First American Financial is primarily a title insurance company — the second-largest in the U.S. behind Fidelity National Financial. Title insurance protects real estate buyers and mortgage lenders against financial loss from defects in a property's title, such as undisclosed liens or ownership disputes. The core product is a one-time premium paid at closing, covering events that occurred prior to the policy date. Before issuing a policy, First American searches public records and its proprietary title plant databases to identify and resolve defects. First American also handles the closing and escrow function, coordinating the transfer of funds and documents at settlement. The company distributes through two channels: direct (First American's own offices retain the full premium) and agency (independent agents issue policies on First American's behalf, remit a portion of the premium to First American, and retain the rest). Revenue is driven by real estate transaction volumes and average revenue per order, which tracks home prices in residential and varies widely in commercial. A notable feature of First American's economics is investment income earned on large escrow and custodial deposit balances held through its bank, First American Trust. Beyond core title, First American operates a home warranty business selling renewable service contracts on home systems and appliances, a mortgage subservicing business (ServiceMac), and a data and analytics business licensing property records. First American is investing in two AI-native platforms — Sequoia for title production and Endpoint for escrow and closing — to automate its core workflows and reduce costs over time.