AM Best Affirms Credit Ratings of First American Title Insurance Group Members and First American Financial Corporation
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a' (Excellent) for First American Title Insurance Group (FATIG). The ratings agency also affirmed the Long-Term ICR of 'bbb' (Good) for First American Financial (FAF). The outlook remains stable. The ratings reflect FATIG's strongest balance sheet strength, adequate operating performance, and appropriate enterprise risk management. As the second-largest title insurance underwriter in the U.S., FATIG maintains solid market position despite challenging macroeconomic conditions with rising interest rates and real estate sector slowdown.
AM Best ha confermato il Rating di Forza Finanziaria (FSR) di A (Eccellente) e i Rating di Credito per Emittenti a Lungo Termine di 'a' (Eccellente) per First American Title Insurance Group (FATIG). L'agenzia di rating ha anche confermato il Rating ICR a Lungo Termine di 'bbb' (Buono) per First American Financial (FAF). Le prospettive rimangono stabili. I rating riflettono la solidità del bilancio di FATIG, un'adeguata performance operativa e un'adeguata gestione del rischio d'impresa. Essendo il secondo più grande sottoscrittore di assicurazioni sulla proprietà negli Stati Uniti, FATIG mantiene una solida posizione di mercato nonostante le sfide delle attuali condizioni macroeconomiche, con tassi d'interesse in aumento e un rallentamento del settore immobiliare.
AM Best ha confirmado el Rating de Fortaleza Financiera (FSR) de A (Excelente) y las Calificaciones de Crédito de Emisor a Largo Plazo de 'a' (Excelente) para First American Title Insurance Group (FATIG). La agencia de calificación también confirmó la Calificación ICR a Largo Plazo de 'bbb' (Buena) para First American Financial (FAF). Las perspectivas se mantienen estables. Las calificaciones reflejan la solidez del balance de FATIG, un rendimiento operativo adecuado y una gestión apropiada del riesgo empresarial. Como el segundo mayor suscriptor de seguros de títulos en los EE. UU., FATIG mantiene una sólida posición en el mercado a pesar de las desafiantes condiciones macroeconómicas, con tasas de interés en aumento y una desaceleración en el sector inmobiliario.
AM Best는 First American Title Insurance Group (FATIG)에 대해 A (우수)의 재무 강도 등급 (FSR)과 'a' (우수)의 장기 발행자 신용 등급을 확인했습니다. 평정 기관은 First American Financial (FAF)에 대해 'bbb' (양호)의 장기 ICR도 확인했습니다. 전망은 안정적입니다. 이 평가들은 FATIG의 강력한 재무 건전성, 적절한 운영 성과 및 적절한 기업 위험 관리 능력을 반영합니다. FATIG는 미국에서 두 번째로 큰 부동산 보험 언더라이터로서, 금리가 상승하고 부동산 부문이 둔화되는 어려운 거시 경제 환경 속에서도 견고한 시장 위치를 유지하고 있습니다.
AM Best a confirmé la note de solidité financière (FSR) de A (Excellente) et les notations de crédit à long terme de 'a' (Excellente) pour le First American Title Insurance Group (FATIG). L'agence de notation a également confirmé la note ICR à long terme de 'bbb' (Bonne) pour First American Financial (FAF). Les perspectives demeurent stables. Les notes reflètent la solidité du bilan de FATIG, une performance opérationnelle adéquate et une gestion appropriée des risques d'entreprise. En tant que deuxième plus grand assureur de titres aux États-Unis, FATIG maintient une solide position sur le marché malgré les conditions macroéconomiques difficiles, avec des taux d'intérêt en hausse et un ralentissement du secteur immobilier.
AM Best hat die Finanzstärke-Bewertung (FSR) von A (ausgezeichnet) sowie die langfristigen Emittenten-Kreditbewertungen von 'a' (ausgezeichnet) für die First American Title Insurance Group (FATIG) bestätigt. Die Rating-Agentur bestätigte auch die langfristige ICR von 'bbb' (gut) für First American Financial (FAF). Der Ausblick bleibt stabil. Die Bewertungen spiegeln die starke Bilanz von FATIG, eine angemessene Betriebsleistung und ein angemessenes Risiko Management wider. Als zweitgrößter Titelversicherer in den USA hat FATIG trotz herausfordernder makroökonomischer Bedingungen mit steigenden Zinsen und einer Abkühlung im Immobiliensektor eine solide Marktposition.
- Strongest balance sheet strength supported by risk-adjusted capitalization
- Second-largest market position in U.S. title insurance industry
- Superior surplus levels and conservative investment strategy
- Strong franchise value and financial flexibility
- Relatively modest financial leverage and solid interest coverage
- Operating results only in line with industry averages
- Facing challenges from rising interest rates
- Slowdown in real estate sector affecting market conditions
Insights
AM Best's affirmation of First American Title Insurance Group's A (Excellent) rating and stable outlook signals strong financial health and market positioning. The assessment highlights strongest balance sheet strength and risk-adjusted capitalization, which provides substantial protection against market volatility. As the second-largest title insurance underwriter in the U.S., FATIG's market position remains solid despite challenging macroeconomic conditions.
The conservative investment strategy and superior surplus levels offer a robust financial foundation. However, investors should note that while ratings are stable, the company faces headwinds from rising interest rates and real estate market slowdown. The parent company's modest financial leverage and solid interest coverage provide additional financial flexibility for future growth opportunities.
The ratings reflect FATIG’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
FATIG’s strongest balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), superior surplus levels and conservative investment strategy. Additionally, FATIG benefits from a strong franchise value, financial flexibility and operational support from FAF, which maintains relatively modest financial leverage and solid interest coverage. The group’s operating results have been in line with the title industry composite averages and supportive of the adequate operating performance assessment. FATIG is the second-largest underwriter in the
Negative rating action could occur if challenges from rising interest rates and a slowing economy pose a significant decline in operating profitability or a material decline in risk-adjusted capitalization levels. Negative rating action also could result should the holding company experience liquidity issues or a significant increase in leverage. Positive rating action could occur if the group experiences significant improvements in operating profitability and/or a material increase in risk-adjusted capitalization levels.
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the members of First American Title Insurance Group:
- First American Title Insurance Company
- First American Title Insurance Company of Australia Pty Limited
-
First American Title Insurance Company of
Louisiana - First European Title Insurance Company Limited
- First Title Insurance plc
- Ohio Bar Title Insurance Company
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Chul Lee
Senior Financial Analyst
+1 908 882 2005
chul.lee@ambest.com
Fred Eslami
Associate Director
+1 908 882 1759
fred.eslami@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
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