* Q1 EPS $0.28 vs $0.38
* Q1 rev down 1 pct to $1.36 bln
April 29 First American Corp (FAF.N), the No.1
U.S. title insurer by revenue, reported a lower quarterly
profit as more premiums were retained by agents.
The Santa Ana, California-based First American earned $29.5
million, or 28 cents a share, compared with $36 million, or 38
cents a share a year ago.
The company, which posted a one percent decline in
quarterly revenue at $1.36 billion, said the spin-off of its
Information Solutions Group, rebranded CoreLogic Inc, remains
on track and is likely to close on June 1.
First American closed 286,600 orders during the quarter,
while it opened 389,100.
However, agents retained $302.5 million of premiums, while
they retained $239.6 million a year ago.
Title insurance guarantees that property owners have title
to their property and can legally transfer it. Many lenders
require buyers to have the insurance before extending loans,
and the industry has to depend on total mortgage-origination
Smaller rival Stewart Information posted a narrower
first-quarter loss of $29 million, or $1.59 a share, compared
with a loss of $37.6 million, or $2.07 a share a year ago.
First American's and Stewart's results come a week after
the No.2 player Fidelity National Financial Inc's (FNF.N)
quarterly results showed strength in open orders, pointing to
recovering mortgage-origination volumes.
Shares of First American were down 3 percent at $35.65 in
morning trade Thursday on the New York Stock Exchange.
(Reporting by Brenton Cordeiro and Anurag Kotoky in Bangalore;
Editing by Don Sebastian)