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. Sales and Marketing: Wells Fargo & Company and JPMorgan Chase & Co., together with their affiliates, originate or are involved in approximately 25% of the mortgages in the United States. Each of these institutions purchases title insurance policies and other products and services from the company. The company distributes title insurance policies and related products and services through its direct and agent channels. In its direct channel, the distribution of policies and related products and services occurs through sales representatives located at offices throughout the United States. 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. 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, the company 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. It also markets directly to national homebuilders focused on newly constructed residential property. International Operations: The company provides products and services in countries outside of the United States. It has direct operations and a physical presence in 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 competitors in its principal markets include Fidelity National Financial, Inc.; Stewart Title Guaranty Company; Old Republic International Corporation and their affiliates. Specialty Insurance segment The Specialty Insurance segment issues property and casualty insurance policies and sells home warranty products. Property and Casualty Insurance: The 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 issues policies in 46 states. In certain markets, the company also offers preferred risk auto insurance to compete with other carriers offering bundled home and auto insurance. The company markets property and casualty insurance business using both direct distribution channels, including cross-selling through existing closing-service activities, and through a network of independent brokers. Home Warranties: 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. First year warranties primarily are marketed through real estate brokers and agents, and the company also markets directly to consumers. The company sells renewals directly to consumers. The Home warranty business operates in 39 states and the District of Columbia. Regulations The company’s primary title insurance underwriter is a Nebraska corporation and, accordingly, is primarily regulated by the Nebraska Department of Insurance. The company’s foreign insurance subsidiaries are regulated primarily by regulatory authorities in the regions, provinces and/or countries in which they operate and secondarily be regulated by the domestic regulator of First American Title Insurance Company as a part of the First American insurance holding company system. The company’s federal savings bank is regulated by the Office of the Comptroller of the Currency, with the Federal Reserve Board supervising its parent holding company, and is subject to regulation by the Federal Deposit Insurance Corporation.
first american financial
(FAF:New York Consolidated)
1 First American Way
Santa Ana, CA 92707
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