# EDGAR Filing Document

**Accession Number:** 0001472787
**File Stem:** 0001193125-26-174195
**Filing Date:** 2026-4
**Character Count:** 141713
**Document Hash:** a7d7851b8d1efaaa928d91f626d796d2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-174195.hdr.sgml**: 20260424

**ACCESSION NUMBER**: 0001193125-26-174195

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 90

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260424

**DATE AS OF CHANGE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** First American Financial Corp
- **CENTRAL INDEX KEY:** 0001472787
- **STANDARD INDUSTRIAL CLASSIFICATION:** TITLE INSURANCE [6361]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 261911571
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34580
- **FILM NUMBER:** 26890011

**BUSINESS ADDRESS:**
- **STREET 1:** 1 FIRST AMERICAN WAY
- **CITY:** SANTA ANA
- **STATE:** CA
- **ZIP:** 92707
- **BUSINESS PHONE:** 714-250-3000

**MAIL ADDRESS:**
- **STREET 1:** 1 FIRST AMERICAN WAY
- **CITY:** SANTA ANA
- **STATE:** CA
- **ZIP:** 92707

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM** 10-Q

------

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended** **March 31,** 2026

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______ to ______**

**Commission file number:** 001-34580

------

FIRST AMERICAN FINANCIAL CORPORATION

**(Exact name of registrant as specified in its charter)**

------

---

| | |
|:---|:---|
| Delaware | 26-1911571 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| 1 First American Way**,** Santa Ana**,** California | 92707-5913 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(**714**)** 250-3000

**(Registrant's telephone number, including area code)**

**Not Applicable**

**(Former name, former address and former fiscal year, if changed since last report)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Common stock, $0.00001 par value<br> FAF | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

On April 20, 2026 there were 101.9 million shares of common stock outstanding.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>INFORMATION INCLUDED IN REPORT</u> 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;PART I: FINANCIAL INFORMATION | &nbsp;&nbsp;&nbsp;&nbsp;PART I: FINANCIAL INFORMATION |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Financial Statements (unaudited)</u>](#item_1_financial_statements) |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>A. Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025</u>](#condensed_consolidated_balance_sheets) | 5 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>B. Condensed Consolidated Statements of Income for the three months ended March 31, 2026 and 2025</u>](#condensed_consolidated_statements_income) | 6 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>C. Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025</u>](#condensed_consolidated_statements_compre) | 7 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>D. Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2026 and 2025</u>](#condensed_consolidated_statements_stockh) | 8 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>E. Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025</u>](#condensed_consolidated_statements_cash_f) | 10 |
|  | [<u>F. Notes to Condensed Consolidated Financial Statements</u>](#notes_to_condensed_consolidated_financia) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 2. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item2_mdanda) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 3. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item3) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 4. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Controls and Procedures</u>](#part1item4) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;PART II: OTHER INFORMATION | &nbsp;&nbsp;&nbsp;&nbsp;PART II: OTHER INFORMATION |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Legal Proceedings</u>](#item1_legal_proceedings) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 1A. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Risk Factors</u>](#partii_item1a_riskfactors) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 2. | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#partii_item2_unregisteredsales) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 3. | [<u>Defaults Upon Senior Securities</u>](#partii_item3_defaultsuponseniorsec) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 4. | [<u>Mine Safety Disclosures</u>](#partii_item4_minesafety) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 5. | [<u>Other Information</u>](#partii_item5_otherinformation) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 41 |

---

------

*THIS QUARTERLY REPORT ON FORM 10-Q 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:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*INTEREST RATE FLUCTUATIONS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*CHANGES IN CONDITIONS OF THE REAL ESTATE MARKETS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*VOLATILITY IN THE CAPITAL MARKETS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*UNFAVORABLE ECONOMIC CONDITIONS;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*IMPAIRMENTS IN THE COMPANY'S GOODWILL OR OTHER INTANGIBLE ASSETS;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*FAILURES AT FINANCIAL INSTITUTIONS WHERE THE COMPANY DEPOSITS FUNDS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*REGULATORY OVERSIGHT AND CHANGES IN APPLICABLE LAWS AND GOVERNMENT REGULATIONS, INCLUDING PRIVACY AND DATA PROTECTION LAWS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*HEIGHTENED SCRUTINY BY LEGISLATORS AND REGULATORS OF THE COMPANY'S TITLE INSURANCE AND SERVICES SEGMENT AND CERTAIN OTHER OF THE COMPANY'S BUSINESSES;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*REGULATION OF TITLE INSURANCE RATES;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*LIMITATIONS ON ACCESS TO PUBLIC RECORDS AND OTHER DATA;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*SEVERE WEATHER CONDITIONS, HEALTH CRISES, TERRORIST ATTACKS AND OTHER CATASTROPHES;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*CHANGES IN RELATIONSHIPS WITH LARGE MORTGAGE LENDERS AND GOVERNMENT-SPONSORED ENTERPRISES;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*CHANGES IN MEASURES OF THE STRENGTH OF THE COMPANY'S TITLE INSURANCE UNDERWRITERS, INCLUDING RATINGS AND STATUTORY CAPITAL AND SURPLUS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*LOSSES IN THE COMPANY'S INVESTMENT PORTFOLIO OR VENTURE INVESTMENT PORTFOLIO;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*MATERIAL VARIANCE BETWEEN ACTUAL AND EXPECTED CLAIMS EXPERIENCE;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*PROVISION OF CAPITAL TO SUBSIDIARIES THAT COULD AFFECT THE COMPANY'S LIQUIDITY POSITION;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*DEFALCATIONS, INCREASED CLAIMS OR OTHER COSTS AND EXPENSES ATTRIBUTABLE TO THE COMPANY'S USE OF TITLE AGENTS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*ANY INADEQUACY IN THE COMPANY'S RISK MANAGEMENT FRAMEWORK OR USE OF MODELS;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*SYSTEMS DAMAGE, FAILURES, INTERRUPTIONS, CYBERATTACKS AND INTRUSIONS, OR UNAUTHORIZED DATA DISCLOSURES;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*INNOVATION EFFORTS OF THE COMPANY AND OTHER INDUSTRY PARTICIPANTS AND ANY RELATED MARKET DISRUPTION;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*ERRORS AND FRAUD INVOLVING THE TRANSFER OF FUNDS;* 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*FAILURES TO RECRUIT AND RETAIN QUALIFIED EMPLOYEES;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*THE COMPANY'S USE OF A GLOBAL WORKFORCE;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*INABILITY OF THE COMPANY TO FULFILL PARENT COMPANY OBLIGATIONS AND/OR PAY DIVIDENDS;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*INABILITY TO REALIZE ANTICIPATED SYNERGIES OR PRODUCE RETURNS THAT JUSTIFY INVESTMENT IN ACQUIRED BUSINESSES;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*A REDUCTION IN THE DEPOSITS AT THE COMPANY'S FEDERAL SAVINGS BANK SUBSIDIARY;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*CLAIMS OF INFRINGEMENT OR INABILITY TO ADEQUATELY PROTECT THE COMPANY'S INTELLECTUAL PROPERTY; AND*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*OTHER FACTORS DESCRIBED IN THIS QUARTERLY REPORT ON FORM 10-Q, INCLUDING UNDER THE CAPTION RISK FACTORS IN ITEM 1A OF PART II.*

*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.*

------

**PART I: FINANCIAL INFORMATION**

**Item 1. Financial Statements.** 

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>Condensed Consolida</u><u>ted Balance Sheets</u> 

(in millions, except par values)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **March 31, <br>2026** | **December 31,<br>2025** |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2436.2 | $1387.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts and accrued income receivable, less allowance for credit losses of $24.2 and $23.9 | 398.0 | 432.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 54.4 | 65.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with banks | 81.9 | 78.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities (amortized cost of $9,239.2 and $8,656.7; pledged of $168.7 and $170.3) | 8978.1 | 8466.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 870.2 | 849.1 |
|  | $9930.2 | $9394.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings receivable | 1193.0 | 986.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 671.9 | 682.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease assets | 195.0 | 205.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title plants and other indexes | 687.4 | 686.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 9.4 | 9.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 1817.9 | 1819.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, net | 95.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 448.2 | 460.1 |
|  | $17936.6 | $16228.8 |
| **Liabilities and Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | $7082.0 | $5292.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 792.6 | 1002.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 199.3 | 214.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for known and incurred but not reported claims | 1166.3 | 1169.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 41.0 | 42.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 312.7 | 312.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 206.7 | 218.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings payable | 1078.6 | 906.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes and contracts payable | 1545.2 | 1545.4 |
|  | $12424.4 | $10704.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies (Note 16) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.00001 par value; Authorized—0.5 shares;<br> Outstanding—none |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.00001 par value; Authorized—300.0 shares;<br> Outstanding—102.1 shares and 102.0 shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1732.6 | 1744.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 4079.5 | 4011.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (322.5) | (256.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | $5489.6 | $5499.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests | 22.6 | 24.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | $5512.2 | $5524.3 |
|  | $17936.6 | $16228.8 |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>Condensed Consolidated</u> <u>Statements of Income</u> 

(in millions, except per share amounts)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct premiums and escrow fees | $660.2 | $561.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agent premiums | 759.4 | 654.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information and other | 275.1 | 242.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | 152.4 | 135.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) (realized losses of $(1.3), $(1.5)) | (9.1) | (10.8) |
|  | 1838.0 | 1582.3 |
| **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 568.2 | 506.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums retained by agents | 602.2 | 525.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 310.4 | 278.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses and other claims | 77.8 | 70.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 54.6 | 52.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | 21.1 | 17.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 41.9 | 35.2 |
|  | 1676.2 | 1485.7 |
| Income before income taxes | 161.8 | 96.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 37.0 | 21.8 |
| Net income | 124.8 | 74.8 |
| Less: Net (loss) income attributable to noncontrolling interests | (0.3) | 0.6 |
| Net income attributable to the Company | $125.1 | $74.2 |
| Net income per share attributable to the Company's <br> stockholders (Note 10): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.21 | $0.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.21 | $0.71 |
| Cash dividends per share | $0.55 | $0.54 |
| Weighted-average common shares outstanding (Note 10): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 103.0 | 103.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 103.3 | 104.2 |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

<u>Condensed Consolidated Statem</u><u>ents of Comprehensive Income</u> 

(in millions)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Net income | $124.8 | $74.8 |
| Other comprehensive income (loss), net of tax: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized losses on debt securities | (54.0) | 92.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment | (12.2) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in pension benefit adjustment | 0.4 | 0.4 |
| Total other comprehensive (loss) income, net of tax | (65.8) | 96.6 |
| Comprehensive income | 59.0 | 171.4 |
| Less: Comprehensive (loss) income attributable to noncontrolling <br> interests | (0.3) | 0.6 |
| Comprehensive income attributable to the Company | $59.3 | $170.8 |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>Condensed Consolidated Statem</u><u>ents of Stockholders' Equity</u> 

(in millions)

(unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** |  |  |
|  | **Shares** | **Common<br>stock** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated <br>other<br>comprehensive<br> income (loss)** | **Total<br>stockholders'<br>equity** | **Noncontrolling<br>interests** | **Total** |
| Balance at December 31, 2025 | 102.0 | $— | $1744.4 | $4011.8 | $(256.7) | $5499.5 | $24.8 | $5524.3 |
| Net income (loss) for the three <br> months ended March 31, 2026 |  |  |  | 125.1 |  | 125.1 | (0.3) | 124.8 |
| Dividends on common shares |  |  |  | (56.2) |  | (56.2) |  | (56.2) |
| Repurchases of Company shares | (0.6) |  | (33.5) |  |  | (33.5) |  | (33.5) |
| Shares issued in connection with <br> share-based compensation | 0.7 |  | (5.4) | (1.2) |  | (6.6) |  | (6.6) |
| Share-based compensation |  |  | 27.1 |  |  | 27.1 |  | 27.1 |
| Net activity related to<br> noncontrolling interests |  |  |  |  |  |  | (1.9) | (1.9) |
| Other comprehensive loss |  |  |  |  | (65.8) | (65.8) |  | (65.8) |
| Balance at March 31, 2026 | 102.1 | $— | $1732.6 | $4079.5 | $(322.5) | $5489.6 | $22.6 | $5512.2 |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>Condensed Consolidated Statements of Stockholders' Equity – (Continued)</u>

(in millions)

(unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** | **First American Financial Corporation Stockholders** |  |  |
|  | **Shares** | **Common<br>stock** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated <br>other<br>comprehensive<br> income (loss)** | **Total<br>stockholders'<br>equity** | **Noncontrolling<br>interests** | **Total** |
| Balance at December 31, 2024 | 103.0 | $— | $1787.6 | $3617.3 | $(496.4) | $4908.5 | $18.5 | $4927.0 |
| Net income for the three months <br> ended March 31, 2025 |  |  |  | 74.2 |  | 74.2 | 0.6 | 74.8 |
| Dividends on common shares |  |  |  | (55.7) |  | (55.7) |  | (55.7) |
| Repurchases of Company shares | (0.4) |  | (28.2) |  |  | (28.2) |  | (28.2) |
| Shares issued in connection with <br> share-based compensation | 0.6 |  | (5.7) | (1.0) |  | (6.7) |  | (6.7) |
| Share-based compensation |  |  | 30.6 |  |  | 30.6 |  | 30.6 |
| Net activity related to<br> noncontrolling interests |  |  |  |  |  |  | 2.5 | 2.5 |
| Other comprehensive income |  |  |  |  | 96.6 | 96.6 |  | 96.6 |
| Balance at March 31, 2025 | 103.2 | $— | $1784.3 | $3634.8 | $(399.8) | $5019.3 | $21.6 | $5040.9 |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

<u>Condensed Consolidated S</u><u>tatements of Cash Flows</u> 

(in millions)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $124.8 | $74.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses and other claims | 77.8 | 70.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 54.6 | 52.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premiums and accretion of discounts on debt securities, net | (12.8) | (10.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment losses | 9.1 | 10.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 27.1 | 30.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings of affiliates, net | (2.2) | (2.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends from equity method investments | 1.3 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims paid, including assets acquired, net of recoveries | (77.7) | (76.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in income tax accounts | 26.5 | 12.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in accounts and accrued income receivable | 32.6 | (2.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued liabilities | (246.9) | (202.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred revenue | (14.6) | (14.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 6.0 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by (used for) operating activities | 5.6 | (52.8) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions/dispositions, net of cash acquired/divested | (0.2) | (4.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in deposits with banks | (4.6) | 22.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of debt securities | (987.0) | (468.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of debt securities | 267.3 | 266.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of debt securities | 187.4 | 146.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of equity securities | (29.7) | (16.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of equity securities | 1.4 | 15.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in other investments | (5.0) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances under secured financing agreements | (15550.8) | (7861.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collections of secured financings receivable | 15343.8 | 7706.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (38.3) | (41.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of property and equipment |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from insurance settlement |  | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used for investing activities | (815.7) | (234.5) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in deposits | 1789.3 | 612.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under secured financing agreements | 15026.0 | 7592.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of secured financings payable | (14853.8) | (7500.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of other notes and contracts payable | (0.6) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net activity related to noncontrolling interests | (1.9) | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net payments in connection with share-based compensation | (6.6) | (6.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchases of Company shares | (33.5) | (28.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of cash dividends | (56.2) | (55.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by financing activities | 1862.7 | 612.3 |
| Effect of exchange rate changes on cash | (3.7) | 2.0 |
| Net increase in cash and cash equivalents | 1048.9 | 327.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents—Beginning of period | 1387.3 | 1718.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents—End of period | $2436.2 | $2045.1 |
| **Supplemental information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid (received) during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $45.1 | $40.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | $32.2 | $25.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $10.3 | $11.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax refunds | $(0.1) | $(2.1) |

---

See notes to condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u> 

Notes to Condensed Consolidated Financial Statements (unaudited)

<u>Note 1 – Basis of Condensed Consolidated Financial Statements</u> 

*Basis of Presentation* 

The condensed consolidated financial information included in this report has been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Securities and Exchange Commission Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the First American Financial Corporation (the "Company") Annual Report on Form 10-K for the year ended December 31, 2025. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the consolidated results for the interim periods. All material intercompany transactions and balances have been eliminated upon consolidation.

*Pending Accounting Pronouncements*

In September 2025, the FASB issued updated guidance intended to modernize the accounting for internal-use software costs. The updated guidance better aligns the accounting with how software is currently developed by making the guidance more relevant for agile and iterative development methods. Under the updated guidance, an entity is required to begin capitalizing software costs when management has authorized and committed to funding a software project and it is probable that the project will be completed and the software will be used to perform the function intended. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2027, with early adoption permitted, and can be applied prospectively, retrospectively, or through a modified prospective method in the Company's financial statements. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements.

In November 2024, the FASB issued updated guidance intended to improve financial reporting by requiring entities to disclose additional information in the notes to the financial statements about specific expense categories within the income statement. The updated guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The updated disclosures can be applied either prospectively or retrospectively in the Company's financial statements. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 2 –Trust Assets, Escrow and Other Deposits</u>

The Company administers escrow deposits as a service to customers in its direct title operations. Escrow deposits totaled $10.5 billion and $9.3 billion at March 31, 2026 and December 31, 2025, respectively, of which $4.1 billion and $3.7 billion, respectively, were held at First American Trust, FSB ("FA Trust"). The remaining deposits were held at third-party financial institutions. Escrow deposits held at third-party financial institutions are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets.

Trust assets administered by FA Trust totaled $5.8 billion and $5.6 billion at March 31, 2026 and December 31, 2025, respectively, of which $243.8 million and $173.9 million, respectively, were held at FA Trust. The remaining trust assets were held at third-party financial institutions. Trust assets administered by FA Trust and held at third-party institutions are fiduciary client assets, which are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. The Company could be held contingently liable if FA Trust were to breach any of its fiduciary duties.

In conducting its operations, the Company often holds customers' assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits with various financial institutions. The results from these programs are included as either income or as a reduction in expense, as appropriate, in the condensed consolidated statements of income based on the nature of the arrangement and benefit received.

The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds administered by the Company totaled $2.6 billion and $2.7 billion at March 31, 2026 and December 31, 2025, respectively, of which $588.3 million and $93.6 million, respectively, were held at FA Trust. The like-kind exchange deposits held at third-party financial institutions are not included in the accompanying condensed consolidated balance sheets as the proceeds and property are not considered assets of the Company due to the structure utilized to facilitate these transactions. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the returns on such proceeds.

In conducting its residential mortgage loan subservicing operations, the Company administers cash deposits on behalf of its clients. Cash deposits totaled $2.5 billion and $1.6 billion at March 31, 2026 and December 31, 2025, respectively, of which $1.7 billion and $1.0 billion, respectively, were held at FA Trust. The remaining deposits were held at third-party financial institutions. Cash deposits held at third-party financial institutions are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. In connection with certain accounts, the Company has ongoing programs for realizing economic benefits with various financial institutions whereby it earns economic benefits either as income or as a reduction in expense. The Company maintains certain debt securities on deposit with a fair value of $54.3 million at March 31, 2026 for which it has provided a secured interest as collateral in connection with a mortgage loan subservicing agreement.

Deposit balances held at FA Trust are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying condensed consolidated balance sheets.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 3 – Debt Securities</u> 

Investments in debt securities, classified as available-for-sale, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amortized** | **Gross unrealized** | **Gross unrealized** | **Estimated** |
| **<u>(in millions)</u>** | **cost** | **Gains** | **Losses** | **fair value** |
| **March 31, 2026** |  |  |  |  |
| U.S. Treasury bonds | $225.2 | $0.3 | $(2.5) | $223.0 |
| Municipal bonds | 1062.7 | 6.8 | (59.4) | 1010.1 |
| Foreign government bonds | 221.7 | 0.8 | (4.4) | 218.1 |
| Governmental agency bonds | 311.1 | 0.2 | (8.6) | 302.7 |
| Governmental agency mortgage-backed securities | 5737.6 | 26.4 | (204.0) | 5560.0 |
| U.S. corporate debt securities | 1189.9 | 7.8 | (22.5) | 1175.2 |
| Foreign corporate debt securities | 491.0 | 5.5 | (7.5) | 489.0 |
|  | $9239.2 | $47.8 | $(308.9) | $8978.1 |
| **December 31, 2025** |  |  |  |  |
| U.S. Treasury bonds | $244.2 | $1.0 | $(1.6) | $243.6 |
| Municipal bonds | 1003.5 | 9.9 | (53.3) | 960.1 |
| Foreign government bonds | 239.4 | 1.1 | (5.3) | 235.2 |
| Governmental agency bonds | 268.3 | 0.3 | (7.6) | 261.0 |
| Governmental agency mortgage-backed securities | 5401.9 | 41.9 | (183.0) | 5260.8 |
| U.S. corporate debt securities | 1032.8 | 15.7 | (13.7) | 1034.8 |
| Foreign corporate debt securities | 466.6 | 9.5 | (4.9) | 471.2 |
|  | $8656.7 | $79.4 | $(269.4) | $8466.7 |

---

Sales of debt securities resulted in realized gains of $1.2 million and $1.1 million, realized losses of $2.5 million and $2.6 million and proceeds of $267.3 million and $266.8 million for the three months ended March 31, 2026 and 2025, respectively.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

Investments in debt securities in an unrealized loss position, and their respective length of time in such position, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less than 12 months** | **Less than 12 months** | **12 months or longer** | **12 months or longer** | **Total** | **Total** |
| **<u>(in millions)</u>** | **Estimated<br>fair value** | **Unrealized<br>losses** | **Estimated<br>fair value** | **Unrealized<br>losses** | **Estimated<br>fair value** | **Unrealized<br>losses** |
| **March 31, 2026** |  |  |  |  |  |  |
| U.S. Treasury bonds | $112.7 | $(1.3) | $34.5 | $(1.2) | $147.2 | $(2.5) |
| Municipal bonds | 247.7 | (3.7) | 428.3 | (55.7) | 676.0 | (59.4) |
| Foreign government bonds | 83.1 | (0.4) | 46.8 | (4.0) | 129.9 | (4.4) |
| Governmental agency bonds | 253.7 | (3.0) | 27.8 | (5.6) | 281.5 | (8.6) |
| Governmental agency mortgage-backed<br> securities | 2584.3 | (32.3) | 1317.8 | (171.7) | 3902.1 | (204.0) |
| U.S. corporate debt securities | 586.5 | (7.8) | 96.2 | (14.7) | 682.7 | (22.5) |
| Foreign corporate debt securities | 206.6 | (2.4) | 53.1 | (5.1) | 259.7 | (7.5) |
|  | $4074.6 | $(50.9) | $2004.5 | $(258.0) | $6079.1 | $(308.9) |
| **December 31, 2025** |  |  |  |  |  |  |
| U.S. Treasury bonds | $61.7 | $(0.3) | $36.3 | $(1.3) | $98.0 | $(1.6) |
| Municipal bonds | 118.6 | (1.1) | 451.3 | (52.2) | 569.9 | (53.3) |
| Foreign government bonds | 76.2 | (0.3) | 59.8 | (5.0) | 136.0 | (5.3) |
| Governmental agency bonds | 210.6 | (1.5) | 28.9 | (6.1) | 239.5 | (7.6) |
| Governmental agency mortgage-backed<br> securities | 988.8 | (9.8) | 1479.1 | (173.2) | 2467.9 | (183.0) |
| U.S. corporate debt securities | 169.4 | (0.8) | 101.2 | (12.9) | 270.6 | (13.7) |
| Foreign corporate debt securities | 32.3 | (0.2) | 69.0 | (4.7) | 101.3 | (4.9) |
|  | $1657.6 | $(14.0) | $2225.6 | $(255.4) | $3883.2 | $(269.4) |

---

Based on the Company's review of its debt securities in an unrealized loss position it determined that the losses were due to non-credit factors and, therefore, it does not consider these securities to be credit impaired at March 31, 2026.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

Investments in debt securities at March 31, 2026, by contractual maturities, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Due in one<br>year or less** | **Due after<br>one through<br>five years** | **Due after<br>five through<br>ten years** | **Due after<br>ten years** | **Total** |
| U.S. Treasury bonds |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | $34.0 | $130.5 | $43.4 | $17.3 | $225.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | $33.5 | $129.8 | $43.1 | $16.6 | $223.0 |
| Municipal bonds |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | 1.5 | 133.6 | 495.0 | 432.6 | 1062.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | 1.5 | 131.4 | 462.5 | 414.7 | 1010.1 |
| Foreign government bonds |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | 44.6 | 141.3 | 22.5 | 13.3 | 221.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | 44.7 | 138.3 | 22.5 | 12.6 | 218.1 |
| Governmental agency bonds |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | 0.6 | 0.8 | 203.7 | 106.0 | 311.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | 0.6 | 0.8 | 201.5 | 99.8 | 302.7 |
| U.S. corporate debt securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | 12.4 | 523.3 | 502.1 | 152.1 | 1189.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | 12.4 | 522.7 | 499.4 | 140.7 | 1175.2 |
| Foreign corporate debt securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | 25.1 | 301.8 | 130.0 | 34.1 | 491.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | 25.1 | 302.3 | 130.0 | 31.6 | 489.0 |
| Total debt securities (excluding mortgage-backed<br> securities) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost | $118.2 | $1231.3 | $1396.7 | $755.4 | $3501.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value | $117.8 | $1225.3 | $1359.0 | $716.0 | $3418.1 |
| Total mortgage-backed securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost |  |  |  |  | 5737.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value |  |  |  |  | 5560.0 |
| Total debt securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost |  |  |  |  | $9239.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated fair value |  |  |  |  | $8978.1 |

---

Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity as borrowers may have the right to call or prepay obligations with, or without, call or prepayment penalties.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

The composition of the debt securities portfolio at March 31, 2026, by credit rating, is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **A- or higher** | **A- or higher** | **BBB+ to BBB-** | **BBB+ to BBB-** | **Non-Investment Grade** | **Non-Investment Grade** | **Total** |
| **<u>(dollars in millions)</u>** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** |
| U.S. Treasury bonds | $223.0 | 100.0% | $— | —% | $— | —% | $223.0 |
| Municipal bonds | 989.0 | 97.9 | 20.8 | 2.1 | 0.3 |  | 1010.1 |
| Foreign government bonds | 211.5 | 96.9 | 5.8 | 2.7 | 0.8 | 0.4 | 218.1 |
| Governmental agency bonds | 302.7 | 100.0 |  |  |  |  | 302.7 |
| Governmental agency mortgage-<br> backed securities | 5560.0 | 100.0 |  |  |  |  | 5560.0 |
| U.S. corporate debt securities | 716.6 | 60.9 | 332.2 | 28.3 | 126.4 | 10.8 | 1175.2 |
| Foreign corporate debt securities | 280.7 | 57.4 | 181.1 | 37.0 | 27.2 | 5.6 | 489.0 |
|  | $8283.5 | 92.3% | $539.9 | 6.0% | $154.7 | 1.7% | $8978.1 |

---

Included in debt securities at March 31, 2026 were bank loans totaling $83.7 million, of which $82.0 million were non-investment grade; high yield corporate debt securities totaling $66.3 million, all of which were non-investment grade; and emerging market debt securities totaling $30.7 million, of which $6.1 million were non-investment grade.

The composition of the debt securities portfolio in an unrealized loss position at March 31, 2026, by credit rating, is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **A- or higher** | **A- or higher** | **BBB+ to BBB-** | **BBB+ to BBB-** | **Non-Investment Grade** | **Non-Investment Grade** | **Total** |
| **<u>(dollars in millions)</u>** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** | **Percentage** | **Estimated<br>fair value** |
| U.S. Treasury bonds | $147.2 | 100.0% | $— | —% | $— | —% | $147.2 |
| Municipal bonds | 661.3 | 97.9 | 14.4 | 2.1 | 0.3 |  | 676.0 |
| Foreign government bonds | 126.7 | 97.5 | 2.7 | 2.1 | 0.5 | 0.4 | 129.9 |
| Governmental agency bonds | 281.5 | 100.0 |  |  |  |  | 281.5 |
| Governmental agency mortgage-<br> backed securities | 3902.1 | 100.0 |  |  |  |  | 3902.1 |
| U.S. corporate debt securities | 414.0 | 60.6 | 180.7 | 26.5 | 88.0 | 12.9 | 682.7 |
| Foreign corporate debt securities | 148.1 | 57.1 | 91.5 | 35.2 | 20.1 | 7.7 | 259.7 |
|  | $5680.9 | 93.4% | $289.3 | 4.8% | $108.9 | 1.8% | $6079.1 |

---

Debt securities in an unrealized loss position at March 31, 2026 included bank loans totaling $60.1 million, of which $59.9 million were non-investment grade; high yield corporate debt securities totaling $44.1 million, all of which were non-investment grade; and emerging market debt securities totaling $18.8 million, of which $4.6 million were non-investment grade.

The credit ratings in the above tables reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies the lowest rating was selected. Governmental agency mortgage-backed securities are not rated by any of the ratings agencies; however, these securities have been included in the above table in the "A- or higher" rating category because the payments of principal and interest are guaranteed by the governmental agency that issued the security.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 4 – Equity Securities</u>

Investments in equity securities, by accounting classification, are summarized as follows:

---

| | | |
|:---|:---|:---|
| **<u>(in millions)</u>** | **March 31,<br>2026** | **December 31,<br>2025** |
| Marketable equity securities | $472.1 | $477.6 |
| Non-marketable equity securities | 257.6 | 253.1 |
| Equity method investments | 140.5 | 118.4 |
|  | $870.2 | $849.1 |

---

Investments in marketable equity securities are summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Cost** | **Unrealized gains** | **Estimated<br>fair value** |
| **March 31, 2026** |  |  |  |
| Common stocks | $462.4 | $— | $462.4 |
| Preferred stocks | 8.8 | 0.9 | 9.7 |
|  | $471.2 | $0.9 | $472.1 |
| **December 31, 2025** |  |  |  |
| Common stocks | $457.9 | $9.8 | $467.7 |
| Preferred stocks | 9.0 | 0.9 | 9.9 |
|  | $466.9 | $10.7 | $477.6 |

---

Net losses of $9.5 million and $7.0 million resulting from changes in the fair values of marketable equity securities were recognized for the three months ended March 31, 2026 and 2025, respectively, which included net unrealized losses of $9.6 million and $6.7 million on securities still held at March 31, 2026 and 2025, respectively.

A summary of the changes in the carrying amounts of non-marketable equity securities, which primarily relate to the Company's venture investment portfolio, for the three months ended March 31, 2026 and 2025, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions)</u>** | **2026** | **2025** |
| Carrying amount, beginning of period | $253.1 | $202.4 |
| Net additions | 5.0 | 15.0 |
| Gross unrealized losses and impairments | (0.5) | (0.8) |
| Carrying amount, end of period | $257.6 | $216.6 |

---

Cumulative gross unrealized gains and cumulative gross unrealized losses and impairments related to non-marketable equity securities at March 31, 2026 and December 31, 2025, are summarized as follows:

---

| | | |
|:---|:---|:---|
| **<u>(in millions)</u>** | **March 31,<br>2026** | **December 31,<br>2025** |
| Cumulative gross unrealized gains | $280.1 | $280.1 |
| Cumulative gross unrealized losses and impairments | $361.3 | $360.8 |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 5 – Allowance for Credit Losses – Accounts Receivable</u>

Activity in the allowance for credit losses on accounts receivable is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions)</u>** | **2026** | **2025** |
| Balance at beginning of period | $23.9 | $21.5 |
| Provision for expected credit losses | 1.9 | 2.4 |
| Write-offs/recoveries | (1.6) | (1.2) |
| Balance at end of period | $24.2 | $22.7 |

---

<u>Note 6 – Goodwill</u> 

A summary of the changes in the carrying amount of goodwill, by reportable segment, for the three months ended March 31, 2026, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Title<br>Insurance<br>and Services** | **Home<br>Warranty** | **Total** |
| Balance at beginning of period | $1778.4 | $40.9 | $1819.3 |
| Foreign currency translation | (1.4) |  | (1.4) |
| Balance at end of period | $1777.0 | $40.9 | $1817.9 |

---

<u>Note 7 – Other Intangible Assets</u>

Other intangible assets are summarized as follows:

---

| | | |
|:---|:---|:---|
| **<u>(in millions)</u>** | **March 31, <br>2026** | **December 31,<br>2025** |
| Finite-lived intangible assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer relationships | $148.7 | $148.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncompete agreements | 4.5 | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trademarks | 70.9 | 70.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internal-use software licenses | 21.4 | 19.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patents | 2.8 | 2.8 |
|  | 248.3 | 246.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated amortization | (170.2) | (163.4) |
|  | 78.1 | 83.1 |
| Indefinite-lived intangible assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licenses | 16.9 | 16.9 |
|  | $95.0 | $100.0 |

---

Amortization expense for finite-lived intangible assets was $9.3 million and $9.6 million for the three months ended March 31, 2026 and 2025, respectively.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

Estimated amortization expense for finite-lived intangible assets for the next five years is as follows:

---

| | |
|:---|:---|
| **<u>Year</u>** | **(in millions)** |
| Remainder of 2026 | $23.9 |
| 2027 | $15.7 |
| 2028 | $10.6 |
| 2029 | $6.1 |
| 2030 | $5.2 |
| 2031 | $4.6 |

---

<u>Note 8 – Reserve for Known and Incurred But Not Reported Claims</u>

Activity in the reserve for known and incurred but not reported claims is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions)</u>** | **2026** | **2025** |
| Balance at beginning of period | $1169.6 | $1193.4 |
| Provision related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year | 86.6 | 79.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years | (8.8) | (9.4) |
|  | 77.8 | 70.1 |
| Payments, net of recoveries, related to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current year | 24.7 | 24.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years | 53.0 | 51.9 |
|  | 77.7 | 76.3 |
| Other | (3.4) | 0.3 |
| Balance at end of period | $1166.3 | $1187.5 |

---

The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 3.0% for the three months ended March 31, 2026 and 2025.

The 3.0% loss provision rate for the three months ended March 31, 2026 reflects an ultimate loss rate of 3.75% for the 2026 policy year and reserve releases of 0.75%, or $9.9 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2026.

The 3.0% loss provision rate for the three months ended March 31, 2025 reflected an ultimate loss rate of 3.75% for the 2025 policy year and reserve releases of 0.75%, or $8.4 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2025.

A summary of the Company's loss reserves is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| Known title claims | $66.9 | 5.8% | $54.6 | 4.7% |
| Incurred but not reported claims | 1078.0 | 92.4% | 1095.9 | 93.7% |
| Total title claims | 1144.9 | 98.2% | 1150.5 | 98.4% |
| Non-title claims | 21.4 | 1.8% | 19.1 | 1.6% |
| Total loss reserves | $1166.3 | 100.0% | $1169.6 | 100.0% |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 9 – Income Taxes</u>

The Company's effective income tax rates (income tax expense as a percentage of income before income taxes) were 22.9% and 22.6% for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rates differ from the federal statutory rate due to (1) state and foreign income taxes for which the Company is liable, (2) permanent differences between amounts reported for financial statement purposes and amounts reported for income tax purposes, (3) the recognition of excess tax benefits or tax deficiencies associated with share-based payment transactions through income tax expense and (4) tax credits claimed.

The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and making adjustments to the allowance as necessary. The factors used in assessing the likelihood of realization include forecasts of future taxable income and available tax planning strategies that could be implemented. The Company's ability to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of its deferred tax assets. As of March 31, 2026 and December 31, 2025, the Company carried a valuation allowance of $29.4 million. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months.

As of March 31, 2026 and December 31, 2025, the liabilities for income taxes associated with uncertain tax positions were $35.0 million and $34.4 million, respectively. The net increase in the liability during 2026 was primarily attributable to positions taken on the Company's tax returns for the current year. The liabilities as of March 31, 2026 and December 31, 2025 could be reduced by $3.7 million due to offsetting tax benefits associated with the correlative effects of potential adjustments, including timing adjustments and state income taxes. The net liability, if recognized, would favorably affect the Company's effective income tax rate.

The Company's continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties, net of tax benefits, related to uncertain tax positions as of March 31, 2026 and December 31, 2025, were not material.

The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction, various state jurisdictions and in various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. As of March 31, 2026, the Company is, generally, no longer subject to income tax examinations for U.S. federal, state and non-U.S. jurisdictions for years prior to 2022, 2019 and 2014, respectively.

Effective in 2024, the Company is subject to international anti-base erosion rules that assess a minimum tax rate of 15% in the jurisdictions in which it operates. Commonly known as "Pillar II," these rules apply to large multinational enterprises and are designed to address the tax challenges arising from the globalization and digitalization of the economy. The Company has calculated the minimum tax on a jurisdiction-by-jurisdiction basis and has determined that the resulting tax is not material to its financial results.

Public Law 119-21, popularly known as the "One Big Beautiful Bill Act" ("OBBBA"), was signed into law on July 4, 2025. This legislation includes a broad range of tax reform provisions affecting businesses, with certain tax provisions effective January 1, 2026. While the Company is still evaluating OBBBA's tax provisions effective in 2026, it does not expect them to have a material effect on its ongoing effective tax rate.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 10 – Earnings Per Share</u>

The computation of basic and diluted earnings per share is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions, except per share data)</u>** | **2026** | **2025** |
| Numerator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the Company | $125.1 | $74.2 |
| Denominator |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic weighted-average shares | 103.0 | 103.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of dilutive restricted stock units ("RSUs") and <br> performance restricted stock units ("PRSUs") | 0.3 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted-average shares | 103.3 | 104.2 |
| Net income per share attributable to the Company's <br> stockholders |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $1.21 | $0.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $1.21 | $0.71 |

---

For the three months ended March 31, 2026, 238 thousand RSUs and 27 thousand PRSUs were excluded from diluted weighted-average common shares outstanding due to their antidilutive effect. For the three months ended March 31, 2025, no RSUs or PRSUs had an antidilutive effect on weighted-average diluted common shares outstanding.

<u>Note 11 – Employee Benefit Plans</u> 

Net periodic benefit costs related to the Company's unfunded supplemental benefit pension plans are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions)</u>** | **2026** | **2025** |
| Expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest costs | $2.1 | $2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of net actuarial loss | 0.5 | 0.5 |
|  | $2.6 | $2.9 |

---

The Company contributed $3.7 million to its unfunded supplemental benefit pension plans during the three months ended March 31, 2026 and expects to contribute an additional $12.2 million during the remainder of 2026.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 12 – Fair Value Measurements</u>

Certain of the Company's assets are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company categorizes its assets and liabilities carried at fair value using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and the Company's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management's assessment of the transparency and reliability of the inputs used to estimate the fair values at the measurement date. The three hierarchy levels are defined as follows:

Level 1—Valuations based on unadjusted quoted market prices in active markets for identical assets or liabilities.

Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement and involve management judgment.

If the inputs used to measure fair value fall into different levels of the fair value hierarchy, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement.

The following tables present the fair values of the Company's assets, measured on a recurring basis, as of March 31, 2026 and December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **March 31, 2026** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury bonds | $223.0 | $— | $223.0 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1010.1 |  | 1010.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 218.1 |  | 218.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental agency bonds | 302.7 |  | 302.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental agency mortgage-backed securities | 5560.0 |  | 5560.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate debt securities | 1175.2 |  | 1175.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate debt securities | 489.0 |  | 489.0 |  |
|  | 8978.1 |  | 8978.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 462.4 | 462.4 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 9.7 | 9.7 |  |  |
|  | 472.1 | 472.1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $9450.2 | $472.1 | $8978.1 | $— |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **December 31, 2025** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury bonds | $243.6 | $— | $243.6 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 960.1 |  | 960.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 235.2 |  | 235.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental agency bonds | 261.0 |  | 261.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental agency mortgage-backed securities | 5260.8 |  | 5260.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. corporate debt securities | 1034.8 |  | 1034.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign corporate debt securities | 471.2 |  | 471.2 |  |
|  | 8466.7 |  | 8466.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stocks | 467.7 | 467.7 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks | 9.9 | 9.9 |  |  |
|  | 477.6 | 477.6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $8944.3 | $477.6 | $8466.7 | $— |

---

The following table presents the carrying amounts and estimated fair values of the Company's financial instruments not measured at fair value as of March 31, 2026 and December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying** | **Estimated fair value** | **Estimated fair value** | **Estimated fair value** | **Estimated fair value** |
| **<u>(in millions)</u>** | **Amount** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **March 31, 2026** |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2436.2 | $2436.2 | $2436.2 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with banks | $81.9 | $81.7 | $15.6 | $66.1 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable, net | $38.7 | $38.4 | $— | $— | $38.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings receivable | $1193.0 | $1193.0 | $— | $1193.0 | $— |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings payable | $1078.6 | $1078.6 | $— | $1078.6 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes and contracts payable | $1545.2 | $1436.5 | $— | $1429.4 | $7.1 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying** | **Estimated fair value** | **Estimated fair value** | **Estimated fair value** | **Estimated fair value** |
| **<u>(in millions)</u>** | **Amount** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **December 31, 2025** |  |  |  |  |  |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1387.3 | $1387.3 | $1387.3 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with banks | $78.5 | $78.2 | $9.9 | $68.3 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable, net | $35.7 | $36.1 | $— | $— | $36.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings receivable | $986.1 | $986.1 | $— | $986.1 | $— |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financings payable | $906.5 | $906.5 | $— | $906.5 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes and contracts payable | $1545.4 | $1459.9 | $— | $1452.1 | $7.8 |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 13 – Share-Based Compensation</u>

The following table summarizes the costs associated with the Company's share-based compensation plans:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| **<u>(in millions)</u>** | **2026** | **2025** |
| Expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs | $22.7 | $25.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRSUs | 2.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee stock purchase plan | 2.3 | 2.2 |
|  | $27.1 | $30.6 |

---

The following table summarizes RSU and PRSU activity for the three months ended March 31, 2026:

---

| | | |
|:---|:---|:---|
| **<u>(in millions, except weighted-average grant-date fair value)</u>** | **Shares** | **Weighted-average<br>grant-date<br>fair value** |
| Unvested at December 31, 2025 | 1.2 | $63.46 |
| Granted during 2026 | 1.0 | $68.53 |
| Vested during 2026 | (0.7) | $66.28 |
| Unvested at March 31, 2026 | 1.5 | $65.59 |

---

<u>Note 14 – Stockholders' Equity</u>

The Company maintains a stock repurchase plan with authorization up to $300 million of the Company's common stock, of which $266.5 million remained as of March 31, 2026. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the three months ended March 31, 2026, the Company repurchased and retired 0.6 million shares of its common stock for a total purchase price of $33.5 million.

<u>Note 15 – Accumulated Other Comprehensive Income (Loss) ("AOCI")</u>

The following table presents a summary of the changes in each component of AOCI for the three months ended March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Unrealized<br>gains (losses) <br>on debt<br> securities** | **Foreign<br>currency<br>translation<br>adjustment** | **Pension<br>benefit<br>adjustment** | **Accumulated<br>other<br>comprehensive<br>income (loss)** |
| Balance at December 31, 2025 | $(147.6) | $(76.3) | $(32.8) | $(256.7) |
| &nbsp;&nbsp;&nbsp;Change in unrealized losses on debt securities | (71.1) |  |  | (71.1) |
| &nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment |  | (12.4) |  | (12.4) |
| &nbsp;&nbsp;&nbsp;Amortization of net actuarial loss |  |  | 0.5 | 0.5 |
| &nbsp;&nbsp;&nbsp;Tax effect | 17.1 | 0.2 | (0.1) | 17.2 |
| Balance at March 31, 2026 | $(201.6) | $(88.5) | $(32.4) | $(322.5) |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Unrealized<br>gains (losses) <br>on debt<br> securities** | **Foreign<br>currency<br>translation<br>adjustment** | **Pension<br>benefit<br>adjustment** | **Total<br>other<br>comprehensive<br>income (loss)** |
| Three Months Ended March 31, 2026 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax change before reclassifications | $(72.4) | $(12.4) | $— | $(84.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassifications out of AOCI | 1.3 |  | 0.5 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect | 17.1 | 0.2 | (0.1) | 17.2 |
| Total other comprehensive income (loss), net of tax | $(54.0) | $(12.2) | $0.4 | $(65.8) |
| Three Months Ended March 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pretax change before reclassifications | $122.9 | $3.9 | $— | $126.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassifications out of AOCI | 1.5 |  | 0.5 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect | (32.1) |  | (0.1) | (32.2) |
| Total other comprehensive income, net of tax | $92.3 | $3.9 | $0.4 | $96.6 |

---

The following table presents the effects of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |  |
| **<u>(in millions)</u>** | **2026** | **2025** | **Affected line items** |
| Unrealized gains (losses) on debt securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized losses on sales of debt securities | $(1.3) | $(1.5) | Net investment gains (losses) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect | $0.3 | $0.4 |  |
| Pension benefit adjustment (1): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of net actuarial loss | $(0.5) | $(0.5) | Other operating expenses |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect | $0.1 | $0.1 |  |

---

(1)Amounts are components of net periodic cost. See Note 11 Employee Benefit Plans for additional details.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

<u>Note 16 – Litigation and Regulatory Contingencies</u> 

The Company and its subsidiaries are parties to lawsuits and are also involved in ongoing routine legal and regulatory proceedings related to their operations. These lawsuits and proceedings frequently are similar in nature to other lawsuits and proceedings pending against the Company's competitors. When the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company's financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded.

With respect to the Company's outstanding ordinary course lawsuits and proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not expected to have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The Company's ordinary course lawsuits include class actions or purported class action lawsuits, which challenge practices in the Company's home warranty and title insurance and settlement services businesses.

Most of the Company's businesses are regulated by various federal, state and local governmental agencies. Many of the Company's other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company's operations.

The Company does not believe that any pending examinations or investigations will have a material adverse effect on the Company's financial condition, results of operations or cash flows. Some of these exams or investigations could, however, result in changes to the Company's business practices which could ultimately have a material adverse impact on the Company's financial condition, results of operations or cash flows.

<u>Note 17 – Segment Information</u> 

The Company consists of the following reportable segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The 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 designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant data and records; provides appraisals and other valuation-related products and services; provides lien release, document custodial and default-related products and services; provides document generation services; provides warehouse lending services; subservices mortgage loans; and provides banking, trust and wealth management services. The Company, through its principal title insurance subsidiary and such subsidiary's affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies, the District of Columbia and certain United States territories. The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in other countries, including Canada, the United Kingdom, various countries in Europe, South Korea, Australia and New Zealand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The home warranty segment sells products including 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. This business currently operates in 36 states and the District of Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The corporate segment includes investments in venture-stage companies, certain financing facilities and corporate services that support the Company's business operations.

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

Information about reportable segment performance, significant expenses and assets are as follows:

For the three months ended March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Title Insurance and Services** | **Home Warranty** | **Corporate** | **Consolidated** |
| &nbsp;&nbsp;Total segment revenue (1) | $1732.3 | $109.8 | $(4.1) | $1838.0 |
| &nbsp;&nbsp;Elimination of intersegment revenue |  |  |  |  |
| &nbsp;&nbsp;Consolidated revenue |  |  |  | $1838.0 |
| &nbsp;&nbsp;Less: (2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 546.4 | 21.0 | 0.7 | 568.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums retained by agents | 602.2 |  |  | 602.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses (3) | 277.4 | 23.3 | 9.9 | 310.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses | 39.5 | 37.2 | 1.1 | 77.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 53.1 | 1.4 |  | 54.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | 20.0 | 1.1 |  | 21.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 26.7 |  | 15.2 | 41.9 |
| &nbsp;&nbsp;Segment income (loss) before income taxes | $167.0 | $25.8 | $(31.0) | $161.8 |
| &nbsp;&nbsp;Elimination of intersegment expenses |  |  |  |  |
| &nbsp;&nbsp;Consolidated income before income taxes |  |  |  | $161.8 |
| &nbsp;&nbsp;Pretax margin | 9.6% | 23.5% |  |  |
| &nbsp;&nbsp;Segment assets | $16976.3 | $401.8 | $835.6 | $18213.7 |
| &nbsp;&nbsp;Elimination of intersegment assets (4) |  |  |  | (277.1) |
| &nbsp;&nbsp;Consolidated total assets |  |  |  | $17936.6 |
| &nbsp;&nbsp;Segment capital expenditures | $38.6 | $1.5 |  | $40.1 |

---

------

(1)Intersegment revenue is included within amounts shown.

(2)The significant expense categories and amounts align with segment level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within amounts shown.

(3)Other operating expenses for each segment primarily include the following:

Title insurance and services - title and data search expenses, office and occupancy expenses and software expense.

Home warranty - advertising expense, office and occupancy expenses, software expense, delivery and storage expenses.

Corporate - employee benefit expense and certain overhead expenses.

(4)Elimination of intercompany asset balances:

---

| | |
|:---|:---|
| Holding company cash balances also included in the title insurance and services segment | $(277.1 |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

For the three months ended March 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Title Insurance and Services** | **Home Warranty** | **Corporate** | **Consolidated** |
| &nbsp;&nbsp;Total segment revenue (1) | $1484.4 | $107.8 | $(9.9) | $1582.3 |
| &nbsp;&nbsp;Elimination of intersegment revenue |  |  |  |  |
| &nbsp;&nbsp;Consolidated revenue |  |  |  | $1582.3 |
| &nbsp;&nbsp;Less: (2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 484.8 | 20.5 | 1.5 | 506.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums retained by agents | 525.5 |  |  | 525.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses (3) | 246.4 | 22.5 | 9.4 | 278.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses | 33.4 | 37.7 | (1.1) | 70.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 51.2 | 1.3 |  | 52.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | 16.3 | 1.1 |  | 17.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 20.0 |  | 15.2 | 35.2 |
| &nbsp;&nbsp;Segment income (loss) before income taxes | $106.8 | $24.7 | $(34.9) | $96.6 |
| &nbsp;&nbsp;Elimination of intersegment expenses |  |  |  |  |
| &nbsp;&nbsp;Consolidated income before income taxes |  |  |  | $96.6 |
| &nbsp;&nbsp;Pretax margin | 7.2% | 22.9% |  |  |
| &nbsp;&nbsp;Segment assets | $14616.5 | $377.1 | $634.8 | $15628.4 |
| &nbsp;&nbsp;Elimination of intersegment assets (4) |  |  |  | (131.0) |
| &nbsp;&nbsp;Consolidated total assets |  |  |  | $15497.4 |
| &nbsp;&nbsp;Segment capital expenditures | $44.4 | $1.2 |  | $45.6 |

---

------

(1)Intersegment revenue is included within amounts shown.

(2)The significant expense categories and amounts align with segment level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within amounts shown.

(3)Other operating expenses for each segment primarily include the following:

Title insurance and services - title and data search expenses, office and occupancy expenses and software expense.

Home warranty - advertising expense, office and occupancy expenses, software expense, delivery and storage expenses.

Corporate - employee benefit expense and certain overhead expenses.

(4)Elimination of intercompany asset balances:

---

| | |
|:---|:---|
| Holding company cash balances also included in the title insurance and services segment | $(131.0 |

---

------

FIRST AMERICAN FINANCIAL CORPORATION

<u>AND SUBSIDIARY COMPANIES</u>

Notes to Condensed Consolidated Financial Statements – (Continued) (unaudited)

Revenues by segment are as follows:

For the three months ended March 31, 2026:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Direct<br>premiums<br>and escrow<br>fees** | **Agent<br>premiums** | **Information<br>and other** | **Net<br>investment<br>income (loss)** | **Net <br>investment<br>gains (losses)** | **Total<br>Revenues** |
| Title Insurance and Services | $557.1 | $759.4 | $269.2 | $154.2 | $(7.6) | $1732.3 |
| Home Warranty | 103.1 |  | 5.9 | 1.3 | (0.5) | 109.8 |
| Corporate and Eliminations |  |  |  | (3.1) | (1.0) | (4.1) |
|  | $660.2 | $759.4 | $275.1 | $152.4 | $(9.1) | $1838.0 |

---

For the three months ended March 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **<u>(in millions)</u>** | **Direct<br>premiums<br>and escrow<br>fees** | **Agent<br>premiums** | **Information<br>and other** | **Net<br>investment<br>income (loss)** | **Net <br>investment<br>gains (losses)** | **Total<br>Revenues** |
| Title Insurance and Services | $459.6 | $654.6 | $236.0 | $137.7 | $(3.5) | $1484.4 |
| Home Warranty | 101.6 |  | 6.2 | 0.8 | (0.8) | 107.8 |
| Corporate and Eliminations | (0.1) |  |  | (3.3) | (6.5) | (9.9) |
|  | $561.1 | $654.6 | $242.2 | $135.2 | $(10.8) | $1582.3 |

---

------

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.** 

*CERTAIN STATEMENTS IN THIS QUARTERLY REPORT ON FORM 10-Q ARE 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 MAY CONTAIN THE WORDS "BELIEVE," "ANTICIPATE," "EXPECT," "PLAN," "PREDICT," "ESTIMATE," "PROJECT," "WILL BE," "WILL CONTINUE," "WILL LIKELY RESULT," OR OTHER SIMILAR WORDS AND PHRASES.* 

*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 THE FACTORS SET FORTH ON PAGES 3-4 OF THIS QUARTERLY REPORT. 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.*

*This Management's Discussion and Analysis contains the financial measure adjusted debt to capitalization ratio that is not presented in accordance with generally accepted accounting principles ("GAAP"), as it excludes the effects of secured financings payable. The Company is presenting this non-GAAP financial measure because it provides the Company's management and readers of this Quarterly Report on Form 10-Q with additional insight into the financial leverage of the Company. The Company does not intend for this non-GAAP financial measure to be a substitute for any GAAP financial information. In this Quarterly Report on Form 10-Q, this non-GAAP financial measure has been presented with, and reconciled to, the most directly comparable GAAP financial measure. Readers of this Quarterly Report on Form 10-Q should use this non-GAAP financial measure only in conjunction with the comparable GAAP financial measure. Because not all companies use identical calculations, the presentation of adjusted debt to capitalization ratio may not be comparable to other similarly titled measures of other companies.*

**CRITICAL ACCOUNTING ESTIMATES** 

A summary of the Company's significant accounting policies that it considers to be the most dependent on the application of estimates and assumptions can be found in the Management's Discussion and Analysis section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

*Pending Accounting Pronouncements*

See Note 1 Basis of Condensed Consolidated Financial Statements to the condensed consolidated financial statements.

------

**Results of Operations**

**Summary**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **<u>(dollars in millions)</u>** | **2026** | **2025** | **$ Change** | **% Change** |
| **Total Revenues by Segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Title Insurance and Services | $1732.3 | $1484.4 | $247.9 | 16.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Home Warranty | 109.8 | 107.8 | 2.0 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and Eliminations | (4.1) | (9.9) | 5.8 | 58.6 |
|  | $1838.0 | $1582.3 | $255.7 | 16.2% |

---

A substantial portion of the revenues for the Company's title insurance and services segment result from sales of, and refinancings of loans on, residential and commercial real estate. In the home warranty segment, revenues associated with the initial year of coverage are impacted by volatility in residential purchase transactions. Traditionally, the greatest volume of real estate activity, particularly residential purchase activity, has occurred in the spring and summer months. However, changes in interest rates, as well as other changes in general economic conditions in the United States and abroad, can cause fluctuations in the traditional pattern of real estate activity.

The Company's total revenues for the first quarter of 2026 were $1.8 billion, which reflected an increase of $255.7 million, or 16.2%, when compared with $1.6 billion for the first quarter of 2025. This increase was primarily attributable to increases in agent premiums of $104.8 million, or 16.0%, and direct premiums and escrow fees in the title insurance business of $97.5 million, or 21.2%. In the title insurance and services segment, direct premiums and escrow fees from domestic commercial and residential refinance transactions increased $87.5 million, or 47.6%, and $18.4 million, or 76.5%, respectively, in the first quarter of 2026 when compared to the first quarter of 2025. Direct premiums and escrow fees from domestic residential purchase transactions decreased $7.0 million, or 3.5%, in the first quarter of 2026 when compared to the first quarter of 2025.

According to the Mortgage Bankers Association's April 20, 2026 Mortgage Finance Forecast (the "MBA Forecast"), residential mortgage originations in the United States (based on the total dollar value of the transactions) are forecasted to increase 43.5% in the first quarter of 2026 when compared to the first quarter of 2025. According to the MBA Forecast, the dollar amount of purchase originations are forecasted to increase 22.1% and refinance originations are forecasted to increase 95.5%. This volume of domestic residential mortgage origination activity contributed to a decrease of 3.5% in direct premiums and escrow fees for the Company's direct title operations from domestic residential purchase transactions and an increase of 76.5% from domestic refinance transactions in the first quarter of 2026 when compared to the first quarter of 2025.

During the first quarter of 2026, the level of domestic title orders opened per day by the Company's direct title operations increased 8.3% when compared with the first quarter of 2025. Commercial and refinance opened orders per day increased 3.5% and 48.1%, respectively, while residential purchase opened orders per day decreased 4.1% in the first quarter of 2026 when compared with the first quarter of 2025.

------

**Title Insurance and Services** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **<u>(dollars in millions)</u>** | **2026** | **2025** | **$ Change** | **% Change** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct premiums and escrow fees | $557.1 | $459.6 | $97.5 | 21.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agent premiums | 759.4 | 654.6 | 104.8 | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information and other | 269.2 | 236.0 | 33.2 | 14.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | 154.2 | 137.7 | 16.5 | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | (7.6) | (3.5) | (4.1) | (117.1) |
|  | 1732.3 | 1484.4 | 247.9 | 16.7 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 546.4 | 484.8 | 61.6 | 12.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums retained by agents | 602.2 | 525.5 | 76.7 | 14.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 277.4 | 246.4 | 31.0 | 12.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses and other claims | 39.5 | 33.4 | 6.1 | 18.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 53.1 | 51.2 | 1.9 | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | 20.0 | 16.3 | 3.7 | 22.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 26.7 | 20.0 | 6.7 | 33.5 |
|  | 1565.3 | 1377.6 | 187.7 | 13.6 |
| Income before income taxes | $167.0 | $106.8 | $60.2 | 56.4% |
| Pretax margins | 9.6% | 7.2% | 2.4% | 33.3% |

---

Direct premiums and escrow fees were $557.1 million for the three months ended March 31, 2026, an increase of $97.5 million, or 21.2%, when compared with the same period of the prior year. The increase was due to increases in domestic average revenues per order and in the number of domestic title orders closed by the Company's direct title operations. Domestic average revenues per order closed was $4,229 for the three months ended March 31, 2026, an increase of 12.9% when compared with $3,747 for the three months ended March 31, 2025, which was primarily due to an increase in average revenues per order on commercial transactions, partially offset by a shift in mix from higher premium purchase transactions to lower premium refinance transactions. The Company's direct title operations closed 119,900 domestic title orders during the three months ended March 31, 2026, an increase of 8.8% when compared with 110,300 domestic title orders closed during the same period of the prior year, which were generally consistent with the changes in residential mortgage origination activity in the United States as reported in the MBA Forecast. Domestic residential purchase and refinance orders closed per day decreased by 6.0% and increased by 56.6%, respectively, for the three months ended March 31, 2026 when compared to the same period of the prior year.

Agent premiums were $759.4 million for the three months ended March 31, 2026, an increase of $104.8 million, or 16.0%, when compared with the same period of the prior year. Agent premiums are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. As a result, there is generally a delay between the agent's issuance of a title policy and the Company's recognition of agent premiums. Therefore, current quarter agent premiums typically reflect prior quarter mortgage origination activity. The increase in agent premiums for the three months ended March 31, 2026 is generally consistent with the 19.1% increase in the Company's direct premiums and escrow fees in the fourth quarter of 2025 as compared with the fourth quarter of 2024.

Information and other revenues primarily consist of revenues generated from fees associated with title search and related reports, title and other real property records and images, other non-insured settlement services and risk mitigation products and services. These revenues generally trend with direct premiums and escrow fees but are typically less volatile since a portion of the revenues are subscription based and do not fluctuate with transaction volumes.

Information and other revenues were $269.2 million for the three months ended March 31, 2026, an increase of $33.2 million, or 14.1%, when compared with the same period of the prior year. The increase was primarily due to revenue growth in the Company's subservicing business, higher demand for non-insured information products and services and growth in refinance activity in the Company's Canadian operations.

Net investment income totaled $154.2 million for the three months ended March 31, 2026, an increase of $16.5 million, or 12.0%, when compared with the same period of the prior year. The increase in investment income was primarily driven by an increase in interest income from the Company's investment portfolio and its warehouse lending business.

------

Net investment losses were $7.6 million and $3.5 million for the three months ended March 31, 2026 and 2025, respectively. The losses for the three months ended March 31, 2026 were primarily attributable to decreases in the fair values of marketable equity securities. The losses for the three months ended March 31, 2025 were primarily attributable to asset impairments.

Personnel costs were $546.4 million for the three months ended March 31, 2026, an increase of $61.6 million, or 12.7%, when compared with the same period of the prior year. The increase was primarily attributable to higher incentive compensation expense due to higher revenue and profitability, and higher salaries and employee benefits expenses.

Agents retained $602.2 million of title premiums generated by agency operations for the three months ended March 31, 2026, which compares with $525.5 million for the same period of the prior year. The percentage of title premiums retained by agents was 79.3% and 80.3% for the three months ended March 31, 2026 and 2025, respectively.

Other operating expenses were $277.4 million for the three months ended March 31, 2026, an increase of $31.0 million, or 12.6%, when compared with the same period of the prior year. The increase was primarily due to higher production expenses on higher volumes, increases in software and travel expenses, and the lack of a prior year credit related to the release of an acquisition-related incentive obligation, partially offset by a reduction in legal expense.

The provision for policy losses and other claims, expressed as a percentage of title insurance premiums and escrow fees, was 3.0% for the three months ended March 31, 2026 and 2025. The 3.0% loss provision rate for the three months ended March 31, 2026 reflects an ultimate loss rate of 3.75% for the 2026 policy year and reserve releases of 0.75%, or $9.9 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2026. The 3.0% loss provision rate for the three months ended March 31, 2025 reflected an ultimate loss rate of 3.75% for the 2025 policy year and reserve releases of 0.75%, or $8.4 million for prior policy years, all based on title insurance premiums and escrow fees for the three months ended March 31, 2025.

Depreciation and amortization expense was $53.1 million for the three months ended March 31, 2026, an increase of $1.9 million, or 3.7%, when compared with the same period of the prior year. The increase was primarily due to higher amortization of capitalized internal-use software from recently deployed digital settlement products.

Premium taxes were $20.0 million for the three months ended March 31, 2026, an increase of $3.7 million, or 22.7%, when compared with the same period of the prior year. Premium taxes as a percentage of title insurance premiums and escrow fees were 1.5% for the three months ended March 31, 2026 and 2025.

Interest expense was $26.7 million for the three months ended March 31, 2026, an increase of $6.7 million, or 33.5%, when compared with the same period of the prior year. The increase was primarily attributable to higher interest expense in the Company's warehouse lending business and higher interest paid on depositor funds.

Pretax margins for the title insurance business reflect the high cost of performing the essential services required before insuring title, whereas the corresponding revenues are subject to regulatory and competitive pricing restraints. Due to the relatively high proportion of fixed costs in the title insurance business, pretax margins generally improve as closed order volumes increase. Pretax margins for the segment are also impacted by (1) net investment income and net investment gains or losses, which may not move in the same direction as closed order volumes, (2) the composition (residential or commercial) and type (resale, refinancing or new construction) of real estate activity and (3) the percentage of title insurance premiums generated by agency operations as margins from direct operations are generally higher than from agency operations due primarily to the large portion of the premium that is retained by the agent. The title insurance and services segment recorded pretax margins of 9.6% and 7.2% for the three months ended March 31, 2026 and 2025, respectively.

------

**Home Warranty**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **<u>(dollars in millions)</u>** | **2026** | **2025** | **$ Change** | **% Change** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct premiums | $103.1 | $101.6 | $1.5 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information and other | 5.9 | 6.2 | (0.3) | (4.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | 1.3 | 0.8 | 0.5 | 62.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | (0.5) | (0.8) | 0.3 | 37.5 |
|  | 109.8 | 107.8 | 2.0 | 1.9 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 21.0 | 20.5 | 0.5 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 23.3 | 22.5 | 0.8 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses and other claims | 37.2 | 37.7 | (0.5) | (1.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1.4 | 1.3 | 0.1 | 7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium taxes | 1.1 | 1.1 |  |  |
|  | 84.0 | 83.1 | 0.9 | 1.1 |
| Income before income taxes | $25.8 | $24.7 | $1.1 | 4.5% |
| Pretax margins | 23.5% | 22.9% | 0.6% | 2.6% |

---

Direct premiums were $103.1 million for the three months ended March 31, 2026, an increase of $1.5 million, or 1.5%, when compared with the same period of the prior year. The increase was primarily attributable to an increase in the average price per policy.

Personnel costs and other operating expenses totaled $44.3 million for the three months ended March 31, 2026, an increase of $1.3 million, or 3.0%, when compared with the same period of the prior year. The increase was primarily attributable to higher software expenses, deferred acquisition costs, and salaries and severance expenses.

The provision for home warranty claims, expressed as a percentage of home warranty premiums, was 36.1% and 37.1% for the three months ended March 31, 2026 and 2025, respectively. The decrease in the claims rate was primarily attributable to lower claims severity and lower number of claims.

A large part of the revenues for the home warranty segment are generated by renewals and are not dependent on the level of real estate activity in the year of renewal. With the exception of the provision for losses, the majority of the expenses for this segment are variable in nature and, therefore, generally fluctuate with revenue. Accordingly, pretax margins (before provision for losses) are relatively constant, although, as a result of some fixed expenses, profit margins (before provision for losses) should nominally improve as premium revenues increase. Pretax margins are also impacted by net investment income and net investment gains or losses, which may not move in the same direction as premium revenues. The home warranty segment recorded pretax margins of 23.5% and 22.9% for the three months ended March 31, 2026 and 2025, respectively.

------

**Corporate** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **<u>(dollars in millions)</u>** | **2026** | **2025** | **$ Change** | **% Change** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) | $(3.1) | $(3.4) | 0.3 | 8.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | (1.0) | (6.5) | 5.5 | 84.6 |
|  | (4.1) | (9.9) | 5.8 | 58.6 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel costs | 0.7 | 1.5 | (0.8) | (53.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 9.9 | 9.4 | 0.5 | 5.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for policy losses and other claims | 1.1 | (1.1) | 2.2 | 200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 15.2 | 15.2 |  |  |
|  | 26.9 | 25.0 | 1.9 | 7.6% |
| Loss before income taxes | $(31.0) | $(34.9) | $3.9 | 11.2% |

---

Net investment gains/losses totaled losses of $1.0 million and $6.5 million for the three months ended March 31, 2026 and 2025, respectively, and were primarily related to changes in the fair values of marketable equity securities.

Personnel costs and other operating expenses totaled $10.6 million and $10.9 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in the current year was primarily attributable to lower returns on participant investments within the Company's deferred compensation plan.

**Eliminations** 

The Company's inter-segment eliminations were not material for the three months ended March 31, 2026 and 2025.

**INCOME TAXES** 

The Company's effective income tax rates (income tax expense as a percentage of income before income taxes) were 22.9% and 22.6% for the three months ended March 31, 2026 and 2025, respectively. The differences in the effective tax rates are primarily due to the impact on state income taxes resulting from the relative proportion of income derived from the Company's insurance and non-insurance businesses as well as permanent differences between amounts reported for financial statement purposes and amounts reported for income tax purposes.

The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and making adjustments to the allowance as necessary. The factors used in assessing the likelihood of realization include forecasts of future taxable income and available tax planning strategies that could be implemented. The Company's ability to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of its deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted during the next 12 months.

**NET INCOME AND NET INCOME ATTRIBUTABLE TO THE COMPANY**

Net income for the three months ended March 31, 2026 and 2025 was $124.8 million and $74.8 million, respectively. Net income attributable to the Company for the three months ended March 31, 2026 and 2025 was $125.1 million, or $1.21 per diluted share, and $74.2 million, or $0.71 per diluted share, respectively.

------

**LIQUIDITY AND CAPITAL RESOURCES** 

*Cash requirements.* The Company generates cash primarily from sales of its products and services and from investment income. The Company's current cash requirements include operating expenses, taxes, payments of principal and interest on its debt, capital expenditures, dividends on its common stock, and may include business acquisitions, investments in and loans to private companies and repurchases of its common stock. Management forecasts the cash needs of the holding company and its primary subsidiaries and regularly reviews their short-term and long-term projected sources and uses of funds, as well as the asset, liability, investment and cash flow assumptions underlying such forecasts. Based on the Company's ability to generate cash flows from operations, its liquid-asset position and amounts available on its revolving credit facility, management believes that its resources are sufficient to satisfy its anticipated operational cash requirements and obligations for at least the next twelve months.

The substantial majority of the Company's business is dependent upon activity in the real estate and mortgage markets, which are cyclical and seasonal. Periods of increasing interest rates and reduced affordability, supply and mortgage financing availability generally have an adverse effect on residential real estate activity and, therefore, typically decrease the Company's revenues. In contrast, periods of declining interest rates and increased affordability, supply and mortgage financing availability generally have a positive effect on residential real estate activity, which typically increases the Company's revenues. Residential purchase activity is typically slower in the winter months with increased volumes in the spring and summer months. Residential refinance activity is typically more volatile than purchase activity and is highly impacted by changes in interest rates. Commercial real estate volumes are less sensitive to changes in interest rates but fluctuate based on local supply and demand conditions for space and financing availability.

Cash provided by operating activities totaled $5.6 million and cash used for operating activities totaled $52.8 million for the three months ended March 31, 2026 and 2025, respectively, after claim payments, net of recoveries, of $77.7 million and $76.3 million, respectively. The principal nonoperating uses of cash and cash equivalents for the three months ended March 31, 2026 and 2025 were advances and repayments related to secured financing transactions, purchases of debt and equity securities, dividends to common stockholders, capital expenditures and repurchases of company common shares. The principal nonoperating sources of cash and cash equivalents for the three months ended March 31, 2026 and 2025 were borrowings and collections related to secured financing transactions, proceeds from the sales and maturities of debt and equity securities and increases in the deposit balances at the Company's banking operations. The net effect of all activities on cash and cash equivalents were increases of $1.0 billion and $327.0 million for the three months ended March 31, 2026 and 2025, respectively.

The Company continually assesses its capital allocation strategy, including decisions relating to dividends, stock repurchases, capital expenditures, acquisitions and investments. In March 2026, the Company paid a first quarter cash dividend of 55 cents per common share. Management expects that the Company will continue to pay quarterly cash dividends at or above the current level. The timing, declaration and payment of future dividends, however, falls within the discretion of the Company's board of directors and will depend upon many factors, including the Company's financial condition and earnings, the capital requirements of the Company's businesses, restrictions imposed by applicable law and any other factors the board of directors deems relevant from time to time.

The Company maintains a stock repurchase plan with authorization up to $300 million of the Company's common stock, of which $266.5 million remained as of March 31, 2026. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the three months ended March 31, 2026, the Company repurchased and retired 0.6 million shares of its common stock for a total purchase price of $33.5 million.

------

*Holding Company.* First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The holding company's current cash requirements include payments of principal and interest on its debt, taxes, payments in connection with employee benefit plans, dividends on its common stock and other expenses. The holding company is dependent upon dividends and other payments from its operating subsidiaries to meet its cash requirements. The Company's target is to maintain a cash balance at the holding company equal to at least twelve months of estimated cash requirements. At certain points in time, the actual cash balance at the holding company may vary from this target due to, among other factors, the timing and amount of cash payments made and dividend payments received. Pursuant to insurance and other regulations under which the Company's insurance subsidiaries operate, the amount of dividends, loans and advances available to the holding company is limited, principally for the protection of policyholders. As of March 31, 2026 under such regulations, the maximum amount available to the holding company from its insurance subsidiaries for the remainder of 2026, without prior approval from applicable regulators, was dividends of $420.4 million and loans and advances of $113.6 million. However, the timing and amount of dividends paid by the Company's insurance subsidiaries to the holding company falls within the discretion of each insurance subsidiary's board of directors and will depend upon many factors, including the level of total statutory capital and surplus required to support minimum financial strength ratings by certain rating agencies. Such restrictions have not had, nor are they expected to have, an impact on the holding company's ability to meet its cash obligations.

As of March 31, 2026 the holding company's sources of liquidity included $251.5 million of cash and cash equivalents and $900.0 million available on the Company's revolving credit facility. Management believes that liquidity at the holding company is sufficient to satisfy anticipated cash requirements and obligations for at least the next twelve months.

*Financing.* The Company maintains a senior unsecured credit agreement with JPMorgan Chase Bank, N.A., in its capacity as administrative agent, and the lenders party thereto that provides for a $900.0 million revolving credit facility. The credit agreement includes an expansion option that permits the Company, subject to satisfaction of certain conditions, to increase the revolving commitments and/or add term loan tranches in an aggregate amount not to exceed $450.0 million. The obligations of the Company under the credit agreement are neither secured nor guaranteed. Proceeds from borrowings made from time to time under the credit agreement may be used for general corporate purposes. Unless terminated earlier, the credit agreement will terminate on May 17, 2028. At March 31, 2026, the Company had no outstanding borrowings under the facility.

In addition to amounts available under its credit facility, certain subsidiaries of the Company maintain separate financing arrangements. The primary financing arrangements maintained by subsidiaries of the Company are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•FirstFunding, Inc., a specialized warehouse lender to correspondent mortgage lenders, maintains secured warehouse lending facilities with several banking institutions. At March 31, 2026, outstanding borrowings under these facilities totaled $1.1 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First American Trust, FSB ("FA Trust"), a federal savings bank, maintains a secured line of credit with the Federal Home Loan Bank and maintains access to the Federal Reserve's Discount Window. At March 31, 2026, no amounts were outstanding under any of these facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First Canadian Title Company Limited, a Canadian title insurance and services company, maintains credit facilities with certain Canadian banking institutions. At March 31, 2026, no amounts were outstanding under these facilities.

The Company's debt to capitalization ratios were 32.2% and 30.7% at March 31, 2026 and December 31, 2025, respectively. The Company's adjusted debt to capitalization ratio, excluding secured financings payable of $1.1 billion and $906.5 million at March 31, 2026 and December 31, 2025, respectively, was 21.9%.

*Investment Portfolio.* The Company maintains a high quality, liquid investment portfolio that is primarily held at its insurance and banking subsidiaries. As of March 31, 2026, 95% of the Company's investment portfolio consisted of debt securities, of which 72% were either United States government-backed or rated AAA and 98% were either rated or classified as investment grade or better. Percentages are based on the estimated fair values of the securities. Credit ratings reflect published ratings obtained from globally recognized securities rating agencies. If a security was rated differently among the rating agencies, the lowest rating was selected. For further information on the credit quality of the Company's debt securities portfolio at March 31, 2026, see Note 3 Debt Securities to the condensed consolidated financial statements.

In addition to its debt and marketable equity securities portfolio, the Company maintains investments in non-marketable equity securities and securities accounted for under the equity method. For further information on the Company's equity securities, see Note 4 Equity Securities to the condensed consolidated financial statements.

------

*Off-balance sheet arrangements.* The Company administers escrow deposits as a service to customers in its direct title operations. Escrow deposits totaled $10.5 billion and $9.3 billion at March 31, 2026 and December 31, 2025, respectively, of which $4.1 billion and $3.7 billion, respectively, were held at FA Trust. The remaining deposits were held at third-party financial institutions. Escrow deposits held at third-party financial institutions are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets.

Trust assets administered by FA Trust totaled $5.8 billion and $5.6 billion at March 31, 2026 and December 31, 2025, respectively, of which $243.8 million and $173.9 million, respectively, were held at FA Trust. The remaining trust assets were held at third-party financial institutions. Trust assets administered by FA Trust and held at third-party institutions are fiduciary client assets, which are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. The Company could be held contingently liable if FA Trust were to breach any of its fiduciary duties.

In conducting its operations, the Company often holds customers' assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits with various financial institutions. The results from these programs are included as either income or as a reduction in expense, as appropriate, in the condensed consolidated statements of income based on the nature of the arrangement and benefit received.

The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds administered by the Company totaled $2.6 billion and $2.7 billion at March 31, 2026 and December 31, 2025, respectively, of which $588.3 million and $93.6 million, respectively, were held at FA Trust. The like-kind exchange deposits held at third-party financial institutions are not included in the accompanying condensed consolidated balance sheets as the proceeds and property are not considered assets of the Company due to the structure utilized to facilitate these transactions. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the returns on such proceeds.

In conducting its residential mortgage loan subservicing operations, the Company administers cash deposits on behalf of its clients. Cash deposits totaled $2.5 billion and $1.6 billion at March 31, 2026 and December 31, 2025, respectively, of which $1.7 billion and $1.0 billion, respectively, were held at FA Trust. The remaining deposits were held at third-party financial institutions. Cash deposits held at third-party financial institutions are not considered assets of the Company and, therefore, are not included in the accompanying condensed consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable for the disposition of these assets. In connection with certain accounts, the Company has ongoing programs for realizing economic benefits with various financial institutions whereby it earns economic benefits either as income or as a reduction in expense. The Company maintains certain debt securities on deposit with a fair value of $54.3 million at March 31, 2026 for which it has provided a secured interest as collateral in connection with a mortgage loan subservicing agreement.

Deposit balances held at FA Trust are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying condensed consolidated balance sheets.

------

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.** 

The Company's primary exposure to market risk relates to interest rate risk associated with certain financial instruments. Although the Company monitors its risk associated with fluctuations in interest rates, it does not currently use derivative financial instruments on any significant scale to hedge these risks.

There have been no material changes in the Company's market risks since the filing of its Annual Report on Form 10-K for the year ended December 31, 2025.

**Item 4. Controls and Procedures.** 

**Evaluation of Disclosure Controls and Procedures** 

The Company's chief executive officer and chief financial officer have concluded that, as of March 31, 2026, the end of the quarterly period covered by this Quarterly Report on Form 10-Q, the Company's disclosure controls and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, were effective, based on the evaluation of these controls and procedures required by Rule 13a-15(b) thereunder.

**Changes in Internal Control Over Financial Reporting** 

There was no change in the Company's internal control over financial reporting during the quarter ended March 31, 2026, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

------

**PART II: OTHER INFORMATION** 

**Item 1. Legal Proceedings.**

See Note 16 Litigation and Regulatory Contingencies to the condensed consolidated financial statements included in "Item 1. Financial Statements (unaudited)" of Part I of this report, which is incorporated by reference into this Item 1 of Part II.

**Item 1A. Risk Factors.**

In addition to the information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the "Risk Factors" disclosed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no material changes as of the date of this report to the risk factors disclosed in "Item 1A. Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2025.

**Item 2. Unregistered Sales of Equi** **ty Securities and Use of Proceeds.** 

**Unregistered Sales of Equity Securities** 

During the quarter ended March 31, 2026, the Company did not issue any unregistered common stock.

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers** 

In July 2025, the Company's board of directors authorized the repurchase of up to $300.0 million of the Company's issued and outstanding common stock. The authorization does not have an expiration date. The following table describes purchases by the Company under the share repurchase program that settled during each period set forth in the table. Prices in column (b) include commissions. Cumulatively, as of March 31, 2026, the Company had repurchased $33.5 million (including commissions) of its shares authorized under the share repurchase program and had the authority to repurchase an additional $266.5 million (including commissions) under that program.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(a) <br>Total<br>Number of<br>Shares<br>Purchased** | **(b)<br>Average<br>Price Paid<br>per Share** | **(c) <br>Total Number of<br>Shares<br>Purchased as Part<br>of Publicly<br>Announced Plans<br>or Programs** | **(d) <br>Maximum<br>Approximate Dollar<br>Value of Shares<br>that May Yet Be<br>Purchased Under<br>the Plans or<br>Programs** |
| January 1 to January 31, 2026 | 119476 | $59.49 | 119476 | $292892904 |
| February 1 to February 28, 2026 |  |  |  | 292892904 |
| March 1 to March 31, 2026 | 436860 | 60.41 | 436860 | 266501407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 556336 | $60.21 | 556336 | $266501407 |

---

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.** 

Not applicable.

**Item 5. Other Information.** 

(a)None.

(b)Not applicable.

(c)During the quarter ended March 31, 2026, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).

------

**Item 6. Exhibits.** 

Each management contract or compensatory plan or arrangement in which any director or named executive officer of First American Financial Corporation, as defined by Item 402(a)(3) of Regulation S-K (17 C.F.R. §229.402(a)(3)), participates that is included among the exhibits listed on the Exhibit Index is identified on the Exhibit Index by an asterisk (\*).

---

| | | |
|:---|:---|:---|
| **ExhibitNo.** | &nbsp;&nbsp;&nbsp;**Description** | **Location** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | [<u>Restated Certificate of Incorporation of First American Financial Corporation, effective as of May 14, 2025.</u>](https://www.sec.gov/Archives/edgar/data/1472787/000095017025073554/faf-ex3_1.htm) | Incorporated by reference herein to Exhibit 3.1 to the Current Report on Form 8-K filed May 16, 2025. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | [<u>Bylaws of First American Financial Corporation, amended and restated effective as of November 7, 2023.</u>](https://www.sec.gov/Archives/edgar/data/1472787/000095017023062157/faf-ex3_1.htm) | Incorporated by reference herein to Exhibit 3.1 to the Current Report on Form 8-K filed November 9, 2023. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31(a) | [<u>Certification by Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.</u>](faf-ex31_a.htm) | Attached. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31(b) | [<u>Certification by Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.</u>](faf-ex31_b.htm) | Attached. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32(a) | [<u>Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.</u>](faf-ex32_a.htm) | Attached. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32(b) | [<u>Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.</u>](faf-ex32_b.htm) | Attached. |
| &nbsp;&nbsp;101.INS | Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | N/A. |
| &nbsp;&nbsp;101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document. | N/A. |
| &nbsp;&nbsp;104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | N/A. |

---

------

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | FIRST AMERICAN FINANCIAL CORPORATION<br>(Registrant) | FIRST AMERICAN FINANCIAL CORPORATION<br>(Registrant) |
| Date: April 23, 2026  | By | /s/ Mark E. Seaton |
|  |  | Mark E. Seaton |
|  |  | Chief Executive Officer<br>(Principal Executive Officer) |
| Date: April 23, 2026  | By | /s/ Matthew F. Wajner |
|  |  | Matthew F. Wajner |
|  |  | Chief Financial Officer<br>(Principal Financial Officer) |

---

------

## Ex-31.(A)

**Exhibit 31(a)** 

CERTIFICATIONS

I, Mark E. Seaton, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First American Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| Date: April 23, 2026 |
| <br>/s/ Mark E. Seaton |
| Mark E. Seaton |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

------

## Ex-31.(B)

**Exhibit 31(b)** 

CERTIFICATIONS

I, Matthew F. Wajner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of First American Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| |
|:---|
| Date: April 23, 2026 |
| <br>/s/ Matthew F. Wajner |
| Matthew F. Wajner |
| Chief Financial Officer |
| (Principal Financial Officer) |

---

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## Ex-32.(A)

**Exhibit 32(a)**

Certification pursuant to 18 U.S.C. Section 1350,

<u>as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u> 

In connection with the Form 10-Q of First American Financial Corporation (the "Company") for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Mark E. Seaton, chief executive officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

---

| |
|:---|
| /s/ Mark E. Seaton |
| Mark E. Seaton |
| Chief Executive Officer |
| Date: April 23, 2026 |

---

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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## Ex-32.(B)

**Exhibit 32(b)** 

Certification pursuant to 18 U.S.C. Section 1350,

<u>as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u> 

In connection with the Form 10-Q of First American Financial Corporation (the "Company") for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Matthew F. Wajner, chief financial officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

---

| |
|:---|
| /s/ Matthew F. Wajner  |
| Matthew F. Wajner |
| Chief Financial Officer |
| Date: April 23, 2026 |

---

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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