CEO Ken DeGiorgio outlines strategic initiatives to bounce back
First American Financial Corporation has disclosed its financial results for 2023, revealing that its fourth quarter earnings and revenue took a hit following the cybersecurity issue that affected its operations in late December.
For the quarter ending December 31, 2023, First American Financial recorded earnings of 33 cents per diluted share, or 69 cents per share when adjusted. Its total revenue for the quarter was $1.4 billion, marking a 15% decrease from the previous year. However, the company’s Title Insurance and Services segment managed to maintain its investment income at $132 million, consistent with the previous year’s figures.
Throughout 2023, the company’s earnings were $2.07 per diluted share, or $3.80 per share on an adjusted basis, with total annual revenue reaching $6.0 billion—a 21% decline from the previous year. Notably, the Title Insurance and Services segment experienced a 50% increase in investment income, totaling $540 million for the year.
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“We were performing well in a challenging market ahead of the cybersecurity incident that occurred in late December. We elected to take systems offline which materially impacted the company’s operations and, consequently, our fourth quarter financial results. Our title orders and related product demand appear to have returned to normal levels, however. We expect no significant ongoing impact from the incident,” said Ken DeGiorgio, CEO of First American Financial Corporation.
“We do expect to benefit from modest growth in both our residential and commercial businesses, but this could change depending on the path of mortgage rates. We continue to run our business efficiently and maintain a strong balance sheet, which allows us to invest in strategic initiatives that support long-term growth, while returning capital to shareholders.”
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