Increased Premiums for Title Insurers in Quarter

Title insurance underwriters saw the volume of premiums written during the second quarter increase by $456 million over the same period last year, according to the American Land Title Association.

There was $2.76 billion in new premiums written, up from $2.3 billion in both 1Q12 and 2Q11.

Michelle Korsmo, ALTA’s chief executive, said, “After a string of quarterly premiums fluctuating up and down with no discernible pattern since the third quarter of 2009, the second quarter of 2012 was the second consecutive quarter with an increase over the equivalent 2011 quarter.”

Operating income was $455 million, up 18% from 2Q11, while loss expense was $45 million, down 17% and operating expenses totaled $369 million, an increase of 16%.

Four states experienced a 35% or more year-over-year increase in title insurance premiums: Hawaii (36.2%), Nebraska (36.2%), Illinois (35.2%) and Utah (35%).

By underwriter, Fidelity National Financial remained No. 1 with $952 million in premiums written, a 34.5% market share. First American did $719 million for a 26.1% market share. Stewart’s volume was $374 million or 13.6% of total volume while Old Republic rounded out the national underwriters with $368 million or a market share of 13.3%.