Q3 2024 First American Financial Corp Earnings Call Transcript
Key Points
- First American Financial Corp (FAF) reported a 4% increase in adjusted revenue, marking the first year-over-year growth since Q2 2022.
- The commercial division saw a 19% increase in revenues, driven by an 80% increase in large transactions.
- Close refinance orders increased by 12%, resulting in a 20% rise in refinance revenue.
- The company expects to generate approximately $67 million of additional interest income per year from its investment portfolio rebalancing project.
- First American Financial Corp (FAF) has repurchased 10 million shares since 2022, returning $574 million to shareholders and increasing the common stock dividend by 6%.
- Close purchase orders per day declined by 2% compared to the previous year due to persistent affordability challenges.
- The Home Warranty segment's adjusted pre-tax margin decreased to 7.7% from 9.3% last year.
- Title segment investment income declined compared to the previous year, despite sequential growth.
- The company reported a GAAP loss of $1 per diluted share due to net realized investment losses of $312 million from rebalancing the investment portfolio.
- Challenging conditions in the purchase market are expected to persist, with open purchase orders down 3% in the first three weeks of October.
Greetings, and welcome to First American Financial Corporation third quarter earnings conference call. (Operator Instructions)
A copy of today's press release is available on First American's website at www.firstam.com/investor. Please note that this call is being recorded and we will -- available for replay from the company's investor website and for a short time by dialing (877) 660-6853 or (201) 612-7415, and enter the conference ID 13749447.
We will now turn the call over to Craig Barberio, Vice President, Investor Relations, to make an introductory statement. Please go ahead.
Good morning, everyone, and welcome to First American's Earnings conference call for the third quarter of 2024. Joining us today on the call will be our Chief Executive Officer, Ken DeGiorgio, and Mark Seaton, Executive Vice President and Chief Financial Officer.
Certain statements made today may contain forward
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