Industry News

Profits at Fidelity National Financial fall 30%

Title and escrow subsidiary's declining revenue hurts parent company

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Fidelity National Financial Inc. (FNF) said Tuesday lower title and escrow premiums pushed second-quarter profits down 30 percent, to $132.6 million, compared to the same quarter last year. Earnings fell to 73 cents per share, compared with $1.07 in the second quarter of 2005. The company's revenue for the quarter was up 9 percent over the same quarter last year, to $2.65 billion, thanks to growth at Fidelity National Information Services (FIS), an information technology company that sells software used to process nearly 50 percent of U.S. home mortgages. While second-quarter revenue at FIS was up 44 percent to $1.02 billion, Fidelity National Financial's title insurance subsidiary, Fidelity National Title Group Inc. (FNT), was headed in the other direction. Fidelity National Title reported second-quarter revenue of $1.57 billion, a 7.2 percent decline from the same quarter in 2005. Year-over-year profits for the quarter were down 27.5 percent, at $116.5 million. Earnings for the qua...