First American’s Goal: Being First

Title Insurer Goes Shopping in Race With Rival Fidelity

First American Corp. came in at No. 39 this year, down one spot from last year, on this year’s fastest-growing companies list with 74.2% growth over the last three years.

Though most of that growth came in 1998 when the company’s annual revenue shot up from $1.96 billion to $2.94 billion, the company has been making acquisitions at a healthy clip, vying to be the nation’s No. 1 title insurance company. Its competition comes from its Orange County rival, Fidelity National financial Inc., which was previously the nation’s fourth largest title insurance company until it completed its merger with Chicago Title Corp., the former No.3 title insurance company.

Fidelity National can now boast that it is the largest with $3 billion in pro forma revenue, though First American is trying to grow by buying smaller title companies and non-title insurance companies. To fit in all of its acquisitions, the company moved into a new $50 million headquarters facility in Santa Ana.

First American’s annual revenue grew a slim 3% last year. The slowdown in revenue is due to the refinance mortgage market, which has been sluggish because of high interest rates. First American probably won’t see its revenue grow in the double-digits until Federal Reserve Board Chairman Alan Greenspan decides to start lowering interest rates.

Realizing the move to the Internet for real estate information services, First American has been taking a share in that sector, especially since Fidelity National launched Escrow.com, an online real estate information services site.

In April, First American’s board approved a proposal to invest $1 million in RE3W Inc., a Costa Mesa-based Internet company that will offer online property data, credit information and escrow closing services when the site debuts this fall. The company expanded its reach into the automotive title insurance market in February when it acquired Vintek Inc., an online automotive data fulfillment company.

First American has been busy with acquisitions and partnerships. In August, First American acquired an interest in marketing company Consumer Benefit Services Inc.; acquired Canadian foreclosure company Debt Recovery Network; partnered with management services company Judy Carr