First American Financial Reports Third Quarter 2021 Results

Rhea-AI Summary

First American Financial Corporation (NYSE: FAF) reported third-quarter 2021 earnings of $4.00 per diluted share, a significant rise from $1.62 in the same period last year. Total revenue surged 34% to $2.6 billion, driven by a 38% increase in title agent premiums. Net realized investment gains reached $275.2 million, primarily from venture investments including $195.3 million from Offerpad Solutions. The company maintains a positive outlook for the upcoming quarters, supported by strong performance in commercial and housing markets, despite a loss in its Specialty Insurance segment.

Positive

• Total revenue increased by 34% to $2.6 billion.
• Net income rose to $445.3 million, a 144% increase year-over-year.
• Net realized investment gains of $275.2 million were recorded, largely from venture investments.
• Title Insurance and Services segment achieved a pretax margin of 16.4%.

Negative

• Specialty Insurance segment reported a pretax loss of $1.9 million.
• Property and casualty business ended the quarter with a pretax loss of $10.5 million.
• Personnel costs rose 17% to $561.5 million, impacting profitability.

—Reports Third Quarter Earnings of $4.00 per Diluted Share, or $2.15 per Share Excluding Net Realized Investment Gains—

SANTA ANA, Calif.--(BUSINESS WIRE)-- First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today announced financial results for the third quarter ended Sept. 30, 2021.

Current Quarter Highlights

• Total revenue of $2.6 billion, up 34 percent compared with last year
  • Title agent premiums up 38 percent to $998.5 million
  • Title direct premiums and escrow fees up 17 percent to $794.2 million
  • Commercial title revenues up 84 percent to $262.4 million
• Net realized investment gains of $275.2 million, or $1.85 per diluted share
  • Recognized net realized investment gains on venture investments totaling $278.0 million, including $195.3 million from the company’s investment in Offerpad Solutions, Inc.
• Title Insurance and Services segment pretax margin of 16.4 percent
• Specialty Insurance segment pretax margin of (1.4) percent due to a pretax loss of $10.5 million in the company’s property and casualty business
  • Wind-down of property and casualty business remains on track for completion in third quarter 2022
• Repurchased 208,700 shares for a total of $14.1 million at an average price of $67.37
• Raised $650 million in a public offering of 10-year senior notes at 2.4 percent
• Debt-to-capital ratio of 28.5 percent, or 22.7 percent excluding secured financings payable of $593.6 million
• Cashflow from operations of $399.0 million, up 27 percent compared with last year

Selected Financial Information
($ in millions, except per share data)
		Three Months Ended
		September 30,
		2021				2020
Total revenue		$	2,555.9			$	1,913.7
Income before taxes			603.2				243.4
Net income		$	445.3			$	182.3
Net income per diluted share			4.00			1.62

Total revenue for the third quarter of 2021 was $2.6 billion, an increase of 34 percent relative to the same quarter of 2020. Net income in the third quarter was $445.3 million, or $4.00 per diluted share, compared with net income of $182.3 million, or $1.62 per diluted share, in the third quarter of 2020. Net realized investment gains in the quarter were $275.2 million, or $1.85 per diluted share, compared with net realized investment gains of $45.0 million, or 30 cents per diluted share, in the same quarter of last year. The net realized investment gains in the quarter were primarily related to venture investments, while net realized investment gains in the third quarter of last year were primarily driven by the change in the fair value of marketable equity securities.

“The company once again delivered outstanding financial results,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “Our title segment achieved a pretax margin of 16.4 percent resulting from record commercial and agency revenues which, along with continued growth in purchase, far outweighed the decline in refinance activity.

“We continue to realize strategic and financial benefits from the venture investments we’ve made over the past few years. This quarter, we recognized net realized investment gains totaling $278 million, the most significant of these gains coming from our investment in Offerpad Solutions, Inc.

“Looking to the fourth quarter and into 2022, we maintain a positive outlook based on the strength of the commercial and housing markets. We also remain highly focused on innovation and enhancing our leadership position in the digital transformation of the title business.”

Title Insurance and Services
($ in millions, except average revenue per order)
		Three Months Ended
		September 30,
		2021				2020
Total revenues		$	2,146.8			$	1,772.0
Income before taxes		$	352.4			$	337.5
Pretax margin			16.4	%			19.0	%
Title open orders(1)			318,800				410,600
Title closed orders(1)			252,700				291,500
U.S. Commercial
Total revenues		$	262.4			$	142.6
Open orders			34,600				31,100
Closed orders			20,200				15,900
Average revenue per order		$	13,000			$	9,000
(1) U.S. direct title insurance orders only.

Total revenues for the Title Insurance and Services segment during the third quarter were $2.1 billion, up 21 percent compared with the same quarter of 2020. Direct premiums and escrow fees were up 17 percent compared with the third quarter of 2020, driven by a 31 percent increase in the average revenue per direct title order closed, partly offset by a 13 percent decline in the number of direct title orders closed. The average revenue per direct title order rose to $2,884, primarily attributable to an increase in the average deal size in our commercial business and the impact of strong home price appreciation on residential purchase transactions. In addition, the shift in the order mix from lower-premium residential refinance transactions to higher-premium commercial and purchase transactions also impacted the average revenue per order. Agent premiums, which are recorded on approximately a one-quarter lag relative to direct premiums, were up 38 percent in the current quarter as compared with last year.

Information and other revenues were $307.6 million during the quarter, up 9 percent compared with the same quarter of last year, primarily due to higher demand for the company’s title information and loss mitigation products.

Investment income was $49.8 million in the third quarter, up $5.1 million, or 11 percent from the same quarter of last year. This increase was primarily attributable to higher average balances in the company’s investment portfolio. Net realized investment losses totaled $3.4 million in the current quarter, compared with net realized investment gains of $41.3 million in the third quarter of 2020.

Personnel costs were $561.5 million in the third quarter, an increase of $80.0 million, or 17 percent, compared with the same quarter of 2020. This increase was primarily attributable to higher salary expense due to an increase in the number of employees, and higher incentive compensation driven by growth in revenues and profitability.

Other operating expenses were $298.1 million in the third quarter, up $46.8 million, or 19 percent, compared with the third quarter of 2020. The increase was primarily due to higher production-related costs, and higher software and professional services expense.

The provision for policy losses and other claims was $71.7 million in the third quarter, or 4.0 percent of title premiums and escrow fees, a decrease from a 5.0 percent loss provision rate in the prior year. The current quarter rate reflects an ultimate loss rate of 4.0 percent for the current policy year with no change in the loss reserve estimates for prior policy years.

Depreciation and amortization expense was $37.8 million in the third quarter, up $1.6 million, or 4 percent, compared with the same period last year, due to higher amortization of intangible assets.

Pretax income was $352.4 million in the third quarter, compared with $337.5 million in the third quarter of 2020. Pretax margin was 16.4 percent in the current quarter, compared with 19.0 percent last year. Excluding the impact of net realized investment losses and gains, the pretax margin was 16.5 percent this year, compared with 17.1 percent last year.

Specialty Insurance
($ in millions)
		Three Months Ended
		September 30,
		2021				2020
Total revenues		$	132.2			$	136.3
Income before taxes		$	(1.9	)		$	(72.1	)
Pretax margin			(1.4	%)			(52.9	%)

Total revenues for the Specialty Insurance segment were $132.2 million in the third quarter of 2021, a decline of 3 percent compared with the third quarter of 2020. Pretax loss for the segment was $1.9 million, compared with a pretax loss of $72.1 million last year.

Home warranty revenues were up 7 percent this quarter to $107.9 million. The loss rate was 56.8 percent, compared with 64.5 percent last year, due to a decline in the number of claims, partly offset by higher average cost per claim. Home warranty’s pretax income was $8.6 million, compared with $3.6 million last year.

The wind-down of the property and casualty business remains on track for completion in the third quarter of 2022. At the close of the third quarter, policies-in-force had declined by 49 percent since the beginning of the year. The property and casualty business ended the quarter with a pretax loss of $10.5 million.

Corporate

Pretax income in the corporate segment was $252.7 million in the third quarter, up $274.7 million compared with the same quarter last year. During the quarter, a total of $278.0 million in net realized investment gains were recognized from venture investments, including a $195.3 million gain on the company’s investment in Offerpad Solutions, Inc.

Teleconference/Webcast

First American’s third-quarter 2021 results will be discussed in more detail on Thursday, Oct. 21, 2021, at 11 a.m. EDT, via teleconference. The toll-free dial-in number is 877-407-8293. Callers from outside the United States may dial +1-201-689-8349.

The live audio webcast of the call will be available on First American’s website at www.firstam.com/investor. An audio replay of the conference call will be available through Nov. 4, 2021, by dialing 201-612-7415 and using the conference ID 13724239. An audio archive of the call will also be available on First American’s investor website.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.1 billion in 2020, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2021, First American was named to the Fortune 100 Best Companies to Work For^® list for the sixth consecutive year. More information about the company can be found at www.firstam.com.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its U.S. direct title insurance operations, which are posted approximately 10 to 12 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary contain, and responses to investor questions may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.” These forward-looking statements include, without limitation, statements regarding future operations, performance, financial condition, prospects, plans and strategies. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include, without limitation: interest rate fluctuations; changes in the performance of the real estate markets; volatility in the capital markets; unfavorable economic conditions; the coronavirus pandemic and responses thereto; impairments in the company’s goodwill or other intangible assets; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; failures at financial institutions where the company deposits funds; regulatory oversight and changes in applicable laws and government regulations, including privacy and data protection laws; heightened scrutiny by legislators and regulators of the company’s title insurance and services segment and certain other of the company’s businesses; regulation of title insurance rates; limitations on access to public records and other data; climate change, health crises, severe weather conditions and other catastrophe events; changes in relationships with large mortgage lenders and government-sponsored enterprises; changes in measures of the strength of the company’s title insurance underwriters, including ratings and statutory capital and surplus; losses in the company’s investment portfolio or venture capital portfolio; material variance between actual and expected claims experience; defalcations, increased claims or other costs and expenses attributable to the company’s use of title agents; any inadequacy in the company’s risk management framework; systems damage, failures, interruptions, cyberattacks and intrusions, or unauthorized data disclosures; innovation efforts of the company and other industry participants and any related market disruption; errors and fraud involving the transfer of funds; the company’s use of a global workforce; inability of the company’s subsidiaries to pay dividends or repay funds; and other factors described in the company’s annual report on Form 10-Q for the quarter ended June 30, 2021, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Use of Non-GAAP Financial Measures

This news release and related management commentary contain certain financial measures that are not presented in accordance with generally accepted accounting principles (GAAP), including an adjusted debt to capitalization ratio, personnel and other operating expense ratios, success ratios, net operating revenues; and adjusted revenues, adjusted pretax income, adjusted earnings per share, and adjusted pretax margins for the company, its title insurance and services segment and its specialty insurance segment. The company is presenting these non-GAAP financial measures because they provide the company’s management and investors with additional insight into the financial leverage, operational efficiency and performance of the company relative to earlier periods and relative to the company’s competitors. The company does not intend for these non-GAAP financial measures to be a substitute for any GAAP financial information. In this news release, these non-GAAP financial measures have been presented with, and reconciled to, the most directly comparable GAAP financial measures. Investors should use these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. Because not all companies use identical calculations, the presentation of these non-GAAP measures may not be comparable to other similarly titled measures of other companies.

First American Financial Corporation
Summary of Consolidated Financial Results and Selected Information
(in thousands, except per share amounts and title orders, unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020
Total revenues		$	2,555,928			$	1,913,721			$	6,848,048			$	4,935,393
Income before income taxes		$	603,174			$	243,371			$	1,308,612			$	540,990
Income tax expense			152,709				59,780				320,281				121,859
Net income			450,465				183,591				988,331				419,131
Less: Net income attributable to noncontrolling interests			5,215				1,312				7,166				2,993
Net income attributable to the Company		$	445,250			$	182,279			$	981,165			$	416,138
Net income per share attributable to stockholders:
Basic		$	4.01			$	1.62			$	8.84			$	3.69
Diluted		$	4.00			$	1.62			$	8.81			$	3.68
Cash dividends declared per share		$	0.51			$	0.44			$	1.43			$	1.32
Weighted average common shares outstanding:
Basic			110,956				112,584				111,000				112,913
Diluted			111,368				112,843				111,344				113,176
Selected Title Insurance Segment Information
Title orders opened(1)			318,800				410,600				1,011,500				1,116,300
Title orders closed(1)			252,700				291,500				811,400				748,700
Paid title claims		$	34,180			$	43,134			$	107,022			$	120,852
(1) U.S. direct title insurance orders only.

First American Financial Corporation
Selected Consolidated Balance Sheet Information
(in thousands, unaudited)
		September 30,				December 31,
		2021				2020
Cash and cash equivalents		$	1,953,987			$	1,275,466
Investments			10,356,604				7,150,689
Goodwill and other intangible assets, net			1,604,866				1,573,102
Total assets			16,686,064				12,795,988
Reserve for claim losses			1,261,515				1,178,004
Notes and contracts payable			1,648,863				1,010,756
Total stockholders’ equity		$	5,597,135			$	4,909,972

First American Financial Corporation
Segment Information
(in thousands, unaudited)
Three Months Ended						Title				Specialty				Corporate
September 30, 2021		Consolidated				Insurance				Insurance				(incl. Elims.)
Revenues
Direct premiums and escrow fees		$	921,336			$	794,215			$	127,121			$	—
Agent premiums			998,534				998,534				—				—
Information and other			310,145				307,616				2,789				(260	)
Net investment income			50,670				49,827				1,682				(839	)
Net realized investment gains (losses)			275,243				(3,413	)			634				278,022
			2,555,928				2,146,779				132,226				276,923
Expenses
Personnel costs			584,649				561,461				22,708				480
Premiums retained by agents			794,165				794,165				—				—
Other operating expenses			333,195				298,149				25,103				9,943
Provision for policy losses and other claims			155,300				71,710				83,590				—
Depreciation and amortization			39,238				37,792				1,410				36
Impairment losses on exit of business			—				—				—				—
Premium taxes			26,981				25,679				1,302				—
Interest			19,226				5,457				—				13,769
			1,952,754				1,794,413				134,113				24,228
Income (loss) before income taxes		$	603,174			$	352,366			$	(1,887	)		$	252,695
Three Months Ended						Title				Specialty				Corporate
September 30, 2020		Consolidated				Insurance				Insurance				(incl. Elims.)
Revenues
Direct premiums and escrow fees		$	807,947			$	680,910			$	127,037			$	—
Agent premiums			722,434				722,434				—				—
Information and other			285,882				282,671				3,450				(239	)
Net investment income			52,466				44,726				2,105				5,635
Net realized investment gains			44,992				41,252				3,740				—
			1,913,721				1,771,993				136,332				5,396
Expenses
Personnel costs			511,298				481,417				22,271				7,610
Premiums retained by agents			572,780				572,780				—				—
Other operating expenses			281,079				251,304				20,899				8,876
Provision for policy losses and other claims			157,836				70,167				87,669				—
Depreciation and amortization			38,227				36,194				1,995				38
Impairment losses on exit of business			73,264				—				73,264				—
Premium taxes			19,885				17,522				2,363				—
Interest			15,981				5,129				—				10,852
			1,670,350				1,434,513				208,461				27,376
Income (loss) before income taxes		$	243,371			$	337,480			$	(72,129	)		$	(21,980	)

First American Financial Corporation
Segment Information
(in thousands, unaudited)
Nine Months Ended						Title				Specialty				Corporate
September 30, 2021		Consolidated				Insurance				Insurance				(incl. Elims.)
Revenues
Direct premiums and escrow fees		$	2,624,462			$	2,238,956			$	385,506			$	—
Agent premiums			2,748,723				2,748,723				—				—
Information and other			890,476				881,262				9,994				(780	)
Net investment income			155,797				139,963				5,432				10,402
Net realized investment gains			428,590				45,405				19,403				363,782
			6,848,048				6,054,309				420,335				373,404
Expenses
Personnel costs			1,708,097				1,622,432				69,361				16,304
Premiums retained by agents			2,183,890				2,183,890				—				—
Other operating expenses			959,317				860,223				71,468				27,626
Provision for policy losses and other claims			445,677				199,508				246,169				—
Depreciation and amortization			118,475				113,976				4,392				107
Impairment losses on exit of business			—				—				—				—
Premium taxes			72,034				67,195				4,839				—
Interest			51,946				16,500				—				35,446
			5,539,436				5,063,724				396,229				79,483
Income before income taxes		$	1,308,612			$	990,585			$	24,106			$	293,921
Nine Months Ended						Title				Specialty				Corporate
September 30, 2020		Consolidated				Insurance				Insurance				(incl. Elims.)
Revenues
Direct premiums and escrow fees		$	2,080,568			$	1,712,946			$	367,622			$	—
Agent premiums			1,920,011				1,920,011				—				—
Information and other			728,563				719,196				9,992				(625	)
Net investment income			156,760				147,628				7,005				2,127
Net realized investment gains			49,491				35,777				7,199				6,515
			4,935,393				4,535,558				391,818				8,017
Expenses
Personnel costs			1,392,445				1,320,097				64,398				7,950
Premiums retained by agents			1,520,559				1,520,559				—				—
Other operating expenses			788,407				700,090				61,731				26,586
Provision for policy losses and other claims			414,001				181,648				232,353				—
Depreciation and amortization			110,652				104,705				5,832				115
Impairment losses on exit of business			73,264				—				73,264				—
Premium taxes			53,554				47,360				6,194				—
Interest			41,521				12,838				—				28,683
			4,394,403				3,887,297				443,772				63,334
Income (loss) before income taxes		$	540,990			$	648,261			$	(51,954	)		$	(55,317	)

First American Financial Corporation
Reconciliation of Pretax Margins and Earnings per Diluted Share
Excluding Net Realized Investment Gains and Losses ("NRIG(L)")
(in thousands, except margin and per share amounts, unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020
Consolidated
Total revenues		$	2,555,928			$	1,913,721			$	6,848,048			$	4,935,393
Less: NRIG(L)			275,243				44,992				428,590				49,491
Total revenues excluding NRIG(L)		$	2,280,685			$	1,868,729			$	6,419,458			$	4,885,902
Pretax income		$	603,174			$	243,371			$	1,308,612			$	540,990
Less: NRIG(L)			275,243				44,992				428,590				49,491
Pretax income excluding NRIG(L)		$	327,931			$	198,379			$	880,022			$	491,499
Pretax margin			23.6	%			12.7	%			19.1	%			11.0	%
Less: Pretax margin impact of NRIG(L)			9.2	%			2.1	%			5.4	%			0.9	%
Pretax margin excluding NRIG(L)			14.4	%			10.6	%			13.7	%			10.1	%
Earnings per diluted share (EPS)		$	4.00			$	1.62			$	8.81			$	3.68
Less: EPS impact of NRIG(L)			1.85			$	0.30				2.91				0.34
EPS excluding NRIG(L)		$	2.15			$	1.32			$	5.90			$	3.34
Title Insurance and Services Segment
Total revenues		$	2,146,779			$	1,771,993			$	6,054,309			$	4,535,558
Less: NRIG(L)			(3,413	)			41,252				45,405				35,777
Total revenues excluding NRIG(L)		$	2,150,192			$	1,730,741			$	6,008,904			$	4,499,781
Pretax income		$	352,366			$	337,480			$	990,585			$	648,261
Less: NRIG(L)			(3,413	)			41,252				45,405				35,777
Pretax income excluding NRIG(L)		$	355,779			$	296,228			$	945,180			$	612,484
Pretax margin			16.4	%			19.0	%			16.4	%			14.3	%
Less: Pretax margin impact of NRIG(L)			(0.1	)%			1.9	%			0.7	%			0.7	%
Pretax margin excluding NRIG(L)			16.5	%			17.1	%			15.7	%			13.6	%
Specialty Insurance Segment
Total revenues		$	132,226			$	136,332			$	420,335			$	391,818
Less: NRIG(L)			634				3,740				19,403				7,199
Total revenues excluding NRIG(L)		$	131,592			$	132,592			$	400,932			$	384,619
Pretax income		$	(1,887	)		$	(72,129	)		$	24,106			$	(51,954	)
Less: NRIG(L)			634				3,740				19,403				7,199
Pretax income excluding NRIG(L)		$	(2,521	)		$	(75,869	)		$	4,703			$	(59,153	)
Pretax margin			(1.4	)%			(52.9	)%			5.7	%			(13.3	)%
Less: Pretax margin impact of NRIG(L)			0.5	%			4.3	%			4.5	%			2.1	%
Pretax margin excluding NRIG(L)			(1.9	)%			(57.2	)%			1.2	%			(15.4	)%
Totals may not sum due to rounding.

First American Financial Corporation
Expense and Success Ratio Reconciliation
Title Insurance and Services Segment
($ in thousands, unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2021				2020				2021				2020
Total revenues		$	2,146,779			$	1,771,993			$	6,054,309			$	4,535,558
Less: Net realized investment (losses) gains			(3,413	)			41,252				45,405				35,777
Net investment income			49,827				44,726				139,963				147,628
Premiums retained by agents			794,165				572,780				2,183,890				1,520,559
Net operating revenues		$	1,306,200			$	1,113,235			$	3,685,051			$	2,831,594
Personnel and other operating expenses		$	859,610			$	732,721			$	2,482,655			$	2,020,187
Ratio (% net operating revenues)			65.8	%			65.8	%			67.4	%			71.3	%
Ratio (% total revenues)			40.0	%			41.4	%			41.0	%			44.5	%
Change in net operating revenues		$	192,965							$	853,457
Change in personnel and other operating expenses			126,889								462,468
Success Ratio(1)			66	%							54	%
(1) Change in personnel and other operating expenses divided by change in net operating revenues.

First American Financial Corporation
Supplemental Direct Title Insurance Order Information(1)
(unaudited)
		Q321				Q221				Q121				Q420				Q320
Open Orders per Day
Purchase			2,191				2,381				2,275				1,925				2,405
Refinance			1,771				1,752				2,652				2,923				3,154
Refinance as % of residential orders			45	%			42	%			54	%			60	%			57	%
Commercial			540				579				537				509				486
Default and other			479				436				491				273				370
Total open orders per day			4,981				5,148				5,954				5,629				6,416
Closed Orders per Day
Purchase			1,782				1,873				1,495				1,740				1,820
Refinance			1,435				1,628				2,506				2,430				2,320
Refinance as % of residential orders			45	%			47	%			63	%			58	%			56	%
Commercial			316				315				272				307				248
Default and other			416				420				442				207				167
Total closed orders per day			3,948				4,236				4,715				4,684				4,555
Average Revenue per Order (ARPO)
Purchase		$	3,044			$	3,001			$	2,794			$	2,826			$	2,726
Refinance			1,246				1,260				1,228				1,228				1,204
Commercial			12,993				11,078				9,838				11,703				8,993
Default and other			179				161				128				55				46
Total ARPO		$	2,884			$	2,651			$	2,118			$	2,457			$	2,193
Business Days			64				64				61				63				64
(1) U.S. operations only.
Totals may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005285/en/

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

714-250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

714-250-5214

Source: First American Financial Corporation

FAQ

What were First American Financial's earnings for Q3 2021?

First American Financial reported earnings of $4.00 per diluted share for Q3 2021.

How much revenue did FAF generate in Q3 2021?

FAF generated $2.6 billion in revenue for the third quarter of 2021.

What were the significant net realized investment gains for FAF in Q3 2021?

The company recognized net realized investment gains of $275.2 million in Q3 2021, with significant contributions from Offerpad Solutions.

What is the outlook for FAF following Q3 2021 earnings?

First American maintains a positive outlook based on the strength of commercial and housing markets.