Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | First American Financial Corp | ||
Trading Symbol | FAF | ||
Entity Central Index Key | 0001472787 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 5,843,780,151 | ||
Entity Common Stock, Shares Outstanding | 112,505,747 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common stock, $0.00001 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-34580 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1911571 | ||
Entity Address, Address Line One | 1 First American Way | ||
Entity Address, City or Town | Santa Ana | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92707-5913 | ||
City Area Code | 714 | ||
Local Phone Number | 250-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive proxy statement with respect to the 2020 annual meeting of the stockholders are incorporated by reference in Part III of this report. The definitive proxy statement or an amendment to this Form 10-K will be filed no later than 120 days after the close of registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 1,485,959 | $ 1,467,129 |
Accounts and accrued income receivable, less allowances of $21,984 and $22,841 | 324,385 | 325,686 |
Income taxes receivable | 10,967 | 11,007 |
Investments: | ||
Deposits with banks | 44,422 | 36,209 |
Debt securities, includes pledged securities of $91,636 and $110,975 | 5,913,636 | 5,713,811 |
Equity securities | 392,318 | 353,535 |
Other investments | 239,067 | 121,965 |
Investments, Total | 6,589,443 | 6,225,520 |
Secured financings receivable | 287,459 | 76,311 |
Property and equipment, net | 442,014 | 457,840 |
Operating lease assets | 291,385 | 0 |
Title plants and other indexes | 579,674 | 577,467 |
Deferred income taxes | 18,283 | 16,636 |
Goodwill | 1,150,908 | 1,144,166 |
Other intangible assets, net | 91,833 | 109,372 |
Other assets | 246,857 | 219,501 |
Total assets | 11,519,167 | 10,630,635 |
LIABILITIES AND EQUITY | ||
Deposits | 3,337,431 | 3,786,183 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 58,576 | 47,079 |
Personnel costs | 218,415 | 199,711 |
Pension costs and other retirement plans | 439,390 | 386,264 |
Other | 103,975 | 145,634 |
Accounts payable and accrued liabilities | 820,356 | 778,688 |
Deferred revenue | 252,331 | 243,280 |
Reserve for known and incurred but not reported claims | 1,063,044 | 1,042,679 |
Income taxes payable | 25,475 | 8,988 |
Deferred income taxes | 266,108 | 217,097 |
Operating lease liabilities | 322,776 | 0 |
Secured financings payable | 278,412 | 76,313 |
Notes and contracts payable | 728,232 | 732,019 |
Total liabilities | 7,094,165 | 6,885,247 |
Commitments and contingencies (Note 19) | 0 | 0 |
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—112,476 shares and 111,496 shares | 1 | 1 |
Additional paid-in capital | 2,300,926 | 2,258,290 |
Retained earnings | 2,161,049 | 1,644,165 |
Accumulated other comprehensive loss | (41,492) | (160,575) |
Total stockholders’ equity | 4,420,484 | 3,741,881 |
Noncontrolling interests | 4,518 | 3,507 |
Total equity | 4,425,002 | 3,745,388 |
Total liabilities and equity | $ 11,519,167 | $ 10,630,635 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts and accrued income receivable, allowances | $ 21,984 | $ 22,841 |
Pledged securities included in debt securities | $ 91,636 | $ 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 | 112,476,000 | 111,496,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Direct premiums and escrow fees | $ 2,659,273 | $ 2,507,669 | $ 2,461,854 |
Agent premiums | 2,373,140 | 2,284,906 | 2,360,659 |
Information and other | 787,831 | 781,467 | 776,214 |
Net investment income | 315,413 | 230,289 | 162,402 |
Net realized investment gains (losses) | 66,404 | (56,487) | 11,234 |
Total revenues | 6,202,061 | 5,747,844 | 5,772,363 |
Expenses: | |||
Personnel costs | 1,806,005 | 1,748,949 | 1,723,539 |
Premiums retained by agents | 1,874,266 | 1,799,836 | 1,863,356 |
Other operating expenses | 923,298 | 900,208 | 1,055,886 |
Provision for policy losses and other claims | 446,040 | 452,633 | 450,410 |
Depreciation and amortization | 129,021 | 125,927 | 128,053 |
Premium taxes | 70,612 | 69,775 | 69,801 |
Interest | 47,801 | 40,978 | 35,987 |
Total expenses | 5,297,043 | 5,138,306 | 5,327,032 |
Income before income taxes | 905,018 | 609,538 | 445,331 |
Income taxes | 195,170 | 133,640 | 23,468 |
Net income | 709,848 | 475,898 | 421,863 |
Less: Net income (loss) attributable to noncontrolling interests | 2,438 | 1,402 | (1,186) |
Net income attributable to the Company | $ 707,410 | $ 474,496 | $ 423,049 |
Net income per share attributable to the Company’s stockholders: | |||
Basic | $ 6.26 | $ 4.21 | $ 3.79 |
Diluted | 6.22 | 4.19 | 3.76 |
Cash dividends declared per share | $ 1.68 | $ 1.60 | $ 1.44 |
Weighted-average common shares outstanding: | |||
Basic | 113,080 | 112,613 | 111,668 |
Diluted | 113,655 | 113,279 | 112,435 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 224,606 | $ 188,167 | $ 187,271 | $ 109,804 | $ 93,174 | $ 151,461 | $ 155,091 | $ 76,172 | $ 709,848 | $ 475,898 | $ 421,863 |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 125,283 | (38,418) | 63,563 | ||||||||
Foreign currency translation adjustment | 13,960 | (26,796) | 24,744 | ||||||||
Pension benefit adjustment | (20,161) | 12,680 | 74,597 | ||||||||
Total other comprehensive income (loss), net of tax | 119,082 | (52,534) | 162,904 | ||||||||
Comprehensive income | 828,930 | 423,364 | 584,767 | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 2,437 | 1,384 | (1,173) | ||||||||
Comprehensive income attributable to the Company | $ 826,493 | $ 421,980 | $ 585,940 |
Consolidated Statements of Equi
Consolidated Statements of Equity - 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, 2016 | $ 3,014,349 | $ 1 | $ 2,191,756 | $ 1,046,822 | $ (230,400) | $ 3,008,179 | $ 6,170 |
Balance, Shares at Dec. 31, 2016 | 109,944 | ||||||
Net income (loss) | 421,863 | $ 0 | 0 | 423,049 | 0 | 423,049 | (1,186) |
Dividends on common shares | (159,284) | 0 | 0 | (159,284) | 0 | (159,284) | 0 |
Shares issued in connection with share-based compensation, value | 2,732 | $ 0 | 6,226 | (3,494) | 0 | 2,732 | 0 |
Shares issued in connection with share-based compensation, shares | 981 | ||||||
Share-based compensation | 37,399 | $ 0 | 37,399 | 0 | 0 | 37,399 | 0 |
Net activity related to noncontrolling interests | (957) | 0 | 970 | 0 | 0 | 970 | (1,927) |
Other | 4,019 | 0 | 0 | 4,019 | 0 | 4,019 | 0 |
Other comprehensive income (loss) | 162,904 | 0 | 0 | 0 | 162,891 | 162,891 | 13 |
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 | (40,550) | (40,550) | |||||
Cumulative effect adjustment | Accounting Standards Update 2016-01 | 0 | $ 0 | 0 | 40,550 | (40,550) | 0 | 0 |
Net income (loss) | 475,898 | 0 | 0 | 474,496 | 0 | 474,496 | 1,402 |
Dividends on common shares | (178,487) | 0 | 0 | (178,487) | 0 | (178,487) | 0 |
Purchase of Company shares | (18,801) | $ 0 | (18,801) | 0 | 0 | (18,801) | 0 |
Purchase of Company shares, shares | (425) | ||||||
Shares issued in connection with share-based compensation, value | (4,105) | $ 0 | (599) | (3,506) | 0 | (4,105) | 0 |
Shares issued in connection with share-based compensation, shares | 996 | ||||||
Share-based compensation | 41,145 | $ 0 | 41,145 | 0 | 0 | 41,145 | 0 |
Net activity related to noncontrolling interests | (753) | 0 | 194 | 0 | 0 | 194 | (947) |
Other comprehensive income (loss) | (52,534) | 0 | 0 | 0 | (52,516) | (52,516) | (18) |
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) | 709,848 | 0 | 0 | 707,410 | 0 | 707,410 | 2,438 |
Dividends on common shares | (188,440) | 0 | 0 | (188,440) | 0 | (188,440) | 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 | (1,187) | $ 0 | 2,182 | (3,369) | 0 | (1,187) | 0 |
Shares issued in connection with share-based compensation, shares | 1,027 | ||||||
Share-based compensation | 42,474 | $ 0 | 42,474 | 0 | 0 | 42,474 | 0 |
Net activity related to noncontrolling interests | (1,380) | 0 | 46 | 0 | 0 | 46 | (1,426) |
Other comprehensive income (loss) | 119,082 | 0 | 0 | 0 | 119,083 | 119,083 | (1) |
Balance, Value at Dec. 31, 2019 | $ 4,425,002 | $ 1 | $ 2,300,926 | $ 2,161,049 | $ (41,492) | $ 4,420,484 | $ 4,518 |
Balance, Shares at Dec. 31, 2019 | 112,476 | 112,476 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 709,848 | $ 475,898 | $ 421,863 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for policy losses and other claims | 446,040 | 452,633 | 450,410 |
Depreciation and amortization | 129,021 | 125,927 | 128,053 |
Amortization of premiums and accretion of discounts on debt securities, net | 26,781 | 26,994 | 31,211 |
Net realized investment (gains) losses | (66,404) | 56,487 | (11,234) |
Share-based compensation | 42,474 | 41,145 | 37,399 |
Equity in earnings of affiliates, net | (2,836) | (2,717) | (3,785) |
Dividends from equity method investments | 5,628 | 4,909 | 11,083 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | |||
Claims paid, including assets acquired, net of recoveries | (415,321) | (450,756) | (472,047) |
Net change in income tax accounts | 16,399 | 42,079 | (102,819) |
(Increase) decrease in accounts and accrued income receivable | (27,240) | 5,264 | 12,426 |
Increase in accounts payable and accrued liabilities | 45,549 | 15,303 | 127,683 |
Increase in deferred revenue | 10,343 | 2,741 | 10,238 |
Other, net | (7,193) | (2,742) | (8,347) |
Cash provided by operating activities | 913,089 | 793,165 | 632,134 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash effect of acquisitions/dispositions | (19,674) | (79,171) | (82,993) |
Net (increase) decrease in deposits with banks | (8,307) | 3,361 | (18,319) |
Purchases of debt and equity securities | (2,340,836) | (3,157,893) | (1,970,597) |
Proceeds from sales of debt and equity securities | 1,331,192 | 1,501,402 | 1,163,765 |
Proceeds from maturities of debt securities | 1,006,755 | 640,558 | 641,442 |
Investments in unconsolidated entities | (101,000) | (1,210) | (150) |
Net change in other investments | (3,842) | (5,582) | 3,913 |
Advances under secured financing agreements | (8,001,099) | (2,380,878) | 0 |
Collections of secured financings receivable | 7,789,951 | 2,374,329 | 0 |
Capital expenditures | (106,979) | (118,170) | (134,206) |
Proceeds from sales of property and equipment | 647 | 2,630 | 9,977 |
Proceeds from insurance settlement | 960 | 0 | 0 |
Cash used for investing activities | (452,232) | (1,220,624) | (387,168) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | (448,752) | 715,617 | 291,088 |
Borrowings under secured financing agreements | 7,991,617 | 2,380,976 | 0 |
Repayments of secured financings payable | (7,789,518) | (2,374,426) | 0 |
Borrowings under unsecured credit agreement | 160,000 | 0 | 0 |
Repayments of notes and contracts payable | (165,569) | (5,294) | (5,543) |
Net activity related to noncontrolling interests | (1,154) | (745) | (969) |
Net (payments) proceeds in connection with share-based compensation | (1,187) | (4,105) | 2,732 |
Purchase of Company shares | (2,066) | (18,801) | 0 |
Payments of cash dividends | (188,440) | (178,487) | (159,284) |
Cash (used for) provided by financing activities | (445,069) | 514,735 | 128,024 |
Effect of exchange rate changes on cash | 3,042 | (7,373) | 8,098 |
Net increase in cash and cash equivalents | 18,830 | 79,903 | 381,088 |
Cash and cash equivalents—Beginning of year | 1,467,129 | 1,387,226 | 1,006,138 |
Cash and cash equivalents—End of year | 1,485,959 | 1,467,129 | 1,387,226 |
SUPPLEMENTAL INFORMATION: | |||
Interest | 46,266 | 39,183 | 33,680 |
Premium taxes | 68,276 | 68,526 | 66,785 |
Income taxes, less refunds of $1,604, $7,255 and $52,153 | $ 178,743 | $ 91,745 | $ 126,208 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Cash Flows [Abstract] | |||
Income taxes, refunds | $ 1,604 | $ 7,255 | $ 52,153 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1. Basis of Presentation and Significant Accounting Policies: First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. The Company consists of the following reportable segments 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 data and records; 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 47 states. The majority of policy liability is in the western United States, including approximately 59% 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 36 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. Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values, are accounted for at cost, less impairment and are adjusted up or down for any observable price changes. O ut-of-period adjustments During 2017, the Company identified certain uncollectible balances related to fees within its title insurance and services segment, which primarily related to reporting periods prior to 2016, that should have been previously written off. To correct for this error, the Company recorded an adjustment in 2017, which increased other operating expenses and increased accounts payable and accrued liabilities by $8.5 million. Also, during 2017, the Company identified certain title plant assets within its title insurance and services segment that should have been previously written off, and certain title plant imaging assets that were misclassified as title plant assets. To correct for these errors, the Company recorded adjustments in 2017 to net realized investment gains, depreciation and amortization and title plants and other indexes. The impact of these adjustments included an increase to depreciation and amortization of $4.7 million, a decrease to net realized investment gains of $1.8 million and a decrease to title plant and other indexes of $6.5 million. The Company does not consider these adjustments to be material, individually or in the aggregate, to any previously issued consolidated financial statements. Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. Cash equivalents The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted. Accounts and accrued income receivable Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the condition of the general economy and industry as a whole. Amounts are charged off in the period in which they are deemed to be uncollectible. Investments Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive loss. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2019 and 2018, the fair values of such investments totaled $91.6 million and $111.0 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. The Company evaluates its debt securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is other-than-temporarily impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 201 9 , the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. If the Company does not expect to recover the amortized cost basis of a debt security with declines in fair value (even if the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security), the loss is considered an other-than-temporary impairment loss and the credit portion of the loss (“credit loss”) is recognized in earnings and the non-credit portion is recognized in other comprehensive income. The credit loss is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted at the rate implicit in the security immediately prior to the recognition of the other-than-temporary impairment. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. As a result of its security-level review, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the years ended December 31, 2019, 2018 and 2017. It is possible that the Company could recognize additional other-than-temporary impairment losses on securities it owns at December 31, 2019 if future events or information cause it to determine that a decline in fair value is other-than-temporary. Equity securities Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable preferred stocks of corporate entities. Changes in the fair values of the Company’s equity securities are recognized in net realized investment gains/losses on the consolidated statements of income. Other investments Other investments consist primarily of equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary; equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values; investments in real estate; and notes receivable. Equity investments in which the Company exercises significant influence but does not control, and is not the primary beneficiary, are accounted for under the equity method of accounting. These investments are initially measured at cost and are generally adjusted by the Company’s share of equity in the income or losses of the investee. The carrying values of these investments are written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment is impaired, the Company assesses the current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity is operating. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values are measured at cost, less impairment and are adjusted up or down for any observable price changes. Investments in real estate are classified as held for sale and carried at the lower of cost or fair value, less estimated selling costs. Notes receivable are carried at cost, less reserves for losses. Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. Secured financings receivable and payable Secured financings receivable, which reflect financing transactions with correspondent mortgage lenders involved in residential real estate lending, are collateralized by mortgages on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors, generally within 30 days and more typically in less than 10 days. Secured financings receivable is stated at the principal balance outstanding and no allowance for doubtful accounts is maintained as the receivable balance is generally considered fully collectible. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 5 to 40 years and from 2 to 15 years, respectively. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Computer software, which is acquired or developed for internal use and for use with the Company’s products, is amortized over estimated useful lives ranging from 2 to 15 years using the straight-line method. Software development costs, which include certain payroll-related costs of employees directly associated with developing software in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Impairment losses on property and equipment primarily related to impairments of internally developed software of $6.0 million for the year ended December 31, 2019. Impairment losses on property and equipment were not material for the years ended December 31, 2018 and 2017. Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. On January 1, 2019, the Company adopted updated accounting guidance which requires lessees in leasing arrangements to recognize a lease asset and a liability to make lease payments on the balance sheet. In connection with its lease commitments the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company 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 for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company has also 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. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased using all, or a portion of, a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $7.5 million for 2019. Prior to 2019, operating lease commitments were not recognized as assets on the balance sheet. For further information on the Company’s leasing arrangements see Note 5 Leases. Title plants and other indexes Title plants and other indexes included title plants of $530.5 million and $530.4 million and capitalized real estate data of $49.2 million and $47.1 million at December 31, 2019 and 2018, respectively. Title plants are carried at cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is initially recorded at cost and is amortized using the straight-line method over estimated useful lives ranging from 5 to 15 years. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of title plants whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Business Combinations Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed, and are based on their estimated fair values at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill Goodwill Impairment The Company is required to perform an annual goodwill impairment assessment for each reporting unit for which goodwill has been allocated. Those reporting units include title insurance, home warranty and property and casualty insurance. The Company’s trust and other services reporting unit has no allocated goodwill and is, therefore, not assessed for impairment. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on accounting guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego a qualitative assessment and perform a quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. The Company chose to perform qualitative assessments for its title insurance and home warranty reporting units and performed a quantitative impairment test for its property and casualty insurance reporting unit for 2019, 2018 and 2017. The results of the Company’s qualitative assessments for its title insurance and home warranty reporting units supported the conclusion that their fair values were not more likely than not less than their carrying amounts and, therefore, a quantitative impairment test was not considered necessary. Based on the results of its quantitative impairment tests, the Company determined that the fair value of its property and casualty insurance reporting unit exceeded the carrying amount and, therefore, no additional analysis was required. As a result of the Company’s annual goodwill impairment assessments, the Company did not record any goodwill impairment losses for 2019, 2018 or 2017. Other intangible assets The Company’s finite-lived intangible assets consist of customer relationships, noncompete agreements, trademarks, internal-use software licenses and patents. These assets are amortized on a straight-line basis over their useful lives ranging from 1 to 20 years and are subject to impairment assessments when there is an indication of a triggering event or abandonment. The Company’s indefinite-lived other intangible assets consist of licenses which are not amortized but rather assessed for impairment by comparing the fair values to carrying amounts at least annually, and when an indicator of potential impairment has occurred. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Management’s impairment assessment for indefinite-lived other intangible assets may involve calculating the fair value by using a discounted cash flow analysis or through a market approach valuation. If the fair value exceeds its carrying amount, the asset is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment loss is recorded equal to the excess. Reserve for known and incurred but not reported claims The Company provides for title insurance losses through a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. The process of assessing the loss provision rate and the resulting IBNR reserve involves an evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include conditions in the real estate and mortgage markets, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. For recent policy years at early stages of development (generally the last three years), IBNR is generally estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. The volume and timing of title insurance claims are subject to cyclical influences from both the real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often, the lender must realize an actual loss, or at least be likely to realize an actual loss, for a title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that the sensitivity of claims to external conditions in the real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss rates exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be mater |
Statutory Restrictions On Inves
Statutory Restrictions On Investments And Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Statutory Restrictions on Investments and Stockholders’ Equity | NOTE 2. Statutory Restrictions on Investments and Stockholders’ Equity: Investments totaling $111.5 million and $129.2 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2019 and 2018, respectively. Pursuant to insurance and other regulations under which the Company’s insurance subsidiaries operate, the amount of dividends, loans and advances available to the Company is limited, principally for the protection of policyholders. As of December 31, 2019, under such regulations, the maximum amount available to the Company from its insurance subsidiaries in 2020, without prior approval from applicable regulators, was dividends of $508.9 million and loans and advances of $110.3 million. The Company’s principal title insurance subsidiary, First American Title Insurance Company (“FATICO”), maintained total statutory capital and surplus of $1.5 billion and $1.2 billion as of December 31, 2019 and 2018, respectively. Statutory net income for the years ended December 31, 2019, 2018 and 2017 was $473.6 million, $258.4 million and $306.5 million, respectively. FATICO was in compliance with the minimum statutory capital and surplus requirements as of December 31, 2019. FATICO is domiciled in Nebraska and its statutory-based financial statements are prepared in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the state of Nebraska. The state of Nebraska has adopted certain prescribed accounting practices that differ from those found in the NAIC SAP. Specifically, the timing of amounts released from the statutory premium reserve under Nebraska’s required practice differs from NAIC SAP resulting in total statutory capital and surplus that was lower by $235.5 million and $209.0 million at December 31, 2019 and 2018, respectively, than if reported in accordance with NAIC SAP. Statutory accounting principles differ in some respects from GAAP, and these differences include, but are not limited to, non-admission of certain assets (principally limitations on deferred tax assets, goodwill, capitalized furniture and equipment, capitalized software, and premiums and other receivables 90 days past due), reporting of bonds at amortized cost, the lack of recognition of right-of-use asset s and lease liabilit ies on the balance sheet for lease commitments in which the Company is a lessee , changes in the fair values of equity securities, amortization of goodwill, deferral of premiums received as statutory premium reserve, supplemental reserve (if applicable) and exclusion of the incurred but not reported claims reserve . |
Debt and Equity Securities
Debt and Equity Securities | 12 Months Ended |
Dec. 31, 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: Amortized Gross unrealized Estimated (in thousands) gains losses December 31, 2019 U.S. Treasury bonds $ 143,825 $ 469 $ (353 ) $ 143,941 Municipal bonds 1,043,252 47,804 (217 ) 1,090,839 Foreign government bonds 179,554 1,497 (961 ) 180,090 Governmental agency bonds 316,318 5,820 (219 ) 321,919 Governmental agency mortgage-backed securities 3,241,966 43,599 (7,307 ) 3,278,258 U.S. corporate debt securities 535,878 18,466 (972 ) 553,372 Foreign corporate debt securities 335,962 9,468 (213 ) 345,217 $ 5,796,755 $ 127,123 $ (10,242 ) $ 5,913,636 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 $12.1 million, $3.3 million and $5.4 million, realized losses of $6.1 million, $20.3 million and $16.4 million, and proceeds of $1.1 billion, $1.3 billion and $821.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Gross unrealized losses on investments in debt securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2019 U.S. Treasury bonds $ 12,507 $ (350 ) $ 3,193 $ (3 ) $ 15,700 $ (353 ) Municipal bonds 29,333 (207 ) 2,827 (10 ) 32,160 (217 ) Foreign government bonds 112,167 (934 ) 11,001 (27 ) 123,168 (961 ) Governmental agency bonds 24,493 (142 ) 14,923 (77 ) 39,416 (219 ) Governmental agency mortgage-backed securities 719,602 (2,785 ) 637,009 (4,522 ) 1,356,611 (7,307 ) U.S. corporate debt securities 42,607 (451 ) 10,216 (521 ) 52,823 (972 ) Foreign corporate debt securities 30,895 (108 ) 12,373 (105 ) 43,268 (213 ) $ 971,604 $ (4,977 ) $ 691,542 $ (5,265 ) $ 1,663,146 $ (10,242 ) 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 December 31, 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 December 31, 2019. Investments in debt securities at December 31, 2019, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 76,677 $ 61,690 $ 1,025 $ 4,433 $ 143,825 Estimated fair value $ 76,735 $ 62,050 $ 1,070 $ 4,086 $ 143,941 Municipal bonds Amortized cost $ 74,228 $ 153,668 $ 304,195 $ 511,161 $ 1,043,252 Estimated fair value $ 74,595 $ 156,412 $ 319,179 $ 540,653 $ 1,090,839 Foreign government bonds Amortized cost $ 25,682 $ 75,702 $ 63,304 $ 14,866 $ 179,554 Estimated fair value $ 25,634 $ 75,872 $ 63,155 $ 15,429 $ 180,090 Governmental agency bonds Amortized cost $ 9,181 $ 102,604 $ 138,955 $ 65,578 $ 316,318 Estimated fair value $ 9,209 $ 103,441 $ 141,940 $ 67,329 $ 321,919 U.S. corporate debt securities Amortized cost $ 38,783 $ 298,185 $ 164,297 $ 34,613 $ 535,878 Estimated fair value $ 38,864 $ 307,140 $ 170,495 $ 36,873 $ 553,372 Foreign corporate debt securities Amortized cost $ 25,981 $ 201,863 $ 78,656 $ 29,462 $ 335,962 Estimated fair value $ 26,005 $ 205,528 $ 83,018 $ 30,666 $ 345,217 Total debt securities, excluding mortgage-backed securities Amortized cost $ 250,532 $ 893,712 $ 750,432 $ 660,113 $ 2,554,789 Estimated fair value $ 251,042 $ 910,443 $ 778,857 $ 695,036 $ 2,635,378 Total mortgage-backed securities Amortized cost $ 3,241,966 Estimated fair value $ 3,278,258 Total debt securities Amortized cost $ 5,796,755 Estimated fair value $ 5,913,636 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: Cost Estimated (in thousands) December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 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 $66.7 million and net losses (realized and unrealized) of $38.6 million were recognized for the years ended December 31, 2019 and 2018, respectively, as a result of changes in the fair values of equity securities. Included in net gains during the year ended December 31, 2019 were net unrealized gains of $52.3 million and included in net losses during the year ended December 31, 2018 were net unrealized losses of $37.6 million, related to equity securities still held at December 31, 2019 and 2018, respectively. For the year ended December 31, 2017, sales of equity securities resulted in realized gains of $30.2 million and realized losses of $2.1 million. The composition of the investment portfolio at December 31, 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 $ 143,941 100.0 $ — — $ — — $ 143,941 100.0 Municipal bonds 1,045,628 95.9 43,843 4.0 1,368 0.1 1,090,839 100.0 Foreign government bonds 153,718 85.4 23,549 13.0 2,823 1.6 180,090 100.0 Governmental agency bonds 321,919 100.0 — — — — 321,919 100.0 Governmental agency mortgage-backed securities 3,278,258 100.0 — — — — 3,278,258 100.0 U.S. corporate debt securities 244,883 44.2 226,098 40.9 82,391 14.9 553,372 100.0 Foreign corporate debt securities 136,172 39.4 178,779 51.8 30,266 8.8 345,217 100.0 Total debt securities 5,324,519 90.0 472,269 8.0 116,848 2.0 5,913,636 100.0 Preferred stocks 46 0.3 16,865 93.2 1,183 6.5 18,094 100.0 Total $ 5,324,565 89.8 $ 489,134 8.2 $ 118,031 2.0 $ 5,931,730 100.0 Included in debt securities at December 31, 2019, were bank loans totaling $80.7 million, of which $72.1 million were non-investment grade; high yield corporate debt securities totaling $35.3 million, all of which were non-investment grade; and emerging market debt securities totaling $80.2 million, of which $8.1 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at December 31, 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 $ 15,700 100.0 $ — — $ — — $ 15,700 100.0 Municipal bonds 26,521 82.5 5,639 17.5 — — 32,160 100.0 Foreign government bonds 114,130 92.7 9,038 7.3 — — 123,168 100.0 Governmental agency bonds 39,416 100.0 — — — — 39,416 100.0 Governmental agency mortgage-backed securities 1,356,611 100.0 — — — — 1,356,611 100.0 U.S. corporate debt securities 9,883 18.7 22,264 42.2 20,676 39.1 52,823 100.0 Foreign corporate debt securities 26,994 62.4 8,925 20.6 7,349 17.0 43,268 100.0 Total $ 1,589,255 95.5 $ 45,866 2.8 $ 28,025 1.7 $ 1,663,146 100.0 Debt securities in an unrealized loss position at December 31, 2019, included bank loans totaling $18.1 million, of which $17.5 million were non-investment grade; high yield corporate debt securities totaling $9.3 million, all of which were non-investment grade; and emerging market debt securities totaling $19.9 million, of which $1.2 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 4. Property and Equipment: Property and equipment consists of the following: December 31, 2019 2018 (in thousands) Land $ 25,302 $ 25,472 Buildings 191,068 188,218 Leasehold improvements 66,471 68,941 Furniture and equipment 222,543 242,415 Capitalized software 718,847 667,667 1,224,231 1,192,713 Accumulated depreciation and amortization (782,217 ) (734,873 ) $ 442,014 $ 457,840 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 5. Leases: Lease assets and liabilities are summarized as follows: (in thousands) Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 291,385 Finance lease assets Other assets 4,560 Total lease assets $ 295,945 Liabilities Operating lease liabilities Operating lease liabilities $ 322,776 Finance lease liabilities Notes and contracts payable 4,814 Total lease liabilities $ 327,590 The components of lease expense are summarized as follows: (in thousands) Classification Year Ended Operating lease cost Other operating expenses $ 87,847 Finance lease cost: Amortization of lease assets Depreciation and amortization 1,919 Interest on lease liabilities Interest 191 Variable lease cost Other operating expenses 31,258 Short-term lease cost Other operating expenses 958 Sublease income Information and other (1,637 ) Net lease cost $ 120,536 Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of December 31, 2019, are summarized as follows: (in thousands) Operating Leases Finance Leases Total 2020 $ 86,241 $ 1,680 $ 87,921 2021 73,397 1,369 74,766 2022 61,068 1,272 62,340 2023 46,080 651 46,731 2024 33,271 154 33,425 Thereafter 61,924 — 61,924 Total lease payments 361,981 5,126 367,107 Interest (39,205 ) (312 ) (39,517 ) Present value of lease liabilities $ 322,776 $ 4,814 $ 327,590 Information related to lease terms and discount rates is summarized as follows: December 31, 2019 Weighted-average remaining lease terms (years): Operating leases 5.4 Finance leases 3.5 Weighted-average discount rates: Operating leases 4.16 % Finance leases 3.92 % Cash flow information related to lease liabilities is summarized as follows: (in thousands) Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,242 Operating cash flows from finance leases $ 191 Financing cash flows from finance leases $ 1,817 Operating lease assets obtained in exchange for new operating lease liabilities $ 54,809 Finance lease assets obtained in exchange for new finance lease liabilities $ 939 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 $89.4 million and $91.0 million for the years ended December 31, 2018 and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 6. Goodwill: A summary of the changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2019 and 2018, is as follows: Title Specialty Total (in thousands) Balance as of December 31, 2017 $ 1,066,240 $ 46,765 $ 1,113,005 Acquisitions 36,806 — 36,806 Foreign currency translation (5,017 ) — (5,017 ) Other adjustments (628 ) — (628 ) Balance as of December 31, 2018 1,097,401 46,765 1,144,166 Acquisitions 4,014 — 4,014 Foreign currency translation 2,728 — 2,728 Balance as of December 31, 2019 $ 1,104,143 $ 46,765 $ 1,150,908 |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 7. Other Intangible Assets: Other intangible assets are summarized as follows: December 31, 2019 2018 (in thousands) Finite-lived intangible assets: Customer relationships $ 99,905 $ 114,603 Noncompete agreements 13,150 14,402 Trademarks 10,520 10,753 Internal-use software licenses 21,982 29,394 Patents 2,840 2,840 148,397 171,992 Accumulated amortization (73,449 ) (79,535 ) 74,948 92,457 Indefinite-lived intangible assets: Licenses 16,885 16,915 $ 91,833 $ 109,372 Amortization expense for finite-lived intangible assets was $28.4 million, $30.4 million and $28.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated amortization expense for finite-lived intangible assets for the next five years is summarized as follows: Year (in thousands) 2020 $ 20,189 2021 $ 12,260 2022 $ 11,262 2023 $ 9,851 2024 $ 7,677 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Deposits | NOTE 8. Deposits: Deposit accounts are summarized as follows: December 31, 2019 2018 (in thousands, except Escrow accounts: Interest bearing $ 1,831,083 $ 2,496,805 Non-interest bearing 1,337,774 1,133,825 3,168,857 3,630,630 Business checking and other deposits (1) 168,574 155,553 $ 3,337,431 $ 3,786,183 Weighted-average interest rate: Interest bearing escrow accounts 0.17 % 0.12 % (1) Business checking and other deposits primarily reflect non-interest bearing accounts. |
Reserve for Known and Incurred
Reserve for Known and Incurred but Not Reported Claims | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | NOTE 9. Reserve for Known and Incurred But Not Reported Claims: Activity in the reserve for known and incurred but not reported claims is summarized as follows: December 31, 2019 2018 2017 (in thousands) Balance at beginning of year $ 1,042,679 $ 1,028,933 $ 1,025,863 Provision related to: Current year 436,362 444,969 446,500 Prior years 9,678 7,664 3,910 446,040 452,633 450,410 Payments, net of recoveries, related to: Current year 227,663 242,617 240,468 Prior years 187,658 208,139 231,579 415,321 450,756 472,047 Other (10,354 ) 11,869 24,707 Balance at end of year $ 1,063,044 $ 1,042,679 $ 1,028,933 Current year payments, net of recoveries, include $211.4 million, $228.3 million and $225.6 million for the years ended December 31, 2019, 2018 and 2017, respectively, that relate to the Company’s specialty insurance segment. Prior year payments, net of recoveries, include $41.7 million, $56.7 million and $46.1 million for the years ended December 31, 2019, 2018 and 2017, respectively, that relate to the Company’s specialty insurance segment. “Other” primarily includes foreign currency translation gains and losses and ceded reinsurance claims. Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the years ended December 31, 2019, 2018 and 2017. Payments on reinsured losses for the Company’s property and casualty insurance business totaled $21.1 million, $15.3 million, and $8.9 million, and recoveries totaled $10.3 million, $20.3 million, and $9.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 4.0% for the years ended December 31, 2019, 2018 and 2017. The current year 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 2018 rate of 4.0% reflected the ultimate loss rate for policy year 2018 and no change in the loss reserve estimates for prior policy years. The 2017 rate of 4.0% reflected the ultimate loss rate for policy year 2017 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) December 31, 2019 December 31, 2018 Known title claims $ 83,382 7.8 % $ 80,306 7.7 % IBNR title claims 903,994 85.1 % 877,134 84.1 % Total title claims 987,376 92.9 % 957,440 91.8 % Non-title claims 75,668 7.1 % 85,239 8.2 % Total loss reserves $ 1,063,044 100.0 % $ 1,042,679 100.0 % Specialty Insurance Segment The following reflects information as of December 31, 2019 about incurred and paid claims development, net of reinsurance, as well as cumulative claims frequency by claims event, and the total of incurred but not reported claims plus expected development on reported claims included with the net incurred claims amounts. The information below about incurred and paid claims development for the years ended December 31, 2010 to 2018, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 Accident Years ended December 31, Total of IBNR liabilities plus expected development on reported Cumulative number of reported Year 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019 claims claims (in thousands) 2010 $ 140,621 $ 139,966 $ 139,991 $ 139,639 $ 140,128 $ 140,641 $ 140,353 $ 140,308 $ 140,324 $ 140,345 $ — 606 2011 148,395 149,076 149,768 149,486 149,763 149,552 149,488 149,487 149,486 — 641 2012 157,287 158,981 159,918 160,579 160,517 160,911 161,650 161,634 — 692 2013 182,858 184,419 185,244 184,826 184,668 184,777 184,606 27 762 2014 190,985 190,738 191,120 191,025 190,944 191,218 129 789 2015 221,617 225,754 225,977 226,555 226,882 349 867 2016 245,859 249,358 251,506 253,258 975 972 2017 267,392 275,480 278,005 3,101 1,014 2018 264,088 268,931 5,312 1,063 2019 251,259 8,661 1,078 Total $ 2,105,624 * Amounts unaudited Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident Years ended December 31, Year 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019 (in thousands) 2010 $ 113,513 $ 136,770 $ 138,978 $ 139,486 $ 140,136 $ 140,886 $ 140,302 $ 140,304 $ 140,321 $ 140,325 2011 123,116 144,367 146,952 148,984 149,358 149,495 149,485 149,486 149,486 2012 130,623 153,753 157,364 159,181 159,740 160,268 161,304 161,617 2013 151,377 180,277 182,565 183,957 184,473 184,711 184,552 2014 156,536 185,686 188,117 189,525 190,398 190,772 2015 181,445 217,618 223,045 225,041 226,201 2016 205,857 243,111 248,211 250,867 2017 220,218 266,653 270,705 2018 222,966 255,557 2019 207,342 Total $ 2,037,424 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance $ 68,200 * Amounts unaudited. A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2019, is as follows: December 31, 2019 (in thousands) Liability for unpaid claims and claim adjustment expenses, net of reinsurance: Specialty insurance $ 68,200 Reinsurance recoverable on unpaid claims: Specialty insurance 5,991 Unallocated claims adjustment expenses: Specialty insurance 1,477 Insurance lines other than short-duration: Title insurance 987,376 Liability for unpaid claims and claims adjustment expenses $ 1,063,044 Supplementary information about average historical claims duration for the Company’s specialty insurance segment as of December 31, 2019, is as follows: Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Annual payout 82.6 % 14.2 % 1.3 % 0.8 % 0.3 % 0.1 % 0.0 % 0.1 % 0.0 % 0.0 % |
Notes and Contracts Payable
Notes and Contracts Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes and Contracts Payable | NOTE 10. Notes and Contracts Payable: December 31, 2019 2018 (in thousands, except percentages) 4.60% senior unsecured notes due November 15, 2024, effective interest rate of 4.60% $ 300,000 $ 300,000 4.30% senior unsecured notes due February 1, 2023, effective interest rate of 4.35% 250,000 250,000 Line of credit borrowings due April 30, 2024, current interest rate of 3.30% at December 31, 2019 160,000 — Line of credit borrowings due May 14, 2019, current interest rate of 4.15% at December 31, 2018 — 160,000 Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $38,402 and $39,283 at December 31, 2019 and 2018, respectively, fixed interest rate of 5.26% 15,724 19,247 Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.02% and 4.49% at December 31, 2019 and 2018, respectively 4,918 5,791 730,642 735,038 Unamortized discount – senior unsecured notes (358 ) (462 ) Debt issuance costs – senior unsecured notes (2,052 ) (2,557 ) $ 728,232 $ 732,019 The weighted-average interest rate for the Company’s notes and contracts payable was 4.22% and 4.42% at December 31, 2019 and 2018, respectively. In April 2019, the Company entered into a senior unsecured credit agreement with JPMorgan Chase Bank, N.A. in its capacity as administrative agent and the lenders party thereto. The credit agreement, which is comprised of a $700.0 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 December 31, 2019, outstanding borrowings under the facility totaled $160.0 million at an interest rate of 3.30%. 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 December 31, 2019, the Company was in compliance with the financial covenants under the credit agreement. The aggregate annual maturities for notes and contracts payable for the next five years and thereafter, are summarized as follows: Year Annual maturities (in thousands) 2020 $ 5,323 2021 5,205 2022 5,347 2023 254,615 2024 460,152 Thereafter — $ 730,642 |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Net Investment Income | NOTE 11. Net Investment Income: The components of net investment income are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Interest on: Cash, cash equivalents and deposits with banks $ 26,187 $ 21,910 $ 7,321 Debt securities 163,339 138,409 104,458 Other investments 96,812 64,328 22,221 Dividends on equity securities 12,092 12,718 12,925 Deferred compensation plan assets 17,274 (6,399 ) 14,211 Equity in earnings of affiliates, net 2,836 2,717 3,785 Other 612 106 607 Total investment income 319,152 233,789 165,528 Investment expenses (3,739 ) (3,500 ) (3,126 ) Net investment income $ 315,413 $ 230,289 $ 162,402 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. Income Taxes: For the years ended December 31, 2019, 2018 and 2017, domestic and foreign pretax income from continuing operations, before noncontrolling interests, were $857.2 million and $47.8 million, $571.9 million and $37.6 million, and $391.4 million and $53.9 million, respectively. Income taxes are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 167,016 $ 101,427 $ 116,400 State 3,514 12,285 9,382 Foreign 8,486 8,990 11,533 179,016 122,702 137,315 Deferred: Federal 11,275 4,381 (104,062 ) State 1,481 299 (10,724 ) Foreign 3,398 6,258 939 16,154 10,938 (113,847 ) $ 195,170 $ 133,640 $ 23,468 The Company’s actual income taxes differ from the amounts computed by applying the federal income tax rate of 21% Year ended December 31, 2019 2018 2017 (in thousands, except percentages) Taxes calculated at federal rate $ 190,054 21.0 % $ 128,003 21.0 % $ 155,866 35.0 % State taxes, net of federal benefit 18,028 2.0 9,941 1.6 (872 ) (0.2 ) Change in liability for tax positions (13,563 ) (1.5 ) 875 0.1 (3,482 ) (0.8 ) Foreign income taxed at different rates 782 0.1 7,287 1.2 (6,163 ) (1.3 ) Tax reform impact — — (6,804 ) (1.1 ) (129,139 ) (29.0 ) Unremitted foreign earnings 2,588 0.3 (146 ) — 14,997 3.3 Other items, net (2,719 ) (0.3 ) (5,516 ) (0.9 ) (7,739 ) (1.7 ) $ 195,170 21.6 % $ 133,640 21.9 % $ 23,468 5.3 % The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 21.6%, 21.9%, and 5.3% for the years ended December 31, 2019, 2018, and 2017, respectively. The effective tax rates differ from the federal statutory rate as a result of state and foreign income taxes for which the Company is liable, as well as permanent differences between amounts reported for financial statement purposes and taxable income. The effective tax rate for the year ended December 31, 2019 reflects the resolution of state tax matters from prior years and the effective tax rates for the years ended December 31, 2018 and 2017 reflected the impact of the 2017 comprehensive tax reform legislation known as the Tax Cuts and Jobs Act. The Company’s effective tax rate for the year ended December 31, 2017 also reflected state tax benefits relating to the termination of the Company’s defined benefit pension plan and the release of reserves relating to tax positions taken on prior year tax returns. The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: December 31, 2019 2018 (in thousands) Deferred tax assets: Deferred revenue $ 7,982 $ 7,362 Employee benefits 89,986 87,960 Bad debt reserves 5,990 7,421 Loss reserves 934 1,793 Pension 26,383 18,817 Net operating loss carryforward 14,067 13,290 Securities — 11,356 Foreign tax credit 6,724 8,415 Operating lease liabilities 72,119 — Other 2,116 5,464 226,301 161,878 Valuation allowance (9,846 ) (10,621 ) 216,455 151,257 Deferred tax liabilities: Depreciable and amortizable assets 241,799 230,758 Claims and related salvage 104,004 108,497 Investments in affiliates 612 1,957 Securities 39,035 — Operating lease assets 65,121 — Unremitted foreign earnings 13,709 10,506 464,280 351,718 Net deferred tax liability $ 247,825 $ 200,461 The exercise of stock options and vesting of RSUs represent a tax benefit that has been reflected as a reduction of income taxes payable and a reduction of income tax expense for the years ended December 31, 2019, 2018 and 2017. The benefits recorded were $3.2 million, $5.2 million and $3.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. In connection with the Company’s June 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 December 31, 2019 and 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. These amounts are included in the Company’s 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. At December 31, 2019, the Company had available a $6.5 million foreign tax credit carryover, net of a valuation allowance. The Company expects to utilize this credit within the carryover period. At December 31, 2019, the Company had available net operating loss carryforwards for income tax purposes totaling $80.2 million, consisting of federal, state and foreign losses of $0.2 million, $35.9 million and $44.1 million, respectively. Of the aggregate net operating losses, $31.7 million has an indefinite expiration and the remaining $48.5 million expires at various times beginning in 2020. 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. At December 31, 2019 and 2018, the Company carried a valuation allowance of $9.8 million and $10.6 million, respectively, against its deferred tax assets. Of this amount, $8.8 million and $8.9 million, respectively, related to net operating losses; the remaining $1.0 million and $1.7 million, respectively, related to other deferred tax assets. The decrease in the overall valuation allowance during 2019 was primarily due to the release of valuation allowance previously provided against certain foreign net operating losses and other deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months. As of December 31, 2019, 2018 and 2017, the liability for income taxes associated with uncertain tax positions was $1.5 million, $13.3 million and $12.8 million, respectively. The net decrease in the liability during 2019 was primarily the result of the resolution of state tax matters from prior years and the net increase in the liability during 2018 was attributable to new uncertain tax positions. The net decrease in the liability during 2017 was primarily attributable to activity related to examinations conducted by various taxing authorities. The liabilities could be reduced by $0.4 million as of December 31, 2019 and $ 3.7 million A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows: December 31, 2019 2018 2017 (in thousands) Unrecognized tax benefits—beginning balance $ 13,300 $ 12,800 $ 18,100 Gross decreases—prior period tax positions (8,600 ) — (1,000 ) Gross increases—current period tax positions 800 500 — Settlements with taxing authorities (4,000 ) — (4,300 ) Unrecognized tax benefits—ending balance $ 1,500 $ 13,300 $ 12,800 The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. As of December 31, 2019, 2018 and 2017, the Company had accrued interest and penalties, net of tax benefits, of $26 thousand, $ 5.8 million 5.3 million The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. As of December 31, 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 2014. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. The Company records a liability for potential tax assessments based on its estimate of the potential exposure. New tax laws and new interpretations of laws and rulings by tax authorities may affect the liability for potential tax assessments. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. To the extent that the Company’s estimates differ from actual payments or assessments, income tax expense is adjusted. The Company’s income tax returns in several jurisdictions are being examined by various taxing authorities. The Company believes that adequate amounts of tax and related interest, if any, from any adjustments that may result from these examinations have been provided for. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13. Earnings Per Share: The computation of basic and diluted earnings per share is as follows: Year ended December 31, 2019 2018 2017 (in thousands, except per share data) Numerator Net income attributable to the Company $ 707,410 $ 474,496 $ 423,049 Denominator Basic weighted-average common shares 113,080 112,613 111,668 Effect of dilutive employee stock options and RSUs 575 666 767 Diluted weighted-average common shares 113,655 113,279 112,435 Net income per share attributable to the Company’s stockholders Basic $ 6.26 $ 4.21 $ 3.79 Diluted $ 6.22 $ 4.19 $ 3.76 For the years ended December 31, 2019, 2018 and 2017, RSUs excluded from diluted weighted-average common shares outstanding due to their antidilutive effect were not material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 14. Employee Benefit Plans: The First American Financial Corporation 401(k) Savings Plan (the “Savings Plan”) allows for employee-elective contributions up to the maximum amount as determined by the Internal Revenue Code. The Company makes discretionary contributions to the Savings Plan based on profitability, as well as the contributions of participants. The Savings Plan held 2.0 million shares and 2.2 million shares of the Company’s common stock, representing 1.8% and 1.9% of the Company’s total common shares outstanding at December 31, 2019 and 2018, respectively. Effective July 1, 2015, participants in the Savings Plan can no longer make additional investments in common stock of the Company. The Company maintains a deferred compensation plan for certain employees that allows participants to defer up to 100% of their salary, commissions and certain bonuses. Participants can allocate their deferrals among a variety of investment crediting options (known as “deemed investments”). The term deemed investments means that the participant has no ownership interest in the funds they select; the funds are only used to measure the gains or losses that will be attributed to each participant’s deferral account over time. Participants can elect to have their deferral balance paid out while they are still employed or after their employment ends. The deferred compensation plan is exempt from most provisions of the Employee Retirement Income Security Act (“ERISA”) because it is only available to a select group of management and highly compensated employees and is not a qualified employee benefit plan. To preserve the tax-deferred savings advantages of a nonqualified deferred compensation plan, federal law requires that it be unfunded or informally funded. Participant deferrals, and any earnings on those deferrals, are general unsecured obligations of the Company. The Company informally funds the deferred compensation plan through a tax-advantaged investment known as variable universal life insurance. Deferred compensation plan assets are held as an asset of the Company within a special trust, known as a “Rabbi Trust.” At December 31, 2019 and 2018, the value of the assets held in the Rabbi Trust of $103.5 million and $86.5 million, respectively, and the unfunded liabilities of $115.1 million and $94.3 million, respectively, were included in the consolidated balance sheets in other assets and pension costs and other retirement plans, respectively. The Company also has nonqualified, unfunded supplemental benefit plans covering certain management personnel. The Executive and Management Supplemental Benefit Plans, subject to certain limitations, provide participants with maximum benefits of 30% and 15%, respectively, of average annual compensation over a fixed five year period. Effective January 1, 2011, the plans were closed to new participants. Certain of the Company’s subsidiaries have separate savings and employee benefit plans. Expenses related to these plans and the Company’s deferred compensation plan are included in the table below under “other plans, net”. The principal components of employee benefit costs are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Expense: Savings plan $ 60,416 $ 46,208 $ 34,520 Funded defined benefit pension plans — — 162,368 Unfunded supplemental benefit plans 8,989 9,248 12,705 Other plans, net 23,917 2,794 17,595 $ 93,322 $ 58,250 $ 227,188 During 2017, the Company recognized settlement costs related to the termination of its funded defined benefit pension plans. The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2019 2018 (in thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 236,773 $ 258,528 Service costs 282 519 Interest costs 9,116 8,079 Actuarial losses (gains) 27,034 (16,517 ) Benefits paid (14,412 ) (13,836 ) Projected benefit obligation at end of year 258,793 236,773 Change in plan assets: Contributions 14,412 13,836 Benefits paid (14,412 ) (13,836 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 258,793 $ 236,773 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 258,793 $ 236,773 Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial loss $ 103,624 $ 80,251 Unrecognized prior service credit (4,180 ) (8,250 ) $ 99,444 $ 72,001 Accumulated benefit obligation at end of year $ 258,793 $ 236,773 Net periodic benefit costs related to the Company’s unfunded supplemental benefit and funded defined benefit pension plans included the following components: Year ended December 31, 2019 2018 2017 (in thousands) Expense: Service costs $ 282 $ 519 $ 734 Interest costs 9,116 8,079 13,261 Expected return on plan assets — — (4,740 ) Amortization of net actuarial loss 3,661 4,828 17,742 Amortization of prior service credit (4,070 ) (4,178 ) (4,312 ) Settlement costs — — 152,388 $ 8,989 $ 9,248 $ 175,073 Net actuarial loss and prior service credit for the unfunded supplemental benefit plans expected to be amortized from accumulated other comprehensive loss into net periodic cost over the next fiscal year include an expense of $5.3 million and a credit of $3.1 million, respectively. The weighted-average discount rate assumptions used to determine net periodic benefit costs for the Company’s unfunded supplemental benefits plans for the years ended December 31, 2019, 2018 and 2017, were as follows: Year ended December 31, 2019 2018 2017 Discount rate for projected benefit obligation 4.32 % 3.61 % 4.03 % Discount rate for service cost 4.55 % 3.78 % 4.32 % Discount rate for interest cost 4.00 % 3.23 % 3.43 % The weighted-average discount rate assumption used to determine the projected benefit obligation for the Company’s unfunded supplemental benefits plans at December 31, 2019 and 2018, was as follows: December 31, 2019 2018 Discount rate 3.27 % 4.32 % The discount rate assumptions used for the Company’s benefit plans reflect the yield available on high-quality, fixed-income debt securities that match the expected timing of the benefit obligation payments. The Company expects to make cash contributions of $15.5 million to its unfunded supplemental benefit plans during 2020. Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in thousands) 2020 $ 15,459 2021 $ 16,225 2022 $ 16,427 2023 $ 16,650 2024 $ 16,717 Five years thereafter $ 80,264 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 15. 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 December 31, 2019 and 2018: (in thousands) Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Debt securities: U.S. Treasury bonds $ 143,941 $ — $ 143,941 $ — Municipal bonds 1,090,839 — 1,090,839 — Foreign government bonds 180,090 — 180,090 — Governmental agency bonds 321,919 — 321,919 — Governmental agency mortgage-backed securities 3,278,258 — 3,278,258 — U.S. corporate debt securities 553,372 — 553,372 — Foreign corporate debt securities 345,217 — 345,217 — 5,913,636 — 5,913,636 — Equity securities: Preferred stocks 18,094 18,094 — — Common stocks 374,224 374,224 — — 392,318 392,318 — — Total assets $ 6,305,954 $ 392,318 $ 5,913,636 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2018 Assets: 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, 2 and 3 during the years ended December 31, 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 for debt of similar remaining maturities. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2019 and 2018: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Cash and cash equivalents $ 1,485,959 $ 1,485,959 $ 1,485,959 $ — $ — Deposits with banks $ 44,422 $ 44,339 $ 4,074 $ 40,265 $ — Notes receivable, net $ 18,970 $ 19,422 $ — $ — $ 19,422 Secured financings receivable $ 287,459 $ 287,459 $ — $ 287,459 $ — Liabilities: Secured financings payable $ 278,412 $ 278,412 $ — $ 278,412 $ — Notes and contracts payable $ 728,232 $ 761,224 $ — $ 756,306 $ 4,918 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 | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | NOTE 16. Share-Based Compensation Plans: The First American Financial Corporation 2010 Incentive Compensation Plan (the “Incentive Compensation Plan”), effective May 28, 2010, permits the granting of stock options, stock appreciation rights, restricted stock, RSUs, performance units, performance shares and other stock-based awards. Eligible participants, which include the Company’s directors and officers, as well as other employees, may elect to defer the distribution of their RSUs to a future date beyond the scheduled vesting date. At December 31, 2019, 1.8 million shares of common stock remain available to be issued from either authorized and unissued shares or previously issued shares acquired by the Company, subject to certain annual limits based on the type of award granted. The Incentive Compensation Plan terminates 10 years from its effective date unless previously canceled by the Company’s board of directors. The First American Financial Corporation 2010 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each quarterly offering period. There were 391,000, 363,000 and 390,000 shares issued in connection with this plan for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, there were 1.6 million shares reserved for future issuances. The following table summarizes the costs associated with the Company’s share-based compensation plans: Year ended December 31, 2019 2018 2017 (in thousands) Expense: RSUs $ 38,445 $ 37,597 $ 34,059 Stock options — — 263 Employee stock purchase plan 4,029 3,548 3,077 $ 42,474 $ 41,145 $ 37,399 The following table summarizes RSU activity for the year ended December 31, 2019: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2018 1,248 $ 44.53 Granted during 2019 800 51.46 Vested during 2019 (870 ) 44.54 Forfeited during 2019 (26 ) 48.02 Unvested at December 31, 2019 1,152 $ 49.25 As of December 31, 2019, there was $26.9 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 2.2 years. The fair value of RSUs is generally based on the market value of the Company’s shares on the date of grant. The weighted-average grant-date fair value of RSUs was $51.46, $54.80 and $39.56 for the years ended December 31, 2019, 2018 and 2017, respectively. The total fair value of shares distributed for the years ended December 31, 2019, 2018 and 2017 was $50.5 million, $54.5 million and $34.6 million, respectively. At December 31, 2019, 0.9 million shares were vested but not distributed. During the year ended December 31, 2019, all remaining stock options outstanding were exercised at a weighted-average exercise price of $27.66 with cash proceeds of $0.8 million. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 17. Stockholders’ Equity: The Company maintains a stock repurchase plan with authorization up to $250.0 million, of which $161.6 million remained as of December 31, 2019. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the year ended December 31, 2019, the Company repurchased and retired 47 thousand shares of its common stock for a total purchase price of $2.1 million and as of December 31, 2019, had repurchased and retired 3.6 million shares of its common stock under the current authorization for a total purchase price of $88.4 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | NOTE 18. Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2019, 2018 and 2017: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance Balance at December 31, 2016 $ (26,767 ) $ (63,576 ) $ (140,057 ) $ (230,400 ) $ 7 $ (230,393 ) Change in unrealized gains (losses) on debt and equity securities 86,821 — — 86,821 13 86,834 Change in foreign currency translation adjustment — 24,744 — 24,744 — 24,744 Net actuarial loss — — (20,407 ) (20,407 ) — (20,407 ) Amortization of net actuarial loss — — 17,742 17,742 — 17,742 Amortization of prior service credit — — (4,312 ) (4,312 ) — (4,312 ) Settlement costs — — 152,388 152,388 — 152,388 Tax effect (23,271 ) — (70,814 ) (94,085 ) — (94,085 ) Balance at December 31, 2017 36,783 (38,832 ) (65,460 ) (67,509 ) 20 (67,489 ) Cumulative-effect adjustment, net of taxes (40,550 ) — — (40,550 ) — (40,550 ) Change in unrealized gains (losses) on debt securities (49,643 ) — — (49,643 ) (18 ) (49,661 ) Change in foreign currency translation adjustment — (28,145 ) — (28,145 ) — (28,145 ) Net actuarial gain — — 16,517 16,517 — 16,517 Amortization of net actuarial loss — — 4,828 4,828 — 4,828 Amortization of prior service credit — — (4,178 ) (4,178 ) — (4,178 ) Tax effect 11,243 1,349 (4,487 ) 8,105 — 8,105 Balance at December 31, 2018 (42,167 ) (65,628 ) (52,780 ) (160,575 ) 2 (160,573 ) Change in unrealized gains (losses) on debt securities 164,221 — — 164,221 (1 ) 164,220 Change in foreign currency translation adjustment — 14,575 — 14,575 — 14,575 Net actuarial loss — — (27,034 ) (27,034 ) — (27,034 ) Amortization of net actuarial loss — — 3,661 3,661 — 3,661 Amortization of prior service credit — — (4,070 ) (4,070 ) — (4,070 ) Tax effect (38,937 ) (615 ) 7,282 (32,270 ) — (32,270 ) Balance at December 31, 2019 $ 83,117 $ (51,668 ) $ (72,941 ) $ (41,492 ) $ 1 $ (41,491 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2019, 2018 and 2017: Unrealized Foreign Pension Total (in thousands) Year ended December 31, 2019 Pretax change before reclassifications $ 167,992 $ 14,575 $ (27,034 ) $ 155,533 Reclassifications out of AOCI (3,772 ) — (409 ) (4,181 ) Tax effect (38,937 ) (615 ) 7,282 (32,270 ) Total other comprehensive income (loss), net of tax $ 125,283 $ 13,960 $ (20,161 ) $ 119,082 Year ended December 31, 2018 Pretax change before reclassifications $ (63,910 ) $ (28,145 ) $ 16,517 $ (75,538 ) Reclassifications out of AOCI 14,249 — 650 14,899 Tax effect 11,243 1,349 (4,487 ) 8,105 Total other comprehensive income (loss), net of tax $ (38,418 ) $ (26,796 ) $ 12,680 $ (52,534 ) Year ended December 31, 2017 Pretax change before reclassifications $ 101,553 $ 24,744 $ (20,407 ) $ 105,890 Reclassifications out of AOCI (14,719 ) — 165,818 151,099 Tax effect (23,271 ) — (70,814 ) (94,085 ) Total other comprehensive income (loss), net of tax $ 63,563 $ 24,744 $ 74,597 $ 162,904 The following table presents the effect of the reclassifications out of AOCI on the respective line items in the consolidated statements of income: Amounts reclassified from AOCI Year ended December 31, (in thousands) 2019 2018 2017 Affected line items Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities (1) $ $ (14,249 ) $ 14,719 Net realized investment gains (losses) Pretax total $ 3,772 $ (14,249 ) $ 14,719 Tax effect $ (894 ) $ 3,226 $ (5,259 ) Pension benefit adjustment (2): Amortization of net actuarial loss $ (3,661 ) $ (4,828 ) $ (17,742 ) Other operating expenses Amortization of prior service credit 4,070 4,178 4,312 Other operating expenses Settlement costs — — (152,388 ) Other operating expenses Pretax total $ 409 $ (650 ) $ (165,818 ) Tax effect $ (109 ) $ 170 $ 67,322 (1) Net realized gains (losses) for the years ended December 31, 2019 and 2018 related to sales of debt securities and net realized gains for the year ended December 31, 2017 related to sales of debt and equity securities. (2) These components of AOCI are components of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | NOTE 19. 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 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: • Anatao Properties LLC vs. First American Title Insurance Company, filed on November 6, 2019 and pending in the United States District Court for the Middle District of Florida, • 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 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. These include numerous regulatory inquiries and/or investigations as a result of the information security incident that occurred during the second quarter of 2019, including inquiries and/or investigations of the Nebraska Department of Insurance and other state insurance regulators, the Federal Trade Commission and the Securities and Exchange Commission. These also include an inquiry by the New York Attorney General and the Massachusetts Attorney General into competitive practices in the title insurance industry. With respect to matters where the Company has determined that a loss is both probable and reasonably estimable, the Company records 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 $14.8 million, which is based on the exchange rate as of, and includes interest charges through, December 31, 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 consolidated financial statements as a whole. |
Segment Financial Information
Segment Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Financial Information | NOTE 20. Segment Financial 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 data and records; 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 47 states. The majority of policy liability is in the western United States, including approximately 59% 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 36 states and the District of Columbia. The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Eliminations consist of inter-segment revenues and related expenses included in the results of the operating segments. Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2019, 2018 and 2017, is as follows: Revenues Depreciation Equity in affiliates, net Income (loss) Assets Investments method affiliates Capital (in thousands) 2019 Title Insurance and Services $ 5,675,952 $ 121,643 $ 2,836 $ 912,213 $ 10,349,145 $ 51,928 $ 100,826 Specialty Insurance 505,890 7,225 — 66,576 639,763 — 9,676 Corporate 21,896 153 — (73,771 ) 575,051 — — Eliminations (1,677 ) — — — (44,792 ) — — $ 6,202,061 $ 129,021 $ 2,836 $ 905,018 $ 11,519,167 $ 51,928 $ 110,502 2018 Title Insurance and Services $ 5,282,781 $ 119,053 $ 2,717 $ 655,003 $ 9,613,658 $ 54,674 $ 112,726 Specialty Insurance 469,342 6,721 — 26,999 600,268 — 12,791 Corporate (3,115 ) 153 — (72,464 ) 431,222 — — Eliminations (1,164 ) — — — (14,513 ) — — $ 5,747,844 $ 125,927 $ 2,717 $ 609,538 $ 10,630,635 $ 54,674 $ 125,517 2017 Title Insurance and Services $ 5,293,156 $ 121,540 $ 3,785 $ 642,364 $ 8,669,936 $ 56,583 $ 128,751 Specialty Insurance 465,020 6,351 — 36,908 592,405 — 7,913 Corporate 15,326 162 — (233,941 ) 429,128 — — Eliminations (1,139 ) — — — (118,247 ) — — $ 5,772,363 $ 128,053 $ 3,785 $ 445,331 $ 9,573,222 $ 56,583 $ 136,664 Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues 2019 (in thousands) Title Insurance and Services $ 2,188,056 $ 2,373,140 $ 776,124 $ 282,910 $ 55,722 $ 5,675,952 Specialty Insurance 471,217 — 12,742 11,249 10,682 505,890 $ 2,659,273 $ 2,373,140 $ 788,866 $ 294,159 $ 66,404 $ 6,181,842 2018 Title Insurance and Services $ 2,052,951 $ 2,284,906 $ 770,725 $ 223,318 $ (49,119 ) $ 5,282,781 Specialty Insurance 454,718 — 11,802 10,190 (7,368 ) 469,342 $ 2,507,669 $ 2,284,906 $ 782,527 $ 233,508 $ (56,487 ) $ 5,752,123 2017 Title Insurance and Services $ 2,022,384 $ 2,360,659 $ 766,018 $ 137,439 $ 6,656 $ 5,293,156 Specialty Insurance 439,470 — 11,259 9,713 4,578 465,020 $ 2,461,854 $ 2,360,659 $ 777,277 $ 147,152 $ 11,234 $ 5,758,176 Revenues from external customers allocated between domestic and foreign operations, by segment, for the years ended December 31, 2019, 2018 and 2017, are as follows: Year Ended December 31, 2019 2018 2017 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 5,374,624 $ 300,685 $ 4,984,617 $ 298,059 $ 5,011,990 $ 281,090 Specialty Insurance 505,890 — 469,342 — 465,020 — $ 5,880,514 $ 300,685 $ 5,453,959 $ 298,059 $ 5,477,010 $ 281,090 Long-lived assets allocated between domestic and foreign operations, by segment, as of December 31, 2019, 2018 and 2017, are as follows: December 31, 2019 2018 2017 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 982,397 $ 65,625 $ 994,023 $ 61,615 $ 975,443 $ 59,960 Specialty Insurance 7,479 — 65,644 — 57,762 — $ 989,876 $ 65,625 $ 1,059,667 $ 61,615 $ 1,033,205 $ 59,960 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21. Subsequent Events: On February 13, 2020, the Company announced the signing of a definitive agreement to acquire a company that provides document, eClose and fulfillment technology for the mortgage industry for a purchase price of $350 million. The transaction is expected to close by March 31, 2020, subject to certain customary closing conditions, including certain regulatory reviews. The Company expects to fund the acquisition with operating cash. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (Unaudited) Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2019 Revenues $ 1,303,581 $ 1,498,620 $ 1,671,196 $ 1,728,664 Income before income taxes $ 141,670 $ 229,497 $ 245,338 $ 288,513 Net income $ 109,804 $ 187,271 $ 188,167 $ 224,606 Net income attributable to noncontrolling interests $ 229 $ 616 $ 985 $ 608 Net income attributable to the Company $ 109,575 $ 186,655 $ 187,182 $ 223,998 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.97 $ 1.65 $ 1.65 $ 1.98 Diluted $ 0.97 $ 1.64 $ 1.65 $ 1.97 Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2018 Revenues $ 1,297,388 $ 1,491,157 $ 1,542,186 $ 1,417,113 Income before income taxes $ 93,065 $ 201,968 $ 195,587 $ 118,918 Net income $ 76,172 $ 155,091 $ 151,461 $ 93,174 Net (loss) income attributable to noncontrolling interests $ (55 ) $ (49 ) $ (19 ) $ 1,525 Net income attributable to the Company $ 76,227 $ 155,140 $ 151,480 $ 91,649 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.68 $ 1.38 $ 1.34 $ 0.81 Diluted $ 0.67 $ 1.37 $ 1.34 $ 0.81 (1) Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Summary Of Investments-Other Th
Summary Of Investments-Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Summary of Investments-Other Than Investments in Related Parties | SCHEDULE I 1 OF 1 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES (in thousands) December 31, 2019 Column A Column B Column C Column D Type of investment Cost Market value Amount at which Deposits with banks: Consolidated $ 44,422 $ 44,339 $ 44,422 Debt securities: U.S. Treasury bonds Consolidated $ 143,825 $ 143,941 $ 143,941 Municipal bonds Consolidated $ 1,043,252 $ 1,090,839 $ 1,090,839 Foreign government bonds Consolidated $ 179,554 $ 180,090 $ 180,090 Governmental agency bonds Consolidated $ 316,318 $ 321,919 $ 321,919 Governmental agency mortgage-backed securities Consolidated $ 3,241,966 $ 3,278,258 $ 3,278,258 U.S. corporate debt securities Consolidated $ 535,878 $ 553,372 $ 553,372 Foreign corporate debt securities Consolidated $ 335,962 $ 345,217 $ 345,217 Total debt securities: Consolidated $ 5,796,755 $ 5,913,636 $ 5,913,636 Equity securities: Consolidated $ 349,959 $ 392,318 $ 392,318 Notes receivable, net: Consolidated $ 18,970 $ 19,422 $ 18,970 Other investments: Consolidated $ 220,097 $ 220,097 (1) $ 220,097 Total investments: Consolidated $ 6,430,203 $ 6,589,812 $ 6,589,443 (1) As other investments are not publicly traded, estimates of fair value could not be made without incurring excessive costs. |
Condensed Financial Statements
Condensed Financial Statements (Parent Company) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II 1 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED BALANCE SHEETS (in thousands, except par values) December 31, 2019 2018 Assets Cash and cash equivalents $ 341,691 $ 327,306 Due from subsidiaries, net 47,798 10,029 Income taxes receivable 10,967 11,007 Investment in subsidiaries 5,215,056 4,592,281 Other investments 77,000 — Deferred income taxes 18,283 16,636 Other assets 109,228 90,164 $ 5,820,023 $ 5,047,423 Liabilities and Equity Accounts payable and other accrued liabilities $ 19,455 $ 34,578 Pension costs and other retirement plans 376,393 334,390 Income taxes payable 25,475 8,988 Deferred income taxes 266,108 217,097 Notes and contracts payable 707,590 706,982 1,395,021 1,302,035 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.00001 par value; Authorized—500 shares; — — Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—112,476 shares and 111,496 shares 1 1 Additional paid-in capital 2,300,926 2,258,290 Retained earnings 2,161,049 1,644,165 Accumulated other comprehensive loss (41,492 ) (160,575 ) Total stockholders’ equity 4,420,484 3,741,881 Noncontrolling interests 4,518 3,507 Total equity 4,425,002 3,745,388 $ 5,820,023 $ 5,047,423 See Notes to Condensed Financial Statements SCHEDULE II 2 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF INCOME (in thousands) Year Ended December 31, 2019 2018 2017 Revenues: Dividends from subsidiaries $ 384,799 $ 394,742 $ 354,350 Other income (losses) 21,660 (2,986 ) 15,011 406,459 391,756 369,361 Expenses: Other expenses 66,984 40,415 54,245 Income before income taxes and equity in undistributed earnings of subsidiaries 339,475 351,341 315,116 Income taxes 73,209 77,031 16,606 Equity in undistributed earnings of subsidiaries 443,582 201,588 123,353 Net income 709,848 475,898 421,863 Less: Net income (loss) attributable to noncontrolling interests 2,438 1,402 (1,186 ) Net income attributable to the Company $ 707,410 $ 474,496 $ 423,049 See Notes to Condensed Financial Statements SCHEDULE II 3 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Year Ended December 31, 2019 2018 2017 Net income $ 709,848 $ 475,898 $ 421,863 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities 125,283 (38,418 ) 63,563 Foreign currency translation adjustment 13,960 (26,796 ) 24,744 Pension benefit adjustment (20,161 ) 12,680 74,597 Total other comprehensive income (loss), net of tax 119,082 (52,534 ) 162,904 Comprehensive income 828,930 423,364 584,767 Less: Comprehensive income (loss) attributable to noncontrolling interests 2,437 1,384 (1,173 ) Comprehensive income attributable to the Company $ 826,493 $ 421,980 $ 585,940 See Notes to Condensed Financial Statements SCHEDULE II 4 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Cash provided by operating activities $ 356,116 $ 381,516 $ 232,347 Cash flows from investing activities: Net cash effect of acquisitions (14,845 ) (67,061 ) (21,750 ) Net payments to subsidiaries (58,193 ) (19,676 ) (41,726 ) Investments in unconsolidated entities (77,000 ) — — Net change in other investments — — 82 Cash used for investing activities (150,038 ) (86,737 ) (63,394 ) Cash flows from financing activities: Borrowings under unsecured credit agreement 160,000 — — Repayments of notes and contracts payable (160,000 ) — — Net (payments) proceeds in connection with share-based (1,187 ) (4,105 ) 2,732 Purchase of Company shares (2,066 ) (18,801 ) — Payments of cash dividends (188,440 ) (178,487 ) (159,284 ) Cash used for financing activities (191,693 ) (201,393 ) (156,552 ) Net increase in cash and cash equivalents 14,385 93,386 12,401 Cash and cash equivalents—Beginning of period 327,306 233,920 221,519 Cash and cash equivalents—End of period $ 341,691 $ 327,306 $ 233,920 See Notes to Condensed Financial Statements SCHEDULE II 5 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) NOTES TO CONDENSED FINANCIAL STATEMENTS NOTE 1. Description of the Company: First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company financial statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. NOTE 2. Dividends Received: The holding company received cash dividends from subsidiaries of $384.8 million, $394.4 million and $87.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUPPLEMENTARY INSURANCE INFORMATION (in thousands) BALANCE SHEET CAPTIONS Column A Column B Column C Column D Segment Deferred Claims Deferred 2019 Title Insurance and Services $ 187 $ 987,376 $ 7,058 Specialty Insurance 32,927 75,668 245,273 Total $ 33,114 $ 1,063,044 $ 252,331 2018 Title Insurance and Services $ 343 $ 957,440 $ 9,339 Specialty Insurance 32,390 85,239 233,941 Total $ 32,733 $ 1,042,679 $ 243,280 SCHEDULE III 2 OF 2 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUPPLEMENTARY INSURANCE INFORMATION (in thousands) INCOME STATEMENT CAPTIONS Column A Column F Column G Column H Column I Column J Column K Segment Premiums Net Loss Amortization Other Premiums 2019 Title Insurance and Services $ 4,561,196 $ 338,632 $ 182,450 $ — $ 805,480 $ — Specialty Insurance 471,217 21,931 263,590 (537 ) 80,705 482,056 Corporate — 21,896 — — 38,148 — Eliminations — (642 ) — — (1,035 ) — Total $ 5,032,413 $ 381,817 $ 446,040 $ (537 ) $ 923,298 $ 482,056 2018 Title Insurance and Services $ 4,337,857 $ 174,199 $ 173,520 $ (125 ) $ 793,364 $ — Specialty Insurance 454,718 2,822 279,113 (1,138 ) 74,025 459,098 Corporate — (3,115 ) — — 33,879 — Eliminations — (104 ) — — (1,060 ) — Total $ 4,792,575 $ 173,802 $ 452,633 $ (1,263 ) $ 900,208 $ 459,098 2017 Title Insurance and Services $ 4,383,043 $ 144,095 $ 175,322 $ 122 $ 788,074 $ — Specialty Insurance 439,470 14,291 275,088 (1,030 ) 67,813 450,098 Corporate — 15,326 — — 201,062 — Eliminations — (76 ) — — (1,063 ) — Total $ 4,822,513 $ 173,636 $ 450,410 $ (908 ) $ 1,055,886 $ 450,098 (1) Includes net investment income and net realized investment gains (losses). |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |
Reinsurance | SCHEDULE IV 1 OF 1 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES REINSURANCE (in thousands, except percentages) Segment Premiums Ceded to Assumed Premiums Percentage of Title Insurance and Services 2019 $ 4,573,715 $ 13,103 $ 584 $ 4,561,196 0.0 % 2018 $ 4,353,130 $ 16,398 $ 1,125 $ 4,337,857 0.0 % 2017 $ 4,396,882 $ 15,014 $ 1,175 $ 4,383,043 0.0 % Specialty Insurance 2019 $ 482,820 $ 11,603 $ — $ 471,217 0.0 % 2018 $ 466,245 $ 11,527 $ — $ 454,718 0.0 % 2017 $ 448,296 $ 8,826 $ — $ 439,470 0.0 % |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE V 1 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in thousands) Year Ended December 31, 2019 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 22,841 $ 4,125 $ — $ 4,982 (A) $ 21,984 Reserve for known and incurred but not reported claims: Consolidated $ 1,042,679 $ 446,040 $ (10,354 ) $ 415,321 (B) $ 1,063,044 Reserve deducted from notes receivable: Consolidated $ 343 $ — $ — $ — $ 343 Reserve deducted from deferred income taxes: Consolidated $ 10,621 $ — $ — $ 775 $ 9,846 Note A—Amount represents accounts written off, net of recoveries. Note B—Amount represents claim payments, net of recoveries. SCHEDULE V 2 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in thousands) Year Ended December 31, 2018 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 23,066 $ 5,039 $ — $ 5,264 (A) $ 22,841 Reserve for known and incurred but not reported claims: Consolidated $ 1,028,933 $ 452,633 $ 11,869 $ 450,756 (B) $ 1,042,679 Reserve deducted from notes receivable: Consolidated $ 510 $ 167 $ — $ 334 $ 343 Reserve deducted from deferred income taxes: Consolidated $ 10,333 $ 288 $ — $ — $ 10,621 Note A—Amount represents accounts written off, net of recoveries. Note B—Amount represents claim payments, net of recoveries. SCHEDULE V 3 OF 3 FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (in thousands) Year Ended December 31, 2017 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 30,185 $ 5,975 $ — $ 13,094 (A) $ 23,066 Reserve for known and incurred but not reported claims: Consolidated $ 1,025,863 $ 450,410 $ 24,707 $ 472,047 (B) $ 1,028,933 Reserve deducted from notes receivable: Consolidated $ 2,113 $ 38 $ — $ 1,641 $ 510 Reserve deducted from deferred income taxes: Consolidated $ 8,049 $ 2,284 $ — $ — $ 10,333 Note A—Amount represents accounts written off, net of recoveries. Note B—Amount represents claim payments, net of recoveries. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. The Company consists of the following reportable segments 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 data and records; 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 47 states. The majority of policy liability is in the western United States, including approximately 59% 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 36 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values, are accounted for at cost, less impairment and are adjusted up or down for any observable price changes. |
Out-of-period Adjustments | O ut-of-period adjustments During 2017, the Company identified certain uncollectible balances related to fees within its title insurance and services segment, which primarily related to reporting periods prior to 2016, that should have been previously written off. To correct for this error, the Company recorded an adjustment in 2017, which increased other operating expenses and increased accounts payable and accrued liabilities by $8.5 million. Also, during 2017, the Company identified certain title plant assets within its title insurance and services segment that should have been previously written off, and certain title plant imaging assets that were misclassified as title plant assets. To correct for these errors, the Company recorded adjustments in 2017 to net realized investment gains, depreciation and amortization and title plants and other indexes. The impact of these adjustments included an increase to depreciation and amortization of $4.7 million, a decrease to net realized investment gains of $1.8 million and a decrease to title plant and other indexes of $6.5 million. The Company does not consider these adjustments to be material, individually or in the aggregate, to any previously issued consolidated financial statements. |
Use of Estimates | Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. |
Cash Equivalents | Cash equivalents The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted. |
Accounts and Accrued Income Receivable | Accounts and accrued income receivable Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the condition of the general economy and industry as a whole. Amounts are charged off in the period in which they are deemed to be uncollectible. |
Investments | Investments Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. |
Debt and Equity Securities | Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive loss. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2019 and 2018, the fair values of such investments totaled $91.6 million and $111.0 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. The Company evaluates its debt securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is other-than-temporarily impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 201 9 , the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. If the Company does not expect to recover the amortized cost basis of a debt security with declines in fair value (even if the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security), the loss is considered an other-than-temporary impairment loss and the credit portion of the loss (“credit loss”) is recognized in earnings and the non-credit portion is recognized in other comprehensive income. The credit loss is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted at the rate implicit in the security immediately prior to the recognition of the other-than-temporary impairment. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. As a result of its security-level review, the Company did not recognize any other-than-temporary impairment losses considered to be credit related for the years ended December 31, 2019, 2018 and 2017. It is possible that the Company could recognize additional other-than-temporary impairment losses on securities it owns at December 31, 2019 if future events or information cause it to determine that a decline in fair value is other-than-temporary. Equity securities Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable preferred stocks of corporate entities. Changes in the fair values of the Company’s equity securities are recognized in net realized investment gains/losses on the consolidated statements of income. |
Other Investments | Other investments Other investments consist primarily of equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary; equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values; investments in real estate; and notes receivable. Equity investments in which the Company exercises significant influence but does not control, and is not the primary beneficiary, are accounted for under the equity method of accounting. These investments are initially measured at cost and are generally adjusted by the Company’s share of equity in the income or losses of the investee. The carrying values of these investments are written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment is impaired, the Company assesses the current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity is operating. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values are measured at cost, less impairment and are adjusted up or down for any observable price changes. Investments in real estate are classified as held for sale and carried at the lower of cost or fair value, less estimated selling costs. Notes receivable are carried at cost, less reserves for losses. Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. |
Secured Financings Receivable and Payable | Secured financings receivable and payable Secured financings receivable, which reflect financing transactions with correspondent mortgage lenders involved in residential real estate lending, are collateralized by mortgages on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors, generally within 30 days and more typically in less than 10 days. Secured financings receivable is stated at the principal balance outstanding and no allowance for doubtful accounts is maintained as the receivable balance is generally considered fully collectible. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. |
Property and Equipment | Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 5 to 40 years and from 2 to 15 years, respectively. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Computer software, which is acquired or developed for internal use and for use with the Company’s products, is amortized over estimated useful lives ranging from 2 to 15 years using the straight-line method. Software development costs, which include certain payroll-related costs of employees directly associated with developing software in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Impairment losses on property and equipment primarily related to impairments of internally developed software of $6.0 million for the year ended December 31, 2019. Impairment losses on property and equipment were not material for the years ended December 31, 2018 and 2017. |
Leases | Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. On January 1, 2019, the Company adopted updated accounting guidance which requires lessees in leasing arrangements to recognize a lease asset and a liability to make lease payments on the balance sheet. In connection with its lease commitments the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company 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 for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company has also 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. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased using all, or a portion of, a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $7.5 million for 2019. Prior to 2019, operating lease commitments were not recognized as assets on the balance sheet. For further information on the Company’s leasing arrangements see Note 5 Leases. |
Title Plants and Other Indexes | Title plants and other indexes Title plants and other indexes included title plants of $530.5 million and $530.4 million and capitalized real estate data of $49.2 million and $47.1 million at December 31, 2019 and 2018, respectively. Title plants are carried at cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is initially recorded at cost and is amortized using the straight-line method over estimated useful lives ranging from 5 to 15 years. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of title plants whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. |
Business Combinations | Business Combinations Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed, and are based on their estimated fair values at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill |
Goodwill Impairment | Goodwill Impairment The Company is required to perform an annual goodwill impairment assessment for each reporting unit for which goodwill has been allocated. Those reporting units include title insurance, home warranty and property and casualty insurance. The Company’s trust and other services reporting unit has no allocated goodwill and is, therefore, not assessed for impairment. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on accounting guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego a qualitative assessment and perform a quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. The Company chose to perform qualitative assessments for its title insurance and home warranty reporting units and performed a quantitative impairment test for its property and casualty insurance reporting unit for 2019, 2018 and 2017. The results of the Company’s qualitative assessments for its title insurance and home warranty reporting units supported the conclusion that their fair values were not more likely than not less than their carrying amounts and, therefore, a quantitative impairment test was not considered necessary. Based on the results of its quantitative impairment tests, the Company determined that the fair value of its property and casualty insurance reporting unit exceeded the carrying amount and, therefore, no additional analysis was required. As a result of the Company’s annual goodwill impairment assessments, the Company did not record any goodwill impairment losses for 2019, 2018 or 2017. |
Other Intangible Assets | Other intangible assets The Company’s finite-lived intangible assets consist of customer relationships, noncompete agreements, trademarks, internal-use software licenses and patents. These assets are amortized on a straight-line basis over their useful lives ranging from 1 to 20 years and are subject to impairment assessments when there is an indication of a triggering event or abandonment. The Company’s indefinite-lived other intangible assets consist of licenses which are not amortized but rather assessed for impairment by comparing the fair values to carrying amounts at least annually, and when an indicator of potential impairment has occurred. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. Management’s impairment assessment for indefinite-lived other intangible assets may involve calculating the fair value by using a discounted cash flow analysis or through a market approach valuation. If the fair value exceeds its carrying amount, the asset is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment loss is recorded equal to the excess. |
Reserve for Known and Incurred but Not Reported Claims | Reserve for known and incurred but not reported claims The Company provides for title insurance losses through a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. The process of assessing the loss provision rate and the resulting IBNR reserve involves an evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include conditions in the real estate and mortgage markets, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. For recent policy years at early stages of development (generally the last three years), IBNR is generally estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. The volume and timing of title insurance claims are subject to cyclical influences from both the real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often, the lender must realize an actual loss, or at least be likely to realize an actual loss, for a title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that the sensitivity of claims to external conditions in the real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss rates exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. The reserve for property and casualty insurance losses reflects management’s best estimate of the amount necessary to settle all reported and unreported claims for the ultimate cost of insured losses, based upon the facts of each case and the Company’s experience with similar cases. The Company also utilizes the services of an independent actuary as part of its reserve analysis. Because the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process, the ultimate cost of insured losses may be more or less than the reserve amount. Reserve estimates are regularly analyzed and updated to reflect the most current information available. The Company provides for claims losses relating to its home warranty business based on the average cost per claim and historical loss experience as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience adjusted for estimated future increases in costs. |
Contingent Litigation and Regulatory Liabilities | Contingent litigation and regulatory liabilities Amounts related to contingent litigation and regulatory liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. The Company records legal fees in other operating expenses in the period incurred. |
Revenue | Revenues Premiums on title policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Premiums on property and casualty insurance policies and home warranty contracts are generally recognized ratably over the 12-month duration of the policy or contract. Information and other revenues are recognized when control of the promised goods or services is transferred to the customer and in an amount that reflects the consideration the Company expects to be entitled to in exchange for these goods or services. For those products and services where the Company’s performance obligation is satisfied at a point in time and for which there is no ongoing obligation, revenue is recognized upon delivery. For those products and services where the Company satisfies its performance obligation over time as the product or service is being transferred to the customer, revenue is generally recognized using the output method as the products or services are delivered. The Company applies the optional exemptions allowed under accounting guidance whereby the Company is not required to disclose either the transaction price allocated to performance obligations that are unsatisfied as of the end of the period or an explanation as to when the Company expects to recognize the related revenue. Such contracts generally include performance obligations that are contingent upon the closing of a real estate transaction or include variable consideration based on order volumes and have remaining contract terms of generally less than three years. The Company is allowed to apply the optional exemptions to its remaining performance obligations due to 1) the performance obligation is part of a contract that has an original duration of one year or less, 2) the associated revenue being recognized is based on the Company’s right to invoice for the value of the product or service delivered, 3) the associated variable consideration is being allocated entirely to wholly unsatisfied performance obligations or 4) immateriality. The Company also applies the practical expedient allowed under accounting guidance whereby it can disregard the impact to the transaction price of the effects of a significant financing component for arrangements where the Company expects the period between delivery of the product or service and customer payment to be one year or less. In addition, the Company applies the practical expedient whereby it recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period for the asset that the Company otherwise would have recognized is one year or less. The Company records a contract asset, and recognizes revenue, upon delivery of certain products related to the closing of a real estate transaction where the Company’s right to payment is subject to the closing of the transaction. The Company records a contract liability for payments received in advance of revenue recognition for certain products or services. Contract assets and liabilities were not material at December 31, 2019 and 2018. Revenues recognized during the years ended December 31, 2019 and 2018 that were included in contract liabilities at the beginning of the period were not material. For information about the Company’s revenues disaggregated by reportable segment see Note 20 Segment Financial Information. |
Premium Taxes | Premium taxes Title insurance, property and casualty insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. |
Income Taxes | Income taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. |
Share-Based Compensation | Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. For awards with retirement eligibility provisions, the cost is recognized through the date the employee becomes eligible to retire and is no longer required to provide service to earn the award. The Company accounts for forfeitures as they occur. The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting features and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. RSUs receive dividend equivalents in the form of RSUs having the same vesting requirements as the RSUs initially granted. The Company also offers an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at |
Earnings Per Share | Earnings per share Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs were vested. |
Employee Benefit Plans | Employee benefit plans The Company recognizes the underfunded status of its unfunded supplemental benefit plans as a liability on its consolidated balance sheets. Actuarial gains and losses and prior service costs and credits that have not been previously recognized as a component of net periodic benefit cost are recorded as a component of accumulated other comprehensive loss. Plan obligations are measured annually as of December 31. The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income earned on the Company’s deferred compensation plan assets is included as a component of net investment income and the income earned by the deferred compensation plan participants is included as a component of personnel costs on the consolidated statements of income. |
Foreign Currency | Foreign currency The Company operates in other countries, including Canada, the United Kingdom, South Korea and Australia. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of foreign subsidiaries with local currencies that were determined to be the functional currency are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing during the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. For those foreign subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with remeasurement gains and losses included in other operating expenses. Gains and losses resulting from foreign currency transactions are included within other operating expenses. |
Reinsurance | Reinsurance The Company’s title insurance business assumes and cedes large title insurance risks through reinsurance and its property and casualty insurance business purchases reinsurance to limit risk associated with large losses from single events. Additionally, the Company has limited reinsurance arrangements related to certain products offered through its international operations. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk, but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s consolidated statements of income. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0% of consolidated premium and escrow fees for each of the three years in the period ended December 31, 2019. Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the years ended December 31, 2019, 2018 and 2017. For information related to payments on reinsured losses for the Company’s property and casualty insurance business see Note 9 Reserve for Known and Incurred But Not Reported Claims. |
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 Company adopted the updated guidance using the modified retrospective transition approach and initially applied the 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. For further information on the Company’s leasing arrangements see Leases within this note and Note 5 Leases. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements: In December 2019, the FASB issued updated guidance intended to simplify and improve the accounting for income taxes. The updated guidance eliminates certain exceptions and clarifies and amends certain areas of the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. 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. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s 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. Except for the disclosure requirements, the adoption of this guidance , effective January 1, 2020, did not have a material impact on the Company’s 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. The adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s 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. Except for the disclosure requirements, the adoption of this guidance, effective January 1, 2020, did not have a material impact on the Company’s consolidated financial statements. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 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: Amortized Gross unrealized Estimated (in thousands) gains losses December 31, 2019 U.S. Treasury bonds $ 143,825 $ 469 $ (353 ) $ 143,941 Municipal bonds 1,043,252 47,804 (217 ) 1,090,839 Foreign government bonds 179,554 1,497 (961 ) 180,090 Governmental agency bonds 316,318 5,820 (219 ) 321,919 Governmental agency mortgage-backed securities 3,241,966 43,599 (7,307 ) 3,278,258 U.S. corporate debt securities 535,878 18,466 (972 ) 553,372 Foreign corporate debt securities 335,962 9,468 (213 ) 345,217 $ 5,796,755 $ 127,123 $ (10,242 ) $ 5,913,636 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 Unrealized Estimated Unrealized Estimated Unrealized December 31, 2019 U.S. Treasury bonds $ 12,507 $ (350 ) $ 3,193 $ (3 ) $ 15,700 $ (353 ) Municipal bonds 29,333 (207 ) 2,827 (10 ) 32,160 (217 ) Foreign government bonds 112,167 (934 ) 11,001 (27 ) 123,168 (961 ) Governmental agency bonds 24,493 (142 ) 14,923 (77 ) 39,416 (219 ) Governmental agency mortgage-backed securities 719,602 (2,785 ) 637,009 (4,522 ) 1,356,611 (7,307 ) U.S. corporate debt securities 42,607 (451 ) 10,216 (521 ) 52,823 (972 ) Foreign corporate debt securities 30,895 (108 ) 12,373 (105 ) 43,268 (213 ) $ 971,604 $ (4,977 ) $ 691,542 $ (5,265 ) $ 1,663,146 $ (10,242 ) 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 December 31, 2019, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 76,677 $ 61,690 $ 1,025 $ 4,433 $ 143,825 Estimated fair value $ 76,735 $ 62,050 $ 1,070 $ 4,086 $ 143,941 Municipal bonds Amortized cost $ 74,228 $ 153,668 $ 304,195 $ 511,161 $ 1,043,252 Estimated fair value $ 74,595 $ 156,412 $ 319,179 $ 540,653 $ 1,090,839 Foreign government bonds Amortized cost $ 25,682 $ 75,702 $ 63,304 $ 14,866 $ 179,554 Estimated fair value $ 25,634 $ 75,872 $ 63,155 $ 15,429 $ 180,090 Governmental agency bonds Amortized cost $ 9,181 $ 102,604 $ 138,955 $ 65,578 $ 316,318 Estimated fair value $ 9,209 $ 103,441 $ 141,940 $ 67,329 $ 321,919 U.S. corporate debt securities Amortized cost $ 38,783 $ 298,185 $ 164,297 $ 34,613 $ 535,878 Estimated fair value $ 38,864 $ 307,140 $ 170,495 $ 36,873 $ 553,372 Foreign corporate debt securities Amortized cost $ 25,981 $ 201,863 $ 78,656 $ 29,462 $ 335,962 Estimated fair value $ 26,005 $ 205,528 $ 83,018 $ 30,666 $ 345,217 Total debt securities, excluding mortgage-backed securities Amortized cost $ 250,532 $ 893,712 $ 750,432 $ 660,113 $ 2,554,789 Estimated fair value $ 251,042 $ 910,443 $ 778,857 $ 695,036 $ 2,635,378 Total mortgage-backed securities Amortized cost $ 3,241,966 Estimated fair value $ 3,278,258 Total debt securities Amortized cost $ 5,796,755 Estimated fair value $ 5,913,636 |
Investments in Equity Securities | Investments in equity securities are as follows: Cost Estimated (in thousands) December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 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 December 31, 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 $ 143,941 100.0 $ — — $ — — $ 143,941 100.0 Municipal bonds 1,045,628 95.9 43,843 4.0 1,368 0.1 1,090,839 100.0 Foreign government bonds 153,718 85.4 23,549 13.0 2,823 1.6 180,090 100.0 Governmental agency bonds 321,919 100.0 — — — — 321,919 100.0 Governmental agency mortgage-backed securities 3,278,258 100.0 — — — — 3,278,258 100.0 U.S. corporate debt securities 244,883 44.2 226,098 40.9 82,391 14.9 553,372 100.0 Foreign corporate debt securities 136,172 39.4 178,779 51.8 30,266 8.8 345,217 100.0 Total debt securities 5,324,519 90.0 472,269 8.0 116,848 2.0 5,913,636 100.0 Preferred stocks 46 0.3 16,865 93.2 1,183 6.5 18,094 100.0 Total $ 5,324,565 89.8 $ 489,134 8.2 $ 118,031 2.0 $ 5,931,730 100.0 |
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 December 31, 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 $ 15,700 100.0 $ — — $ — — $ 15,700 100.0 Municipal bonds 26,521 82.5 5,639 17.5 — — 32,160 100.0 Foreign government bonds 114,130 92.7 9,038 7.3 — — 123,168 100.0 Governmental agency bonds 39,416 100.0 — — — — 39,416 100.0 Governmental agency mortgage-backed securities 1,356,611 100.0 — — — — 1,356,611 100.0 U.S. corporate debt securities 9,883 18.7 22,264 42.2 20,676 39.1 52,823 100.0 Foreign corporate debt securities 26,994 62.4 8,925 20.6 7,349 17.0 43,268 100.0 Total $ 1,589,255 95.5 $ 45,866 2.8 $ 28,025 1.7 $ 1,663,146 100.0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: December 31, 2019 2018 (in thousands) Land $ 25,302 $ 25,472 Buildings 191,068 188,218 Leasehold improvements 66,471 68,941 Furniture and equipment 222,543 242,415 Capitalized software 718,847 667,667 1,224,231 1,192,713 Accumulated depreciation and amortization (782,217 ) (734,873 ) $ 442,014 $ 457,840 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | Lease assets and liabilities are summarized as follows: (in thousands) Classification December 31, 2019 Assets Operating lease assets Operating lease assets $ 291,385 Finance lease assets Other assets 4,560 Total lease assets $ 295,945 Liabilities Operating lease liabilities Operating lease liabilities $ 322,776 Finance lease liabilities Notes and contracts payable 4,814 Total lease liabilities $ 327,590 |
Summary of Components of Lease Expense | The components of lease expense are summarized as follows: (in thousands) Classification Year Ended Operating lease cost Other operating expenses $ 87,847 Finance lease cost: Amortization of lease assets Depreciation and amortization 1,919 Interest on lease liabilities Interest 191 Variable lease cost Other operating expenses 31,258 Short-term lease cost Other operating expenses 958 Sublease income Information and other (1,637 ) Net lease cost $ 120,536 |
Schedule of Future Minimum Lease Payments Under Operating and Finance Lease with Noncancelable Lease Terms | Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of December 31, 2019, are summarized as follows: (in thousands) Operating Leases Finance Leases Total 2020 $ 86,241 $ 1,680 $ 87,921 2021 73,397 1,369 74,766 2022 61,068 1,272 62,340 2023 46,080 651 46,731 2024 33,271 154 33,425 Thereafter 61,924 — 61,924 Total lease payments 361,981 5,126 367,107 Interest (39,205 ) (312 ) (39,517 ) Present value of lease liabilities $ 322,776 $ 4,814 $ 327,590 |
Schedule of Information Related to Lease Terms and Discount Rate | Information related to lease terms and discount rates is summarized as follows: December 31, 2019 Weighted-average remaining lease terms (years): Operating leases 5.4 Finance leases 3.5 Weighted-average discount rates: Operating leases 4.16 % Finance leases 3.92 % |
Schedule of Cash Flow Information Related to Lease Liabilities | Cash flow information related to lease liabilities is summarized as follows: (in thousands) Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,242 Operating cash flows from finance leases $ 191 Financing cash flows from finance leases $ 1,817 Operating lease assets obtained in exchange for new operating lease liabilities $ 54,809 Finance lease assets obtained in exchange for new finance lease liabilities $ 939 |
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) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2019 and 2018, is as follows: Title Specialty Total (in thousands) Balance as of December 31, 2017 $ 1,066,240 $ 46,765 $ 1,113,005 Acquisitions 36,806 — 36,806 Foreign currency translation (5,017 ) — (5,017 ) Other adjustments (628 ) — (628 ) Balance as of December 31, 2018 1,097,401 46,765 1,144,166 Acquisitions 4,014 — 4,014 Foreign currency translation 2,728 — 2,728 Balance as of December 31, 2019 $ 1,104,143 $ 46,765 $ 1,150,908 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets Gross Excluding Goodwill [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets are summarized as follows: December 31, 2019 2018 (in thousands) Finite-lived intangible assets: Customer relationships $ 99,905 $ 114,603 Noncompete agreements 13,150 14,402 Trademarks 10,520 10,753 Internal-use software licenses 21,982 29,394 Patents 2,840 2,840 148,397 171,992 Accumulated amortization (73,449 ) (79,535 ) 74,948 92,457 Indefinite-lived intangible assets: Licenses 16,885 16,915 $ 91,833 $ 109,372 |
Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated amortization expense for finite-lived intangible assets for the next five years is summarized as follows: Year (in thousands) 2020 $ 20,189 2021 $ 12,260 2022 $ 11,262 2023 $ 9,851 2024 $ 7,677 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | |
Escrow, Savings and Investment Certificate Accounts | Deposit accounts are summarized as follows: December 31, 2019 2018 (in thousands, except Escrow accounts: Interest bearing $ 1,831,083 $ 2,496,805 Non-interest bearing 1,337,774 1,133,825 3,168,857 3,630,630 Business checking and other deposits (1) 168,574 155,553 $ 3,337,431 $ 3,786,183 Weighted-average interest rate: Interest bearing escrow accounts 0.17 % 0.12 % |
Reserve for Known and Incurre_2
Reserve for Known and Incurred but Not Reported Claims (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2019 2018 2017 (in thousands) Balance at beginning of year $ 1,042,679 $ 1,028,933 $ 1,025,863 Provision related to: Current year 436,362 444,969 446,500 Prior years 9,678 7,664 3,910 446,040 452,633 450,410 Payments, net of recoveries, related to: Current year 227,663 242,617 240,468 Prior years 187,658 208,139 231,579 415,321 450,756 472,047 Other (10,354 ) 11,869 24,707 Balance at end of year $ 1,063,044 $ 1,042,679 $ 1,028,933 A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) December 31, 2019 December 31, 2018 Known title claims $ 83,382 7.8 % $ 80,306 7.7 % IBNR title claims 903,994 85.1 % 877,134 84.1 % Total title claims 987,376 92.9 % 957,440 91.8 % Non-title claims 75,668 7.1 % 85,239 8.2 % Total loss reserves $ 1,063,044 100.0 % $ 1,042,679 100.0 % |
Summary of Incurred and Paid Claims Development Net of Reinsurance | The information below about incurred and paid claims development for the years ended December 31, 2010 to 2018, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2019 Accident Years ended December 31, Total of IBNR liabilities plus expected development on reported Cumulative number of reported Year 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019 claims claims (in thousands) 2010 $ 140,621 $ 139,966 $ 139,991 $ 139,639 $ 140,128 $ 140,641 $ 140,353 $ 140,308 $ 140,324 $ 140,345 $ — 606 2011 148,395 149,076 149,768 149,486 149,763 149,552 149,488 149,487 149,486 — 641 2012 157,287 158,981 159,918 160,579 160,517 160,911 161,650 161,634 — 692 2013 182,858 184,419 185,244 184,826 184,668 184,777 184,606 27 762 2014 190,985 190,738 191,120 191,025 190,944 191,218 129 789 2015 221,617 225,754 225,977 226,555 226,882 349 867 2016 245,859 249,358 251,506 253,258 975 972 2017 267,392 275,480 278,005 3,101 1,014 2018 264,088 268,931 5,312 1,063 2019 251,259 8,661 1,078 Total $ 2,105,624 * Amounts unaudited Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident Years ended December 31, Year 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019 (in thousands) 2010 $ 113,513 $ 136,770 $ 138,978 $ 139,486 $ 140,136 $ 140,886 $ 140,302 $ 140,304 $ 140,321 $ 140,325 2011 123,116 144,367 146,952 148,984 149,358 149,495 149,485 149,486 149,486 2012 130,623 153,753 157,364 159,181 159,740 160,268 161,304 161,617 2013 151,377 180,277 182,565 183,957 184,473 184,711 184,552 2014 156,536 185,686 188,117 189,525 190,398 190,772 2015 181,445 217,618 223,045 225,041 226,201 2016 205,857 243,111 248,211 250,867 2017 220,218 266,653 270,705 2018 222,966 255,557 2019 207,342 Total $ 2,037,424 All outstanding liabilities before 2010, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance $ 68,200 * Amounts unaudited. |
Reconciliation of the Net Incurred and Paid Claims Development Tables to the Liability for Claims and Claim Adjustment Expense | A reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expense at December 31, 2019, is as follows: December 31, 2019 (in thousands) Liability for unpaid claims and claim adjustment expenses, net of reinsurance: Specialty insurance $ 68,200 Reinsurance recoverable on unpaid claims: Specialty insurance 5,991 Unallocated claims adjustment expenses: Specialty insurance 1,477 Insurance lines other than short-duration: Title insurance 987,376 Liability for unpaid claims and claims adjustment expenses $ 1,063,044 |
Schedule of Supplementary Information about Average Historical Claims | Supplementary information about average historical claims duration for the Company’s specialty insurance segment as of December 31, 2019, is as follows: Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Years 1 2 3 4 5 6 7 8 9 10 Annual payout 82.6 % 14.2 % 1.3 % 0.8 % 0.3 % 0.1 % 0.0 % 0.1 % 0.0 % 0.0 % |
Notes and Contracts Payable (Ta
Notes and Contracts Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes and Contracts Payable | December 31, 2019 2018 (in thousands, except percentages) 4.60% senior unsecured notes due November 15, 2024, effective interest rate of 4.60% $ 300,000 $ 300,000 4.30% senior unsecured notes due February 1, 2023, effective interest rate of 4.35% 250,000 250,000 Line of credit borrowings due April 30, 2024, current interest rate of 3.30% at December 31, 2019 160,000 — Line of credit borrowings due May 14, 2019, current interest rate of 4.15% at December 31, 2018 — 160,000 Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $38,402 and $39,283 at December 31, 2019 and 2018, respectively, fixed interest rate of 5.26% 15,724 19,247 Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.02% and 4.49% at December 31, 2019 and 2018, respectively 4,918 5,791 730,642 735,038 Unamortized discount – senior unsecured notes (358 ) (462 ) Debt issuance costs – senior unsecured notes (2,052 ) (2,557 ) $ 728,232 $ 732,019 |
Aggregate Annual Maturities of Notes and Contracts Payable | The aggregate annual maturities for notes and contracts payable for the next five years and thereafter, are summarized as follows: Year Annual maturities (in thousands) 2020 $ 5,323 2021 5,205 2022 5,347 2023 254,615 2024 460,152 Thereafter — $ 730,642 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income | The components of net investment income are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Interest on: Cash, cash equivalents and deposits with banks $ 26,187 $ 21,910 $ 7,321 Debt securities 163,339 138,409 104,458 Other investments 96,812 64,328 22,221 Dividends on equity securities 12,092 12,718 12,925 Deferred compensation plan assets 17,274 (6,399 ) 14,211 Equity in earnings of affiliates, net 2,836 2,717 3,785 Other 612 106 607 Total investment income 319,152 233,789 165,528 Investment expenses (3,739 ) (3,500 ) (3,126 ) Net investment income $ 315,413 $ 230,289 $ 162,402 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Expenses | Income taxes are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 167,016 $ 101,427 $ 116,400 State 3,514 12,285 9,382 Foreign 8,486 8,990 11,533 179,016 122,702 137,315 Deferred: Federal 11,275 4,381 (104,062 ) State 1,481 299 (10,724 ) Foreign 3,398 6,258 939 16,154 10,938 (113,847 ) $ 195,170 $ 133,640 $ 23,468 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s actual income taxes differ from the amounts computed by applying the federal income tax rate of 21% Year ended December 31, 2019 2018 2017 (in thousands, except percentages) Taxes calculated at federal rate $ 190,054 21.0 % $ 128,003 21.0 % $ 155,866 35.0 % State taxes, net of federal benefit 18,028 2.0 9,941 1.6 (872 ) (0.2 ) Change in liability for tax positions (13,563 ) (1.5 ) 875 0.1 (3,482 ) (0.8 ) Foreign income taxed at different rates 782 0.1 7,287 1.2 (6,163 ) (1.3 ) Tax reform impact — — (6,804 ) (1.1 ) (129,139 ) (29.0 ) Unremitted foreign earnings 2,588 0.3 (146 ) — 14,997 3.3 Other items, net (2,719 ) (0.3 ) (5,516 ) (0.9 ) (7,739 ) (1.7 ) $ 195,170 21.6 % $ 133,640 21.9 % $ 23,468 5.3 % |
Net Deferred Tax (Liability) Assets | The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: December 31, 2019 2018 (in thousands) Deferred tax assets: Deferred revenue $ 7,982 $ 7,362 Employee benefits 89,986 87,960 Bad debt reserves 5,990 7,421 Loss reserves 934 1,793 Pension 26,383 18,817 Net operating loss carryforward 14,067 13,290 Securities — 11,356 Foreign tax credit 6,724 8,415 Operating lease liabilities 72,119 — Other 2,116 5,464 226,301 161,878 Valuation allowance (9,846 ) (10,621 ) 216,455 151,257 Deferred tax liabilities: Depreciable and amortizable assets 241,799 230,758 Claims and related salvage 104,004 108,497 Investments in affiliates 612 1,957 Securities 39,035 — Operating lease assets 65,121 — Unremitted foreign earnings 13,709 10,506 464,280 351,718 Net deferred tax liability $ 247,825 $ 200,461 |
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows: December 31, 2019 2018 2017 (in thousands) Unrecognized tax benefits—beginning balance $ 13,300 $ 12,800 $ 18,100 Gross decreases—prior period tax positions (8,600 ) — (1,000 ) Gross increases—current period tax positions 800 500 — Settlements with taxing authorities (4,000 ) — (4,300 ) Unrecognized tax benefits—ending balance $ 1,500 $ 13,300 $ 12,800 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Year ended December 31, 2019 2018 2017 (in thousands, except per share data) Numerator Net income attributable to the Company $ 707,410 $ 474,496 $ 423,049 Denominator Basic weighted-average common shares 113,080 112,613 111,668 Effect of dilutive employee stock options and RSUs 575 666 767 Diluted weighted-average common shares 113,655 113,279 112,435 Net income per share attributable to the Company’s stockholders Basic $ 6.26 $ 4.21 $ 3.79 Diluted $ 6.22 $ 4.19 $ 3.76 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Principal Components of Employee Benefit Costs | The principal components of employee benefit costs are summarized as follows: Year ended December 31, 2019 2018 2017 (in thousands) Expense: Savings plan $ 60,416 $ 46,208 $ 34,520 Funded defined benefit pension plans — — 162,368 Unfunded supplemental benefit plans 8,989 9,248 12,705 Other plans, net 23,917 2,794 17,595 $ 93,322 $ 58,250 $ 227,188 |
Company's Benefit Obligations and Funded Status | During 2017, the Company recognized settlement costs related to the termination of its funded defined benefit pension plans. The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2019 2018 (in thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 236,773 $ 258,528 Service costs 282 519 Interest costs 9,116 8,079 Actuarial losses (gains) 27,034 (16,517 ) Benefits paid (14,412 ) (13,836 ) Projected benefit obligation at end of year 258,793 236,773 Change in plan assets: Contributions 14,412 13,836 Benefits paid (14,412 ) (13,836 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 258,793 $ 236,773 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 258,793 $ 236,773 Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial loss $ 103,624 $ 80,251 Unrecognized prior service credit (4,180 ) (8,250 ) $ 99,444 $ 72,001 Accumulated benefit obligation at end of year $ 258,793 $ 236,773 |
Net Periodic Benefit Costs | Net periodic benefit costs related to the Company’s unfunded supplemental benefit and funded defined benefit pension plans included the following components: Year ended December 31, 2019 2018 2017 (in thousands) Expense: Service costs $ 282 $ 519 $ 734 Interest costs 9,116 8,079 13,261 Expected return on plan assets — — (4,740 ) Amortization of net actuarial loss 3,661 4,828 17,742 Amortization of prior service credit (4,070 ) (4,178 ) (4,312 ) Settlement costs — — 152,388 $ 8,989 $ 9,248 $ 175,073 |
The Weighted-Average Discount Rate Assumptions Used to Determine Net Periodic Benefit Costs and Projected Benefit Obligations | The weighted-average discount rate assumptions used to determine net periodic benefit costs for the Company’s unfunded supplemental benefits plans for the years ended December 31, 2019, 2018 and 2017, were as follows: Year ended December 31, 2019 2018 2017 Discount rate for projected benefit obligation 4.32 % 3.61 % 4.03 % Discount rate for service cost 4.55 % 3.78 % 4.32 % Discount rate for interest cost 4.00 % 3.23 % 3.43 % The weighted-average discount rate assumption used to determine the projected benefit obligation for the Company’s unfunded supplemental benefits plans at December 31, 2019 and 2018, was as follows: December 31, 2019 2018 Discount rate 3.27 % 4.32 % |
Benefit Payments | Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in thousands) 2020 $ 15,459 2021 $ 16,225 2022 $ 16,427 2023 $ 16,650 2024 $ 16,717 Five years thereafter $ 80,264 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018: (in thousands) Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Debt securities: U.S. Treasury bonds $ 143,941 $ — $ 143,941 $ — Municipal bonds 1,090,839 — 1,090,839 — Foreign government bonds 180,090 — 180,090 — Governmental agency bonds 321,919 — 321,919 — Governmental agency mortgage-backed securities 3,278,258 — 3,278,258 — U.S. corporate debt securities 553,372 — 553,372 — Foreign corporate debt securities 345,217 — 345,217 — 5,913,636 — 5,913,636 — Equity securities: Preferred stocks 18,094 18,094 — — Common stocks 374,224 374,224 — — 392,318 392,318 — — Total assets $ 6,305,954 $ 392,318 $ 5,913,636 $ — (in thousands) Total Level 1 Level 2 Level 3 December 31, 2018 Assets: 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 December 31, 2019 and 2018: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2019 Assets: Cash and cash equivalents $ 1,485,959 $ 1,485,959 $ 1,485,959 $ — $ — Deposits with banks $ 44,422 $ 44,339 $ 4,074 $ 40,265 $ — Notes receivable, net $ 18,970 $ 19,422 $ — $ — $ 19,422 Secured financings receivable $ 287,459 $ 287,459 $ — $ 287,459 $ — Liabilities: Secured financings payable $ 278,412 $ 278,412 $ — $ 278,412 $ — Notes and contracts payable $ 728,232 $ 761,224 $ — $ 756,306 $ 4,918 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) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Costs Associated with Share-Based Compensation Plans | The following table summarizes the costs associated with the Company’s share-based compensation plans: Year ended December 31, 2019 2018 2017 (in thousands) Expense: RSUs $ 38,445 $ 37,597 $ 34,059 Stock options — — 263 Employee stock purchase plan 4,029 3,548 3,077 $ 42,474 $ 41,145 $ 37,399 |
Summary of RSU Activity | The following table summarizes RSU activity for the year ended December 31, 2019: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2018 1,248 $ 44.53 Granted during 2019 800 51.46 Vested during 2019 (870 ) 44.54 Forfeited during 2019 (26 ) 48.02 Unvested at December 31, 2019 1,152 $ 49.25 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2019, 2018 and 2017: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance Balance at December 31, 2016 $ (26,767 ) $ (63,576 ) $ (140,057 ) $ (230,400 ) $ 7 $ (230,393 ) Change in unrealized gains (losses) on debt and equity securities 86,821 — — 86,821 13 86,834 Change in foreign currency translation adjustment — 24,744 — 24,744 — 24,744 Net actuarial loss — — (20,407 ) (20,407 ) — (20,407 ) Amortization of net actuarial loss — — 17,742 17,742 — 17,742 Amortization of prior service credit — — (4,312 ) (4,312 ) — (4,312 ) Settlement costs — — 152,388 152,388 — 152,388 Tax effect (23,271 ) — (70,814 ) (94,085 ) — (94,085 ) Balance at December 31, 2017 36,783 (38,832 ) (65,460 ) (67,509 ) 20 (67,489 ) Cumulative-effect adjustment, net of taxes (40,550 ) — — (40,550 ) — (40,550 ) Change in unrealized gains (losses) on debt securities (49,643 ) — — (49,643 ) (18 ) (49,661 ) Change in foreign currency translation adjustment — (28,145 ) — (28,145 ) — (28,145 ) Net actuarial gain — — 16,517 16,517 — 16,517 Amortization of net actuarial loss — — 4,828 4,828 — 4,828 Amortization of prior service credit — — (4,178 ) (4,178 ) — (4,178 ) Tax effect 11,243 1,349 (4,487 ) 8,105 — 8,105 Balance at December 31, 2018 (42,167 ) (65,628 ) (52,780 ) (160,575 ) 2 (160,573 ) Change in unrealized gains (losses) on debt securities 164,221 — — 164,221 (1 ) 164,220 Change in foreign currency translation adjustment — 14,575 — 14,575 — 14,575 Net actuarial loss — — (27,034 ) (27,034 ) — (27,034 ) Amortization of net actuarial loss — — 3,661 3,661 — 3,661 Amortization of prior service credit — — (4,070 ) (4,070 ) — (4,070 ) Tax effect (38,937 ) (615 ) 7,282 (32,270 ) — (32,270 ) Balance at December 31, 2019 $ 83,117 $ (51,668 ) $ (72,941 ) $ (41,492 ) $ 1 $ (41,491 ) |
Adjustments for Reclassification of Other Comprehensive Income (Loss) | The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2019, 2018 and 2017: Unrealized Foreign Pension Total (in thousands) Year ended December 31, 2019 Pretax change before reclassifications $ 167,992 $ 14,575 $ (27,034 ) $ 155,533 Reclassifications out of AOCI (3,772 ) — (409 ) (4,181 ) Tax effect (38,937 ) (615 ) 7,282 (32,270 ) Total other comprehensive income (loss), net of tax $ 125,283 $ 13,960 $ (20,161 ) $ 119,082 Year ended December 31, 2018 Pretax change before reclassifications $ (63,910 ) $ (28,145 ) $ 16,517 $ (75,538 ) Reclassifications out of AOCI 14,249 — 650 14,899 Tax effect 11,243 1,349 (4,487 ) 8,105 Total other comprehensive income (loss), net of tax $ (38,418 ) $ (26,796 ) $ 12,680 $ (52,534 ) Year ended December 31, 2017 Pretax change before reclassifications $ 101,553 $ 24,744 $ (20,407 ) $ 105,890 Reclassifications out of AOCI (14,719 ) — 165,818 151,099 Tax effect (23,271 ) — (70,814 ) (94,085 ) Total other comprehensive income (loss), net of tax $ 63,563 $ 24,744 $ 74,597 $ 162,904 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effect of the reclassifications out of AOCI on the respective line items in the consolidated statements of income: Amounts reclassified from AOCI Year ended December 31, (in thousands) 2019 2018 2017 Affected line items Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities (1) $ $ (14,249 ) $ 14,719 Net realized investment gains (losses) Pretax total $ 3,772 $ (14,249 ) $ 14,719 Tax effect $ (894 ) $ 3,226 $ (5,259 ) Pension benefit adjustment (2): Amortization of net actuarial loss $ (3,661 ) $ (4,828 ) $ (17,742 ) Other operating expenses Amortization of prior service credit 4,070 4,178 4,312 Other operating expenses Settlement costs — — (152,388 ) Other operating expenses Pretax total $ 409 $ (650 ) $ (165,818 ) Tax effect $ (109 ) $ 170 $ 67,322 (1) Net realized gains (losses) for the years ended December 31, 2019 and 2018 related to sales of debt securities and net realized gains for the year ended December 31, 2017 related to sales of debt and equity securities. (2) These components of AOCI are components of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Segment Financial Information (
Segment Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2019, 2018 and 2017, is as follows: Revenues Depreciation Equity in affiliates, net Income (loss) Assets Investments method affiliates Capital (in thousands) 2019 Title Insurance and Services $ 5,675,952 $ 121,643 $ 2,836 $ 912,213 $ 10,349,145 $ 51,928 $ 100,826 Specialty Insurance 505,890 7,225 — 66,576 639,763 — 9,676 Corporate 21,896 153 — (73,771 ) 575,051 — — Eliminations (1,677 ) — — — (44,792 ) — — $ 6,202,061 $ 129,021 $ 2,836 $ 905,018 $ 11,519,167 $ 51,928 $ 110,502 2018 Title Insurance and Services $ 5,282,781 $ 119,053 $ 2,717 $ 655,003 $ 9,613,658 $ 54,674 $ 112,726 Specialty Insurance 469,342 6,721 — 26,999 600,268 — 12,791 Corporate (3,115 ) 153 — (72,464 ) 431,222 — — Eliminations (1,164 ) — — — (14,513 ) — — $ 5,747,844 $ 125,927 $ 2,717 $ 609,538 $ 10,630,635 $ 54,674 $ 125,517 2017 Title Insurance and Services $ 5,293,156 $ 121,540 $ 3,785 $ 642,364 $ 8,669,936 $ 56,583 $ 128,751 Specialty Insurance 465,020 6,351 — 36,908 592,405 — 7,913 Corporate 15,326 162 — (233,941 ) 429,128 — — Eliminations (1,139 ) — — — (118,247 ) — — $ 5,772,363 $ 128,053 $ 3,785 $ 445,331 $ 9,573,222 $ 56,583 $ 136,664 Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues 2019 (in thousands) Title Insurance and Services $ 2,188,056 $ 2,373,140 $ 776,124 $ 282,910 $ 55,722 $ 5,675,952 Specialty Insurance 471,217 — 12,742 11,249 10,682 505,890 $ 2,659,273 $ 2,373,140 $ 788,866 $ 294,159 $ 66,404 $ 6,181,842 2018 Title Insurance and Services $ 2,052,951 $ 2,284,906 $ 770,725 $ 223,318 $ (49,119 ) $ 5,282,781 Specialty Insurance 454,718 — 11,802 10,190 (7,368 ) 469,342 $ 2,507,669 $ 2,284,906 $ 782,527 $ 233,508 $ (56,487 ) $ 5,752,123 2017 Title Insurance and Services $ 2,022,384 $ 2,360,659 $ 766,018 $ 137,439 $ 6,656 $ 5,293,156 Specialty Insurance 439,470 — 11,259 9,713 4,578 465,020 $ 2,461,854 $ 2,360,659 $ 777,277 $ 147,152 $ 11,234 $ 5,758,176 |
Schedule Of Revenues From External Customers And Long-Lived Assets | Revenues from external customers allocated between domestic and foreign operations, by segment, for the years ended December 31, 2019, 2018 and 2017, are as follows: Year Ended December 31, 2019 2018 2017 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 5,374,624 $ 300,685 $ 4,984,617 $ 298,059 $ 5,011,990 $ 281,090 Specialty Insurance 505,890 — 469,342 — 465,020 — $ 5,880,514 $ 300,685 $ 5,453,959 $ 298,059 $ 5,477,010 $ 281,090 Long-lived assets allocated between domestic and foreign operations, by segment, as of December 31, 2019, 2018 and 2017, are as follows: December 31, 2019 2018 2017 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 982,397 $ 65,625 $ 994,023 $ 61,615 $ 975,443 $ 59,960 Specialty Insurance 7,479 — 65,644 — 57,762 — $ 989,876 $ 65,625 $ 1,059,667 $ 61,615 $ 1,033,205 $ 59,960 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2019 Revenues $ 1,303,581 $ 1,498,620 $ 1,671,196 $ 1,728,664 Income before income taxes $ 141,670 $ 229,497 $ 245,338 $ 288,513 Net income $ 109,804 $ 187,271 $ 188,167 $ 224,606 Net income attributable to noncontrolling interests $ 229 $ 616 $ 985 $ 608 Net income attributable to the Company $ 109,575 $ 186,655 $ 187,182 $ 223,998 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.97 $ 1.65 $ 1.65 $ 1.98 Diluted $ 0.97 $ 1.64 $ 1.65 $ 1.97 Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2018 Revenues $ 1,297,388 $ 1,491,157 $ 1,542,186 $ 1,417,113 Income before income taxes $ 93,065 $ 201,968 $ 195,587 $ 118,918 Net income $ 76,172 $ 155,091 $ 151,461 $ 93,174 Net (loss) income attributable to noncontrolling interests $ (55 ) $ (49 ) $ (19 ) $ 1,525 Net income attributable to the Company $ 76,227 $ 155,140 $ 151,480 $ 91,649 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.68 $ 1.38 $ 1.34 $ 0.81 Diluted $ 0.67 $ 1.37 $ 1.34 $ 0.81 (1) Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Narrative) (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)State | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Number of states company issues title insurance policies | State | 49 | ||
Number of states company licensed to issue property and casualty insurance policies | State | 50 | ||
Number of states company issues property and casualty policies | State | 47 | ||
Number of states company issues home warranty contracts | State | 36 | ||
Other operating expenses | $ 923,298,000 | $ 900,208,000 | $ 1,055,886,000 |
Accounts payable and accrued liabilities | 820,356,000 | 778,688,000 | |
Depreciation and amortization | 129,021,000 | 125,927,000 | 128,053,000 |
Net realized investment gains (losses) | 66,404,000 | (56,487,000) | 11,234,000 |
Title plants and other indexes | 579,674,000 | 577,467,000 | |
Fair values of investments in debt securities for funding of statutory premium reserves and state deposits | 91,600,000 | 111,000,000 | |
Net other-than-temporary impairment losses | $ 0 | 0 | 0 |
Period of mortgage loan sold description | Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors, generally within 30 days and more typically in less than 10 days. | ||
Impairment losses on property and equipment primarily related to impairments of internally developed software | $ 6,000,000 | ||
Impairment losses related to commercial real estate | 7,500,000 | ||
Title plants | 530,500,000 | 530,400,000 | |
Capitalized real estate data | $ 49,200,000 | 47,100,000 | |
Assessment to determine fair value | 50.00% | ||
Goodwill impairment losses | $ 0 | 0 | $ 0 |
Escrow deposits | 7,300,000,000 | 7,600,000,000 | |
Like-kind exchange funds | 3,000,000,000 | 2,700,000,000 | |
Accounting Standards Update 2016-02 | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Deferred gains on previous sale and operating leaseback transactions | 1,300,000 | ||
First American Trust | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Escrow deposits | 3,200,000,000 | 3,600,000,000 | |
Assets held-in-trust | $ 4,200,000,000 | $ 3,600,000,000 | |
Incentive Compensation Plan | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | ||
Employee stock purchase plan percentage of discount purchase price on closing price | 15.00% | ||
Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Percentage of claim amounts known in the first few years of the policy life | 70.00% | ||
Minimum | Capitalized Real Estate | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Capitalized real estate estimated useful lives, years | 5 years | ||
Minimum | Other Intangible Assets | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other intangible assets estimated useful lives, years | 1 year | ||
Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Percentage of claim amounts known in the first few years of the policy life | 80.00% | ||
Percentage of total premiums assumed and ceded in connection with reinsurance | 1.00% | 1.00% | 1.00% |
Maximum | Capitalized Real Estate | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Capitalized real estate estimated useful lives, years | 15 years | ||
Maximum | Other Intangible Assets | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other intangible assets estimated useful lives, years | 20 years | ||
Buildings | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 5 years | ||
Buildings | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 40 years | ||
Furniture and Equipment | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 2 years | ||
Furniture and Equipment | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 15 years | ||
Leasehold Improvements | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Leasehold improvements, estimated useful lives | initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. | ||
Capitalized Software Costs | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 2 years | ||
Capitalized Software Costs | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 15 years | ||
Adjustment for error correction | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Other operating expenses | $ 8,500,000 | ||
Accounts payable and accrued liabilities | 8,500,000 | ||
Depreciation and amortization | 4,700,000 | ||
Net realized investment gains (losses) | (1,800,000) | ||
Title plants and other indexes | $ (6,500,000) | ||
California | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Policy liability percentage | 59.00% |
Statutory Restrictions on Inv_2
Statutory Restrictions on Investments and Stockholders' Equity (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Investments on deposit with state treasurers | $ 111.5 | $ 129.2 | |
Dividends available to parent from subsidiaries | 508.9 | ||
Loans and advances available to parent from subsidiaries | 110.3 | ||
Differences in state prescribed or permitted practices to NAIC Statutory Accounting | 235.5 | 209 | |
FATICO | |||
Statutory Accounting Practices [Line Items] | |||
Statutory surplus maintained by insurance subsidiary | 1,500 | 1,200 | |
Statutory net income of insurance subsidiary | $ 473.6 | $ 258.4 | $ 306.5 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 5,796,755 | $ 5,761,150 |
Debt Securities, Gross unrealized gains | 127,123 | 23,361 |
Debt Securities, Gross unrealized losses | (10,242) | (70,700) |
Debt securities, Estimated fair value | 5,913,636 | 5,713,811 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 143,825 | 162,904 |
Debt Securities, Gross unrealized gains | 469 | 741 |
Debt Securities, Gross unrealized losses | (353) | (1,139) |
Debt securities, Estimated fair value | 143,941 | 162,506 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 1,043,252 | 1,050,134 |
Debt Securities, Gross unrealized gains | 47,804 | 7,210 |
Debt Securities, Gross unrealized losses | (217) | (12,309) |
Debt securities, Estimated fair value | 1,090,839 | 1,045,035 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 179,554 | 158,885 |
Debt Securities, Gross unrealized gains | 1,497 | 571 |
Debt Securities, Gross unrealized losses | (961) | (2,159) |
Debt securities, Estimated fair value | 180,090 | 157,297 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 316,318 | 319,115 |
Debt Securities, Gross unrealized gains | 5,820 | 1,145 |
Debt Securities, Gross unrealized losses | (219) | (4,093) |
Debt securities, Estimated fair value | 321,919 | 316,167 |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 3,241,966 | 3,219,585 |
Debt Securities, Gross unrealized gains | 43,599 | 12,030 |
Debt Securities, Gross unrealized losses | (7,307) | (29,016) |
Debt securities, Estimated fair value | 3,278,258 | 3,202,599 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 535,878 | 575,646 |
Debt Securities, Gross unrealized gains | 18,466 | 1,113 |
Debt Securities, Gross unrealized losses | (972) | (15,499) |
Debt securities, Estimated fair value | 553,372 | 561,260 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | 335,962 | 274,881 |
Debt Securities, Gross unrealized gains | 9,468 | 551 |
Debt Securities, Gross unrealized losses | (213) | (6,485) |
Debt securities, Estimated fair value | $ 345,217 | $ 268,947 |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Debt and Equity Securities [Line Items] | |||
Realized gains on sales of debt securities | $ 12,100 | $ 3,300 | $ 5,400 |
Realized losses on sales of debt securities | 6,100 | 20,300 | 16,400 |
Proceeds from sale of debt securities | 1,100,000 | 1,300,000 | 821,000 |
Realized and unrealized net gains (losses) on equity securities | 66,700 | (38,600) | |
Net unrealized gains (losses) on equity securities | 52,300 | (37,600) | |
Realized gains on sales of equity securities | 30,200 | ||
Realized losses on sales of equity securities | $ 2,100 | ||
Debt securities, Estimated fair value | 5,913,636 | 5,713,811 | |
Estimated fair value of debt securities, Unrealized loss position | 1,663,146 | $ 3,373,514 | |
Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 80,700 | ||
Estimated fair value of debt securities, Unrealized loss position | 18,100 | ||
Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 80,200 | ||
Estimated fair value of debt securities, Unrealized loss position | 19,900 | ||
Non-Investment Grade | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 116,848 | ||
Estimated fair value of debt securities, Unrealized loss position | 28,025 | ||
Non-Investment Grade | Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 72,100 | ||
Estimated fair value of debt securities, Unrealized loss position | 17,500 | ||
Non-Investment Grade | High Yield Corporate Debt Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 35,300 | ||
Estimated fair value of debt securities, Unrealized loss position | 9,300 | ||
Non-Investment Grade | Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 8,100 | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,200 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 971,604 | $ 1,672,754 |
Unrealized losses, Less than 12 months | (4,977) | (25,709) |
Estimated fair value, 12 months or longer | 691,542 | 1,700,760 |
Unrealized losses, 12 months or longer | (5,265) | (44,991) |
Estimated fair value, Total | 1,663,146 | 3,373,514 |
Unrealized losses, Total | (10,242) | (70,700) |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 12,507 | 19,749 |
Unrealized losses, Less than 12 months | (350) | (85) |
Estimated fair value, 12 months or longer | 3,193 | 55,615 |
Unrealized losses, 12 months or longer | (3) | (1,054) |
Estimated fair value, Total | 15,700 | 75,364 |
Unrealized losses, Total | (353) | (1,139) |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 29,333 | 172,387 |
Unrealized losses, Less than 12 months | (207) | (1,772) |
Estimated fair value, 12 months or longer | 2,827 | 369,139 |
Unrealized losses, 12 months or longer | (10) | (10,537) |
Estimated fair value, Total | 32,160 | 541,526 |
Unrealized losses, Total | (217) | (12,309) |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 112,167 | 23,654 |
Unrealized losses, Less than 12 months | (934) | (1,037) |
Estimated fair value, 12 months or longer | 11,001 | 42,119 |
Unrealized losses, 12 months or longer | (27) | (1,122) |
Estimated fair value, Total | 123,168 | 65,773 |
Unrealized losses, Total | (961) | (2,159) |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 24,493 | 56,270 |
Unrealized losses, Less than 12 months | (142) | (748) |
Estimated fair value, 12 months or longer | 14,923 | 90,631 |
Unrealized losses, 12 months or longer | (77) | (3,345) |
Estimated fair value, Total | 39,416 | 146,901 |
Unrealized losses, Total | (219) | (4,093) |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 719,602 | 850,459 |
Unrealized losses, Less than 12 months | (2,785) | (6,955) |
Estimated fair value, 12 months or longer | 637,009 | 982,610 |
Unrealized losses, 12 months or longer | (4,522) | (22,061) |
Estimated fair value, Total | 1,356,611 | 1,833,069 |
Unrealized losses, Total | (7,307) | (29,016) |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 42,607 | 374,473 |
Unrealized losses, Less than 12 months | (451) | (10,537) |
Estimated fair value, 12 months or longer | 10,216 | 109,844 |
Unrealized losses, 12 months or longer | (521) | (4,962) |
Estimated fair value, Total | 52,823 | 484,317 |
Unrealized losses, Total | (972) | (15,499) |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 30,895 | 175,762 |
Unrealized losses, Less than 12 months | (108) | (4,575) |
Estimated fair value, 12 months or longer | 12,373 | 50,802 |
Unrealized losses, 12 months or longer | (105) | (1,910) |
Estimated fair value, Total | 43,268 | 226,564 |
Unrealized losses, Total | $ (213) | $ (6,485) |
Debt and Equity Securities (I_2
Debt and Equity Securities (Investments in Debt Securities by Contractual Maturity) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 5,796,755 | $ 5,761,150 |
Debt securities, Estimated fair value | 5,913,636 | 5,713,811 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 76,677 | |
Amortized cost, Due after one through five years | 61,690 | |
Amortized cost, Due after five through ten years | 1,025 | |
Amortized cost, Due after ten years | 4,433 | |
Debt Securities, Amortized cost | 143,825 | 162,904 |
Estimated fair value, Due in one year or less | 76,735 | |
Estimated fair value, Due after one through five years | 62,050 | |
Estimated fair value, Due after five through ten years | 1,070 | |
Estimated fair value, Due after ten years | 4,086 | |
Debt securities, Estimated fair value | 143,941 | 162,506 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 74,228 | |
Amortized cost, Due after one through five years | 153,668 | |
Amortized cost, Due after five through ten years | 304,195 | |
Amortized cost, Due after ten years | 511,161 | |
Debt Securities, Amortized cost | 1,043,252 | 1,050,134 |
Estimated fair value, Due in one year or less | 74,595 | |
Estimated fair value, Due after one through five years | 156,412 | |
Estimated fair value, Due after five through ten years | 319,179 | |
Estimated fair value, Due after ten years | 540,653 | |
Debt securities, Estimated fair value | 1,090,839 | 1,045,035 |
Foreign Government Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 25,682 | |
Amortized cost, Due after one through five years | 75,702 | |
Amortized cost, Due after five through ten years | 63,304 | |
Amortized cost, Due after ten years | 14,866 | |
Debt Securities, Amortized cost | 179,554 | 158,885 |
Estimated fair value, Due in one year or less | 25,634 | |
Estimated fair value, Due after one through five years | 75,872 | |
Estimated fair value, Due after five through ten years | 63,155 | |
Estimated fair value, Due after ten years | 15,429 | |
Debt securities, Estimated fair value | 180,090 | 157,297 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 9,181 | |
Amortized cost, Due after one through five years | 102,604 | |
Amortized cost, Due after five through ten years | 138,955 | |
Amortized cost, Due after ten years | 65,578 | |
Debt Securities, Amortized cost | 316,318 | 319,115 |
Estimated fair value, Due in one year or less | 9,209 | |
Estimated fair value, Due after one through five years | 103,441 | |
Estimated fair value, Due after five through ten years | 141,940 | |
Estimated fair value, Due after ten years | 67,329 | |
Debt securities, Estimated fair value | 321,919 | 316,167 |
U.S. Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 38,783 | |
Amortized cost, Due after one through five years | 298,185 | |
Amortized cost, Due after five through ten years | 164,297 | |
Amortized cost, Due after ten years | 34,613 | |
Debt Securities, Amortized cost | 535,878 | 575,646 |
Estimated fair value, Due in one year or less | 38,864 | |
Estimated fair value, Due after one through five years | 307,140 | |
Estimated fair value, Due after five through ten years | 170,495 | |
Estimated fair value, Due after ten years | 36,873 | |
Debt securities, Estimated fair value | 553,372 | 561,260 |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 25,981 | |
Amortized cost, Due after one through five years | 201,863 | |
Amortized cost, Due after five through ten years | 78,656 | |
Amortized cost, Due after ten years | 29,462 | |
Debt Securities, Amortized cost | 335,962 | 274,881 |
Estimated fair value, Due in one year or less | 26,005 | |
Estimated fair value, Due after one through five years | 205,528 | |
Estimated fair value, Due after five through ten years | 83,018 | |
Estimated fair value, Due after ten years | 30,666 | |
Debt securities, Estimated fair value | 345,217 | $ 268,947 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 250,532 | |
Amortized cost, Due after one through five years | 893,712 | |
Amortized cost, Due after five through ten years | 750,432 | |
Amortized cost, Due after ten years | 660,113 | |
Debt Securities, Amortized cost | 2,554,789 | |
Estimated fair value, Due in one year or less | 251,042 | |
Estimated fair value, Due after one through five years | 910,443 | |
Estimated fair value, Due after five through ten years | 778,857 | |
Estimated fair value, Due after ten years | 695,036 | |
Debt securities, Estimated fair value | 2,635,378 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 3,241,966 | |
Estimated fair value | $ 3,278,258 |
Debt and Equity Securities (I_3
Debt and Equity Securities (Investments in Equity Securities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | $ 349,959 | $ 358,352 |
Equity securities, Estimated fair value | 392,318 | 353,535 |
Preferred stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 21,849 | 16,892 |
Equity securities, Estimated fair value | 18,094 | 14,162 |
Common stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 328,110 | 341,460 |
Equity securities, Estimated fair value | $ 374,224 | $ 339,373 |
Debt and Equity Securities (Com
Debt and Equity Securities (Composition of Investment Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,913,636 | $ 5,713,811 |
Equity securities, Estimated fair value | 392,318 | 353,535 |
Estimated fair value, Total | $ 5,931,730 | |
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 | $ 5,324,519 | |
Estimated fair value, Total | $ 5,324,565 | |
Percentage of debt securities by credit rating agencies | 90.00% | |
Percentage of investment portfolio by credit rating agencies | 89.80% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 472,269 | |
Estimated fair value, Total | $ 489,134 | |
Percentage of debt securities by credit rating agencies | 8.00% | |
Percentage of investment portfolio by credit rating agencies | 8.20% | |
Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 116,848 | |
Estimated fair value, Total | $ 118,031 | |
Percentage of debt securities by credit rating agencies | 2.00% | |
Percentage of investment portfolio by credit rating agencies | 2.00% | |
U.S. Treasury Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 143,941 | 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 | $ 143,941 | |
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 | $ 1,090,839 | 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 | $ 1,045,628 | |
Percentage of debt securities by credit rating agencies | 95.90% | |
Municipal Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 43,843 | |
Percentage of debt securities by credit rating agencies | 4.00% | |
Municipal Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,368 | |
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 | $ 180,090 | 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 | $ 153,718 | |
Percentage of debt securities by credit rating agencies | 85.40% | |
Foreign Government Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 23,549 | |
Percentage of debt securities by credit rating agencies | 13.00% | |
Foreign Government Bonds | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,823 | |
Percentage of debt securities by credit rating agencies | 1.60% | |
Governmental Agency Bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 321,919 | 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 | $ 321,919 | |
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 | $ 3,278,258 | 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 | $ 3,278,258 | |
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 | $ 553,372 | 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 | $ 244,883 | |
Percentage of debt securities by credit rating agencies | 44.20% | |
U.S. Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 226,098 | |
Percentage of debt securities by credit rating agencies | 40.90% | |
U.S. Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 82,391 | |
Percentage of debt securities by credit rating agencies | 14.90% | |
Foreign Corporate Debt Securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 345,217 | 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 | $ 136,172 | |
Percentage of debt securities by credit rating agencies | 39.40% | |
Foreign Corporate Debt Securities | Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 178,779 | |
Percentage of debt securities by credit rating agencies | 51.80% | |
Foreign Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 30,266 | |
Percentage of debt securities by credit rating agencies | 8.80% | |
Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 18,094 | $ 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 | $ 46 | |
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 | $ 16,865 | |
Percentage of equity securities by credit rating agencies | 93.20% | |
Preferred stocks | Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 1,183 | |
Percentage of equity securities by credit rating agencies | 6.50% |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 1,663,146 | $ 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 | $ 1,589,255 | |
Percentage of debt securities in unrealized loss position | 95.50% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 45,866 | |
Percentage of debt securities in unrealized loss position | 2.80% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 28,025 | |
Percentage of debt securities in unrealized loss position | 1.70% | |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 15,700 | 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 | $ 15,700 | |
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 | $ 32,160 | 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 | $ 26,521 | |
Percentage of debt securities in unrealized loss position | 82.50% | |
Municipal Bonds | Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 5,639 | |
Percentage of debt securities in unrealized loss position | 17.50% | |
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 | $ 123,168 | 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 | $ 114,130 | |
Percentage of debt securities in unrealized loss position | 92.70% | |
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 | $ 9,038 | |
Percentage of debt securities in unrealized loss position | 7.30% | |
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 | $ 39,416 | 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 | $ 39,416 | |
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 | $ 1,356,611 | 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 | $ 1,356,611 | |
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 | $ 52,823 | 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 | $ 9,883 | |
Percentage of debt securities in unrealized loss position | 18.70% | |
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 | $ 22,264 | |
Percentage of debt securities in unrealized loss position | 42.20% | |
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 | $ 20,676 | |
Percentage of debt securities in unrealized loss position | 39.10% | |
Foreign Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 43,268 | $ 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 | $ 26,994 | |
Percentage of debt securities in unrealized loss position | 62.40% | |
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 | $ 8,925 | |
Percentage of debt securities in unrealized loss position | 20.60% | |
Foreign Corporate Debt Securities | Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,349 | |
Percentage of debt securities in unrealized loss position | 17.00% |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 25,302 | $ 25,472 |
Buildings | 191,068 | 188,218 |
Leasehold improvements | 66,471 | 68,941 |
Furniture and equipment | 222,543 | 242,415 |
Capitalized software | 718,847 | 667,667 |
Property and equipment, Gross | 1,224,231 | 1,192,713 |
Accumulated depreciation and amortization | (782,217) | (734,873) |
Property and equipment, Total | $ 442,014 | $ 457,840 |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Operating lease assets | $ 291,385 | $ 0 |
Finance lease assets | $ 4,560 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |
Total lease assets | $ 295,945 | |
Liabilities | ||
Operating lease liabilities | 322,776 | $ 0 |
Finance lease liabilities | $ 4,814 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | faf:NotesAndContractsPayableMember | |
Total lease liabilities | $ 327,590 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost: | |
Net lease cost | $ 120,536 |
Other Operating Expenses | |
Operating Leased Assets [Line Items] | |
Operating lease cost | 87,847 |
Lease cost: | |
Variable lease cost | 31,258 |
Short-term lease cost | 958 |
Depreciation and Amortization | |
Lease cost: | |
Amortization of lease assets | 1,919 |
Interest | |
Lease cost: | |
Interest on lease liabilities | 191 |
Information and Other | |
Lease cost: | |
Sublease income | $ (1,637) |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases Maturities | ||
Operating Leases, 2020 | $ 86,241 | |
Operating Leases, 2021 | 73,397 | |
Operating Leases, 2022 | 61,068 | |
Operating Leases, 2023 | 46,080 | |
Operating Leases, 2024 | 33,271 | |
Operating Leases, Thereafter | 61,924 | |
Operating Leases, Total lease payments | 361,981 | |
Operating Leases, Interest | (39,205) | |
Operating Leases, Present value of lease liabilities | 322,776 | $ 0 |
Finance Leases Maturities | ||
Finance Leases, 2020 | 1,680 | |
Finance Leases, 2021 | 1,369 | |
Finance Leases, 2022 | 1,272 | |
Finance Leases, 2023 | 651 | |
Finance Leases, 2024 | 154 | |
Finance Leases, Thereafter | 0 | |
Finance Leases, Total lease payments | 5,126 | |
Finance Leases, Interest | (312) | |
Finance Leases, Present value of lease liabilities | 4,814 | |
Operating and Finance Leases Maturities | ||
Total, 2020 | 87,921 | |
Total, 2021 | 74,766 | |
Total, 2022 | 62,340 | |
Total, 2023 | 46,731 | |
Total, 2024 | 33,425 | |
Total, Thereafter | 61,924 | |
Total lease payments | 367,107 | |
Total, Interest | (39,517) | |
Total, Present value of lease liabilities | $ 327,590 |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Lease Terms and Discount Rate (Detail) | Dec. 31, 2019 |
Weighted-average remaining lease terms (years): | |
Operating leases | 5 years 4 months 24 days |
Finance leases | 3 years 6 months |
Weighted-average discount rates: | |
Operating leases | 4.16% |
Finance leases | 3.92% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Lease Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases | $ 88,242 |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from finance leases | 191 |
Cash paid for amounts included in the measurement of lease liabilities, Financing cash flows from finance leases | 1,817 |
Operating lease assets obtained in exchange for new operating lease liabilities | 54,809 |
Finance lease assets obtained in exchange for new finance lease liabilities | $ 939 |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Total rental expense for all operating leases | $ 89.4 | $ 91 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Reportable Segment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Beginning balance | $ 1,144,166 | $ 1,113,005 |
Acquisitions | 4,014 | 36,806 |
Foreign currency translation | 2,728 | (5,017) |
Other adjustments | (628) | |
Ending balance | 1,150,908 | 1,144,166 |
Title Insurance and Services | ||
Goodwill [Line Items] | ||
Beginning balance | 1,097,401 | 1,066,240 |
Acquisitions | 4,014 | 36,806 |
Foreign currency translation | 2,728 | (5,017) |
Other adjustments | (628) | |
Ending balance | 1,104,143 | 1,097,401 |
Specialty Insurance | ||
Goodwill [Line Items] | ||
Beginning balance | 46,765 | 46,765 |
Acquisitions | 0 | 0 |
Foreign currency translation | 0 | 0 |
Other adjustments | 0 | |
Ending balance | $ 46,765 | $ 46,765 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 99,905 | $ 114,603 |
Noncompete agreements | 13,150 | 14,402 |
Trademarks | 10,520 | 10,753 |
Internal-use software licenses | 21,982 | 29,394 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 148,397 | 171,992 |
Accumulated amortization | (73,449) | (79,535) |
Finite-lived intangible assets, net | 74,948 | 92,457 |
Licenses | 16,885 | 16,915 |
Other intangibles assets, net | $ 91,833 | $ 109,372 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense | $ 28.4 | $ 30.4 | $ 28.1 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2020 | $ 20,189 |
2021 | 12,260 |
2022 | 11,262 |
2023 | 9,851 |
2024 | $ 7,677 |
Deposits (Escrow, Savings and I
Deposits (Escrow, Savings and Investment Certificate Accounts) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |||
Interest bearing | $ 1,831,083 | $ 2,496,805 | |
Non-interest bearing | 1,337,774 | 1,133,825 | |
Escrow accounts | 3,168,857 | 3,630,630 | |
Business checking and other deposits | [1] | 168,574 | 155,553 |
Deposits, Total | $ 3,337,431 | $ 3,786,183 | |
Weighted average interest rate, Interest bearing escrow accounts | 0.17% | 0.12% | |
[1] | Business checking and other deposits primarily reflect non-interest bearing accounts. |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance at beginning of year | $ 1,042,679 | $ 1,028,933 | $ 1,025,863 |
Provision related to current year | 436,362 | 444,969 | 446,500 |
Provision related to prior years | 9,678 | 7,664 | 3,910 |
Total Provision | 446,040 | 452,633 | 450,410 |
Payments, net of recoveries, related to: Current year | 227,663 | 242,617 | 240,468 |
Payments, net of recoveries, related to: Prior years | 187,658 | 208,139 | 231,579 |
Total Payments, net of recoveries | 415,321 | 450,756 | 472,047 |
Other | (10,354) | 11,869 | 24,707 |
Balance at end of year | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 |
Reserve for Known and Incurre_4
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments, net of recoveries, related to: Current year | $ 227,663,000 | $ 242,617,000 | $ 240,468,000 |
Payments, net of recoveries, related to: Prior years | 187,658,000 | $ 208,139,000 | $ 231,579,000 |
Payments on reinsured losses | $ 5,991,000 | ||
Provision for title loss, percentage of title premiums and escrow fees | 4.00% | 4.00% | 4.00% |
Ultimate loss rate | 4.00% | 4.00% | 4.00% |
Estimated increase in loss reserve for prior policy years | $ 0 | $ 0 | $ 0 |
Specialty Insurance | |||
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments, net of recoveries, related to: Current year | 211,400,000 | 228,300,000 | 225,600,000 |
Payments, net of recoveries, related to: Prior years | 41,700,000 | 56,700,000 | 46,100,000 |
Property and Casualty Insurance Business | |||
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments on reinsured losses | 21,100,000 | 15,300,000 | 8,900,000 |
Reinsurance recoveries | $ 10,300,000 | $ 20,300,000 | $ 9,600,000 |
Reserve for Known and Incurre_5
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | ||||
Known title claims, amount | $ 83,382 | $ 80,306 | ||
IBNR title claims, amount | 903,994 | 877,134 | ||
Total title claims, amount | 987,376 | 957,440 | ||
Non-title claims, amount | 75,668 | 85,239 | ||
Total loss reserves, amount | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 | $ 1,025,863 |
Known title claims, percent | 7.80% | 7.70% | ||
IBNR title claims, percent | 85.10% | 84.10% | ||
Total title claims, percent | 92.90% | 91.80% | ||
Non-title claims, percent | 7.10% | 8.20% | ||
Total loss reserves, percent | 100.00% | 100.00% |
Reserve for Known and Incurre_6
Reserve for Known and Incurred but Not Reported Claims - Summary of Incurred and Paid Claims Development Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | [1] | Dec. 31, 2014USD ($) | [1] | Dec. 31, 2013USD ($) | [1] | Dec. 31, 2012USD ($) | [1] | Dec. 31, 2011USD ($) | [1] | Dec. 31, 2010USD ($) | [1] |
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 2,105,624 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,037,424 | |||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 0 | |||||||||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 68,200 | |||||||||||||||
Accident Year 2010 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 140,345 | $ 140,324 | $ 140,308 | $ 140,353 | $ 140,641 | $ 140,128 | $ 139,639 | $ 139,991 | $ 139,966 | $ 140,621 | ||||||
Total of IBNR liabilities plus expected development on reported claims | $ 0 | |||||||||||||||
Cumulative number of reported claims | Claim | 606 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 140,325 | 140,321 | 140,304 | 140,302 | 140,886 | 140,136 | 139,486 | 138,978 | 136,770 | $ 113,513 | ||||||
Accident Year 2011 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 149,486 | 149,487 | 149,488 | 149,552 | 149,763 | 149,486 | 149,768 | 149,076 | 148,395 | |||||||
Total of IBNR liabilities plus expected development on reported claims | $ 0 | |||||||||||||||
Cumulative number of reported claims | Claim | 641 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 149,486 | 149,486 | 149,485 | 149,495 | 149,358 | 148,984 | 146,952 | 144,367 | $ 123,116 | |||||||
Accident Year 2012 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 161,634 | 161,650 | 160,911 | 160,517 | 160,579 | 159,918 | 158,981 | 157,287 | ||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 0 | |||||||||||||||
Cumulative number of reported claims | Claim | 692 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 161,617 | 161,304 | 160,268 | 159,740 | 159,181 | 157,364 | 153,753 | $ 130,623 | ||||||||
Accident Year 2013 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 184,606 | 184,777 | 184,668 | 184,826 | 185,244 | 184,419 | 182,858 | |||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 27 | |||||||||||||||
Cumulative number of reported claims | Claim | 762 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 184,552 | 184,711 | 184,473 | 183,957 | 182,565 | 180,277 | $ 151,377 | |||||||||
Accident Year 2014 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 191,218 | 190,944 | 191,025 | 191,120 | 190,738 | 190,985 | ||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 129 | |||||||||||||||
Cumulative number of reported claims | Claim | 789 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 190,772 | 190,398 | 189,525 | 188,117 | 185,686 | $ 156,536 | ||||||||||
Accident Year 2015 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 226,882 | 226,555 | 225,977 | 225,754 | 221,617 | |||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 349 | |||||||||||||||
Cumulative number of reported claims | Claim | 867 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 226,201 | 225,041 | 223,045 | 217,618 | $ 181,445 | |||||||||||
Accident Year 2016 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 253,258 | 251,506 | 249,358 | 245,859 | ||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 975 | |||||||||||||||
Cumulative number of reported claims | Claim | 972 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 250,867 | 248,211 | 243,111 | $ 205,857 | ||||||||||||
Accident Year 2017 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 278,005 | 275,480 | 267,392 | |||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 3,101 | |||||||||||||||
Cumulative number of reported claims | Claim | 1,014 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 270,705 | 266,653 | $ 220,218 | |||||||||||||
Accident Year 2018 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 268,931 | 264,088 | ||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 5,312 | |||||||||||||||
Cumulative number of reported claims | Claim | 1,063 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 255,557 | $ 222,966 | ||||||||||||||
Accident Year 2019 [Member] | ||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 251,259 | |||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 8,661 | |||||||||||||||
Cumulative number of reported claims | Claim | 1,078 | |||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 207,342 | |||||||||||||||
[1] | Amounts unaudited |
Reserve for Known and Incurre_7
Reserve for Known and Incurred but Not Reported Claims - Reconciliation of the Net Incurred and Paid Claims Development Tables to the Liability for Claims and Claim Adjustment Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Shortduration Insurance Contracts Liability For Unpaid Claims And Allocated Claim Adjustment Expense Net [Abstract] | ||||
Liability for unpaid claims and claim adjustment expenses, net of reinsurance | $ 68,200 | |||
Reinsurance recoverable on unpaid claims: Specialty insurance | 5,991 | |||
Unallocated claims adjustment expenses: Specialty insurance | 1,477 | |||
Title insurance | 987,376 | $ 957,440 | ||
Total loss reserves, amount | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 | $ 1,025,863 |
Reserve for Known and Incurre_8
Reserve for Known and Incurred but Not Reported Claims - Schedule of Supplementary Information about Average Historical Claims (Detail) | Dec. 31, 2019 |
Shortduration Insurance Contracts Liability For Unpaid Claims And Allocated Claim Adjustment Expense Net [Abstract] | |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 1 | 82.60% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 2 | 14.20% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 3 | 1.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 4 | 0.80% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 5 | 0.30% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 6 | 0.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 7 | 0.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 8 | 0.10% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 9 | 0.00% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 10 | 0.00% |
Notes and Contracts Payable (Sc
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Line of credit borrowings | $ 160,000 | |
Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $38,402 and $39,283 at December 31, 2019 and 2018, respectively, fixed interest rate of 5.26% | 15,724 | $ 19,247 |
Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.02% and 4.49% at December 31, 2019 and 2018, respectively | 4,918 | 5,791 |
Notes and contracts payable | 730,642 | 735,038 |
Unamortized discount – senior unsecured notes | (358) | (462) |
Debt issuance costs – senior unsecured notes | (2,052) | (2,557) |
Notes and contracts payable net of unamortized discount and debt issuance costs | 728,232 | 732,019 |
4.60% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | 300,000 | 300,000 |
4.30% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes | 250,000 | 250,000 |
3.30% interest rate | ||
Debt Instrument [Line Items] | ||
Line of credit borrowings | 160,000 | 0 |
4.15% interest rate | ||
Debt Instrument [Line Items] | ||
Line of credit borrowings | $ 0 | $ 160,000 |
Notes and Contracts Payable (_2
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Credit facility interest rate | 3.30% | |
Weighted-average interest rate | 4.22% | 4.42% |
Senior Notes | 4.60% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | Nov. 15, 2024 | |
Effective interest rate | 4.60% | |
Senior Notes | 4.30% unsecured notes | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes maturity date | Feb. 1, 2023 | |
Effective interest rate | 4.35% | |
Line of Credit | 3.30% interest rate | ||
Debt Instrument [Line Items] | ||
Credit agreement termination date | Apr. 30, 2024 | |
Credit facility interest rate | 3.30% | |
Line of Credit | 4.15% interest rate | ||
Debt Instrument [Line Items] | ||
Credit agreement termination date | May 14, 2019 | |
Credit facility interest rate | 4.15% | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Maturity year | Nov. 1, 2023 | |
Collateral value | $ 38,402 | $ 39,283 |
Fixed interest rate | 5.26% | 5.26% |
Other Notes and Contracts Payable | ||
Debt Instrument [Line Items] | ||
Other notes and contracts payable maturities in year | 2024 | |
Weighted-average interest rate | 4.02% | 4.49% |
Notes and Contracts Payable (Na
Notes and Contracts Payable (Narrative) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Abstract] | |||
Weighted-average interest rate | 4.22% | 4.42% | |
Line of credit facility, maximum increase in revolving credit expansion option | $ 350,000,000 | ||
Borrowings under credit facility | 160,000,000 | ||
Outstanding borrowings under credit facility | $ 160,000,000 | ||
Credit facility interest rate | 3.30% | ||
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 December 31, 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 | ||
Repayments of lines of credit | $ 160,000,000 | ||
Credit agreement termination date | Apr. 30, 2024 |
Notes and Contracts Payable (Ag
Notes and Contracts Payable (Aggregate Annual Maturities of Notes and Contracts Payable) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of Long-term Debt [Abstract] | ||
2020 | $ 5,323 | |
2021 | 5,205 | |
2022 | 5,347 | |
2023 | 254,615 | |
2024 | 460,152 | |
Thereafter | 0 | |
Notes and contracts payable, Total | $ 730,642 | $ 735,038 |
Net Investment Income (Schedule
Net Investment Income (Schedule of Net Investment Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | $ 319,152 | $ 233,789 | $ 165,528 |
Other investments | 96,812 | 64,328 | 22,221 |
Deferred compensation plan assets | 17,274 | (6,399) | 14,211 |
Equity in earnings of affiliates, net | 2,836 | 2,717 | 3,785 |
Other | 612 | 106 | 607 |
Investment expenses | (3,739) | (3,500) | (3,126) |
Net investment income | 315,413 | 230,289 | 162,402 |
Cash, cash equivalents and deposits with banks | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | 26,187 | 21,910 | 7,321 |
Debt Securities | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | 163,339 | 138,409 | 104,458 |
Equity securities | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | $ 12,092 | $ 12,718 | $ 12,925 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Income (loss) from continuing operations before noncontrolling interests, Domestic | $ 857,200 | $ 571,900 | $ 391,400 | |
Income (loss) from continuing operations before noncontrolling interests, Foreign | $ 47,800 | $ 37,600 | $ 53,900 | |
Federal income tax rates | 21.00% | 21.00% | 35.00% | |
Effective income tax rates | 21.60% | 21.90% | 5.30% | |
Tax benefits recorded | $ 3,200 | $ 5,200 | $ 3,400 | |
Net payable related to spin-off tax liabilities | 500 | 15,600 | ||
Foreign tax credit carryover net of valuation allowance | 6,500 | |||
Operating loss carryforwards, amount | 80,200 | |||
Operating loss carryforwards, indefinite expiration, amount | 31,700 | |||
Operating loss carryforwards, subject to expiration, amount | 48,500 | |||
Deferred tax asset valuation allowance | 9,846 | 10,621 | ||
Liability for income taxes associated with uncertain tax positions | 1,500 | 13,300 | 12,800 | $ 18,100 |
Offsetting tax benefits related to uncertain tax positions | 400 | 3,700 | 3,700 | |
Accrued interest and penalties on uncertain tax positions | 26 | 5,800 | 5,300 | |
Other tax benefits related to interest and penalties of uncertain tax positions | $ 26 | 5,800 | $ 5,300 | |
Unrecognized tax positions increase decrease, months | It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. | |||
Deferred Tax Assets Valuation Allowances On Net Operating Loss Carryforwards | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax asset valuation allowance | $ 8,800 | 8,900 | ||
Deferred Tax Assets Valuation Allowances On Other Deferred Tax Assets | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax asset valuation allowance | 1,000 | $ 1,700 | ||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 200 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 35,900 | |||
Foreign | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | $ 44,100 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 167,016 | $ 101,427 | $ 116,400 |
Current State | 3,514 | 12,285 | 9,382 |
Current Foreign | 8,486 | 8,990 | 11,533 |
Current Income Tax Expense (Benefit), Total | 179,016 | 122,702 | 137,315 |
Deferred Federal | 11,275 | 4,381 | (104,062) |
Deferred State | 1,481 | 299 | (10,724) |
Deferred Foreign | 3,398 | 6,258 | 939 |
Deferred Income Tax Expense (Benefit), Total | 16,154 | 10,938 | (113,847) |
Income tax | $ 195,170 | $ 133,640 | $ 23,468 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Taxes calculated at federal rate | $ 190,054 | $ 128,003 | $ 155,866 |
State taxes, net of federal benefit | 18,028 | 9,941 | (872) |
Change in liability for tax positions | (13,563) | 875 | (3,482) |
Foreign income taxed at different rates | 782 | 7,287 | (6,163) |
Tax reform impact | 0 | (6,804) | (129,139) |
Unremitted foreign earnings | 2,588 | (146) | 14,997 |
Other items, net | (2,719) | (5,516) | (7,739) |
Income tax | $ 195,170 | $ 133,640 | $ 23,468 |
Federal income tax rate | 21.00% | 21.00% | 35.00% |
State taxes, net of federal benefit | 2.00% | 1.60% | (0.20%) |
Change in liability for tax positions | (1.50%) | 0.10% | (0.80%) |
Foreign income taxed at different rates | 0.10% | 1.20% | (1.30%) |
Tax reform impact | 0.00% | (1.10%) | (29.00%) |
Unremitted foreign earnings | 0.30% | 0.00% | 3.30% |
Other items, net | (0.30%) | (0.90%) | (1.70%) |
Total | 21.60% | 21.90% | 5.30% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Deferred revenue | $ 7,982 | $ 7,362 |
Employee benefits | 89,986 | 87,960 |
Bad debt reserves | 5,990 | 7,421 |
Loss reserves | 934 | 1,793 |
Pension | 26,383 | 18,817 |
Net operating loss carryforward | 14,067 | 13,290 |
Securities | 0 | 11,356 |
Foreign tax credit | 6,724 | 8,415 |
Operating lease liabilities | 72,119 | 0 |
Other | 2,116 | 5,464 |
Deferred tax assets before valuation allowance | 226,301 | 161,878 |
Valuation allowance | (9,846) | (10,621) |
Deferred tax assets | 216,455 | 151,257 |
Depreciable and amortizable assets | 241,799 | 230,758 |
Claims and related salvage | 104,004 | 108,497 |
Investments in affiliates | 612 | 1,957 |
Securities | 39,035 | 0 |
Operating lease assets | 65,121 | 0 |
Unremitted foreign earnings | 13,709 | 10,506 |
Deferred tax liabilities | 464,280 | 351,718 |
Net deferred tax liability | $ 247,825 | $ 200,461 |
Income Taxes - Changes In Unrec
Income Taxes - Changes In Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized tax benefits | |||
Unrecognized tax benefits—beginning balance | $ 13,300 | $ 12,800 | $ 18,100 |
Gross decreases—prior period tax positions | (8,600) | 0 | (1,000) |
Gross increases—current period tax positions | 800 | 500 | 0 |
Settlements with taxing authorities | (4,000) | 0 | (4,300) |
Unrecognized tax benefits—ending balance | $ 1,500 | $ 13,300 | $ 12,800 |
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 | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income attributable to the Company | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | $ 91,649 | $ 151,480 | $ 155,140 | $ 76,227 | $ 707,410 | $ 474,496 | $ 423,049 | ||||||||
Basic weighted-average common shares | 113,080 | 112,613 | 111,668 | ||||||||||||||||
Effect of dilutive employee stock options and RSUs | 575 | 666 | 767 | ||||||||||||||||
Diluted weighted-average common shares | 113,655 | 113,279 | 112,435 | ||||||||||||||||
Basic | $ 1.98 | [1] | $ 1.65 | [1] | $ 1.65 | [1] | $ 0.97 | [1] | $ 0.81 | [1] | $ 1.34 | [1] | $ 1.38 | [1] | $ 0.68 | [1] | $ 6.26 | $ 4.21 | $ 3.79 |
Diluted | $ 1.97 | [1] | $ 1.65 | [1] | $ 1.64 | [1] | $ 0.97 | [1] | $ 0.81 | [1] | $ 1.34 | [1] | $ 1.37 | [1] | $ 0.67 | [1] | $ 6.22 | $ 4.19 | $ 3.76 |
[1] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred compensation arrangements [Abstract] | ||
Deferred compensation plan, maximum deferral percentage | 100.00% | |
Assets held-in-trust | $ 103.5 | $ 86.5 |
Unfunded liabilities | $ 115.1 | $ 94.3 |
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Executive and management supplemental benefit plans compensation period | 5 years | |
Savings Plan | ||
Defined Contribution Plan [Abstract] | ||
Common stock, outstanding | 2,000,000 | 2,200,000 |
Percentage of plan shares in total shares outstanding | 1.80% | 1.90% |
Unfunded Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Cash contribution to plans during the next 12 months | $ 15.5 | |
Unfunded Supplemental Benefit Plans | Maximum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 30.00% | |
Unfunded Supplemental Benefit Plans | Minimum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 15.00% | |
Defined Benefit Pension And Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Net actuarial loss expected to be amortized from accumulated comprehensive loss into net periodic loss in next fiscal year | $ 5.3 | |
Prior service credit expected to be amortized from accumulated comprehensive loss into net periodic loss in next fiscal year | $ 3.1 |
Employee Benefit Plans (Princip
Employee Benefit Plans (Principal Components of Employee Benefit Costs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan expenses | $ 93,322 | $ 58,250 | $ 227,188 |
Savings Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Savings plan | 60,416 | 46,208 | 34,520 |
Funded Defined Benefit Pension Plans | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan expenses | 0 | 0 | 162,368 |
Unfunded Supplemental Benefit Plans | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan expenses | 8,989 | 9,248 | 12,705 |
Other Plans, Net | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Other plans, net | $ 23,917 | $ 2,794 | $ 17,595 |
Employee Benefit Plans (Company
Employee Benefit Plans (Company's Benefit Obligations and Funded Status) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in projected benefit obligation: | |||
Service costs | $ 282 | $ 519 | $ 734 |
Interest costs | 9,116 | 8,079 | 13,261 |
Unfunded Supplemental Benefit Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 236,773 | 258,528 | |
Service costs | 282 | 519 | |
Interest costs | 9,116 | 8,079 | |
Actuarial losses (gains) | 27,034 | (16,517) | |
Benefits paid | (14,412) | (13,836) | |
Projected benefit obligation at end of year | 258,793 | 236,773 | $ 258,528 |
Change in plan assets: | |||
Contributions | 14,412 | 13,836 | |
Benefits paid | (14,412) | (13,836) | |
Fair value of plan assets at end of year | 0 | 0 | |
Reconciliation of funded status, Unfunded status of the plans | 258,793 | 236,773 | |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | 258,793 | 236,773 | |
Unrecognized net actuarial loss | 103,624 | 80,251 | |
Unrecognized prior service credit | (4,180) | (8,250) | |
Amounts recognized in accumulated other comprehensive income | 99,444 | 72,001 | |
Accumulated benefit obligation at end of year | $ 258,793 | $ 236,773 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service costs | $ 282 | $ 519 | $ 734 |
Interest costs | 9,116 | 8,079 | 13,261 |
Expected return on plan assets | 0 | 0 | (4,740) |
Amortization of net actuarial loss | 3,661 | 4,828 | 17,742 |
Amortization of prior service credit | (4,070) | (4,178) | (4,312) |
Settlement costs | 0 | 0 | 152,388 |
Net periodic costs | $ 8,989 | $ 9,248 | $ 175,073 |
Employee Benefit Plans (The Wei
Employee Benefit Plans (The Weighted-Average Discount Rate Assumptions Used to Determine Net Periodic Benefit Costs) (Detail) - Unfunded Supplemental Benefit Plans | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate for projected benefit obligation | 4.32% | 3.61% | 4.03% |
Discount rate for service cost | 4.55% | 3.78% | 4.32% |
Discount rate for interest cost | 4.00% | 3.23% | 3.43% |
Employee Benefit Plans (The W_2
Employee Benefit Plans (The Weighted-Average Discount Rate Assumptions Used to Determine the Projected Benefit Obligations) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Unfunded Supplemental Benefit Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Defined benefit pension plans, Discount rate | 3.27% | 4.32% |
Employee Benefit Plans (Benefit
Employee Benefit Plans (Benefit Payments, Expected Future Service) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2020 | $ 15,459 |
2021 | 16,225 |
2022 | 16,427 |
2023 | 16,650 |
2024 | 16,717 |
Five years thereafter | $ 80,264 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | $ 5,913,636 | $ 5,713,811 |
Equity securities, estimated fair value | 392,318 | 353,535 |
Debt and Equity securities, estimated fair value | 6,305,954 | 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 | 392,318 | 353,535 |
Debt and Equity securities, estimated fair value | 392,318 | 353,535 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 5,913,636 | 5,713,811 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 5,913,636 | 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 | 143,941 | 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 | 143,941 | 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 | 1,090,839 | 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 | 1,090,839 | 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 | 180,090 | 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 | 180,090 | 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 | 321,919 | 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 | 321,919 | 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 | 3,278,258 | 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 | 3,278,258 | 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 | 553,372 | 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 | 553,372 | 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 | 345,217 | 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 | 345,217 | 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 | 18,094 | 14,162 |
Preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 18,094 | 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 | 374,224 | 339,373 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 374,224 | 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 ($) | Dec. 31, 2019 | Dec. 31, 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 Assets Level 1 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 1 Transfers Amount | 0 | 0 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 2 Transfers Amount | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,485,959 | $ 1,467,129 |
Deposits with banks | 44,422 | 36,209 |
Notes receivable, net | 18,970 | 13,237 |
Secured financings receivable | 287,459 | 76,311 |
Liabilities: | ||
Secured financings payable | 278,412 | 76,313 |
Notes and contracts payable | 728,232 | 732,019 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,485,959 | 1,467,129 |
Deposits with banks | 44,339 | 35,979 |
Notes receivable, net | 19,422 | 12,805 |
Secured financings receivable | 287,459 | 76,311 |
Liabilities: | ||
Secured financings payable | 278,412 | 76,313 |
Notes and contracts payable | 761,224 | 741,839 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,485,959 | 1,467,129 |
Deposits with banks | 4,074 | 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 | 40,265 | 31,672 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 287,459 | 76,311 |
Liabilities: | ||
Secured financings payable | 278,412 | 76,313 |
Notes and contracts payable | 756,306 | 736,048 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 19,422 | 12,805 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | $ 4,918 | $ 5,791 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs | $ 26.9 | ||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average exercise price | $ 27.66 | ||
Cash proceeds from stock options exercised | $ 0.8 | ||
Incentive Compensation Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock that can be awarded under terms of incentive compensation plan, in shares | 1,800,000 | ||
Incentive Compensation Plan, termination period, in years | 10 years | ||
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | ||
Shares issued Employee Stock Purchase Plan | 391,000 | 363,000 | 390,000 |
Shares reserved for future issuances | 1,600,000 | ||
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period, Years | 2 years 2 months 12 days | ||
Weighted average grant-date fair value | $ 51.46 | $ 54.80 | $ 39.56 |
Total fair value of shares distributed | $ 50.5 | $ 54.5 | $ 34.6 |
Shares vested but not distributed | 900,000 |
Share-Based Compensation (Costs
Share-Based Compensation (Costs Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 42,474 | $ 41,145 | $ 37,399 |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 38,445 | 37,597 | 34,059 |
Stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 0 | 0 | 263 |
Employee stock purchase plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 4,029 | $ 3,548 | $ 3,077 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - RSUs - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RSU, Shares | |||
Unvested at December 31, 2018 | 1,248 | ||
Granted during 2019 | 800 | ||
Vested during 2019 | (870) | ||
Forfeited during 2019 | (26) | ||
Unvested at December 31, 2019 | 1,152 | 1,248 | |
RSU, Weighted-average grant-date fair value | |||
Unvested at December 31, 2018 | $ 44.53 | ||
Granted during 2019 | 51.46 | $ 54.80 | $ 39.56 |
Vested during 2019 | 44.54 | ||
Forfeited during 2019 | 48.02 | ||
Unvested at December 31, 2019 | $ 49.25 | $ 44.53 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) shares in Thousands | 12 Months Ended | 106 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 30, 2019 | |
Remaining authorized amount under stock repurchase program | $ 161,600,000 | $ 161,600,000 | |
Common stock repurchased, shares | 47 | 3,600 | |
Purchase of Company, value | $ 2,100,000 | $ 88,400,000 | |
Maximum | |||
Stock repurchase program, authorized amount | $ 250,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | $ (160,573) | $ (67,489) | $ (230,393) |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt and equity securities | 164,220 | (49,661) | 86,834 |
Change in foreign currency translation adjustment | 14,575 | (28,145) | 24,744 |
Net actuarial (loss) gain | (27,034) | 16,517 | (20,407) |
Amortization of net actuarial loss | 3,661 | 4,828 | 17,742 |
Amortization of prior service credit | (4,070) | (4,178) | (4,312) |
Settlement costs | 152,388 | ||
Tax effect | (32,270) | 8,105 | (94,085) |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (41,491) | (160,573) | (67,489) |
Unrealized Gains (Losses) on Securities Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (42,167) | 36,783 | (26,767) |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt and equity securities | 164,221 | (49,643) | 86,821 |
Tax effect | (38,937) | 11,243 | (23,271) |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 83,117 | (42,167) | 36,783 |
Foreign Currency Translation Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (65,628) | (38,832) | (63,576) |
Change in foreign currency translation adjustment | 14,575 | (28,145) | 24,744 |
Tax effect | (615) | 1,349 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (51,668) | (65,628) | (38,832) |
Pension Benefit Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (52,780) | (65,460) | (140,057) |
Net actuarial (loss) gain | (27,034) | 16,517 | (20,407) |
Amortization of net actuarial loss | 3,661 | 4,828 | 17,742 |
Amortization of prior service credit | (4,070) | (4,178) | (4,312) |
Settlement costs | 0 | 0 | 152,388 |
Tax effect | 7,282 | (4,487) | (70,814) |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (72,941) | (52,780) | (65,460) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (160,575) | (67,509) | (230,400) |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt and equity securities | 164,221 | (49,643) | 86,821 |
Change in foreign currency translation adjustment | 14,575 | (28,145) | 24,744 |
Net actuarial (loss) gain | (27,034) | 16,517 | (20,407) |
Amortization of net actuarial loss | 3,661 | 4,828 | 17,742 |
Amortization of prior service credit | (4,070) | (4,178) | (4,312) |
Settlement costs | 152,388 | ||
Tax effect | (32,270) | 8,105 | (94,085) |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (41,492) | (160,575) | (67,509) |
Accumulated Other Comprehensive Income (Loss) Attributable to NCI | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | 2 | 20 | 7 |
Change in unrealized gains (losses) on debt and equity securities | (1) | (18) | 13 |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | $ 1 | $ 2 | $ 20 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | $ 155,533 | $ (75,538) | $ 105,890 |
Reclassifications out of AOCI | (4,181) | 14,899 | 151,099 |
Tax effect | (32,270) | 8,105 | (94,085) |
Total other comprehensive income (loss), net of tax | 119,082 | (52,534) | 162,904 |
Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 167,992 | (63,910) | 101,553 |
Reclassifications out of AOCI | (3,772) | 14,249 | (14,719) |
Tax effect | (38,937) | 11,243 | (23,271) |
Total other comprehensive income (loss), net of tax | 125,283 | (38,418) | 63,563 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 14,575 | (28,145) | 24,744 |
Reclassifications out of AOCI | 0 | 0 | 0 |
Tax effect | (615) | 1,349 | 0 |
Total other comprehensive income (loss), net of tax | 13,960 | (26,796) | 24,744 |
Pension Benefit Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | (27,034) | 16,517 | (20,407) |
Reclassifications out of AOCI | (409) | 650 | 165,818 |
Tax effect | 7,282 | (4,487) | (70,814) |
Total other comprehensive income (loss), net of tax | $ (20,161) | $ 12,680 | $ 74,597 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax total | $ 4,181 | $ (14,899) | $ (151,099) | |
Amortization of net actuarial loss | (3,661) | (4,828) | (17,742) | |
Amortization of prior service credit | 4,070 | 4,178 | 4,312 | |
Settlement costs | (152,388) | |||
Unrealized Gains (Losses) on Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) on sales of securities | [1] | 3,772 | (14,249) | 14,719 |
Pretax total | 3,772 | (14,249) | 14,719 | |
Tax effect | (894) | 3,226 | (5,259) | |
Pension Benefit Adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax total | [2] | 409 | (650) | (165,818) |
Tax effect | [2] | (109) | 170 | 67,322 |
Amortization of net actuarial loss | [2] | (3,661) | (4,828) | (17,742) |
Amortization of prior service credit | [2] | 4,070 | 4,178 | 4,312 |
Settlement costs | [2] | $ 0 | $ 0 | $ (152,388) |
[1] | Net realized gains (losses) for the years ended December 31, 2019 and 2018 related to sales of debt securities and net realized gains for the year ended December 31, 2017 related to sales of debt and equity securities | |||
[2] | These components of AOCI are components of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Litigation and Regulatory Con_2
Litigation and Regulatory Contingencies (Narrative) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Canadian Taxing Authority | |
Loss Contingencies [Line Items] | |
Income tax authority assessment | $ 14.8 |
Segment Financial Information_2
Segment Financial Information (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 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 | 47 |
Number of states issues home warranty contracts | 36 |
California | |
Segment Reporting Information [Line Items] | |
Policy liability percentage | 59.00% |
Segment Financial Information_3
Segment Financial Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 1,417,113 | $ 1,542,186 | $ 1,491,157 | $ 1,297,388 | $ 6,202,061 | $ 5,747,844 | $ 5,772,363 |
Depreciation and amortization | 129,021 | 125,927 | 128,053 | ||||||||
Equity in earnings of affiliates, net | 2,836 | 2,717 | 3,785 | ||||||||
Income (loss) before income taxes | 288,513 | $ 245,338 | $ 229,497 | $ 141,670 | 118,918 | $ 195,587 | $ 201,968 | $ 93,065 | 905,018 | 609,538 | 445,331 |
Assets | 11,519,167 | 10,630,635 | 11,519,167 | 10,630,635 | 9,573,222 | ||||||
Investments in equity method affiliates | 51,928 | 54,674 | 51,928 | 54,674 | 56,583 | ||||||
Capital expenditures | 110,502 | 125,517 | 136,664 | ||||||||
Direct premiums and escrow fees | 2,659,273 | 2,507,669 | 2,461,854 | ||||||||
Agent premiums | 2,373,140 | 2,284,906 | 2,360,659 | ||||||||
Information and other | 787,831 | 781,467 | 776,214 | ||||||||
Net investment income | 315,413 | 230,289 | 162,402 | ||||||||
Net realized investment gains (losses) | 66,404 | (56,487) | 11,234 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,181,842 | 5,752,123 | 5,758,176 | ||||||||
Direct premiums and escrow fees | 2,659,273 | 2,507,669 | 2,461,854 | ||||||||
Agent premiums | 2,373,140 | 2,284,906 | 2,360,659 | ||||||||
Information and other | 788,866 | 782,527 | 777,277 | ||||||||
Net investment income | 294,159 | 233,508 | 147,152 | ||||||||
Net realized investment gains (losses) | 66,404 | (56,487) | 11,234 | ||||||||
Operating Segments | Title Insurance and Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,675,952 | 5,282,781 | 5,293,156 | ||||||||
Depreciation and amortization | 121,643 | 119,053 | 121,540 | ||||||||
Equity in earnings of affiliates, net | 2,836 | 2,717 | 3,785 | ||||||||
Income (loss) before income taxes | 912,213 | 655,003 | 642,364 | ||||||||
Assets | 10,349,145 | 9,613,658 | 10,349,145 | 9,613,658 | 8,669,936 | ||||||
Investments in equity method affiliates | 51,928 | 54,674 | 51,928 | 54,674 | 56,583 | ||||||
Capital expenditures | 100,826 | 112,726 | 128,751 | ||||||||
Direct premiums and escrow fees | 2,188,056 | 2,052,951 | 2,022,384 | ||||||||
Agent premiums | 2,373,140 | 2,284,906 | 2,360,659 | ||||||||
Information and other | 776,124 | 770,725 | 766,018 | ||||||||
Net investment income | 282,910 | 223,318 | 137,439 | ||||||||
Net realized investment gains (losses) | 55,722 | (49,119) | 6,656 | ||||||||
Operating Segments | Specialty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 505,890 | 469,342 | 465,020 | ||||||||
Depreciation and amortization | 7,225 | 6,721 | 6,351 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 66,576 | 26,999 | 36,908 | ||||||||
Assets | 639,763 | 600,268 | 639,763 | 600,268 | 592,405 | ||||||
Investments in equity method affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 9,676 | 12,791 | 7,913 | ||||||||
Direct premiums and escrow fees | 471,217 | 454,718 | 439,470 | ||||||||
Agent premiums | 0 | 0 | 0 | ||||||||
Information and other | 12,742 | 11,802 | 11,259 | ||||||||
Net investment income | 11,249 | 10,190 | 9,713 | ||||||||
Net realized investment gains (losses) | 10,682 | (7,368) | 4,578 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21,896 | (3,115) | 15,326 | ||||||||
Depreciation and amortization | 153 | 153 | 162 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | (73,771) | (72,464) | (233,941) | ||||||||
Assets | 575,051 | 431,222 | 575,051 | 431,222 | 429,128 | ||||||
Investments in equity method affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,677) | (1,164) | (1,139) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 0 | 0 | 0 | ||||||||
Assets | (44,792) | (14,513) | (44,792) | (14,513) | (118,247) | ||||||
Investments in equity method affiliates | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Capital expenditures | $ 0 | $ 0 | $ 0 |
Segment Financial Information_4
Segment Financial Information (Schedule of Total Revenues From External Customers And Long-Lived Assets) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 1,417,113 | $ 1,542,186 | $ 1,491,157 | $ 1,297,388 | $ 6,202,061 | $ 5,747,844 | $ 5,772,363 |
Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 5,880,514 | 5,453,959 | 5,477,010 | ||||||||
Long-lived assets | 989,876 | 1,059,667 | 989,876 | 1,059,667 | 1,033,205 | ||||||
Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 300,685 | 298,059 | 281,090 | ||||||||
Long-lived assets | 65,625 | 61,615 | 65,625 | 61,615 | 59,960 | ||||||
Title Insurance and Services | Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 5,374,624 | 4,984,617 | 5,011,990 | ||||||||
Long-lived assets | 982,397 | 994,023 | 982,397 | 994,023 | 975,443 | ||||||
Title Insurance and Services | Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 300,685 | 298,059 | 281,090 | ||||||||
Long-lived assets | 65,625 | 61,615 | 65,625 | 61,615 | 59,960 | ||||||
Specialty Insurance | Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 505,890 | 469,342 | 465,020 | ||||||||
Long-lived assets | 7,479 | 65,644 | 7,479 | 65,644 | 57,762 | ||||||
Specialty Insurance | Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 0 | 0 | 0 | ||||||||
Long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Detail) - Subsequent Event [Member] $ in Millions | Feb. 13, 2020USD ($) |
Subsequent Event [Line Items] | |
Business acquisition cost | $ 350 |
Business acquisition, date of acquisition agreement | Feb. 13, 2020 |
Business acquisition, effective date of acquisition | Mar. 31, 2020 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 1,417,113 | $ 1,542,186 | $ 1,491,157 | $ 1,297,388 | $ 6,202,061 | $ 5,747,844 | $ 5,772,363 | ||||||||
Income before income taxes | 288,513 | 245,338 | 229,497 | 141,670 | 118,918 | 195,587 | 201,968 | 93,065 | 905,018 | 609,538 | 445,331 | ||||||||
Net income | 224,606 | 188,167 | 187,271 | 109,804 | 93,174 | 151,461 | 155,091 | 76,172 | 709,848 | 475,898 | 421,863 | ||||||||
Net (loss) income attributable to noncontrolling interests | 608 | 985 | 616 | 229 | 1,525 | (19) | (49) | (55) | 2,438 | 1,402 | (1,186) | ||||||||
Net income attributable to the Company | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | $ 91,649 | $ 151,480 | $ 155,140 | $ 76,227 | $ 707,410 | $ 474,496 | $ 423,049 | ||||||||
Basic | $ 1.98 | [1] | $ 1.65 | [1] | $ 1.65 | [1] | $ 0.97 | [1] | $ 0.81 | [1] | $ 1.34 | [1] | $ 1.38 | [1] | $ 0.68 | [1] | $ 6.26 | $ 4.21 | $ 3.79 |
Diluted | $ 1.97 | [1] | $ 1.65 | [1] | $ 1.64 | [1] | $ 0.97 | [1] | $ 0.81 | [1] | $ 1.34 | [1] | $ 1.37 | [1] | $ 0.67 | [1] | $ 6.22 | $ 4.19 | $ 3.76 |
[1] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Schedule I - Summary Of Investm
Schedule I - Summary Of Investments - Other Than Investments In Related Parties (Detail) $ in Thousands | Dec. 31, 2019USD ($) | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | $ 6,430,203 | |
Market value | 6,589,812 | |
Amount at which shown in the balance sheet | 6,589,443 | |
Deposits with Banks | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 44,422 | |
Market value | 44,339 | |
Amount at which shown in the balance sheet | 44,422 | |
U.S. Treasury Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 143,825 | |
Market value | 143,941 | |
Amount at which shown in the balance sheet | 143,941 | |
Municipal Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 1,043,252 | |
Market value | 1,090,839 | |
Amount at which shown in the balance sheet | 1,090,839 | |
Foreign Government Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 179,554 | |
Market value | 180,090 | |
Amount at which shown in the balance sheet | 180,090 | |
Governmental Agency Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 316,318 | |
Market value | 321,919 | |
Amount at which shown in the balance sheet | 321,919 | |
Governmental Agency Mortgage-Backed Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 3,241,966 | |
Market value | 3,278,258 | |
Amount at which shown in the balance sheet | 3,278,258 | |
U.S. Corporate Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 535,878 | |
Market value | 553,372 | |
Amount at which shown in the balance sheet | 553,372 | |
Foreign Corporate Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 335,962 | |
Market value | 345,217 | |
Amount at which shown in the balance sheet | 345,217 | |
Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 5,796,755 | |
Market value | 5,913,636 | |
Amount at which shown in the balance sheet | 5,913,636 | |
Equity Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 349,959 | |
Market value | 392,318 | |
Amount at which shown in the balance sheet | 392,318 | |
Notes Receivable, Net | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 18,970 | |
Market value | 19,422 | |
Amount at which shown in the balance sheet | 18,970 | |
Other Investments | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 220,097 | |
Market value | 220,097 | [1] |
Amount at which shown in the balance sheet | $ 220,097 | |
[1] | As other investments are not publicly traded, estimates of fair value could not be made without incurring excessive costs. |
Schedule II - Condensed Balance
Schedule II - Condensed Balance Sheets Parent Company (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 1,485,959 | $ 1,467,129 | ||
Income taxes receivable | 10,967 | 11,007 | ||
Other investments | 239,067 | 121,965 | ||
Deferred income taxes | 216,455 | 151,257 | ||
Other assets | 246,857 | 219,501 | ||
Total assets | 11,519,167 | 10,630,635 | $ 9,573,222 | |
Liabilities and Equity | ||||
Accounts payable and accrued liabilities | 820,356 | 778,688 | ||
Pension costs and other retirement plans | 439,390 | 386,264 | ||
Income taxes payable | 25,475 | 8,988 | ||
Deferred income taxes | 464,280 | 351,718 | ||
Notes and contracts payable | 728,232 | 732,019 | ||
Total liabilities | 7,094,165 | 6,885,247 | ||
Commitments and contingencies | 0 | 0 | ||
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—112,476 shares and 111,496 shares | 1 | 1 | ||
Additional paid-in capital | 2,300,926 | 2,258,290 | ||
Retained earnings | 2,161,049 | 1,644,165 | ||
Accumulated other comprehensive loss | (41,492) | (160,575) | ||
Total stockholders’ equity | 4,420,484 | 3,741,881 | ||
Noncontrolling interests | 4,518 | 3,507 | ||
Total equity | 4,425,002 | 3,745,388 | $ 3,483,025 | $ 3,014,349 |
Total liabilities and equity | 11,519,167 | 10,630,635 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 341,691 | 327,306 | ||
Due from subsidiaries, net | 47,798 | 10,029 | ||
Income taxes receivable | 10,967 | 11,007 | ||
Investment in subsidiaries | 5,215,056 | 4,592,281 | ||
Other investments | 77,000 | 0 | ||
Deferred income taxes | 18,283 | 16,636 | ||
Other assets | 109,228 | 90,164 | ||
Total assets | 5,820,023 | 5,047,423 | ||
Liabilities and Equity | ||||
Accounts payable and accrued liabilities | 19,455 | 34,578 | ||
Pension costs and other retirement plans | 376,393 | 334,390 | ||
Income taxes payable | 25,475 | 8,988 | ||
Deferred income taxes | 266,108 | 217,097 | ||
Notes and contracts payable | 707,590 | 706,982 | ||
Total liabilities | 1,395,021 | 1,302,035 | ||
Commitments and contingencies | 0 | 0 | ||
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—112,476 shares and 111,496 shares | 1 | 1 | ||
Additional paid-in capital | 2,300,926 | 2,258,290 | ||
Retained earnings | 2,161,049 | 1,644,165 | ||
Accumulated other comprehensive loss | (41,492) | (160,575) | ||
Total stockholders’ equity | 4,420,484 | 3,741,881 | ||
Noncontrolling interests | 4,518 | 3,507 | ||
Total equity | 4,425,002 | 3,745,388 | ||
Total liabilities and equity | $ 5,820,023 | $ 5,047,423 |
Schedule II - Condensed Balan_2
Schedule II - Condensed Balance Sheets Parent Company (Parenthetical) (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
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 | 112,476,000 | 111,496,000 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
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 | 112,476,000 | 111,496,000 |
Schedule II - Condensed Stateme
Schedule II - Condensed Statements Of Income Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Total revenues | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 1,417,113 | $ 1,542,186 | $ 1,491,157 | $ 1,297,388 | $ 6,202,061 | $ 5,747,844 | $ 5,772,363 |
Expenses: | |||||||||||
Income taxes | 195,170 | 133,640 | 23,468 | ||||||||
Net income | 224,606 | 188,167 | 187,271 | 109,804 | 93,174 | 151,461 | 155,091 | 76,172 | 709,848 | 475,898 | 421,863 |
Less: Net income (loss) attributable to noncontrolling interests | 608 | 985 | 616 | 229 | 1,525 | (19) | (49) | (55) | 2,438 | 1,402 | (1,186) |
Net income attributable to the Company | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | $ 91,649 | $ 151,480 | $ 155,140 | $ 76,227 | 707,410 | 474,496 | 423,049 |
Parent Company | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 384,799 | 394,742 | 354,350 | ||||||||
Other income (losses) | 21,660 | (2,986) | 15,011 | ||||||||
Total revenues | 406,459 | 391,756 | 369,361 | ||||||||
Expenses: | |||||||||||
Other expenses | 66,984 | 40,415 | 54,245 | ||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 339,475 | 351,341 | 315,116 | ||||||||
Income taxes | 73,209 | 77,031 | 16,606 | ||||||||
Equity in undistributed earnings of subsidiaries | 443,582 | 201,588 | 123,353 | ||||||||
Net income | 709,848 | 475,898 | 421,863 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 2,438 | 1,402 | (1,186) | ||||||||
Net income attributable to the Company | $ 707,410 | $ 474,496 | $ 423,049 |
Schedule II - Condensed State_2
Schedule II - Condensed Statements Of Comprehensive Income Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net income | $ 224,606 | $ 188,167 | $ 187,271 | $ 109,804 | $ 93,174 | $ 151,461 | $ 155,091 | $ 76,172 | $ 709,848 | $ 475,898 | $ 421,863 |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 125,283 | (38,418) | 63,563 | ||||||||
Foreign currency translation adjustment | 13,960 | (26,796) | 24,744 | ||||||||
Pension benefit adjustment | (20,161) | 12,680 | 74,597 | ||||||||
Total other comprehensive income (loss), net of tax | 119,082 | (52,534) | 162,904 | ||||||||
Comprehensive income | 828,930 | 423,364 | 584,767 | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 2,437 | 1,384 | (1,173) | ||||||||
Comprehensive income attributable to the Company | 826,493 | 421,980 | 585,940 | ||||||||
Parent Company | |||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net income | 709,848 | 475,898 | 421,863 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 125,283 | (38,418) | 63,563 | ||||||||
Foreign currency translation adjustment | 13,960 | (26,796) | 24,744 | ||||||||
Pension benefit adjustment | (20,161) | 12,680 | 74,597 | ||||||||
Total other comprehensive income (loss), net of tax | 119,082 | (52,534) | 162,904 | ||||||||
Comprehensive income | 828,930 | 423,364 | 584,767 | ||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 2,437 | 1,384 | (1,173) | ||||||||
Comprehensive income attributable to the Company | $ 826,493 | $ 421,980 | $ 585,940 |
Schedule II - Condensed State_3
Schedule II - Condensed Statements Of Cash Flows Parent Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Cash used for operating activities | $ 913,089 | $ 793,165 | $ 632,134 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | (19,674) | (79,171) | (82,993) |
Cash used for investing activities | (452,232) | (1,220,624) | (387,168) |
Cash flows from financing activities: | |||
Borrowings under unsecured credit agreement | 160,000 | 0 | 0 |
Repayments of notes and contracts payable | (165,569) | (5,294) | (5,543) |
Net (payments) proceeds in connection with share-based compensation plans | (1,187) | (4,105) | 2,732 |
Purchase of Company shares | (2,066) | (18,801) | 0 |
Payments of cash dividends | (188,440) | (178,487) | (159,284) |
Cash (used for) provided by financing activities | (445,069) | 514,735 | 128,024 |
Net increase in cash and cash equivalents | 18,830 | 79,903 | 381,088 |
Cash and cash equivalents—Beginning of year | 1,467,129 | 1,387,226 | 1,006,138 |
Cash and cash equivalents—End of year | 1,485,959 | 1,467,129 | 1,387,226 |
Parent Company | |||
Cash flows from operating activities: | |||
Cash used for operating activities | 356,116 | 381,516 | 232,347 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | (14,845) | (67,061) | (21,750) |
Net payments to subsidiaries | (58,193) | (19,676) | (41,726) |
Investments in unconsolidated entities | (77,000) | 0 | 0 |
Net change in other investments | 0 | 0 | 82 |
Cash used for investing activities | (150,038) | (86,737) | (63,394) |
Cash flows from financing activities: | |||
Borrowings under unsecured credit agreement | 160,000 | 0 | 0 |
Repayments of notes and contracts payable | (160,000) | 0 | 0 |
Net (payments) proceeds in connection with share-based compensation plans | (1,187) | (4,105) | 2,732 |
Purchase of Company shares | (2,066) | (18,801) | 0 |
Payments of cash dividends | (188,440) | (178,487) | (159,284) |
Cash (used for) provided by financing activities | (191,693) | (201,393) | (156,552) |
Net increase in cash and cash equivalents | 14,385 | 93,386 | 12,401 |
Cash and cash equivalents—Beginning of year | 327,306 | 233,920 | 221,519 |
Cash and cash equivalents—End of year | $ 341,691 | $ 327,306 | $ 233,920 |
Schedule II - Notes to Condense
Schedule II - Notes to Condensed Financial Statements Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash dividends received from subsidiaries | $ 384.8 | $ 394.4 | $ 87.4 |
Schedule III - Balance Sheet Ca
Schedule III - Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | $ 33,114 | $ 32,733 |
Claims reserves | 1,063,044 | 1,042,679 |
Deferred revenues | 252,331 | 243,280 |
Title Insurance and Services | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 187 | 343 |
Claims reserves | 987,376 | 957,440 |
Deferred revenues | 7,058 | 9,339 |
Specialty Insurance | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 32,927 | 32,390 |
Claims reserves | 75,668 | 85,239 |
Deferred revenues | $ 245,273 | $ 233,941 |
Schedule III - Income Statement
Schedule III - Income Statement Captions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | $ 5,032,413 | $ 4,792,575 | $ 4,822,513 | |
Net investment income | [1] | 381,817 | 173,802 | 173,636 |
Loss provision | 446,040 | 452,633 | 450,410 | |
Amortization of deferred policy acquisition costs (credits) | (537) | (1,263) | (908) | |
Other operating expenses | 923,298 | 900,208 | 1,055,886 | |
Premiums written | 482,056 | 459,098 | 450,098 | |
Operating Segments | Title Insurance and Services | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 4,561,196 | 4,337,857 | 4,383,043 | |
Net investment income | [1] | 338,632 | 174,199 | 144,095 |
Loss provision | 182,450 | 173,520 | 175,322 | |
Amortization of deferred policy acquisition costs (credits) | 0 | (125) | 122 | |
Other operating expenses | 805,480 | 793,364 | 788,074 | |
Premiums written | 0 | 0 | 0 | |
Operating Segments | Specialty Insurance | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 471,217 | 454,718 | 439,470 | |
Net investment income | [1] | 21,931 | 2,822 | 14,291 |
Loss provision | 263,590 | 279,113 | 275,088 | |
Amortization of deferred policy acquisition costs (credits) | (537) | (1,138) | (1,030) | |
Other operating expenses | 80,705 | 74,025 | 67,813 | |
Premiums written | 482,056 | 459,098 | 450,098 | |
Corporate | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 0 | 0 | 0 | |
Net investment income | [1] | 21,896 | (3,115) | 15,326 |
Loss provision | 0 | 0 | 0 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | 38,148 | 33,879 | 201,062 | |
Premiums written | 0 | 0 | 0 | |
Eliminations | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 0 | 0 | 0 | |
Net investment income | [1] | (642) | (104) | (76) |
Loss provision | 0 | 0 | 0 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | (1,035) | (1,060) | (1,063) | |
Premiums written | $ 0 | $ 0 | $ 0 | |
[1] | Includes net investment income and net realized investment gains (losses). |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Title Insurance and Services | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $ 4,573,715 | $ 4,353,130 | $ 4,396,882 |
Ceded to other companies | 13,103 | 16,398 | 15,014 |
Assumed from other companies | 584 | 1,125 | 1,175 |
Premiums and escrow fees | $ 4,561,196 | $ 4,337,857 | $ 4,383,043 |
Percentage of amount assumed to premiums and escrow fees | 0.00% | 0.00% | 0.00% |
Specialty Insurance | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $ 482,820 | $ 466,245 | $ 448,296 |
Ceded to other companies | 11,603 | 11,527 | 8,826 |
Assumed from other companies | 0 | 0 | 0 |
Premiums and escrow fees | $ 471,217 | $ 454,718 | $ 439,470 |
Percentage of amount assumed to premiums and escrow fees | 0.00% | 0.00% | 0.00% |
Schedule V - Valuation And Qual
Schedule V - Valuation And Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Additions Charged to costs and expenses | $ 0 | $ 0 | ||
Additions Charged to other accounts | 0 | 0 | ||
Reserve Deducted From Accounts Receivable | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 22,841 | 23,066 | 30,185 | |
Additions Charged to costs and expenses | 4,125 | 5,039 | 5,975 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | [1] | 4,982 | 5,264 | 13,094 |
Balance at end of period | 21,984 | 22,841 | 23,066 | |
Reserve For Known And Incurred But Not Reported Claims | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 1,042,679 | 1,028,933 | 1,025,863 | |
Additions Charged to costs and expenses | 446,040 | 452,633 | 450,410 | |
Additions Charged to other accounts | (10,354) | 11,869 | 24,707 | |
Deductions from reserve | [2] | 415,321 | 450,756 | 472,047 |
Balance at end of period | 1,063,044 | 1,042,679 | 1,028,933 | |
Reserve Deducted From Notes Receivable | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 343 | 510 | 2,113 | |
Additions Charged to costs and expenses | 0 | 167 | 38 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | 0 | 334 | 1,641 | |
Balance at end of period | 343 | 343 | 510 | |
Reserve Deducted From Deferred Income Taxes | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 10,621 | 10,333 | 8,049 | |
Additions Charged to costs and expenses | 0 | 288 | 2,284 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | 775 | 0 | 0 | |
Balance at end of period | $ 9,846 | $ 10,621 | $ 10,333 | |
[1] | Amount represents accounts written off, net of recoveries. | |||
[2] | Amount represents claim payments, net of recoveries. |