First American Financial Corporation (NYSE:FAF) Q4 2022 Earnings Call Transcript

John Campbell: Okay. That’s helpful. And then I wanted to drill down on the segment earnings. I think that was probably the best segment margin you guys have probably ever had. What’s a good margin to think about for the full year just assuming that we run with — it sounds like you’re not going to have much of an impact of the wind-down of the P&C business moving forward. But maybe just think about what that segment margin looks like and then where you think you can take that maybe over time?

Mark Seaton: Yes. And one thing I’ll point out too is that we’re also seeing a benefit of the P&C wind-down a year ago we lost $8 million in our P&C business on a pretax basis. And this quarter was effectively breakeven. Even in the third quarter we lost $9 million. So we’re getting that kind of cleared out of our specialty segment. But in terms of like going forward typically the Home Warranty margins have been somewhat better than the Title margins. I mean I would say low double-digit margins is kind of a normalized market for Home Warranty. And they’ve done a really good job of growing revenue particularly the direct-to-consumer channel. And so we think the home warranty will grow through the cycle a little bit faster than the overall type of business.

John Campbell: Okay. Very helpful. I am going to jump back in queue. Thanks.

Mark Seaton: Thanks, John.

Operator: There are no additional questions at this time. That concludes this morning’s call. We would like to remind listeners that today’s call will be available for replay on the company’s website or by dialing 877-660-6853 or 201-612-7415 and enter the conference ID 1373-5364. The company would like to thank you for your participation. This concludes today’s conference call. You may now disconnect.