Fidelity National Says Profit More Than Doubled in 1993

Fidelity National Financial Inc., one of the nation’s largest title insurance companies, said Thursday that its 1993 profit more than doubled to $36.3 million, or $2.37 a share.

That compares with net income of $17.3 million, or $1.30 a share, a year earlier for the Irvine-based company. Revenues for the year rose 47% to $575.4 million, compared to $392.3 million in 1992.

William P. Foley II, president and chief executive, said in a statement that the company’s underwriting subsidiaries, which provide title insurance to homeowners, benefited from a heavy wave of mortgage refinancing, a trend in which borrowers take advantage of lower interest rates.

Frank P. Willey, executive vice president and general counsel, added that corporate acquisitions and an increase in home resales, which produce higher premiums, also figured prominently in the record results.

For the fourth quarter, the company reported a 126% rise in earnings to $12 million, or 76 cents a share, from $5.3 million, or 38 cents a share, a year earlier.

Quarterly revenues were $163.5 million, up from $123.9 million a year earlier. Raymond Dirks, analyst at RAS Securities Corp., a New York research firm, said Fidelity has done well throughout the recession.

Foley said acquisitions of Security Title and Guaranty Co. in the first quarter of 1993 and Meridian Title Insurance Co. in 1992 added a combined $156.2 million in revenues and pretax earnings of $11.7 million last year.

At Dec. 31, the company reported cash and investment securities were $268.4 million, up from $142.5 million a year ago.

Fidelity stock closed at $20.50 a share, up 25 cents. Foley led a private investment group that bought a controlling stake in Carl Karcher Enterprises Inc., the Anaheim fast-food chain, last December, which helped improve the personal finances of company founder Carl N. Karcher.