FAF - Earnings call transcript Q4 2021 | First American Financial Corporation

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Operator

Greetings, and welcome to the First American Financial Corporation's Fourth Quarter and Full-Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. A copy of today's press release is available on First American's website at www.firstam.com/investor. (XXX) call from recorded and ID the short by the available will for XXXXXXXX. that XXX-XXXX time replay (XXX) for company's dialing note is the and being be a and Please enter or conference XXX-XXXX investor website

Relations, We Investor the Vice turn introductory an now over to make will Barberio, statement. Craig call President, to

Craig Barberio

Good earnings conference XXXX quarter and morning, year-end everyone, and welcome to First American's fourth call.

Chairman Officer of call will Company's be Gilmore, and Joining recently Ken today Executive appointed and Mark Directors; new on the of President Seaton, us American's Executive Officer. Chief the Financial Officer; Former Board Dennis First Vice Chief DeGiorgio, Chief and Executive

circumstances Some they undertake statements not speak differ the forward-looking the in and statements date statements not made statements. to are forward-looking forward-looking statements are to update forward-looking these Company may to as does results events that fact. reflect contain the that relate after set that forth the the from of those exist cause made, These of only Risks do and date occur today made. historical statements forward-looking or may strictly uncertainties or materially current to

and please in SEC For these on risks earnings and Factors our filings. Risk to more this morning's uncertainties, release Form XX-K information subsequent the discussed refer and

to efficiency relative contains performance and of financial presentation provide relative Company's measures operational earlier non-GAAP into certain periods the and Our additional the today that competitors. we insight believe to Company the

our I turn release, over which Dennis most For this earnings refer comparable available Gilmore. please more call with on GAAP to including presentation and reconciliation details these directly the website to will the measures, on to non-GAAP www.firstam.com. financial morning's now at is financials,

Dennis Gilmore

and joining Thanks, thank you for Craig. Good call. our morning

transformation the to has record our service Chief promoted has to XX American DeGiorgio many capitalize company that and grow of past continue lead the Officer. been and industry. board to addition our to I'm Chairman that honored the employees, In team serve understanding settlement Ken's has vision, Ken will lead Chairman, business on skills now title the Director. years and Under our remain has its to on will directors, our on immediate and his earnings, Over request will of digital continue opportunities Lead business. the to to we of he his First Ken Kennedy our the customers board Ken of as of acquired an board to American Parker in-depth continue our company's Executive insurance announced At company. President, strategic our shareholders, Emeritus recently as demonstrates and and insight to Chairman the First leadership,

privilege years XX CEO, had work alongside First people. the to great as American's my I've During incredible

culture our company people driven has success. that first Our puts

they'll times, many I run our performance. care business customer. our we said his will of people our shareholders. on all our I've our will continue efficiently, As call I'd and our we Ken the raise when now over to And attain to that first; take deliver to like the employees, culture the exceptional put Ken. of when team results turn and will to leadership they and bar superior know we we do

Ken DeGiorgio

decades employees, Dennis. dedication and I recognize you of your our leadership Thank American's over On First you, thank with for inspirational XX,XXX behalf three your want and company. to nearly

total world-class XX-year an while culture, return on your annualized has set XX.X% the shareholder bar delivering focus fostering during high. as a CEO Your tenure of

not change. success. to to over that a guide title us we our settlement will premier will insurance the served strategy be vision, the to and achieve has today, for we company, strategy are vision company our the And well services us developed to for that has future guided vision Your a where that decade continue

and to We title and compatible vision. settlement acquisition our grow including that continue business, culture core to are our will of with profitably companies innovation strive the advance and through our

We have manage will to actively that our data strategic continue to will title again, strengthen we a Thank Dennis. our and business businesses to and settlement continue we invest advantage in advantage by are you business. and leveraging process complementary and where

will Your impact on First American be lasting.

record. our investment to share XX.X% excluding record $X.X off was gains, financial Turning earnings margin Even EPS XXXX capped per of results, record yet net $XX.XX. of record $X.XX Title of billion, revenue another and

than extraction data and our U.S. ongoing X,XXX more of operational our our is plants, closing our are title in critical the the initiatives, it we we expand on to fuels growth. efforts, proprietary XX% that drive title achievements, nearly technology, to This to our our of maintaining estate that of be plant we population. intention end will the as focus announced proud currently the automation While counties continues efficiency future real footprints XXX experience. are XXXX, data of digitize covering the At by our year. title these to things beginning X,XXX Leveraging efforts

and data, in Lode can't announced the a important automate Last leader transaction markets have company XX with states, title an Holding Mother title we across an you You Company, is unless data. key many to in XX we for agreement us offices undisputed industry's California, are the Arizona. including month, of ways. and acquire Lode Texas Mother

amazing welcome our the talent organization. to First, opportunity we have to

as further we their Lode's our brands among within are best distribution network expand estate real Mother Second, communities. XX respective the

coming for in title which efforts. is Lode in a is a Mother welcome to future. American family step excited to detail. transaction multi-brand to provide months, together regulatory we growth growing our forward additional We're accelerate to look and is The key that Lode after and our First Mother will the the awaiting in approval will strategy close company the Lastly, expected

outlook In of terms transition for. it of XXXX, year are will the a be we well-positioned for

investment to commercial to wane rates a account continue decline. the short-term for market offset But increased will as revenue expect tick purchase income rates favorable. approximately and our due Refinance our in XX% in direct which rise help mortgage up. We volumes conditions will businesses, we believe remain to of

higher and As believe competitive short-term higher a and as and refinance X% relative rates balances, will our opened day, our Exchange advantage from serves rates volumes In from a We escrow purchase January cash of XXXX strong when benefit income January to is decline increase we orders deposits, drive hedge per and natural bank portfolio. rise, we X% from mortgage bank investment X,XXX lower. a January, XXXX, XXXX. a

what Our we day in were December. steady X,XXX refinance with orders experienced per

I'd turn Now Mark call for to discussion results. more detailed over to a financial of our the like

Mark Seaton

quarters Included excellent earned investment We We're were Ken. report this $X.XX in quarter. of net result $X.XX to this results Thank you, gains. pleased diluted per share.

compared was gains, business. business. earned the experienced U.S. of increase start Revenue Excluding we our transactions year. with year. closed was than terms billion, in share. per Title We last these I'll XX% with premium due XXXX diluted up part asset quarter $XXX,XXX our $X.XX a deal XX% across our $X.X in to geography, size. of commercial revenue million, record a up in board in same We with title quarter segment over the Commercial strength from in last the greater XXX $XXX class and XX

X% up achieved over by For number prior per revenue, quarter our in average revenue was driven X% billion our a in $X closed. Purchase during of generated the decline revenue increase order commercial in partially XXXX a the in orders by record offset X% the year, by XX%. business the eclipsing

orders strong QX which tenant purchase due release Our XXXX, to of an experienced from declined of pandemic. unusually in demand the the quarter

fourth to to from quarter year at the in year. up a orders due purchase mortgage normalized quarter agency of XX% two-year revenue declined increase last XX% revenue last the record this trends a XX% rates. were relative Looking the more up business, relative our In XXXX. Refinance billion closed was $X to

agent reporting in experiencing to are in lag revenues QX growth quarter, economic approximately Given one of remittances related activity. the we

balances, in $X deposits, generate portfolio on floating Revenue Exchange additional lower other deposit balances current where within XX $XX our to the million, and to other If ServiceMac demand XX% lending Reserve recently cash due $XX was income that of due over increase information income up XX.X%. will the funds Services escrow estimate we investment of margin mitigation bank to year. was rate, deposits, $XXX billion Federal in investment we completed our have loss revenues from balances. and X% the the rate segment acquisition million a Title increase higher growth XXXX million and segment to primarily the federal for investment cash income Our income rate based products. million basis from Investment annualized the point primarily and securities. down warehouse relative Insurance company's We and a was the were last business Title expect equate Title Pretax segment. company's $XX to our in raises the interest to to

home warranty million, Turning with XX.X% year. $XX the activity prior-year down was our primarily up X% Revenue million to the claims income from segment. $XXX as in from Insurance rose elevated home in XX.X%. loss $XX in to totaled warranty compared million to Specialty due last business rate Pretax

full forecasted had business completed expect our reduced of income as of XX% due property this in had income insurance than to to state a is the $X a quarter. of casualty of tax in down lower tax. loss declined the the pretax taxes which XX% subject a quarter larger and quarter casualty our policies-in-force year, of XX.X% and normalized result this for we the was property the wind beginning generally than effective rate rate year. the and The year-end, since third be to tax Our quarter, million primarily state by At of business not

investment quarter, at in PropTech $X of $XX our equities working gains flow prior-year, of of to down our gains of $XX decline net from in accounts. record In fourth million we for and million gains $XX quarter, in an offset a price gains the million value shares $XX related in quarter, market XXX,XXX basis. million This million the average change the was three to in on consolidated $XX.XX. $XXX due a Those stake generated portfolio. of were fourth from we of Cash capital repurchased million total public a a the Offerpad. XX% investments, by We operations

So approximately for total XXX,XXX of a far in QX, we shares, repurchased million. $XX

secured ratio target Our to debt-to-capital or than of financings payable XX.X% slightly of our XXst XX.X% excluding XX%. higher as ratio December XX% was

your call questions. Now I operator take to the over turn to the would like to back

Operator

you. Thank

be session. Instructions]. We a [Operator will now conducting question-and-answer

from with comes question first proceed Mark your with Barclays. DeVries question. Our Please

Mark DeVries

your Yes, Dennis and thank congratulations, roles. Ken you and on new

were appreciate been you a the Ken, there is FAF long doing at you've And time. well. for I also kind of quite joining So when time

focused of a of any of there's is anything there your or you're [ph] like ancestor if early get on? to levels whether different fix of broke, on kind interested I'm thoughts So investment your of that it But kind sense don't sure it. kind didn't priorities new

Ken DeGiorgio

comments. title the XX Mark process initial thanks working vision, on in years with don't we're his going And Yes, side our advantage well the demonstrated leverage invest title company as to and We anticipate premier as the years at business, us. And, our grow and has execute strategy. be I for settlement dramatic of remain obviously, our our going is services benefit the for Yes, business. that data Dennis's and to complementary Dennis vision shift by your our business and XX to that kind strategy, and for I've execute same And worked any that so initiated for in settlement to to the and CEO. got company. he to for to last to core results be the on that vision is been the

public I'll as that So to I different changes. going we're on But be market like be the all is going I and I team, our the to think my including well, see the going it's focus team to he initiate in any need Dennis best there's any the and is change. legacies We he team anything has other And we're one the Dennis's, Mark thing dramatically lasting Obviously, going who know in probably an of many don't know, built, which, and with so includes of things is CFO opinion really built to strategy here than doing built you done. what company. forward don't dramatic that Seaton, mine. add the by incredible and way, the strategy,

Mark DeVries

the Mark, the rates. question sensitivity Okay, turning a on Mark. to of great. the income And then rising investment just

Kind I of all, to $XX for -- the million think what you said the the outcome bps. every annual of $XX difference $XX incremental of what's between First million gets of $XX XX million million? you wide, and kind

Mark Seaton

lot there's But -- that that. rates lower with our of now, They we loans. which don't $XX got end got think I need one high-end come don't make of be we've And our right have up more we at Yes, pieces. got don't discussions increases, as probably thanks of moving we've expect, best moving as two other be range And value all deposits. low. still that the in now. at they more banks just banks with Mark. estimate -- are we'll or that's deposits, got right There's pieces of a cash, Fed -- as really certainly, most the they no to range. raise, might But floaters, our that why we've the we continues our That's -- of We maybe the to first really deposits. our bank lot banks, we've escrow XXXX, the rate think a the operating our million,

a start take increases of it really to deposits. for So might them couple demanding

So the the the do of and levels. might be the overtime, I at initial can of stay deposit of at range, we'll that assumes raises be we current our certainly, balances low-end the range, but high-end think, think course

Mark DeVries

it's or rates. linear? somewhere the $XXX have So little got it X.X bit of that between accurate, the you with more other words, the forward-curve almost, end year Okay, by income? fairly ramps run and it million rate could And in But increases, in sounds that general, incremental million investment if implied it. guidance of is $XX like by the a is the so

Mark Seaton

And Yes, I again, at so more fairly yes, a But be a on the business. in title bit basis. overall, annualized think it's the bit an beginning little it'll the at less little I end. linear. think

Operator

your proceed question with with Please next is Our with Andrew Suisse. Kligerman Credit question.

Andrew Kligerman

Maybe for affect you'll How million how to you staying deposits. available on running? sort think could bank have do and your make of beyond? soon could build -- you've agents in to bank $XX think the it you $XX that morning. efforts I component deposits in How to good much up undergone you just much that Hey, how million investment in the incremental some income? of garner that And income, out make and XXXX do that to know

Mark Seaton

that for Andrew. Yes, question, thanks

been So the $XX that's same. we've talking to million the again, about here, $XX million stay level that deposit assuming,

deposits. growing the through Now, out bank, it we're and you've pointed our that fact we're growing our agency

our agency had the of billion the about year, of we $X of had As bank. of million end we $XXX deposits. at almost deposits And

big over So the a to maybe but it's material us, that XXXX I we funds agents growing, we don't double it'll or think for this It's having year. a bank think for not going have area for huge will big, time, think XXXX. be is impact. that's even growth deposits But

Andrew Kligerman

for little so -- you And the outlook with year. what it. know the XX% and quarter personnel of costs versus fourth year-over-year? it personnel it up X% just costs last Maybe a Got up approximately much driving color was what's on more

Ken DeGiorgio

then think and note some expect more But think remain that don't any numbers. -- steady. we I on that going pressure. I more definitive we're costs can personnel Andrew, But finish chime in, inflation to I'll costs, I Mark mystery to will with personnel have Well, off there's

cost the we're structure going the And So and costs, to very our market. done with necessary watch obviously, that of some personnel there our adjust -- risk increased going we is as as historically, to entire then, cost into we've personnel closely to year.

Andrew Kligerman

on So maybe should just hold steady? even wage, pretty an inflationary cost it

Mark Seaton

Yes.

in we that year. think the the we XXXX dynamic hiring think were is appropriate. mean, is I that have now headcount current we that I one we had throughout

just headcount that run XXXX, personal costs next properly of have a because at acquisitions the to have dynamics. we and because we year, and our also, have you run it so they're Ken -- when were too, have think cost fact more. we And said, going in did going we increase we're our look rate year. of XXXX, we're, going basis, personnel to as that through in even on we're that staffed hiring higher the But we're just the rate And to

Operator

proceed Hughes with question Please Our from Truist. your Mark with question. next comes

Mark Hughes

you. you thank a steady in talking ratio? costs And Yes, that, absolute follow-up morning. talking you to as when on personnel are are you just Good say terms,

Mark Seaton

both. costs when next on personal absolute And mean higher that have is our really we to of well costs as metric, year. a an a Well, net I personnel as our you depth, at going basis. we're [indiscernible] look at percentage which revenue, operating look

Mark Hughes

purchase orders January per hear year-over-year did you were that X,XXX Okay. that properly day. you change? what And And in was then,

Mark Seaton

And year it the strong pandemic. day. of yes, remember the a versus because last pent-up January -- this prior roughly X,XXX But a January, X% was year. It about demand it very have down we was was was because of

down certainly from it's favorable. a it's year, So more a lot when you two-year trend got last but

Mark Hughes

per The are strong. order Yes. commercial revenue quite

kind that is about You of talked large orders. that or reality? Did demand the unusual new pent-up

Mark Seaton

had extraordinary -- we've and is remarks I mentioned Well, I'd script, record This commercial. say fourth by this year my the fourth best for on a was my had, I in we ever quarter. as far mean, on the an quarter

So one quarter. what in hand; fourth never anything experienced on the the experienced we've we like

fact into for a commercial other pipeline have activity, year. are to very leading we're I the that strong indicator On evidenced going of mean, the commercial as quarter. from the really haven't months, first we have hand, deposits, very heading which we that fourth know good six declined our a activity, much by this escrow the

seen we've months tell. our it's there. But a we have in continue. with going lot there's -- to that we're know out rising of that, transactions in we six think our this capital we're And So can customers conversation a good to hard that commercial after

Mark Hughes

does just some The sort is strategy, deal? Lode shift not acquisition, Mother that in but it growing Or of good similar opportunity? Then represent more a for preference I a one could. if

Ken DeGiorgio

Yes, and well, question. this is Ken, the for thanks

and don't of think very along all it a their and company then opportunities I And that first the people culture. industry, top that their and the in was often. by -- come at of fantastic opportunity scope, their on size like I compatible and quality reputation mean their foremost, a that just of

suggested brand. Republic as a) haven't approach us is do to opportunity. to Mother rank don't to company, reason of multi-brand was a which other a to our markets penetrate an is able whatever been into That's premier not strategy. Lode an we think or that really unique earlier penetrate their I we say in b) including But yet have see But others I Texas, a like that for to for four as penetrate So title opportunity take it brands Title have able of we market. advantage and to we the been matter, for it

every add I the title going companies think has the of own. approach a and to are that to be different one approach to to able our we market

Operator

[Operator Instructions].

Our KBW. with next George with question. Please question from is proceed your Bose

Bose George

good everyone, Hey morning. Thank you.

Mother on that follow-up have from you accretion a Lode, acquisition? said about Just anything

Ken DeGiorgio

the approval. we yet. subject is And transaction regulatory haven't No, to

going months of next on So couple at does our it to -- least. call close, some a once And hopefully it's to information, additional not you. the for probably close provide at next we'll

Bose George

pretty market the on in there public what's going private side? been investments, that least. then your And you like actually PropTech there of in Thanks. on great. the Has a created Okay, other at terms just stocks big for opportunities sell-off has

Ken DeGiorgio

note we that, Mark gain probably portfolio, forward. financially. valuations are ours. the might think well, booked of in I they at at can And I performing you of doing going into mean and doing seen say, look anticipate for we've I'll that we're have remind opportunities PropTech insights be I seen at. our customers mean, adjust adapt decline venture you, companies we've past. or for favorable products. We strategic also, million a that that I'll indicated us in types it good us we like we're that actually I'll And will But in for our I companies more hopefully well But these just there give reasons. of Yes, to not what investments so yes, on we And invest $XXX as customers in more has year-end. would opportunities. there the returns, become haven't financial pricing want companies need,

first valuation So, a when at a a and or and strategic the we we from from look talk foremost from financial not just a it perspective. strategic about but perspective, opportunities, perspective, probably

think present those continue to So will themselves. we opportunities

Bose George

great. Okay, Thank you.

your just ratio swinging expectations back one just talk your was success about Can to more quarter? versus Just expenses. you this that

Mark Seaton

about hit mean, and not we've up years. that target it we've years success we've so not Well most a Yes. XX% And every sustainable. you year, margins XX about about probably those your up always keep a of now, for of success been But it's XX%. I get talking and ratio up. going it's just ratio -- talked

one-time expenses on we were $X year, say more had any quarter our than like this well plans hit out all XX% is quarter, the year, significant wouldn't the but XXX(k) There's we last first we were higher XXXX, at years XX.X%. success had a pay it because mean, the million point profitability XXX(k) So for company. few I it employees our a we we quarter, for expenses depending we higher, ratio, the -- things. fourth that of of was so for the our I the for

matched $X.XX So versus $X.XX we last year.

that for that on the And like We that the we like then end -- had ServiceMac also healthcare entities million at success Endpoint, puts a like also the pressure some of true-up on losses, ratio. year. have $X and have

factors overall, quarter, we're for for happy those I the success but we mentioned. year think just So the the will I that ratio manage how expenses with for decide

Operator

next Our is Dunn your with Partners. & proceed question Please Geoffrey from question. Dowling with

Geoffrey Dunn

your surprised really how actually much expense. bonuses, is outlook personnel I When by other consider variables. commissions, line Mark, that Thanks. of and you for I'm guess temp

outlook, than you more down like falling --? or a unless absolute seem in I about think only it something expecting mean, would have relative like it to So type just as of revenue, environment. that to I expected revenue increase that compression would Can an you maybe you're frame be seems can year-over-year, otherwise to me X% you unusual very

Mark Seaton

could sorry, about Geoff, that. could we have revenue call, we this And I XXXX still XXXX. I Last flat thought by versus in talked call, Well, we now, think after. in stand go how we

know. never But about, in XXXX. closer there's on happening don't know. be we're we We decline things right think a to mean, as could really now, I But a in we So see based happen. lot were talked flat. where but we've of sitting revenue that we we'll that don't

Geoffrey Dunn

if Okay, is that are And more for makes designed sense. you then, in a year-over-year flat, ratio your success in revenue. increase

we're down that if revenue against scenario, in management flat judging a your about think do how So or we expense framework?

Mark Seaton

Yes, so.

Geoffrey Dunn

how you do about Or think it?

Mark Seaton

time Yes, less success the expenses because to itself came relevant when you so metric the wild have is ratio. or a we it's good It's doing you revenue, the of that market for with some long success flat get managing we a if Are really can a up numbers pretty up job determine. ratio down? ago right,

each point, of of the day, margins, we at to think, end at in we on a again, ratio we margin one returns that strong won't the your businesses meaningful. dynamics. have we good that have flat to revenue environment, success and make sure as want isn't And different our I margins; look capital good have

Operator

Gilbert question. call comes Please with next Our your proceed with from Ryan BTIG.

Ryan Gilbert

guys. Good Hi, thanks. morning,

of the on course think developing just the competition on is me details market quarter? add over how color in for question core you dynamics in the the XXXX? about fourth on or you title And competitive saw Any you business? First what can

Ken DeGiorgio

the Yes, think interest I I companies that a going competitive anticipate change a of have upstart to don't rates we dramatic title environment. think are And in lot headwind. Obviously, seeing the terms them. particular, in going I too larger dramatically. point a changing driven inflection refinance competitors dynamic see are of critical are for don't that I the think But in have to

Ryan Gilbert

it. got Okay,

Second markets question, now? the pipeline, you expanding endpoint your you progress just on your new maybe -- into as could see customer update and us it

Ken DeGiorgio

They've expanding markets think, I test our share mean, gaining the on in the -- which across I been in I we're net currently maintaining for target, is score their They're their our is whole is of with that into the in market doing new tells traction which think Seattle. endpoint. markets. And indicators seven think and within I XX that telling Yes, above endpoint well. market states. it's promoter one base. customer They're me me

I think being with we're received its well customers. the --

Ryan Gilbert

pretty great. Okay, repurchases. for question you in like January. volume up Looks on significantly share Last the picked me, just

Just repurchases should opportunities other and be you XXXX we investment -- how how with repurchases how balancing maybe share forecasting XXXX? are in and

Mark Seaton

always I it's we're the We're very more. to in we last we've customers. connect our business, make year something and deeply -- Well, with been of in our terms mean, us active it to -- software at. the very last easier tools investing look market, M&A and in certainly active core just to for develop

our imply are we're stock cycle, trough it can undervalued, when why and at making shares. our re-fis We fact earnings. or or of that we're where you it we're the not peak is we're comes that trading of the it XXx of peak the not the we the lot So comes still a kind a and We're certainly at comes that's investment in cycle. At comes the investment our morning, look at XXx Bloomberg the peak And we're And to but it income would our at investments. when earnings income. to trough to fortunate where make we re-fis. when when those certainly to investments think this shares. we're on in when the that buying ourselves, we repurchase multiple can ask But

in reflected the in I trade carrying was Ken maybe completely assets you American First has on But when the a all you value that have layer fee some the are million the value the $XXX those point are we losses, then American. have and maybe including year same some then that and mentioned thing all argue of think So same market that's that in in portfolio, multiples, feel those our to our standalone higher. basis when our and we But fully bit We're endpoint you assets on about at balance at excited reflected of public our should we And of basis a value them PropTech end portfolio for we and value, our and have at least casualty little reflected. losses, be shares. like business. for that certainly would property not being have very ServiceMac, First thing a being

we those couple we've rest the been to in the what in as and for in But year. last you. the we've months, And likely showing I buyback kind mentioned like I future have for of past. more happens than reasons, these So a calls of we'll think earlier to don't that. be for forecast we see market, we're going started the of have

Operator

question is of from John Stephens. next your question. Please with Our Campbell proceed

John Campbell

Hey, you Dennis, to guys, be to with working still outstanding Happy at forward Chairman And run. you're on seat. Ken morning then, around congrats you. a as we're going to the congrats good and looking well

Dennis Gilmore

John. Thanks

Ken DeGiorgio

Thank you, John.

John Campbell

Sure.

guys know You you this going get question. are to

margin margins. Obviously, really guys, So you to XX% think I good obviously on backdrop, years you to mean guys mortgage past XX% XX% pretax the to range. I few title XX% in past have talked

got year. rebuy this headwind to You

purchasing pretty business sturdy commercial. got You what seems on like a

You revs. to flattish guys talk maybe

see certainly that we as I well. think

kind seems you've to said, You've things I'm how going the up. there. got it that it enough the hard keep margins. to pressure, it's about to at but With curious close of about with about I of pick be like commentary keep wage maybe got XXXX so curious cooking just just know, investment think pretax levels income all kind probably to

Ken DeGiorgio

is cause think as real on number on for outlook think into I And rates. and deal the in me least wasn't raising of this sealed chime in the there obviously But year. Let Mark going half the chime this first which necessary. morning, optimism great, some at I the Fed quick inflation the can

side, purchase they're rates the the demographic there, On into relatively benefits low. rates but low market. relatively mortgage are they're are example, staying for we've got still still some raising, millennials, coming still And they're

record the they see I as setting on low business. and for noted to then, And which inventory been, I purchase there's you onto coming think our inventory, we course, the commercial year. remain bodes some were a Of well expect hopeful business, but market, think off coming

some really So year. have this good. mentioned, as into pipeline coming we'll Mark the looks momentum And

relatively correlation again, there's lot here market capital the we're talking optimistic chasing think The all commercial as Mark strong with deals. I to Andrew's refinances low. rates. the we've So of about are mentioned, also because And call, rates on been still a

great it industry, one we offset unique rates up, wane bank. So really is a in views. with the in to our as our we're we and have The that that but go expect investment income, given position particularly asset to

but we're suggested conscious I margin we of feel, the of going my as very, guess earlier, And into structure feel I our good watch I we about into, rates. ever XXXX, carefully. So from I the increasing headwinds very as go perspective, will cost

John Campbell

kind then in It around growth of the Lode, a that's benefit guys prepared maybe single mean, helpful. pivot that's that's probably there's to guys. remarks comes appreciate strategy but like that cost your seems multi-franchisee. that. I fairly like big efficient, back. a Mother And Okay, you I to talked you brand it more for seems

could to talk So you you're change? what that the that why now, exploring triggered then if and maybe

Ken DeGiorgio

it imprudent be Well, Notch think I be -- just as they've would XX And with into itself. it of us to brand be that presented those made single I would part Mother Lode opportunity really brands. think well, great Top and roll such that a there'll inroads think, has brands, because I

some see don't other best there Title, Republic of as a guess shift, our as So it I have indicated, have are title really some more brands pivot portfolio. I I've brands other as we do in because we a we have

and as way. we a So think opportunity an it I market the in shift a to new approach more view

Operator

call. that call company's there listeners Gilmore, replay for ID or questions this your today's on like company remind will enter this XXXXXXXX. (XXX) you be for would like to This Conference to call. are the the The dialing website That would We available no XXX-XXXX conference and morning by Mr. concludes thank participation. concludes at time. additional XXX-XXXX (XXX) or today's

disconnect. You now may

First American Financial (FAF) 10 Feb 222021 Q4 Earnings call transcript