FAF Filings — First American Financial Corporation - FilingSpy
FAF
First American Financial Corporation
A provider of title insurance and settlement services for home buyers—plus home warranties—First American issues the policies that prove property ownership and protect buyers against title problems. It traces its roots to 1889, the very year Orange County, California, was created, when two rival title firms emerged and were merged in 1894 into the Orange County Title Company, renamed First American in 1960.
Q2 2026 revenue rose 16.2% to $1,841.3M while diluted EPS rose 70.4% to $1.41 year over year
Quarterly earnings grew well above the prior year but stepped down from Q1. rose 16.2% to $1,841.3M and rose 70.4% to $1.41 as title premiums and increased, while of $195.2M was down 43.7% from the March quarter. The business is profitable and growing, but the sequential drop leaves the pace of recovery unconfirmed.
Key takeaways
rose 16.2% to $1,841.3M and rose 70.4% to $1.41, with of $195.2M up 67.5% but down 43.7% from Q1 2026.
Title Insurance and Services grew 16.9% to $2.0B as direct premiums and escrow fees rose 14.8% on a 17.3% increase in domestic average revenue per order from commercial and purchase transactions.
Agent premiums increased 14.4% to $819.7M, reflecting the prior quarter's 21.2% rise in direct premiums under the typical .
Section summaries
Management's Discussion and Analysis
Total revenues rose 15% to $2.1B in Q2 2026, driven by higher title premiums and net investment gains.
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Title Insurance and Services grew 16.9% to $2.0B, with up 14.8% due to a 17.3% increase in domestic average revenue per order, particularly from commercial and purchase transactions.
swung to a $46.7M gain from a $5.4M loss a year earlier, primarily from higher fair values of marketable equity securities; prior-year losses included $35.5M in .
Title expanded to 15.7% from 12.6%, helped by higher revenues and even as personnel costs rose 9.5% on incentive compensation.
Holding company cash was $239.4M at midyear with no borrowings on the $900M ; was $362.2M for the first half of 2026.
What changed
The flagged at FY2025 ($1.096B) was not updated in this 10-Q; the filing restated no movement figure.
The $300M plan authorized in Q3 2025 was not reported as executed in Q2 2026, leaving its status open against the prior flag.
Residential purchase and refinance order volume continued under elevated mortgage rates per management, consistent with the Q1 2026 flag and no reversal stated.
Portfolio marks turned to gains this quarter ($46.7M) after the Q1 2026 12.0% rise in title net investment income, settling the prior watch on venture or portfolio marks.
Risk factors revised this quarter to add anti-takeover provisions including a classified board until 2029 and unilateral preferred stock issuance, a new item versus the annual report.
What to watch
Q3 2026 movement in the and the 2026 loss provision rate, last set at $1.096B and 3.0% at FY2025.
Execution of the $300M plan authorized in Q3 2025.
Q3 2026 residential purchase and refinance order volume as mortgage rates remain elevated.
Next portfolio marks after the Q2 2026 $46.7M net investment gain from marketable equity fair values.
increased 14.4% to $819.7M, reflecting the 21.2% rise in direct premiums from the prior quarter, consistent with the typical recognition lag.
Net investment gains swung to a $46.7M gain from a $5.4M loss a year ago, primarily from higher fair values of marketable equity securities, while prior-year losses included $35.5M in asset impairments.
Title expanded to 15.7% from 12.6%, benefiting from higher revenues and , though personnel costs rose 9.5% on increased incentive compensation.
Liquidity remains strong with $362.2M in for the first half of 2026, $239.4M in holding company cash, and no borrowings on the $900M .
Quantitative and Qualitative Disclosures About Market Risk
The Company’s primary exposure to market risk relates to interest rate risk associated with certain financial instruments. Although the Company monitors its risk associated with fluctuations in interest rates, it does not currently use derivative financial instruments on any sig…
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The Company’s primary exposure to market risk relates to interest rate risk associated with certain financial instruments. Although the Company monitors its risk associated with fluctuations in interest rates, it does not currently use derivative financial instruments on any significant scale to hedge these risks.
There have been no material changes in the Company’s market risks since the filing of its Annual Report on Form 10-K for the year ended December 31, 2025.
See Note 16 Litigation and Regulatory Contingencies to the condensed consolidated financial statements included in “Item 1. Financial Statements (unaudited)” of Part I of this report, which is incorporated by reference into this Item 1 of Part II.
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See Note 16 Litigation and Regulatory Contingencies to the condensed consolidated financial statements included in “Item 1. Financial Statements (unaudited)” of Part I of this report, which is incorporated by reference into this Item 1 of Part II.
Only one risk factor was revised this quarter, highlighting anti-takeover provisions that could deter favorable acquisition offers.
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The company's bylaws and certificate of incorporation contain multiple anti-takeover mechanisms, including a that will not be fully declassified until 2029.
Stockholders face significant limitations, such as the inability to act by written consent, remove directors without cause, or change the board's size.
The board can unilaterally issue preferred stock with terms it determines, including voting rights, or adopt a without stockholder approval.
Regulatory requirements for a and insurance holding company mean any third party must obtain prior approval to acquire control of the company.