First American Financial Corp · Q3 2023 earnings

Briefing

First American reported a net loss of $2 million and adjusted net income of $128 million for Q3 2023.

First American Financial Corporation reported a decrease in total revenue to $1.5 billion, a 19% decrease compared to the third quarter of 2022. The company experienced a net loss of $2 million, or 2 cents per diluted share. Despite challenging market conditions, the company's focus on expense management and growth in net investment income led to a pretax title margin of 10.5 percent, or 12.0 percent on an adjusted basis.

• Earnings per diluted share of ($0.02), or $1.22 per share on an adjusted basis
• Total revenue of $1.5 billion, down 19 percent compared with last year
• Title Insurance and Services segment investment income of $142 million, up 35 percent compared with last year
• Title Insurance and Services segment provision for policy losses and other claims reduced to 3.0 percent of title premiums and escrow fees, down from the previous loss rate of 3.5 percent

Headline financials

Revenue & EPS history

First American expects difficult market conditions to persist well into next year, weighing on both residential and commercial businesses. However, the company's financial discipline and strong balance sheet allow it to continue investing in strategic initiatives and returning capital to shareholders.