ORTIC has strong liquidity and reserving practices, among the most conservative in the title industry, Best said. Because two-thirds of premiums and fees are generated through independent agents, ORTIC can “somewhat better manage down cycles as fixed costs are generally lower for that distribution channel.”
The upgrade in outlook is due to improved risk-adjusted capitalization and decline in premium leverage.
ORTIC has moved from fourth in market share to third, according to American Land Title Association data. That growth is combined with improved underwriting performance, Best noted, and it also has allowed it to become more competitive.
But offsetting the good news are the challenges the group faces in order to maintain its positive trend of improved operating performance and risk-adjusted capitalization as it manages potential earnings volatility due to recently rising mortgage interest rates and an ever-evolving real estate market,” Best said.