First American Financial Corporation (FAF - Free Report) inked book transfer agreements with Safeco Insurance, a Liberty Mutual Company, and Heritage Insurance Holdings. Per the agreements, First American property and casualty insurance agents and customers can transfer their policies to Safeco or Heritage.
First American anticipates the transfer to be completed by the end of the third quarter of 2022.
Last October, this Zacks Rank #3 (Hold) title insurer had announced its decision to divest its property and casualty insurance business, which is not performing as per expectation.
This is a strategic initiative to strengthen its product offerings and intensify focus on its core business. To that end, it agreed to ink a deal to acquire ServiceMac whose mortgage subservicing business is likely to enable First American Financial to provide enhanced end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. The company looks for opportunities to intensify focus on its core business and redeploy capital to those areas, which fetch higher returns.
First American Financial remains well poised to capitalize on increased demand for first-time home purchases among millennials. The company estimates sustained low rates and demographic tailwinds to continue to drive strong purchase and refinance activity. The company noted that strength in purchase and refinance businesses have been benefiting from robust order trends and consistent cost-control efforts.
Shares of First American have lost 1.1% in the past six months against the industry’s 15.3% increase. Strength of its solid commercial business, expanding valuation and data businesses and effective capital deployment should help the stock bounce back.
Stocks to Consider
Some better-ranked stocks in the same space include Fidelity National Financial (FNF - Free Report) , Alleghany Corporation and W.R. Berkley Corporation (WRB - Free Report) .
Fidelity National delivered an earnings surprise of 18.40% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1.
W.R. Berkley delivered an earnings surprise of 4.84% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
First American Financial Corporation (FAF - Free Report) inked book transfer agreements with Safeco Insurance, a Liberty Mutual Company, and Heritage Insurance Holdings. Per the agreements, First American property and casualty insurance agents and customers can transfer their policies to Safeco or Heritage.
First American anticipates the transfer to be completed by the end of the third quarter of 2022.
Last October, this Zacks Rank #3 (Hold) title insurer had announced its decision to divest its property and casualty insurance business, which is not performing as per expectation.
This is a strategic initiative to strengthen its product offerings and intensify focus on its core business. To that end, it agreed to ink a deal to acquire ServiceMac whose mortgage subservicing business is likely to enable First American Financial to provide enhanced end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. The company looks for opportunities to intensify focus on its core business and redeploy capital to those areas, which fetch higher returns.
First American Financial remains well poised to capitalize on increased demand for first-time home purchases among millennials. The company estimates sustained low rates and demographic tailwinds to continue to drive strong purchase and refinance activity. The company noted that strength in purchase and refinance businesses have been benefiting from robust order trends and consistent cost-control efforts.
Shares of First American have lost 1.1% in the past six months against the industry’s 15.3% increase. Strength of its solid commercial business, expanding valuation and data businesses and effective capital deployment should help the stock bounce back.
Stocks to Consider
Some better-ranked stocks in the same space include Fidelity National Financial (FNF - Free Report) , Alleghany Corporation and W.R. Berkley Corporation (WRB - Free Report) .
Fidelity National delivered an earnings surprise of 18.40% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1.
W.R. Berkley delivered an earnings surprise of 4.84% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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