Fidelity National Posts Gains in 3rd-Quarter Profit, Revenue

IRVINE — Falling interest rates, which have elicited a spate of mortgage refinancings, helped propel earnings and revenue for Fidelity National Financial Inc. to record levels in the third quarter.

Fidelity, an Irvine-based title insurance underwriter, reported a profit of $9.6 million, or 94 cents a share, for the three months ended Sept. 30--nearly triple its earnings of $3.4 million, or 37 cents a share, for the same period a year earlier. Revenue was $149.4 million, up 38% from $108.1 million.

William P. Foley II, president and chief executive officer of Fidelity, said in a statement: “The continued decline in interest rates, which has spurred another wave of mortgage refinancing activity, along with the increase in residential resales in certain areas of the country, contributed significantly to our exceptional third-quarter operating results.”

Though mortgage refinancings have leveled off, according to figures released this week by TRW Redi Property Data, they are still robust across most of the nation.

For the year to date, Fidelity reported a profit of $21.8 million, or $2.23 a share, more than double its earnings of $10.5 million, or $1.25 a share, for the first nine months of 1992. Revenue through September rose 52%, to $398.4 million from $261.3 million.