©2018 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

FIRST AMERICAN FINANCIALSpring Investor PresentationMarch 2019

Safe Harbor Statement

CERTAIN STATEMENTS MADE IN THIS PRESENTATION AND THE RELATED MANAGEMENT COMMENTARY AND RESPONSES TO INVESTOR QUESTIONS CONTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE FACT THAT THEY DO NOT RELATE STRICTLY TO HISTORICAL OR CURRENT FACTS AND MAY CONTAIN THE WORDS “BELIEVE,” “ANTICIPATE,” “EXPECT,” “INTEND,” “PLAN,” “PREDICT,” “ESTIMATE,” “PROJECT,” “WILL BE,” “WILL CONTINUE,” “WILL LIKELY RESULT,” OR OTHER SIMILAR WORDS AND PHRASES OR FUTURE OR CONDITIONAL VERBS SUCH AS “WILL,” “MAY,” “MIGHT,” “SHOULD,” “WOULD,” OR “COULD.” THESE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE OPERATIONS, PERFORMANCE, FINANCIAL CONDITION, PROSPECTS, PLANS AND STRATEGIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND ASSUMPTIONS THAT MAY PROVE TO BE INCORRECT. RISKS AND UNCERTAINTIES EXIST THAT MAY CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN THESE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE THE ANTICIPATED RESULTS TO DIFFER FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, INTEREST RATE FLUCTUATIONS; CHANGES IN THE PERFORMANCE OF THE REAL ESTATE MARKETS; VOLATILITY IN THE CAPITAL MARKETS; UNFAVORABLE ECONOMIC CONDITIONS; FAILURES AT FINANCIAL INSTITUTIONS WHERE THE COMPANY DEPOSITS FUNDS; CHANGES IN APPLICABLE LAWS AND GOVERNMENT REGULATIONS, INCLUDING DATA PRIVACY LAWS; HEIGHTENED SCRUTINY BY LEGISLATORS AND REGULATORS OF THE COMPANY’S TITLE INSURANCE AND SERVICES SEGMENT AND CERTAIN OTHER OF THE COMPANY’S BUSINESSES; USE OF SOCIAL MEDIA BY THE COMPANY AND OTHER PARTIES; REGULATION OF TITLE INSURANCE RATES; LIMITATIONS ON ACCESS TO PUBLIC RECORDS AND OTHER DATA; CHANGES IN RELATIONSHIPS WITH LARGE MORTGAGE LENDERS AND GOVERNMENT-SPONSORED ENTERPRISES; CHANGES IN MEASURES OF THE STRENGTH OF THE COMPANY’S TITLE INSURANCE UNDERWRITERS,INCLUDING RATINGS AND STATUTORY CAPITAL AND SURPLUS; LOSSES IN THE COMPANY’S INVESTMENT PORTFOLIO; MATERIAL VARIANCE BETWEEN ACTUAL AND EXPECTED CLAIMS EXPERIENCE; DEFALCATIONS, INCREASED CLAIMS OR OTHER COSTS AND EXPENSES ATTRIBUTABLE TO THE COMPANY’S USE OF TITLE AGENTS; ANY INADEQUACY IN THE COMPANY’S RISK MANAGEMENT FRAMEWORK; SYSTEMS DAMAGE, FAILURES, INTERRUPTIONS AND INTRUSIONS, OR UNAUTHORIZED DATA DISCLOSURES; INNOVATION EFFORTS OF THE COMPANY AND OTHER INDUSTRY PARTICIPANTS AND ANY RELATED MARKET DISRUPTION; ERRORS AND FRAUD INVOLVING THE TRANSFER OF FUNDS; THE COMPANY’S USE OF A GLOBAL WORKFORCE; INABILITY OF THE COMPANY’S SUBSIDIARIES TO PAY DIVIDENDS OR REPAY FUNDS; AND OTHER FACTORS DESCRIBED IN THE COMPANY’S ANNUAL REPORT ON FORM 10-K, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN ITEM 1A OF PART I OF THAT REPORT. THE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT CIRCUMSTANCES OR EVENTS THAT OCCUR AFTER THE DATE THE FORWARD-LOOKING STATEMENTS ARE MADE.

2

Use of non-GAAP Financial Measures

THIS SLIDE PRESENTATION CONTAINS CERTAIN FINANCIAL MEASURES THAT ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), INCLUDING ADJUSTED INVESTMENT INCOME. ADJUSTED INVESTMENT INCOME EXCLUDES AFFILIATED INVESTMENTS AND IS PRESENTED BECAUSE IT PROVIDES THE COMPANY’S MANAGEMENT AND READERS AND VIEWERS OF THIS PRESENTATION WITH A BETTER UNDERSTANDING OF THE IMPACT OF INTEREST RATES ON THE COMPANY’S INVESTMENT INCOME OVER TIME. THE COMPANY DOES NOT INTEND FOR THESE NON-GAAP FINANCIAL MEASURES TO BE A SUBSTITUTE FOR ANY GAAP FINANCIAL INFORMATION. IN THE SLIDE PRESENTATION THESE NON-GAAP FINANCIAL MEASURES HAVE BEEN PRESENTED WITH, AND RECONCILED TO, THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES. INVESTORS SHOULD USE THESE NON-GAAP FINANCIAL MEASURES ONLY IN CONJUNCTION WITH THE COMPARABLE GAAP FINANCIAL MEASURES.

MANAGEMENT COMMENTARY AND RESPONSES TO QUESTIONS MAY CONTAIN CERTAIN FINANCIAL MEASURES THAT ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), WHICH NON-GAAP MEASURES HAVE PREVIOUSLY BEEN DISCLOSED AND HAVE BEEN PRESENTED WITH, AND RECONCILED TO, THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES EITHER IN OUR MOST RECENT EARNINGS RELEASE OR ANNUAL REPORT ON FORM 10-K, BOTH OF WHICH ARE AVAILABLE ON OUR WEB SITE AT WWW.FIRSTAM.COM.

3

AGENDA

Strong Track Record of Results

Well Positioned in a Changing Environment

Attractive Growth Opportunities

4

Leader in the Title and Settlement Services Industry

92% of Revenue, Title Segment

8% of Revenue, Specialty Insurance Segment25.8% Title Market Share

18,300 Employees

800 Offices

Largest Title Plant and Property

Record Database

Fortune 100 Best Companies to Work For®

2016 – 2017 – 2018 – 2019

Trusted National Brand

$10.6B Total Assets

5

$5.7B Total Revenue

9 Countries

Note: Revenue and market share data for 2018. All other data as of December 31, 2018.

FORTUNE and FORTUNE 100 Best Companies to Work For are registered trademarks of Time Inc. FORTUNE and Time Inc. are not affiliated with and do not endorse products and services of First American Financial Corporation.

6

First American Strategy

Past 5 Years: Achieved Strong Financial Results

7

TOTAL REVENUE

$ in

Mill

ion

s

EARNINGS PER SHARE

CASH FROM OPERATIONS RETURN ON EQUITY

$4.7

$5.2

$5.6 $5.8 $5.7

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

2014 2015 2016 2017 2018

$ in

Bill

ion

s

$2.15 $2.62

$3.09

$3.76 $4.19

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

2014 2015 2016 2017 2018

$361

$551 $489

$632

$793

$100

$200

$300

$400

$500

$600

$700

$800

$900

2014 2015 2016 2017 2018

9.3%10.8%

11.9%13.0% 13.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2014 2015 2016 2017 2018

Target

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Mortgage Originations Pretax Margin

Historical Title Insurance Margin

8

$ in

Bill

ion

s

Source: February 2019 MBA

-20

0

20

40

60

80

100

120

140

160

180

FAF US Equity SPX Index

Total Shareholder Return

9 Source: Bloomberg - Weekly as of February 28, 2019

Total Annualized Return

1 year 3 year 5 year

First American -8.4% 15.0% 17.4%

S&P 500 6.3% 15.1% 10.7%

Fidelity -4.5% 17.2% n/a

AGENDA

Well Positioned in a Changing Environment

Attractive Growth Opportunities

Strong Track Record of Results

10

Real Estateand Mortgage

Process BecomingDIGITAL

HIGHERINTEREST RATES

Affect Business Mix

EMERGING TECHNOLOGIES

Create Opportunities

Consumer Experience Faster Closing

Purchase Commercial BlockchainArtificial Intelligence

Robotic Process AutomationRefinance

Key Forces Driving Market Change

11

Rising Rates Have Changed the Business Mix

12

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

-

1,000

2,000

3,000

4,000

5,000

6,000

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

De

c-1

6

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

De

c-1

7

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

De

c-1

8

Jan

-19

Feb

-19

10

-Yea

r Tr

easu

ry

Dai

ly O

pen

Ord

ers

Refinance 10-Year %

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

2.50%

$16

$26

$36

$46

$56

$66

$76

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Q1

'17

Q2

'17

Q3

'17

Q4

'17

Q1

' 18

Q2

' 18

Q3

' 18

Q4

' 18

Titl

e Se

gmen

t In

vest

men

t In

com

e ($

in M

illio

ns)

Investment Income Fed Funds Rate

… and Higher Short-term Rates Benefit Investment Income

13(1) Excludes affiliated investments (See reconciliation in Appendix).(2) Company estimate.

Title Segment(1)

Fed Fu

nd

s Rate

Each 25 basis point Fed hike increases investment income by ~$15 million/year(2)

Purchase Market Slowing as Market Resets

14

First American Operations▪ 550 local offices focused on purchase

▪ Leading homebuilder business

▪ Fee per file 2.5x refinance

Purchase Market▪ Good economic backdrop with job and

wage growth

▪ Near term affordability improving as market resets

− Mortgage rates have improved− Home price appreciation slowing− Inventory increasing

GROWTH RATE vs. PRIOR YEAR

$300

$400

$500

$600

$700

$800

$900

$1,000

FY17 FY18

$ in

Mill

ion

s

PURCHASE DIRECT REVENUE

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

Title Order Closed Average Revenue per Order

Digital Transformation of Mortgage and Closing Process Underway

▪ Quality Service▪ Proactive Communication

▪ Faster Closings▪ Reduced Costs▪ Improved Accuracy

▪ Digital Experience▪ Transparency

Lenders

Real Estate AgentsConsumers

First AmericanFinancial

15

Emerging Technologies Create Opportunities

16

EmergingTechnologies

BlockchainArtificial Intelligence

Robotic Process Automation “BOTS”

▪ Opportunity to drive process efficiencies▪ Collaborating with lenders on proof of concepts▪ Recently launched first production application▪ In our view, unlikely to disrupt title

▪ Doesn’t address many title issues (fraud, easements, special rights, etc.)

▪ Numerous legal and financial challenges

▪ Automation of standard, repeatable tasks improves productivity and reduces cost▪ Numerous opportunities being evaluated across title operations, accounting and underwriting▪ New development platform now in place to accelerate live BOTS in production in 2019

▪ High potential use case when coupled with proprietary data

▪ Enhanced data collection and predictive analytics to drive title automation and enhance risk decisioning

▪ Reduced operational costs▪ Improved productivity

AGENDA

Strong Track Record of Results

Attractive Growth Opportunities

Well Positioned in a Changing Environment

17

Strong Outlook for Title and Settlement Business

▪ Purchase slowing as market resets

▪ Commercial market fundamentals remain strong

▪ Investment income growing due primarily to higher short term rates

▪ Refinance activity has declined to 8% of direct revenue

18

Revenue Growth

▪ Disciplined cost management culture

▪ Prudent underwriting has driven claim losses lower

▪ Leveraging data and technology to improve productivity and enhance risk decisioning

Cost Efficient Operation

▪ Focus remains on margin expansion▪ Record margin in each of the past 3 years Title Margin

19

5,000

5,500

6,000

6,500

7,000

7,500

8,000

2012 2013 2014 2015 2016 2017 2018

▪ FAF has reduced number of smaller agents in recent years to focus on larger, more profitable relationships

▪ Reduced risk, audit and administrative costs by terminating smaller agents

▪ Growth with large commercial agents

▪ Continual monitoring of profitability by agent− Moved agent split to 85/15 in So. California

NUMBER OF AGENTS

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

2012 2013 2014 2015 2016 2017 2018-Q3

MARKET SHARE %

Agency Division has Maintained Market Share with Fewer Agents

20

Commercial - Current Trend and Outlook

• Most major asset classes and geographic markets remain strong

• High level of capital availability despite a decline in foreign capital

• A few overheated markets showing signs of fatigue (NYC, excluding 4Q)

• Expect strong activity level to persist, supported by continued economic growth

Commercial Market Sales Volume(1) Direct Revenues

432

582

181

72

155

261310

378

453

569

511 490 475450

415

$0

$200

$400

$600

$800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

($ in

Bill

ion

s)

465 506599 559 592

642

81 89

98 102

104 112

$-

$100

$200

$300

$400

$500

$600

$700

$800

2013 2014 2015 2016 2017 2018

NCSD Local

546595

696661

696

$ Millions

753

Commercial Business Outlook

(1) Source: Real Capital Analytics

Disciplined M&A Strategy Drives Growth

Focused Strategy▪ Title companies that expand our footprint

in key markets

▪ Companies that enhance our data capabilities or expand product and service offerings

Disciplined Process▪ Strategic and cultural fit

▪ Risk adjusted return targets

▪ Operational integration

21

Pursuing targets that support or

leverage our core title and settlement

business

Mergers & Acquisitions

22

2015

2014

TD Service Leading provider of technology and services to the mortgage banking industry; broadens and enhances our post-closing and document management capabilities.

Complementary

$115MRedVision Largest independent provider of title and real property research; expands

coverage to all 50 states and significantly improves product capabilities in the agent channel.

Complementary

Forsythe Largest independent appraisal company in the U.S.; significantly expanded valuation offering to lender customers.

Complementary

TitleVest Title/Settlement service agent with significant residential position in NYC. Title $32M

Interthinx Provides solutions to help clients minimize risk, increase operational efficiencies, and satisfy regulatory requirements; best known for FraudGUARD, a market-leading mortgage fraud analytics product.

Complementary

$163M

Universal Land Title Title/Settlement service agent primarily located in southern Florida. Title

COMPANY TYPETOTALSPEND(1)

Note: Highlights transactions of $5 million or greater. (1) Aggregate purchase price for all completed acquisitions in given year. Source: Company’s 10-K filings.

2016

2017 SIS Buyout of long standing joint venture of title information provider. Complementary

$91MNevada Title Leading title and escrow company with a strong presence in southern Nevada. Title

▪ Acquire companies strategic to our core business that:

▪ Strengthen geographic presence

▪ Enhance product breadth

▪ Analyze expected returns on a risk-adjusted basis

▪ Aggressively integrate acquisitions to realize synergies

2018

Bank America Lien Release Business

Significantly enhances the company’s post-closing services business, while continuing to provide lien release services to Bank of America.

Title

$78MFirst Funding Provides residential warehouse funding and management services to small and

mid-sized mortgage originators.Complementary

PCN Provides residential closing services including Safe Escrow software platform that enables more efficient and secure cash disbursement for title agents.

Complementary

Attractive Growth Prospects in Our Property Data Business

Property Record Database▪ Largest property record database

▪ Datatree.com and data licensing demonstrating growth

Title Plant

▪ Continued expansion into new markets

▪ Houston, Dallas, El Paso

▪ Long-term strategy to expand plant coverage to facilitate title automation

23

94

73

87

94

43

17

97

96

99

99

83

60

85

Proprietary Title Plants

Document Images

Active Real Estate Listings

Map and Parcel Boundaries

Assignments and Releases

Deeds, Mortgages, Foreclosures

Assessor/Property Ownership 1st

1st

1st

1st

1st

1st

1st

% Share of counties % Share of population

CURRENT DATA COVERAGE

100100

99

Homeowners Associations

1st

RANK

Leveraging Data Assets to Drive Title Automation and Enhanced Risk Decisioning

Offering a Wider Array of Products to Title Agents

24

Customer Benefits

First American Benefits

▪ Reduced operating costs▪ Risk mitigation▪ Process efficiency

▪ Expands “share of wallet” with agents

▪ Grows bank deposits▪ Deepens customer

relationships▪ Reduces underwriting risk

▪ Full Search▪ Limited Search

▪ Document Preparation▪ Recordings

▪ Reconciliation▪ Wires▪ Deposit Accounts

Title Insurance

Title Production

Banking Services

Closing Solutions

Back Office Services

Primary Business

Age

nt

Ad

van

tage

Pilot launched in 2017

SUMMARY

25

Strong Track Record of Results▪ 17% annualized total shareholder return past 5 years

Well Positioned in a Changing Environment▪ Financial performance remains strong despite higher interest rates ▪ Actively investing for the digital future▪ Application of emerging technologies creates opportunities

Attractive Growth Opportunities▪ Strong industry outlook▪ Active M&A pipeline▪ Data assets drive title automation and enhance risk decisioning▪ Expanding service offering for title agents

Capital Management Strategy

▪ Objective: Create long-term shareholder value

▪ Capital management priorities:

▪ Make value-creating investments in our core business

▪ Acquire businesses that fit within our strategy

▪ Return excess capital to shareholders through dividends and share repurchases

▪ Maintain “A-” financial strength ratings and adequate capital levels

▪ Manage our capital structure prudently

▪ Maintain ample financial flexibility and holding company liquidity

26

Dividends

▪ First American expects to pay a meaningful dividend given the company’s cash flow generation and investment opportunities

▪ Dividend increases are intended to be sustainable in perpetuity

▪ Dividend increases will be dependent upon expected holding company cash flows, market conditions and alternative uses of capital, among other factors

▪ The company is not committed to increasing the dividend every year

27

Dividend ConsiderationsDIVIDENDS PER SHARE

PAYOUT RATIO

$0.48

$0.84$1.00

$1.20

$1.44

$1.60

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

2013 2014 2015 2016 2017 2018

28%

39% 38% 38% 38% 38%

0%

20%

40%

60%

2013 2014 2015 2016 2017 2018

Share Repurchases

▪ Share repurchases will be dependent upon capital levels, market conditions and alternative uses of capital among other factors

▪ $160 million remaining under share repurchase authorization

28

SHARE REPURCHASE HISTORYSh

are

Bu

ybac

k Pe

rio

d

Shar

e B

uyb

ack

Per

iod

$20

$25

$30

$35

$40

$45

$50

$55

$60

$65

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-1

8

Jan

-19

Mar

-19

2013 Repurchase Summary

Shares purchased 3.0 Million

Total amount $64.5 million

Avg. price per share $21.87

IRR 25.9%

2018/2019 Repurchase Summary

Shares purchased 472,133

Total amount $20.9 million

Avg. price per share $44.20

IRR 59.9%

30%

21%

44%

1%4%

Uses of Free Cash Flow and Debt Proceeds

29

▪ ~44% of cash flow used for investment portfolio to strengthen the balance sheet

▪ Moving forward, portfolio strengthening not necessary as capital levels exceed current targets

▪ A greater proportion of future cash flows will be allocated to dividends given recent increases

CUMULATIVE 5 YEAR USES

Dividends

Acquisitions

Net Cash & Investments

Share RepurchasesPension Termination

$(200)

$(100)

$-

$100

$200

$300

$400

$500

$600

$700

2014 2015 2016 2017 2018

$ in

Mill

ion

s

Capital Structure

▪ Management’s target debt-to-capital ratio is 18-20%

▪ Supports target financial strength ratings

▪ $160 million drawn on $700 million revolving credit facility

▪ Revolving credit facility term ends in May 2019

▪ Significant financial flexibility to seize strategic opportunities

30

As of December 31st, 2018 ($ in Millions)

4.3% Senior Notes Due 2023 $249

4.6% Senior Notes Due 2024 $298

Trust Deed Notes $19

Other Notes $6

Revolving Credit Facility $160

Total Debt $732

Total Equity $3,745

Debt-to-Capital Ratio(1) 16.3%

Financial Covenant

DEBT-TO-CAPITAL RATIO

5%

10%

15%

20%

25%

30%

35%

2014 2015 2016 2017 2018(1) Excludes $76 million in secured financings for First Funding

US Treasury

6%

Gov't Agency

3% Municipal18%

Corporate18%

Gov't Agency

MBS14%

Bank Loans

6%

Foreign6%

Equity13%

US Treasury3%

Gov't Agency5%

Municipal17%

Corporate11%

Gov't Agency MBS53%

Bank Loans2%

Foreign3%

Equity6%

Investment Portfolio

31

CONSOLIDATED PORTFOLIO INSURANCE PORTFOLIO

BANK PORTFOLIO

Note: Debt and equity securities as of December 31, 2018

Avg. Rating : AADuration: 4.7Book Yield: 3.0%

Avg. Rating : AA-Duration: 5.1Book Yield: 3.4%

Avg. Rating : AADuration: 4.5Book Yield: 2.7%

$6.1B

$2.6B

Gov't Agency

7%Municipal

17%

Corporate6%

Gov't Agency

MBS70%

$3.4B

Ultimate Loss Ratios by Policy Year

32 Note: Ultimate loss ratios are estimates and calculated as a percentage of title premiums and escrow fees for a given policy year as of December 31, 2018

Paid

Losses b

y Calen

dar Year ($

in M

illion

s)

Ult

imat

e Lo

ss R

atio

s b

y P

olic

y Ye

ar

92%

93%90%

92%

88%

85%82%

78%

69% 60%57%

33% 17% 5%

94%91%

93%

90%

87%85% 81%

74% 67%66%

47% 30%17%

5%$0

$50

$100

$150

$200

$250

$300

$350

$400

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Paid to Date Ultimate Loss Ratio - Policy Year Paid Losses - Calendar Year

11.2%

13.2%

9.8%

6.5%

5.4%5.2%

3.4%3.7%

4.6%

3.3%

3.8% 3.9%

9.8%

4.0%

Title Insurance Margin Objective

33

Downside Base Case Upside

Pretax Margin <11% 11% - 13% >13%

Mortgage Originations <$1.4 Trillion $1.4 - $1.8 Trillion >$1.8 Trillion

% Refinance ~25% ~25% ~25%

Investment Considerations

▪ Focused strategy as “pure play” in title and settlement markets

▪ Attractive industry characteristics

▪ Strong competitive position in title and settlement services

▪ Opportunity to grow through focus on innovation and by leveraging unique assets (e.g. bank and data)

▪ Expect earnings and margin growth as mortgage originations improve

▪ Strong balance sheet and financial flexibility

▪ Commitment to return capital to shareholders

34

APPENDIX

35

SPECIALTY INSURANCE SEGMENT

U.S. Title

Direct

Agency

Commercial

International Title

Canada

United Kingdom

Mortgage & Data Solutions

Mortgage Solutions

Database Solutions

Banking & Services

Trust & Banking

Real Estate Services

Home Warranty

Property & Casualty

Australia/New Zealand

TITLE INSURANCE AND SERVICES SEGMENT

FIRST AMERICANFINANCIAL CORPORATION

ORGANIZATIONAL STRUCTURE

36

1.9 2.1 2.3 2.3 2.3

1.0 1.2

1.3 1.3 1.3 0.6

0.70.7 0.7 0.8

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

2014 2015 2016 2017 2018

Agent Direct Commercial

$ in

Bill

ion

s$

in B

illio

ns

U.S. TITLE

DIRECT AGENCY COMMERCIAL

Total Revenue Trend

$3.5

$4.0$4.2 $4.4 $4.4

U.S. Title76%

$4.4B$5.7B

$2.3BAgent40%

$1.3BDirect23%

$0.8BCommercial

13%

First American Financial Total Revenue

37

SPECIALTY INSURANCE

Total Revenue Trend

PROPERTY & CASUALTY HOME WARRANTY

38

First American Financial Total Revenue

Specialty Segment

8%$0.5B$0.5B $5.7B

237 260 299 327 344

132 134

137 139 125

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2014 2015 2016 2017 2018

Home Warranty Property & Casualty

$ in

Mill

ion

s

$394

$ in

Mill

ion

s

$369

$436$465 $469

73%Home

Warranty

27%Property &

Casualty

Agency44%

Direct26%Commercial

15%

Mortgage & Data Solutions

9%

International6%

92%Title Segment

8%Specialty Segment

2018 Revenue Breakdown

39

FIRST AMERICAN FINANCIAL

U.S. Title

$5.7B

$5.3B

TITLE SEGMENT

$0.5B

SPECIALTY SEGMENT

2018 Incurred Claims Detail

40

CLAIM CAUSE PROCESS CAUSE

49% Direct / 51% Agent

File Shortage0%

Escrow/Closing5%

GAP0%

Liens18%

Encumbrances18%

Fraud13%

Basic Risks20%

Other14%

Defective Title6%

Permit Violation6%

No Error49%

Unclassified3%

Escrow/Closing14%

Underwriting8%

Exam11%

Search13%

Other2%

Claim Severity Distribution

41

CLAIM COUNT BY SEVERITY GROUP PAID CLAIMS BY SEVERITY GROUP

Large claims: $250,000 and greater Typical claims: $1,000 to $250,000 Minor claims: Less than $1,000

Note: Data for 2018 paid claims; excludes file shortages and de minimis claims

Large Claims44%

Typical Claims

56%

Minor Claims0%

Large Claims1%

Typical Claims

66%

Minor Claims

33%

Title Segment Net Investment Income Reconciliation

42

Net Investment Income Less Affiliate Investments$ in Millions

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4’18

Net Investment Income $21.8 $26.0 $25.4 $24.4 $24.9 $27.5 $29.0 $29.4 $26.6 $34.7 $37.9 $38.3 $41.4 $51.7 $60.9 $69.3

Less: Affiliate Investments 1.1 3.7 2.8 0.1 0.9 2.1 2.8 2.4 1.6 1.8 1.1 (0.8) (0.3) 1.0 1.5 0.5

Adjusted Net Investment Income $20.6 $22.2 $22.6 $24.3 $24.0 $25.4 $26.2 $27.0 $25.0 $32.9 $36.8 $39.0 $41.7 $50.7 $59.3 $68.8

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

Net Investment Income $19.0 $21.6 $22.2 $13.8 $15.7 $19.3 $22.0 $2.7

Less: Affiliate Investments 2.7 4.5 4.1 (3.9) (2.0) 0.3 2.8 (17.6)

Adjusted Net Investment Income $16.3 $17.1 $18.2 $17.7 $17.7 $19.0 $19.2 $20.3