First American Financial Corporation (NYSE:FAF) Q3 2023 Earnings Call Transcript

Ken DeGiorgio: Yes. I mean we are in general seeing success with DTC. And I think we’ve demonstrated, if we turn the dial up on our marketing expense, we see the almost – well, we see the immediate impact on contracts and DTC though it takes some time for profitability to be realized. I think the story with the home warranty is, that they’ve done a really good job of managing claims in an inflationary environment. So that’s been helping. Frequency is down because of lower policy counts, but severity is down. And then we’re realizing more and more of the time goes on the benefit of some pricing actions we’ve taken. So we’re pretty — we’re very positive on home warranty, and we’re real positive on the strides that that group has made on the DTC channel. So there’s real opportunity there.

Mark Hughes : Understood. And then finally, any update on instant decisioning either from the rollout potential benefit expense standpoint?

Ken DeGiorgio: Yes. It’s still early days there though we are anticipating rolling out two markets on a test basis at the beginning of next year. So, they’re hitting their milestones and we’re real positive about that. And as we’ve mentioned in the past, the great thing is it’s hard to do. It’s impossible to do if you don’t have the data, and we’ve got more data than anyone. And so it’s — we’re — it’s trending well.

Mark Hughes : Thank you very much.

Ken DeGiorgio: Thanks, Mark

Operator: Thank you. We have reached the end of the allotted time we had for questions. And that concludes this morning’s call. We would like to remind listeners that today’s call will be available for replay on the company’s website or by dialing 877 660-6853 or 201 612-7415 and enter the conference ID 13741673. The company would like to thank you for your participation. This concludes today’s conference call. You may now disconnect.