Cost-reduction measures and automation advances helped to bring better-than-expected earnings in the first quarter, although the real estate slowdown prompted a decline in operating revenues of 14 percent from the same period in 1999. In the second quarter, a dramatic drop in refinancing activity — more than 42 percent below that of the same period in 1999 — was reflected in a 13 percent decline in orders opened. Yet, the continued appreciation in nationwide home values aided operating revenues, which ended only 1 percent below second quarter 1999 figures. Third-quarter operating revenues declined 7 percent from those of the previous year, yet productivity and cost-cutting measures were intensified. In the year’s final quarter, operating revenues increased by 6 percent over fourth quarter 1999, and income before income taxes and minority interests soared with a 55 percent increase.

These positive results mark the success of the company’s efficiency strategies and the effects of a late-year upturn in real estate activity.

For the full year, operating revenues for First American Title Insurance Company declined 4 percent to $2.07 billion from its 1999 $2.15 billion figure. Income before income taxes and minority interests for the year 2000 totaled $93.2 million, dropping from its $128.7 million total in 1999. While the title company realized these declines during 2000, fourth-quarter increases signal the potential of a projected rise in mortgage activity in 2001.

Financial Strength

Financial leadership also continued for First American Title Insurance Company in 2000. The company’s claims-paying ability has earned an “A+” rating from A. M. Best Company; an “A” rating from Fitch IBCA, Duff & Phelps; an “A-” rating from Standard & Poor’s; an “A double prime” rating from Demotech, Inc.; and an “A3” (Exceptional) rating from Moody’s Investors Service.