First American Financial Reports Second Quarter 2018 Results

Reports Earnings of $1.37 per Diluted Share


July 26, 2018, Santa Ana, Calif.

First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today announced financial results for the second quarter ended June 30, 2018.

Download the complete press release as a PDF

Current Quarter Highlights

  • Total revenue of $1.5 billion, up 3 percent compared with last year
  • Title Insurance and Services segment pretax margin of 15.3 percent
  • Purchase revenues up 7 percent compared with last year
    • Average revenue per order up 7 percent
    • Closed orders per day unchanged
  • Commercial revenues of $184.8 million, up 4 percent compared with last year
  • Specialty Insurance segment total revenues up 4 percent, with a pretax margin of 8.4 percent
  • Closed four acquisitions for an initial cash consideration of $53.2 million
  • Cash flow from operations of $210.9 million

Selected Financial Information

($ in millions, except per share data)

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Total revenue

 

$

1,491.2

 

 

$

1,454.4

 

Income before taxes

 

 

202.0

 

 

184.2

 

 

 

 

 

 

 

 

 

 

Net income

 

$

155.1

 

 

$

122.3

 

Net income per diluted share

 

 

1.37

 

 

1.09

 

 

Total revenue for the second quarter of 2018 was $1.5 billion, an increase of 3 percent relative to the second quarter of 2017. Net income in the current quarter was $155.1 million, or $1.37 per diluted share, compared with net income of $122.3 million, or $1.09 per diluted share, in the second quarter of 2017. Net realized investment gains in the current quarter were $5.5 million, or 4 cents per diluted share, compared with net realized investment gains of $17.9 million, or 11 cents per diluted share, last year.

"The company's performance this year continues to be strong, as demonstrated by the 15.3 percent pretax title margin we achieved in the second quarter," said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. "Our purchase and commercial businesses more than offset the impact of the decline in refinance transactions, resulting in revenue growth of 3 percent this quarter. These favorable conditions, combined with prudent management of our investment portfolio and our bank, discipline in our underwriting process, and efficient management of our cost structure, position us well as we enter the second half of 2018."

Title Insurance and Services

($ in millions, except average revenue per order)

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Total revenues

 

$

1,369.0

 

 

$

1,336.9

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

$

209.6

 

 

$

197.3

 

Pretax margin

 

 

15.3

%

 

 

14.8

%

 

 

 

 

 

 

 

 

 

Direct open orders

 

 

276,800

 

 

 

299,600

 

Direct closed orders

 

 

196,200

 

 

 

213,900

 

 

 

 

 

 

 

 

 

 

U.S. Commercial

 

 

 

 

 

 

 

 

   Total revenues

 

$

184.8

 

 

$

177.9

 

   Open orders

 

 

36,000

 

 

 

32,400

 

   Closed orders

 

 

19,900

 

 

 

20,700

 

   Average revenue per order

 

$

9,300

 

 

$

8,600

 

 

Total revenues for the Title Insurance and Services segment during the second quarter were $1.4 billion, up 2 percent compared with the same quarter of 2017. Direct premiums and escrow fees were up 3 percent compared with the second quarter of 2017, driven by a 13 percent increase in the average revenue per direct title order that was largely offset by an 8 percent decline in the number of direct title orders closed. The growth in the average revenue per direct title order to $2,599 was primarily attributable to higher residential real estate values, the increase in the average revenue per commercial order, and the shift in the order mix to higher-premium commercial transactions. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, were up 1 percent in the current quarter compared with last year.

Information and other revenues were $206.1 million this quarter, up 3 percent compared with the same quarter of last year. Higher revenues from recent acquisitions were partly offset by the impact of lower refinance activity.

Investment income was $51.7 million in the second quarter, up $17.1 million, or 49 percent, primarily due to the increase in short-term interest rates that drove higher interest income in the company's investment portfolio and cash balances. Net realized investment gains totaled $3.6 million in the current quarter, compared with gains of $16.7 million in the second quarter of 2017.

Personnel costs were $427.0 million in the second quarter, an increase of $11.6 million, or 3 percent, compared with the same quarter of 2017. The increase was primarily driven by personnel costs associated with recent acquisitions.

Other operating expenses were $202.4 million in the second quarter, up $2.5 million, or 1 percent, compared with the second quarter of 2017. The increase was primarily driven by the impact of recent acquisitions largely offset by a decline in production-related expenses.

The provision for policy losses and other claims was $44.3 million in the second quarter, or 4.0 percent of title premiums and escrow fees, unchanged from last year. The current quarter rate reflects an ultimate loss rate of 4.0 percent for the current policy year and no change in the loss reserve estimates for prior policy years.

Pretax income for the Title Insurance and Services segment was $209.6 million in the second quarter, compared with $197.3 million in the second quarter of 2017. Pretax margin was 15.3 percent in the current quarter, compared with 14.8 percent last year.

Specialty Insurance

($ in millions)

 

Three Months Ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Total revenues

 

$

120.2

 

 

$

115.2

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

$

10.1

 

 

$

9.6

 

Pretax margin

 

 

8.4

%

 

 

8.3

%

 

Total revenues for the Specialty Insurance segment were $120.2 million in the second quarter of 2018, an increase of 4 percent compared with the second quarter of 2017. The results in the home warranty business benefited from lower claim frequency in the current quarter. While higher severity drove an increase in the loss ratio in the property and casualty business, the loss ratio for the segment declined slightly to 61.4 percent. The segment's pretax margin was 8.4 percent this quarter, compared with 8.3 percent in the second quarter of last year.

Teleconference/Webcast

First American's second quarter 2018 results will be discussed in more detail on Thursday, July 26, 2018, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is 877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American's website at http://www.firstam.com/investor. An audio replay of the conference call will be available through August 9, 2018, by dialing 201-612-7415 and using the conference ID 13681408. An audio archive of the call will also be available on First American's investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $5.8 billion in 2017, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2018, First American was named to the Fortune 100 Best Companies to Work For® list for the third consecutive year. More information about the company can be found at http://www.firstam.com.

Website Disclosure

First American posts information of interest to investors at http://www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words "believe," "anticipate," "expect," "intend," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases or future or conditional verbs such as "will," "may," "might," "should," "would," or "could." These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in the performance of the real estate markets; volatility in the capital markets; unfavorable economic conditions; failures at financial institutions where the company deposits funds; changes in applicable laws and government regulations; heightened scrutiny by legislators and regulators of the company's title insurance and services segment and certain other of the company's businesses; use of social media by the company and other parties; regulation of title insurance rates; limitations on access to public records and other data; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company's title insurance underwriters, including ratings and statutory capital and surplus; losses in the company's investment portfolio; material variance between actual and expected claims experience; defalcations, increased claims or other costs and expenses attributable to the company's use of title agents; any inadequacy in the company's risk management framework; systems damage, failures, interruptions and intrusions or unauthorized data disclosures; process automation; technological developments that change the way real estate transactions are conducted and related documents are processed; errors and fraud involving the transfer of funds; the company's use of a global workforce; inability of the company's subsidiaries to pay dividends or repay funds; and other factors described in the company's quarterly report on Form 10-Q for the quarter ended March 31, 2018, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including personnel and other operating expense ratios and success ratios. The company is presenting these non-GAAP financial measures because they provide the company's management and investors with additional insight into the operational efficiency and performance of the company relative to earlier periods and relative to the company's competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures.

First American Financial Corporation

 

Summary of Consolidated Financial Results and Selected Information

 

(in thousands, except per share amounts and title orders, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Total revenues

 

$

1,491,157

 

 

$

1,454,429

 

 

$

2,788,545

 

 

$

2,771,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

201,968

 

 

$

184,154

 

 

$

295,033

 

 

$

268,034

 

Income taxes

 

 

46,877

 

 

 

62,259

 

 

 

63,770

 

 

 

88,070

 

Net income

 

 

155,091

 

 

 

121,895

 

 

 

231,263

 

 

 

179,964

 

Less: Net loss attributable to noncontrolling interests

 

 

(49

)

 

 

(362

)

 

 

(104

)

 

 

(575

)

Net income attributable to the Company

 

$

155,140

 

 

$

122,257

 

 

$

231,367

 

 

$

180,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.38

 

 

$

1.10

 

 

$

2.06

 

 

$

1.62

 

Diluted

 

$

1.37

 

 

$

1.09

 

 

$

2.05

 

 

$

1.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.38

 

 

$

0.34

 

 

$

0.76

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

112,556

 

 

 

111,549

 

 

 

112,406

 

 

 

111,374

 

Diluted

 

 

113,117

 

 

 

112,199

 

 

 

113,093

 

 

 

112,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Title Insurance Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title orders opened(1)

 

 

276,800

 

 

 

299,600

 

 

 

530,300

 

 

 

559,200

 

Title orders closed(1)

 

 

196,200

 

 

 

213,900

 

 

 

369,800

 

 

 

405,200

 

Paid title claims

 

 

44,731

 

 

 

47,763

 

 

 

81,356

 

 

 

98,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) U.S. direct title insurance orders only.

 

 

 

 

 

 

 

 

 

 

First American Financial Corporation

 

Selected Consolidated Balance Sheet Information

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Cash and cash equivalents

 

$

1,226,510

 

 

$

1,387,226

 

Investments

 

 

5,716,111

 

 

 

5,378,303

 

Goodwill and other intangible assets, net

 

 

1,271,234

 

 

 

1,212,918

 

Total assets

 

 

9,959,396

 

 

 

9,573,222

 

Reserve for claim losses

 

 

1,022,928

 

 

 

1,028,933

 

Notes and contracts payable

 

 

736,393

 

 

 

732,810

 

Total stockholders’ equity

 

$

3,569,523

 

 

$

3,479,955

 

 

First American Financial Corporation

 

Segment Information

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

Title

 

 

Specialty

 

 

Corporate

 

June 30, 2018

 

Consolidated

 

 

Insurance

 

 

Insurance

 

 

(incl. Elims.)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums and escrow fees

 

$

661,582

 

 

$

548,616

 

 

$

112,966

 

 

$

 

Agent premiums

 

 

559,004

 

 

 

559,004

 

 

 

 

 

 

 

Information and other

 

 

208,752

 

 

 

206,095

 

 

 

2,924

 

 

 

(267

)

Net investment income

 

 

56,334

 

 

 

51,737

 

 

 

2,401

 

 

 

2,196

 

Net realized investment gains

 

 

5,485

 

 

 

3,588

 

 

 

1,897

 

 

 

 

 

 

 

1,491,157

 

 

 

1,369,040

 

 

 

120,188

 

 

 

1,929

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

448,974

 

 

 

427,049

 

 

 

19,066

 

 

 

2,859

 

Premiums retained by agents

 

 

439,550

 

 

 

439,550

 

 

 

 

 

 

 

Other operating expenses

 

 

228,935

 

 

 

202,383

 

 

 

18,062

 

 

 

8,490

 

Provision for policy losses and other claims

 

 

113,619

 

 

 

44,304

 

 

 

69,315

 

 

 

 

Depreciation and amortization

 

 

31,058

 

 

 

29,343

 

 

 

1,677

 

 

 

38

 

Premium taxes

 

 

17,049

 

 

 

15,102

 

 

 

1,947

 

 

 

 

Interest

 

 

10,004

 

 

 

1,667

 

 

 

 

 

 

8,337

 

 

 

 

1,289,189

 

 

 

1,159,398

 

 

 

110,067

 

 

 

19,724

 

Income (loss) before income taxes

 

$

201,968

 

 

$

209,642

 

 

$

10,121

 

 

$

(17,795

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

Title

 

 

Specialty

 

 

Corporate

 

June 30, 2017

 

Consolidated

 

 

Insurance

 

 

Insurance

 

 

(incl. Elims.)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums and escrow fees

 

$

641,080

 

 

$

532,236

 

 

$

108,844

 

 

$

 

Agent premiums

 

 

554,028

 

 

 

554,028

 

 

 

 

 

 

 

Information and other

 

 

201,851

 

 

 

199,243

 

 

 

2,874

 

 

 

(266

)

Net investment income

 

 

39,609

 

 

 

34,665

 

 

 

2,321

 

 

 

2,623

 

Net realized investment gains

 

 

17,861

 

 

 

16,738

 

 

 

1,123

 

 

 

 

 

 

 

1,454,429

 

 

 

1,336,910

 

 

 

115,162

 

 

 

2,357

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

436,441

 

 

 

415,452

 

 

 

17,891

 

 

 

3,098

 

Premiums retained by agents

 

 

435,771

 

 

 

435,771

 

 

 

 

 

 

 

Other operating expenses

 

 

230,791

 

 

 

199,845

 

 

 

16,766

 

 

 

14,180

 

Provision for policy losses and other claims

 

 

110,958

 

 

 

43,486

 

 

 

67,472

 

 

 

 

Depreciation and amortization

 

 

30,145

 

 

 

28,557

 

 

 

1,547

 

 

 

41

 

Premium taxes

 

 

17,179

 

 

 

15,253

 

 

 

1,926

 

 

 

 

Interest

 

 

8,990

 

 

 

1,241

 

 

 

 

 

 

7,749

 

 

 

 

1,270,275

 

 

 

1,139,605

 

 

 

105,602

 

 

 

25,068

 

Income (loss) before income taxes

 

$

184,154

 

 

$

197,305

 

 

$

9,560

 

 

$

(22,711

)

 

First American Financial Corporation

 

Segment Information

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

Title

 

 

Specialty

 

 

Corporate

 

June 30, 2018

 

Consolidated

 

 

Insurance

 

 

Insurance

 

 

(incl. Elims.)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums and escrow fees

 

$

1,205,460

 

 

$

982,768

 

 

$

222,692

 

 

$

 

Agent premiums

 

 

1,086,718

 

 

 

1,086,718

 

 

 

 

 

 

 

Information and other

 

 

397,410

 

 

 

392,116

 

 

 

5,826

 

 

 

(532

)

Net investment income

 

 

99,126

 

 

 

93,137

 

 

 

4,989

 

 

 

1,000

 

Net realized investment (losses) gains

 

 

(169

)

 

 

(234

)

 

 

65

 

 

 

 

 

 

 

2,788,545

 

 

 

2,554,505

 

 

 

233,572

 

 

 

468

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

862,616

 

 

 

820,675

 

 

 

37,818

 

 

 

4,123

 

Premiums retained by agents

 

 

856,187

 

 

 

856,187

 

 

 

 

 

 

 

Other operating expenses

 

 

447,415

 

 

 

393,232

 

 

 

37,479

 

 

 

16,704

 

Provision for policy losses and other claims

 

 

214,199

 

 

 

82,785

 

 

 

131,414

 

 

 

 

Depreciation and amortization

 

 

60,805

 

 

 

57,460

 

 

 

3,269

 

 

 

76

 

Premium taxes

 

 

33,063

 

 

 

29,492

 

 

 

3,571

 

 

 

 

Interest

 

 

19,227

 

 

 

2,651

 

 

 

 

 

 

16,576

 

 

 

 

2,493,512

 

 

 

2,242,482

 

 

 

213,551

 

 

 

37,479

 

Income (loss) before income taxes

 

$

295,033

 

 

$

312,023

 

 

$

20,021

 

 

$

(37,011

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

Title

 

 

Specialty

 

 

Corporate

 

June 30, 2017

 

Consolidated

 

 

Insurance

 

 

Insurance

 

 

(incl. Elims.)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums and escrow fees

 

$

1,168,089

 

 

$

954,195

 

 

$

213,894

 

 

$

 

Agent premiums

 

 

1,128,610

 

 

 

1,128,610

 

 

 

 

 

 

 

Information and other

 

 

384,360

 

 

 

379,278

 

 

 

5,613

 

 

 

(531

)

Net investment income

 

 

72,649

 

 

 

61,280

 

 

 

4,650

 

 

 

6,719

 

Net realized investment gains

 

 

17,764

 

 

 

16,494

 

 

 

1,270

 

 

 

 

 

 

 

2,771,472

 

 

 

2,539,857

 

 

 

225,427

 

 

 

6,188

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

843,578

 

 

 

800,288

 

 

 

35,154

 

 

 

8,136

 

Premiums retained by agents

 

 

889,697

 

 

 

889,697

 

 

 

 

 

 

 

Other operating expenses

 

 

446,193

 

 

 

383,116

 

 

 

34,051

 

 

 

29,026

 

Provision for policy losses and other claims

 

 

213,346

 

 

 

83,348

 

 

 

129,998

 

 

 

 

Depreciation and amortization

 

 

60,292

 

 

 

57,108

 

 

 

3,098

 

 

 

86

 

Premium taxes

 

 

32,627

 

 

 

29,102

 

 

 

3,525

 

 

 

 

Interest

 

 

17,705

 

 

 

1,650

 

 

 

 

 

 

16,055

 

 

 

 

2,503,438

 

 

 

2,244,309

 

 

 

205,826

 

 

 

53,303

 

Income (loss) before income taxes

 

$

268,034

 

 

$

295,548

 

 

$

19,601

 

 

$

(47,115

)

 

First American Financial Corporation

 

Consolidated Net Realized Investment Gains (Losses)

 

($ in thousands, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

Amount

 

 

Per Share

 

 

Amount

 

 

Per Share

 

 

Amount

 

 

Per Share

 

 

Amount

 

 

Per Share

 

Change in fair value of equity securities held(1)

 

$

8,784

 

 

$

0.06

 

 

N/A

 

 

N/A

 

 

$

1,808

 

 

$

0.01

 

 

N/A

 

 

N/A

 

Other net realized investment (losses) gains

 

 

(3,299

)

 

 

(0.02

)

 

 

17,861

 

 

 

0.11

 

 

 

(1,977

)

 

 

(0.01

)

 

 

17,764

 

 

 

0.11

 

Net realized investment gains (losses)

 

$

5,485

 

 

$

0.04

 

 

$

17,861

 

 

$

0.11

 

 

$

(169

)

 

$

(0.00

)

 

$

17,764

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Beginning in the first quarter of 2018, the company adopted new accounting guidance, which requires investments in equity securities to be measured at fair value, with changes in fair value recognized through net income rather than through the balance sheet as previously required.

 

 

First American Financial Corporation

 

Expense and Success Ratio Reconciliation

 

Title Insurance and Services Segment

 

($ in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Total revenues

 

$

1,369,040

 

 

$

1,336,910

 

 

$

2,554,505

 

 

$

2,539,857

 

Less: Net realized investment gains (losses)

 

 

3,588

 

 

 

16,738

 

 

 

(234

)

 

 

16,494

 

Net investment income

 

 

51,737

 

 

 

34,665

 

 

 

93,137

 

 

 

61,280

 

Premiums retained by agents

 

 

439,550

 

 

 

435,771

 

 

 

856,187

 

 

 

889,697

 

Net operating revenues

 

$

874,165

 

 

$

849,736

 

 

$

1,605,415

 

 

$

1,572,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel and other operating expenses

 

$

629,432

 

 

$

615,297

 

 

$

1,213,907

 

 

$

1,183,404

 

Ratio (% net operating revenues)

 

 

72.0

%

 

 

72.4

%

 

 

75.6

%

 

 

75.3

%

Ratio (% total revenues)

 

 

46.0

%

 

 

46.0

%

 

 

47.5

%

 

 

46.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net operating revenues

 

$

24,429

 

 

 

 

 

 

$

33,029

 

 

 

 

 

Change in personnel and other operating expenses

 

 

14,135

 

 

 

 

 

 

 

30,503

 

 

 

 

 

Success Ratio(1)

 

 

58

%

 

 

 

 

 

 

92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

</