investment Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,882,421 | $ 5,713,811 |
Equity securities, Estimated fair value | 416,488 | 353,535 |
Estimated fair value, Total | $ 5,896,683 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Percentage of investment portfolio by credit rating agencies | 100.00% | |
Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,316,177 | |
Estimated fair value, Total | $ 5,316,220 | |
Percentage of debt securities by credit rating agencies | 90.40% | |
Percentage of investment portfolio by credit rating agencies | 90.20% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 442,452 | |
Estimated fair value, Total | $ 455,576 | |
Percentage of debt securities by credit rating agencies | 7.50% | |
Percentage of investment portfolio by credit rating agencies | 7.70% | |
Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 123,792 | |
Estimated fair value, Total | $ 124,887 | |
Percentage of debt securities by credit rating agencies | 2.10% | |
Percentage of investment portfolio by credit rating agencies | 2.10% | |
U.S. Treasury Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 209,574 | 162,506 |
Percentage of debt securities by credit rating agencies | 100.00% | |
U.S. Treasury Bonds | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 209,574 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
U.S. Treasury Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
U.S. Treasury Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
Municipal Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,090,590 | 1,045,035 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Municipal Bonds | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,048,526 | |
Percentage of debt securities by credit rating agencies | 96.20% | |
Municipal Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 40,686 | |
Percentage of debt securities by credit rating agencies | 3.70% | |
Municipal Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,378 | |
Percentage of debt securities by credit rating agencies | 0.10% | |
Foreign Government Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 161,360 | 157,297 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign Government Bonds | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 141,959 | |
Percentage of debt securities by credit rating agencies | 87.90% | |
Foreign Government Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 13,820 | |
Percentage of debt securities by credit rating agencies | 8.60% | |
Foreign Government Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,581 | |
Percentage of debt securities by credit rating agencies | 3.50% | |
Governmental Agency Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 373,436 | 316,167 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental Agency Bonds | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 373,436 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental Agency Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
Governmental Agency Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,186,157 | 3,202,599 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,186,157 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
Governmental Agency Mortgage-Backed Securities | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 0 | |
Percentage of debt securities by credit rating agencies | 0.00% | |
U.S. Corporate Debt Securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 582,604 | 561,260 |
Percentage of debt securities by credit rating agencies | 100.00% | |
U.S. Corporate Debt Securities | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 251,999 | |
Percentage of debt securities by credit rating agencies | 43.20% | |
U.S. Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 236,341 | |
Percentage of debt securities by credit rating agencies | 40.60% | |
U.S. Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 94,264 | |
Percentage of debt securities by credit rating agencies | 16.20% | |
Foreign Corporate Debt Securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 278,700 | 268,947 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign Corporate Debt Securities | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 104,526 | |
Percentage of debt securities by credit rating agencies | 37.50% | |
Foreign Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 151,605 | |
Percentage of debt securities by credit rating agencies | 54.40% | |
Foreign Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 22,569 | |
Percentage of debt securities by credit rating agencies | 8.10% | |
Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 14,262 | $ 14,162 |
Percentage of equity securities by credit rating agencies | 100.00% | |
Preferred stocks | Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 43 | |
Percentage of equity securities by credit rating agencies | 0.30% | |
Preferred stocks | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 13,124 | |
Percentage of equity securities by credit rating agencies | 92.00% | |
Preferred stocks | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 1,095 | |
Percentage of equity securities by credit rating agencies | 7.70% |
Debt and Equity Securities (C_2
Debt and Equity Securities (Composition of Debt Securities Portfolio in Unrealized Loss Position by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,556,546 | $ 3,373,514 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,472,577 | |
Percentage of debt securities in unrealized loss position | 94.60% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 41,315 | |
Percentage of debt securities in unrealized loss position | 2.70% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 42,654 | |
Percentage of debt securities in unrealized loss position | 2.70% | |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 47,701 | 75,364 |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. Treasury Bonds | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 47,701 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. Treasury Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
U.S. Treasury Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 45,481 | 541,526 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Municipal Bonds | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 43,010 | |
Percentage of debt securities in unrealized loss position | 94.60% | |
Municipal Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 2,471 | |
Percentage of debt securities in unrealized loss position | 5.40% | |
Municipal Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 36,850 | 65,773 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign Government Bonds | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 36,850 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign Government Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Foreign Government Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 47,472 | 146,901 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental Agency Bonds | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 47,472 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental Agency Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Governmental Agency Bonds | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,265,411 | 1,833,069 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,265,411 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental Agency Mortgage-Backed Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
Governmental Agency Mortgage-Backed Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 0 | |
Percentage of debt securities in unrealized loss position | 0.00% | |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 83,060 | 484,317 |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. Corporate Debt Securities | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 18,790 | |
Percentage of debt securities in unrealized loss position | 22.60% | |
U.S. Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 29,450 | |
Percentage of debt securities in unrealized loss position | 35.50% | |
U.S. Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 34,820 | |
Percentage of debt securities in unrealized loss position | 41.90% | |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 30,571 | $ 226,564 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign Corporate Debt Securities | Investment Grade | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 13,343 | |
Percentage of debt securities in unrealized loss position | 43.70% | |
Foreign Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 9,394 | |
Percentage of debt securities in unrealized loss position | 30.70% | |
Foreign Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,834 | |
Percentage of debt securities in unrealized loss position | 25.60% |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease assets | $ 288,406 | $ 0 |
Finance lease assets | $ 3,864 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |
Total lease assets | $ 292,270 | |
Liabilities | ||
Operating lease liabilities | 319,445 | $ 0 |
Finance lease liabilities | $ 4,150 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | faf:NotesAndContractsPayableMember | |
Total lease liabilities | $ 323,595 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease cost: | ||
Net lease cost | $ 30,622 | $ 90,829 |
Other Operating Expenses | ||
Operating Leased Assets [Line Items] | ||
Operating lease cost | 21,770 | 65,332 |
Lease cost: | ||
Variable lease cost | 8,369 | 23,678 |
Short-term lease cost | 327 | 1,317 |
Depreciation and Amortization | ||
Lease cost: | ||
Amortization of lease assets | 490 | 1,586 |
Interest | ||
Lease cost: | ||
Interest on lease liabilities | 43 | 148 |
Information and Other | ||
Lease cost: | ||
Sublease income | $ (377) | $ (1,232) |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Operating and Finance Lease with Noncancelable Lease Terms (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases Maturities | ||
Operating Leases, Remainder of 2019 | $ 22,438 | |
Operating Leases, 2020 | 82,378 | |
Operating Leases, 2021 | 68,112 | |
Operating Leases, 2022 | 56,188 | |
Operating Leases, 2023 | 41,864 | |
Operating Leases, 2024 | 29,632 | |
Operating Leases, Thereafter | 59,414 | |
Operating Leases, Total lease payments | 360,026 | |
Operating Leases, Interest | (40,581) | |
Operating Leases, Present value of lease liabilities | 319,445 | $ 0 |
Finance Leases Maturities | ||
Finance Leases, Remainder of 2019 | 362 | |
Finance Leases, 2020 | 1,445 | |
Finance Leases, 2021 | 1,140 | |
Finance Leases, 2022 | 1,045 | |
Finance Leases, 2023 | 437 | |
Finance Leases, 2024 | 0 | |
Finance Leases, Thereafter | 0 | |
Finance Leases, Total lease payments | 4,429 | |
Finance Leases, Interest | (279) | |
Finance Leases, Present value of lease liabilities | 4,150 | |
Operating and Finance Leases Maturities | ||
Total, Remainder of 2019 | 22,800 | |
Total, 2020 | 83,823 | |
Total, 2021 | 69,252 | |
Total, 2022 | 57,233 | |
Total, 2023 | 42,301 | |
Total, 2024 | 29,632 | |
Total, Thereafter | 59,414 | |
Total lease payments | 364,455 | |
Total, Interest | (40,860) | |
Total, Present value of lease liabilities | $ 323,595 |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Lease Terms and Discount Rate (Detail) | Sep. 30, 2019 |
Weighted-average remaining lease terms (years): | |
Operating leases | 5 years 6 months |
Finance leases | 3 years 4 months 24 days |
Weighted-average discount rates: | |
Operating leases | 4.24% |
Finance leases | 4.12% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Lease Liabilities (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases | $ 66,705 |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from finance leases | 148 |
Cash paid for amounts included in the measurement of lease liabilities, Financing cash flows from finance leases | 1,446 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 26,785 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Operating Leases with Noncancelable Lease Terms (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 76,375 |
2020 | 68,026 |
2021 | 54,853 |
2022 | 41,859 |
2023 | 28,948 |
Thereafter | 64,732 |
Total lease payments | $ 334,793 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Total rental expense for all operating lease | $ 22.2 | $ 67 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Reportable Segment) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 1,144,166 |
Acquisitions | 4,689 |
Foreign currency translation | 910 |
Ending balance | 1,149,765 |
Title Insurance and Services | |
Goodwill [Line Items] | |
Beginning balance | 1,097,401 |
Acquisitions | 4,689 |
Foreign currency translation | 910 |
Ending balance | 1,103,000 |
Specialty Insurance | |
Goodwill [Line Items] | |
Beginning balance | 46,765 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Ending balance | $ 46,765 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2019ReportingUnit | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Number of reporting units | 4 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 99,737 | $ 114,603 |
Noncompete agreements | 13,464 | 14,402 |
Trademarks | 10,769 | 10,753 |
Internal-use software licenses | 20,238 | 29,394 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 147,048 | 171,992 |
Accumulated amortization | (71,108) | (79,535) |
Finite-lived intangible assets, net | 75,940 | 92,457 |
Licenses | 16,915 | 16,915 |
Other intangibles assets, net | $ 92,855 | $ 109,372 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expense | $ 6.7 | $ 7.9 | $ 22 | $ 22 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Remainder of 2019 | $ 6,165 |
2020 | 16,752 |
2021 | 11,442 |
2022 | 10,447 |
2023 | 9,851 |
2024 | $ 7,197 |
Reserve for Known and Incurre_3
Reserve for Known and Incurred but Not Reported Claims (Activity in Reserve for Known and Incurred but Not Reported Claims) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 1,042,679 | $ 1,028,933 | ||
Provision related to current year | 325,012 | 328,326 | ||
Provision related to prior years | 6,513 | 8,069 | ||
Total Provision | $ 124,683 | $ 122,196 | 331,525 | 336,395 |
Payments, net of recoveries, related to: Current year | 158,285 | 167,802 | ||
Payments, net of recoveries, related to: Prior years | 146,889 | 166,168 | ||
Total Payments, net of recoveries | 305,174 | 333,970 | ||
Other | (14,306) | (4,399) | ||
Balance at end of period | $ 1,054,724 | $ 1,026,959 | $ 1,054,724 | $ 1,026,959 |
Reserve for Known and Incurre_4
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Insurance [Abstract] | ||||
Provision for title loss, percentage of title premiums and escrow fees | 4.00% | 4.00% | 4.00% | 4.00% |
Ultimate loss rate | 4.00% | 4.00% | 4.00% | 4.00% |
Estimated increase in loss reserve for prior policy years | $ 0 | $ 0 | $ 0 | $ 0 |
Reserve for Known and Incurre_5
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Insurance [Abstract] | ||||
Known title claims, amount | $ 84,569 | $ 80,306 | ||
Incurred but not reported claims, amount | 888,118 | 877,134 | ||
Total title claims, amount | 972,687 | 957,440 | ||
Non-title claims, amount | 82,037 | 85,239 | ||
Total loss reserves, amount | $ 1,054,724 | $ 1,042,679 | $ 1,026,959 | $ 1,028,933 |
Known title claims, percent | 8.00% | 7.70% | ||
Incurred but not reported claims, percent | 84.20% | 84.10% | ||
Total title claims, percent | 92.20% | 91.80% | ||
Non-title claims, percent | 7.80% | 8.20% | ||
Total loss reserves, percent | 100.00% | 100.00% |
Notes and Contracts Payable (Na
Notes and Contracts Payable (Narrative) (Detail) - USD ($) | 1 Months Ended | 9 Months Ended |
Apr. 30, 2019 | Sep. 30, 2019 | |
Line of Credit Facility [Abstract] | ||
Line of credit facility, maximum increase in revolving credit expansion option | $ 350,000,000 | |
Borrowings under credit facility | 160,000,000 | |
Repayments of lines of credit | 160,000,000 | |
Outstanding borrowings under credit facility | $ 160,000,000 | |
Credit facility interest rate | 3.54% | |
Revolving loans, interest rate description | At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the credit agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc., Standard & Poor’s Rating Services and/or Fitch Ratings Inc. The minimum applicable spread for Alternate Base Rate borrowings is 0.25% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.25% and the maximum is 2.00%. The rate of interest on any term loans incurred in connection with the expansion option will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. | |
Credit agreement, covenant compliance description | The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of September 30, 2019, the Company was in compliance with the financial covenants under the credit agreement. | |
Base Rate | Minimum | ||
Line of Credit Facility [Abstract] | ||
Debt instrument, applicable spread | 0.25% | |
Base Rate | Maximum | ||
Line of Credit Facility [Abstract] | ||
Debt instrument, applicable spread | 1.00% | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Line of Credit Facility [Abstract] | ||
Debt instrument, applicable spread | 1.25% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Line of Credit Facility [Abstract] | ||
Debt instrument, applicable spread | 2.00% | |
Unsecured Debt | JPMorgan Chase Bank, N.A | ||
Line of Credit Facility [Abstract] | ||
Credit facility, maximum borrowing capacity | $ 700,000,000 | |
Credit agreement termination date | Apr. 30, 2024 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rates | 23.30% | 22.60% | 21.30% | 22.00% | |
Federal income tax rates | 21.00% | 21.00% | 21.00% | 21.00% | |
Net payable related to spin-off tax liabilities | $ 0.5 | $ 0.5 | $ 15.6 | ||
Liability for income taxes associated with uncertain tax positions | 5.1 | 5.1 | 13.3 | ||
Offsetting tax benefits related to uncertain tax positions | $ 2 | 2 | 3.7 | ||
Other tax benefits related to interest and penalties of uncertain tax positions | $ 0.1 | $ 5.8 | |||
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. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the Company | $ 187,182 | $ 151,480 | $ 483,412 | $ 382,847 |
Basic weighted-average shares | 113,163 | 112,722 | 112,983 | 112,541 |
Effect of dilutive employee stock options and restricted stock units (“RSUs”) | 578 | 643 | 526 | 672 |
Diluted weighted-average shares | 113,741 | 113,365 | 113,509 | 113,213 |
Basic | $ 1.65 | $ 1.34 | $ 4.28 | $ 3.40 |
Diluted | $ 1.65 | $ 1.34 | $ 4.26 | $ 3.38 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the weighted-average diluted common shares outstanding | 0 | 0 | ||
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from the weighted-average diluted common shares outstanding | 0 | 0 | 0 | 0 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Costs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||||
Service costs | $ 70 | $ 130 | $ 211 | $ 390 |
Interest costs | 2,280 | 2,018 | 6,838 | 6,054 |
Amortization of net actuarial loss | 916 | 1,205 | 2,746 | 3,615 |
Amortization of prior service credit | (1,018) | (1,045) | (3,053) | (3,135) |
Net periodic costs | $ 2,248 | $ 2,308 | $ 6,742 | $ 6,924 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - Unfunded Supplemental Benefit Plans $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution for pension obligation | $ 10.8 |
Cash contribution to plans during the remainder | $ 3.8 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | $ 5,882,421 | $ 5,713,811 |
Equity securities, estimated fair value | 416,488 | 353,535 |
Debt and Equity securities, estimated fair value | 6,298,909 | 6,067,346 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 416,488 | 353,535 |
Debt and Equity securities, estimated fair value | 416,488 | 353,535 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 5,882,421 | 5,713,811 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 5,882,421 | 5,713,811 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 0 | 0 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 209,574 | 162,506 |
U.S. Treasury Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. Treasury Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 209,574 | 162,506 |
U.S. Treasury Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,090,590 | 1,045,035 |
Municipal Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,090,590 | 1,045,035 |
Municipal Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign Government Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 161,360 | 157,297 |
Foreign Government Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign Government Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 161,360 | 157,297 |
Foreign Government Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 373,436 | 316,167 |
Governmental Agency Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental Agency Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 373,436 | 316,167 |
Governmental Agency Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental Agency Mortgage-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,186,157 | 3,202,599 |
Governmental Agency Mortgage-Backed Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Governmental Agency Mortgage-Backed Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,186,157 | 3,202,599 |
Governmental Agency Mortgage-Backed Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 582,604 | 561,260 |
U.S. Corporate Debt Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
U.S. Corporate Debt Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 582,604 | 561,260 |
U.S. Corporate Debt Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 278,700 | 268,947 |
Foreign Corporate Debt Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Foreign Corporate Debt Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 278,700 | 268,947 |
Foreign Corporate Debt Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 14,262 | 14,162 |
Preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 14,262 | 14,162 |
Preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 402,226 | 339,373 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 402,226 | 339,373 |
Common Stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Common Stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair value assets, Level 1 to Level 2 transfers amount | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | $ 0 | $ 0 |
Fair Value 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, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,710,999 | $ 1,467,129 |
Deposits with banks | 38,459 | 36,209 |
Notes receivable, net | 19,156 | 13,237 |
Secured financings receivable | 352,013 | 76,311 |
Liabilities: | ||
Secured financings payable | 233,483 | 76,313 |
Notes and contracts payable | 728,332 | 732,019 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,710,999 | 1,467,129 |
Deposits with banks | 38,385 | 35,979 |
Notes receivable, net | 19,029 | 12,805 |
Secured financings receivable | 352,013 | 76,311 |
Liabilities: | ||
Secured financings payable | 233,483 | 76,313 |
Notes and contracts payable | 762,011 | 741,839 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,710,999 | 1,467,129 |
Deposits with banks | 1,518 | 4,307 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 36,867 | 31,672 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 352,013 | 76,311 |
Liabilities: | ||
Secured financings payable | 233,483 | 76,313 |
Notes and contracts payable | 757,739 | 736,048 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 19,029 | 12,805 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | $ 4,272 | $ 5,791 |
Share-Based Compensation (Costs
Share-Based Compensation (Costs Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 7,556 | $ 7,241 | $ 34,911 | $ 34,376 |
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 6,608 | 6,392 | 31,761 | 31,570 |
Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 948 | $ 849 | $ 3,150 | $ 2,806 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - RSUs - RSUs shares in Thousands | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
RSU, Shares | |
Unvested at December 31, 2018 | shares | 1,248 |
Granted during 2019 | shares | 758 |
Vested during 2019 | shares | (822) |
Forfeited during 2019 | shares | (19) |
Unvested at September 30, 2019 | shares | 1,165 |
RSU, Weighted-average grant-date fair value | |
Unvested at December 31, 2018 | $ / shares | $ 44.53 |
Granted during 2019 | $ / shares | 51.31 |
Vested during 2019 | $ / shares | 44.49 |
Forfeited during 2019 | $ / shares | 47.44 |
Unvested at September 30, 2019 | $ / shares | $ 48.91 |
Accumulated Other Comprehensi_3
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | $ (160,573) | ||||
Change in unrealized gains (losses) on debt securities | 164,817 | ||||
Change in foreign currency translation adjustment | 3,146 | ||||
Amortization of net actuarial loss | 2,746 | ||||
Amortization of prior service credit | (3,053) | ||||
Tax effect | $ (3,423) | $ 5,213 | (38,752) | $ 22,920 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (31,669) | (31,669) | |||
Allocated to the Company | (31,670) | (31,670) | $ (160,575) | ||
Allocated to noncontrolling interests | 1 | 1 | |||
Unrealized gains (losses) on debt securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (42,165) | ||||
Change in unrealized gains (losses) on debt securities | 164,817 | ||||
Tax effect | (3,690) | 4,695 | (38,645) | 22,483 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 84,007 | 84,007 | |||
Allocated to the Company | 84,006 | 84,006 | |||
Allocated to noncontrolling interests | 1 | 1 | |||
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 | (65,628) | ||||
Change in foreign currency translation adjustment | 3,146 | ||||
Tax effect | 241 | 560 | (187) | 560 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (62,669) | (62,669) | |||
Allocated to the Company | (62,669) | (62,669) | |||
Allocated to noncontrolling interests | 0 | 0 | |||
Pension Benefit Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (52,780) | ||||
Amortization of net actuarial loss | 2,746 | ||||
Amortization of prior service credit | (3,053) | ||||
Tax effect | 26 | $ (42) | 80 | $ (123) | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (53,007) | (53,007) | |||
Allocated to the Company | (53,007) | (53,007) | |||
Allocated to noncontrolling interests | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pretax change before reclassifications | $ 11,734 | $ (19,438) | $ 169,793 | $ (113,029) | ||||
Reclassifications out of AOCI | (2,267) | 2,682 | (2,137) | 5,237 | ||||
Tax effect | (3,423) | 5,213 | (38,752) | 22,920 | ||||
Total other comprehensive income (loss), net of tax | 6,044 | $ 56,543 | $ 66,317 | (11,543) | $ (22,901) | $ (50,428) | 128,904 | (84,872) |
Unrealized gains (losses) on debt securities | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pretax change before reclassifications | 19,348 | (21,879) | 166,647 | (101,173) | ||||
Reclassifications out of AOCI | (2,165) | 2,522 | (1,830) | 4,757 | ||||
Tax effect | (3,690) | 4,695 | (38,645) | 22,483 | ||||
Total other comprehensive income (loss), net of tax | 13,493 | (14,662) | 126,172 | (73,933) | ||||
Foreign Currency Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pretax change before reclassifications | (7,614) | 2,441 | 3,146 | (11,856) | ||||
Reclassifications out of AOCI | 0 | 0 | 0 | 0 | ||||
Tax effect | 241 | 560 | (187) | 560 | ||||
Total other comprehensive income (loss), net of tax | (7,373) | 3,001 | 2,959 | (11,296) | ||||
Pension Benefit Adjustment | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Pretax change before reclassifications | 0 | 0 | 0 | 0 | ||||
Reclassifications out of AOCI | (102) | 160 | (307) | 480 | ||||
Tax effect | 26 | (42) | 80 | (123) | ||||
Total other comprehensive income (loss), net of tax | $ (76) | $ 118 | $ (227) | $ 357 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial loss | $ 2,746 | ||||
Amortization of prior service credit | 3,053 | ||||
Reclassifications out of AOCI | $ 2,267 | $ (2,682) | 2,137 | $ (5,237) | |
Unrealized gains (losses) on debt securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains (losses) on sales of debt securities | 2,165 | (2,522) | 1,830 | (4,757) | |
Tax effect | (465) | 612 | (429) | 1,109 | |
Reclassifications out of AOCI | 2,165 | (2,522) | 1,830 | (4,757) | |
Pension Benefit Adjustment | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial loss | [1] | (916) | (1,205) | (2,746) | (3,615) |
Amortization of prior service credit | [1] | 1,018 | 1,045 | 3,053 | 3,135 |
Tax effect | [1] | (26) | 42 | (80) | 123 |
Reclassifications out of AOCI | [1] | $ 102 | $ (160) | $ 307 | $ (480) |
[1] | These components of AOCI are components of net periodic cost. See Note 11 Employee Benefit Plans for additional details. |
Litigation and Regulatory Con_2
Litigation and Regulatory Contingencies (Narrative) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)Transaction | |
Loss Contingencies [Line Items] | |
Loss contingency, pending claims, number | Transaction | 129 |
Loss contingency, damages sought, value | $ 3,100 |
Loss contingency damages sought premium taxes | 38,000 |
Loss contingency estimated recovery | 2,800 |
Canadian Taxing Authority | |
Loss Contingencies [Line Items] | |
Income tax authority assessment | $ 14,400 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2019State | |
Segment Reporting Information [Line Items] | |
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 | 46 |
Number of states issues home warranty contracts | 35 |
California | |
Segment Reporting Information [Line Items] | |
Policy liability percentage | 60.00% |
Segment Information (Schedule o
Segment Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,671,196 | $ 1,542,186 | $ 4,473,397 | $ 4,330,731 |
Income (loss) before income taxes | 245,338 | 195,587 | 616,505 | 490,620 |
Depreciation and amortization | 31,719 | 31,729 | 97,537 | 92,534 |
Capital expenditures | 24,884 | 30,745 | 79,026 | 94,277 |
Direct premiums and escrow fees | 728,610 | 649,375 | 1,910,830 | 1,854,835 |
Agent premiums | 656,154 | 615,113 | 1,701,538 | 1,701,831 |
Information and other | 208,297 | 198,680 | 581,858 | 596,090 |
Net investment income | 76,628 | 67,874 | 236,607 | 167,000 |
Net realized investment gains (losses) | 1,507 | 11,144 | 42,564 | 10,975 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,669,931 | 1,538,020 | 4,459,135 | 4,326,097 |
Direct premiums and escrow fees | 728,610 | 649,375 | 1,910,830 | 1,854,835 |
Agent premiums | 656,154 | 615,113 | 1,701,538 | 1,701,831 |
Information and other | 208,552 | 198,944 | 582,640 | 596,886 |
Net investment income | 75,108 | 63,444 | 221,563 | 161,570 |
Net realized investment gains (losses) | 1,507 | 11,144 | 42,564 | 10,975 |
Operating Segments | Title Insurance and Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,540,741 | 1,413,841 | 4,084,795 | 3,968,347 |
Income (loss) before income taxes | 253,570 | 206,539 | 628,392 | 518,565 |
Depreciation and amortization | 29,822 | 29,978 | 92,043 | 87,438 |
Capital expenditures | 22,869 | 28,342 | 71,839 | 84,296 |
Direct premiums and escrow fees | 606,812 | 532,769 | 1,561,926 | 1,515,537 |
Agent premiums | 656,154 | 615,113 | 1,701,538 | 1,701,831 |
Information and other | 205,282 | 195,963 | 573,150 | 588,079 |
Net investment income | 72,044 | 60,871 | 213,067 | 154,009 |
Net realized investment gains (losses) | 449 | 9,125 | 35,114 | 8,891 |
Operating Segments | Specialty Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 129,190 | 124,179 | 374,340 | 357,750 |
Income (loss) before income taxes | 11,021 | 6,201 | 44,546 | 26,220 |
Depreciation and amortization | 1,859 | 1,713 | 5,379 | 4,981 |
Capital expenditures | 2,015 | 2,403 | 7,187 | 9,981 |
Direct premiums and escrow fees | 121,798 | 116,606 | 348,904 | 339,298 |
Agent premiums | 0 | 0 | 0 | 0 |
Information and other | 3,270 | 2,981 | 9,490 | 8,807 |
Net investment income | 3,064 | 2,573 | 8,496 | 7,561 |
Net realized investment gains (losses) | 1,058 | 2,019 | 7,450 | 2,084 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,770 | 4,461 | 15,456 | 5,488 |
Income (loss) before income taxes | (19,253) | (17,153) | (56,433) | (54,165) |
Depreciation and amortization | 38 | 38 | 115 | 115 |
Capital expenditures | 0 | 0 | 0 | 0 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (505) | (295) | (1,194) | (854) |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 |