First American Title Acquires Agency in N.Y. : Insurance: Santa Ana-based company says it gains access to a clientele of hundreds of lending institutions, law firms and developers.

First American Title Insurance Co., expanding its New York operations, has acquired a Manhattan title insurance agency.

The Santa Ana-based company--the nation’s second largest title insurer--said Tuesday that it acquired Preferred Land Title Services Inc. for an undisclosed amount of class B stock of its parent company, First American Financial Corp.

First American President Parker S. Kennedy declined to discuss financial terms of the acquisition.

“This gives us a big jump,” Kennedy said. “It is the next step that gives us a dominant position in New York.”

The acquisition will give First American access to a clientele of “hundreds” of lending institutions, law firms and developers who have bought insurance through Preferred Land agents. First American has had a decade-long relationship with Preferred Land.

“We’ve known the people for many years and they’ve been an agent for us for many years,” Kennedy said. “This is definitely a purchase of a company and its people.”

Tile insurers are carriers who underwrite policies--research deeds, prepare documents, administer any claims--and insure against problems homeowners might have with title to their property.

About 30 Preferred Land employees will join First American’s New York subsidiary. James M. Orphanides, formerly president of Preferred Land, has been named executive vice president and director of the New York unit. He will manage the combined Manhattan operation.

First American is projecting that the merged New York operation will generate revenue of about $10 million in 1992, more than doubling First American’s New York business compared to 1991.

First American Financial had total revenue of $707 million in 1990. The company has not yet reported revenue for 1991.

“We always have been looking” for title agents, said Robert G. Bannon, president of First American’s New York operations. “Both parties felt that this was an opportune time.”

The acquisition marks the latest move by First American to work more closely with the agents who sell its policies. In January, the company sold a 50% stake in one of its title subsidiaries, North American Title Co.

Mark Matheson, an analyst with Cruttenden & Co. in Irvine, said the Preferred Land acquisition would “have a minimal impact overall” for First American Financial.

First American offers title services through a network of 7,000 offices and agents in all 50 states.