First American Financial Corp (NYSE: FAF)

First American Financial Corporation traces its heritage back to 1889. The company provides title insurance settlement services and related financial solutions through its title insurance and services segment and its home warranty segment. It also offers banking trust and wealth management services mortgage subservicing and warehouse lending. The core business depends on activity in residential and commercial real estate markets. The company operates a network of direct operations and agents across the United States and in several international markets including Canada the United Kingdom South Korea Australia and New Zealand. Through its title plants and data assets it supports underwriting risk mitigation and closing processes for real estate transactions.

The company generates revenue primarily from title insurance premiums and associated closing and escrow fees. Additional income comes from home warranty contract fees service charges and renewal premiums. Banking and trust operations produce interest income on deposits and fees for wealth management and custody services. The corporate segment contributes returns from venture investments financing facilities and the runoff of the former property and casualty insurance business. Revenue from the title insurance and services segment represented approximately ninety three point six percent of consolidated revenues in 2025 while the home warranty segment contributed the remainder.

The company operates through the following segments.

• The Title Insurance and Services Segment issues title insurance policies on residential and commercial property in the United States and offers similar products internationally. It provides closing and escrow services and accommodates tax deferred exchanges. The segment maintains title plants and records and supplies appraisals and valuation related products. It handles lien release document custodial and default related services and generates documents. The segment also offers warehouse lending mortgage subservicing and provides banking trust and wealth management services.

• The Home Warranty Segment sells residential service contracts that cover heating and air conditioning systems and certain appliances against failures from normal usage. Coverage is typically for one year and is renewable annually at the contract holder's option subject to company approval. Fees are generally paid at closing of a home purchase or up front or monthly by the consumer. The contract holder pays a service fee for each trade call. First year warranties are marketed through real estate brokers and agents and directly to consumers while renewals are sold directly to consumers.

• The Corporate Segment consists of financing facilities a venture investment portfolio operating results from the former property and casualty insurance business and corporate services that support operations. The venture portfolio includes investments in private venture stage companies in real estate and related industries funds that invest in similar companies and a publicly traded investment. These holdings are held primarily for strategic reasons with the expectation of financial benefits over time.

First American Financial Corporation is recognized as the second largest provider of title insurance in the United States based on market share data from the American Land Title Association. Its major nationwide competitors include Fidelity National Financial Old Republic International and Stewart Title Guaranty Company along with their affiliates. The company competes on service quality price relationships and the ease of access to its products and services. Competitive advantages stem from its extensive title plant network its data driven underwriting tools its strong brand reputation and its ability to offer integrated banking trust and wealth management solutions. International operations in Canada the United Kingdom South Korea Australia and New Zealand further diversify its revenue base and enhance its global scale.

The company serves mortgage lenders homebuyers real estate agents brokers attorneys homebuilders and commercial developers for its title insurance and settlement services. Home warranty customers include homeowners and real estate professionals who purchase coverage for residential systems and appliances. Banking trust and wealth management clients consist of affiliated entities third party title agents and individual customers seeking deposit custody and investment services. The corporate segment serves investors in its venture portfolio and counterparties in its financing facilities.