Condensed Financial Statements (Parent Company)

12 Months Ended

Dec. 31, 2023

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,
	2023			2022
Assets
Cash and cash equivalents	$	179.3		$	597.2
Dividends receivable		10.0			—
Due from subsidiaries, net		58.2			10.3
Income taxes receivable		75.7			22.0
Investment in subsidiaries		6,152.6			5,908.3
Equity securities		52.5			14.8
Deferred income taxes		50.1			54.5
Other assets		144.0			116.6
	$	6,722.4		$	6,723.7
Liabilities and Equity
Accounts payable and other accrued liabilities	$	35.3		$	35.9
Pension costs and other retirement plans		355.1			342.3
Income taxes payable		15.9			10.0
Deferred income taxes		63.6			16.3
Notes and contracts payable		1,389.7			1,638.0
		1,859.6			2,042.5
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—103.1 shares and 103.2 shares		—			—
Additional paid-in capital		1,793.3			1,812.4
Retained earnings		3,710.6			3,714.3
Accumulated other comprehensive loss		(655.8	)		(868.9	)
Total stockholders’ equity		4,848.1			4,657.8
Noncontrolling interests		14.7			23.4
Total equity		4,862.8			4,681.2
	$	6,722.4		$	6,723.7

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,
	2023			2022			2021
Revenues:
Dividends from subsidiaries	$	411.3		$	732.7		$	621.6
Other income (loss)		22.5			(22.2	)		19.5
Net investment gains (losses)		12.5			(192.4	)		120.7
		446.3			518.1			761.8
Expenses:
Other expenses		97.8			55.1			83.7
Income before income taxes and equity in undistributed earnings of    subsidiaries		348.5			463.0			678.1
Income taxes		74.8			86.0			162.1
Equity in undistributed (losses) earnings of subsidiaries		(58.2	)		(111.7	)		733.1
Net income		215.5			265.3			1,249.1
Less: Net (loss) income attributable to noncontrolling interests		(1.3	)		2.3			8.0
Net income attributable to the Company	$	216.8		$	263.0		$	1,241.1

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,
	2023			2022			2021
Net income	$	215.5		$	265.3		$	1,249.1
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities		198.0			(780.9	)		(142.1	)
Unrealized losses on debt securities for which credit-related      portion was recognized in earnings		—			—			(0.4	)
Foreign currency translation adjustment		17.2			(42.2	)		(1.9	)
Pension benefit adjustment		(2.1	)		46.6			12.4
Total other comprehensive income (loss), net of tax		213.1			(776.5	)		(132.0	)
Comprehensive income (loss)		428.6			(511.2	)		1,117.1
Less: Comprehensive (loss) income attributable to noncontrolling interests		(1.3	)		2.3			8.0
Comprehensive income (loss) attributable to the Company	$	429.9		$	(513.5	)	$	1,109.1

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,
	2023			2022			2021
Cash flows from operating activities:
Cash provided by operating activities	$	309.0		$	778.7		$	641.4
Cash flows from investing activities:
Acquisitions/dispositions, net of cash acquired/divested		(2.5	)		(296.0	)		—
Net payments to subsidiaries		(160.8	)		(154.6	)		(259.5	)
Purchases of equity securities		(25.0	)		—			—
Cash used for investing activities		(188.3	)		(450.6	)		(259.5	)
Cash flows from financing activities:
Net proceeds from issuance of unsecured senior notes		—			—			641.9
Repayment of senior unsecured notes		(250.0	)		—			—
Net activity related to noncontrolling interests		0.3			—			—
Net proceeds in connection with share-based    compensation		0.4			2.5			6.3
Repurchases of Company shares		(72.7	)		(440.7	)		(99.2	)
Payments of cash dividends		(216.6	)		(217.5	)		(213.0	)
Cash (used for) provided by financing activities		(538.6	)		(655.7	)		336.0
Net (decrease) increase in cash and cash equivalents		(417.9	)		(327.6	)		717.9
Cash and cash equivalents—Beginning of period		597.2			924.8			206.9
Cash and cash equivalents—End of period	$	179.3		$	597.2		$	924.8

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 $355.6 million, $731.0 million and $624.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.