The First American Corporation (NYSE: FAF), which claims to be America’s largest provider of business information, reported revenues of US$ 5.972 bn down 4% from prior year.  It however had a strong 4th quarter with revenues of US$ 1.492 bn up 11 %.  Pretax Income was US$ 423 million up from US$ 44 million in 2008.

First America has announced in 2008 that it will spin-off its Financial Services Division (Title Insurance and Specialty Insurance subject to regulator approval.  In its earnings release First America was close to completing the spin-off (see comment below).

Title Insurance and Services segment generated in Q4 year-over-year operating revenue growth for the first time since the second quarter of 2006.

Information Solutions Group generated in Q4 total revenue of $503.0 million, a 3 percent increase relative to the prior year fourth quarter. For the full year revenues grew by 4.2% to Us$ 2.14 bn.  The goal for the Information services division is to maintain its momentum despite the expected challenges in the marketplace. Key strategic themes for the Information Solutions Group in 2010 will include the successful launch of a new brand, organizational realignment and new product development.”  For further information click on:

First American’s Information Solutions gets provisional Ba2 rating from Moody’s NEW YORK (AP) – The Information Solutions Co. division of First American Corp. received initial corporate family and probability of default ratings of (P)Ba2 from Moody’s Investors Services on March 4th.  The (P) means the rating is provisional, reflecting the assumption that First American completes a planned spin-off of its financial services business including its title insurance and specialty insurance reporting segments into a separate company this year.  The Ba2 rating is considered junk status, reflecting concerns over questionable credit quality.  Once the spinoff is completed, First American will be made up of the information solutions business with a capital structure of $500 million secured credit facility and $350 million secured term loan.  Source:  Press Coverage

BIIA Newsletter March I – 2010 Issue