SOURCE: Demotech, Inc.

June 19, 2008 06:36 ET

First Quarter Results for Title Industry

COLUMBUS, OH--(Marketwire - June 19, 2008) - The industry financial data reported in the first 2008 Demotech Performance of Title Insurance Companies -- Quarterly Update showed no improvement over the year end results. Not surprisingly, the Industry posted a reduction of 26.93% for Direct Premiums Written comparing first quarter 2008 to same period 2007. Net Operating Results are up for the Top Ten Underwriters while it dropped dramatically for All Other Underwriters. First quarter results do not provide sufficient evidence to forecast 2008 with any accuracy. However, the continuing challenges in the real estate market will affect the 2008 financial results for Title Underwriters.

The Title underwriters' financial results are certainly indicative of the current housing market. With the Fed insinuating rate hikes to offset inflationary pressures of higher fuel costs and continued tighter lending standards, mortgage activity remains hindered. While the industry reported a net income, several underwriters took a loss. Policyholder surplus is down slightly from year end, but the industry's ability to meet losses remains strong.

First Quarter - Quarterly Update

Released June 18th, the first quarter 2008 Quarterly Update includes quarterly marketshare reports and Underwriter GAAP Dashboard Reports, which offer full-page, graphical summaries of corporate financial information. These dashboards present five years of GAAP financial statement data, along with 2008 quarterly results for those Title underwriters associated with publicly traded parent companies. Underwriter GAAP Dashboard Reports facilitate competitive comparisons and are a single reference point to assess the current position as well as the past performance of publicly traded Title insurers.

Title Industry Information and Analysis

The 2008 edition of Demotech Performance of Title Insurance Companies, which includes the associated Quarterly Updates, was distributed in May of 2008 and introduced several publication enhancements, including Jurisdiction Dashboards and new financial ratios examining the implied equity in the Title industry.

Contact Demotech at (800) 354-7207 or visit http://www.demotech.com/ptic for more information regarding Demotech publications and the availability of Title industry data in our Form 9 database for customized research and analysis.

About Demotech, Inc.

Since 1985, Demotech, Inc., a Columbus, Ohio-based financial analysis and actuarial services firm, has provided responsive services to address actuarial and financial analysis issues, whether the issues have been for a particular insurer or prevalent throughout the insurance industry. As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac and HUD, Demotech has been leveling the playing field by offering Financial Stability Ratings® (FSRs) to insurers of all sizes. Demotech applies its broad actuarial and industry experience to its consulting services, which include pricing analysis and loss and loss adjustment expense reserve reviews.

Visit http://www.demotech.com for more information.

Contact Information

  • Joseph L. Petrelli, Jr.
    Chief Operating Officer
    Tel: (800)354-7207
    Email: Email Contact