SCHEDULE II

1 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED BALANCE SHEETS

(in thousands, except par values)

	December 31,
	2016			2015
Assets
Cash and cash equivalents	$	221,519		$	289,791
Due from subsidiaries, net		77,557			21,430
Income taxes receivable		67,970			1,067
Investment in subsidiaries		3,897,995			3,478,704
Deferred income taxes		20,037			22,020
Other assets		85,709			92,633
	$	4,370,787		$	3,905,645
Liabilities and Equity
Accounts payable and other accrued liabilities	$	39,069		$	58,483
Pension costs and other retirement plans		359,057			413,206
Income taxes payable		10,376			7,576
Deferred income taxes		242,158			128,053
Notes and contracts payable		705,778			545,204
		1,356,438			1,152,522
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none		—			—
Common stock, $0.00001 par value; Authorized—300,000 shares;
Outstanding—109,944 shares and 109,098 shares		1			1
Additional paid-in capital		2,191,756			2,150,813
Retained earnings		1,046,822			838,149
Accumulated other comprehensive loss		(230,400	)		(239,003	)
Total stockholders’ equity		3,008,179			2,749,960
Noncontrolling interests		6,170			3,163
Total equity		3,014,349			2,753,123
	$	4,370,787		$	3,905,645

See notes to condensed financial statements

SCHEDULE II

2 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF INCOME

(in thousands)

	Year Ended December 31,
	2016		2015			2014
Revenues:
Dividends from subsidiaries	$	46,422	$	142,522		$	342,488
Other income (losses)		5,809		(6,001	)		6,412
		52,231		136,521			348,900
Expenses:
Other expenses		44,592		36,233			33,959
Income before income taxes and equity in undistributed earnings of subsidiaries		7,639		100,288			314,941
Income taxes		2,145		33,346			104,523
Equity in undistributed earnings of subsidiaries		337,982		221,928			23,797
Net income		343,476		288,870			234,215
Less: Net income attributable to noncontrolling interests		483		784			681
Net income attributable to the Company	$	342,993	$	288,086		$	233,534

See notes to condensed financial statements

SCHEDULE II

3 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Year Ended December 31,
	2016			2015			2014
Net income	$	343,476		$	288,870		$	234,215
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on securities		(10,359	)		(27,312	)		19,638
Foreign currency translation adjustment		(6,334	)		(36,822	)		(16,694	)
Pension benefit adjustment		25,300			24,223			(56,496	)
Total other comprehensive income (loss), net of tax		8,607			(39,911	)		(53,552	)
Comprehensive income		352,083			248,959			180,663
Less: Comprehensive income attributable to noncontrolling interests		487			770			691
Comprehensive income attributable to the Company	$	351,596		$	248,189		$	179,972

See notes to condensed financial statements

SCHEDULE II

4 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Cash (used for) provided by operating activities	$	(26,682	)	$	133,022		$	54,298
Cash flows from investing activities:
Net cash effect of acquisitions		—			(19,069	)		(151,570	)
Contributions to subsidiaries		(106,818	)		—			(11,396	)
Net change in other investments		204			867			1,490
Return of capital from subsidiaries		32,500			—			—
Capital expenditures		—			(22	)		—
Cash used for investing activities		(74,114	)		(18,224	)		(161,476	)
Cash flows from financing activities:
Net proceeds from issuance of debt		160,000			—			593,943
Repayment of debt		—			—			(300,000	)
Repayment of debt to subsidiaries		—			(60,000	)		—
Excess tax benefits from share-based compensation		3,415			9,526			6,856
Net proceeds in connection with share-based compensation plans		1,104			5,042			3,601
Purchase of Company shares		(454	)		—			—
Cash dividends		(131,541	)		(108,524	)		(89,939	)
Cash provided by (used for) financing activities		32,524			(153,956	)		214,461
Net (decrease) increase in cash and cash equivalents		(68,272	)		(39,158	)		107,283
Cash and cash equivalents—Beginning of period		289,791			328,949			221,666
Cash and cash equivalents—End of period	$	221,519		$	289,791		$	328,949

See notes to condensed financial statements

SCHEDULE II

5 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1. Description of the Company:

First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company financial statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K.

NOTE 2. Dividends Received:

The holding company received cash dividends from subsidiaries of $46.4 million, $142.5 million and $79.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.