SCHEDULE II

1 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED BALANCE SHEETS

(in thousands, except par values)

	December 31,
	2015			2014
Assets
Cash and cash equivalents	$	289,791		$	328,949
Due from subsidiaries, net		21,430			—
Income taxes receivable		1,067			5,547
Investment in subsidiaries		3,492,290			3,333,613
Deferred income taxes		22,020			19,712
Other assets		96,683			105,344
	$	3,923,281		$	3,793,165
Liabilities and Equity
Accounts payable and other accrued liabilities	$	58,483		$	55,021
Pension costs and other retirement plans		413,206			451,501
Income taxes payable		7,576			6,228
Due to subsidiaries, net		—			77
Deferred income taxes		133,097			95,128
Notes and contracts payable		549,254			549,166
Notes and contracts payable to subsidiaries		—			60,000
		1,161,616			1,217,121
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none		—			—
Common stock, $0.00001 par value; Authorized—300,000 shares;
Outstanding—109,098 shares and 107,541 shares		1			1
Additional paid-in capital		2,150,813			2,109,712
Retained earnings		846,691			662,310
Accumulated other comprehensive loss		(239,003	)		(199,106	)
Total stockholders’ equity		2,758,502			2,572,917
Noncontrolling interests		3,163			3,127
Total equity		2,761,665			2,576,044
	$	3,923,281		$	3,793,165

See notes to condensed financial statements

SCHEDULE II

2 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF INCOME

(in thousands)

	Year Ended December 31,
	2015			2014		2013
Revenues
Dividends from subsidiaries	$	142,522		$	342,488	$	372,996
Other (losses) income		(6,001	)		6,412		12,804
		136,521			348,900		385,800
Expenses
Other expenses		36,233			33,959		36,184
Income before income taxes and equity in undistributed earnings (losses) of subsidiaries		100,288			314,941		349,616
Income taxes		33,346			104,523		139,127
Equity in undistributed earnings (losses) of subsidiaries		221,928			23,797		(23,425	)
Net income		288,870			234,215		187,064
Less: Net income attributable to noncontrolling interests		784			681		697
Net income attributable to the Company	$	288,086		$	233,534	$	186,367

See notes to condensed financial statements

SCHEDULE II

3 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Year Ended December 31,
	2015			2014			2013
Net income	$	288,870		$	234,215		$	187,064
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on securities		(27,312	)		19,638			(30,665	)
Foreign currency translation adjustment		(36,822	)		(16,694	)		(13,650	)
Pension benefit adjustment		24,223			(56,496	)		49,324
Total other comprehensive income (loss), net of tax		(39,911	)		(53,552	)		5,009
Comprehensive income		248,959			180,663			192,073
Less: Comprehensive income attributable to noncontrolling interests		770			691			694
Comprehensive income attributable to the Company	$	248,189		$	179,972		$	191,379

See notes to condensed financial statements

SCHEDULE II

4 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2015			2014			2013
Cash flows from operating activities:
Cash provided by operating activities	$	133,022		$	54,298		$	71,326
Cash flows from investing activities:
Net cash effect of acquisitions		(19,069	)		(151,570	)		—
Contributions to subsidiaries		—			(11,396	)		(800	)
Net change in other investments		867			1,490			6,549
Capital expenditures		(22	)		—			—
Cash (used for) provided by investing activities		(18,224	)		(161,476	)		5,749
Cash flows from financing activities:
Net proceeds from issuance of debt		—			593,943			249,095
Repayment of debt		—			(300,000	)		(160,000	)
Repayment of debt to subsidiaries		(60,000	)		—			—
Excess tax benefits from share-based compensation		9,526			6,856			6,202
Net proceeds in connection with share-based compensation plans		5,042			3,601			1,736
Purchase of Company shares		—			—			(64,606	)
Cash dividends		(108,524	)		(89,939	)		(51,324	)
Cash (used for) provided by financing activities		(153,956	)		214,461			(18,897	)
Net (decrease) increase in cash and cash equivalents		(39,158	)		107,283			58,178
Cash and cash equivalents—Beginning of period		328,949			221,666			163,488
Cash and cash equivalents—End of period	$	289,791		$	328,949		$	221,666

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 $142.5 million, $79.1 million and $125.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.