First American Financial Corporation, through its subsidiaries, engages in the business of providing financial services. Segments The company operates through two segments, Title Insurance and Services; and Specialty Insurance. Title Insurance and Services This segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. It also provides products, services and solutions involving the use of real property related data, including data derived from its proprietary database, designed to mitigate risk or otherwise facilitate real estate transactions. It maintains, manages and provides access to title plant records and images and, in addition, provides banking, trust and investment advisory services. The company conducts its title insurance and closing 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 and the District of Columbia. The company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. Customers, Sales and Marketing: The company distributes its title insurance policies and related products and services through its direct and agent channels. In its direct channel, the distribution of its policies and related products and services occurs through sales representatives located at various offices throughout the United States where real estate transactions are handled. Title insurance policies issued and other products and services delivered through this channel are primarily delivered in connection with sales and refinances of residential and commercial real property. Within the direct channel, the company’s sales and marketing efforts are focused on the primary sources of business referrals. For residential business referred by local or decentralized customers, the company markets to real estate agents and brokers, mortgage brokers, real estate attorneys, mortgage originators, homebuilders and escrow service providers. For refinance and default related business referred by customers with centrally managed platforms, it markets to mortgage originators, servicers, and governmental sponsored enterprises. For the commercial business, the company markets primarily to investors, including real estate investment trusts, insurance companies and asset managers, as well as to law firms, commercial banks, investment banks, mortgage brokers and the owners of commercial real estate. The company also markets directly to national homebuilders focused on newly constructed residential property. Agency Operations: The company issues title insurance policies through a network of agents. International Operations: The company provides products and services in various countries outside of the United States. The company has direct operations and a physical presence in several countries, including Canada, the United Kingdom and Australia. Trust and Investment Advisory Services: The company’s federal savings bank subsidiary offers trust and investment advisory services, deposit services and asset management services. Competition The company’s major nationwide competitors in its principal markets include Fidelity National Financial, Inc., Stewart Title Guaranty Company, and Old Republic International Corporation. Specialty Insurance This segment issues property and casualty insurance policies and sells home warranty products. In addition, the company’s corporate function consists of certain financing facilities, as well as the corporate services that support its business operations. Property and Casualty Insurance: The company’s property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism and other types of property damage. The company is licensed to issue policies in all 50 states and the District of Columbia and actively issue policies in 46 states. In certain markets, the company also offers preferred risk auto insurance. The company markets its property and casualty insurance business using both direct distribution channels, including cross-selling through its existing closing-service activities, and through a network of independent brokers. Home Warranties: The company’s home warranty business provides 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. The company generally sells renewals directly to consumers. Its home warranty business operates in 39 states and the District of Columbia. Regulation The company’s primary title insurance underwriter is a California corporation and, accordingly, is primarily regulated by the California Department of Insurance. Its federal savings bank and industrial bank are both subject to regulation by the Federal Deposit Insurance Corporation. Its federal savings bank is regulated by the Office of the Comptroller of the Currency, with the Federal Reserve Board supervising its parent holding companies. The industrial bank is regulated by the California Department of Financial Institutions.
first american financial (FAF:New York)
1 First American Way
Santa Ana, CA 92707
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