First American Financial Q2 Profit Rises

(RTTNews) - First American Financial Corp. (FAF), a provider of title insurance, settlement services and risk solutions for real estate transactions, reported that its net income for the second quarter ended June 30, 2017 was $122.3 million or $1.09 per share, compared with net income of $102.1 million, or $0.92 per share, in the second quarter of 2016.

Net realized investment gains in the latest-quarter were $17.9 million, or 11 cents per share, compared with gains of $8.1 million, or 5 cents per diluted share, in the second quarter of last year.

Total revenue for the second quarter of 2017 was $1.5 billion, an increase of 7 percent relative to the second quarter of 2016.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.93 per share and revenues of $1.41 billion for the quarter. Analysts' estimates typically exclude special items.

The termination of the company's pension plan was completed in July. In the third quarter, the company will record a charge of approximately $153 million in the corporate segment, which will have a negligible impact on stockholders' equity. The company expects an annual reduction of approximately $22 million in personnel expenses in the corporate segment based on the level of these expenses in 2016.