Condensed Financial Statements (Parent Company)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II

1 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED BALANCE SHEETS

(in millions, except par values)

	December 31,
	2022			2021
Assets
Cash and cash equivalents	$	597		$	925
Due from subsidiaries, net		10			79
Income taxes receivable		22			11
Investment in subsidiaries		5,908			6,862
Equity securities		15			206
Deferred income taxes		54			14
Other assets		118			137
	$	6,724		$	8,234
Liabilities and Equity
Accounts payable and other accrued liabilities	$	36		$	30
Pension costs and other retirement plans		333			416
Income taxes payable		10			24
Deferred income taxes		19			345
Notes and contracts payable		1,638			1,636
		2,036			2,451
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized—0.5 shares;    Outstanding—none		—			—
Common stock, $0.00001 par value; Authorized—300.0 shares;
Outstanding—103.2 shares and 109.7 shares		—			—
Additional paid-in capital		1,812			2,179
Retained earnings		3,721			3,680
Accumulated other comprehensive loss		(868	)		(92	)
Total stockholders’ equity		4,665			5,767
Noncontrolling interests		23			16
Total equity		4,688			5,783
	$	6,724		$	8,234

See Notes to Condensed Financial Statements

SCHEDULE II

2 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF INCOME

(in millions)

	Year Ended December 31,
	2022			2021		2020
Revenues:
Dividends from subsidiaries	$	733		$	622	$	604
Other (losses) income		(23	)		19		14
Net investment (losses) gains		(192	)		121		7
		518			762		625
Expenses:
Other expenses		55			84		69
Income before income taxes and equity in undistributed earnings of    subsidiaries		463			678		556
Income taxes		86			162		134
Equity in undistributed (losses) earnings of subsidiaries		(112	)		733		278
Net income		265			1,249		700
Less: Net income attributable to noncontrolling interests		2			8		4
Net income attributable to the Company	$	263		$	1,241	$	696

See Notes to Condensed Financial Statements

SCHEDULE II

3 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	Year Ended December 31,
	2022			2021			2020
Net income	$	265		$	1,249		$	700
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on securities		(781	)		(143	)		88
Foreign currency translation adjustment		(42	)		(1	)		14
Pension benefit adjustment		47			12			(21	)
Total other comprehensive (loss) income, net of tax		(776	)		(132	)		81
Comprehensive (loss) income		(511	)		1,117			781
Less: Comprehensive income attributable to noncontrolling interests		2			8			4
Comprehensive (loss) income attributable to the Company	$	(513	)	$	1,109		$	777

See Notes to Condensed Financial Statements

SCHEDULE II

4 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF CASH FLOWS

(in millions)

	Year Ended December 31,
	2022			2021			2020
Cash flows from operating activities:
Cash provided by operating activities	$	779		$	641		$	600
Cash flows from investing activities:
Net cash effect of acquisitions		(296	)		—			—
Net payments to subsidiaries		(155	)		(259	)		(668	)
Purchases of equity securities		—			—			(19	)
Proceeds from sales of property and equipment		—			—			7
Cash used for investing activities		(451	)		(259	)		(680	)
Cash flows from financing activities:
Net proceeds from issuance of unsecured senior notes		—			642			444
Borrowings under unsecured credit facility		—			—			120
Repayments of borrowings under unsecured credit facility		—			—			(280	)
Net proceeds (payments) in connection with share-based    compensation		2			6			(1	)
Repurchases of Company shares		(441	)		(99	)		(139	)
Payments of cash dividends		(217	)		(213	)		(199	)
Cash (used for) provided by financing activities		(656	)		336			(55	)
Net (decrease) increase in cash and cash equivalents		(328	)		718			(135	)
Cash and cash equivalents—Beginning of period		925			207			342
Cash and cash equivalents—End of period	$	597		$	925		$	207

See Notes to Condensed Financial Statements

SCHEDULE II

5 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1. Description of the Company:

First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company financial statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K.

NOTE 2. Dividends Received:

The holding company received cash dividends from subsidiaries of $731 million, $624 million and $574 million for the years ended December 31, 2022, 2021 and 2020, respectively.