©2015 First American Financial Corporation and/or its affiliates. All rights reserved. q NYSE: FAF

FirstAmericanFinancialWinter2017InvestorPresentation

SafeHarborStatement

2

CERTAINSTATEMENTSMADEINTHISPRESSRELEASEANDTHERELATEDMANAGEMENTCOMMENTARYCONTAIN,ANDRESPONSESTOINVESTORQUESTIONSMAYCONTAIN,FORWARD-LOOKINGSTATEMENTSWITHINTHEMEANINGOFSECTION27AOFTHESECURITIESACTOF1933,ASAMENDED,ANDSECTION21EOFTHESECURITIESEXCHANGEACTOF1934,ASAMENDED.THESEFORWARD-LOOKINGSTATEMENTSCANBEIDENTIFIEDBYTHEFACTTHATTHEYDONOTRELATESTRICTLYTOHISTORICALORCURRENTFACTSANDMAYCONTAINTHEWORDS“BELIEVE,”“ANTICIPATE,”“EXPECT,”“INTEND,”“PLAN,”“PREDICT,”“ESTIMATE,”“PROJECT,”“WILLBE,”“WILLCONTINUE,”“WILLLIKELYRESULT,” OR OTHERSIMILARWORDSANDPHRASESORFUTUREORCONDITIONALVERBSSUCHAS“WILL,”“MAY,”“MIGHT,”“SHOULD,”“WOULD,”OR“COULD.”THESEFORWARD-LOOKINGSTATEMENTSINCLUDE,WITHOUTLIMITATION,STATEMENTSREGARDINGFUTUREOPERATIONS,PERFORMANCE,FINANCIALCONDITION,PROSPECTS,PLANSANDSTRATEGIES.THESEFORWARD-LOOKINGSTATEMENTSAREBASEDONCURRENTEXPECTATIONSANDASSUMPTIONSTHATMAYPROVETOBEINCORRECT.

RISKSANDUNCERTAINTIESEXISTTHATMAYCAUSERESULTSTODIFFERMATERIALLYFROMTHOSESETFORTHINTHESEFORWARD-LOOKINGSTATEMENTS.FACTORSTHATCOULDCAUSETHEANTICIPATEDRESULTSTODIFFERFROMTHOSEDESCRIBEDINTHEFORWARD-LOOKINGSTATEMENTSINCLUDE,WITHOUTLIMITATION:INTERESTRATEFLUCTUATIONS;CHANGESINTHEPERFORMANCEOFTHEREALESTATEMARKETS;VOLATILITYINTHECAPITALMARKETS;UNFAVORABLEECONOMICCONDITIONS;IMPAIRMENTSINTHECOMPANY’SGOODWILLOROTHERINTANGIBLEASSETS;FAILURESATFINANCIALINSTITUTIONSWHERETHECOMPANYDEPOSITSFUNDS;CHANGESINAPPLICABLEGOVERNMENTREGULATIONS;HEIGHTENEDSCRUTINYBYLEGISLATORSANDREGULATORSOFTHECOMPANY’STITLEINSURANCEANDSERVICESSEGMENTANDCERTAINOTHEROFTHECOMPANY’SBUSINESSES;THECONSUMERFINANCIALPROTECTIONBUREAU’SEXERCISEOFITSBROADRULEMAKINGANDSUPERVISORYPOWERS;REGULATIONOFTITLEINSURANCERATES;REFORMOFGOVERNMENT-SPONSOREDMORTGAGEENTERPRISES;LIMITATIONSONACCESSTOPUBLICRECORDSANDOTHERDATA;CHANGESINRELATIONSHIPSWITHLARGEMORTGAGELENDERSANDGOVERNMENT-SPONSOREDENTERPRISES;CHANGESINMEASURESOFTHESTRENGTHOFTHECOMPANY’STITLEINSURANCEUNDERWRITERS,INCLUDINGRATINGSANDSTATUTORYCAPITALANDSURPLUS;LOSSESINTHECOMPANY’SINVESTMENTPORTFOLIO;MATERIALVARIANCEBETWEENACTUALANDEXPECTEDCLAIMSEXPERIENCE;DEFALCATIONS,INCREASEDCLAIMSOROTHERCOSTSANDEXPENSESATTRIBUTABLETOTHECOMPANY’SUSEOFTITLEAGENTS;ANYINADEQUACYINTHECOMPANY’SRISKMITIGATIONEFFORTS;SYSTEMSDAMAGE,FAILURES,INTERRUPTIONSANDINTRUSIONSORUNAUTHORIZEDDATADISCLOSURES;ERRORSANDFRAUDINVOLVINGTHETRANSFEROFFUNDS;INABILITYTOREALIZETHEBENEFITSOFTHECOMPANY’SOFFSHOREOPERATIONS;INABILITYOFTHECOMPANY’SSUBSIDIARIESTOPAYDIVIDENDSORREPAYFUNDS;INABILITYTOREALIZETHEBENEFITSOF,ANDCHALLENGESARISINGFROM,THECOMPANY’SACQUISITIONSTRATEGY;ANDOTHERFACTORSDESCRIBEDINTHECOMPANY’SQUARTERLYREPORTONFORM10-KFORTHEYEARENDEDDECEMBER31,2016,ASFILEDWITHTHESECURITIESANDEXCHANGECOMMISSION.THEFORWARD-LOOKINGSTATEMENTSSPEAKONLYASOFTHEDATETHEYAREMADE.THECOMPANYDOESNOTUNDERTAKETOUPDATEFORWARD-LOOKINGSTATEMENTSTOREFLECTCIRCUMSTANCESOREVENTSTHATOCCURAFTERTHEDATETHEFORWARD-LOOKINGSTATEMENTSAREMADE.

Useofnon-GAAPFinancialMeasures

3

Thisslidepresentationcontains,andrelatedcommentaryandanswerstoquestionsmaycontaincertainfinancialmeasuresthatarenotpresentedinaccordancewithgenerallyacceptedaccountingprinciples(GAAP),including netoperatingrevenueandsuccessratios.Althoughtheseexclusionsrepresentactualgains,lossesorexpensestotheCompany,theymaymasktheperiodicincomeandfinancialandoperatingtrendsassociatedwiththeCompany’sbusiness.

TheCompanyispresentingthesenon-GAAPfinancialmeasuresbecausetheyprovidetheCompany’smanagementandinvestorswithadditionalinsightintotheoperationalperformanceoftheCompanyrelativetoearlierperiodsandrelativetotheCompany’scompetitors.TheCompanydoesnotintendforthesenon-GAAPfinancialmeasurestobeasubstituteforanyGAAPfinancialinformation.Intheslidepresentationthesenon-GAAPfinancialmeasureshavebeenpresentedwith,andreconciledto,themostdirectlycomparableGAAPfinancialmeasures.Investorsshouldusethesenon-GAAPfinancialmeasuresonlyinconjunctionwiththecomparableGAAPfinancialmeasures.

OrganizationalStructure

4

2016Revenue:$5.6B TotalRevenueTrend

Specialty8%

Mortgage&Data

Solutions9%

International5%

U.S.Title78%

3.3 3.7 3.5 4.0 4.3

0.60.6

0.40.5

0.50.3

0.30.4

0.40.5

0.30.3

0.30.3

0.3

-

1.0

2.0

3.0

4.0

5.0

6.0

2012 2013 2014 2015 2016

U.S.Title Mortgage&DataSolutions Specialty International

StrategyEvolution

55

2010-20132013-2016

2016- 2020

PositionFApost-spin&managecrisisfallout

Becomemoreefficient&strengthenbalancesheet

Growprofitably&innovateforproductivity

Keybusinessactions

• Standardizedandcentralizedback-officeoperations

• Increasedleverageofoffshoreassets

• Simplifiedoperatingstructure

• Moderatemarketsharegrowth

• Enhanceddatacapabilities

• Achievedcostleadership

• Continuetodrivecostadvantage

• Emphasizegrowth,primarilyindirectandcomplementarybusinesses

• Leveragedataforproductivity

Keycapitalactions

• Simplifiedlegalentitystructure

• Strengthenedbalancesheet

• Increaseddividend

• Deploycapitaltowardsgrowth

• Distributemorecashtoshareholders

Common themesFocusonefficiencyValueourpeople

Prudentlymanageourcapital

FirstAmerican’sStrategy

6

Vision:Tobethepremiertitleinsuranceandsettlementservicescompany

Innovation

Complianceandriskmanagement

FocusM&Aonenhancingthecore

Optimizecapitalmanagementstrategy

Peopleandculture

Profitablygrowour

coretitleandsettlementbusiness

Strengthentheenterprisethroughdataandprocessadvantage

Manageandactivelyinvestin

complementarybusinessesthat

supportorexpandthecore

Deployourcapitaltomaximizelong-termshareholderreturns

RefinanceMarket

7

CurrentTrend

Outlook

• Openordershavestabilizedat~1200perdayin1Q

• Significantlyreducingresourcecommitmentsinourrefinancefocusedbusinesses

• Closelymonitoringorderlevelsasalways

• Risinginterestrateswilllikelycontinuetoweighonrefinancetransactionsin2017

• Longerterm,expectrefinancevolumestoremainlow

500

1,000

1,500

2,000

2,500

3,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

OpenOrders/Day

2015 2016 2017

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ClosedOrders/Day

2015 2016 2017

PurchaseMarket

8

CurrentTrend

Outlook

• 6%revenuegrowthin2016• Feesperfilegrew6%• Closedorderswereflat

• Homepriceappreciationrobust• Strongbuyerdemand• Lackofforsaleinventoryin

existinghomesakeyfactor

• Expectcontinuedgrowthin2017andbeyond

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

OpenOrders/Day

2015 2016 2017

1,000

1,200

1,400

1,600

1,800

2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ClosedOrders/Day

2015 2016 2017

9

CurrentTrend

Outlook

• Expectstrengthincommercialoverthenext1-3years,albeitbelow2015recordlevels

• Wellpositionednationalplatform

• Seeingcontinuedstrengthacrossmostmarketsandassetclasses

• Overallqualityandsizeofdealsremainhigh,althoughlargepremiumdealshaveslowed

• Capitalavailabilityandforeignflowscontinuetosupportmarket

$inm

illions

AverageRe

venu

epe

rOrder

Closed

Ordersp

erDay

CommercialMarket

465 506598 559

8189

98102

$0

$200

$400

$600

$800

2013 2014 2015 2016

Local NCS661

546595

696

6,9897,652

8,583 8,245

310 309322 318

200

250

300

350

400

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2013 2014 2015 2016

ARPO ClosedOrdersperDay

Objective

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

$-

$700

$1,400

$2,100

$2,800

$3,500

$4,2002000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

MortgageOriginations PretaxMargin

($in

Billion

s)

(1)

(1) Source:MortgageBankersAssociation

TitleInsuranceSegmentMargins

10

CapitalManagementStrategy

11

• CapitalManagementPriorities:

• Makevalue-creating investmentsinourcorebusiness

• Acquirebusinessesthatfitwithinourcorestrategy

• Returnexcesscapitaltoshareholdersthroughdividendsandsharerepurchases

• Maintainadequate capitallevels

• Manageourcapitalstructureprudently

• Maintainamplefinancialflexibilityandholdingcompanyliquidity

Objective:CreateLong-TermShareholderValue

32%

15%

28%

39% 38% 38%46%

0%

20%

40%

60%

2011 2012 2013 2014 2015 2016 2017E

PayoutRatio

Dividends

12

DividendConsiderations:

• FirstAmericanexpectstopayameaningfuldividendgiventhecompany’scashflowgenerationandinvestmentopportunities

• Dividendincreasesshouldbesustainable

• Dividendsarereviewedbytheboardregularly,withastrongeremphasisinthefirstquartertodeterminewhethertoadjustthedividend

• Dividendincreaseswillbedependentuponexpectedholdingcompanycashflows,marketconditionsandalternativeusesofcapital,amongotherfactors

• Thecompanyisnotcommittedtoincreasingthedividendeveryyear

1)CalculatedusingConsensusEPSestimatefor2017.TheConsensusEPSexcludesthepensionterminationimpact

$0.24$0.36

$0.48

$0.84$1.00

$1.20$1.36

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

2011 2012 2013 2014 2015 2016E 2017E

Dividendspershare

(1)

LegalEntityRe-alignmentIncreasedDividendCapacity

2015

FirstAmericanTitle

InsuranceCompany

FirstAmericanFinancialCorp

RepublicTitle(Agent)

FirstAmericanPropertyandCasualty

FirstAmericanData

Company

FirstAmericanTrust

FirstAmericanHomeBuyersProtection

FirstAmericanTitleCompany

– Hawaii(Agent)

FirstAmericanProfessionalRealEstateServices

FirstAmericanTitleCompany

– Texas(Agent)

FirstAmericanTitleCompany

(Agent)

Note:LegalstructureasofJune30,2012;notacompletelistoflegalentities

2012ActualdividendstoHoldingCompanyexcludingFATICO

OtherSubsidiaries $12M

2012

FirstAmericanPropertyandCasualty

OtherSubsidiaries

FirstAmericanData

Company

50%

FirstAmericanFinancialCorp

FirstAmericanTitle

InsuranceCompany

50%

2015ActualdividendstoHoldingCompanyexcludingFATICO

OtherSubsidiaries $83M

13

US$inmillions 2011 2012 2013 2014 2015 2016

BeginningSurplus 868 849 956 996 979 1,104

NetIncome 92 301 199 393 192 150

DividendtoParent (47) (219) (139) (263) (60) -

Other (65) 26 (20) (148) (7) (67)

EndingSurplus 849 956 996 979 1,104 1,187

DividendtoParent:

Cash 45 - 40 - 60 -

Non-cash 2 219 99 263 - -

Total 47 219 139 263 60 -

TotalNon-cashdividendtoParentfortheprior6years 582

1,050 1,013 1,015949

936912

58%

86%

107%121%

147%165%

0%

50%

100%

150%

200%

0

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016Reserves MktSecurities%ofReserves

US$inmillions

849

956 996 9791,104

1,187

105% 73%

54%

28%15% 13%

0%

50%

100%

150%

200%

0

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016Surplus Affiliates%ofSurplus

US$inmillions

EnhancedStatutoryCapital

14

• Recentlycompletedamulti-yearefforttoenhancethefinancialstrengthandflexibilityofthecompany

• ~50%offreecashflowbetween2011-2016wasusedtogrowtheinvestmentportfolio,primarilytostrengthenthesurplusqualityofourprimaryunderwriter- FATICO

• FuturecashflowsatFATICOwillprimarilybeup-streamedtotheholdingcompanyforcapitaldeployment(dividend,M&A,etc.)

12.8%

8.9%11.2%

18.6%

17.4%

19.6%

5%

10%

15%

20%

25%

30%

35%

2011 2012 2013 2014 2015 2016

Debt-to

-Capita

lratio

FinancialCovenant

Debt-to-CapitalRatio

CapitalStructure

• Management’stargetdebt-to-capitalratiois18-20%

– Supportstarget financialstrengthratings

• Nosignificantmaturitiesuntil2023

• Majorityofcurrentdebthasafixedinterestrate

– ThecreditfacilityratefloatsatLIBOR+175basispoints

• FAFhassignificantfinancialflexibilitytoseizestrategicopportunities

AsofDecember31, 2016($inmillions)

4.3%seniornotesdue2023 $248

4.6%seniornotesdue2024 298

Trustdeednotes 27

Othernotes 4

Revolvingcreditfacility 160

Totaldebt $737

Totalequity $3,014

Debt-to-Capitalratio 19.6%

15

ImpactofHigherInterestRates

Insuranceportfolioinvestmentincome

• Yieldonnewinvestmentswillbegreaterthancurrentbookyield

BankingProfitability

• ~40%ofbankingportfolioinfloating-ratesecurities

• Spreadtodepositcostswideninhigherinterestrateenvironment

Reduceddefinedbenefitplanobligations

• Definedbenefitplanshighlysensitivetointerestrates

Greaterinvestmentincomeonescrowbalances

• Depositsatthirdpartybanks

GreaterearningsatFAExchange

Benefits

Decreasedvalueoffixedincomeportfolio

Impacttorefinancevolumes

• Refinancerepresented17%ofdirectrevenuepremiumsin2016

• 2016averagerevenueperorder:

– Refinance:$884

– Resale:$2,146

– Commercial:$8,229

Reducedhousingaffordability

Higherinterestexpenseoncreditfacility

Risks

16

InvestmentConsiderations

• “Pureplay”intitleandmortgagemarkets

• Strongcompetitivepositionintitleandsettlementservices

‒ Continuetopursueprofitablemarketsharegains‒ Strengtheningtheenterprisethroughdatacapabilities

• Recordtitlesegmentmarginswithlonger-termupsideremaining

‒ Expectearningsandmargingrowthaspurchasemarketimproves‒ Anticipatecashflowtoincreasefrombothhigherearningsandlowerpaidclaims

• Strongbalancesheetandfinancialflexibility

‒ Recentlycompletedlegalentityre-alignmentincreasesdividendcapacityandcapitaldeploymentopportunity

• Commitmenttoreturncapitaltoshareholders

‒ Raiseddividend36%in2016

17

TotalShareholderReturn

18Source:Annualizedreturnthrough12/31/2016

FAFTotalShareholderReturn

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

5year

3year

1year 5.2%

12.3%

26.8%

©2015 First American Financial Corporation and/or its affiliates. All rights reserved. q NYSE: FAF

Appendix

BalanceSheet

20

AsofDecember,312016($millions)

Assets

Cash&equivalents $1,006

Investments 5,141

Otherassets 1,589

Goodwill&intangibles 1,096

Totalassets $8,832

Liabilities&Equity

DemandDeposits $2,779

OtherLiabilities 1,275

Reserves 1,026

Debt 737

Equity 3,014

Totalliabilities&equity $8,832

ReturnonEquity

TTMNetincome $343

AverageEquity $2,884

ROE 11.9%

Debt-to-capital 19.6%

Bookvaluepershare $27.42

Tangibleequity $1,918

Statutorysurplus $1,187

InvestmentPortfolio

ConsolidatedPortfolio$5.0Billion

InsurancePortfolio$2.2Billion

BankPortfolio$2.8Billion

21Note:DebtandequitysecuritiesasofSeptember30,2016

USTreasury3%

Gov'tAgency4% Municipal

20%

Corporate18%

Gov'tAgencyMBS44%

Foreign3%

Equity8%

Avg.Rating: AADuration: 3.5BookYield: 2.1%

USTreasury

7%

Gov'tAgency3% Municipal

20%

Corporate35%

Gov'tAgencyMBS11%Foreign

6%

Equity18%

Avg.Rating: AADuration: 3.5BookYield: 2.7%

Gov'tAgency5%

Municipal20%

Corporate5%

Gov'tAgencyMBS70%

Avg.Rating: AADuration:2.9BookYield:1.5%

0

50

100

150

200

250

300

350

400

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

PaidtoDate UltimateLossRatio- PolicyYear PaidLosses- CalendarYear(2)

93%

91% 92% 89%

87%

86%

82%

79%73%

63%52%

44%17%

5.2%

7.6%

9.8%

10.7%

13.5%

6.3%

5.2% 5.1%

3.4% 3.7%

4.8%4.1%

UltimateLossRatiosbyPolicyYear

PaidLossesb

yCalend

arYear($inM

illions)

UltimateLossRatiosb

yPo

licyYear

22

(1) UltimatelossratiosareestimatesandcalculatedasapercentageoftitlepremiumsandescrowfeesforagivenpolicyyearasofDecember31,2016(2)Paidclaimsforecastassumes5%ultimatelossratioand~1%premiumgrowthratefor2017-2018

(2)

(1)

4.4%

7%

Forecast

9.8%

2016IncurredClaimsDetail

ClaimCause ProcessCause

23

Liens(20%)Encumbrances(17%)

Fraud(12%)

BasicRisks(22%)

Other(9%)FileShortages(3%)

DefectiveTitle(8%)

DisputedProcedure(0%)

Escrow/Closing(2%)

GVS/PVII(4%)

Escrow/Closing(6%)

NoError(53%)

Escrow/Closing(27%)

Underwriting(4%)

Exam(9%)

Other(5%)

Unclassified(3%)GVS/PVII(2%)