First American Financial Corp Files 2023 Annual Report

TL;DR

<b>First American Financial Corporation has filed its 2023 10-K annual report.</b>

AI Summary

First American Financial Corp (FAF) filed a Annual Report (10-K) with the SEC on February 21, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company is First American Financial Corporation, SIC code 6361 (Title Insurance). Incorporated in Delaware, headquartered in Santa Ana, CA. SEC file number 001-34580. Reported as a public document with 159 pages.

Why It Matters

For investors and stakeholders tracking First American Financial Corp, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operations for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial health, risks, and strategic direction.

Risk Assessment

Risk Level: medium — First American Financial Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report for a public company, indicating no immediate or severe red flags, but the nature of the title insurance industry can involve inherent market and operational risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First American's performance and outlook in the title insurance market.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 159 — Public Document Count (Number of documents in the filing)
• 001-34580 — SEC File Number (SEC registration number)
• 261911571 — IRS Number (Company's IRS identification number)

Key Players & Entities

• First American Financial Corp (company) — Filer name
• 0000950170-24-017418 (other) — Accession Number
• 20231231 (date) — Conformed Period of Report
• 20240221 (date) — Filed as of Date
• 0001472787 (company) — Central Index Key
• 6361 (other) — Standard Industrial Classification (Title Insurance)
• DE (other) — State of Incorporation
• 1 FIRST AMERICAN WAY, SANTA ANA, CA 92707 (address) — Business Address

FAQ

Industry Context

First American Financial Corporation operates in the title insurance industry, a sector closely tied to real estate transactions and mortgage origination volumes.

Regulatory Implications

As a financial services company, First American is subject to regulations from various bodies including the SEC and state insurance departments.

What Investors Should Do

1. Analyze the company's revenue streams and profitability for FY 2023.
2. Assess the key risks and uncertainties outlined in the filing.
3. Compare the company's financial position and performance to prior periods.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-21: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the 2023 10-K filing, providing the latest annual financial data for First American Financial Corp.

Key Financial Figures

• $0.00001 — nge on which registered Common stock, $0.00001 par value FAF New York Stock Exchan

Filing Documents

• faf-20231231.htm (10-K) — 6310KB
• faf-ex10_6.htm (EX-10.6) — 92KB
• faf-ex10_7.htm (EX-10.7) — 94KB
• faf-ex10_8.htm (EX-10.8) — 92KB
• faf-ex10_57.htm (EX-10.5(7)) — 49KB
• faf-ex10_58.htm (EX-10.5(8)) — 79KB
• faf-ex10_59.htm (EX-10.5(9)) — 91KB
• faf-ex21.htm (EX-21) — 19KB
• faf-ex23.htm (EX-23) — 3KB
• faf-ex31_a.htm (EX-31.(A)) — 12KB
• faf-ex31_b.htm (EX-31.(B)) — 12KB
• faf-ex32_a.htm (EX-32.(A)) — 9KB
• faf-ex32_b.htm (EX-32.(B)) — 8KB
• faf-ex97.htm (EX-97) — 23KB
• img236460608_0.jpg (GRAPHIC) — 288KB
• img236460608_1.jpg (GRAPHIC) — 660KB
• 0000950170-24-017418.txt (&nbsp;) — 31333KB
• faf-20231231.xsd (EX-101.SCH) — 2729KB
• faf-20231231_htm.xml (XML) — 7573KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 24 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 106 Item 9A.

Controls and Procedures

Controls and Procedures 106 Item 9B. Other Information 106 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 PART III Item 10. Directors, Executive Officers and Corporate Governance 108 Item 11.

Executive Compensation

Executive Compensation 108 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 108 Item 13. Certain Relationships and Related Transactions, and Director Independence 108 Item 14. Principal Accountant Fees and Services 108 PART IV Item 15. Exhibits and Financial Statement Schedules 109 Item 16. Form 10-K Summary 112 3 THIS ANNUAL REPORT ON FORM 10-K CONTAINS 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 CONDITIONS OF THE REAL ESTATE MARKETS; VOLATILITY IN THE CAPITAL MARKETS; UNFAVORABLE ECONOMIC CONDITIONS; IMPAIRMENTS IN THE COMPANY'S GOODWILL OR OTHER INTANGIBLE ASSETS; 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

Business

Item 1. Business The Company First American Financial Corporation traces its heritage back to 1889. On June 1, 2010, its common stock was listed on the New York Stock Exchange under the ticker symbol "FAF." First American's executive offices are located at 1 First American Way, Santa Ana, California 92707-5913 and its telephone number is (714) 250-3000. Unless otherwise indicated or otherwise required by the context, the terms "we," "our," "it," "its," "Company" and "First American" refer to First American Financial Corporation and its subsidiaries. General The Company, through its subsidiaries, is engaged in the business of providing title insurance, settlement services and other financial services and risk solutions through its title insurance and services segment and its home warranty 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. The segment also provides products, services and solutions that are designed to mitigate risk in, or otherwise facilitate, real estate transactions. Many of these products, services and solutions involve the use of real property-related data, including data derived from the Company's proprietary databases. In addition, the segment provides banking, trust, warehouse lending, mortgage subservicing and wealth management services. The home warranty segment sells home warranty products. Our corporate segment consists of certain financing facilities, our venture investment portfolio, operating results related to our property and casualty insurance business, which no longer sells policies or has policies in force, and certain corporate services that support our business operations. The substantial majority of our business is dependent upon activity in the real estate and mortgage markets. Our strategy is to profitably grow our core title

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View this 10-K filing on SEC EDGAR