It has been about a month since the last earnings report for First American Financial (FAF) . Shares have lost about 0% in that time frame, underperforming the S&P 500. Will the recent trend continue leading up to its next earnings release, or is First American Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. First American Q1 Earnings & Re ...

First American Financial Corporation (FAF) has been gaining momentum on the back of higher interest rates in the cash and investment portfolio, improved agent premiums, stronger net realized investment gain and effective capital deployment. Growth Projections The Zacks Consensus Estimate for First American's 2024 earnings per share indicates a year-over-year increase of 8.1%. The consensus estimate for revenues is pegged at $6.55 billion, implying a year-over-year improvement of 9.1%. The consensus estimate ...

Revenue and Premiums - Total revenues decreased by $21.5 million, or 1.5%, in Q1 2024 compared to Q1 2023, primarily due to a decline in agent premiums of $26.6 million, or 4.5%[101] - Direct premiums and escrow fees were $403.2 million in Q1 2024, a decrease of $2.4 million, or 0.6%, compared to the same period last year[105] - Agent premiums were $563.8 million in Q1 2024, a decrease of $26.6 million, or 4.5%, reflecting a delay in recognition due to prior quarter mortgage origination activity[106] - Home warranty direct premiums increased to $97.7 million in Q1 2024, a rise of $1.1 million or 1.1% compared to Q1 2023[120] Investment Performance - Net investment income totaled $116.7 million in Q1 2024, down $7.9 million, or 6.3%, from Q1 2023, driven by declines in escrow and tax-deferred property exchange balances[109] - Net investment income for the corporate segment rose to $10.7 million in Q1 2024, up 30.5% from $8.2 million in Q1 2023[125] - Net investment gains were $18.9 million in Q1 2024, a significant increase from $6.5 million in Q1 2023, primarily from changes in fair values of marketable equity securities[110] - Net investment losses decreased to $10.6 million in Q1 2024 from $14.2 million in Q1 2023, reflecting improved investment performance[126] Expenses and Costs - Personnel costs were $452.5 million in Q1 2024, a decrease of $6.3 million, or 1.4%, attributed to lower salary expenses and headcount[111] - Other operating expenses increased by $9.6 million, or 4.3%, in Q1 2024, primarily due to higher legal expenses and an out-of-period adjustment[113] - Interest expense rose to $22.4 million in Q1 2024, an increase of $6.5 million, or 40.9%, mainly due to higher costs in the warehouse lending business[117] Profitability and Margins - The provision for policy losses was 3.0% in Q1 2024, down from 3.5% in Q1 2023, reflecting an ultimate loss rate of 3.75% for both years[114] - Title insurance segment recorded pretax margins of 5.5% for Q1 2024, down from 6.5% in Q1 2023[118] - Home warranty segment pretax margins improved to 19.3% in Q1 2024 from 15.3% in Q1 2023[123] - Net income attributable to the company was $46.7 million in Q1 2024, compared to $45.9 million in Q1 2023, representing an increase in earnings per diluted share from $0.44 to $0.45[132] Cash Flow and Liquidity - Cash provided by operating activities totaled $69.3 million in Q1 2024, compared to cash used of $92.3 million in Q1 2023[135] - The company paid a cash dividend of $0.53 per common share in Q1 2024, with expectations to maintain or increase future dividends[137] - As of March 31, 2024, the holding company had $104.1 million in cash and cash equivalents and $900.0 million available on its revolving credit facility[140] - The company plans to repay $300.0 million in senior unsecured notes due November 2024 using available cash or borrowings[141] Debt and Capitalization - The Company's debt to capitalization ratios were 30.3% and 28.6% at March 31, 2024, and December 31, 2023, respectively[143] - The Company has a $900.0 million revolving credit facility with JPMorgan Chase Bank, with no outstanding borrowings as of March 31, 2024[142] Investment Portfolio - As of March 31, 2024, 94% of the Company's investment portfolio consisted of debt securities, with 64% being U.S. government-backed or rated AAA[144] - Escrow deposits totaled $8.9 billion at March 31, 2024, down from $10.6 billion at December 31, 2023[146] - Trust assets administered by FA Trust amounted to $4.6 billion at March 31, 2024, compared to $4.4 billion at December 31, 2023[147] - Like-kind exchange funds administered by the Company totaled $1.7 billion at March 31, 2024, down from $1.8 billion at December 31, 2023[149] - Cash deposits in residential mortgage loan subservicing operations reached $1.0 billion at March 31, 2024, up from $830.5 million at December 31, 2023[150] Market Risks - The Company does not currently use derivative financial instruments on a significant scale to hedge interest rate risks[152] - There have been no material changes in the Company's market risks since the last annual report[153]

First American Financial Corporation (FAF) reported first-quarter 2024 operating income per share of 45 cents, which missed the Zacks Consensus Estimate by 32.8%. The bottom line increased 2.2% year over year.The insurer’s results reflect soft performances in the Title Insurance and Services segment and lower investment income, partially offset by improvement in the Home Warranty segment.Behind the HeadlinesOperating revenues of $1.4 billion decreased 1.4% year over year due to lower direct premiums and esc ...

First American Financial (FAF) reported $1.42 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 1.5%. EPS of $0.45 for the same period compares to $0.49 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.46 billion, representing a surprise of -2.62%. The company delivered an EPS surprise of -32.84%, with the consensus EPS estimate being $0.67.While investors scrutinize revenue and earnings changes year-over-year and how they compare wit ...

Exhibit 99.1 NEWS FOR IMMEDIATE RELEASE FIRST AMERICAN FINANCIAL REPORTS FIRST QUARTER 2024 RESULTS SANTA ANA, Calif., April 24, 2024 – First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the first quarter ended March 31, 2024. Current Quarter Highlights Selected Financial Information ($ in millions, except per share data) | ...

First American Financial Corporation (FAF) is well-poised for growth, driven by higher interest rates in the cash and investment portfolio, improved agent premiums, stronger net realized investment gain and effective capital deployment.The Title Insurance and Services business of First American is expected to gain momentum from improved agent premiums, higher direct premiums and escrow fees, as well as increased domestic residential purchase and commercial transactions.Higher operating revenues in the home ...

SANTA ANA, Calif.--(BUSINESS WIRE)--First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its February 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale tr ...

SANTA ANA, Calif.--(BUSINESS WIRE)--First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its February 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale tr ...

FORT MILL, S.C.--(BUSINESS WIRE)--ServiceMac, an innovative mortgage subservicer and a member of the First American family of companies, today announced the company has been honored as a Fannie Mae 2023 Servicer Total Achievement and Rewards™ (STAR™) Performer award recipient in the General Servicing category. Fannie Mae’s STAR Program recognizes high-performing mortgage servicers for competency, capacity and overall performance. “We founded ServiceMac to eliminate all of the obstacles servicers face in ...