Financial Data and Key Metrics Changes - The company generated total revenue of $3.6 billion in the second quarter, with adjusted net earnings of $318 million or $1.16 per diluted share, compared to $338 million or $1.24 per share for the same period in 2024 [13][14] - Adjusted pretax title earnings were $337 million, a 4% increase from the previous year, with an adjusted pretax title margin of 15.5%, down from 16.2% in the prior year [5][15] - The F and G segment reported a 13% increase in assets under management to $69.2 billion [11] Business Line Data and Key Metrics Changes - The title segment generated $2.2 billion in total revenue, with direct premiums increasing by 12% year-over-year [14][15] - Daily purchase orders opened increased by 5% compared to 2024, while refinance orders saw a significant 28% increase [6][8] - Commercial revenue reached $626 million in the first half of the year, up 23% from the previous year, with national daily orders opened up 11% [8][9] Market Data and Key Metrics Changes - Total orders opened averaged 5,800 per day in the second quarter, with July showing a 5% increase compared to the prior year [10] - The company experienced a strong performance in commercial refinance orders, with a 35% increase in July compared to the previous year [51] Company Strategy and Development Direction - The company continues to invest in security, technology, and recruiting to position itself for long-term growth, despite higher expenses impacting margins [6][17] - The F and G segment is pursuing a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in transaction volumes and the potential for improved profitability as market conditions normalize [10][46] - The company anticipates that elevated health claims will moderate but remain above last year's levels, with normalization expected in 2026 [45][48] Other Important Information - The company repurchased 2.9 million shares for $159 million during the second quarter, returning nearly $300 million of capital to shareholders [22][23] - The consolidated debt to capitalization ratio remains within the long-term target range of 20% to 30% [22] Q&A Session Summary Question: Thoughts on holding separate businesses under the same company - Management is pleased with F and G's performance, contributing 32% of adjusted earnings, and is excited about the new reinsurance strategy [28][29] Question: Details on personnel expenses - Personnel expenses increased due to active recruiting and elevated health claims, with a significant impact from medical claims [30][33] Question: Margin and expense outlook - Management expects health claims to peak this quarter and then subside, maintaining confidence in achieving a 15% to 20% margin for the year [45] Question: Commercial market momentum - National commercial open orders were up 22% year-over-year, with a strong pipeline expected for the second half of the year [49][50] Question: Buyback strategy - The company plans to remain active in the market for share buybacks, especially if share prices weaken [56][60] Question: Regulatory updates - No significant changes in regulatory momentum impacting the title industry were noted, with ongoing engagement with the FHFA [76] Question: Recruiting strategy - The company is focused on hiring revenue-attached personnel, akin to mini acquisitions, to enhance growth [78]