Equity Securities

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

NOTE 4. Equity Securities:

Investments in equity securities, by accounting classification, are summarized as follows:


	December 31,
(in millions)	2025		2024
Marketable equity securities	$	477.6	$	386.8
Non-marketable equity securities		273.5		202.4
Equity method investments		98.0		102.1
	$	849.1	$	691.3

Investments in marketable equity securities are summarized as follows:


(in millions)	Cost		Unrealized gains (losses)			Estimated fair value
December 31, 2025
Common stocks	$	457.9	$	9.8		$	467.7
Preferred stocks		9.0		0.9			9.9
	$	466.9	$	10.7		$	477.6
December 31, 2024
Common stocks	$	397.3	$	(22.6	)	$	374.7
Preferred stocks		12.0		0.1			12.1
	$	409.3	$	(22.5	)	$	386.8

Net gains of $51.1 million and $4.3 million resulting from changes in the fair values of marketable equity securities were recognized for the years ended December 31, 2025 and 2024, respectively, which included net unrealized gains of $47.9 million and $0.9 million on securities still held at December 31, 2025 and 2024, respectively. Included in net gains during the years ended December 31, 2025 and 2024 were unrealized losses of $8.4 million and $37.9 million, respectively, related to the Company's investment in Offerpad Solutions Inc., a tech-enabled real estate company.

A summary of the changes in the carrying amounts of non-marketable equity securities, which primarily relate to the Company's venture investment portfolio, for the years ended December 31, 2025 and 2024, is as follows:


	Year ended December 31,
(in millions)	2025			2024
Carrying amount, beginning of period	$	202.4		$	224.1
Net additions		45.0			6.0
Gross unrealized gains		35.3			1.5
Gross unrealized losses and impairments		(9.2	)		(29.2	)
Carrying amount, end of period	$	273.5		$	202.4

Cumulative gross unrealized gains and cumulative gross unrealized losses and impairments related to non-marketable equity securities at December 31, 2025 and 2024, are summarized as follows:


	December 31,
(in millions)	2025		2024
Cumulative gross unrealized gains	$	280.1	$	244.8
Cumulative gross unrealized losses and impairments	$	360.8	$	351.6

First American Financial Corp 10-K