CSIMarket
 
First American Financial Corporation  (FAF)
Other Ticker:  
 
    Sector  Financial    Industry Insurance Brokerage
   Industry Insurance Brokerage
   Sector  Financial
 
Price: $55.2500 $-0.20 -0.361%
Day's High: $55.74 Week Perf: -2.32 %
Day's Low: $ 54.71 30 Day Perf: -5.85 %
Volume (M): 3,428 52 Wk High: $ 65.55
Volume (M$): $ 189,386 52 Wk Avg: $58.00
Open: $55.07 52 Wk Low: $49.55



 Market Capitalization (Millions $) 5,757
 Shares Outstanding (Millions) 104
 Employees 17,955
 Revenues (TTM) (Millions $) 6,259
 Net Income (TTM) (Millions $) 235
 Cash Flow (TTM) (Millions $) -781
 Capital Exp. (TTM) (Millions $) 276

First American Financial Corporation

The Company, through its subsidiaries, is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment. The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. It also provides products, services and solutions involving the use of real property related data, including data derived from its proprietary database, which are designed to mitigate risk or otherwise facilitate real estate transactions. It maintains, manages and provides access to title plant records and images and, in addition, provides banking, trust and investment advisory services. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products. In addition, our corporate function consists of certain financing facilities as well as the corporate services that support our business operations.

The substantial majority of our business is dependent upon activity in the real estate and mortgage markets, which are cyclical and seasonal. In the current market environment, we are focused on growing our core title insurance and closing services business, building and expanding our data assets to strengthen our core business and offer additional solutions for our customers, and managing complementary businesses in ways that support our core business. We are also focused on continued improvement of our customers’ experiences with our products, services and solutions, and we remain committed to efficiently managing our business to market conditions throughout business cycles.

Our title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory services.

In most instances mortgage lenders and purchasers of real estate desire to be protected from loss or damage in the event of defects in the title they acquire. Title insurance is a means of providing such protection.
Title Policies. Title insurance policies insure the interests of owners or lenders against defects in the title to real property. These defects include adverse ownership claims, liens, encumbrances or other matters affecting title. Title insurance policies generally are issued on the basis of a title report, which is typically prepared after a search of one or more of public records, maps, documents and prior title policies to ascertain the existence of easements, restrictions, rights of way, conditions, encumbrances or other matters affecting the title to, or use of, real property. In certain limited instances, a visual inspection of the property is also made. To facilitate the preparation of title reports, copies and/or abstracts of public records, maps, documents and prior title policies may be compiled and indexed to specific properties in an area. This compilation is known as a “title plant.”

The beneficiaries of title insurance policies usually are real estate buyers and mortgage lenders. A title insurance policy indemnifies the named insured and certain successors in interest against title defects, liens and encumbrances existing as of the date of the policy and not specifically excepted from its provisions. The policy typically provides coverage for the real property mortgage lender in the amount of its outstanding mortgage loan balance and for the buyer in the amount of the purchase price of the property. In some cases the policy might provide insurance in a greater amount, such as where the buyer anticipates constructing improvements on the property. The potential for claims under a title insurance policy issued to a mortgage lender generally ceases upon repayment of the mortgage loan. The potential for claims under a title insurance policy issued to a buyer generally ceases upon the sale or transfer of the insured property.


Before issuing title policies, title insurers typically seek to limit their risk of loss by accurately performing title searches and examinations and, in many instances, curing title defects identified therein. These searches, examinations and curative efforts distinguish title insurers from other insurers, such as property and casualty insurers. Whereas title insurers generally insure against losses arising out of circumstances existing as of the date of the policy, property and casualty insurers generally insure against losses arising out of events that occur subsequent to policy issuance. As a result of these differences, title insurers typically experience relatively low claims, as a percentage of premiums, when compared to property and casualty insurers, but have relatively high expenses. The primary costs of a title insurer pertain to personnel and other costs associated with the search and examination process, the curative process, the preparation of preliminary reports or commitments, title plant maintenance, and sales, as well as technology and other administrative expenses.


The Closing Process. Title insurance is essential to the real estate closing process in most transactions involving real property mortgage lenders. In a typical residential real estate sale transaction where title insurance is issued, a real estate broker, lawyer, developer, lender, closer or other participant involved in the transaction orders the title insurance on behalf of an insured. Once the order has been placed, a title insurance company or an agent typically conducts a title search to determine the current status of the title to the property. When the search is complete, the title insurer or agent prepares, issues and circulates a commitment or preliminary report to the parties to the transaction. The commitment or preliminary report identifies the conditions, exceptions and/or limitations that the title insurer intends to attach to the policy and identifies items appearing on the title that must be eliminated prior to closing.


The closing or settlement function, sometimes called an escrow in the western United States, is, depending on the local custom in the region, performed by a lawyer, an escrow company or a title insurance company or agent, generally referred to as a “closer.” Once documentation has been prepared and signed, and any required mortgage lender payoff demands are obtained, the transaction closes. The closer typically records the appropriate title documents and arranges the transfer of funds to pay off prior loans and extinguish the liens securing such loans. Title policies are then issued, typically insuring the priority of the mortgage of the real property mortgage lender in the amount of its mortgage loan and the buyer in the amount of the purchase price. The time between the opening of the title order and the issuance of the title policy is usually between 30 and 90 days. Before a closing takes place, however, the closer typically requests that the title insurer or agent provide an update to the commitment to discover any adverse matters affecting title and, if any are found, works with the seller to eliminate them so that the title insurer or agent issues the title policy subject only to those exceptions to coverage which are acceptable to the title insurer, the buyer and the buyer’s lender.

Property and Casualty Insurance. Our property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. We are licensed to issue policies in all 50 states and the District of Columbia and actively issue policies in 46 states. The majority of policy liability is in the western United States, including approximately 63% in California. In certain markets we also offer preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. We market our property and casualty insurance business using both direct distribution channels, including cross-selling through our existing closing-service activities, and through a network of independent brokers. We purchase reinsurance to limit risk associated with large losses from single events.


Home Warranties. Our home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Coverage is typically for one year and is renewable annually at the option of the contract holder and upon our approval. Coverage and pricing typically vary by geographic region. Fees for the warranties generally are paid at the closing of the home purchase or directly by the consumer. Renewal premiums may be paid by a number of different options. In addition, under the contract, the holder is responsible for a service fee for each trade call. First year warranties primarily are marketed through real estate brokers and agents, and we also increasingly market directly to consumers. We generally sell renewals directly to consumers. Our home warranty business currently operates in 39 states and the District of Columbia.

 



   Company Address: 1 First American Way Santa Ana 92707 CA
   Company Phone Number: 250-3000   Stock Exchange / Ticker: NYSE FAF
   


Customers Net Income fell by FAF's Customers Net Profit Margin fell to

-3.05 %

20.85 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


   

Stock Performances by Major Competitors

5 Days Decrease / Increase
     
FNF   -3.47%    
ITIC        0.93% 
STC   -1.03%    
BKI        0.2% 
MLNK   -1.04%    
ORI        0.31% 
• View Complete Report
   



Management Changes

Tanya Ceperley's Recognition as 2024 HousingWire Finance Leader Raises Concerns About First American Financial Corporation's Financial Performance

Published Mon, Mar 4 2024 2:00 PM UTC

Tanya Ceperley's Recognition as a 2024 HousingWire Finance Leader Raises Questions About First American Financial Corporation's Performance
In a recent announcement, First American Financial Corporation revealed that Tanya Ceperley, the senior vice president of mergers and acquisitions, has been named one of HousingWire's 2024 Finance Leaders. This recognition highligh...

Product Service News

Unwavering Home Price Growth in Houston and New York, Coupled with Innovative Appraisal Technology, Reflects Real Estate Market Strength

Published Tue, Feb 20 2024 2:00 PM UTC

Houston, New York, and Nationwide Home Prices Continue to RiseSANTA ANA, Calif. - In a recent report by First American Data & Analytics, it has been revealed that home prices in the Houston-The Woodlands-Sugar Land area have experienced a 5.1% increase compared to the previous year. This information is part of the January 2024 Home Price Index (HPI) report released by the le...

Product Service News

First American Data & Analytics: Pioneering Innovation in the Housing Economy

Published Mon, Feb 12 2024 2:00 PM UTC

First American Data & Analytics, a renowned provider of property-centric information, risk management, and advanced analytics, has recently been recognized as one of the most innovative technology companies in the housing economy. This accolade comes from none other than HousingWire, a leading source of news and information for the housing and mortgage industry. Moreover, Fi...

Business Update

Safeguarding and Sailing Through Cyberstorms: First American Financial Corporation's Journey

Published Thu, Dec 21 2023 5:06 PM UTC

First American Financial Corporation (NYSE: FAF), a leading provider of title, settlement, and risk solutions for real estate transactions, recently announced a cybersecurity incident that has compelled the company to temporarily take certain systems offline. This incident highlights the criticality of robust cybersecurity measures and the potential risks faced by organizati...

Product Service News

First American Financial: Navigating Through Market Challenges while Embracing Diverse Growth Opportunities

Published Tue, Dec 12 2023 2:00 PM UTC


Home prices in the New York-Jersey City-White Plains, NY-NJ area have risen 4.7% year over year, as per the latest report from First American Data & Analytics, a top provider of property-centric insights, risk management and valuation solutions. The November 2023 Home Price Index (HPI) report released recently traces the evolution of home prices, bringing the latest dat...






 

First American Financial's Segments
 
 
• View Complete Report




Help

About us

Advertise

CSIMarket Company, Sector, Industry, Market Analysis, Stock Quotes, Earnings, Economy, News and Research. 
   Copyright © 2024 CSIMarket, Inc. All rights reserved. This site uses cookies to make your browsing experince better. By using this site, you agree to the Terms of Service and Privacy Policy - UPDATED (Read about our Privacy Policy)

Intraday data delayed per exchange requirements. All quotes are in local exchange time. Intraday data delayed 15 minutes for Nasdaq, and other exchanges. Fundamental and financial data for Stocks, Sector, Industry, and Economic Indicators provided by CSIMarket.com