First American Financial Corporation FAF reported fourth-quarter 2020 operating income per share of $2.11, which beat the Zacks Consensus Estimate by 29.5%. Also, the bottom line improved 17.2% year over year.The purchase and refinance businesses continued to perform well, benefiting from strong order trends and continued focus on cost efficiency. However, expenses witnessed an increase.Behind the HeadlinesOperating revenues of $2.2 billion increased 24.3% year over year on the back of higher agent premiums, direct premiums and escrow fees and information and other revenues. Moreover, the top line beat the Zacks Consensus Estimate by 14.2%.Net investment income, however, decreased 18.1% to $64.5 million.Total expense of $1.8 billion increased 22.8% year over year due to higher personnel costs, premiums retained by agents, provision for policy losses and other claims, depreciation and amortization, interest, and other operating expenses.First American Financial Corporation Price, Consensus and EPS Surprise First American Financial Corporation price-consensus-eps-surprise-chart | First American Financial Corporation QuoteSegment ResultsTitle Insurance and Services: Total revenues increased 24.1% year over year to $1.9 billion. The upside was driven by improved direct premium and escrow fees, increased agent premiums as well as higher information and other revenues, which can be primarily attributed to the recent acquisition of Docutech and growth in mortgage originations that led to higher demand for the company’s title information products.However, pretax margin remained flat year over year at 16.8%.Title open orders increased 40.9% to 354,600 while Title closed orders jumped 31.6% to 295,100, driven by a 75% rise in refinance orders.Average revenue per order decreased 6%, due to shift to refinance transactions.Average revenue per direct title order declined to $2,457, primarily due to shift in the order mix from higher-premium commercial and purchase transactions to lower-premium residential refinance transactions.Average revenue per order for purchase transactions increased 11% while average revenue per order for commercial transactions jumped 2%.Specialty Insurance: Total revenues increased 6.8% year over year to $140.6 million, driven by higher direct premiums and escrow fees.However, pretax margin was 19%, up 230 basis points year over year.The company entered into book transfer agreements to facilitate exit from the property and casualty insurance business in January 2021. The transaction is expected to be completed by the third quarter of 2022.Full-Year HighlightsFull-year 2020 adjusted income of $5.45 per share missed the Zacks Consensus Estimate of $5.62. The bottom line decreased 5.4% year over year.Total revenues increased 14.3% from the year-ago quarter to $7.1 billion and beat the consensus estimate of $6.8 million.Financial UpdateFirst American exited the quarter with cash and cash equivalents of $1.3 billion, down 14.2% from 2019 end. Notes and contracts payable were $1 billion, up 38.8%.Stockholders’ equity was $4.9 billion, up 11.1% from 2019 end.Cash flow from operations was $1.1 billion, up 19% year over year.Return on equity was 14.9%. Debt-to-capital ratio was 23.7.Share Repurchase and Dividend UpdateThe company bought back shares worth $138.6 million. It also raised its dividend twice by 5% each in 2020 to an annual rate of $1.84 per share. The board of directors approved a new $300 million share repurchase program.Zacks RankFirst American currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersOf the insurance industry players that have reported fourth-quarter results so far, The Travelers Companies TRV, W.R. Berkley Corporation WRB and Progressive Corporation PGR beat the Zacks Consensus Estimate for earnings.Zacks Top 10 Stocks for 2021In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.Access Zacks Top 10 Stocks for 2021 today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report First American Financial Corporation (FAF): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research