First American Financial (FAF) risk factors, FY2025 10-K

First American Financial's FY2025 10-K, filed Feb 18, 2026, lists 23 risk factors. Against the prior year's 24: 1 dropped, 4 substantially reworded.

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Risk factors listed
230 groups
New this year
0vs 24 last year
Dropped
1since the prior 10-K
Substantially reworded
4of those kept
Section length
7k wordsItem 1A

What the changes say

  • Real-estate weakness now expressly includes low affordability, unfavorable conditions and unemployment, potentially reducing title earnings and increasing claims.
  • Some states promulgate title insurance rates, creating a risk that FAF cannot adjust prices promptly or at all.
  • Catastrophe disclosures now warn that events and responses may exacerbate other risks elsewhere in the filing.

What changed since the prior 10-K

Dropped

  • Dropped

    when economic conditions are unfavorable, including during periods of high unemployment

Reworded

  • 47% rewritten

    Regulation of title insurance rates could adversely affect the Company

    Adds that some states promulgate rates, which could prevent—not merely delay—price adjustments during changing markets.

  • 34% rewritten

    Conditions in the real estate market generally impact the demand for a substantial portion of the Company’s products and services

    Adds low affordability, unfavorable conditions and high unemployment, and explicitly links these conditions to lower title earnings and potentially higher claims.

  • 30% rewritten

    Severe weather conditions, health crises, terrorist attacks and other catastrophes could adversely affect the Company

    Shortens references from “catastrophe events” to “catastrophes” without changing the listed exposures or impacts.

    Was: Severe weather conditions, health crises, terrorist attacks and other catastrophe events could adversely affect the Company

  • 22% rewritten

    The Company’s home warranty business has been and may be impacted by increases in the frequency and severity of weather events. Home warranty claims, including those pertaining to HVAC systems, tend to rise as temperatures become extreme, especially in geographies where extreme temperatures are infrequent

    Adds that catastrophes and responses may exacerbate risks discussed elsewhere in Part I, Item 1A; otherwise mainly simplifies terminology.

All 23 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The Company’s risk management framework could prove inadequate, which could adversely affect the Company
  2. 02Conditions in the real estate market generally impact the demand for a substantial portion of the Company’s products and services34% rewritten
  3. 03Unfavorable economic conditions adversely affect the Company
  4. 04The Company’s use of models involves risks and uncertainties that could adversely affect the Company
  5. 05Severe weather conditions, health crises, terrorist attacks and other catastrophes could adversely affect the Company30% rewritten
  6. 06The Company’s home warranty business has been and may be impacted by increases in the frequency and severity of weather events. Home warranty claims, including those pertaining to HVAC systems, tend to rise as temperatures become extreme, especially in geographies where extreme temperatures are infrequent22% rewritten
  7. 07The Company may find it difficult to acquire necessary data
  8. 08Changes in the Company’s relationships with large mortgage lenders or government–sponsored enterprises could adversely affect the Company
  9. 09The issuance of the Company’s title insurance policies and related activities by independent title agents could adversely affect the Company
  10. 10Errors and fraud involving the transfer of funds may adversely affect the Company
  11. 11The Company’s failure to recruit and retain qualified employees may adversely affect the business
  12. 12The Company’s use of a global workforce involves risks that could adversely affect the Company
  13. 13Acquisitions may have an adverse effect on our business
  14. 14LEGAL AND COMPLIANCE RISK FACTORS
  15. 15Regulation of title insurance rates could adversely affect the Company47% rewritten
  16. 16Failures at financial institutions at which the Company deposits funds could adversely affect the Company
  17. 17Unfavorable economic or other conditions could cause the Company to write off a portion of its goodwill and other intangible assets
  18. 18The Company’s investment portfolio is subject to certain risks and could experience losses
  19. 19The Company’s venture investment portfolio is volatile and subject to certain risks and could experience losses
  20. 20The Company's ability to fulfill parent company obligations and/or pay dividends may be limited
  21. 21A reduction in the deposits at the Company’s federal savings bank subsidiary could require the Company to borrow funds to maintain liquidity
  22. 22the Company’s board of directors may without stockholder approval issue preferred shares and determine their rights and terms, including voting rights, or adopt a stockholder rights plan
  23. 23The Company may be susceptible to claims of infringement and may not be able to adequately protect its intellectual property

Other First American Financial 10-Ks

  • FY2024 10-K risk factors
    24 risks

    First American Financial Corp is heavily exposed to real estate market fluctuations, interest rate changes, and economic conditions. Title insurance operations face extensive state regulation, reliance on independent title agents, and investment portfolio risks.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.