First American Financial Net Income Drops

A second quarter rise in insurance claim costs coupled with increased personnel expenses resulted in a 40% drop in second-quarter net income at First American Financial Corp., the company said.

The Santa Ana company, parent of First American Title Insurance Co., reported net income of $3.56 million for the quarter ended June 30, compared with $5.95 million during the year-ago period. At the same time, the company reported record revenues for the second quarter, up 2.6% to $66 million from $64 million.

First American Financial also reported a 46% earnings drop for the first six months, down to $4.73 million from $8.68 million during the year-ago period. Revenues for the six-month period were up 2.7%, to $119.5 million from $116.4 million.