First American Financial Corporation (FAF Quick QuoteFAF - Free Report) reported first-quarter 2026 operating earnings of $1.33 per share, which beat the Zacks Consensus Estimate by 25.4% and rose 58.3% year over year.

Operating revenues climbed 16.2% to $1.8 billion, driven by growth in direct premiums, escrow fees, and Information and other revenues. The top line surpassed the consensus estimate by 1.08%.

The quarterly results were supported by robust growth in its Title segment, particularly commercial business, alongside increased average revenue per order and higher investment income. These gains were partly offset by elevated operating expenses.

What’s Behind the Headlines for FAF?

Direct premiums and escrow fees reached $660.2 million, marking a 17.7% increase from the prior-year level. The figure exceeded the Zacks Consensus Estimate by 17.7% and our model estimate by 17.7%.

First American Financial Corporation Price, Consensus and EPS Surprise

First American Financial Corporation price-consensus-eps-surprise-chart | First American Financial Corporation Quote

Investment income totaled $152.4 million in the first quarter, up 13% year over year, driven by a 12% increase in Title segment investment income, partially offset by losses at the corporate level. The figure was below our estimate and the Zacks Consensus Estimate of $155.2 million.

Expenses increased 12.8% to $1.6 billion, caused by higher interest expense, agent premiums, personal costs and other operating expenses. The figure was on par with our estimate of $1.6 billion.

FAF’s Segmental Results

Title Insurance and Services: Total revenues rose 16.7% year over year to $1.7 billion, which beat the Zacks Consensus Estimate by 1.2%. This was driven by 21% growth in direct premiums and escrow fees, and agent premiums along with steady net investment income. Investment income increased 12% to $154 million, supported by higher interest income from the company's investment portfolio and warehouse lending business

Adjusted pretax margin expanded 250 bps to 10%. Title open orders grew 8..2% to 182,900, closed orders rose 9%, and average revenue per direct title order increased to $4,229, reflecting a 48% jump in commercial order revenues. This was partly offset by a mix shift toward lower-premium refinance .

Home Warranty: Total revenues rose 2% to $110.3 million, missing our model estimate of $111.2 million. Pretax income climbed 4% year over year to $26 million. The claim loss rate improved to 36%, driven by small reductions in the number and severity of claims.  Pretax margin expanded 60 bps to 23.8%.

Corporate: The Corporate segment reported a net pretax loss of $31 million, narrowing from a $35 million loss in the year-ago quarter.        

FAF’s Financial Update

First American exited the first quarter of 2026 with cash and cash equivalents of $2.4 billion, up from the 2025-end level.

Notes and contracts payable were $1.5 billion, remaining flat from the 2025-end level.

Stockholders’ equity was $5.5 billion at the end of the first quarter of 2026, down 0.2% from the 2025-end level. The debt-to-capital ratio was 32.2.

Capital Deployment

The board of directors paid 55 per cent per share in the first quarter. FAF repurchased 0.5 million shares for $33 million in the reported quarter at an average price of $60.21 per share.

The company also continued buybacks after the first quarter ended, repurchasing another 0.3 million shares for $18 million at an average price of $61.6 per share through April 24, 2026.

Zacks Rank

FAF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Chubb Limited (CB Quick QuoteCB - Free Report) reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.

Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%. Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate was $2 billion.

The Travelers Companies, Inc. (TRV Quick QuoteTRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.

Net written premiums increased 2% year over year to a record $10.3 billion. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Catastrophe loss was $761 million, pre-tax, narrower than the $2.3 billion loss, incurred in the year-ago quarter. Travelers
 witnessed an underwriting gain of $1.1 billion against a $305 million loss in the year-ago quarter.

The Progressive Corporation’s (PGR Quick QuotePGR - Free Report)   first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.

Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.