First American Reports Second Quarter 2026 Results
July 23, 2026
First American Financial Corp. reported its title insurance and services segment generated $315.9 million in pretax income during the second quarter of 2026. This compared to $216.7 million in pretax income during the same period a year ago.
"Our results were driven by our commercial business, which is on pace for a record year in 2026,” said Mark Seaton, CEO at First American. “In addition, investment income in our title segment grew 11%, despite a decline in the federal funds rate. Our adjusted pretax title margin was 14% for the quarter, a strong result given continued weakness in the residential market.”
During the second quarter of 2026, First American opened 188,200 direct title orders and closed 137,300 direct title orders. This compared to 186,907 opened direct title orders and 138,324 closed direct title orders.
According to First American, its average revenue per direct title order rose to $4,572, primarily due to an increase in the average revenue per order for commercial transactions. Results were partially offset by a shift in the mix to lower premium refinance transactions.
First American paid $61.9 million in claims during the second quarter of 2026. This is up from $47.3 million in claims paid compared to the same period a year ago. The company’s provision for policy losses and other claims was $45 million in the second quarter, or 3% of title premiums and escrow fee. This is unchanged from the prior year. The second quarter rate reflects an ultimate loss rate of 3.75% for the current policy year and a net decrease of $11 million in the loss reserve estimate for prior policy years.
Looking ahead, Seaton said First American is focused on leveraging AI across its business.
“We are integrating this technology into our workflows to enhance our employees' effectiveness, deliver a better experience for customers and improve the way we operate,” he said. “As these capabilities evolve, we will continue investing in our people, platforms and products to drive innovation and reinforce our leadership in the markets we serve."
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