Total revenues for the second quarter of 2009 were $1.5 billion, a decrease of 9 percent relative to the second quarter of 2008 and an increase of 12 percent relative to the first quarter of 2009. Net income was $70.3 million, or 75 cents per diluted share, compared with $19.6 million, or 21 cents per diluted share, in the second quarter of 2008. The current quarter results include net realized investment losses of $13.1 million, or 14 cents per diluted share, net of tax. Results for the second quarter of 2008 include net realized investment losses, employee separation costs and restructuring costs totaling $32.4 million, or 35 cents per diluted share, net of tax.

   Current Quarter Highlights   --  Adjusted earnings per diluted share of 89 cents, or 75 cents including       net realized investment losses   --  Financial Services and Information Solutions Groups experienced pretax       earnings growth relative to both the second quarter of 2008 and the       first quarter of 2009   --  Title Insurance and Services segment adjusted pretax margin of 8.2       percent, or 6.6 percent including net realized investment losses   --  Cash flow from operations was $170.9 million in the second quarter,       versus $71.2 million in the prior year   --  Debt-to-capital ratio was 20.8 percent as of June 30, 2009    --  Offer made to acquire minority interest in First Advantage Corporation    

"First American showed meaningful revenue and earnings improvement led by continued enhancement in the performance of our title insurance business and steady growth in our Information Solutions Group," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "The company continues to build its capital base and is making progress on the split of our Financial Services and Information Solutions businesses, which we expect to occur during the first half of 2010."

Financial Services Group

"Led by significant advances in our residential title businesses, our Title Insurance and Services segment demonstrated considerable earnings improvement during the quarter," stated Dennis J. Gilmore, chief executive officer of the company's Financial Services Group. "Though encouraged by the progress we have made, we maintained our focus on improving the profitability and efficiency of our business."

   Current Quarter Highlights:   --  Financial Services Group pretax income was $63.5 million, compared       with $7.7 million in the prior year    --  Title Insurance and Services segment adjusted pretax margin of 8.2       percent, or 6.6 percent including net realized investment losses    

Title Insurance and Services. During the second quarter of 2009, total revenues in the Title Insurance and Services segment were $935.3 million, a 16 percent decrease from the same quarter of 2008. The decrease was due to a decline in the average revenue per order closed, offset by an increase in the number of title orders closed. The company's direct operations closed 438,100 title orders for the second quarter of 2009, an increase of 9 percent, when compared with 401,200 title orders closed in the second quarter of 2008. Average revenue per direct title order was $1,302, an 18 percent decline relative to the second quarter of 2008.

Salary and other personnel costs were $283.5 million, an 18 percent decrease, compared with the second quarter of 2008, primarily due to employee reductions. Other operating expenses were $223.0 million, a decrease of 21 percent, compared with the second quarter of 2008. The decrease was primarily due to a decline in title production costs, lower occupancy costs and other cost-containment programs. The company continued to realize operational efficiencies by leveraging its centralized onshore and offshore capabilities.

The loss provision for claims during the second quarter of 2009 was 6.5 percent of operating revenues, compared with 6.3 percent in the second quarter of 2008. The current quarter rate reflects the expected claims experience for policy year 2009, with no reserve estimate adjustments required for prior policy years.

Pretax income for the Title Insurance and Services segment was $62.2 million in the second quarter of 2009, compared with a pretax loss of $1.0 million in the second quarter of 2008. Results for the current quarter include net realized investment losses of $15.5 million. Results for the second quarter of 2008 include net realized investment losses, employee separation costs and lease termination costs totaling $51.8 million.

Specialty Insurance. Total revenues at First American's Specialty Insurance segment were $64.4 million in the second quarter of 2009, a 16 percent decrease relative to the second quarter of 2008, reflecting a decline in business volume at both the property and casualty insurance business and the home warranty business. Pretax income was $1.3 million in the second quarter of 2009, compared with $8.7 million in the second quarter of 2008. Results for the second quarter of 2008 include net realized investment losses of $6.3 million.

Information Solutions Group

"The Information Solutions Group increased pretax earnings by more than 27 percent as we experienced revenue growth from market share gains, adoption of new products and higher origination-related transaction levels, while maintaining our keen focus on efficiency," stated Frank V. McMahon, chief executive officer of the company's Information Solutions Group. "We also announced the intention to acquire the minority interest in First Advantage and completed our acquisition of BasePoint Analytics, both of which will enhance our ability to develop cutting-edge analytic solutions for our clients."

   Current Quarter Highlights:   --  Information Solutions Group generated revenues of $570.7 million, an       8.1 percent increase relative to the prior year   --  Information Solutions Group pretax income was $115.3 million, a 27.2       percent increase relative to the prior year   --  Information and Outsourcing Solutions segment pretax margin of 24.9       percent   --  Data and Analytic Solutions segment pretax margin of 21.8 percent    --  Offer made to acquire minority interest in First Advantage Corporation    

Information and Outsourcing Solutions. Total revenues at the Information and Outsourcing Solutions segment were $259.7 million in the second quarter of 2009, a 34 percent increase from the prior year. The increase was primarily due to an acquisition of a previously unconsolidated investment, as well as market share gains and an increase in volume at the appraisal and the default-related businesses. Pretax income during the quarter was $64.6 million, a 43 percent increase from the prior year.

Data and Analytic Solutions. Total revenues at the Data and Analytic Solutions segment were $133.0 million in the second quarter of 2009, a 3 percent decrease relative to the second quarter of 2008. Revenues associated with sales of property information, as well as analytic products were down relative to the same period in the prior year. These decreases were primarily due to the continued deterioration of the segment's customer base due to economic conditions, the ongoing tightening of the credit markets and the higher cancellation rate from clients on subscription revenues. These decreases were offset in part by increased demand for title and document products due to improved loan origination activity. Pretax income was $29.0 million in the second quarter of 2009, an 18 percent increase relative to the second quarter of 2008.

Risk Mitigation and Business Solutions. Total revenues at the Risk Mitigation and Business Solutions segment were $178.0 million in the second quarter of 2009, a 10 percent decrease relative to the second quarter of 2008. The overall decrease in revenue is directly related to the downturn in domestic and international hiring, the decline in the mortgage industry, weakness in the credit markets and the overall economic slowdown. These events led, in particular, to revenue decline in the credit, employer, multifamily and investigative/litigation support lines of business. These declines were offset to an extent by increased revenues in 2009 due to improvements in the segment's lead generation business. Pretax income was $21.7 million in the second quarter of 2009, compared with $21.0 million in the second quarter of 2008.

Teleconference/Webcast

First American's second quarter results will be discussed in more detail on Thursday, July 30, 2009, at 11 a.m. ET, via teleconference. The toll-free dial-in number is (888) 790-3384. Callers from outside the United States may dial (630) 395-0148. The pass code for the event is FIRST AMERICAN.

The live audio webcast of the call and the accompanying slide presentation will be available on First American's Web site at http://www.firstam.com/investor. An audio replay of the conference call will be available through Aug. 7, 2009, by dialing (203) 369-1047. An audio archive of the call and the accompanying financial presentation will also be available for replay on First American's investor Web site.

About First American

The First American Corporation is a FORTUNE 500 company that traces its history to 1889. With total revenues of approximately $6.2 billion in 2008, it is America's largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people's lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions.