First American Profit

First American Financial Corp.’s fourth-quarter earnings may beat analysts’ forecasts if the usual year-end jump in commercial real estate purchases occurs, said Parker S. Kennedy, president of the largest U.S. title insurance company. Santa Ana-based First American’s growing commercial real estate business could be the key to a boost in fourth-quarter earnings, Kennedy said. Five analysts surveyed by First Call Corp. are forecasting fourth-quarter earnings of 66 cents per share, and “the chances are more likely that we would have an upside surprise than a downside surprise,” Kennedy said.

The pace of commercial real estate closings typically rises in the final weeks of the fourth quarter as companies rush to straighten out their accounts before the end of the year.

Title insurance companies such as First American collect their premiums when real estate transactions are closed. Title insurance protects property owners and lenders against competing claims on property. It’s required on practically all mortgages.

“This year [commercial title insurance] is a particularly strong segment of our business--our market share is improving and the general economic conditions are very favorable,” Kennedy said.