First American Financial discloses $342 million loss on the sale of bonds
By Steve Gelsi
Title insurance and specialty insurance company rebalances its portfolio
First American Financial Corp. said Monday it lost $342 million before tax after selling debt securities, the latest financial services firm to reveal the pain from holdings of bonds that soured in value.
The move by First American Financial (FAF) to rebalance its portfolio is expected to generate an additional $60 million and $70 million per year in interest income, the company said. It didn't disclose the buyer.
First American at the end of June had $828 million of unrealized losses in its investment portfolio, mostly stemming from losses on government agency mortgage-backed securities.
Santa Ana, Calif-based First American Financial sells title insurance and settlement services to the real estate and mortgage industries.
First American Financial's stock rose 0.4% on Monday.
The company's share price has risen 1.4% in 2024, while the S&P 500 has moved up by 14.2%.
-Steve Gelsi
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09-09-24 1056ET
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