First American Financial boosts earnings on higher commercial revenue
Adjusted earnings per share rose 36% to $2.08 in the second quarter.
First American Financial (FAF), the title insurance provider, reported a rise in second-quarter adjusted earnings per share to $2.08.
The results reflected a shift toward higher-value orders and commercial growth, which offset a slight decline in domestic direct title order volume.
Total revenue rose 15% year-over-year to $2.1 billion. Adjusted earnings per share increased 36% from $1.53 in the second quarter of 2024.
Commercial revenues grew 34% year-over-year to $314 million. This growth followed a first-quarter result of $271 million. The company also saw an increase in the average revenue per direct title order, which reached $4,572, up from $3,897 in the second quarter of 2024.
Margins in the Title Insurance and Services segment expanded to 14.0%, compared to 13.2% in the same period last year and 10.4% in the first quarter of 2025. Investment income for the segment rose 11% to $164 million.
In the Home Warranty segment, the pretax margin increased to 21.3% from 20.2% a year earlier. The home warranty claim loss rate declined to 40% from 41% in the second quarter of 2024.
Net investment gains were $12 million, a reversal from net investment losses of $10 million in the prior-year quarter. The corporate segment pretax loss widened to $56 million from a $44 million loss in the second quarter of 2024.
The company's debt-to-capital ratio was 31.4%.