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As the nation’s preeminent, diversified provider of business information and related services, we now furnish services in connection with each primary economic event in a consumer’s life. These include, for example, getting a job, buying a car, renting an apartment, buying a home, planning for retirement and others. Currently, most of our products relate to buying and mortgaging a home. In 2000, operating revenues for our Title Information and Services and our Real Estate Information and Services segments totaled $2.07 billion and $558.1 million, respectively, accounting for 91 percent of the Corporation’s total revenues. Many of our products are not related to real estate, however, and so are less affected by interest-rate movements. Operating revenues in our Consumer Information and Services segment were $252.3 million, 9 percent of total revenues. Not only is this segment less cyclical than the others, it also tends to have higher margins. Our unique focus provides strong opportunities for growth. As an example, we announced in early 2001 an agreement to acquire Credit Management Solutions, Inc. (CMSI), a premier technology provider of credit automation software and services to auto dealers and lenders. The addition of CMSI’s suite of credit-decisioning products, along with its transactionprocessing Credit Online™ Network, will give First American access to millions of lending transactions, with an opportunity to cross market other First American products to a broad, new customer base. We will continue to aggressively expand our Consumer Information and Services segment. Another growth opportunity comes from our new EAGLE 9™ UCC Insurance product, which insures loans secured by personal property. This market is estimated at $1 trillion in loans secured by lien filings annually. Some U. S. states consider this type of coverage to be title insurance, while others regulate it as property and casualty insurance. Since First American owns both title and property and casualty insurance companies, we have the unique advantage of being able to offer this product in all 50 states and the District of Columbia. Our mix of businesses sets us apart from our competitors. This differentiation contributes to our earnings and to an improved price/ earnings ratio. During 2000, our stock value improved by 164 percent. This is a testament to our unique business mix, our integration efforts and our expense controls. We are optimistic about 2001. Interest rates are moderating, contributing to improved levels of real estate and auto-lending activity. In our real estate-related businesses, our order counts so far in 2001 are up considerably when compared to 2000. This is a reflection of increased refinance activity. Auto lending has not seen a similar increase, but activity levels are strong. We are keeping our expenses down on the real estate side, due in large part to the new technologies we’ve introduced over the last 12 months.
Our longtime friend and board member, Rudy Munzer, passed away during 2000. Rudy served as a board member from 1962 to 1998. A former President and Chairman of Petrolane Incorporated, Rudy provided incredible support through many years of growth. He will be missed. In April 2001, Don Robert left the position of President of First American’s Consumer Information Group to join our partner, Experian, as President of their information solutions business unit. We are excited about the unique opportunities this presents for building an even-stronger relationship between the credit operations of our two companies. We wish Don well. Anand Nallathambi took over the reins as President of our Consumer Information Group. He will continue managing our credit operations, as well as our consumer credit-related services. We are thrilled to have the extensive experience that Anand brings to the table now being deployed in one of our fastest-growing segments. Our best wishes to Anand for great success in his expanded role. Max Valdes, Tom Wawersich, John Hollenbeck and Ken DeGiorgio were all appointed Vice Presidents, and Tim Sullivan was named Senior Vice President of The First American Corporation. Craig DeRoy, Executive Vice President, was elected to the Board of Directors of First American Title Insurance Company. Our sincere congratulations to all of them. On behalf of the officers and directors of First American, we thank you for your continued support.
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