First American Financial Reports Strong 2024 Results

First American ( (FAF) ) has released its Q4 earnings. Here is a breakdown of the information First American presented to its investors.

First American Financial Corporation, a leader in title, settlement, and risk solutions for real estate transactions, has reported its financial results for the fourth quarter and full year of 2024. The company is recognized for its innovative technologies and strong presence in the digital transformation of the real estate industry.

In the latest reporting period, First American Financial witnessed a substantial increase in its quarterly and annual revenues, achieving $1.7 billion and $6.1 billion, respectively. The company reported a fourth-quarter earnings per diluted share of $0.69, or $1.35 on an adjusted basis, and an annual earnings per diluted share of $1.26, or $4.40 on an adjusted basis. A noteworthy highlight was the significant growth in its commercial revenues, which surged by 47% in the quarter.

Key financial metrics included an 18% rise in total quarterly revenue compared to the previous year, with adjusted revenue reaching $1.8 billion, up 20%. The Title Insurance and Services segment saw a pretax margin of 7.9%, escalating to 11.8% on an adjusted basis. Moreover, the Home Warranty segment maintained strong performance with a pretax margin of 18.1%. Despite these positive results, the company faced net investment losses primarily due to strategic portfolio rebalancing.

Looking ahead, First American Financial anticipates a challenging but promising 2025, with expectations for steady growth in the commercial business and improvements in the residential purchase and refinance markets. The company remains optimistic about its ability to adapt to elevated mortgage rates while continuing to enhance its market position and financial performance.