First American Financial Corp Segments Disclosure
NOTE 22. Segment Financial Information:
For the title insurance and services segment and the home warranty segment, the Company's chief operating decision maker, who is its , uses revenue and pretax margin to assess performance, allocate resources and determine compensation for certain employees. For the corporate segment, the performance of investments in venture-stage companies is primarily used to assess performance and allocate resources to the segment.
The Accounting policies for the Company's are the same as those described in Note 1. Basis of Presentation and Significant Accounting Policies.
Information about reportable segment performance, significant expenses and assets for the years ended December 31, 2025, 2024 and 2023, are as follows:
Year Ended December 31, 2025 |
|
Title Insurance and Services |
|
|
Home Warranty |
|
|
Corporate |
|
|
Consolidated |
|
||||
|
|
(dollars in millions) |
|
|||||||||||||
Total segment revenue (1) |
|
$ |
6,977.7 |
|
|
$ |
442.9 |
|
|
$ |
31.7 |
|
|
$ |
7,452.3 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
|
(0.1 |
) |
|||
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
$ |
7,452.2 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Personnel costs |
|
|
2,131.4 |
|
|
|
84.1 |
|
|
|
44.4 |
|
|
|
2,259.9 |
|
Premiums retained by agents |
|
|
2,374.0 |
|
|
|
— |
|
|
|
— |
|
|
|
2,374.0 |
|
Other operating expenses (3) |
|
|
1,081.7 |
|
|
|
90.4 |
|
|
|
38.5 |
|
|
|
1,210.6 |
|
Provision for policy losses |
|
|
159.2 |
|
|
|
171.9 |
|
|
|
(4.4 |
) |
|
|
326.7 |
|
Depreciation and amortization |
|
|
210.8 |
|
|
|
5.3 |
|
|
|
0.1 |
|
|
|
216.2 |
|
Premium taxes |
|
|
77.0 |
|
|
|
4.7 |
|
|
|
— |
|
|
|
81.7 |
|
Interest |
|
|
96.2 |
|
|
|
— |
|
|
|
60.8 |
|
|
|
157.0 |
|
Segment income (loss) before income taxes |
|
$ |
847.4 |
|
|
$ |
86.5 |
|
|
$ |
(107.7 |
) |
|
$ |
826.1 |
|
Elimination of intersegment expenses |
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|||
Consolidated income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
826.2 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
|
12.1 |
% |
|
|
19.5 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment assets |
|
$ |
15,287.9 |
|
|
$ |
395.3 |
|
|
$ |
911.9 |
|
|
$ |
16,595.1 |
|
Elimination of intersegment assets (4) |
|
|
|
|
|
|
|
|
|
|
|
(366.3 |
) |
|||
Consolidated total assets |
|
|
|
|
|
|
|
|
|
|
$ |
16,228.8 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment capital expenditures |
|
$ |
186.0 |
|
|
$ |
6.4 |
|
|
$ |
— |
|
|
$ |
192.4 |
|
Title insurance and services - title and data search expenses, office and occupancy expenses and software expense.
Home warranty - advertising expense, office and occupancy expenses, software expense, delivery and storage expenses.
Corporate - employee benefit expense and certain overhead expenses.
Holding company cash balances also included in the title insurance and services segment |
|
$ |
(366.3 |
) |
Year Ended December 31, 2024 |
|
Title Insurance and Services |
|
|
Home Warranty |
|
|
Corporate |
|
|
Consolidated |
|
||||
|
|
(dollars in millions) |
|
|||||||||||||
Total segment revenue (1) |
|
$ |
5,737.3 |
|
|
$ |
425.7 |
|
|
$ |
(33.4 |
) |
|
$ |
6,129.6 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
|
(1.5 |
) |
|||
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
$ |
6,128.1 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Personnel costs |
|
|
1,953.2 |
|
|
|
81.2 |
|
|
|
24.9 |
|
|
|
2,059.3 |
|
Premiums retained by agents |
|
|
2,044.6 |
|
|
|
— |
|
|
|
— |
|
|
|
2,044.6 |
|
Other operating expenses (3) |
|
|
992.5 |
|
|
|
86.0 |
|
|
|
35.2 |
|
|
|
1,113.7 |
|
Provision for policy losses |
|
|
138.3 |
|
|
|
184.4 |
|
|
|
(2.7 |
) |
|
|
320.0 |
|
Depreciation and amortization |
|
|
202.2 |
|
|
|
5.1 |
|
|
|
0.1 |
|
|
|
207.4 |
|
Premium taxes |
|
|
63.7 |
|
|
|
4.6 |
|
|
|
— |
|
|
|
68.3 |
|
Interest |
|
|
96.6 |
|
|
|
— |
|
|
|
54.3 |
|
|
|
150.9 |
|
Segment income (loss) before income taxes |
|
$ |
246.2 |
|
|
$ |
64.4 |
|
|
$ |
(145.2 |
) |
|
$ |
163.9 |
|
Elimination of intersegment expenses |
|
|
|
|
|
|
|
|
|
|
|
1.5 |
|
|||
Consolidated income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
165.4 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
|
4.3 |
% |
|
|
15.1 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment assets |
|
$ |
13,989.6 |
|
|
$ |
370.4 |
|
|
$ |
754.6 |
|
|
$ |
15,114.6 |
|
Elimination of intersegment assets (4) |
|
|
|
|
|
|
|
|
|
|
|
(206.0 |
) |
|||
Consolidated total assets |
|
|
|
|
|
|
|
|
|
|
$ |
14,908.6 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment capital expenditures |
|
$ |
229.3 |
|
|
$ |
5.9 |
|
|
$ |
— |
|
|
$ |
235.2 |
|
Title insurance and services - title and data search expenses, office and occupancy expenses and software expense.
Home warranty - advertising expense, office and occupancy expenses, software expense, delivery and storage expenses.
Corporate - employee benefit expense and certain overhead expenses.
Holding company cash balances also included in the title insurance and services segment |
|
$ |
(206.0 |
) |
Year Ended December 31, 2023 |
|
Title Insurance and Services |
|
|
Home Warranty |
|
|
Corporate |
|
|
Consolidated |
|
||||
|
|
(dollars in millions) |
|
|||||||||||||
Total segment revenue (1) |
|
$ |
5,724.8 |
|
|
$ |
417.2 |
|
|
$ |
(137.2 |
) |
|
$ |
6,004.8 |
|
Elimination of intersegment revenue |
|
|
|
|
|
|
|
|
|
|
|
(1.3 |
) |
|||
Total consolidated revenue |
|
|
|
|
|
|
|
|
|
|
$ |
6,003.5 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Personnel costs |
|
|
1,876.0 |
|
|
|
77.8 |
|
|
|
35.3 |
|
|
|
1,989.1 |
|
Premiums retained by agents |
|
|
1,952.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1,952.2 |
|
Other operating expenses (3) |
|
|
937.7 |
|
|
|
82.8 |
|
|
|
46.5 |
|
|
|
1,067.0 |
|
Provision for policy losses |
|
|
139.9 |
|
|
|
193.1 |
|
|
|
3.3 |
|
|
|
336.3 |
|
Depreciation and amortization |
|
|
183.6 |
|
|
|
4.8 |
|
|
|
0.1 |
|
|
|
188.5 |
|
Premium taxes |
|
|
59.1 |
|
|
|
4.4 |
|
|
|
— |
|
|
|
63.5 |
|
Interest |
|
|
82.3 |
|
|
|
— |
|
|
|
51.4 |
|
|
|
133.7 |
|
Segment income (loss) before income taxes |
|
$ |
494.0 |
|
|
$ |
54.3 |
|
|
$ |
(273.8 |
) |
|
$ |
273.2 |
|
Elimination of intersegment expenses |
|
|
|
|
|
|
|
|
|
|
|
1.2 |
|
|||
Consolidated income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
274.4 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pretax margin |
|
|
8.6 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment assets |
|
$ |
15,768.2 |
|
|
$ |
351.9 |
|
|
$ |
832.5 |
|
|
$ |
16,952.6 |
|
Elimination of intersegment assets (4) |
|
|
|
|
|
|
|
|
|
|
|
(149.8 |
) |
|||
Consolidated total assets |
|
|
|
|
|
|
|
|
|
|
$ |
16,802.8 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment capital expenditures |
|
$ |
271.1 |
|
|
$ |
7.6 |
|
|
$ |
— |
|
|
$ |
278.7 |
|
Title insurance and services - title and data search expenses, office and occupancy expenses and software expense.
Home warranty - advertising expense, office and occupancy expenses, software expense, delivery and storage expenses.
Corporate - employee benefit expense and certain overhead expenses.
Holding company cash balances also included in the title insurance segment and services segment |
|
$ |
(94.8 |
) |
Holding company dividend receivable from a subsidiary within the title insurance and services segment |
|
|
(10.0 |
) |
Holding company receivable from a subsidiary within the title insurance and services segment |
|
|
(45.0 |
) |
|
|
$ |
(149.8 |
) |
Information about the Company’s revenues, by segment, for the years ended December 31, 2025, 2024 and 2023, is as follows:
|
|
Direct premiums and escrow fees |
|
|
Agent |
|
|
Information |
|
|
Net investment income |
|
|
Net investment |
|
|
Total |
|
||||||
|
|
(in millions) |
|
|||||||||||||||||||||
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Title Insurance and Services |
|
$ |
2,347.5 |
|
|
$ |
2,959.4 |
|
|
$ |
1,050.5 |
|
|
$ |
594.8 |
|
|
$ |
25.5 |
|
|
$ |
6,977.7 |
|
Home Warranty |
|
|
415.2 |
|
|
|
— |
|
|
|
23.0 |
|
|
|
5.0 |
|
|
|
(0.3 |
) |
|
|
442.9 |
|
Corporate and Eliminations |
|
|
— |
|
|
|
— |
|
|
|
14.7 |
|
|
|
21.2 |
|
|
|
(4.3 |
) |
|
|
31.6 |
|
|
|
$ |
2,762.7 |
|
|
$ |
2,959.4 |
|
|
$ |
1,088.2 |
|
|
$ |
621.0 |
|
|
$ |
20.9 |
|
|
$ |
7,452.2 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Title Insurance and Services |
|
$ |
2,048.3 |
|
|
$ |
2,561.9 |
|
|
$ |
938.2 |
|
|
$ |
534.3 |
|
|
$ |
(345.4 |
) |
|
$ |
5,737.3 |
|
Home Warranty |
|
|
397.8 |
|
|
|
— |
|
|
|
22.5 |
|
|
|
4.0 |
|
|
|
1.4 |
|
|
|
425.7 |
|
Corporate and Eliminations |
|
|
(0.1 |
) |
|
|
— |
|
|
|
0.1 |
|
|
|
22.7 |
|
|
|
(57.6 |
) |
|
|
(34.9 |
) |
|
|
$ |
2,446.0 |
|
|
$ |
2,561.9 |
|
|
$ |
960.8 |
|
|
$ |
561.0 |
|
|
$ |
(401.6 |
) |
|
$ |
6,128.1 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Title Insurance and Services |
|
$ |
1,856.4 |
|
|
$ |
2,449.3 |
|
|
$ |
917.1 |
|
|
$ |
540.2 |
|
|
$ |
(38.2 |
) |
|
$ |
5,724.8 |
|
Home Warranty |
|
|
395.6 |
|
|
|
— |
|
|
|
21.7 |
|
|
|
5.9 |
|
|
|
(6.0 |
) |
|
|
417.2 |
|
Corporate and Eliminations |
|
|
0.1 |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
23.9 |
|
|
|
(162.2 |
) |
|
|
(138.5 |
) |
|
|
$ |
2,252.1 |
|
|
$ |
2,449.3 |
|
|
$ |
938.5 |
|
|
$ |
570.0 |
|
|
$ |
(206.4 |
) |
|
$ |
6,003.5 |
|
The Company’s title insurance and services segment offers title insurance, closing services and similar or related products and services both domestically and internationally. The operations of the Company’s home warranty and corporate segments are entirely domestic.
Domestic and foreign revenues from external customers for the title insurance and services segment are as follows:
|
|
Year Ended December 31, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||
|
|
Domestic |
|
|
Foreign |
|
|
Domestic |
|
|
Foreign |
|
|
Domestic |
|
|
Foreign |
|
||||||
|
|
(in millions) |
|
|||||||||||||||||||||
Revenues |
|
$ |
6,450.3 |
|
|
$ |
527.5 |
|
|
$ |
5,314.6 |
|
|
$ |
421.4 |
|
|
$ |
5,351.6 |
|
|
$ |
372.2 |
|
Domestic and foreign long-lived assets for the title insurance and services segment are as follows:
|
|
December 31, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||
|
|
Domestic |
|
|
Foreign |
|
|
Domestic |
|
|
Foreign |
|
|
Domestic |
|
|
Foreign |
|
||||||
|
|
(in millions) |
|
|||||||||||||||||||||
Long-lived assets |
|
$ |
950.5 |
|
|
$ |
52.5 |
|
|
$ |
961.5 |
|
|
$ |
55.5 |
|
|
$ |
977.2 |
|
|
$ |
53.0 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.