Associate Commercial Underwriting Counsel

First American Financial (FAF) dropped, what is drawing attention now? September 05, 2026 First American Financial stock snapshot after recent trading moves. First American Financial (FAF) has drawn fresh attention after recent trading saw the stock close at $72.75, with returns mixed over different periods and the past 3 months showing a gain of 8.5%. For investors tracking momentum, the stock is down 4.9% over the past day and 3% over the past week, and it has declined about 3% over the past month. Even with this shorter term softness, First American Financial shows a year to date total return of 19.1% and a 1 year total return of 12.2%. Looking further back, the 3 year total return sits at 32.8%, while the 5 year total return is 27.3%. These figures frame how the latest pullback fits within a longer record of compounding results for shareholders who stayed invested. At a market value of about US$7.8b and with reported revenue of US$7,983.9m and net income of US$745.1m, First American Financial operates at a scale that often matters for liquidity and analyst coverage. The company carries a value score of 3, which some investors may treat as an initial reference point when comparing it with other financial stocks. Those same investors might also notice the reported intrinsic discount figure of 7.98, even though the methodology behind that estimate is not detailed here. Instead of treating it as a precise fair value, it can serve as one input when you weigh current pricing against your own expectations for the business. First American Financial's operations are largely driven by its Title Insurance and Services segment, which contributes US$7,517.3m of revenue. Home warranty activities add another US$448.5m, while corporate and eliminations account for the remaining lines. This concentration in title related services means the company's fortunes are closely linked to real estate transaction volumes and related activity. Within the Title Insurance and Services unit, the company issues title insurance on residential and commercial properties and provides escrow, closing, appraisal, and various risk mitigation products. These services support real estate transactions in the United States and internationally, including markets such as Canada, the United Kingdom, Australia, New Zealand, and South Korea. The Home Warranty segment provides residential service contracts that cover systems like heating and air conditioning, along with various household appliances, against failures tied to normal usage during the coverage period. This business operates across many U.S. states and adds a different revenue stream that is not directly tied to property transactions in the same way as title insurance. On the income side, reported annual revenue growth of 3.8% and net income growth of 0.2% indicate a modest difference between top line expansion and bottom line progression. For readers assessing the stock after the recent price moves, these figures help anchor expectations about how business activity has translated into earnings. Because the latest trading action has come after a period of positive multi year total returns, some investors may view the recent pullback as an opportunity to revisit their assumptions. Others may focus more on how stable or variable the revenue and earnings streams could be in different real estate and housing conditions. * Short term action shows the stock down over the day, week, and month. * Multi year total returns remain positive over 1, 3, and 5 year periods. * Operations are heavily centered on title insurance and related real estate services. * Home warranty contracts provide an additional, more service based revenue line. For anyone considering whether the latest price level around US$72.75 aligns with their own view of First American Financial, the key questions often come back to how durable the title insurance and home warranty earnings appear and how comfortable they are with exposure to real estate transaction activity. Recent trading has seen some momentum cool, with the share price down over the past week and month even as the year to date share price return remains firmly positive and longer term total shareholder returns have been in positive territory. At around US$72.75, that softer short term share price move can signal investors reassessing expectations for how First American Financial's title insurance and home warranty earnings might track against real estate activity, business mix and the current valuation context. Compare the recent pullback in First American Financial with other insurers that have resilient balance sheets and cash flows by scanning our hand picked list of solid balance sheet and fundamentals (52 results). After this recent pullback and a share price around US$72.75, the balance between real estate sensitive risks and multi year returns looks more finely poised. Does the current valuation still reward new buyers for taking that exposure? At a last close of $72.75 versus a narrative fair value of $86.20, the most widely followed view sees upside that current trading does not reflect. The anticipated normalization and eventual rebound in U.S. home purchase volumes driven by demographic tailwinds as Millennials and Gen Z enter prime homebuying years positions First American to benefit from increased transaction activity, underpinning future revenue growth and operating leverage. Want to see how that demand story is built into the numbers for First American Financial? The narrative leans on steady revenue expansion, firm margins and a higher future earnings multiple. Curious which specific assumptions have to hold to support an $86.20 fair value tag? Result: Fair Value of $86.20 (UNDERVALUED) However, that upside narrative for First American Financial still runs into real risks if residential purchase activity stays weak or if title waiver programs gain traction and undercut volumes. Another view on First American Financial's valuation. The SWS DCF model takes a very different angle on First American Financial. On this view, the current share price of $72.75 is well above an estimated future cash flow value of $8.10, which points to an overvalued result rather than the 15.6% undervalued narrative fair value. Which set of assumptions feels more realistic to you right now? For readers who want to see how those cash flow assumptions stack up over time, and how sensitive they are to different scenarios, Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out First American Financial for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next steps. If this mix of views on First American Financial leaves you curious, act while the data is fresh and carefully evaluate the optimistic case for its 4 key rewards. Looking for more investment ideas beyond First American Financial? Do not stop with First American Financial. Use the Simply Wall Street Screener to quickly uncover fresh stocks that might better match your goals and risk comfort. * Explore potential upside by scanning companies that combine attractive pricing with quality fundamentals through the 47 high quality undervalued stocks. * Strengthen your income stream by focusing on businesses offering higher yields and resilient payouts using the 11 dividend fortresses. * Prioritise capital protection by concentrating on companies with lower risk profiles using the 82 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. New: AI Stock Screener & alerts. Our new AI Stock Screener scans the market every day to uncover opportunities. - Dividend Powerhouses (3%+ Yield) - Undervalued Small Caps with Insider Buying - High growth Tech and AI Companies Or build your own from over 50 metrics. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

First American Title president Sally French Tyler named a HousingWire Vanguard Award winner for the second time. Tyler recognized for stellar people-focused leadership, delivering outstanding business results and commitment to innovation and empowering women September 1, 2026, Santa Ana, Calif. First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement, and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced that Sally French Tyler, president of First American Title Insurance Company, was named a winner of HousingWire's 2026 Vanguard Award. Tyler joins an exclusive group of two-time winners of the award, as she was previously recognized in 2024. The HousingWire Vanguard Award recognizes C-level industry leaders within housing and mortgage finance whose leadership moves markets forward each and every day. HousingWire Vanguard Award winners are selected by a panel of editors and reporters for their vital contributions to their companies and their transformations of the mortgage and real estate industries. "Sally is an extraordinary leader with an ability to drive growth, while never losing sight of the people and customers that power the business," said Mark Seaton, CEO of First American. "She's spent her career building up the next generation of leaders, and that combination of business results and genuine investment in people is exactly what makes her, and First American, stronger." As president of First American Title, Tyler oversees the company's entire title business across its direct, agency, and commercial operations. Over the past year, Tyler led the business to its strongest financial performance in years. First American's Title Insurance and Services segment posted revenue up 22 percent in 2025, and commercial revenue reached $1.0 billion for the year, up 32 percent, before setting a first-quarter record in 2026, up 48 percent year over year. "The 2026 HousingWire Vanguards represent the leadership our industry needs for this moment," said Sarah Wheeler, editor-in-chief of HousingWire. "They are navigating disruption with clarity, bringing bold ideas to the table and executing strategies that create real results. Their influence extends beyond their own organizations, helping move the entire housing ecosystem toward a stronger and more innovative future." Tyler, who recently announced she will retire at the end of the year, previously led the company's direct residential and commercial title operations, and before that, spent 15 years at the helm of First American Title's National Commercial Services division, more than doubling its operating revenue and growing it into one of the largest commercial title and settlement operations in the country. She also helped bring a significant consumer-protection innovation to market this year, leading the launch of a free property title monitoring and fraud alert service that pairs proactive monitoring of new property filings with a title insurance policy's protection. In addition to her business contributions to First American, Tyler strongly supports the company's people-first culture. After becoming the first woman to reach the executive vice president level in the company's history, she co-founded the company's Women in Leadership initiative, which 90 women have graduated from since its launch. She also serves on the boards of First Canadian Title Insurance Company, Commercial Real Estate Women (CREW) Network, the CREW Foundation, and the Real Estate Group of Atlanta, and she formerly served on the board of MISMO. About First American Title Insurance Company. First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. First American Title provides comprehensive title insurance coverage and professional services for real estate purchases, construction, refinances and equity loans. For more information, visit www.firstam.com/title. About First American. First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work(R) and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com. Search news. Beginning Date Ending Date

First American Financial Corporation's Home Warranty business generated $113.8 million in revenues during the second quarter of 2026, up 3% year over year, with pretax income rising 9% to $24.2 million. The pretax margin improved to 21.3% from 20.2%. The segment provides recurring revenues from customers seeking protection against home-system and appliance repair costs, offering a more stable earnings stream than the company's transaction-sensitive title insurance operations. The claim loss rate declined to 40% from 41%, driven by lower claim frequency despite higher claim severity. Home Warranty strengthens First American's business diversification beyond real-estate transactions. Renewal-based warranty policies provide predictable revenue between property transaction cycles, helping offset volatility in the title business and supporting sustainable long-term profitability.