Key Takeaways FAF expects modest improvement in both residential purchase and refinance businesses for 2025. Direct premiums, escrow fees, and title agent premiums are expected to continue driving top-line growth. Favorable growth estimates, improving commercial business and affordable shares boost FAF's long-term outlook.First American Financial Corporation (FAF) shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.18X is lower than ...

First American Financial Corporation (FAF) shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.23X is lower than the industry average of 1.49X, the Finance sector’s 4.1X and the Zacks S&P 500 Composite’s 7.82X. The insurer has a Value Score of B.Shares of RenaissanceRe Holdings Ltd. (RNR) , NMI Holdings Inc. (NMIH) and Axis Capital Holdings Limited (AXS) are also trading at a discount to the industry average.Image Source: Zacks Investm ...

First American Financial (FAF) Q1 2025 Earnings Call April 24, 2025 06:44 PM ET Company Participants Craig Barberio - Vice President, Investor RelationsMark Seaton - CEOMatthew Wajner - CFOJohn Campbell - Managing DirectorBose George - Managing DirectorMark Devries - DirectorGeoffrey Dunn - Partner Conference Call Participants Terry Ma - Senior Equity Research AnalystMark Hughes - Analyst Operator and welcome to the First American Financial Corporation First Quarter Earnings Conference Call. At this time, a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission file number: 001-34580 FIRST AMERICAN FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 26-1911571 (State or other jurisdiction of incorporation or organization) 1 First American Way, Santa Ana, California 92707-5913 (Address of principal executive offices) (Zip Code) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quart ...

First American Financial Corporation (NYSE:FAF) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Craig Barberio - Vice President, Investor Relations Mark Seaton - Chief Executive Officer Matt Wajner - Chief Financial Officer Conference Call Participants Terry Ma - Barclays John Campbell - Stephens Inc. Bose George - KBW Mark Hughes - Truist Securities Mark DeVries - Deutsche Bank Geoffrey Dunn - Dowling & Partners Operator Greetings, and welcome to the First American Financia ...

First American Financial (FAF) Q1 2025 Earnings Call April 24, 2025 11:00 AM ET Company Participants Craig Barberio - Vice President, Investor RelationsMark Seaton - CEOMatthew Wajner - CFOJohn Campbell - Managing DirectorBose George - Managing DirectorMark Devries - DirectorGeoffrey Dunn - Partner Conference Call Participants Terry Ma - Senior Equity Research AnalystMark Hughes - Analyst Operator and welcome to the First American Financial Corporation First Quarter Earnings Conference Call. At this time, a ...

The insurer's results reflect improved investment income, solid performances in the Title Insurance and Services and Home Warranty segments, partially offset by higher expenses. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Behind the Headlines First American Financial Corporation (FAF) reported first-quarter 2025 operating income per share of 84 cents, which beat the Zacks Consensus Estimate by 29.2%. The bottom line surged 86.7% year over year. Operating revenues of $1.5 billio ...

Core Insights - First American Financial (FAF) reported revenue of $1.58 billion for the quarter ended March 2025, reflecting an 11.1% increase year-over-year [1] - Earnings per share (EPS) reached $0.84, a significant rise from $0.45 in the same quarter last year, with an EPS surprise of +29.23% compared to the consensus estimate of $0.65 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.53 billion, resulting in a surprise of +3.21% [1] Revenue Breakdown - Direct premiums and escrow fees amounted to $561.10 million, slightly below the estimated $569.29 million, but still showing a +12% change year-over-year [4] - Net investment income was reported at $135.20 million, compared to the average estimate of $140.62 million, marking a +5.7% increase from the previous year [4] - Information and other revenues totaled $242.20 million, slightly under the estimated $243.05 million, with an +8.6% change year-over-year [4] - Agent premiums reached $654.60 million, surpassing the average estimate of $632.57 million, representing a +16.1% increase from the year-ago quarter [4] Stock Performance - Over the past month, shares of First American Financial have returned -11.2%, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Total revenue for Q1 2025 was $1.582 billion, an increase of 11% compared to Q1 2024[5] - Net income for the quarter was $74.2 million, or $0.71 per diluted share, compared to $46.7 million, or $0.45 per diluted share in the prior year[6] - Adjusted net income was $87.9 million, or $0.84 per diluted share, up from $46.9 million, or $0.45 per diluted share year-over-year[6] - Commercial revenues increased by 29% to $184 million compared to the same quarter last year[6] - Title Insurance and Services segment revenues were $1.484 billion, up 12% year-over-year, with a pretax margin of 7.2%[9] - Home Warranty segment revenues were $107.8 million, a 2% increase from the previous year, with a pretax margin of 22.9%[19] - Total revenues for Q1 2025 increased to $1,582.3 million, up 11.1% from $1,424.6 million in Q1 2024[31] - Net income attributable to the company rose to $74.2 million, a 58.5% increase compared to $46.7 million in the same period last year[31] - Basic earnings per share (EPS) increased to $0.72, up from $0.45 in Q1 2024, reflecting a 60% growth[31] - Adjusted total revenues for Q1 2025 were $1,593.1 million, compared to $1,415.6 million in Q1 2024, marking a 12.5% increase[39] - Adjusted net income for Q1 2025 was $87.9 million, up from $46.9 million in Q1 2024, indicating a 87.5% increase[39] Investment and Assets - Investment income was $138 million, up 18% from the prior year, despite net investment losses of $11 million[6][12] - Total assets as of March 31, 2025, were $15,497.4 million, an increase from $14,908.6 million as of December 31, 2024[34] - Cash and cash equivalents increased to $2,045.1 million from $1,718.1 million at the end of 2024, reflecting a growth of 19%[34] - Net investment income increased to $137.7 million, up from $116.7 million year-over-year[47] Expenses and Costs - Personnel costs rose to $485 million, a 7% increase compared to Q1 2024, primarily due to higher incentive compensation[13] - Personnel and other operating expenses were $731.2 million, up from $686.2 million, resulting in a success ratio of 51%[47] - The ratio of personnel and other operating expenses to net operating revenues improved to 88.7% from 93.2%[47] Orders and Operations - Title orders opened reached 163,900, representing an increase of 5.5% from 155,500 in Q1 2024[31] - Total open orders per day increased to 2,687, compared to 2,271 in Q4 2024, marking a significant growth[50] - Average Revenue per Order (ARPO) for total orders decreased to $3,920 from $4,343 in Q4 2024[50] - Closed orders per day totaled 1,728, down from 1,902 in the previous quarter[50] - Refinance orders accounted for 24% of residential orders, a decrease from 28% in Q4 2024[50] Shareholder Returns - The company declared cash dividends of $0.54 per share, slightly up from $0.53 per share in Q1 2024[31] - The company repurchased 447,812 shares for $28 million at an average price of $62.99[6]

Core Viewpoint - First American Financial (FAF) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - The company has a solid track record of surpassing earnings estimates, with an average surprise of 21.34% over the last two quarters [2]. - In the most recent quarter, FAF reported earnings of $1.35 per share, exceeding the expected $1.07 per share by a surprise of 26.17%. In the previous quarter, it reported $1.34 per share against an estimate of $1.15 per share, resulting in a surprise of 16.52% [3]. Earnings Estimates and Predictions - Recent estimates for FAF have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [6]. - The current Earnings ESP for FAF is +5.85%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [9]. Zacks Rank and Success Rate - FAF holds a Zacks Rank of 3 (Hold), and stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% success rate in beating consensus estimates [7][9]. - The next earnings report for FAF is expected to be released on April 23, 2025 [9].