 |
 |
|
|
|
|
 |
While our earnings were down as compared with 1999, systems that have taken years to complete began coming on line during 2000 and will have a progressively positive effect on earnings. One such system is FASTSearch™, which is employed in approximately 40 percent of our direct operations. This system assimilates information from our extensive databases to create a title search in minutes. Before FASTSearch, this process took days. Another important efficiency booster is our FAST Transaction System, which integrates the title and closing process and allows our Realtor® and lender customers to monitor the status of their transactions. The system is completed and tested and, where it is installed, its efficiencies are beginning to be reflected in improved earnings. A third system is now functional in our First American Real Estate Solutions division. This company manages the nation’s largest database of real property information, having recently integrated and consolidated the databases of its prior acquisitions. This data is used to provide an array of information products to lenders, Realtors, appraisers and a variety of businesses. Its extensive, electronic-appraisal capabilities, for example, allow our customers to get property valuation inquiries rapidly via the Internet. Technology efforts have been extensive throughout the Company; however, we believe that most of our big technology costs are behind us. New systems in tax service, mortgage-credit information and auto-insurance tracking are all recently completed and will be making real differences in our earnings.
For the past 15 years, and especially during the last decade, we have been working hard to create an infrastructure for future growth. The basic building blocks are now in place. On the title insurance side, it has been important to have a national presence and a strong market share. These factors help provide efficiencies through economies of scale, and allow us to serve large customers in need of strong national coverage. During 2000, regional administrative functions were collapsed into fewer regional centers, which will result in reduced costs. The process is nearing completion and our market-share growth and profit retention will continue to be a primary emphasis. We have endeavored to create a complete menu of real estate-related products and services. After more than 50 acquisitions, including our most recent move into foreclosure services, we have built the menu and established leadership. Market positions for nearly all of our products are solidifying and we are now concentrating on marketing combinations of products. For instance, our new FACT product combines flood-zone determinations, electronic appraisals, credit reports, title insurance and real estate tax information, all derived completely from our own databases and delivered over the Internet. Already the industry leader in mortgage-related, non-title insurance services, First American is moving toward a single, all-encompassing product: real estate information. Our strong relationships with all the major lenders are beginning to bear fruit throughout our divisions, and we’re only starting to see the benefits of this market strength. We will continue to make acquisitions, but our primary emphasis will be on aggressively expanding what we have and improving profits.
As our Company grew, we developed expertise in many areas. For instance, creating title reports (our traditional product) led us to the mortgage-credit reporting business, which led us to providing employee background checks, tenant eviction history reports and subprime credit information. We evolved from a title insurance company to a real estate information company to a business information company. |
|
2000
was a very significant year for First American for several reasons. First,
our earnings began to reflect the technology improvements and other initiatives
that were brought to fruition during the year. Second, 2000 marked the
beginning of an extensive integration effort that is starting to be reflected
in our earnings. And third, the year featured the emergence of First American
as the nation’s preeminent, diversified provider of business information.
Earnings