Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 09, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
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 | $ 5,183,749,234 | ||
Entity Common Stock, Shares Outstanding | 109,849,486 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common stock, $0.00001 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-34580 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1911571 | ||
Entity Address, Address Line One | 1 First American Way | ||
Entity Address, City or Town | Santa Ana | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92707-5913 | ||
City Area Code | (714) | ||
Local Phone Number | 250-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement with respect to the 2021 annual meeting of the stockholders are incorporated by reference in Part III of this report. The definitive proxy statement or an amendment to this Form 10-K will be filed no later than 120 days after the close of registrant’s fiscal year. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 1,275,466 | $ 1,485,959 |
Accounts and accrued income receivable, less allowances of $13,994 and $12,676 | 385,086 | 324,385 |
Income taxes receivable | 951 | 10,967 |
Investments: | ||
Deposits with banks | 45,856 | 44,422 |
Debt securities, includes pledged securities of $93,586 and $91,636 (amortized cost of $6,121,004 and $5,796,755; allowance for credit losses of $132 at December 31, 2020) | 6,354,822 | 5,913,636 |
Equity securities | 464,126 | 392,318 |
Other investments | 350,016 | 239,067 |
Investments, Total | 7,214,820 | 6,589,443 |
Secured financings receivable | 748,312 | 287,459 |
Property and equipment, net | 445,132 | 442,014 |
Operating lease assets | 265,963 | 291,385 |
Title plants and other indexes | 584,785 | 579,674 |
Deferred income taxes | 14,484 | 18,283 |
Goodwill | 1,378,628 | 1,150,908 |
Other intangible assets, net | 194,474 | 91,833 |
Other assets | 287,887 | 246,857 |
Total assets | 12,795,988 | 11,519,167 |
LIABILITIES AND EQUITY | ||
Deposits | 3,276,949 | 3,337,431 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 56,035 | 58,576 |
Personnel costs | 314,467 | 218,415 |
Pension costs and other retirement plans | 452,093 | 439,390 |
Other | 157,138 | 103,975 |
Accounts payable and accrued liabilities | 979,733 | 820,356 |
Deferred revenue | 271,977 | 252,331 |
Reserve for known and incurred but not reported claims | 1,178,004 | 1,063,044 |
Income taxes payable | 53,784 | 25,475 |
Deferred income taxes | 291,220 | 266,108 |
Operating lease liabilities | 295,762 | 322,776 |
Secured financings payable | 516,155 | 278,412 |
Notes and contracts payable | 1,010,756 | 728,232 |
Total liabilities | 7,874,340 | 7,094,165 |
Commitments and contingencies (Note 21) | ||
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—110,353 shares and 112,476 shares | 1 | 1 |
Additional paid-in capital | 2,214,935 | 2,300,926 |
Retained earnings | 2,655,495 | 2,161,049 |
Accumulated other comprehensive income (loss) | 39,541 | (41,492) |
Total stockholders’ equity | 4,909,972 | 4,420,484 |
Noncontrolling interests | 11,676 | 4,518 |
Total equity | 4,921,648 | 4,425,002 |
Total liabilities and equity | $ 12,795,988 | $ 11,519,167 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Of Financial Position [Abstract] | ||||
Accounts and accrued income receivable, allowances | $ 13,994 | $ 12,676 | [1] | |
Pledged securities included in debt securities | 93,586 | 91,636 | ||
Debt securities, amortized cost | 6,121,004 | 5,796,755 | ||
Debt securities, allowance for credit losses | [2] | $ 132 | $ 0 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | ||
Preferred stock, shares authorized | 500 | 500 | ||
Preferred stock, outstanding | 0 | 0 | ||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||
Common stock, shares authorized | 300,000 | 300,000 | ||
Common stock, shares outstanding | 110,353 | 112,476 | ||
[1] | The balance at beginning of period was determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. See Note 1 Basis of Presentation and Significant Accounting Policies for further information on the recently adopted accounting policy. | |||
[2] | Reflects impairment losses resulting from credit-related factors, which are also included in net realized investment gains/losses in the consolidated statements of income for the year ended December 31, 2020 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Direct premiums and escrow fees | $ 2,987,525 | $ 2,659,273 | $ 2,507,669 |
Agent premiums | 2,759,455 | 2,373,140 | 2,284,906 |
Information and other | 1,013,360 | 787,831 | 781,467 |
Net investment income | 221,290 | 315,413 | 230,289 |
Net realized investment gains (losses) | 105,037 | 66,404 | (56,487) |
Total revenues | 7,086,667 | 6,202,061 | 5,747,844 |
Expenses: | |||
Personnel costs | 1,941,477 | 1,806,005 | 1,748,949 |
Premiums retained by agents | 2,184,420 | 1,874,266 | 1,799,836 |
Other operating expenses | 1,119,108 | 923,298 | 900,208 |
Provision for policy losses and other claims | 579,507 | 446,040 | 452,633 |
Depreciation and amortization | 148,979 | 129,021 | 125,927 |
Impairments on disposition of business (Note 2) | 54,935 | 0 | 0 |
Premium taxes | 77,504 | 70,612 | 69,775 |
Interest | 57,467 | 47,801 | 40,978 |
Total expenses | 6,163,397 | 5,297,043 | 5,138,306 |
Income before income taxes | 923,270 | 905,018 | 609,538 |
Income taxes | 222,774 | 195,170 | 133,640 |
Net income | 700,496 | 709,848 | 475,898 |
Less: Net income attributable to noncontrolling interests | 4,067 | 2,438 | 1,402 |
Net income attributable to the Company | $ 696,429 | $ 707,410 | $ 474,496 |
Net income per share attributable to the Company’s stockholders: | |||
Basic | $ 6.18 | $ 6.26 | $ 4.21 |
Diluted | 6.16 | 6.22 | 4.19 |
Cash dividends declared per share | $ 1.78 | $ 1.68 | $ 1.60 |
Weighted-average common shares outstanding: | |||
Basic | 112,746 | 113,080 | 112,613 |
Diluted | 113,020 | 113,655 | 113,279 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 281,365 | $ 183,591 | $ 171,694 | $ 63,846 | $ 224,606 | $ 188,167 | $ 187,271 | $ 109,804 | $ 700,496 | $ 709,848 | $ 475,898 |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 88,248 | 125,283 | (38,418) | ||||||||
Unrealized gains on debt securities for which credit-related portion was recognized in earnings | 387 | 0 | 0 | ||||||||
Foreign currency translation adjustment | 13,678 | 13,960 | (26,796) | ||||||||
Pension benefit adjustment | (21,280) | (20,161) | 12,680 | ||||||||
Total other comprehensive income (loss), net of tax | 81,033 | 119,082 | (52,534) | ||||||||
Comprehensive income | 781,529 | 828,930 | 423,364 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 4,067 | 2,437 | 1,384 | ||||||||
Comprehensive income attributable to the Company | $ 777,462 | $ 826,493 | $ 421,980 |
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 Income/(loss) | Total stockholders' equity | Noncontrolling Interests |
Balance 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 | 40,550 | (40,550) | |||||
Net income | 475,898 | 474,496 | 474,496 | 1,402 | |||
Dividends on common shares | (178,487) | (178,487) | (178,487) | ||||
Purchase of Company shares | (18,801) | (18,801) | (18,801) | ||||
Purchase of Company shares, shares | (425) | ||||||
Shares issued in connection with share-based compensation | (4,105) | (599) | (3,506) | (4,105) | |||
Shares issued in connection with share-based compensation, shares | 996 | ||||||
Share-based compensation | 41,145 | 41,145 | 41,145 | ||||
Net activity related to noncontrolling interests | (753) | 194 | 194 | (947) | |||
Other comprehensive income (loss) | (52,534) | (52,516) | (52,516) | (18) | |||
Balance 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 | ||||||
Cumulative effect adjustment | Accounting Standards Update 2016-02 | 1,283 | 1,283 | 1,283 | ||||
Net income | 709,848 | 707,410 | 707,410 | 2,438 | |||
Dividends on common shares | (188,440) | (188,440) | (188,440) | ||||
Purchase of Company shares | (2,066) | (2,066) | (2,066) | ||||
Purchase of Company shares, shares | (47) | ||||||
Shares issued in connection with share-based compensation | (1,187) | 2,182 | (3,369) | (1,187) | |||
Shares issued in connection with share-based compensation, shares | 1,027 | ||||||
Share-based compensation | 42,474 | 42,474 | 42,474 | ||||
Net activity related to noncontrolling interests | (1,380) | 46 | 46 | (1,426) | |||
Other comprehensive income (loss) | 119,082 | 119,083 | 119,083 | (1) | |||
Balance 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 | |||||
Net income | $ 700,496 | 696,429 | 696,429 | 4,067 | |||
Dividends on common shares | (198,663) | (198,663) | (198,663) | ||||
Purchase of Company shares | (138,603) | (138,603) | (138,603) | ||||
Purchase of Company shares, shares | (3,191) | ||||||
Shares issued in connection with share-based compensation | (1,489) | 1,831 | (3,320) | (1,489) | |||
Shares issued in connection with share-based compensation, shares | 1,068 | ||||||
Share-based compensation | 50,709 | 50,709 | 50,709 | ||||
Net activity related to noncontrolling interests | 3,163 | 72 | 72 | 3,091 | |||
Other comprehensive income (loss) | 81,033 | 81,033 | 81,033 | ||||
Balance at Dec. 31, 2020 | $ 4,921,648 | $ 1 | $ 2,214,935 | $ 2,655,495 | $ 39,541 | $ 4,909,972 | $ 11,676 |
Balance, Shares at Dec. 31, 2020 | 110,353 | 110,353 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 700,496 | $ 709,848 | $ 475,898 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for policy losses and other claims | 579,507 | 446,040 | 452,633 |
Depreciation and amortization | 148,979 | 129,021 | 125,927 |
Impairments on disposition of business | 54,935 | 0 | 0 |
Amortization of premiums and accretion of discounts on debt securities, net | 39,471 | 26,781 | 26,994 |
Net realized investment (gains) losses | (105,037) | (66,404) | 56,487 |
Share-based compensation | 50,709 | 42,474 | 41,145 |
Equity in earnings of affiliates, net | (5,718) | (2,836) | (2,717) |
Dividends from equity method investments | 6,679 | 5,628 | 4,909 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | |||
Claims paid, including assets acquired, net of recoveries | (471,334) | (415,321) | (450,756) |
Net change in income tax accounts | 29,309 | 16,399 | 42,079 |
(Increase) decrease in accounts and accrued income receivable | (52,870) | (27,240) | 5,264 |
Increase in accounts payable and accrued liabilities | 130,036 | 45,549 | 15,303 |
Increase in deferred revenue | 18,667 | 10,343 | 2,741 |
Other, net | (39,170) | (7,193) | (2,742) |
Cash provided by operating activities | 1,084,659 | 913,089 | 793,165 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash effect of acquisitions/dispositions | (392,541) | (19,674) | (79,171) |
Net decrease (increase) in deposits with banks | 609 | (8,307) | 3,361 |
Purchases of debt and equity securities | (2,862,157) | (2,340,836) | (3,157,893) |
Proceeds from sales of debt and equity securities | 850,057 | 1,331,192 | 1,501,402 |
Proceeds from maturities of debt securities | 1,629,563 | 1,006,755 | 640,558 |
Investments in unconsolidated entities | (80,970) | (101,000) | (1,210) |
Proceeds from sales of investments in unconsolidated entities | 11,910 | 0 | 0 |
Net change in other investments | (10,751) | (3,842) | (5,582) |
Advances under secured financing agreements | (17,584,088) | (8,001,099) | (2,380,878) |
Collections of secured financings receivable | 17,123,235 | 7,789,951 | 2,374,329 |
Capital expenditures | (114,084) | (106,979) | (118,170) |
Proceeds from sales of property and equipment | 13,951 | 647 | 2,630 |
Proceeds from insurance settlement | 123 | 960 | |
Cash used for investing activities | (1,415,143) | (452,232) | (1,220,624) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | (60,482) | (448,752) | 715,617 |
Borrowings under secured financing agreements | 15,442,490 | 7,991,617 | 2,380,976 |
Repayments of secured financings payable | (15,204,747) | (7,789,518) | (2,374,426) |
Net proceeds from issuance of unsecured senior notes | 443,936 | ||
Borrowings under unsecured credit facility | 120,000 | 160,000 | |
Repayments of borrowings under unsecured credit facility | (280,000) | (160,000) | |
Repayments of notes and contracts payable | (5,865) | (5,569) | (5,294) |
Net activity related to noncontrolling interests | (2,653) | (1,154) | (745) |
Net payments in connection with share-based compensation | (1,489) | (1,187) | (4,105) |
Repurchases of Company shares | (138,603) | (2,066) | (18,801) |
Payments of cash dividends | (198,663) | (188,440) | (178,487) |
Cash provided by (used for) financing activities | 113,924 | (445,069) | 514,735 |
Effect of exchange rate changes on cash | 6,067 | 3,042 | (7,373) |
Net (decrease) increase in cash and cash equivalents | (210,493) | 18,830 | 79,903 |
Cash and cash equivalents—Beginning of year | 1,485,959 | 1,467,129 | 1,387,226 |
Cash and cash equivalents—End of year | 1,275,466 | 1,485,959 | 1,467,129 |
SUPPLEMENTAL INFORMATION: | |||
Interest | 53,887 | 46,266 | 39,183 |
Premium taxes | 71,806 | 68,276 | 68,526 |
Income taxes, less refunds of $3,250, $1,604 and $7,255 | $ 193,454 | $ 178,743 | $ 91,745 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Cash Flows [Abstract] | |||
Income taxes, refunds | $ 3,250 | $ 1,604 | $ 7,255 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; and provides warehouse lending services 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. The majority of policy liability is in the western United States, including approximately 59% in California. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 35 states and the District of Columbia. In the third quarter of 2020, the Company initiated a plan to sell the property and casualty insurance business. In the fourth quarter of 2020, the Company, as a result of the sale process, determined to pursue a book transfer rather than a sale. In January 2021, the Company entered into book transfer agreements with two third-party insurers, which will provide qualifying agents and customers of the Company an opportunity to transfer their policies. The Company expects the transfers to be completed by the end of the third quarter of 2022. The Company will seek to non-renew policies that are not transferred. The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Coronavirus Pandemic The coronavirus pandemic and responses to it have created significant volatility, uncertainty and disruption in the broader economy. The extent to which the coronavirus pandemic impacts the Company’s business, operations and financial results will depend on numerous factors that the Company may not be able to accurately predict, including: the duration and scope of the pandemic and restrictions and responses to it; governmental, business and individual actions that have been and will continue to be taken in response to the pandemic; the ongoing impact of the pandemic on economic activity and actions taken in response, including the efficacy of governmental relief efforts; the availability and efficacy of vaccines; the effect on participants in real estate transactions and the demand for the Company’s products and services, including as a result of higher unemployment, business closures and economic uncertainty; and the Company’s ability to sell and provide its services and solutions, including as a result of illness, travel restrictions, governmental closure orders and partial or full closures of business and government offices. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the financial statements, some of which consider the impact or expected impact of the coronavirus pandemic. Actual results could differ from the estimates and assumptions used due to the uncertainty created by the coronavirus pandemic, as well as other factors. Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values are accounted for at cost, less impairment, and are adjusted up or down for any observable price changes. Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. Cash equivalents The Company considers cash equivalents to include all unrestricted short-term investments that have an initial maturity of 90 days or less. Accounts and accrued income receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for credit losses. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the current condition, and future expectations, of the general economy and industry as a whole. Amounts are written off in the period in which they are deemed to be uncollectible. The Company’s policy is to present accrued interest receivable on financial assets measured at amortized cost within accounts and accrued income receivable on the balance sheet. Accrued interest receivable at December 31, 2020 totaled $2.5 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Accounts are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Payments of interest for accounts in non-accrual status are applied under the cost recovery method. Investments Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive income/loss. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. On January 1, 2020, the Company adopted updated accounting guidance that changed the impairment methodology for available-for-sale debt securities. Under the new guidance, when the fair value of an available-for-sale debt security falls below its amortized cost, entities must determine whether the decline in fair value is due to credit-related factors or noncredit-related factors. Declines in fair value that are credit-related are now recorded on the balance sheet through an allowance for credit losses with a corresponding adjustment to earnings and declines that are noncredit-related are recognized through other comprehensive income/loss. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2020, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. For debt securities in an unrealized loss position for which the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security, the Company determines whether the loss is due to credit-related factors or noncredit-related factors. For debt securities in an unrealized loss position for which the losses are primarily due to credit-related factors, the Company’s policy is to recognize the entire loss in earnings. For debt securities in an unrealized loss position for which the losses are determined to be the result of both credit-related and noncredit-related factors, the credit loss is determined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted using the effective interest rate (i.e., purchase yield) and for variable rate securities the interest rate is fixed at the rate in effect at the credit loss measurement date. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. The Company recognized impairment losses, net of reversals, of $3.2 million resulting from credit-related factors for the year ended December 31, 2020. The Company did not recognize any impairment losses related to its debt securities for the years ended December 31, 2019 and 2018. The Company’s policy is to present accrued interest receivable on debt securities within accounts and accrued income receivable on the balance sheet. Accrued interest receivable on debt securities at December 31, 2020 totaled $29.1 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable on debt securities and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Debt securities are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Interest income is recognized on a cash basis for interest payments received on debt securities in non-accrual status. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2020 and 2019, the fair values of such investments totaled $93.6 million and $91.6 million, respectively. See Note 3 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. 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. The Company has elected to measure equity investments in which it does not exercise significant influence over the investee and without readily determinable fair values at cost, less impairment, adjusted up or down for any observable price changes from orderly transactions for the identical or a similar investment of the same issuer. The carrying values of these investments are written down, or impaired, to fair value when a qualitative assessment indicates that the fair value is less than the carrying value. In making the determination as to whether an individual investment is impaired, the Company assesses such qualitative factors as the current and expected financial condition of each relevant entity, the market conditions in the industry in which the entity operates and the entity’s anticipated ability to generate sufficient cash flows. 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 The Company’s secured financings receivable are collateralized by mortgage loans on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. No allowance for credit losses has been recorded due to, among other factors, the Company typically identifying investors in the underlying mortgage loans prior to making advances, the short-term nature of these receivables, the underlying mortgage loans are predominantly Qualified Mortgages (QM) and due to the receivable having no history of significant prior credit losses. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 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 developed for internal use and for use with the Company’s products is amortized over estimated useful lives ranging from 3 to 15 years using the straight-line method. Software development and implementation costs, which include certain payroll-related costs of employees directly associated with developing or implementing software and payments to third parties directly associated with developing or implementing software are capitalized during the application development or implementation stage until the software is ready for its intended use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its capitalized software of $17.6 million for the year ended December 31, 2020. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. Impairment losses on property and equipment for the year ended December 31, 2019 primarily related to impairments of $6.0 million on internally developed software. Impairment losses on property and equipment for the year ended December 31, 2018 were insignificant. Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. In connection with its lease commitments, the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) on leases of commercial real estate and instead accounts for both components as a single lease component for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company excludes any leases with an initial term of 12 months or less from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased using all, or a portion of, a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $1.0 million and $7.5 million for the years ended December 31, 2020 and 2019, respectively. 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 7 Leases. Title plants and other indexes Title plants and other indexes included title plants of $536.3 million and $530.5 million and capitalized real estate data of $48.5 million and $49.2 million at December 31, 2020 and 2019, 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 a qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform a quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and, where appropriate, market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. In the third quarter of 2020, the Company initiated a plan to sell its property and casualty insurance business, which triggered a goodwill impairment test for the property and casualty insurance reporting unit. Based on the results of the goodwill impairment test, the Company determined that the fair value of the property and casualty insurance reporting unit was less than its carrying amount. As a result, the Company recorded an impairment loss to goodwill of $34.2 million for the year ended December 31, 2020. For 2019 and 2018, the Company performed quantitative impairment tests and determined that the fair value of its property and casualty insurance reporting unit exceeded the carrying amount and, therefore, no additional analysis was required. The Company chose to forego qualitative assessments for its title insurance and home warranty reporting units for 2020 and performed quantitative impairment tests. Based on the results of these tests, the Company determined that the fair values for both reporting units exceeded their carrying amounts and, therefore, no additional analysis was required. The results of the Company’s qualitative assessments in 2019 and 2018 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. As a result of the Company’s annual goodwill impairment assessments for its title insurance and home warranty reporting units, the Company did not record any goodwill impairment losses for the years ended December 31, 2020, 2019 or 2018. 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. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its finite-lived intangible assets – customer relationships of $3.2 million for the year ended December 31, 2020. 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 |
Disposition of the Property and
Disposition of the Property and Casualty Insurance Business | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposition of the Property and Casualty Insurance Business | NOTE 2. Disposition of the Property and Casualty Insurance Business: In the third quarter of 2020, the Company initiated a plan to sell its property and casualty insurance business. As a result of this decision, the Company remeasured the assets and liabilities of its property and casualty insurance business at estimated fair value, less costs to sell, and recorded impairment losses to goodwill, other intangible assets, property and equipment and other assets totaling $54.9 million for the year ended December 31, 2020. The impairment losses are included in impairments on disposition of business on the consolidated statements of income and in the operating results of the specialty insurance segment. In the fourth quarter of 2020, the Company, as a result of the sale process, determined to pursue a book transfer rather than a sale. As a result, the assets and liabilities of the property and casualty insurance business, which were previously classified as held for sale, have been reclassified as held and used on the Company’s consolidated balance sheet at December 31, 2020. In January 2021, the Company entered into book transfer agreements with two third party insurers, which will provide qualifying agents and customers of the Company an opportunity to transfer their policies. The Company expects the transfers to be completed by the end of the third quarter of 2022. The Company will seek to non-renew policies that are not transferred. |
Statutory Restrictions on Inves
Statutory Restrictions on Investments and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Statutory Restrictions On Investments And Stockholders' Equity | NOTE 3. Statutory Restrictions on Investments and Stockholders’ Equity: Investments totaling $114.8 million and $111.5 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2020 and 2019, 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, 2020, under such regulations, the maximum amount available to the Company from its insurance subsidiaries in 2021, without prior approval from applicable regulators, was dividends of $555.4 million and loans and advances of $115.6 million. The Company’s principal title insurance subsidiary, First American Title Insurance Company (“FATICO”), maintained total statutory capital and surplus of $1.5 billion FATICO is domiciled in Nebraska and its statutory-based financial statements are prepared in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the state of Nebraska. The state of Nebraska has adopted certain prescribed accounting practices that differ from those found in the NAIC SAP. Specifically, the timing of amounts released from the statutory premium reserve under Nebraska’s required practice differs from NAIC SAP resulting in total statutory capital and surplus that was lower than if reported in accordance with NAIC SAP by $267.5 million and $235.5 million at December 31, 2020 and 2019, respectively. Statutory accounting principles differ in some respects from GAAP, and these differences include, but are not limited to, non-admission of certain assets (principally limitations on deferred tax assets, goodwill, capitalized furniture and equipment, investment in subsidiaries and affiliates, real estate, capitalized software, and premiums and other receivables 90 days past due), reporting of bonds at amortized cost, recognition of credit losses, the lack of recognition of right-of-use assets and lease liabilities 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, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Debt and Equity Securities | NOTE 4. Debt and Equity Securities: Investments in debt securities, classified as available-for-sale, are as follows: Amortized Allowance for credit losses (1) Gross unrealized Estimated (in thousands) gains losses December 31, 2020 U.S. Treasury bonds $ 80,172 $ — $ 778 $ (104 ) $ 80,846 Municipal bonds 1,168,425 — 80,953 (570 ) 1,248,808 Foreign government bonds 194,042 — 6,004 (516 ) 199,530 Governmental agency bonds 254,248 — 9,869 (195 ) 263,922 Governmental agency mortgage-backed securities 3,401,737 — 74,549 (1,668 ) 3,474,618 U.S. corporate debt securities 637,808 (119 ) 43,505 (497 ) 680,697 Foreign corporate debt securities 384,572 (13 ) 22,078 (236 ) 406,401 $ 6,121,004 $ (132 ) $ 237,736 $ (3,786 ) $ 6,354,822 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 (1) Reflects impairment losses resulting from credit-related factors, which are also included in net realized investment gains/losses in the consolidated statements of income for the year ended December 31, 2020. Sales of debt securities resulted in realized gains of $18.2 million, $12.1 million and $3.3 million, realized losses of $3.5 million, $6.1 million and $20.3 million, and proceeds of $758.9 million, $1.1 billion and $1.3 billion for the years ended December 31, 2020, 2019 and 2018, respectively. Investments in debt securities, based on length of time in an unrealized loss position, are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2020 U.S. Treasury bonds $ 7,744 $ (104 ) $ — $ — $ 7,744 $ (104 ) Municipal bonds 74,045 (570 ) — — 74,045 (570 ) Foreign government bonds 67,094 (516 ) — — 67,094 (516 ) Governmental agency bonds 15,353 (195 ) — — 15,353 (195 ) Governmental agency mortgage-backed securities 287,947 (1,089 ) 100,473 (579 ) 388,420 (1,668 ) U.S. corporate debt securities 42,508 (484 ) 1,357 (13 ) 43,865 (497 ) Foreign corporate debt securities 19,042 (232 ) 276 (4 ) 19,318 (236 ) $ 513,733 $ (3,190 ) $ 102,106 $ (596 ) $ 615,839 $ (3,786 ) 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 ) Based on the Company’s review of its debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, it determined that the losses were due to non-credit factors. As such, the Company does not consider these securities to be credit impaired at December 31, 2020. Activity in the allowance for credit losses on debt securities for the year ended December 31, 2020 is summarized as follows: (in thousands) Year Ended Balance at beginning of period $ — Credit losses recognized during the period (7,493 ) Net decreases to credit losses previously recognized 4,300 Reductions for securities sold/matured 3,061 Balance at end of period $ (132 ) In determining credit losses on its debt securities in an unrealized loss position, the Company considers certain factors that may include, among others, severity of the unrealized loss, security type, industry sector, credit rating, profitability and stock performance. Investments in debt securities at December 31, 2020, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 62,485 $ 13,092 $ 1,423 $ 3,172 $ 80,172 Estimated fair value $ 63,022 $ 13,189 $ 1,534 $ 3,101 $ 80,846 Municipal bonds Amortized cost $ 42,368 $ 105,426 $ 452,334 $ 568,297 $ 1,168,425 Estimated fair value $ 42,673 $ 109,698 $ 486,158 $ 610,279 $ 1,248,808 Foreign government bonds Amortized cost $ 52,719 $ 60,252 $ 66,852 $ 14,219 $ 194,042 Estimated fair value $ 52,768 $ 62,151 $ 68,614 $ 15,997 $ 199,530 Governmental agency bonds Amortized cost $ 19,541 $ 132,378 $ 47,928 $ 54,401 $ 254,248 Estimated fair value $ 19,666 $ 136,370 $ 49,274 $ 58,612 $ 263,922 U.S. corporate debt securities Amortized cost $ 13,452 $ 318,682 $ 233,414 $ 72,260 $ 637,808 Estimated fair value $ 13,502 $ 340,056 $ 245,796 $ 81,343 $ 680,697 Foreign corporate debt securities Amortized cost $ 9,845 $ 199,272 $ 131,944 $ 43,511 $ 384,572 Estimated fair value $ 9,903 $ 209,557 $ 139,734 $ 47,207 $ 406,401 Total debt securities, excluding mortgage-backed securities Amortized cost $ 200,410 $ 829,102 $ 933,895 $ 755,860 $ 2,719,267 Estimated fair value $ 201,534 $ 871,021 $ 991,110 $ 816,539 $ 2,880,204 Total mortgage-backed securities Amortized cost $ 3,401,737 Estimated fair value $ 3,474,618 Total debt securities Amortized cost $ 6,121,004 Estimated fair value $ 6,354,822 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, 2020 Preferred stocks $ 22,163 $ 19,479 Common stocks 354,157 444,647 $ 376,320 $ 464,126 December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 Net gains (realized and unrealized) of $48.7 million and $66.7 million and net losses (realized and unrealized) of $38.6 million were recognized for the years ended December 31, 2020, 2019 and 2018, respectively, as a result of changes in the fair values of equity securities. Included in net gains during the years ended December 31, 2020 and 2019 were net unrealized gains of $48.8 million and $52.3 million, respectively, related to equity securities still held at December 31, 2020 and 2019, respectively. The composition of the investment portfolio at December 31, 2020, 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 $ 80,846 100.0 $ — — $ — — $ 80,846 100.0 Municipal bonds 1,205,891 96.5 42,142 3.4 775 0.1 1,248,808 100.0 Foreign government bonds 183,350 91.9 13,221 6.6 2,959 1.5 199,530 100.0 Governmental agency bonds 263,922 100.0 — — — — 263,922 100.0 Governmental agency mortgage-backed securities 3,474,618 100.0 — — — — 3,474,618 100.0 U.S. corporate debt securities 280,026 41.1 324,208 47.7 76,463 11.2 680,697 100.0 Foreign corporate debt securities 148,088 36.4 227,964 56.1 30,349 7.5 406,401 100.0 Total debt securities 5,636,741 88.7 607,535 9.6 110,546 1.7 6,354,822 100.0 Preferred stocks 50 0.2 18,107 93.0 1,322 6.8 19,479 100.0 Total $ 5,636,791 88.4 $ 625,642 9.8 $ 111,868 1.8 $ 6,374,301 100.0 Included in debt securities at December 31, 2020, were bank loans totaling $54.2 million, of which $50.7 million were non-investment grade; high yield corporate debt securities totaling $52.4 million, all of which were non-investment grade; and emerging market debt securities totaling $73.0 million, of which $6.7 million were non-investment grade. The composition of the debt securities portfolio in an unrealized loss position at December 31, 2020, 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 $ 7,744 100.0 $ — — $ — — $ 7,744 100.0 Municipal bonds 70,648 95.4 3,397 4.6 — — 74,045 100.0 Foreign government bonds 67,094 100.0 — — — — 67,094 100.0 Governmental agency bonds 15,353 100.0 — — — — 15,353 100.0 Governmental agency mortgage-backed securities 388,420 100.0 — — — — 388,420 100.0 U.S. corporate debt securities 3,470 7.9 8,496 19.4 31,899 72.7 43,865 100.0 Foreign corporate debt securities 6,419 33.2 4,803 24.9 8,096 41.9 19,318 100.0 Total $ 559,148 90.8 $ 16,696 2.7 $ 39,995 6.5 $ 615,839 100.0 Debt securities in an unrealized loss position at December 31, 2020, included bank loans totaling $37.3 million, of which $34.4 million were non-investment grade; high yield corporate debt securities totaling $5.3 million, all of which were non-investment grade; and emerging market debt securities totaling $0.3 million, all of which 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. |
Allowance for Credit Losses _ A
Allowance for Credit Losses – Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses – Accounts Receivable | NOTE 5. Allowance for Credit Losses – Accounts Receivable: Activity in the allowance for credit losses on accounts receivable for the year ended December 31, 2020 is summarized as follows: (in thousands) Year Ended Balance at beginning of period (1) $ 12,676 Provision for expected credit losses 6,640 Write-offs, net of recoveries (5,322 ) Balance at end of period $ 13,994 (1) The balance at beginning of period was determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. See Note 1 Basis of Presentation and Significant Accounting Policies for further information on the recently adopted accounting policy. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 6. Property and Equipment: Property and equipment is summarized as follows: December 31, 2020 2019 (in thousands) Land $ 23,840 $ 25,302 Buildings 181,401 191,068 Leasehold improvements 68,452 66,471 Furniture and equipment 215,777 222,543 Capitalized software 792,377 718,847 1,281,847 1,224,231 Accumulated depreciation and amortization (836,715 ) (782,217 ) $ 445,132 $ 442,014 In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its capitalized software of $17.6 million for the year ended December 31, 2020. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 7. Leases: Lease assets and liabilities are summarized as follows: December 31. (in thousands) 2020 2019 Classification Assets Operating lease assets $ 265,963 $ 291,385 Operating lease assets Finance lease assets 3,929 4,560 Other assets Total lease assets $ 269,892 $ 295,945 Liabilities Operating lease liabilities $ 295,762 $ 322,776 Operating lease liabilities Finance lease liabilities 4,152 4,814 Notes and contracts payable Total lease liabilities $ 299,914 $ 327,590 The components of lease expense are summarized as follows: Year ended December 31, (in thousands) 2020 2019 Classification Operating lease cost $ 89,200 $ 87,847 Other operating expenses Finance lease cost: Amortization of lease assets 1,632 1,919 Depreciation and amortization Interest on lease liabilities 176 191 Interest Variable lease cost 32,099 31,258 Other operating expenses Short-term lease cost 777 958 Other operating expenses Sublease income (2,929 ) (1,637 ) Information and other Net lease cost $ 120,955 $ 120,536 Total rental expense for all operating leases was $89.4 million for the year ended December 31, 2018. Future minimum lease payments under operating and finance leases with noncancelable lease terms, as of December 31, 2020, are summarized as follows: (in thousands) Operating Leases Finance Leases Total 2021 $ 86,695 $ 1,726 $ 88,421 2022 72,728 1,628 74,356 2023 55,052 767 55,819 2024 40,282 236 40,518 2025 29,690 — 29,690 Thereafter 39,622 — 39,622 Total lease payments 324,069 4,357 328,426 Interest (28,307 ) (205 ) (28,512 ) Present value of lease liabilities $ 295,762 $ 4,152 $ 299,914 Information related to lease terms and discount rates is summarized as follows: December 31, 2020 2019 Weighted-average remaining lease terms (years): Operating leases 4.8 5.4 Finance leases 2.7 3.5 Weighted-average discount rates: Operating leases 3.80 % 4.16 % Finance leases 4.03 % 3.92 % Cash flow information related to lease liabilities is summarized as follows: Year ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 92,762 $ 88,242 Operating cash flows from finance leases $ 176 $ 191 Financing cash flows from finance leases $ 1,658 $ 1,817 Operating lease assets obtained in exchange for new operating lease liabilities $ 53,614 $ 54,809 Finance lease assets obtained in exchange for new finance lease liabilities $ 918 $ 939 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 8. Goodwill: A summary of the changes in the carrying amount of goodwill, by reportable segment, for the years ended December 31, 2020 and 2019, is as follows: Title Specialty Total (in thousands) Balance as of December 31, 2018 Goodwill $ 1,097,401 $ 46,765 $ 1,144,166 Accumulated impairment losses — — — $ 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 Goodwill 1,104,143 46,765 1,150,908 Accumulated impairment losses — — — 1,104,143 46,765 1,150,908 Acquisitions 260,712 — 260,712 Dispositions (358 ) — (358 ) Impairment losses — (34,178 ) (34,178 ) Foreign currency translation 1,544 — 1,544 Balance as of December 31, 2020 Goodwill $ 1,366,041 $ 46,765 $ 1,412,806 Accumulated impairment losses — (34,178 ) (34,178 ) $ 1,366,041 $ 12,587 $ 1,378,628 In the third quarter of 2020, the Company initiated a plan to sell its property and casualty insurance business, which triggered a goodwill impairment test for the property and casualty insurance reporting unit. Based on the results of the goodwill impairment test, the Company determined that the fair value of the property and casualty insurance reporting unit was less than its carrying amount. As a result, the Company recorded an impairment loss to goodwill of $34.2 million for the year ended December 31, 2020. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. For discussion about the Company’s acquisitions in 2020, see Note 22 Business Combinations. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 9. Other Intangible Assets: Other intangible assets are summarized as follows: December 31, 2020 2019 (in thousands) Finite-lived intangible assets: Customer relationships $ 172,851 $ 99,905 Noncompete agreements 38,310 13,150 Trademarks 24,370 10,520 Internal-use software licenses 21,605 21,982 Patents 2,840 2,840 259,976 148,397 Accumulated amortization (82,380 ) (73,449 ) 177,596 74,948 Indefinite-lived intangible assets: Licenses 16,878 16,885 $ 194,474 $ 91,833 Amortization expense for finite-lived intangible assets was $43.3 million, $28.4 million and $30.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. The current year increase in finite-lived intangible assets primarily reflects the impact of acquisitions during 2020. For further discussion about the Company’s acquisitions in 2020, see Note 22 Business Combinations. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its finite-lived intangible assets – customer relationships of $3.2 million for the year ended December 31, 2020. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. Estimated amortization expense for finite-lived intangible assets for the next five years is summarized as follows: Year (in thousands) 2021 $ 41,011 2022 $ 34,455 2023 $ 31,680 2024 $ 24,436 2025 $ 18,317 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrifts [Abstract] | |
Deposits | NOTE 10. Deposits: Deposit accounts are summarized as follows: December 31, 2020 2019 (in thousands, except Escrow accounts: Interest bearing $ 1,650,025 $ 1,831,083 Non-interest bearing 1,438,559 1,337,774 3,088,584 3,168,857 Business checking and other deposits (1) 188,365 168,574 $ 3,276,949 $ 3,337,431 Weighted-average interest rate: Interest bearing escrow accounts 0.13 % 0.17 % (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, 2020 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | NOTE 11. Reserve for Known and Incurred But Not Reported Claims: Activity in the reserve for known and incurred but not reported claims is summarized as follows: December 31, 2020 2019 2018 (in thousands) Balance at beginning of year $ 1,063,044 $ 1,042,679 $ 1,028,933 Provision related to: Current year 531,586 436,362 444,969 Prior years 47,921 9,678 7,664 579,507 446,040 452,633 Payments, net of recoveries, related to: Current year 267,621 227,663 242,617 Prior years 203,713 187,658 208,139 471,334 415,321 450,756 Other 6,787 (10,354 ) 11,869 Balance at end of year $ 1,178,004 $ 1,063,044 $ 1,042,679 Current year payments, net of recoveries, include $250.0 million, $211.4 million and $228.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, that relate to the Company’s specialty insurance segment. Prior year payments, net of recoveries, include $57.2 million, $41.7 million and $56.7 million for the years ended December 31, 2020, 2019 and 2018, respectively, that relate to the Company’s specialty insurance segment. “Other” activity 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, 2020, 2019 and 2018. Payments on reinsured losses for the Company’s property and casualty insurance business totaled $4.3 million, $21.1 million, and $15.3 million, and recoveries totaled $3.5 million, $10.3 million, and $20.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 5.0% for the year ended December 31, 2020 and 4.0% for the years ended December 31, 2019 and 2018, respectively. The current year rate of 5.0% reflects an ultimate loss rate of 4.5% for the current policy year and a net increase in the loss reserve estimates for prior policy years of 0.5%, or $26.2 million. The 2019 rate of 4.0% reflected the ultimate loss rate for policy year 2019 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. To date, the Company has not experienced an increase in title claims as a result of the coronavirus pandemic. Incurred title claims for the year ended December 31, 2020 were lower by 12.4% when compared with the same period of the prior year, and significantly below the Company’s actuarial expectation. However, title claims generally increase when economic conditions deteriorate. Due to the economic uncertainty in connection with the coronavirus pandemic and responses to it, the Company increased its calendar year loss rate from 4.0% in 2019 to 5.0% in 2020. A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) December 31, 2020 December 31, 2019 Known title claims $ 64,601 5.5 % $ 83,382 7.8 % IBNR title claims 1,025,761 87.1 % 903,994 85.1 % Total title claims 1,090,362 92.6 % 987,376 92.9 % Non-title claims 87,642 7.4 % 75,668 7.1 % Total loss reserves $ 1,178,004 100.0 % $ 1,063,044 100.0 % Short-Duration Insurance Contracts Specialty Insurance Segment The following reflects information as of December 31, 2020 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, 2011 to 2019, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2020 Accident Years ended December 31, Total of IBNR liabilities plus expected development on reported Cumulative number of reported Year 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020 claims claims (in thousands) 2011 $ 148,395 149,076 149,768 149,486 149,763 149,552 149,488 149,487 149,486 $ 149,486 $ — 641 2012 157,287 158,981 159,918 160,579 160,517 160,911 161,650 161,634 161,683 — 692 2013 182,858 184,419 185,244 184,826 184,668 184,777 184,606 184,698 28 762 2014 190,985 190,738 191,120 191,025 190,944 191,218 191,288 126 789 2015 221,617 225,754 225,977 226,555 226,882 226,876 347 867 2016 245,859 249,358 251,506 253,258 253,840 960 972 2017 267,392 275,480 278,005 278,979 2,817 1,014 2018 264,088 268,931 270,441 5,663 1,063 2019 251,259 268,064 7,697 1,078 2020 292,725 8,576 1,177 Total $ 2,278,080 * Amounts unaudited. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident Years ended December 31, Year 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020 (in thousands) 2011 $ 123,116 144,367 146,952 148,984 149,358 149,495 149,485 149,486 149,486 $ 149,486 2012 130,623 153,753 157,364 159,181 159,740 160,268 161,304 161,617 161,683 2013 151,377 180,277 182,565 183,957 184,473 184,711 184,552 184,590 2014 156,536 185,686 188,117 189,525 190,398 190,772 191,016 2015 181,445 217,618 223,045 225,041 226,201 226,335 2016 205,857 243,111 248,211 250,867 252,212 2017 220,218 266,653 270,705 272,309 2018 222,966 255,557 262,008 2019 207,342 252,280 2020 242,655 Total $ 2,194,574 All outstanding liabilities before 2011, net of reinsurance 44 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 83,550 * 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, 2020, is as follows: December 31, 2020 (in thousands) Liability for unpaid claims and claim adjustment expenses, net of reinsurance: Specialty insurance $ 83,550 Reinsurance recoverable on unpaid claims: Specialty insurance 2,417 Unallocated claims adjustment expenses: Specialty insurance 1,675 Insurance lines other than short-duration: Title insurance 1,090,362 Liability for unpaid claims and claims adjustment expenses $ 1,178,004 Supplementary information about average historical claims duration for the Company’s specialty insurance segment as of December 31, 2020, 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 82.9 % 13.6 % 1.3 % 0.8 % 0.3 % 0.1 % 0.1 % 0.1 % 0.0 % 0.0 % |
Notes and Contracts Payable
Notes and Contracts Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes and Contracts Payable | NOTE 12. Notes and Contracts Payable: December 31, 2020 2019 (in thousands, except percentages) 4.00% senior unsecured notes due May 15, 2030, effective interest rate of 4.05% $ 450,000 $ — 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, interest rate of 3.30% at December 31, 2019 — 160,000 Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $37,522 and $38,402 at December 31, 2020 and 2019, respectively, fixed interest rate of 5.26% 12,011 15,724 Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.28% and 4.02% at December 31, 2020 and 2019, respectively 6,228 4,918 1,018,239 730,642 Unamortized discount – senior unsecured notes (1,972 ) (358 ) Debt issuance costs – senior unsecured notes (5,511 ) (2,052 ) $ 1,010,756 $ 728,232 The weighted-average interest rate for the Company’s notes and contracts payable was 4.27% and 4.22% at December 31, 2020 and 2019, respectively. In May 2020, the Company issued $450.0 million of 4.00% senior unsecured notes due in 2030. Interest is due semi-annually on May 15 and November 15, beginning November 15, 2020. The Company used a portion of the net proceeds from the sale to repay all borrowings outstanding under its credit facility, increasing the unused capacity thereunder to the full $700.0 million size of the facility. 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, 2020, the Company had no outstanding borrowings under the facility. 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, 2020, 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) 2021 $ 6,367 2022 6,562 2023 255,078 2024 300,232 2025 — Thereafter 450,000 $ 1,018,239 |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2020 | |
Net Investment Income [Abstract] | |
Net Investment Income | NOTE 13. Net Investment Income: The components of net investment income are summarized as follows: Year ended December 31, 2020 2019 2018 (in thousands) Interest on: Cash, cash equivalents and deposits with banks $ 6,311 $ 26,187 $ 21,910 Debt securities 125,877 163,339 138,409 Other investments 63,434 96,812 64,328 Dividends on equity securities 10,819 12,092 12,718 Deferred compensation plan assets 12,732 17,274 (6,399 ) Equity in earnings of affiliates, net 5,718 2,836 2,717 Other 210 612 106 Total investment income 225,101 319,152 233,789 Investment expenses (3,811 ) (3,739 ) (3,500 ) Net investment income $ 221,290 $ 315,413 $ 230,289 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14. Income Taxes: For the years ended December 31, 2020, 2019 and 2018, domestic and foreign pretax income, before noncontrolling interests, were $850.0 million and $73.3 million, $857.2 million and $47.8 million, and 571.9 million and $37.6 million, respectively. Income taxes are summarized as follows: Year ended December 31, 2020 2019 2018 (in thousands) Current: Federal $ 190,539 $ 167,016 $ 101,427 State 27,304 3,514 12,285 Foreign 11,613 8,486 8,990 229,456 179,016 122,702 Deferred: Federal (17,678 ) 11,275 4,381 State 954 1,481 299 Foreign 10,042 3,398 6,258 (6,682 ) 16,154 10,938 $ 222,774 $ 195,170 $ 133,640 The Company’s actual income taxes differ from the amounts computed by applying the federal income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018. A reconciliation of these differences is as follows: Year ended December 31, 2020 2019 2018 (in thousands, except percentages) Taxes calculated at federal rate $ 193,887 21.0 % $ 190,054 21.0 % $ 128,003 21.0 % State taxes, net of federal benefit 22,317 2.4 18,028 2.0 9,941 1.6 Change in liability for tax positions 252 — (13,563 ) (1.5 ) 875 0.1 Foreign income taxed at different rates 5,162 0.6 782 0.1 7,287 1.2 Tax reform impact — — — — (6,804 ) (1.1 ) Unremitted foreign earnings (2,183 ) (0.2 ) 2,588 0.3 (146 ) — Other items, net 3,339 0.3 (2,719 ) (0.3 ) (5,516 ) (0.9 ) $ 222,774 24.1 % $ 195,170 21.6 % $ 133,640 21.9 % The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 24.1%, 21.6%, and 21.9% for the years ended December 31, 2020, 2019, and 2018, 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. In addition, the effective tax rate for the year ended December 31, 2020 reflected the impairment of nondeductible goodwill relating to the Company’s specialty insurance segment and a benefit from foreign tax law changes. The effective tax rate for the year ended December 31, 2019 also reflected the resolution of state tax matters from prior years. The effective tax rate for 2018 also reflected an adjustment made to the Company’s initial 2017 estimates for the comprehensive tax reform legislation known as the Tax Cuts and Jobs Act. The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: December 31, 2020 2019 (in thousands) Deferred tax assets: Deferred revenue $ 9,671 $ 7,982 Employee benefits 95,147 89,986 Bad debt reserves 7,694 5,990 Pension 34,067 26,383 Net operating loss carryforward 10,904 14,067 Foreign tax credit 6,798 6,724 Operating lease liabilities 66,244 72,119 Payroll taxes 11,464 — Other 4,802 3,050 246,791 226,301 Valuation allowance (9,411 ) (9,846 ) 237,380 216,455 Deferred tax liabilities: Depreciable and amortizable assets 271,250 241,799 Claims and related salvage 89,774 104,004 Investments in affiliates 6,604 612 Securities 75,274 39,035 Operating lease assets 59,418 65,121 Unremitted foreign earnings 11,796 13,709 514,116 464,280 Net deferred tax liability $ 276,736 $ 247,825 The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020. The CARES Act allows employers to defer payment of a portion of payroll taxes otherwise due on wages paid between the enactment date and December 31, 2020 and remit the deferred payroll taxes in equal amounts on December 31, 2021 and December 31, 2022. Under this provision of the CARES Act, the Company deferred $49.4 million in payroll taxes for 2020 and has recorded the tax impact of $11.5 million as a deferred tax asset. 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, 2020, 2019 and 2018. The benefits recorded were $3.8 million, $3.2 million and $5.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. At December 31, 2020, 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, 2020, the Company had available net operating loss carryforwards for income tax purposes totaling $68.1 million, consisting of federal, state and foreign losses of $1.5 million, $34.7 million and $31.9 million, respectively. Of the aggregate net operating losses, $30.8 million has an indefinite expiration and the remaining $37.3 million expires at various times beginning in 2021. 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, 2020 and 2019, the Company carried a valuation allowance of $9.4 million and $9.8 million, respectively, against its deferred tax assets. Of this amount, $8.1 million and $8.8 million, respectively, related to net operating losses; the remaining $1.3 million and $1.0 million, respectively, related to other deferred tax assets. The decrease in the overall valuation allowance during 2020 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, 2020, 2019 and 2018, the liability for income taxes associated with uncertain tax positions was $7.2 million, $1.5 million and $13.3 million, respectively. The increase in the liability during 2020 was primarily attributable to positions taken on the Company’s tax returns for prior years, 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 liabilities could be reduced by $2.1 million, $0.4 million, and $3.7 million as of December 31, 2020, 2019 and 2018, respectively, due to offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net liability, if recognized, would favorably affect the Company’s effective income tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 is as follows: Year ended December 31, 2020 2019 2018 (in thousands) Unrecognized tax benefits—beginning balance $ 1,500 $ 13,300 $ 12,800 Gross increases (decreases)—prior period tax positions 5,000 (8,600 ) — Gross increases—current period tax positions 700 800 500 Settlements with taxing authorities — (4,000 ) — Unrecognized tax benefits—ending balance $ 7,200 $ 1,500 $ 13,300 The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. Accrued interest and penalties, net of tax benefits, related to uncertain tax positions were not material as of December 31, 2020 and 2019. As of December 31, 2018, the Company had accrued interest and penalties, net of tax benefits, of $5.8 million related to uncertain tax positions. 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, 2020, the Company is generally no longer subject to U.S. Federal income tax examinations for years prior to 2017, and, for state and non-U.S. jurisdictions, income tax examinations for years prior to 2014. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may increase or decrease within the next 12 months. Any such change may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. The Company records a liability for potential tax assessments based on its estimate of the potential exposure. New tax laws and new interpretations of laws and rulings by 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, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 15. Earnings Per Share: The computation of basic and diluted earnings per share is as follows: Year ended December 31, 2020 2019 2018 (in thousands, except per share data) Numerator Net income attributable to the Company $ 696,429 $ 707,410 $ 474,496 Denominator Basic weighted-average common shares 112,746 113,080 112,613 Effect of dilutive employee stock options and RSUs 274 575 666 Diluted weighted-average common shares 113,020 113,655 113,279 Net income per share attributable to the Company’s stockholders Basic $ 6.18 $ 6.26 $ 4.21 Diluted $ 6.16 $ 6.22 $ 4.19 For the year ended December 31, 2020, 203 thousand RSUs were excluded from the weighted-average diluted common shares outstanding due to their antidilutive effect. For the years ended December 31, 2019 and 2018, RSUs excluded from diluted weighted-average common shares outstanding due to their antidilutive effect were not material. No stock options had a dilutive effect on weighted-average common shares outstanding during the year ended December 31, 2020, as all remaining stock options outstanding were exercised during the fourth quarter of 2019. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 16. Employee Benefit Plans: The First American Financial Corporation 401(k) Savings Plan (the “Savings Plan”) allows for employee-elective contributions up to the maximum amount as determined by the Internal Revenue Code. The Company makes discretionary contributions to the Savings Plan based on profitability, as well as the contributions of participants. The Savings Plan held 1.8 million shares and 2.0 million shares of the Company’s common stock, representing 1.7% and 1.8% of the Company’s total common shares outstanding at December 31, 2020 and 2019, 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, 2020 and 2019, the value of the assets held in the Rabbi Trust of $116.0 million and $103.5 million, respectively, and the unfunded liabilities of $131.3 million and $115.1 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 Certain of the Company’s subsidiaries have separate savings and employee benefit plans. Expenses related to these plans and the Company’s deferred compensation plan are included below under “other plans, net”. The principal components of employee benefit costs are summarized as follows: Year ended December 31, 2020 2019 2018 (in thousands) Expense: Savings plan $ 31,885 $ 60,416 $ 46,208 Unfunded supplemental benefit plans 9,475 8,989 9,248 Other plans, net 19,291 23,917 2,794 $ 60,651 $ 93,322 $ 58,250 The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2020 2019 (in thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 258,793 $ 236,773 Service costs 179 282 Interest costs 7,124 9,116 Actuarial losses 31,137 27,034 Benefits paid (14,448 ) (14,412 ) Projected benefit obligation at end of year 282,785 258,793 Change in plan assets: Contributions 14,448 14,412 Benefits paid (14,448 ) (14,412 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 282,785 $ 258,793 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 282,785 $ 258,793 Amounts recognized in accumulated other comprehensive income/loss: Unrecognized net actuarial loss $ 129,480 $ 103,624 Unrecognized prior service credit (1,071 ) (4,180 ) $ 128,409 $ 99,444 Accumulated benefit obligation at end of year $ 282,785 $ 258,793 Net periodic benefit costs related to the Company’s unfunded supplemental benefit pension plans included the following components: Year ended December 31, 2020 2019 2018 (in thousands) Expense: Service costs $ 179 $ 282 $ 519 Interest costs 7,124 9,116 8,079 Amortization of net actuarial loss 5,281 3,661 4,828 Amortization of prior service credit (3,109 ) (4,070 ) (4,178 ) $ 9,475 $ 8,989 $ 9,248 Net actuarial loss and prior service credit for the unfunded supplemental benefit plans expected to be amortized from accumulated other comprehensive income/loss into net periodic cost over the next fiscal year include an expense of $6.8 million and a credit of $1.3 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, 2020, 2019 and 2018, were as follows: Year ended December 31, 2020 2019 2018 Discount rates: Projected benefit obligation 3.27 % 4.32 % 3.61 % Service cost 3.71 % 4.55 % 3.78 % Interest cost 2.86 % 4.00 % 3.23 % The weighted-average discount rate assumption used to determine the projected benefit obligation for the Company’s unfunded supplemental benefits plans at December 31, 2020 and 2019, was as follows: December 31, 2020 2019 Discount rate 2.49 % 3.27 % 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 $15.4 million to its unfunded supplemental benefit plans during 2021. Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in thousands) 2021 $ 15,417 2022 $ 16,675 2023 $ 16,941 2024 $ 17,047 2025 $ 17,095 Five years thereafter $ 80,839 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17. 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, 2020 and 2019: (in thousands) Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Debt securities: U.S. Treasury bonds $ 80,846 $ — $ 80,846 $ — Municipal bonds 1,248,808 — 1,248,808 — Foreign government bonds 199,530 — 199,530 — Governmental agency bonds 263,922 — 263,922 — Governmental agency mortgage-backed securities 3,474,618 — 3,474,618 — U.S. corporate debt securities 680,697 — 680,697 — Foreign corporate debt securities 406,401 — 406,401 — 6,354,822 — 6,354,822 — Equity securities: Preferred stocks 19,479 19,479 — — Common stocks 444,647 444,647 — — 464,126 464,126 — — Total assets $ 6,818,948 $ 464,126 $ 6,354,822 $ — (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 $ — There were no transfers between Levels 1, 2 and 3 during the years ended December 31, 2020 and 2019. Transfers into or out of the Level 3 category occur when unobservable inputs become either more, or less, significant to the fair value measurement. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. Financial instruments not measured at fair value In estimating the fair values of its financial instruments not measured at fair value, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents approximates fair value due to the short-term maturity of these investments. Deposits with banks The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. Notes receivable, net The fair value of notes receivable, net is estimated based on current market rates offered for notes with similar maturities and credit quality. Secured financings receivable The carrying amount of secured financings receivable approximates fair value due to the short-term nature of these assets. Secured financings payable The carrying amount of secured financings payable approximates fair value due to the short-term nature of these liabilities. Notes and contracts payable The fair value of notes and contracts payable is estimated based on current rates offered for debt of similar remaining maturities. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2020 and 2019: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Cash and cash equivalents $ 1,275,466 $ 1,275,466 $ 1,275,466 $ — $ — Deposits with banks $ 45,856 $ 45,947 $ 6,092 $ 39,855 $ — Notes receivable, net $ 29,912 $ 30,279 $ — $ — $ 30,279 Secured financings receivable $ 748,312 $ 748,312 $ — $ 748,312 $ — Liabilities: Secured financings payable $ 516,155 $ 516,155 $ — $ 516,155 $ — Notes and contracts payable $ 1,010,756 $ 1,131,356 $ — $ 1,125,128 $ 6,228 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 Assets measured at fair value on a non-recurring basis The Company measures the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount may not be recoverable. These assets generally include goodwill, title plants and other indexes, other intangible assets, property and equipment and cost and equity-method investments. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, the Company recognized impairment losses of $34.2 million, $17.6 million and $3.2 million to goodwill, property and equipment and other intangible assets, respectively, for the year ended December 31, 2020. The impairment charges were determined based on fair values utilizing Level 3 unobservable inputs. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | NOTE 18. Share-Based Compensation Plans: The First American Financial Corporation 2020 Incentive Compensation Plan (the “Incentive Compensation Plan”), effective January 22, 2020, permits the granting of stock options, stock appreciation rights, restricted stock, RSUs, 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, 2020, 3.5 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 523,000, 391,000 and 363,000 shares issued in connection with this plan for the years ended December 31, 2020, 2019 and 2018, respectively. At December 31, 2020, there were 1.1 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, 2020 2019 2018 (in thousands) Expense: RSUs $ 45,387 $ 38,445 $ 37,597 Employee stock purchase plan 5,322 4,029 3,548 $ 50,709 $ 42,474 $ 41,145 The following table summarizes RSU activity for the year ended December 31, 2020: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2019 1,152 $ 49.25 Granted during 2020 817 63.14 Vested during 2020 (1,024 ) 52.93 Forfeited during 2020 (40 ) 57.97 Unvested at December 31, 2020 905 $ 57.24 As of December 31, 2020, there was $27.4 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 $63.14, $51.46 and $54.80 for the years ended December 31, 2020, 2019 and 2018, respectively. The total fair value of shares distributed for the years ended December 31, 2020, 2019 and 2018 was $56.0 million, $50.5 million and $54.5 million, respectively. At December 31, 2020, 1.1 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, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 19. Stockholders’ Equity: In November 2020, the Company announced that its board of directors had approved a new share repurchase plan, which authorizes the repurchase of up to $300.0 million of the Company’s common stock and of which $242.0 million remained as of December 31, 2020. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. Also, in November 2020, the Company terminated its prior share repurchase plan which authorized the repurchase of up to $250.0 million of the Company’s common stock. Cumulatively, during the year ended December 31, 2020, the Company repurchased and retired, under both the current and prior authorizations, 3.2 million shares of its common stock for a total purchase price of $138.6 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | NOTE 20. Accumulated Other Comprehensive Income (Loss) (“AOCI”): The following table presents a summary of the changes in each component of AOCI for the years ended December 31, 2020, 2019 and 2018: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance 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 ) Change in unrealized gains (losses) on debt securities 116,558 — — 116,558 — 116,558 Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings 511 — — 511 — 511 Change in foreign currency translation adjustment — 13,945 — 13,945 — 13,945 Net actuarial loss — — (31,137 ) (31,137 ) — (31,137 ) Amortization of net actuarial loss — — 5,281 5,281 — 5,281 Amortization of prior service credit — — (3,109 ) (3,109 ) — (3,109 ) Tax effect (28,434 ) (267 ) 7,685 (21,016 ) — (21,016 ) Balance at December 31, 2020 $ 171,752 $ (37,990 ) $ (94,221 ) $ 39,541 $ 1 $ 39,542 The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2020, 2019 and 2018: Unrealized Foreign Pension Total (in thousands) Year ended December 31, 2020 Pretax change before reclassifications $ 123,930 $ 13,945 $ (31,137 ) $ 106,738 Reclassifications out of AOCI (6,861 ) — 2,172 (4,689 ) Tax effect (28,434 ) (267 ) 7,685 (21,016 ) Total other comprehensive income (loss), net of tax $ 88,635 $ 13,678 $ (21,280 ) $ 81,033 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 ) The following table presents the effects 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) 2020 2019 2018 Affected line items Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of debt securities $ 14,435 $ $ (14,249 ) Net realized investment gains (losses) Credit losses recognized on debt securities (7,574 ) — — Net realized investment gains (losses) Pretax total $ 6,861 $ 3,772 $ (14,249 ) Tax effect $ (1,666 ) $ (894 ) $ 3,226 Pension benefit adjustment (1): Amortization of net actuarial loss $ (5,281 ) $ (3,661 ) $ (4,828 ) Other operating expenses Amortization of prior service credit 3,109 4,070 4,178 Other operating expenses Pretax total $ (2,172 ) $ 409 $ (650 ) Tax effect $ 576 $ (109 ) $ 170 (1) Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | NOTE 21. Litigation and Regulatory Contingencies: The Company and its subsidiaries are parties to a number of 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 performed debt collection practices, 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: • Antao 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, • Seymour vs. First American Title Insurance Company, et al., filed on January 12, 2021 and pending in the Superior Court of the State of California, County of Santa Barbara, • 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 vs. 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; however, the appellate court has remanded the Wilmot action back for certification of a subclass. 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 consumer class actions and a securities class action in connection with 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 financial 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, results of operations or cash flows. In addition, the Company and its Board of Directors and certain executives are parties to a shareholder derivative action, Hollett vs. Gilmore, et al., filed on November 25, 2020 and pending in the United States District Court for the Central District of California. The allegations arise out of the information security incident that occurred during the second quarter of 2019 and the resulting legal proceedings and disclosures made at the time of the incident. While the ultimate disposition is not yet determinable, the Company does not believe it will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 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, will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 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 exams and investigations 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. Some of these exams or investigations could, however, result in changes to the Company’s business practices which could ultimately have a material adverse impact on the Company’s financial condition, results of operations or cash flows. Furthermore, these exams and investigations include two investigations initiated in connection with the information security incident that occurred during the second quarter of 2019, one being conducted by the Securities and Exchange Commission (“SEC”) enforcement staff and the other by the New York Department of Financial Services. The SEC enforcement staff is questioning the adequacy of disclosures the Company made at the time of the incident and the adequacy of its disclosure controls. In September 2020, the Company received a Wells Notice informing the Company that the enforcement staff has made a preliminary determination to recommend a filing of an enforcement action by the SEC against the Company. The Company believes that its disclosures and disclosure controls complied with the securities laws and has availed itself of the opportunity to provide a response to convince the SEC that an enforcement action is inappropriate under the circumstances. The New York Department of Financial Services has alleged violations of its cyber security requirements for financial services companies and has filed a statement of charges and scheduled an administrative hearing in connection therewith. While the ultimate dispositions of the SEC and New York Department of Financial Services matters are 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. 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 $15.7 million, which is based on the exchange rate as of, and includes interest charges through, December 31, 2020. 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. Accordingly, the Company filed a notice of appeal with the Canadian taxing authority in March 2020. 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. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 22. Business Combinations: During the year ended December 31, 2020, the Company completed acquisitions for an aggregate purchase price of $397.6 million, which were funded through cash on hand and additional borrowings of $120.0 million under the Company’s credit facility. For acquisitions in which the Company has not completed its purchase price allocation, preliminary fair value estimates for the assets acquired and liabilities assumed have been recorded. These acquisitions have been included in the Company’s title insurance and services segment. Current year acquisitions included the purchase of a company that provides document, eClose and fulfillment technology for the mortgage industry on March 2, 2020 for a purchase price of $350.0 million. In connection with the purchase, the Company recorded goodwill, property and equipment and other intangible assets of $216.4 million, $19.0 million and $129.0 million, respectively. The Company recognized revenues of $69.6 million and pre-tax income of $4.5 million since the acquisition date, related to the acquiree, during the year ended December 31, 2020. The Company expects $121.9 million of the goodwill recorded upon acquisition to be deductible for tax purposes. |
Segment Financial Information
Segment Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Financial Information | NOTE 23. 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; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; and provides warehouse lending services 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. The majority of policy liability is in the western United States, including approximately 59% in California. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 35 states and the District of Columbia. In the third quarter of 2020, the Company initiated a plan to sell the property and casualty insurance business . In the fourth quarter of 2020, the Company, as a result of the sale process, determined to pursue a book transfer rather than a sale . I n January 2021, the Company entered into book transfer agreements with two third-party insurers , which will provide qualifying agents and customers of the Company an opportunity to transfer their policies. The Company expects the transfers to be completed by the end of the third quarter of 2022. The Company will seek to non-renew policies that are not transferred . The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2020, 2019 and 2018, is as follows: Revenues Depreciation Equity in affiliates, net Income (loss) Assets Investments method affiliates Capital (in thousands) 2020 Title Insurance and Services $ 6,535,674 $ 141,292 $ 5,718 $ 1,025,506 $ 11,922,133 $ 63,757 $ 116,559 Specialty Insurance 532,423 7,535 — (25,284 ) 645,339 — 4,014 Corporate 20,760 152 — (76,952 ) 737,127 — — Eliminations (2,190 ) — — — (508,611 ) — — $ 7,086,667 $ 148,979 $ 5,718 $ 923,270 $ 12,795,988 $ 63,757 $ 120,573 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 Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues 2020 (in thousands) Title Insurance and Services $ 2,489,992 $ 2,759,455 $ 1,000,805 $ 199,228 $ 86,194 $ 6,535,674 Specialty Insurance 497,533 — 13,439 9,123 12,328 532,423 $ 2,987,525 $ 2,759,455 $ 1,014,244 $ 208,351 $ 98,522 $ 7,068,097 2019 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 Domestic and foreign revenues from external customers, by segment, for the years ended December 31, 2020, 2019 and 2018, are as follows: Year Ended December 31, 2020 2019 2018 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 6,192,659 $ 341,710 $ 5,374,624 $ 300,685 $ 4,984,617 $ 298,059 Specialty Insurance 532,423 — 505,890 — 469,342 — $ 6,725,082 $ 341,710 $ 5,880,514 $ 300,685 $ 5,453,959 $ 298,059 Domestic and foreign long-lived assets, by segment, as of December 31, 2020, 2019 and 2018, are as follows: December 31, 2020 2019 2018 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 956,569 $ 59,504 $ 982,397 $ 65,625 $ 994,023 $ 61,615 Specialty Insurance 5,718 — 7,479 — 65,644 — $ 962,287 $ 59,504 $ 989,876 $ 65,625 $ 1,059,667 $ 61,615 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES QUARTERLY FINANCIAL DATA (Unaudited) Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2020 Revenues $ 1,412,943 $ 1,608,729 $ 1,913,721 $ 2,151,274 Income before income taxes $ 72,324 $ 225,295 $ 243,371 $ 382,280 Net income $ 63,846 $ 171,694 $ 183,591 $ 281,365 Net income attributable to noncontrolling interests $ 642 $ 1,039 $ 1,312 $ 1,074 Net income attributable to the Company $ 63,204 $ 170,655 $ 182,279 $ 280,291 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.56 $ 1.52 $ 1.62 $ 2.50 Diluted $ 0.55 $ 1.52 $ 1.62 $ 2.49 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 (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, 2020 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Summary of Investments-Other Than Investments in Related Parties | FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES (in thousands) December 31, 2020 Column A Column B Column C Column D Type of investment Cost Market value Amount at which Deposits with banks: Consolidated $ 45,856 $ 45,947 $ 45,856 Debt securities: U.S. Treasury bonds Consolidated $ 80,172 $ 80,846 $ 80,846 Municipal bonds Consolidated $ 1,168,425 $ 1,248,808 $ 1,248,808 Foreign government bonds Consolidated $ 194,042 $ 199,530 $ 199,530 Governmental agency bonds Consolidated $ 254,248 $ 263,922 $ 263,922 Governmental agency mortgage-backed securities Consolidated $ 3,401,737 $ 3,474,618 $ 3,474,618 U.S. corporate debt securities Consolidated $ 637,808 $ 680,697 $ 680,697 Foreign corporate debt securities Consolidated $ 384,572 $ 406,401 $ 406,401 Total debt securities: Consolidated $ 6,121,004 $ 6,354,822 $ 6,354,822 Equity securities: Consolidated $ 376,320 $ 464,126 $ 464,126 Notes receivable, net: Consolidated $ 29,912 $ 30,279 $ 29,912 Other investments: Consolidated $ 320,104 $ 320,104 (1) $ 320,104 Total investments: Consolidated $ 6,893,196 $ 7,215,278 $ 7,214,820 (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, 2020 | |
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, 2020 2019 Assets Cash and cash equivalents $ 206,933 $ 341,691 Dividends receivable 30,000 — Due from subsidiaries, net 284,929 47,798 Income taxes receivable 951 10,967 Investment in subsidiaries 5,945,820 5,215,056 Other investments 94,001 77,000 Deferred income taxes 14,484 18,283 Other assets 120,718 109,228 $ 6,697,836 $ 5,820,023 Liabilities and Equity Accounts payable and other accrued liabilities $ 22,871 $ 19,455 Pension costs and other retirement plans 415,796 376,393 Income taxes payable 53,784 25,475 Deferred income taxes 291,220 266,108 Notes and contracts payable 992,517 707,590 1,776,188 1,395,021 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—110,353 shares and 112,476 shares 1 1 Additional paid-in capital 2,214,935 2,300,926 Retained earnings 2,655,495 2,161,049 Accumulated other comprehensive income (loss) 39,541 (41,492 ) Total stockholders’ equity 4,909,972 4,420,484 Noncontrolling interests 11,676 4,518 Total equity 4,921,648 4,425,002 $ 6,697,836 $ 5,820,023 SCHEDULE II 2 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF INCOME (in thousands) Year Ended December 31, 2020 2019 2018 Revenues: Dividends from subsidiaries $ 603,900 $ 384,799 $ 394,742 Other income (losses) 14,017 21,660 (2,986 ) Net realized investment gains 6,515 — — 624,432 406,459 391,756 Expenses: Other expenses 68,830 66,984 40,415 Income before income taxes and equity in undistributed earnings of subsidiaries 555,602 339,475 351,341 Income taxes 134,060 73,209 77,031 Equity in undistributed earnings of subsidiaries 278,954 443,582 201,588 Net income 700,496 709,848 475,898 Less: Net income attributable to noncontrolling interests 4,067 2,438 1,402 Net income attributable to the Company $ 696,429 $ 707,410 $ 474,496 SCHEDULE II 3 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Year Ended December 31, 2020 2019 2018 Net income $ 700,496 $ 709,848 $ 475,898 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities 88,248 125,283 (38,418 ) Unrealized gains on debt securities for which credit-related portion was recognized in earnings 387 — — Foreign currency translation adjustment 13,678 13,960 (26,796 ) Pension benefit adjustment (21,280 ) (20,161 ) 12,680 Total other comprehensive income (loss), net of tax 81,033 119,082 (52,534 ) Comprehensive income 781,529 828,930 423,364 Less: Comprehensive income attributable to noncontrolling interests 4,067 2,437 1,384 Comprehensive income attributable to the Company $ 777,462 $ 826,493 $ 421,980 SCHEDULE II 4 OF 5 FIRST AMERICAN FINANCIAL CORPORATION (Parent Company) CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2020 2019 2018 Cash flows from operating activities: Cash provided by operating activities $ 600,217 $ 356,116 $ 381,516 Cash flows from investing activities: Net cash effect of acquisitions — (14,845 ) (67,061 ) Net payments to subsidiaries (668,068 ) (58,193 ) (19,676 ) Investments in unconsolidated entities (19,000 ) (77,000 ) — Net change in other investments 63 — — Proceeds from sales of property and equipment 6,849 — — Cash used for investing activities (680,156 ) (150,038 ) (86,737 ) Cash flows from financing activities: Net proceeds from issuance of unsecured senior notes 443,936 — — Borrowings under unsecured credit facility 120,000 160,000 — Repayments of borrowings under unsecured credit facility (280,000 ) (160,000 ) — Net payments in connection with share-based compensation (1,489 ) (1,187 ) (4,105 ) Repurchases of Company shares (138,603 ) (2,066 ) (18,801 ) Payments of cash dividends (198,663 ) (188,440 ) (178,487 ) Cash used for financing activities (54,819 ) (191,693 ) (201,393 ) Net (decrease) increase in cash and cash equivalents (134,758 ) 14,385 93,386 Cash and cash equivalents—Beginning of period 341,691 327,306 233,920 Cash and cash equivalents—End of period $ 206,933 $ 341,691 $ 327,306 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 $573.9 million, $384.8 million and $394.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | SCHEDULE III 1 OF 2 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 policy Claims Deferred 2020 Title Insurance and Services $ 206 $ 1,090,362 $ 5,400 Specialty Insurance 35,075 87,642 266,577 Total $ 35,281 $ 1,178,004 $ 271,977 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 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 2020 Title Insurance and Services $ 5,249,447 $ 285,422 $ 262,456 $ — $ 999,701 $ — Specialty Insurance 497,533 21,451 317,051 (2,148 ) 83,104 519,946 Corporate — 20,760 — — 37,187 — Eliminations — (1,306 ) — — (884 ) — Total $ 5,746,980 $ 326,327 $ 579,507 $ (2,148 ) $ 1,119,108 $ 519,946 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 (1) Includes net investment income and net realized investment gains (losses). |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 $ 5,264,868 $ 15,839 $ 418 $ 5,249,447 0.0 % 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 % Specialty Insurance 2020 $ 507,414 $ 9,881 $ — $ 497,533 0.0 % 2019 $ 482,820 $ 11,603 $ — $ 471,217 0.0 % 2018 $ 466,245 $ 11,527 $ — $ 454,718 0.0 % |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Column A Column B Column C Column D Column E Additions Description Balance at Charged to Charged Deductions Balance Reserve deducted from accounts receivable: Consolidated $ 12,676 $ 6,640 $ — $ 5,322 (1) $ 13,994 Reserve for known and incurred but not reported claims: Consolidated $ 1,063,044 $ 579,507 $ 6,787 $ 471,334 (2) $ 1,178,004 Reserve deducted from notes receivable: Consolidated $ 343 $ — $ — $ — $ 343 Reserve deducted from deferred income taxes: Consolidated $ 9,846 $ — $ — $ 435 $ 9,411 (1) (2) SCHEDULE V 2 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 $ 14,470 $ 4,125 $ — $ 5,919 (1) $ 12,676 Reserve for known and incurred but not reported claims: Consolidated $ 1,042,679 $ 446,040 $ (10,354 ) $ 415,321 (2) $ 1,063,044 Reserve deducted from notes receivable: Consolidated $ 343 $ — $ — $ — $ 343 Reserve deducted from deferred income taxes: Consolidated $ 10,621 $ — $ — $ 775 $ 9,846 (1) (2) SCHEDULE V 3 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 $ 14,771 $ 5,039 $ — $ 5,340 (1) $ 14,470 Reserve for known and incurred but not reported claims: Consolidated $ 1,028,933 $ 452,633 $ 11,869 $ 450,756 (2) $ 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 (1) (2) |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; and provides warehouse lending services 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. The majority of policy liability is in the western United States, including approximately 59% in California. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 35 states and the District of Columbia. In the third quarter of 2020, the Company initiated a plan to sell the property and casualty insurance business. In the fourth quarter of 2020, the Company, as a result of the sale process, determined to pursue a book transfer rather than a sale. In January 2021, the Company entered into book transfer agreements with two third-party insurers, which will provide qualifying agents and customers of the Company an opportunity to transfer their policies. The Company expects the transfers to be completed by the end of the third quarter of 2022. The Company will seek to non-renew policies that are not transferred. The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. |
Coronavirus Pandemic | Coronavirus Pandemic The coronavirus pandemic and responses to it have created significant volatility, uncertainty and disruption in the broader economy. The extent to which the coronavirus pandemic impacts the Company’s business, operations and financial results will depend on numerous factors that the Company may not be able to accurately predict, including: the duration and scope of the pandemic and restrictions and responses to it; governmental, business and individual actions that have been and will continue to be taken in response to the pandemic; the ongoing impact of the pandemic on economic activity and actions taken in response, including the efficacy of governmental relief efforts; the availability and efficacy of vaccines; the effect on participants in real estate transactions and the demand for the Company’s products and services, including as a result of higher unemployment, business closures and economic uncertainty; and the Company’s ability to sell and provide its services and solutions, including as a result of illness, travel restrictions, governmental closure orders and partial or full closures of business and government offices. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the financial statements, some of which consider the impact or expected impact of the coronavirus pandemic. Actual results could differ from the estimates and assumptions used due to the uncertainty created by the coronavirus pandemic, as well as other factors. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method of accounting. Equity investments in which the Company does not exercise significant influence over the investee and without readily determinable fair values are accounted for at cost, less impairment, and are adjusted up or down for any observable price changes. |
Use of Estimates | Use of estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. |
Cash Equivalents | Cash equivalents The Company considers cash equivalents to include all unrestricted short-term investments that have an initial maturity of 90 days or less. |
Accounts and Accrued Income Receivable | Accounts and accrued income receivable Accounts receivable are generally due within thirty days and are recorded net of an allowance for credit losses. The Company considers accounts outstanding longer than the contractual payment terms as past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to the Company and the current condition, and future expectations, of the general economy and industry as a whole. Amounts are written off in the period in which they are deemed to be uncollectible. The Company’s policy is to present accrued interest receivable on financial assets measured at amortized cost within accounts and accrued income receivable on the balance sheet. Accrued interest receivable at December 31, 2020 totaled $2.5 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Accounts are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Payments of interest for accounts in non-accrual status are applied under the cost recovery method. |
Investments | Investments Deposits with banks Deposits with banks are short-term investments with initial maturities of generally more than 90 days. |
Debt and Equity Securities | Debt securities Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, foreign governments, various U.S. and foreign corporations, certain state and political subdivisions and mortgage-backed securities. The Company classifies its debt securities as available-for-sale with unrealized gains or losses recorded as a component of accumulated other comprehensive income/loss. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities are recognized under the effective yield method and are included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt securities are determined on a first-in, first-out basis. On January 1, 2020, the Company adopted updated accounting guidance that changed the impairment methodology for available-for-sale debt securities. Under the new guidance, when the fair value of an available-for-sale debt security falls below its amortized cost, entities must determine whether the decline in fair value is due to credit-related factors or noncredit-related factors. Declines in fair value that are credit-related are now recorded on the balance sheet through an allowance for credit losses with a corresponding adjustment to earnings and declines that are noncredit-related are recognized through other comprehensive income/loss. If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2020, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell any debt securities before recovery of their amortized cost basis. For debt securities in an unrealized loss position for which the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security, the Company determines whether the loss is due to credit-related factors or noncredit-related factors. For debt securities in an unrealized loss position for which the losses are primarily due to credit-related factors, the Company’s policy is to recognize the entire loss in earnings. For debt securities in an unrealized loss position for which the losses are determined to be the result of both credit-related and noncredit-related factors, the credit loss is determined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted using the effective interest rate (i.e., purchase yield) and for variable rate securities the interest rate is fixed at the rate in effect at the credit loss measurement date. Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. The Company recognized impairment losses, net of reversals, of $3.2 million resulting from credit-related factors for the year ended December 31, 2020. The Company did not recognize any impairment losses related to its debt securities for the years ended December 31, 2019 and 2018. The Company’s policy is to present accrued interest receivable on debt securities within accounts and accrued income receivable on the balance sheet. Accrued interest receivable on debt securities at December 31, 2020 totaled $29.1 million. The Company has elected to not measure an allowance for credit losses for accrued interest receivable on debt securities and maintains a policy that all receivables ninety days past due are written off as credit loss expense. Debt securities are placed on non-accrual status, and accrual of interest is discontinued, when management determines that collectibility of contractual amounts is not reasonably assured. Interest income is recognized on a cash basis for interest payments received on debt securities in non-accrual status. The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2020 and 2019, the fair values of such investments totaled $93.6 million and $91.6 million, respectively. See Note 3 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. 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. The Company has elected to measure equity investments in which it does not exercise significant influence over the investee and without readily determinable fair values at cost, less impairment, adjusted up or down for any observable price changes from orderly transactions for the identical or a similar investment of the same issuer. The carrying values of these investments are written down, or impaired, to fair value when a qualitative assessment indicates that the fair value is less than the carrying value. In making the determination as to whether an individual investment is impaired, the Company assesses such qualitative factors as the current and expected financial condition of each relevant entity, the market conditions in the industry in which the entity operates and the entity’s anticipated ability to generate sufficient cash flows. 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 The Company’s secured financings receivable are collateralized by mortgage loans on residential real estate. Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. No allowance for credit losses has been recorded due to, among other factors, the Company typically identifying investors in the underlying mortgage loans prior to making advances, the short-term nature of these receivables, the underlying mortgage loans are predominantly Qualified Mortgages (QM) and due to the receivable having no history of significant prior credit losses. Interest income is recorded on an accrual basis during the period the principal balance remains outstanding. Secured financings payable reflect borrowings under secured warehouse lending facilities with several banking institutions. Repayment of the warehouse borrowing occurs upon sale of the mortgage loan to investors as noted above. Interest expense is recorded during the period the borrowing remains outstanding. |
Property and Equipment | Property and equipment Buildings and furniture and equipment are initially recorded at cost and are generally depreciated using the straight-line method over estimated useful lives ranging from 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 developed for internal use and for use with the Company’s products is amortized over estimated useful lives ranging from 3 to 15 years using the straight-line method. Software development and implementation costs, which include certain payroll-related costs of employees directly associated with developing or implementing software and payments to third parties directly associated with developing or implementing software are capitalized during the application development or implementation stage until the software is ready for its intended use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its capitalized software of $17.6 million for the year ended December 31, 2020. See Note 2 Disposition of the Property and Casualty Insurance Business for further information on the disposition of the business. Impairment losses on property and equipment for the year ended December 31, 2019 primarily related to impairments of $6.0 million on internally developed software. Impairment losses on property and equipment for the year ended December 31, 2018 were insignificant. |
Leases | Leases The Company is, generally, a lessee in leases of commercial real estate, including office buildings and office space, and also certain equipment. Most of the Company’s leases of commercial real estate include one or more options to renew, with renewal terms that can extend the lease term from one to five years, and some leases include options to terminate the lease within the first year. In connection with its lease commitments, the Company recognizes a lease liability equal to the present value of future lease payments discounted using its incremental borrowing rate and recognizes a lease asset equal to the lease liability, adjusted for any prepaid or accrued lease payments, lease incentives and initial direct costs. As most of the Company’s leases do not provide an implicit discount rate, the Company applies its incremental borrowing rate, which is based on the information available as of the commencement date, in determining the present value of its lease payments. The Company does not separately account for nonlease components (e.g., common-area maintenance costs) from the associated lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) on leases of commercial real estate and instead accounts for both components as a single lease component for purposes of recognizing lease assets and liabilities. Variable lease costs, which include any variable lease and nonlease components and rents that vary based on changes to an index or rate, are expensed as incurred. The Company excludes any leases with an initial term of 12 months or less from recognition on the balance sheet and for which lease expense is recognized on a straight-line basis over the lease term. Management recognizes an impairment loss when the carrying amount of a lease asset is not recoverable and exceeds its fair value. The carrying amount is considered not recoverable if it exceeds the sum of the undiscounted future cash flows that are directly associated with, and that are expected to arise as a result of, the use and eventual disposition of the lease asset. An impairment loss is measured as the amount by which the carrying amount of a lease asset exceeds its fair value. Impairment losses related to the Company’s commercial real estate may occur if the Company ceased using all, or a portion of, a leased property while a contractual obligation remains. Impairment losses related to commercial real estate leases were $1.0 million and $7.5 million for the years ended December 31, 2020 and 2019, respectively. 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 7 Leases. |
Title plants and other indexes | Title plants and other indexes Title plants and other indexes included title plants of $536.3 million and $530.5 million and capitalized real estate data of $48.5 million and $49.2 million at December 31, 2020 and 2019, 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 a qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform a quantitative impairment test. If, however, the more likely than not threshold is met, the Company will perform a quantitative test as required and discussed below. Management’s quantitative impairment testing compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and, where appropriate, market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss recognized limited to the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes expected cash flows and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the reporting unit. The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. In the third quarter of 2020, the Company initiated a plan to sell its property and casualty insurance business, which triggered a goodwill impairment test for the property and casualty insurance reporting unit. Based on the results of the goodwill impairment test, the Company determined that the fair value of the property and casualty insurance reporting unit was less than its carrying amount. As a result, the Company recorded an impairment loss to goodwill of $34.2 million for the year ended December 31, 2020. For 2019 and 2018, the Company performed quantitative impairment tests and determined that the fair value of its property and casualty insurance reporting unit exceeded the carrying amount and, therefore, no additional analysis was required. The Company chose to forego qualitative assessments for its title insurance and home warranty reporting units for 2020 and performed quantitative impairment tests. Based on the results of these tests, the Company determined that the fair values for both reporting units exceeded their carrying amounts and, therefore, no additional analysis was required. The results of the Company’s qualitative assessments in 2019 and 2018 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. As a result of the Company’s annual goodwill impairment assessments for its title insurance and home warranty reporting units, the Company did not record any goodwill impairment losses for the years ended December 31, 2020, 2019 or 2018. |
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. In connection with the Company’s decision in the third quarter of 2020 to sell the property and casualty insurance business, it recognized impairment losses on its finite-lived intangible assets – customer relationships of $3.2 million for the year ended December 31, 2020. |
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 by adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. The volume and timing of title insurance claims are subject to cyclical influences from both the real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often the lender must realize an actual loss, or at least be likely to realize an actual loss, for a title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that the sensitivity of claims to external conditions in the real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss rates exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. The 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 is based on the Company’s right to invoice for the value of the product or service delivered, (3) the associated variable consideration is allocated entirely to wholly unsatisfied performance obligations or (4) immateriality. The Company also applies the practical expedient allowed under accounting guidance whereby it can disregard the impact to the transaction price of the effects of a significant financing component for arrangements where the Company expects the period between delivery of the product or service and customer payment to be one year or less. In addition, the Company applies the practical expedient whereby it recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period for the asset that the Company otherwise would have recognized is one year or less. The Company records a contract asset, and recognizes revenue, upon delivery of certain products related to the closing of a real estate transaction where the Company’s right to payment is subject to the closing of the transaction. The Company records a contract liability for payments received in advance of revenue recognition for certain products or services. Contract assets and liabilities were not material at December 31, 2020 and 2019. Revenues recognized during the years ended December 31, 2020, 2019 and 2018 that were included in contract liabilities at the beginning of the respective period were not material. For information about the Company’s revenues disaggregated by reportable segment see Note 23 Segment Financial Information. |
Premium Taxes | Premium taxes Title insurance, 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 income/loss. Plan obligations are measured annually as of December 31. The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income 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 income/loss as a separate component of stockholders’ equity. For those foreign subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with remeasurement gains and losses included in other operating expenses. Gains and losses resulting from foreign currency transactions are included within other operating expenses. |
Reinsurance | Reinsurance The Company’s title insurance business assumes and cedes large title insurance risks through reinsurance 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, 2020. Payments and recoveries on reinsured losses for the Company’s title insurance business were immaterial during the years ended December 31, 2020, 2019 and 2018. For information related to payments and recoveries on reinsured losses for the Company’s property and casualty insurance business see Note 11 Reserve for Known and Incurred But Not Reported Claims. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board (“FASB”) issued updated guidance 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 on a prospective basis, 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 loss 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. The adoption of this guidance on a modified-retrospective basis , effective January 1, 2020, did not have a material impact, except for the disclosure requirements, on the Company’s consolidated financial statements . See Note 1 Basis of Presentation and Significant Accounting Policies , Note 4 Debt and Equity Securities and Note 5 Allowance for Credit Losses – Accounts Receivable for further information on the Company’s credit losses. |
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. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Allowance for credit losses (1) Gross unrealized Estimated (in thousands) gains losses December 31, 2020 U.S. Treasury bonds $ 80,172 $ — $ 778 $ (104 ) $ 80,846 Municipal bonds 1,168,425 — 80,953 (570 ) 1,248,808 Foreign government bonds 194,042 — 6,004 (516 ) 199,530 Governmental agency bonds 254,248 — 9,869 (195 ) 263,922 Governmental agency mortgage-backed securities 3,401,737 — 74,549 (1,668 ) 3,474,618 U.S. corporate debt securities 637,808 (119 ) 43,505 (497 ) 680,697 Foreign corporate debt securities 384,572 (13 ) 22,078 (236 ) 406,401 $ 6,121,004 $ (132 ) $ 237,736 $ (3,786 ) $ 6,354,822 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 (1) Reflects impairment losses resulting from credit-related factors, which are also included in net realized investment gains/losses in the consolidated statements of income for the year ended December 31, 2020. |
Gross Unrealized Losses on Investments in Debt Securities | Investments in debt securities, based on length of time in an unrealized loss position, are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2020 U.S. Treasury bonds $ 7,744 $ (104 ) $ — $ — $ 7,744 $ (104 ) Municipal bonds 74,045 (570 ) — — 74,045 (570 ) Foreign government bonds 67,094 (516 ) — — 67,094 (516 ) Governmental agency bonds 15,353 (195 ) — — 15,353 (195 ) Governmental agency mortgage-backed securities 287,947 (1,089 ) 100,473 (579 ) 388,420 (1,668 ) U.S. corporate debt securities 42,508 (484 ) 1,357 (13 ) 43,865 (497 ) Foreign corporate debt securities 19,042 (232 ) 276 (4 ) 19,318 (236 ) $ 513,733 $ (3,190 ) $ 102,106 $ (596 ) $ 615,839 $ (3,786 ) 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 ) |
Rollforward of Allowance for Credit Losses for Investments in Debt Securities | Activity in the allowance for credit losses on debt securities for the year ended December 31, 2020 is summarized as follows: (in thousands) Year Ended Balance at beginning of period $ — Credit losses recognized during the period (7,493 ) Net decreases to credit losses previously recognized 4,300 Reductions for securities sold/matured 3,061 Balance at end of period $ (132 ) |
Investments in Debt Securities by Contractual Maturity | Investments in debt securities at December 31, 2020, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 62,485 $ 13,092 $ 1,423 $ 3,172 $ 80,172 Estimated fair value $ 63,022 $ 13,189 $ 1,534 $ 3,101 $ 80,846 Municipal bonds Amortized cost $ 42,368 $ 105,426 $ 452,334 $ 568,297 $ 1,168,425 Estimated fair value $ 42,673 $ 109,698 $ 486,158 $ 610,279 $ 1,248,808 Foreign government bonds Amortized cost $ 52,719 $ 60,252 $ 66,852 $ 14,219 $ 194,042 Estimated fair value $ 52,768 $ 62,151 $ 68,614 $ 15,997 $ 199,530 Governmental agency bonds Amortized cost $ 19,541 $ 132,378 $ 47,928 $ 54,401 $ 254,248 Estimated fair value $ 19,666 $ 136,370 $ 49,274 $ 58,612 $ 263,922 U.S. corporate debt securities Amortized cost $ 13,452 $ 318,682 $ 233,414 $ 72,260 $ 637,808 Estimated fair value $ 13,502 $ 340,056 $ 245,796 $ 81,343 $ 680,697 Foreign corporate debt securities Amortized cost $ 9,845 $ 199,272 $ 131,944 $ 43,511 $ 384,572 Estimated fair value $ 9,903 $ 209,557 $ 139,734 $ 47,207 $ 406,401 Total debt securities, excluding mortgage-backed securities Amortized cost $ 200,410 $ 829,102 $ 933,895 $ 755,860 $ 2,719,267 Estimated fair value $ 201,534 $ 871,021 $ 991,110 $ 816,539 $ 2,880,204 Total mortgage-backed securities Amortized cost $ 3,401,737 Estimated fair value $ 3,474,618 Total debt securities Amortized cost $ 6,121,004 Estimated fair value $ 6,354,822 |
Investments in Equity Securities | Investments in equity securities are as follows: Cost Estimated (in thousands) December 31, 2020 Preferred stocks $ 22,163 $ 19,479 Common stocks 354,157 444,647 $ 376,320 $ 464,126 December 31, 2019 Preferred stocks $ 21,849 $ 18,094 Common stocks 328,110 374,224 $ 349,959 $ 392,318 |
Composition of Investment Portfolio by Credit Rating Agencies | The composition of the investment portfolio at December 31, 2020, 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 $ 80,846 100.0 $ — — $ — — $ 80,846 100.0 Municipal bonds 1,205,891 96.5 42,142 3.4 775 0.1 1,248,808 100.0 Foreign government bonds 183,350 91.9 13,221 6.6 2,959 1.5 199,530 100.0 Governmental agency bonds 263,922 100.0 — — — — 263,922 100.0 Governmental agency mortgage-backed securities 3,474,618 100.0 — — — — 3,474,618 100.0 U.S. corporate debt securities 280,026 41.1 324,208 47.7 76,463 11.2 680,697 100.0 Foreign corporate debt securities 148,088 36.4 227,964 56.1 30,349 7.5 406,401 100.0 Total debt securities 5,636,741 88.7 607,535 9.6 110,546 1.7 6,354,822 100.0 Preferred stocks 50 0.2 18,107 93.0 1,322 6.8 19,479 100.0 Total $ 5,636,791 88.4 $ 625,642 9.8 $ 111,868 1.8 $ 6,374,301 100.0 |
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, 2020, 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 $ 7,744 100.0 $ — — $ — — $ 7,744 100.0 Municipal bonds 70,648 95.4 3,397 4.6 — — 74,045 100.0 Foreign government bonds 67,094 100.0 — — — — 67,094 100.0 Governmental agency bonds 15,353 100.0 — — — — 15,353 100.0 Governmental agency mortgage-backed securities 388,420 100.0 — — — — 388,420 100.0 U.S. corporate debt securities 3,470 7.9 8,496 19.4 31,899 72.7 43,865 100.0 Foreign corporate debt securities 6,419 33.2 4,803 24.9 8,096 41.9 19,318 100.0 Total $ 559,148 90.8 $ 16,696 2.7 $ 39,995 6.5 $ 615,839 100.0 |
Allowance for Credit Losses __2
Allowance for Credit Losses – Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses on Accounts Receivables | Activity in the allowance for credit losses on accounts receivable for the year ended December 31, 2020 is summarized as follows: (in thousands) Year Ended Balance at beginning of period (1) $ 12,676 Provision for expected credit losses 6,640 Write-offs, net of recoveries (5,322 ) Balance at end of period $ 13,994 (1) The balance at beginning of period was determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. See Note 1 Basis of Presentation and Significant Accounting Policies for further information on the recently adopted accounting policy. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is summarized as follows: December 31, 2020 2019 (in thousands) Land $ 23,840 $ 25,302 Buildings 181,401 191,068 Leasehold improvements 68,452 66,471 Furniture and equipment 215,777 222,543 Capitalized software 792,377 718,847 1,281,847 1,224,231 Accumulated depreciation and amortization (836,715 ) (782,217 ) $ 445,132 $ 442,014 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | Lease assets and liabilities are summarized as follows: December 31. (in thousands) 2020 2019 Classification Assets Operating lease assets $ 265,963 $ 291,385 Operating lease assets Finance lease assets 3,929 4,560 Other assets Total lease assets $ 269,892 $ 295,945 Liabilities Operating lease liabilities $ 295,762 $ 322,776 Operating lease liabilities Finance lease liabilities 4,152 4,814 Notes and contracts payable Total lease liabilities $ 299,914 $ 327,590 |
Summary of Components of Lease Expense | The components of lease expense are summarized as follows: Year ended December 31, (in thousands) 2020 2019 Classification Operating lease cost $ 89,200 $ 87,847 Other operating expenses Finance lease cost: Amortization of lease assets 1,632 1,919 Depreciation and amortization Interest on lease liabilities 176 191 Interest Variable lease cost 32,099 31,258 Other operating expenses Short-term lease cost 777 958 Other operating expenses Sublease income (2,929 ) (1,637 ) Information and other Net lease cost $ 120,955 $ 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, 2020, are summarized as follows: (in thousands) Operating Leases Finance Leases Total 2021 $ 86,695 $ 1,726 $ 88,421 2022 72,728 1,628 74,356 2023 55,052 767 55,819 2024 40,282 236 40,518 2025 29,690 — 29,690 Thereafter 39,622 — 39,622 Total lease payments 324,069 4,357 328,426 Interest (28,307 ) (205 ) (28,512 ) Present value of lease liabilities $ 295,762 $ 4,152 $ 299,914 |
Schedule of Information Related to Lease Terms and Discount Rate | Information related to lease terms and discount rates is summarized as follows: December 31, 2020 2019 Weighted-average remaining lease terms (years): Operating leases 4.8 5.4 Finance leases 2.7 3.5 Weighted-average discount rates: Operating leases 3.80 % 4.16 % Finance leases 4.03 % 3.92 % |
Schedule of Cash Flow Information Related to Lease Liabilities | Cash flow information related to lease liabilities is summarized as follows: Year ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 92,762 $ 88,242 Operating cash flows from finance leases $ 176 $ 191 Financing cash flows from finance leases $ 1,658 $ 1,817 Operating lease assets obtained in exchange for new operating lease liabilities $ 53,614 $ 54,809 Finance lease assets obtained in exchange for new finance lease liabilities $ 918 $ 939 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, is as follows: Title Specialty Total (in thousands) Balance as of December 31, 2018 Goodwill $ 1,097,401 $ 46,765 $ 1,144,166 Accumulated impairment losses — — — $ 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 Goodwill 1,104,143 46,765 1,150,908 Accumulated impairment losses — — — 1,104,143 46,765 1,150,908 Acquisitions 260,712 — 260,712 Dispositions (358 ) — (358 ) Impairment losses — (34,178 ) (34,178 ) Foreign currency translation 1,544 — 1,544 Balance as of December 31, 2020 Goodwill $ 1,366,041 $ 46,765 $ 1,412,806 Accumulated impairment losses — (34,178 ) (34,178 ) $ 1,366,041 $ 12,587 $ 1,378,628 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Gross Excluding Goodwill [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets are summarized as follows: December 31, 2020 2019 (in thousands) Finite-lived intangible assets: Customer relationships $ 172,851 $ 99,905 Noncompete agreements 38,310 13,150 Trademarks 24,370 10,520 Internal-use software licenses 21,605 21,982 Patents 2,840 2,840 259,976 148,397 Accumulated amortization (82,380 ) (73,449 ) 177,596 74,948 Indefinite-lived intangible assets: Licenses 16,878 16,885 $ 194,474 $ 91,833 |
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) 2021 $ 41,011 2022 $ 34,455 2023 $ 31,680 2024 $ 24,436 2025 $ 18,317 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrifts [Abstract] | |
Escrow, Savings and Investment Certificate Accounts | Deposit accounts are summarized as follows: December 31, 2020 2019 (in thousands, except Escrow accounts: Interest bearing $ 1,650,025 $ 1,831,083 Non-interest bearing 1,438,559 1,337,774 3,088,584 3,168,857 Business checking and other deposits (1) 188,365 168,574 $ 3,276,949 $ 3,337,431 Weighted-average interest rate: Interest bearing escrow accounts 0.13 % 0.17 % (1) Business checking and other deposits primarily reflect non-interest bearing accounts. |
Reserve for Known and Incurre_2
Reserve for Known and Incurred but Not Reported Claims (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in thousands) Balance at beginning of year $ 1,063,044 $ 1,042,679 $ 1,028,933 Provision related to: Current year 531,586 436,362 444,969 Prior years 47,921 9,678 7,664 579,507 446,040 452,633 Payments, net of recoveries, related to: Current year 267,621 227,663 242,617 Prior years 203,713 187,658 208,139 471,334 415,321 450,756 Other 6,787 (10,354 ) 11,869 Balance at end of year $ 1,178,004 $ 1,063,044 $ 1,042,679 A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) December 31, 2020 December 31, 2019 Known title claims $ 64,601 5.5 % $ 83,382 7.8 % IBNR title claims 1,025,761 87.1 % 903,994 85.1 % Total title claims 1,090,362 92.6 % 987,376 92.9 % Non-title claims 87,642 7.4 % 75,668 7.1 % Total loss reserves $ 1,178,004 100.0 % $ 1,063,044 100.0 % |
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, 2011 to 2019, is presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2020 Accident Years ended December 31, Total of IBNR liabilities plus expected development on reported Cumulative number of reported Year 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020 claims claims (in thousands) 2011 $ 148,395 149,076 149,768 149,486 149,763 149,552 149,488 149,487 149,486 $ 149,486 $ — 641 2012 157,287 158,981 159,918 160,579 160,517 160,911 161,650 161,634 161,683 — 692 2013 182,858 184,419 185,244 184,826 184,668 184,777 184,606 184,698 28 762 2014 190,985 190,738 191,120 191,025 190,944 191,218 191,288 126 789 2015 221,617 225,754 225,977 226,555 226,882 226,876 347 867 2016 245,859 249,358 251,506 253,258 253,840 960 972 2017 267,392 275,480 278,005 278,979 2,817 1,014 2018 264,088 268,931 270,441 5,663 1,063 2019 251,259 268,064 7,697 1,078 2020 292,725 8,576 1,177 Total $ 2,278,080 * Amounts unaudited. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance Accident Years ended December 31, Year 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020 (in thousands) 2011 $ 123,116 144,367 146,952 148,984 149,358 149,495 149,485 149,486 149,486 $ 149,486 2012 130,623 153,753 157,364 159,181 159,740 160,268 161,304 161,617 161,683 2013 151,377 180,277 182,565 183,957 184,473 184,711 184,552 184,590 2014 156,536 185,686 188,117 189,525 190,398 190,772 191,016 2015 181,445 217,618 223,045 225,041 226,201 226,335 2016 205,857 243,111 248,211 250,867 252,212 2017 220,218 266,653 270,705 272,309 2018 222,966 255,557 262,008 2019 207,342 252,280 2020 242,655 Total $ 2,194,574 All outstanding liabilities before 2011, net of reinsurance 44 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 83,550 * 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, 2020, is as follows: December 31, 2020 (in thousands) Liability for unpaid claims and claim adjustment expenses, net of reinsurance: Specialty insurance $ 83,550 Reinsurance recoverable on unpaid claims: Specialty insurance 2,417 Unallocated claims adjustment expenses: Specialty insurance 1,675 Insurance lines other than short-duration: Title insurance 1,090,362 Liability for unpaid claims and claims adjustment expenses $ 1,178,004 |
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, 2020, 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 82.9 % 13.6 % 1.3 % 0.8 % 0.3 % 0.1 % 0.1 % 0.1 % 0.0 % 0.0 % |
Notes and Contracts Payable (Ta
Notes and Contracts Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes and Contracts Payable | December 31, 2020 2019 (in thousands, except percentages) 4.00% senior unsecured notes due May 15, 2030, effective interest rate of 4.05% $ 450,000 $ — 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, interest rate of 3.30% at December 31, 2019 — 160,000 Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $37,522 and $38,402 at December 31, 2020 and 2019, respectively, fixed interest rate of 5.26% 12,011 15,724 Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.28% and 4.02% at December 31, 2020 and 2019, respectively 6,228 4,918 1,018,239 730,642 Unamortized discount – senior unsecured notes (1,972 ) (358 ) Debt issuance costs – senior unsecured notes (5,511 ) (2,052 ) $ 1,010,756 $ 728,232 |
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) 2021 $ 6,367 2022 6,562 2023 255,078 2024 300,232 2025 — Thereafter 450,000 $ 1,018,239 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Investment Income [Abstract] | |
Schedule of Net Investment Income | The components of net investment income are summarized as follows: Year ended December 31, 2020 2019 2018 (in thousands) Interest on: Cash, cash equivalents and deposits with banks $ 6,311 $ 26,187 $ 21,910 Debt securities 125,877 163,339 138,409 Other investments 63,434 96,812 64,328 Dividends on equity securities 10,819 12,092 12,718 Deferred compensation plan assets 12,732 17,274 (6,399 ) Equity in earnings of affiliates, net 5,718 2,836 2,717 Other 210 612 106 Total investment income 225,101 319,152 233,789 Investment expenses (3,811 ) (3,739 ) (3,500 ) Net investment income $ 221,290 $ 315,413 $ 230,289 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Expenses | Income taxes are summarized as follows: Year ended December 31, 2020 2019 2018 (in thousands) Current: Federal $ 190,539 $ 167,016 $ 101,427 State 27,304 3,514 12,285 Foreign 11,613 8,486 8,990 229,456 179,016 122,702 Deferred: Federal (17,678 ) 11,275 4,381 State 954 1,481 299 Foreign 10,042 3,398 6,258 (6,682 ) 16,154 10,938 $ 222,774 $ 195,170 $ 133,640 |
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% for the years ended December 31, 2020, 2019 and 2018. A reconciliation of these differences is as follows: Year ended December 31, 2020 2019 2018 (in thousands, except percentages) Taxes calculated at federal rate $ 193,887 21.0 % $ 190,054 21.0 % $ 128,003 21.0 % State taxes, net of federal benefit 22,317 2.4 18,028 2.0 9,941 1.6 Change in liability for tax positions 252 — (13,563 ) (1.5 ) 875 0.1 Foreign income taxed at different rates 5,162 0.6 782 0.1 7,287 1.2 Tax reform impact — — — — (6,804 ) (1.1 ) Unremitted foreign earnings (2,183 ) (0.2 ) 2,588 0.3 (146 ) — Other items, net 3,339 0.3 (2,719 ) (0.3 ) (5,516 ) (0.9 ) $ 222,774 24.1 % $ 195,170 21.6 % $ 133,640 21.9 % |
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, 2020 2019 (in thousands) Deferred tax assets: Deferred revenue $ 9,671 $ 7,982 Employee benefits 95,147 89,986 Bad debt reserves 7,694 5,990 Pension 34,067 26,383 Net operating loss carryforward 10,904 14,067 Foreign tax credit 6,798 6,724 Operating lease liabilities 66,244 72,119 Payroll taxes 11,464 — Other 4,802 3,050 246,791 226,301 Valuation allowance (9,411 ) (9,846 ) 237,380 216,455 Deferred tax liabilities: Depreciable and amortizable assets 271,250 241,799 Claims and related salvage 89,774 104,004 Investments in affiliates 6,604 612 Securities 75,274 39,035 Operating lease assets 59,418 65,121 Unremitted foreign earnings 11,796 13,709 514,116 464,280 Net deferred tax liability $ 276,736 $ 247,825 |
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 is as follows: Year ended December 31, 2020 2019 2018 (in thousands) Unrecognized tax benefits—beginning balance $ 1,500 $ 13,300 $ 12,800 Gross increases (decreases)—prior period tax positions 5,000 (8,600 ) — Gross increases—current period tax positions 700 800 500 Settlements with taxing authorities — (4,000 ) — Unrecognized tax benefits—ending balance $ 7,200 $ 1,500 $ 13,300 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in thousands, except per share data) Numerator Net income attributable to the Company $ 696,429 $ 707,410 $ 474,496 Denominator Basic weighted-average common shares 112,746 113,080 112,613 Effect of dilutive employee stock options and RSUs 274 575 666 Diluted weighted-average common shares 113,020 113,655 113,279 Net income per share attributable to the Company’s stockholders Basic $ 6.18 $ 6.26 $ 4.21 Diluted $ 6.16 $ 6.22 $ 4.19 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in thousands) Expense: Savings plan $ 31,885 $ 60,416 $ 46,208 Unfunded supplemental benefit plans 9,475 8,989 9,248 Other plans, net 19,291 23,917 2,794 $ 60,651 $ 93,322 $ 58,250 |
Company's Benefit Obligations and Funded Status | The following table summarizes the benefit obligations and funded status associated with the Company’s unfunded supplemental benefit plans: December 31, 2020 2019 (in thousands) Change in projected benefit obligation: Benefit obligation at beginning of year $ 258,793 $ 236,773 Service costs 179 282 Interest costs 7,124 9,116 Actuarial losses 31,137 27,034 Benefits paid (14,448 ) (14,412 ) Projected benefit obligation at end of year 282,785 258,793 Change in plan assets: Contributions 14,448 14,412 Benefits paid (14,448 ) (14,412 ) Fair value of plan assets at end of year — — Reconciliation of funded status: Unfunded status of the plans $ 282,785 $ 258,793 Amounts recognized in the consolidated balance sheet: Accrued benefit liability $ 282,785 $ 258,793 Amounts recognized in accumulated other comprehensive income/loss: Unrecognized net actuarial loss $ 129,480 $ 103,624 Unrecognized prior service credit (1,071 ) (4,180 ) $ 128,409 $ 99,444 Accumulated benefit obligation at end of year $ 282,785 $ 258,793 |
Net Periodic Benefit Costs | Net periodic benefit costs related to the Company’s unfunded supplemental benefit pension plans included the following components: Year ended December 31, 2020 2019 2018 (in thousands) Expense: Service costs $ 179 $ 282 $ 519 Interest costs 7,124 9,116 8,079 Amortization of net actuarial loss 5,281 3,661 4,828 Amortization of prior service credit (3,109 ) (4,070 ) (4,178 ) $ 9,475 $ 8,989 $ 9,248 |
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, 2020, 2019 and 2018, were as follows: Year ended December 31, 2020 2019 2018 Discount rates: Projected benefit obligation 3.27 % 4.32 % 3.61 % Service cost 3.71 % 4.55 % 3.78 % Interest cost 2.86 % 4.00 % 3.23 % The weighted-average discount rate assumption used to determine the projected benefit obligation for the Company’s unfunded supplemental benefits plans at December 31, 2020 and 2019, was as follows: December 31, 2020 2019 Discount rate 2.49 % 3.27 % |
Benefit Payments | Benefit payments, which reflect expected future service, as appropriate, are expected to be made as follows: Year (in thousands) 2021 $ 15,417 2022 $ 16,675 2023 $ 16,941 2024 $ 17,047 2025 $ 17,095 Five years thereafter $ 80,839 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: (in thousands) Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Debt securities: U.S. Treasury bonds $ 80,846 $ — $ 80,846 $ — Municipal bonds 1,248,808 — 1,248,808 — Foreign government bonds 199,530 — 199,530 — Governmental agency bonds 263,922 — 263,922 — Governmental agency mortgage-backed securities 3,474,618 — 3,474,618 — U.S. corporate debt securities 680,697 — 680,697 — Foreign corporate debt securities 406,401 — 406,401 — 6,354,822 — 6,354,822 — Equity securities: Preferred stocks 19,479 19,479 — — Common stocks 444,647 444,647 — — 464,126 464,126 — — Total assets $ 6,818,948 $ 464,126 $ 6,354,822 $ — (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 $ — |
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, 2020 and 2019: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2020 Assets: Cash and cash equivalents $ 1,275,466 $ 1,275,466 $ 1,275,466 $ — $ — Deposits with banks $ 45,856 $ 45,947 $ 6,092 $ 39,855 $ — Notes receivable, net $ 29,912 $ 30,279 $ — $ — $ 30,279 Secured financings receivable $ 748,312 $ 748,312 $ — $ 748,312 $ — Liabilities: Secured financings payable $ 516,155 $ 516,155 $ — $ 516,155 $ — Notes and contracts payable $ 1,010,756 $ 1,131,356 $ — $ 1,125,128 $ 6,228 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 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 (in thousands) Expense: RSUs $ 45,387 $ 38,445 $ 37,597 Employee stock purchase plan 5,322 4,029 3,548 $ 50,709 $ 42,474 $ 41,145 |
Summary of RSU Activity | The following table summarizes RSU activity for the year ended December 31, 2020: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average Unvested at December 31, 2019 1,152 $ 49.25 Granted during 2020 817 63.14 Vested during 2020 (1,024 ) 52.93 Forfeited during 2020 (40 ) 57.97 Unvested at December 31, 2020 905 $ 57.24 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: First American Financial Corporation NCI (in thousands) Unrealized Foreign Pension Accumulated Accumulated Balance 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 ) Change in unrealized gains (losses) on debt securities 116,558 — — 116,558 — 116,558 Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings 511 — — 511 — 511 Change in foreign currency translation adjustment — 13,945 — 13,945 — 13,945 Net actuarial loss — — (31,137 ) (31,137 ) — (31,137 ) Amortization of net actuarial loss — — 5,281 5,281 — 5,281 Amortization of prior service credit — — (3,109 ) (3,109 ) — (3,109 ) Tax effect (28,434 ) (267 ) 7,685 (21,016 ) — (21,016 ) Balance at December 31, 2020 $ 171,752 $ (37,990 ) $ (94,221 ) $ 39,541 $ 1 $ 39,542 |
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, 2020, 2019 and 2018: Unrealized Foreign Pension Total (in thousands) Year ended December 31, 2020 Pretax change before reclassifications $ 123,930 $ 13,945 $ (31,137 ) $ 106,738 Reclassifications out of AOCI (6,861 ) — 2,172 (4,689 ) Tax effect (28,434 ) (267 ) 7,685 (21,016 ) Total other comprehensive income (loss), net of tax $ 88,635 $ 13,678 $ (21,280 ) $ 81,033 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 ) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the reclassifications out of AOCI on the respective line items in the consolidated statements of income: Amounts reclassified from AOCI Year ended December 31, (in thousands) 2020 2019 2018 Affected line items Unrealized gains (losses) on debt securities: Net realized gains (losses) on sales of debt securities $ 14,435 $ $ (14,249 ) Net realized investment gains (losses) Credit losses recognized on debt securities (7,574 ) — — Net realized investment gains (losses) Pretax total $ 6,861 $ 3,772 $ (14,249 ) Tax effect $ (1,666 ) $ (894 ) $ 3,226 Pension benefit adjustment (1): Amortization of net actuarial loss $ (5,281 ) $ (3,661 ) $ (4,828 ) Other operating expenses Amortization of prior service credit 3,109 4,070 4,178 Other operating expenses Pretax total $ (2,172 ) $ 409 $ (650 ) Tax effect $ 576 $ (109 ) $ 170 (1) Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details. |
Segment Financial Information (
Segment Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2020, 2019 and 2018, is as follows: Revenues Depreciation Equity in affiliates, net Income (loss) Assets Investments method affiliates Capital (in thousands) 2020 Title Insurance and Services $ 6,535,674 $ 141,292 $ 5,718 $ 1,025,506 $ 11,922,133 $ 63,757 $ 116,559 Specialty Insurance 532,423 7,535 — (25,284 ) 645,339 — 4,014 Corporate 20,760 152 — (76,952 ) 737,127 — — Eliminations (2,190 ) — — — (508,611 ) — — $ 7,086,667 $ 148,979 $ 5,718 $ 923,270 $ 12,795,988 $ 63,757 $ 120,573 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 Direct premiums and escrow fees Agent premiums Information and other Net investment income Net realized investment gains (losses) Total Revenues 2020 (in thousands) Title Insurance and Services $ 2,489,992 $ 2,759,455 $ 1,000,805 $ 199,228 $ 86,194 $ 6,535,674 Specialty Insurance 497,533 — 13,439 9,123 12,328 532,423 $ 2,987,525 $ 2,759,455 $ 1,014,244 $ 208,351 $ 98,522 $ 7,068,097 2019 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 |
Schedule Of Revenues From External Customers And Long-Lived Assets | Domestic and foreign revenues from external customers, by segment, for the years ended December 31, 2020, 2019 and 2018, are as follows: Year Ended December 31, 2020 2019 2018 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 6,192,659 $ 341,710 $ 5,374,624 $ 300,685 $ 4,984,617 $ 298,059 Specialty Insurance 532,423 — 505,890 — 469,342 — $ 6,725,082 $ 341,710 $ 5,880,514 $ 300,685 $ 5,453,959 $ 298,059 Domestic and foreign long-lived assets, by segment, as of December 31, 2020, 2019 and 2018, are as follows: December 31, 2020 2019 2018 Domestic Foreign Domestic Foreign Domestic Foreign (in thousands) Title Insurance and Services $ 956,569 $ 59,504 $ 982,397 $ 65,625 $ 994,023 $ 61,615 Specialty Insurance 5,718 — 7,479 — 65,644 — $ 962,287 $ 59,504 $ 989,876 $ 65,625 $ 1,059,667 $ 61,615 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2020 Revenues $ 1,412,943 $ 1,608,729 $ 1,913,721 $ 2,151,274 Income before income taxes $ 72,324 $ 225,295 $ 243,371 $ 382,280 Net income $ 63,846 $ 171,694 $ 183,591 $ 281,365 Net income attributable to noncontrolling interests $ 642 $ 1,039 $ 1,312 $ 1,074 Net income attributable to the Company $ 63,204 $ 170,655 $ 182,279 $ 280,291 Net income per share attributable to the Company’s stockholders (1): Basic $ 0.56 $ 1.52 $ 1.62 $ 2.50 Diluted $ 0.55 $ 1.52 $ 1.62 $ 2.49 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 (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) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)State | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
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 | ||
Policy liability percentage | 59.00% | ||
Number of states company issues home warranty contracts | State | 35 | ||
Accrued Interest Receivable | $ 2,500 | ||
Net other-than-temporary impairment losses, net of reversal | 3,200 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | $ 0 | |
Accrued Interest Receivable On Debt Securities | 29,100 | ||
Fair values of investments in debt securities for funding of statutory premium reserves and state deposits | $ 93,600 | 91,600 | |
Period of mortgage loan sold description | Collections of the receivable balance occur upon sale of the underlying mortgage loan to investors in the secondary market, generally within 30 days and more typically in less than 10 days. | ||
Impairment losses on property and equipment primarily related to impairments of internally developed software | $ 17,600 | 6,000 | |
Impairment losses related to commercial real estate | 1,000 | 7,500 | |
Title plants | 536,300 | 530,500 | |
Capitalized real estate data | $ 48,500 | 49,200 | |
Assessment to determine fair value | 50.00% | ||
Goodwill impairment losses | $ 34,178 | 0 | |
Escrow deposits | 7,100,000 | 7,300,000 | |
Like-kind exchange funds | 2,900,000 | 3,000,000 | |
First American Trust | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Escrow deposits | 3,100,000 | 3,200,000 | |
Assets held-in-trust | $ 4,400,000 | 4,200,000 | |
Employee Stock Purchase Plan | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | ||
Employee stock purchase plan percentage of discount purchase price on closing price | 15.00% | ||
Specialty Insurance | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Goodwill impairment losses | $ 34,178 | 0 | |
Title Insurance and Services | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Goodwill impairment losses | 0 | $ 0 | $ 0 |
Customer Relationships | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Impairment losses on finite-lived intangible assets | $ 3,200 | ||
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 | 3 years | ||
Capitalized Software Costs | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, estimated useful lives, years | 15 years |
Disposition of the Property a_2
Disposition of the Property and Casualty Insurance Business - (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Impairments on assets held for sale | $ 54,935 | $ 0 | $ 0 |
Statutory Restrictions on Inv_2
Statutory Restrictions on Investments and Stockholders' Equity (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | |||
Investments on deposit with state treasurers | $ 114.8 | $ 111.5 | |
Dividends available to parent from subsidiaries | 555.4 | ||
Loans and advances available to parent from subsidiaries | 115.6 | ||
Differences in state prescribed or permitted practices to NAIC Statutory Accounting | 267.5 | 235.5 | |
FATICO | |||
Statutory Accounting Practices [Line Items] | |||
Statutory surplus maintained by insurance subsidiary | 1,500 | 1,500 | |
Statutory net income of insurance subsidiary | $ 501.6 | $ 473.6 | $ 258.4 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | $ 6,121,004 | $ 5,796,755 | |
Debt Securities, Allowance for credit losses | [1] | (132) | 0 |
Debt Securities, Gross unrealized gains | 237,736 | 127,123 | |
Debt Securities, Gross unrealized losses | (3,786) | (10,242) | |
Debt securities, Estimated fair value | 6,354,822 | 5,913,636 | |
U.S. Treasury bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 80,172 | 143,825 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 778 | 469 | |
Debt Securities, Gross unrealized losses | (104) | (353) | |
Debt securities, Estimated fair value | 80,846 | 143,941 | |
Municipal bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 1,168,425 | 1,043,252 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 80,953 | 47,804 | |
Debt Securities, Gross unrealized losses | (570) | (217) | |
Debt securities, Estimated fair value | 1,248,808 | 1,090,839 | |
Foreign government bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 194,042 | 179,554 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 6,004 | 1,497 | |
Debt Securities, Gross unrealized losses | (516) | (961) | |
Debt securities, Estimated fair value | 199,530 | 180,090 | |
Governmental agency bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 254,248 | 316,318 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 9,869 | 5,820 | |
Debt Securities, Gross unrealized losses | (195) | (219) | |
Debt securities, Estimated fair value | 263,922 | 321,919 | |
Governmental agency mortgage-backed securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 3,401,737 | 3,241,966 | |
Debt Securities, Allowance for credit losses | [1] | 0 | 0 |
Debt Securities, Gross unrealized gains | 74,549 | 43,599 | |
Debt Securities, Gross unrealized losses | (1,668) | (7,307) | |
Debt securities, Estimated fair value | 3,474,618 | 3,278,258 | |
U.S. corporate debt securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 637,808 | 535,878 | |
Debt Securities, Allowance for credit losses | [1] | (119) | 0 |
Debt Securities, Gross unrealized gains | 43,505 | 18,466 | |
Debt Securities, Gross unrealized losses | (497) | (972) | |
Debt securities, Estimated fair value | 680,697 | 553,372 | |
Foreign corporate debt securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities, Amortized cost | 384,572 | 335,962 | |
Debt Securities, Allowance for credit losses | [1] | (13) | 0 |
Debt Securities, Gross unrealized gains | 22,078 | 9,468 | |
Debt Securities, Gross unrealized losses | (236) | (213) | |
Debt securities, Estimated fair value | $ 406,401 | $ 345,217 | |
[1] | Reflects impairment losses resulting from credit-related factors, which are also included in net realized investment gains/losses in the consolidated statements of income for the year ended December 31, 2020 |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Debt and Equity Securities [Line Items] | |||
Realized gains on sales of debt securities | $ 18,200 | $ 12,100 | $ 3,300 |
Realized losses on sales of debt securities | 3,500 | 6,100 | 20,300 |
Proceeds from sale of debt securities | 758,900 | 1,100,000 | 1,300,000 |
Realized and unrealized net gains (losses) on equity securities | 48,700 | 66,700 | $ 38,600 |
Net unrealized gains (losses) on equity securities | 48,800 | 52,300 | |
Debt securities, Estimated fair value | 6,354,822 | 5,913,636 | |
Estimated fair value of debt securities, Unrealized loss position | 615,839 | $ 1,663,146 | |
Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 54,200 | ||
Estimated fair value of debt securities, Unrealized loss position | 37,300 | ||
Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 73,000 | ||
Estimated fair value of debt securities, Unrealized loss position | 300 | ||
Non-Investment Grade | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 110,546 | ||
Estimated fair value of debt securities, Unrealized loss position | 39,995 | ||
Non-Investment Grade | Bank Loans | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 50,700 | ||
Estimated fair value of debt securities, Unrealized loss position | 34,400 | ||
Non-Investment Grade | High Yield Corporate Debt Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | 52,400 | ||
Estimated fair value of debt securities, Unrealized loss position | 5,300 | ||
Non-Investment Grade | Emerging Market Securities | |||
Schedule Of Debt and Equity Securities [Line Items] | |||
Debt securities, Estimated fair value | $ 6,700 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 513,733 | $ 971,604 |
Unrealized losses, Less than 12 months | (3,190) | (4,977) |
Estimated fair value, 12 months or longer | 102,106 | 691,542 |
Unrealized losses, 12 months or longer | (596) | (5,265) |
Estimated fair value, Total | 615,839 | 1,663,146 |
Unrealized losses, Total | (3,786) | (10,242) |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 7,744 | 12,507 |
Unrealized losses, Less than 12 months | (104) | (350) |
Estimated fair value, 12 months or longer | 0 | 3,193 |
Unrealized losses, 12 months or longer | 0 | (3) |
Estimated fair value, Total | 7,744 | 15,700 |
Unrealized losses, Total | (104) | (353) |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 74,045 | 29,333 |
Unrealized losses, Less than 12 months | (570) | (207) |
Estimated fair value, 12 months or longer | 0 | 2,827 |
Unrealized losses, 12 months or longer | 0 | (10) |
Estimated fair value, Total | 74,045 | 32,160 |
Unrealized losses, Total | (570) | (217) |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 67,094 | 112,167 |
Unrealized losses, Less than 12 months | (516) | (934) |
Estimated fair value, 12 months or longer | 0 | 11,001 |
Unrealized losses, 12 months or longer | 0 | (27) |
Estimated fair value, Total | 67,094 | 123,168 |
Unrealized losses, Total | (516) | (961) |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 15,353 | 24,493 |
Unrealized losses, Less than 12 months | (195) | (142) |
Estimated fair value, 12 months or longer | 0 | 14,923 |
Unrealized losses, 12 months or longer | 0 | (77) |
Estimated fair value, Total | 15,353 | 39,416 |
Unrealized losses, Total | (195) | (219) |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 287,947 | 719,602 |
Unrealized losses, Less than 12 months | (1,089) | (2,785) |
Estimated fair value, 12 months or longer | 100,473 | 637,009 |
Unrealized losses, 12 months or longer | (579) | (4,522) |
Estimated fair value, Total | 388,420 | 1,356,611 |
Unrealized losses, Total | (1,668) | (7,307) |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 42,508 | 42,607 |
Unrealized losses, Less than 12 months | (484) | (451) |
Estimated fair value, 12 months or longer | 1,357 | 10,216 |
Unrealized losses, 12 months or longer | (13) | (521) |
Estimated fair value, Total | 43,865 | 52,823 |
Unrealized losses, Total | (497) | (972) |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 19,042 | 30,895 |
Unrealized losses, Less than 12 months | (232) | (108) |
Estimated fair value, 12 months or longer | 276 | 12,373 |
Unrealized losses, 12 months or longer | (4) | (105) |
Estimated fair value, Total | 19,318 | 43,268 |
Unrealized losses, Total | $ (236) | $ (213) |
Debt and Equity Securities (Rol
Debt and Equity Securities (Rollforward of Allowance for Credit Losses for Investments in Debt Securities ) (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Investments Debt And Equity Securities [Abstract] | ||
Balance at beginning of period | $ 0 | [1] |
Credit losses recognized during the period | (7,493) | |
Net decreases to credit losses previously recognized | 4,300 | |
Reductions for securities sold/matured | 3,061 | |
Balance at end of period | $ (132) | [1] |
[1] | Reflects impairment losses resulting from credit-related factors, which are also included in net realized investment gains/losses in the consolidated statements of income for the year ended December 31, 2020 |
Debt and Equity Securities (I_2
Debt and Equity Securities (Investments in Debt Securities by Contractual Maturity) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Amortized cost | $ 6,121,004 | $ 5,796,755 |
Debt securities, Estimated fair value | 6,354,822 | 5,913,636 |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 62,485 | |
Amortized cost, Due after one through five years | 13,092 | |
Amortized cost, Due after five through ten years | 1,423 | |
Amortized cost, Due after ten years | 3,172 | |
Debt Securities, Amortized cost | 80,172 | 143,825 |
Estimated fair value, Due in one year or less | 63,022 | |
Estimated fair value, Due after one through five years | 13,189 | |
Estimated fair value, Due after five through ten years | 1,534 | |
Estimated fair value, Due after ten years | 3,101 | |
Debt securities, Estimated fair value | 80,846 | 143,941 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 42,368 | |
Amortized cost, Due after one through five years | 105,426 | |
Amortized cost, Due after five through ten years | 452,334 | |
Amortized cost, Due after ten years | 568,297 | |
Debt Securities, Amortized cost | 1,168,425 | 1,043,252 |
Estimated fair value, Due in one year or less | 42,673 | |
Estimated fair value, Due after one through five years | 109,698 | |
Estimated fair value, Due after five through ten years | 486,158 | |
Estimated fair value, Due after ten years | 610,279 | |
Debt securities, Estimated fair value | 1,248,808 | 1,090,839 |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 52,719 | |
Amortized cost, Due after one through five years | 60,252 | |
Amortized cost, Due after five through ten years | 66,852 | |
Amortized cost, Due after ten years | 14,219 | |
Debt Securities, Amortized cost | 194,042 | 179,554 |
Estimated fair value, Due in one year or less | 52,768 | |
Estimated fair value, Due after one through five years | 62,151 | |
Estimated fair value, Due after five through ten years | 68,614 | |
Estimated fair value, Due after ten years | 15,997 | |
Debt securities, Estimated fair value | 199,530 | 180,090 |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 19,541 | |
Amortized cost, Due after one through five years | 132,378 | |
Amortized cost, Due after five through ten years | 47,928 | |
Amortized cost, Due after ten years | 54,401 | |
Debt Securities, Amortized cost | 254,248 | 316,318 |
Estimated fair value, Due in one year or less | 19,666 | |
Estimated fair value, Due after one through five years | 136,370 | |
Estimated fair value, Due after five through ten years | 49,274 | |
Estimated fair value, Due after ten years | 58,612 | |
Debt securities, Estimated fair value | 263,922 | 321,919 |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 13,452 | |
Amortized cost, Due after one through five years | 318,682 | |
Amortized cost, Due after five through ten years | 233,414 | |
Amortized cost, Due after ten years | 72,260 | |
Debt Securities, Amortized cost | 637,808 | 535,878 |
Estimated fair value, Due in one year or less | 13,502 | |
Estimated fair value, Due after one through five years | 340,056 | |
Estimated fair value, Due after five through ten years | 245,796 | |
Estimated fair value, Due after ten years | 81,343 | |
Debt securities, Estimated fair value | 680,697 | 553,372 |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 9,845 | |
Amortized cost, Due after one through five years | 199,272 | |
Amortized cost, Due after five through ten years | 131,944 | |
Amortized cost, Due after ten years | 43,511 | |
Debt Securities, Amortized cost | 384,572 | 335,962 |
Estimated fair value, Due in one year or less | 9,903 | |
Estimated fair value, Due after one through five years | 209,557 | |
Estimated fair value, Due after five through ten years | 139,734 | |
Estimated fair value, Due after ten years | 47,207 | |
Debt securities, Estimated fair value | 406,401 | $ 345,217 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 200,410 | |
Amortized cost, Due after one through five years | 829,102 | |
Amortized cost, Due after five through ten years | 933,895 | |
Amortized cost, Due after ten years | 755,860 | |
Debt Securities, Amortized cost | 2,719,267 | |
Estimated fair value, Due in one year or less | 201,534 | |
Estimated fair value, Due after one through five years | 871,021 | |
Estimated fair value, Due after five through ten years | 991,110 | |
Estimated fair value, Due after ten years | 816,539 | |
Debt securities, Estimated fair value | 2,880,204 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 3,401,737 | |
Estimated fair value | $ 3,474,618 |
Debt and Equity Securities (I_3
Debt and Equity Securities (Investments in Equity Securities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | $ 376,320 | $ 349,959 |
Equity securities, Estimated fair value | 464,126 | 392,318 |
Preferred stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 22,163 | 21,849 |
Equity securities, Estimated fair value | 19,479 | 18,094 |
Common stocks | ||
Debt And Equity Securities F V N I [Line Items] | ||
Equity securities, Cost | 354,157 | 328,110 |
Equity securities, Estimated fair value | $ 444,647 | $ 374,224 |
Debt and Equity Securities (Com
Debt and Equity Securities (Composition of Investment Portfolio by Credit Rating Agencies) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 6,354,822 | $ 5,913,636 |
Equity securities, Estimated fair value | 464,126 | 392,318 |
Estimated fair value, Total | $ 6,374,301 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Percentage of investment portfolio by credit rating agencies | 100.00% | |
U.S. Treasury bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 80,846 | 143,941 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Municipal bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,248,808 | 1,090,839 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign government bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 199,530 | 180,090 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental agency bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 263,922 | 321,919 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Governmental agency mortgage-backed securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,474,618 | 3,278,258 |
Percentage of debt securities by credit rating agencies | 100.00% | |
U.S. corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 680,697 | 553,372 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Foreign corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 406,401 | 345,217 |
Percentage of debt securities by credit rating agencies | 100.00% | |
Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 19,479 | $ 18,094 |
Percentage of equity securities by credit rating agencies | 100.00% | |
Investment Grade | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 5,636,741 | |
Estimated fair value, Total | $ 5,636,791 | |
Percentage of debt securities by credit rating agencies | 88.70% | |
Percentage of investment portfolio by credit rating agencies | 88.40% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 607,535 | |
Estimated fair value, Total | $ 625,642 | |
Percentage of debt securities by credit rating agencies | 9.60% | |
Percentage of investment portfolio by credit rating agencies | 9.80% | |
Investment Grade | U.S. Treasury bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 80,846 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | Municipal bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 1,205,891 | |
Percentage of debt securities by credit rating agencies | 96.50% | |
Investment Grade | Municipal bonds | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 42,142 | |
Percentage of debt securities by credit rating agencies | 3.40% | |
Investment Grade | Foreign government bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 183,350 | |
Percentage of debt securities by credit rating agencies | 91.90% | |
Investment Grade | Foreign government bonds | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 13,221 | |
Percentage of debt securities by credit rating agencies | 6.60% | |
Investment Grade | Governmental agency bonds | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 263,922 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | Governmental agency mortgage-backed securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 3,474,618 | |
Percentage of debt securities by credit rating agencies | 100.00% | |
Investment Grade | U.S. corporate debt securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 280,026 | |
Percentage of debt securities by credit rating agencies | 41.10% | |
Investment Grade | U.S. corporate debt securities | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 324,208 | |
Percentage of debt securities by credit rating agencies | 47.70% | |
Investment Grade | Foreign corporate debt securities | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 148,088 | |
Percentage of debt securities by credit rating agencies | 36.40% | |
Investment Grade | Foreign corporate debt securities | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 227,964 | |
Percentage of debt securities by credit rating agencies | 56.10% | |
Investment Grade | Preferred stocks | A- or Higher | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 50 | |
Percentage of equity securities by credit rating agencies | 0.20% | |
Investment Grade | Preferred stocks | BBB+ to BBB- | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 18,107 | |
Percentage of equity securities by credit rating agencies | 93.00% | |
Non-Investment Grade | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 110,546 | |
Estimated fair value, Total | $ 111,868 | |
Percentage of debt securities by credit rating agencies | 1.70% | |
Percentage of investment portfolio by credit rating agencies | 1.80% | |
Non-Investment Grade | Municipal bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 775 | |
Percentage of debt securities by credit rating agencies | 0.10% | |
Non-Investment Grade | Foreign government bonds | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 2,959 | |
Percentage of debt securities by credit rating agencies | 1.50% | |
Non-Investment Grade | U.S. corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 76,463 | |
Percentage of debt securities by credit rating agencies | 11.20% | |
Non-Investment Grade | Foreign corporate debt securities | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Debt securities, Estimated fair value | $ 30,349 | |
Percentage of debt securities by credit rating agencies | 7.50% | |
Non-Investment Grade | Preferred stocks | ||
Schedule Of Debt and Equity Securities [Line Items] | ||
Equity securities, Estimated fair value | $ 1,322 | |
Percentage of equity securities by credit rating agencies | 6.80% |
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, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 615,839 | $ 1,663,146 |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. Treasury bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,744 | 15,700 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 74,045 | 32,160 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign government bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 67,094 | 123,168 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 15,353 | 39,416 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Governmental agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 388,420 | 1,356,611 |
Percentage of debt securities in unrealized loss position | 100.00% | |
U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 43,865 | 52,823 |
Percentage of debt securities in unrealized loss position | 100.00% | |
Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 19,318 | $ 43,268 |
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 | $ 559,148 | |
Percentage of debt securities in unrealized loss position | 90.80% | |
Investment Grade | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 16,696 | |
Percentage of debt securities in unrealized loss position | 2.70% | |
Investment Grade | U.S. Treasury bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 7,744 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | U.S. Treasury bonds | 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% | |
Investment Grade | Municipal bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 70,648 | |
Percentage of debt securities in unrealized loss position | 95.40% | |
Investment Grade | Municipal bonds | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 3,397 | |
Percentage of debt securities in unrealized loss position | 4.60% | |
Investment Grade | Foreign government bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 67,094 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | Foreign government bonds | 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% | |
Investment Grade | Governmental agency bonds | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 15,353 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | Governmental agency bonds | 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% | |
Investment Grade | Governmental agency mortgage-backed securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 388,420 | |
Percentage of debt securities in unrealized loss position | 100.00% | |
Investment Grade | Governmental agency mortgage-backed securities | 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% | |
Investment Grade | U.S. corporate debt securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 3,470 | |
Percentage of debt securities in unrealized loss position | 7.90% | |
Investment Grade | U.S. corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 8,496 | |
Percentage of debt securities in unrealized loss position | 19.40% | |
Investment Grade | Foreign corporate debt securities | A- or Higher | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 6,419 | |
Percentage of debt securities in unrealized loss position | 33.20% | |
Investment Grade | Foreign corporate debt securities | BBB+ to BBB- | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 4,803 | |
Percentage of debt securities in unrealized loss position | 24.90% | |
Non-Investment Grade | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 39,995 | |
Percentage of debt securities in unrealized loss position | 6.50% | |
Non-Investment Grade | U.S. Treasury bonds | ||
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% | |
Non-Investment Grade | Municipal bonds | ||
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% | |
Non-Investment Grade | Foreign government bonds | ||
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% | |
Non-Investment Grade | Governmental agency bonds | ||
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% | |
Non-Investment Grade | Governmental agency mortgage-backed securities | ||
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% | |
Non-Investment Grade | U.S. corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 31,899 | |
Percentage of debt securities in unrealized loss position | 72.70% | |
Non-Investment Grade | Foreign corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value of debt securities, Unrealized loss position | $ 8,096 | |
Percentage of debt securities in unrealized loss position | 41.90% |
Credit Losses - Summary of Allo
Credit Losses - Summary of Allowance for Credit Losses on Accounts Receivables (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Receivables [Abstract] | ||
Balance at beginning of period | $ 12,676 | [1] |
Provision for expected credit losses | 6,640 | |
Write-offs, net of recoveries | (5,322) | |
Balance at end of period | $ 13,994 | |
[1] | The balance at beginning of period was determined under previous accounting guidance. Transition to the updated guidance did not result in an adjustment to the allowance. See Note 1 Basis of Presentation and Significant Accounting Policies for further information on the recently adopted accounting policy. |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Land | $ 23,840 | $ 25,302 |
Buildings | 181,401 | 191,068 |
Leasehold improvements | 68,452 | 66,471 |
Furniture and equipment | 215,777 | 222,543 |
Capitalized software | 792,377 | 718,847 |
Property and equipment, Gross | 1,281,847 | 1,224,231 |
Accumulated depreciation and amortization | (836,715) | (782,217) |
Property and equipment, Total | $ 445,132 | $ 442,014 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Impairment losses on property and equipment primarily related to impairments of internally developed software | $ 17.6 | $ 6 |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets | $ 265,963 | $ 291,385 |
Finance lease assets | $ 3,929 | $ 4,560 |
Finance Lease Right Of Use Asset Statement Of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember |
Total lease assets | $ 269,892 | $ 295,945 |
Liabilities | ||
Operating lease liabilities | 295,762 | 322,776 |
Finance lease liabilities | $ 4,152 | $ 4,814 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | faf:NotesAndContractPayableMember | faf:NotesAndContractPayableMember |
Total lease liabilities | $ 299,914 | $ 327,590 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost: | ||
Net lease cost | $ 120,955 | $ 120,536 |
Other Operating Expenses | ||
Operating Leased Assets [Line Items] | ||
Operating lease cost | 89,200 | 87,847 |
Lease cost: | ||
Variable lease cost | 32,099 | 31,258 |
Short-term lease cost | 777 | 958 |
Depreciation and Amortization | ||
Lease cost: | ||
Amortization of lease assets | 1,632 | 1,919 |
Interest | ||
Lease cost: | ||
Interest on lease liabilities | 176 | 191 |
Information and Other | ||
Lease cost: | ||
Sublease income | $ (2,929) | $ (1,637) |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases [Abstract] | |
Total rental expense for all operating leases | $ 89.4 |
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, 2020 | Dec. 31, 2019 |
Operating Leases Maturities | ||
Operating Leases, 2021 | $ 86,695 | |
Operating Leases, 2022 | 72,728 | |
Operating Leases, 2023 | 55,052 | |
Operating Leases, 2024 | 40,282 | |
Operating Leases, 2025 | 29,690 | |
Operating Leases, Thereafter | 39,622 | |
Operating Leases, Total lease payments | 324,069 | |
Operating Leases, Interest | (28,307) | |
Operating Leases, Present value of lease liabilities | 295,762 | $ 322,776 |
Finance Leases Maturities | ||
Finance Leases, 2021 | 1,726 | |
Finance Leases, 2022 | 1,628 | |
Finance Leases, 2023 | 767 | |
Finance Leases, 2024 | 236 | |
Finance Leases, 2025 | 0 | |
Finance Leases, Thereafter | 0 | |
Finance Leases, Total lease payments | 4,357 | |
Finance Leases, Interest | (205) | |
Finance Leases, Present value of lease liabilities | 4,152 | 4,814 |
Operating and Finance Leases Maturities | ||
Total, 2021 | 88,421 | |
Total, 2022 | 74,356 | |
Total, 2023 | 55,819 | |
Total, 2024 | 40,518 | |
Total, 2025 | 29,690 | |
Total, Thereafter | 39,622 | |
Total lease payments | 328,426 | |
Total, Interest | (28,512) | |
Total, Present value of lease liabilities | $ 299,914 | $ 327,590 |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Lease Terms and Discount Rate (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease terms (years): | ||
Operating leases | 4 years 9 months 18 days | 5 years 4 months 24 days |
Finance leases | 2 years 8 months 12 days | 3 years 6 months |
Weighted-average discount rates: | ||
Operating leases | 3.80% | 4.16% |
Finance leases | 4.03% | 3.92% |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Lease Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from operating leases | $ 92,762 | $ 88,242 |
Cash paid for amounts included in the measurement of lease liabilities, Operating cash flows from finance leases | 176 | 191 |
Cash paid for amounts included in the measurement of lease liabilities, Financing cash flows from finance leases | 1,658 | 1,817 |
Operating lease assets obtained in exchange for new operating lease liabilities | 53,614 | 54,809 |
Finance lease assets obtained in exchange for new finance lease liabilities | $ 918 | $ 939 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Reportable Segment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, Gross Beginning Balance | $ 1,150,908 | $ 1,144,166 | |
Accumulated impairment losses Begining Balance | 0 | 0 | |
Goodwill, Beginning Balance | 1,150,908 | 1,144,166 | |
Acquisitions | 260,712 | 4,014 | |
Dispositions | (358) | 0 | |
Impairment losses | (34,178) | 0 | |
Foreign currency translation | 1,544 | 2,728 | |
Goodwill, Gross Ending Balance | 1,412,806 | 1,150,908 | $ 1,144,166 |
Accumulated impairment losses Ending Balance | (34,178) | 0 | 0 |
Goodwill, Ending Balance | 1,378,628 | 1,150,908 | 1,144,166 |
Title Insurance and Services | |||
Goodwill [Line Items] | |||
Goodwill, Gross Beginning Balance | 1,104,143 | 1,097,401 | |
Accumulated impairment losses Begining Balance | 0 | 0 | |
Goodwill, Beginning Balance | 1,104,143 | 1,097,401 | |
Acquisitions | 260,712 | 4,014 | |
Dispositions | (358) | 0 | |
Impairment losses | 0 | 0 | 0 |
Foreign currency translation | 1,544 | 2,728 | |
Goodwill, Gross Ending Balance | 1,366,041 | 1,104,143 | 1,097,401 |
Accumulated impairment losses Ending Balance | 0 | 0 | 0 |
Goodwill, Ending Balance | 1,366,041 | 1,104,143 | 1,097,401 |
Specialty Insurance | |||
Goodwill [Line Items] | |||
Goodwill, Gross Beginning Balance | 46,765 | 46,765 | |
Accumulated impairment losses Begining Balance | 0 | 0 | |
Goodwill, Beginning Balance | 46,765 | 46,765 | |
Acquisitions | 0 | 0 | |
Dispositions | 0 | 0 | |
Impairment losses | (34,178) | 0 | |
Foreign currency translation | 0 | 0 | |
Goodwill, Gross Ending Balance | 46,765 | 46,765 | 46,765 |
Accumulated impairment losses Ending Balance | (34,178) | 0 | 0 |
Goodwill, Ending Balance | $ 12,587 | $ 46,765 | $ 46,765 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Goodwill impairment losses | $ 34,178 | $ 0 |
Specialty Insurance | ||
Goodwill [Line Items] | ||
Goodwill impairment losses | $ 34,178 | $ 0 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 172,851 | $ 99,905 |
Noncompete agreements | 38,310 | 13,150 |
Trademarks | 24,370 | 10,520 |
Internal-use software licenses | 21,605 | 21,982 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 259,976 | 148,397 |
Accumulated amortization | (82,380) | (73,449) |
Finite-lived intangible assets, net | 177,596 | 74,948 |
Licenses | 16,878 | 16,885 |
Other intangibles assets, net | $ 194,474 | $ 91,833 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense | $ 43.3 | $ 28.4 | $ 30.4 |
Customer Relationships | |||
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Impairment losses on finite-lived intangible assets | $ 3.2 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2021 | $ 41,011 |
2022 | 34,455 |
2023 | 31,680 |
2024 | 24,436 |
2025 | $ 18,317 |
Deposits (Escrow, Savings and I
Deposits (Escrow, Savings and Investment Certificate Accounts) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Banking And Thrifts [Abstract] | |||
Interest bearing | $ 1,650,025 | $ 1,831,083 | |
Non-interest bearing | 1,438,559 | 1,337,774 | |
Escrow accounts | 3,088,584 | 3,168,857 | |
Business checking and other deposits | [1] | 188,365 | 168,574 |
Deposits, Total | $ 3,276,949 | $ 3,337,431 | |
Weighted average interest rate, Interest bearing escrow accounts | 0.13% | 0.17% | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance at beginning of year | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 |
Provision related to current year | 531,586 | 436,362 | 444,969 |
Provision related to prior years | 47,921 | 9,678 | 7,664 |
Total Provision | 579,507 | 446,040 | 452,633 |
Payments, net of recoveries, related to: Current year | 267,621 | 227,663 | 242,617 |
Payments, net of recoveries, related to: Prior years | 203,713 | 187,658 | 208,139 |
Total Payments, net of recoveries | 471,334 | 415,321 | 450,756 |
Other | 6,787 | (10,354) | 11,869 |
Balance at end of year | $ 1,178,004 | $ 1,063,044 | $ 1,042,679 |
Reserve for Known and Incurre_4
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments, net of recoveries, related to: Current year | $ 267,621 | $ 227,663 | $ 242,617 |
Payments, net of recoveries, related to: Prior years | 203,713 | $ 187,658 | $ 208,139 |
Payments on reinsured losses | $ 2,417 | ||
Provision for title loss, percentage of title premiums and escrow fees | 5.00% | 4.00% | 4.00% |
Ultimate loss rate | 4.50% | 4.00% | 4.00% |
Estimated percentage increase in loss reserve for prior policy years | 0.50% | ||
Estimated increase in loss reserve for prior policy years | $ 26,200 | $ 0 | $ 0 |
Decrease in Company’s incurred title claims | 12.40% | ||
Specialty Insurance | |||
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments, net of recoveries, related to: Current year | $ 250,000 | 211,400 | 228,300 |
Payments, net of recoveries, related to: Prior years | 57,200 | 41,700 | 56,700 |
Property and Casualty Insurance Business | |||
Reserve For Known And Incurred But Not Reported Claims [Line Items] | |||
Payments on reinsured losses | 4,300 | 21,100 | 15,300 |
Reinsurance recoveries | $ 3,500 | $ 10,300 | $ 20,300 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance [Abstract] | ||||
Known title claims, amount | $ 64,601 | $ 83,382 | ||
IBNR title claims, amount | 1,025,761 | 903,994 | ||
Total title claims, amount | 1,090,362 | 987,376 | ||
Non-title claims, amount | 87,642 | 75,668 | ||
Total loss reserves, amount | $ 1,178,004 | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 |
Known title claims, percent | 5.50% | 7.80% | ||
IBNR title claims, percent | 87.10% | 85.10% | ||
Total title claims, percent | 92.60% | 92.90% | ||
Non-title claims, percent | 7.40% | 7.10% | ||
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, 2020USD ($)Claim | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018USD ($) | [1] | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015USD ($) | [1] | Dec. 31, 2014USD ($) | [1] | Dec. 31, 2013USD ($) | [1] | Dec. 31, 2012USD ($) | [1] | Dec. 31, 2011USD ($) | [1] |
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 2,278,080 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,194,574 | ||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 44 | ||||||||||||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 83,550 | ||||||||||||||||||
Accident Year 2011 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 149,486 | $ 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 | 149,486 | 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 | 161,683 | 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 | $ 161,683 | 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 | 184,698 | 184,606 | 184,777 | 184,668 | 184,826 | 185,244 | 184,419 | 182,858 | |||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 28 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 762 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 184,590 | 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 | 191,288 | 191,218 | 190,944 | 191,025 | 191,120 | 190,738 | 190,985 | ||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 126 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 789 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 191,016 | 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 | 226,876 | 226,882 | 226,555 | 225,977 | 225,754 | 221,617 | |||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 347 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 867 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 226,335 | 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 | 253,840 | 253,258 | 251,506 | 249,358 | 245,859 | ||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 960 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 972 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 252,212 | 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 | 278,979 | 278,005 | 275,480 | 267,392 | |||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 2,817 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 1,014 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 272,309 | 270,705 | 266,653 | $ 220,218 | |||||||||||||||
Accident Year 2018 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 270,441 | 268,931 | 264,088 | ||||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 5,663 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 1,063 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 262,008 | 255,557 | $ 222,966 | ||||||||||||||||
Accident Year 2019 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 268,064 | 251,259 | |||||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 7,697 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 1,078 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 252,280 | $ 207,342 | |||||||||||||||||
Accident Year 2020 [Member] | |||||||||||||||||||
Claims Development [Line Items] | |||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 292,725 | ||||||||||||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 8,576 | ||||||||||||||||||
Cumulative number of reported claims | Claim | 1,177 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 242,655 | ||||||||||||||||||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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: Specialty insurance | $ 83,550 | |||
Reinsurance recoverable on unpaid claims: Specialty insurance | 2,417 | |||
Unallocated claims adjustment expenses: Specialty insurance | 1,675 | |||
Title insurance | 1,090,362 | $ 987,376 | ||
Total loss reserves, amount | $ 1,178,004 | $ 1,063,044 | $ 1,042,679 | $ 1,028,933 |
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, 2020 |
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 | 82.90% |
Average annual percentage payout of incurred claims by age, net of reinsurance, Year 2 | 13.60% |
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 | 0.10% |
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, 2020 | May 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Line of credit borrowings | $ 0 | ||
Trust deed note due November 1, 2023, collateralized by land and buildings with net book values of $37,522 and $38,402 at December 31, 2020 and 2019, respectively, fixed interest rate of 5.26% | 12,011 | $ 15,724 | |
Other notes and contracts payable with maturities through 2024, weighted-average interest rate of 4.28% and 4.02% at December 31, 2020 and 2019, respectively | 6,228 | 4,918 | |
Notes and contracts payable | 1,018,239 | 730,642 | |
Unamortized discount – senior unsecured notes | (1,972) | (358) | |
Debt issuance costs – senior unsecured notes | (5,511) | (2,052) | |
Notes and contracts payable net of unamortized discount and debt issuance costs | 1,010,756 | 728,232 | |
4.00% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes | 450,000 | $ 450,000 | 0 |
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 | $ 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, 2020 | Dec. 31, 2019 | May 31, 2020 | |
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 4.27% | 4.22% | |
4.00% unsecured notes | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.00% | ||
Senior Notes | 4.00% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes maturity date | May 15, 2030 | ||
Effective interest rate | 4.05% | ||
Senior Notes | 4.60% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes maturity date | Nov. 15, 2024 | ||
Effective interest rate | 4.60% | ||
Senior Notes | 4.30% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes maturity date | Feb. 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% | ||
Mortgages | |||
Debt Instrument [Line Items] | |||
Maturity year | Nov. 1, 2023 | ||
Collateral value | $ 37,522 | $ 38,402 | |
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 | 4.28% | 4.02% |
Notes and Contracts Payable (Na
Notes and Contracts Payable (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2020 | Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Weighted-average interest rate | 4.27% | 4.22% | ||
Line of credit facility, maximum increase in revolving credit expansion option | $ 350,000 | |||
Borrowings under credit facility | 160,000 | $ 120,000 | ||
Repayments of lines of credit | 280,000 | $ 160,000 | ||
Outstanding borrowings under credit facility | $ 0 | |||
Revolving loans, interest rate description | At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) 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, 2020, the Company was in compliance with the financial covenants under the credit agreement | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, applicable spread | 0.25% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, applicable spread | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, applicable spread | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, applicable spread | 2.00% | |||
Unsecured Debt | JPMorgan Chase Bank, N.A | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | 700,000 | |||
Repayments of lines of credit | $ 160,000 | |||
Credit agreement termination date | Apr. 30, 2024 | |||
4.00% unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured notes | $ 450,000 | $ 450,000 | $ 0 | |
Fixed interest rate | 4.00% | |||
Senior unsecured notes maturity year | 2030 | |||
Interest due, periodic | semi-annually | |||
Due date of interest to be paid semi-annually, beginning | Nov. 15, 2020 | |||
Credit facility, maximum borrowing capacity | $ 700,000 |
Notes and Contracts Payable (Ag
Notes and Contracts Payable (Aggregate Annual Maturities of Notes and Contracts Payable) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 6,367 | |
2022 | 6,562 | |
2023 | 255,078 | |
2024 | 300,232 | |
2025 | 0 | |
Thereafter | 450,000 | |
Notes and contracts payable, Total | $ 1,018,239 | $ 730,642 |
Net Investment Income (Schedule
Net Investment Income (Schedule of Net Investment Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | $ 225,101 | $ 319,152 | $ 233,789 |
Other investments | 63,434 | 96,812 | 64,328 |
Deferred compensation plan assets | 12,732 | 17,274 | (6,399) |
Equity in earnings of affiliates, net | 5,718 | 2,836 | 2,717 |
Other | 210 | 612 | 106 |
Investment expenses | (3,811) | (3,739) | (3,500) |
Net investment income | 221,290 | 315,413 | 230,289 |
Cash, cash equivalents and deposits with banks | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | 6,311 | 26,187 | 21,910 |
Debt Securities | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | 125,877 | 163,339 | 138,409 |
Equity securities | |||
Net Investment Income, Insurance Entity [Abstract] | |||
Total investment income | $ 10,819 | $ 12,092 | $ 12,718 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Income (loss) before noncontrolling interests, Domestic | $ 850,000 | $ 857,200 | $ 571,900 | |
Income (loss) before noncontrolling interests, Domestic | $ 73,300 | $ 47,800 | $ 37,600 | |
Federal income tax rates | 21.00% | 21.00% | 21.00% | |
Effective income tax rates | 24.10% | 21.60% | 21.90% | |
Deferred tax assets, payroll taxes | $ 11,464 | $ 0 | ||
Tax benefits recorded | 3,800 | 3,200 | $ 5,200 | |
Foreign tax credit carryover net of valuation allowance | 6,500 | |||
Operating loss carryforwards, amount | 68,100 | |||
Operating loss carryforwards, indefinite expiration, amount | 30,800 | |||
Operating loss carryforwards, subject to expiration, amount | 37,300 | |||
Deferred tax asset valuation allowance | 9,411 | 9,846 | ||
Liability for income taxes associated with uncertain tax positions | 7,200 | 1,500 | 13,300 | $ 12,800 |
Offsetting tax benefits related to uncertain tax positions | 2,100 | 400 | 3,700 | |
Accrued interest and penalties on uncertain tax positions | 0 | 0 | 5,800 | |
Other tax benefits related to interest and penalties of uncertain tax positions | $ 0 | 0 | $ 5,800 | |
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 | $ 8,100 | 8,800 | ||
Deferred Tax Assets Valuation Allowances On Other Deferred Tax Assets | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax asset valuation allowance | 1,300 | $ 1,000 | ||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 1,500 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | 34,700 | |||
Foreign | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards, amount | $ 31,900 | |||
CARES Act | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred payroll taxes remittance payment period description | The CARES Act allows employers to defer payment of a portion of payroll taxes otherwise due on wages paid between the enactment date and December 31, 2020 and remit the deferred payroll taxes in equal amounts on December 31, 2021 and December 31, 2022. | |||
Deferred payroll taxes | $ 49,400 | |||
Deferred tax assets, payroll taxes | $ 11,500 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 190,539 | $ 167,016 | $ 101,427 |
Current State | 27,304 | 3,514 | 12,285 |
Current Foreign | 11,613 | 8,486 | 8,990 |
Current Income Tax Expense (Benefit), Total | 229,456 | 179,016 | 122,702 |
Deferred Federal | (17,678) | 11,275 | 4,381 |
Deferred State | 954 | 1,481 | 299 |
Deferred Foreign | 10,042 | 3,398 | 6,258 |
Deferred Income Tax Expense (Benefit), Total | (6,682) | 16,154 | 10,938 |
Income tax | $ 222,774 | $ 195,170 | $ 133,640 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Taxes calculated at federal rate | $ 193,887 | $ 190,054 | $ 128,003 |
State taxes, net of federal benefit | 22,317 | 18,028 | 9,941 |
Change in liability for tax positions | 252 | (13,563) | 875 |
Foreign income taxed at different rates | 5,162 | 782 | 7,287 |
Tax reform impact | 0 | 0 | (6,804) |
Unremitted foreign earnings | (2,183) | 2,588 | (146) |
Other items, net | 3,339 | (2,719) | (5,516) |
Income tax | $ 222,774 | $ 195,170 | $ 133,640 |
Federal income tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit | 2.40% | 2.00% | 1.60% |
Change in liability for tax positions | 0.00% | (1.50%) | 0.10% |
Foreign income taxed at different rates | 0.60% | 0.10% | 1.20% |
Tax reform impact | 0.00% | 0.00% | (1.10%) |
Unremitted foreign earnings | (0.20%) | 0.30% | 0.00% |
Other items, net | 0.30% | (0.30%) | (0.90%) |
Total | 24.10% | 21.60% | 21.90% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Deferred revenue | $ 9,671 | $ 7,982 |
Employee benefits | 95,147 | 89,986 |
Bad debt reserves | 7,694 | 5,990 |
Pension | 34,067 | 26,383 |
Net operating loss carryforward | 10,904 | 14,067 |
Foreign tax credit | 6,798 | 6,724 |
Operating lease liabilities | 66,244 | 72,119 |
Payroll taxes | 11,464 | 0 |
Other | 4,802 | 3,050 |
Deferred tax assets before valuation allowance | 246,791 | 226,301 |
Valuation allowance | (9,411) | (9,846) |
Deferred tax assets | 237,380 | 216,455 |
Depreciable and amortizable assets | 271,250 | 241,799 |
Claims and related salvage | 89,774 | 104,004 |
Investments in affiliates | 6,604 | 612 |
Securities | 75,274 | 39,035 |
Operating lease assets | 59,418 | 65,121 |
Unremitted foreign earnings | 11,796 | 13,709 |
Deferred tax liabilities | 514,116 | 464,280 |
Net deferred tax liability | $ 276,736 | $ 247,825 |
Income Taxes - Changes In Unrec
Income Taxes - Changes In Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefits | |||
Unrecognized tax benefits—beginning balance | $ 1,500 | $ 13,300 | $ 12,800 |
Gross increases—prior period tax positions | 5,000 | 0 | 0 |
Gross decreases—prior period tax positions | 0 | (8,600) | 0 |
Gross increases—current period tax positions | 700 | 800 | 500 |
Settlements with taxing authorities | 0 | (4,000) | 0 |
Unrecognized tax benefits—ending balance | $ 7,200 | $ 1,500 | $ 13,300 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income attributable to the Company | $ 280,291 | $ 182,279 | $ 170,655 | $ 63,204 | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | $ 696,429 | $ 707,410 | $ 474,496 | ||||||||
Basic weighted-average common shares | 112,746 | 113,080 | 112,613 | ||||||||||||||||
Effect of dilutive employee stock options and RSUs | 274 | 575 | 666 | ||||||||||||||||
Diluted weighted-average common shares | 113,020 | 113,655 | 113,279 | ||||||||||||||||
Basic | $ 2.50 | [1] | $ 1.62 | [1] | $ 1.52 | [1] | $ 0.56 | [1] | $ 1.98 | [1] | $ 1.65 | [1] | $ 1.65 | [1] | $ 0.97 | [1] | $ 6.18 | $ 6.26 | $ 4.21 |
Diluted | $ 2.49 | [1] | $ 1.62 | [1] | $ 1.52 | [1] | $ 0.55 | [1] | $ 1.97 | [1] | $ 1.65 | [1] | $ 1.64 | [1] | $ 0.97 | [1] | $ 6.16 | $ 6.22 | $ 4.19 |
[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. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2020shares | |
RSUs | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from the weighted-average diluted common shares outstanding | 203 |
Stock options | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Dilutive securities excluded from the weighted-average diluted common shares outstanding | 0 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred compensation arrangements [Abstract] | ||
Deferred compensation plan, maximum deferral percentage | 100.00% | |
Assets held-in-trust | $ 116 | $ 103.5 |
Unfunded liabilities | $ 131.3 | $ 115.1 |
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Executive and management supplemental benefit plans compensation period | 5 years | |
Savings Plan | ||
Deferred compensation arrangements [Abstract] | ||
Common stock, outstanding | 1.8 | 2 |
Percentage of plan shares in total shares outstanding | 1.70% | 1.80% |
Unfunded Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Cash contribution to plans during the next 12 months | $ 15.4 | |
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 income/loss into net periodic loss in next fiscal year | $ 6.8 | |
Prior service credit expected to be amortized from accumulated comprehensive income/loss into net periodic loss in next fiscal year | $ (1.3) |
Employee Benefit Plans (Princip
Employee Benefit Plans (Principal Components of Employee Benefit Costs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan expenses | $ 60,651 | $ 93,322 | $ 58,250 |
Savings Plan | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Savings plan | 31,885 | 60,416 | 46,208 |
Unfunded Supplemental Benefit Plans | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan expenses | 9,475 | 8,989 | 9,248 |
Other Plans, Net | |||
Employee Benefit Plan Disclosure [Line Items] | |||
Other plans, net | $ 19,291 | $ 23,917 | $ 2,794 |
Employee Benefit Plans (Company
Employee Benefit Plans (Company's Benefit Obligations and Funded Status) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | |||
Service costs | $ 179 | $ 282 | $ 519 |
Interest costs | 7,124 | 9,116 | 8,079 |
Unfunded Supplemental Benefit Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 258,793 | 236,773 | |
Service costs | 179 | 282 | |
Interest costs | 7,124 | 9,116 | |
Actuarial losses | 31,137 | 27,034 | |
Benefits paid | (14,448) | (14,412) | |
Projected benefit obligation at end of year | 282,785 | 258,793 | $ 236,773 |
Change in plan assets: | |||
Contributions | 14,448 | 14,412 | |
Benefits paid | (14,448) | (14,412) | |
Fair value of plan assets at end of year | 0 | 0 | |
Reconciliation of funded status, Unfunded status of the plans | 282,785 | 258,793 | |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | 282,785 | 258,793 | |
Unrecognized net actuarial loss | 129,480 | 103,624 | |
Unrecognized prior service credit | (1,071) | (4,180) | |
Amounts recognized in accumulated other comprehensive income/loss | 128,409 | 99,444 | |
Accumulated benefit obligation at end of year | $ 282,785 | $ 258,793 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service costs | $ 179 | $ 282 | $ 519 |
Interest costs | 7,124 | 9,116 | 8,079 |
Amortization of net actuarial loss | 5,281 | 3,661 | 4,828 |
Amortization of prior service credit | (3,109) | (4,070) | (4,178) |
Net periodic costs | $ 9,475 | $ 8,989 | $ 9,248 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discount rates: | |||
Projected benefit obligation | 3.27% | 4.32% | 3.61% |
Service cost | 3.71% | 4.55% | 3.78% |
Interest cost | 2.86% | 4.00% | 3.23% |
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, 2020 | Dec. 31, 2019 |
Unfunded Supplemental Benefit Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Defined benefit pension plans, Discount rate | 2.49% | 3.27% |
Employee Benefit Plans (Benefit
Employee Benefit Plans (Benefit Payments, Expected Future Service) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2021 | $ 15,417 |
2022 | 16,675 |
2023 | 16,941 |
2024 | 17,047 |
2025 | 17,095 |
Five years thereafter | $ 80,839 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | $ 6,354,822 | $ 5,913,636 |
Equity securities, estimated fair value | 464,126 | 392,318 |
Debt and Equity securities, estimated fair value | 6,818,948 | 6,305,954 |
U.S. Treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 80,846 | 143,941 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,248,808 | 1,090,839 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 199,530 | 180,090 |
Governmental agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 263,922 | 321,919 |
Governmental agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,474,618 | 3,278,258 |
U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 680,697 | 553,372 |
Foreign corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 406,401 | 345,217 |
Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 19,479 | 18,094 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 444,647 | 374,224 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 464,126 | 392,318 |
Debt and Equity securities, estimated fair value | 464,126 | 392,318 |
Level 1 | U.S. Treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Governmental agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Governmental agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Foreign corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 1 | Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 19,479 | 18,094 |
Level 1 | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 444,647 | 374,224 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 6,354,822 | 5,913,636 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 6,354,822 | 5,913,636 |
Level 2 | U.S. Treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 80,846 | 143,941 |
Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 1,248,808 | 1,090,839 |
Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 199,530 | 180,090 |
Level 2 | Governmental agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 263,922 | 321,919 |
Level 2 | Governmental agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 3,474,618 | 3,278,258 |
Level 2 | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 680,697 | 553,372 |
Level 2 | Foreign corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 406,401 | 345,217 |
Level 2 | Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Level 2 | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Equity securities, estimated fair value | 0 | 0 |
Debt and Equity securities, estimated fair value | 0 | 0 |
Level 3 | U.S. Treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Governmental agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Governmental agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | U.S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Foreign corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Debt securities, estimated fair value | 0 | 0 |
Level 3 | Preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | 0 | 0 |
Level 3 | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Equity securities, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets, Level 1 to Level 2 transfers amount | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | 0 | 0 |
Fair Value Assets Level 1 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 1 Transfers Amount | 0 | 0 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | 0 | 0 |
Fair Value Assets Level 3 To Level 2 Transfers Amount | 0 | $ 0 |
Goodwill | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recognized impairment losses | 34,200 | |
Property, Plant and Equipment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recognized impairment losses | 17,600 | |
Other Intangible Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Recognized impairment losses | $ 3,200 |
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, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 1,275,466 | $ 1,485,959 |
Deposits with banks | 45,856 | 44,422 |
Notes receivable, net | 29,912 | 18,970 |
Secured financings receivable | 748,312 | 287,459 |
Liabilities: | ||
Secured financings payable | 516,155 | 278,412 |
Notes and contracts payable | 1,010,756 | 728,232 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,275,466 | 1,485,959 |
Deposits with banks | 45,947 | 44,339 |
Notes receivable, net | 30,279 | 19,422 |
Secured financings receivable | 748,312 | 287,459 |
Liabilities: | ||
Secured financings payable | 516,155 | 278,412 |
Notes and contracts payable | 1,131,356 | 761,224 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,275,466 | 1,485,959 |
Deposits with banks | 6,092 | 4,074 |
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 | 39,855 | 40,265 |
Notes receivable, net | 0 | 0 |
Secured financings receivable | 748,312 | 287,459 |
Liabilities: | ||
Secured financings payable | 516,155 | 278,412 |
Notes and contracts payable | 1,125,128 | 756,306 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deposits with banks | 0 | 0 |
Notes receivable, net | 30,279 | 19,422 |
Secured financings receivable | 0 | 0 |
Liabilities: | ||
Secured financings payable | 0 | 0 |
Notes and contracts payable | $ 6,228 | $ 4,918 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs | $ 27.4 | ||
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 | 3,500,000 | ||
Incentive Compensation Plan, termination period, in years | 10 years | ||
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | ||
Shares issued Employee Stock Purchase Plan | 523,000 | 391,000 | 363,000 |
Shares reserved for future issuances | 1,100,000 | ||
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 | $ 63.14 | $ 51.46 | $ 54.80 |
Total fair value of shares distributed | $ 56 | $ 50.5 | $ 54.5 |
Shares vested but not distributed | 1,100,000 |
Share-Based Compensation (Costs
Share-Based Compensation (Costs Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 50,709 | $ 42,474 | $ 41,145 |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | 45,387 | 38,445 | 37,597 |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation | $ 5,322 | $ 4,029 | $ 3,548 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - RSUs - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RSU, Shares | |||
Unvested at December 31, 2019 | 1,152 | ||
Granted during 2020 | 817 | ||
Vested during 2020 | (1,024) | ||
Forfeited during 2020 | (40) | ||
Unvested at December 31, 2020 | 905 | 1,152 | |
RSU, Weighted-average grant-date fair value | |||
Unvested at December 31, 2019 | $ 49.25 | ||
Granted during 2020 | 63.14 | $ 51.46 | $ 54.80 |
Vested during 2020 | 52.93 | ||
Forfeited during 2020 | 57.97 | ||
Unvested at December 31, 2020 | $ 57.24 | $ 49.25 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Nov. 30, 2020 | |
Common stock repurchased, shares | 3.2 | |
Purchase of Company, value | $ 138.6 | |
New Share Repurchase Plan | ||
Remaining authorized amount under stock repurchase program | $ 242 | |
Maximum | New Share Repurchase Plan | ||
Stock repurchase program, authorized amount | $ 300 | |
Maximum | Prior Share Repurchase Plan | ||
Stock repurchase program, authorized amount | $ 250 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | $ (41,492) | ||
Stockholders equity attributable to noncontrolling interest, Beginning Balance | 4,518 | ||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (41,491) | $ (160,573) | $ (67,489) |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt securities | 116,558 | 164,220 | (49,661) |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 511 | ||
Change in foreign currency translation adjustment | 13,945 | 14,575 | (28,145) |
Net actuarial (loss) gain | (31,137) | (27,034) | 16,517 |
Amortization of net actuarial loss | 5,281 | 3,661 | 4,828 |
Amortization of prior service credit | (3,109) | (4,070) | (4,178) |
Tax effect | (21,016) | (32,270) | 8,105 |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | 39,541 | (41,492) | |
Stockholders equity attributable to noncontrolling interest, Ending Balance | 11,676 | 4,518 | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 39,542 | (41,491) | (160,573) |
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), debt securities, available-for-sale, adjustment, after tax, Beginning Balance | 83,117 | (42,167) | 36,783 |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt securities | 116,558 | 164,221 | (49,643) |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 511 | ||
Tax effect | (28,434) | (38,937) | 11,243 |
Accumulated other comprehensive income (loss), debt securities, available-for-sale, adjustment, after tax, Ending Balance | 171,752 | 83,117 | (42,167) |
Foreign Currency Translation Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Beginning Balance | (51,668) | (65,628) | (38,832) |
Change in foreign currency translation adjustment | 13,945 | 14,575 | (28,145) |
Tax effect | (267) | (615) | 1,349 |
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax, Ending Balance | (37,990) | (51,668) | (65,628) |
Pension Benefit Adjustment Attributable to First American Financial Corporation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Beginning Balance | (72,941) | (52,780) | (65,460) |
Net actuarial (loss) gain | (31,137) | (27,034) | 16,517 |
Amortization of net actuarial loss | 5,281 | 3,661 | 4,828 |
Amortization of prior service credit | (3,109) | (4,070) | (4,178) |
Tax effect | 7,685 | 7,282 | (4,487) |
Accumulated other comprehensive (income) Loss, defined benefit plan, after Tax, Ending Balance | (94,221) | (72,941) | (52,780) |
Accumulated Other Comprehensive Income/(loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, Beginning Balance | (41,492) | (160,575) | (67,509) |
Cumulative-effect adjustment, net of taxes | (40,550) | ||
Change in unrealized gains (losses) on debt securities | 116,558 | 164,221 | (49,643) |
Change in unrealized gains (losses) on debt securities for which credit-related portion was recognized in earnings | 511 | ||
Change in foreign currency translation adjustment | 13,945 | 14,575 | (28,145) |
Net actuarial (loss) gain | (31,137) | (27,034) | 16,517 |
Amortization of net actuarial loss | 5,281 | 3,661 | 4,828 |
Amortization of prior service credit | (3,109) | (4,070) | (4,178) |
Tax effect | (21,016) | (32,270) | 8,105 |
Accumulated other comprehensive income (loss), net of tax, Ending Balance | 39,541 | (41,492) | (160,575) |
Accumulated Other Comprehensive Income (Loss) Attributable to NCI | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Stockholders equity attributable to noncontrolling interest, Beginning Balance | 1 | 2 | 20 |
Change in unrealized gains (losses) on debt securities | (1) | (18) | |
Stockholders equity attributable to noncontrolling interest, Ending Balance | $ 1 | $ 1 | $ 2 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | $ 106,738 | $ 155,533 | $ (75,538) |
Reclassifications out of AOCI | (4,689) | (4,181) | 14,899 |
Tax effect | (21,016) | (32,270) | 8,105 |
Total other comprehensive income (loss), net of tax | 81,033 | 119,082 | (52,534) |
Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 123,930 | 167,992 | (63,910) |
Reclassifications out of AOCI | (6,861) | (3,772) | 14,249 |
Tax effect | (28,434) | (38,937) | 11,243 |
Total other comprehensive income (loss), net of tax | 88,635 | 125,283 | (38,418) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 13,945 | 14,575 | (28,145) |
Reclassifications out of AOCI | 0 | 0 | 0 |
Tax effect | (267) | (615) | 1,349 |
Total other comprehensive income (loss), net of tax | 13,678 | 13,960 | (26,796) |
Pension Benefit Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | (31,137) | (27,034) | 16,517 |
Reclassifications out of AOCI | 2,172 | (409) | 650 |
Tax effect | 7,685 | 7,282 | (4,487) |
Total other comprehensive income (loss), net of tax | $ (21,280) | $ (20,161) | $ 12,680 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of AOCI) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Credit losses recognized on debt securities | $ (511) | |||
Pretax total | 4,689 | $ 4,181 | $ (14,899) | |
Amortization of net actuarial loss | 5,281 | 3,661 | 4,828 | |
Amortization of prior service credit | 3,109 | 4,070 | 4,178 | |
Unrealized Gains (Losses) on Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) on sales of debt securities | 14,435 | 3,772 | (14,249) | |
Credit losses recognized on debt securities | (7,574) | 0 | 0 | |
Pretax total | 6,861 | 3,772 | (14,249) | |
Tax effect | (1,666) | (894) | 3,226 | |
Pension Benefit Adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Pretax total | [1] | (2,172) | 409 | (650) |
Tax effect | [1] | 576 | (109) | 170 |
Amortization of net actuarial loss | [1] | (5,281) | (3,661) | (4,828) |
Amortization of prior service credit | [1] | $ 3,109 | $ 4,070 | $ 4,178 |
[1] | Amounts are components of net periodic cost. See Note 16 Employee Benefit Plans for additional details |
Litigation and Regulatory Con_2
Litigation and Regulatory Contingencies (Narrative) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Canadian Taxing Authority | |
Loss Contingencies [Line Items] | |
Income tax authority assessment | $ 15.7 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Detail) - USD ($) $ in Thousands | Mar. 02, 2020 | Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Business acquisition cost | $ 397,600 | ||||
Operating cash and additional borrowings under credit facility | $ 160,000 | 120,000 | |||
Goodwill | 1,378,628 | $ 1,150,908 | $ 1,144,166 | ||
Revenues recognized, acquisition date, related to the acquiree | 69,600 | ||||
Pre-tax income, acquisition date, related to the acquiree | 4,500 | ||||
Business acquisition, goodwill, expected to be deductible for tax purposes | 121,900 | ||||
eClose and Fulfillment Technology | |||||
Business Acquisition [Line Items] | |||||
Business acquisition cost | $ 350,000 | ||||
Goodwill | 216,400 | ||||
Preliminary estimates recorded for property and equipment | 19,000 | ||||
Preliminary estimates recorded for other intangible assets | $ 129,000 |
Segment Financial Information_2
Segment Financial Information (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2020State | |
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 home warranty contracts | 35 |
Policy liability percentage | 59.00% |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 2,151,274 | $ 1,913,721 | $ 1,608,729 | $ 1,412,943 | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 7,086,667 | $ 6,202,061 | $ 5,747,844 |
Depreciation and amortization | 148,979 | 129,021 | 125,927 | ||||||||
Equity in earnings of affiliates, net | 5,718 | 2,836 | 2,717 | ||||||||
Income (loss) before income taxes | 382,280 | $ 243,371 | $ 225,295 | $ 72,324 | 288,513 | $ 245,338 | $ 229,497 | $ 141,670 | 923,270 | 905,018 | 609,538 |
Assets | 12,795,988 | 11,519,167 | 12,795,988 | 11,519,167 | 10,630,635 | ||||||
Investments in equity method affiliates | 63,757 | 51,928 | 63,757 | 51,928 | 54,674 | ||||||
Capital expenditures | 120,573 | 110,502 | 125,517 | ||||||||
Direct premiums and escrow fees | 2,987,525 | 2,659,273 | 2,507,669 | ||||||||
Agent premiums | 2,759,455 | 2,373,140 | 2,284,906 | ||||||||
Information and other | 1,013,360 | 787,831 | 781,467 | ||||||||
Net investment income | 221,290 | 315,413 | 230,289 | ||||||||
Net realized investment gains (losses) | 105,037 | 66,404 | (56,487) | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,068,097 | 6,181,842 | 5,752,123 | ||||||||
Direct premiums and escrow fees | 2,987,525 | 2,659,273 | 2,507,669 | ||||||||
Agent premiums | 2,759,455 | 2,373,140 | 2,284,906 | ||||||||
Information and other | 1,014,244 | 788,866 | 782,527 | ||||||||
Net investment income | 208,351 | 294,159 | 233,508 | ||||||||
Net realized investment gains (losses) | 98,522 | 66,404 | (56,487) | ||||||||
Operating Segments | Title Insurance and Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,535,674 | 5,675,952 | 5,282,781 | ||||||||
Depreciation and amortization | 141,292 | 121,643 | 119,053 | ||||||||
Equity in earnings of affiliates, net | 5,718 | 2,836 | 2,717 | ||||||||
Income (loss) before income taxes | 1,025,506 | 912,213 | 655,003 | ||||||||
Assets | 11,922,133 | 10,349,145 | 11,922,133 | 10,349,145 | 9,613,658 | ||||||
Investments in equity method affiliates | 63,757 | 51,928 | 63,757 | 51,928 | 54,674 | ||||||
Capital expenditures | 116,559 | 100,826 | 112,726 | ||||||||
Direct premiums and escrow fees | 2,489,992 | 2,188,056 | 2,052,951 | ||||||||
Agent premiums | 2,759,455 | 2,373,140 | 2,284,906 | ||||||||
Information and other | 1,000,805 | 776,124 | 770,725 | ||||||||
Net investment income | 199,228 | 282,910 | 223,318 | ||||||||
Net realized investment gains (losses) | 86,194 | 55,722 | (49,119) | ||||||||
Operating Segments | Specialty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 532,423 | 505,890 | 469,342 | ||||||||
Depreciation and amortization | 7,535 | 7,225 | 6,721 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | (25,284) | 66,576 | 26,999 | ||||||||
Assets | 645,339 | 639,763 | 645,339 | 639,763 | 600,268 | ||||||
Investments in equity method affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 4,014 | 9,676 | 12,791 | ||||||||
Direct premiums and escrow fees | 497,533 | 471,217 | 454,718 | ||||||||
Agent premiums | 0 | 0 | 0 | ||||||||
Information and other | 13,439 | 12,742 | 11,802 | ||||||||
Net investment income | 9,123 | 11,249 | 10,190 | ||||||||
Net realized investment gains (losses) | 12,328 | 10,682 | (7,368) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 20,760 | 21,896 | (3,115) | ||||||||
Depreciation and amortization | 152 | 153 | 153 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | (76,952) | (73,771) | (72,464) | ||||||||
Assets | 737,127 | 575,051 | 737,127 | 575,051 | 431,222 | ||||||
Investments in equity method affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (2,190) | (1,677) | (1,164) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Equity in earnings of affiliates, net | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 0 | 0 | 0 | ||||||||
Assets | (508,611) | (44,792) | (508,611) | (44,792) | (14,513) | ||||||
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | $ 2,151,274 | $ 1,913,721 | $ 1,608,729 | $ 1,412,943 | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 7,086,667 | $ 6,202,061 | $ 5,747,844 |
Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 6,725,082 | 5,880,514 | 5,453,959 | ||||||||
Long-lived assets | 962,287 | 989,876 | 962,287 | 989,876 | 1,059,667 | ||||||
Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 341,710 | 300,685 | 298,059 | ||||||||
Long-lived assets | 59,504 | 65,625 | 59,504 | 65,625 | 61,615 | ||||||
Title Insurance and Services | Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 6,192,659 | 5,374,624 | 4,984,617 | ||||||||
Long-lived assets | 956,569 | 982,397 | 956,569 | 982,397 | 994,023 | ||||||
Title Insurance and Services | Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 341,710 | 300,685 | 298,059 | ||||||||
Long-lived assets | 59,504 | 65,625 | 59,504 | 65,625 | 61,615 | ||||||
Specialty Insurance | Domestic | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenues from external customers | 532,423 | 505,890 | 469,342 | ||||||||
Long-lived assets | 5,718 | 7,479 | 5,718 | 7,479 | 65,644 | ||||||
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 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $ 2,151,274 | $ 1,913,721 | $ 1,608,729 | $ 1,412,943 | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | $ 7,086,667 | $ 6,202,061 | $ 5,747,844 | ||||||||
Income before income taxes | 382,280 | 243,371 | 225,295 | 72,324 | 288,513 | 245,338 | 229,497 | 141,670 | 923,270 | 905,018 | 609,538 | ||||||||
Net income | 281,365 | 183,591 | 171,694 | 63,846 | 224,606 | 188,167 | 187,271 | 109,804 | 700,496 | 709,848 | 475,898 | ||||||||
Less: Net income attributable to noncontrolling interests | 1,074 | 1,312 | 1,039 | 642 | 608 | 985 | 616 | 229 | 4,067 | 2,438 | 1,402 | ||||||||
Net income attributable to the Company | $ 280,291 | $ 182,279 | $ 170,655 | $ 63,204 | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | $ 696,429 | $ 707,410 | $ 474,496 | ||||||||
Net income per share attributable to the Company’s stockholders: | |||||||||||||||||||
Basic | $ 2.50 | [1] | $ 1.62 | [1] | $ 1.52 | [1] | $ 0.56 | [1] | $ 1.98 | [1] | $ 1.65 | [1] | $ 1.65 | [1] | $ 0.97 | [1] | $ 6.18 | $ 6.26 | $ 4.21 |
Diluted | $ 2.49 | [1] | $ 1.62 | [1] | $ 1.52 | [1] | $ 0.55 | [1] | $ 1.97 | [1] | $ 1.65 | [1] | $ 1.64 | [1] | $ 0.97 | [1] | $ 6.16 | $ 6.22 | $ 4.19 |
[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, 2020USD ($) | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | $ 6,893,196 | |
Market value | 7,215,278 | |
Amount at which shown in the balance sheet | 7,214,820 | |
Deposits with Banks | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 45,856 | |
Market value | 45,947 | |
Amount at which shown in the balance sheet | 45,856 | |
U.S. Treasury Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 80,172 | |
Market value | 80,846 | |
Amount at which shown in the balance sheet | 80,846 | |
Municipal Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 1,168,425 | |
Market value | 1,248,808 | |
Amount at which shown in the balance sheet | 1,248,808 | |
Foreign Government Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 194,042 | |
Market value | 199,530 | |
Amount at which shown in the balance sheet | 199,530 | |
Governmental Agency Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 254,248 | |
Market value | 263,922 | |
Amount at which shown in the balance sheet | 263,922 | |
Governmental Agency Mortgage-Backed Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 3,401,737 | |
Market value | 3,474,618 | |
Amount at which shown in the balance sheet | 3,474,618 | |
U.S. Corporate Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 637,808 | |
Market value | 680,697 | |
Amount at which shown in the balance sheet | 680,697 | |
Foreign Corporate Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 384,572 | |
Market value | 406,401 | |
Amount at which shown in the balance sheet | 406,401 | |
Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 6,121,004 | |
Market value | 6,354,822 | |
Amount at which shown in the balance sheet | 6,354,822 | |
Equity Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 376,320 | |
Market value | 464,126 | |
Amount at which shown in the balance sheet | 464,126 | |
Notes Receivable, Net | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 29,912 | |
Market value | 30,279 | |
Amount at which shown in the balance sheet | 29,912 | |
Other Investments | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 320,104 | |
Market value | 320,104 | [1] |
Amount at which shown in the balance sheet | $ 320,104 | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 1,275,466 | $ 1,485,959 | ||
Income taxes receivable | 951 | 10,967 | ||
Other investments | 350,016 | 239,067 | ||
Deferred income taxes | 14,484 | 18,283 | ||
Other assets | 287,887 | 246,857 | ||
Total assets | 12,795,988 | 11,519,167 | $ 10,630,635 | |
Liabilities and Equity | ||||
Accounts payable and other accrued liabilities | 979,733 | 820,356 | ||
Pension costs and other retirement plans | 452,093 | 439,390 | ||
Income taxes payable | 53,784 | 25,475 | ||
Deferred income taxes | 291,220 | 266,108 | ||
Notes and contracts payable | 1,010,756 | 728,232 | ||
Total liabilities | 7,874,340 | 7,094,165 | ||
Commitments and contingencies | ||||
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—[0] shares and 112,476 shares | 1 | 1 | ||
Additional paid-in capital | 2,214,935 | 2,300,926 | ||
Retained earnings | 2,655,495 | 2,161,049 | ||
Accumulated other comprehensive income (loss) | 39,541 | (41,492) | ||
Total stockholders’ equity | 4,909,972 | 4,420,484 | ||
Noncontrolling interests | 11,676 | 4,518 | ||
Total equity | 4,921,648 | 4,425,002 | $ 3,745,388 | $ 3,483,025 |
Total liabilities and equity | 12,795,988 | 11,519,167 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 206,933 | 341,691 | ||
Dividends receivable | 30,000 | 0 | ||
Due from subsidiaries, net | 284,929 | 47,798 | ||
Income taxes receivable | 951 | 10,967 | ||
Investment in subsidiaries | 5,945,820 | 5,215,056 | ||
Other investments | 94,001 | 77,000 | ||
Deferred income taxes | 14,484 | 18,283 | ||
Other assets | 120,718 | 109,228 | ||
Total assets | 6,697,836 | 5,820,023 | ||
Liabilities and Equity | ||||
Accounts payable and other accrued liabilities | 22,871 | 19,455 | ||
Pension costs and other retirement plans | 415,796 | 376,393 | ||
Income taxes payable | 53,784 | 25,475 | ||
Deferred income taxes | 291,220 | 266,108 | ||
Notes and contracts payable | 992,517 | 707,590 | ||
Total liabilities | 1,776,188 | 1,395,021 | ||
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—[0] shares and 112,476 shares | 1 | 1 | ||
Additional paid-in capital | 2,214,935 | 2,300,926 | ||
Retained earnings | 2,655,495 | 2,161,049 | ||
Accumulated other comprehensive income (loss) | 39,541 | (41,492) | ||
Total stockholders’ equity | 4,909,972 | 4,420,484 | ||
Noncontrolling interests | 11,676 | 4,518 | ||
Total equity | 4,921,648 | 4,425,002 | ||
Total liabilities and equity | $ 6,697,836 | $ 5,820,023 |
Schedule II - Condensed Balan_2
Schedule II - Condensed Balance Sheets Parent Company (Parenthetical) (Detail) - $ / shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 110,353 | 112,476 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 110,353 | 112,476 |
Schedule II - Condensed Stateme
Schedule II - Condensed Statements Of Income Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||||||||||
Net realized investment gains (losses) | $ 105,037 | $ 66,404 | $ (56,487) | ||||||||
Total revenues | $ 2,151,274 | $ 1,913,721 | $ 1,608,729 | $ 1,412,943 | $ 1,728,664 | $ 1,671,196 | $ 1,498,620 | $ 1,303,581 | 7,086,667 | 6,202,061 | 5,747,844 |
Expenses: | |||||||||||
Income taxes | 222,774 | 195,170 | 133,640 | ||||||||
Net income | 281,365 | 183,591 | 171,694 | 63,846 | 224,606 | 188,167 | 187,271 | 109,804 | 700,496 | 709,848 | 475,898 |
Less: Net income attributable to noncontrolling interests | 1,074 | 1,312 | 1,039 | 642 | 608 | 985 | 616 | 229 | 4,067 | 2,438 | 1,402 |
Net income attributable to the Company | $ 280,291 | $ 182,279 | $ 170,655 | $ 63,204 | $ 223,998 | $ 187,182 | $ 186,655 | $ 109,575 | 696,429 | 707,410 | 474,496 |
Parent Company | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 603,900 | 384,799 | 394,742 | ||||||||
Other income (losses) | 14,017 | 21,660 | (2,986) | ||||||||
Net realized investment gains (losses) | 6,515 | 0 | 0 | ||||||||
Total revenues | 624,432 | 406,459 | 391,756 | ||||||||
Expenses: | |||||||||||
Other expenses | 68,830 | 66,984 | 40,415 | ||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 555,602 | 339,475 | 351,341 | ||||||||
Income taxes | 134,060 | 73,209 | 77,031 | ||||||||
Equity in undistributed earnings of subsidiaries | 278,954 | 443,582 | 201,588 | ||||||||
Net income | 700,496 | 709,848 | 475,898 | ||||||||
Less: Net income attributable to noncontrolling interests | 4,067 | 2,438 | 1,402 | ||||||||
Net income attributable to the Company | $ 696,429 | $ 707,410 | $ 474,496 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net income | $ 281,365 | $ 183,591 | $ 171,694 | $ 63,846 | $ 224,606 | $ 188,167 | $ 187,271 | $ 109,804 | $ 700,496 | $ 709,848 | $ 475,898 |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 88,248 | 125,283 | (38,418) | ||||||||
Unrealized gains on debt securities for which credit-related portion was recognized in earnings | 387 | 0 | 0 | ||||||||
Foreign currency translation adjustment | 13,678 | 13,960 | (26,796) | ||||||||
Pension benefit adjustment | (21,280) | (20,161) | 12,680 | ||||||||
Total other comprehensive income (loss), net of tax | 81,033 | 119,082 | (52,534) | ||||||||
Comprehensive income | 781,529 | 828,930 | 423,364 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 4,067 | 2,437 | 1,384 | ||||||||
Comprehensive income attributable to the Company | 777,462 | 826,493 | 421,980 | ||||||||
Parent Company | |||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net income | 700,496 | 709,848 | 475,898 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on securities | 88,248 | 125,283 | (38,418) | ||||||||
Unrealized gains on debt securities for which credit-related portion was recognized in earnings | 387 | ||||||||||
Foreign currency translation adjustment | 13,678 | 13,960 | (26,796) | ||||||||
Pension benefit adjustment | (21,280) | (20,161) | 12,680 | ||||||||
Total other comprehensive income (loss), net of tax | 81,033 | 119,082 | (52,534) | ||||||||
Comprehensive income | 781,529 | 828,930 | 423,364 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 4,067 | 2,437 | 1,384 | ||||||||
Comprehensive income attributable to the Company | $ 777,462 | $ 826,493 | $ 421,980 |
Schedule II - Condensed State_3
Schedule II - Condensed Statements Of Cash Flows Parent Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Cash used for operating activities | $ 1,084,659 | $ 913,089 | $ 793,165 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | (392,541) | (19,674) | (79,171) |
Proceeds from sales of property and equipment | 13,951 | 647 | 2,630 |
Cash used for investing activities | (1,415,143) | (452,232) | (1,220,624) |
Cash flows from financing activities: | |||
Net proceeds from issuance of unsecured senior notes | 443,936 | ||
Borrowings under unsecured credit facility | 120,000 | 160,000 | |
Repayments of borrowings under unsecured credit facility | (280,000) | (160,000) | |
Net payments in connection with share-based compensation | (1,489) | (1,187) | (4,105) |
Repurchases of Company shares | (138,603) | (2,066) | (18,801) |
Payments of cash dividends | (198,663) | (188,440) | (178,487) |
Cash provided by (used for) financing activities | 113,924 | (445,069) | 514,735 |
Net (decrease) increase in cash and cash equivalents | (210,493) | 18,830 | 79,903 |
Cash and cash equivalents—Beginning of year | 1,485,959 | 1,467,129 | 1,387,226 |
Cash and cash equivalents—End of year | 1,275,466 | 1,485,959 | 1,467,129 |
Parent Company | |||
Cash flows from operating activities: | |||
Cash used for operating activities | 600,217 | 356,116 | 381,516 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | 0 | (14,845) | (67,061) |
Net payments to subsidiaries | (668,068) | (58,193) | (19,676) |
Investments in unconsolidated entities | (19,000) | (77,000) | 0 |
Net change in other investments | 63 | 0 | 0 |
Proceeds from sales of property and equipment | 6,849 | 0 | 0 |
Cash used for investing activities | (680,156) | (150,038) | (86,737) |
Cash flows from financing activities: | |||
Net proceeds from issuance of unsecured senior notes | 443,936 | 0 | 0 |
Borrowings under unsecured credit facility | 120,000 | 160,000 | 0 |
Repayments of borrowings under unsecured credit facility | (280,000) | (160,000) | 0 |
Net payments in connection with share-based compensation | (1,489) | (1,187) | (4,105) |
Repurchases of Company shares | (138,603) | (2,066) | (18,801) |
Payments of cash dividends | (198,663) | (188,440) | (178,487) |
Cash provided by (used for) financing activities | (54,819) | (191,693) | (201,393) |
Net (decrease) increase in cash and cash equivalents | (134,758) | 14,385 | 93,386 |
Cash and cash equivalents—Beginning of year | 341,691 | 327,306 | 233,920 |
Cash and cash equivalents—End of year | $ 206,933 | $ 341,691 | $ 327,306 |
Schedule II - Notes to Condense
Schedule II - Notes to Condensed Financial Statements Parent Company (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash dividends received from subsidiaries | $ 573.9 | $ 384.8 | $ 394.4 |
Schedule III - Balance Sheet Ca
Schedule III - Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | $ 35,281 | $ 33,114 |
Claims reserves | 1,178,004 | 1,063,044 |
Deferred revenues | 271,977 | 252,331 |
Title Insurance and Services | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 206 | 187 |
Claims reserves | 1,090,362 | 987,376 |
Deferred revenues | 5,400 | 7,058 |
Specialty Insurance | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 35,075 | 32,927 |
Claims reserves | 87,642 | 75,668 |
Deferred revenues | $ 266,577 | $ 245,273 |
Schedule III - Income Statement
Schedule III - Income Statement Captions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | $ 5,746,980 | $ 5,032,413 | $ 4,792,575 | |
Net investment income | [1] | 326,327 | 381,817 | 173,802 |
Loss provision | 579,507 | 446,040 | 452,633 | |
Amortization of deferred policy acquisition costs (credits) | (2,148) | (537) | (1,263) | |
Other operating expenses | 1,119,108 | 923,298 | 900,208 | |
Premiums written | 519,946 | 482,056 | 459,098 | |
Operating Segments | Title Insurance and Services | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 5,249,447 | 4,561,196 | 4,337,857 | |
Net investment income | [1] | 285,422 | 338,632 | 174,199 |
Loss provision | 262,456 | 182,450 | 173,520 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | (125) | |
Other operating expenses | 999,701 | 805,480 | 793,364 | |
Premiums written | 0 | 0 | 0 | |
Operating Segments | Specialty Insurance | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 497,533 | 471,217 | 454,718 | |
Net investment income | [1] | 21,451 | 21,931 | 2,822 |
Loss provision | 317,051 | 263,590 | 279,113 | |
Amortization of deferred policy acquisition costs (credits) | (2,148) | (537) | (1,138) | |
Other operating expenses | 83,104 | 80,705 | 74,025 | |
Premiums written | 519,946 | 482,056 | 459,098 | |
Corporate | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 0 | 0 | 0 | |
Net investment income | [1] | 20,760 | 21,896 | (3,115) |
Loss provision | 0 | 0 | 0 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | 37,187 | 38,148 | 33,879 | |
Premiums written | 0 | 0 | 0 | |
Eliminations | ||||
Supplementary Insurance Information By Segment [Line Items] | ||||
Premiums and escrow fees | 0 | 0 | 0 | |
Net investment income | [1] | (1,306) | (642) | (104) |
Loss provision | 0 | 0 | 0 | |
Amortization of deferred policy acquisition costs (credits) | 0 | 0 | 0 | |
Other operating expenses | (884) | (1,035) | (1,060) | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Title Insurance and Services | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $ 5,264,868 | $ 4,573,715 | $ 4,353,130 |
Ceded to other companies | 15,839 | 13,103 | 16,398 |
Assumed from other companies | 418 | 584 | 1,125 |
Premiums and escrow fees | $ 5,249,447 | $ 4,561,196 | $ 4,337,857 |
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 | $ 507,414 | $ 482,820 | $ 466,245 |
Ceded to other companies | 9,881 | 11,603 | 11,527 |
Assumed from other companies | 0 | 0 | 0 |
Premiums and escrow fees | $ 497,533 | $ 471,217 | $ 454,718 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 0 | $ 0 | $ 0 | |
Additions Charged to costs and expenses | 0 | 0 | 0 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | 0 | 0 | 0 | |
Balance at end of period | 0 | 0 | 0 | |
Reserve Deducted From Accounts Receivable | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 12,676 | 14,470 | 14,771 | |
Additions Charged to costs and expenses | 6,640 | 4,125 | 5,039 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | [1] | 5,322 | 5,919 | 5,340 |
Balance at end of period | 13,994 | 12,676 | 14,470 | |
Reserve For Known And Incurred But Not Reported Claims | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 1,063,044 | 1,042,679 | 1,028,933 | |
Additions Charged to costs and expenses | 579,507 | 446,040 | 452,633 | |
Additions Charged to other accounts | 6,787 | (10,354) | 11,869 | |
Deductions from reserve | [2] | 471,334 | 415,321 | 450,756 |
Balance at end of period | 1,178,004 | 1,063,044 | 1,042,679 | |
Reserve Deducted From Notes Receivable | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 343 | 343 | 510 | |
Additions Charged to costs and expenses | 0 | 0 | 167 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | 0 | 0 | 334 | |
Balance at end of period | 343 | 343 | 343 | |
Reserve Deducted From Deferred Income Taxes | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 9,846 | 10,621 | 10,333 | |
Additions Charged to costs and expenses | 0 | 0 | 288 | |
Additions Charged to other accounts | 0 | 0 | 0 | |
Deductions from reserve | 435 | 775 | 0 | |
Balance at end of period | $ 9,411 | $ 9,846 | $ 10,621 | |
[1] | Amount represents accounts written off, net of recoveries. | |||
[2] | Amount represents claim payments, net of recoveries. |