First American Financial Corp (FAF) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Earnings Press Release
10-Q Quarterly Report
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First American Financial Corp
Ticker: FAF CIK: 1472787

Exhibit 99.1

NEWS

FOR

IMMEDIATE

RELEASE

FIRST AMERICAN FINANCIAL REPORTS third QUARTER 2018 RESULTS

—Reports Earnings of $1.34 per Diluted Share—

SANTA ANA, Calif., Oct. 25, 2018 – First American Financial Corporation (NYSE: FAF),

a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today announced financial results for the third quarter ended Sept. 30, 2018.

Current Quarter Highlights

•	Total revenue of $1.5 billion, up 1 percent compared with last year

•	Investment income of $67.9 million, up 53 percent compared with last year

•	Title Insurance and Services segment pretax margin of 14.6 percent

•	Purchase revenues up 1 percent compared with last year

Average revenue per order up 6 percent

Closed orders per day down 4 percent

•	Commercial revenues of $183.5 million, up 5 percent compared with last year

•	Specialty Insurance segment total revenues up 5 percent, with a pretax margin of 5.0 percent

•	Cash flow from operations of $230.8 million, up 4 percent compared with last year

Selected Financial Information

($ in millions, except per share data)

	Three Months Ended
	September 30,
	2018		2017
Total revenue	$	1,542.2	$	1,519.6
Income before taxes		195.6		18.0

Net income	$	151.5	$	21.4
Net income per diluted share		1.34	0.19

Total revenue for the third quarter of 2018 was $1.5 billion, an increase of 1 percent relative to the third quarter of 2017. Net income in the current quarter was $151.5 million, or $1.34 per diluted share, compared with net income of $21.4 million, or $0.19 per diluted share, in the third quarter of 2017. Net realized investment gains in the current quarter were $11.1 million, or 8 cents per diluted share, compared with net realized investment losses of $7.0 million, or 4 cents per diluted share, last year. The current quarter’s results include a $5.7 million expense, or 4 cents per diluted share, related to a legacy regulatory matter. In addition, the third quarter results in 2017 included an expense of $152.4 million, or 89 cents per diluted share, for the completion of the company’s pension plan termination.

“Our strong financial results continued this quarter, as we achieved a pretax margin of 14.6 percent in the title business,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “Our commercial business had another good quarter, with revenue growth of 5 percent. We continue to benefit from increasing investment income driven by rising short-term interest rates, however higher mortgage rates have recently contributed to a slowdown in purchase activity.

-more-

The following information was filed by First American Financial Corp (FAF) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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