Stewart Information Services Corp., Houston, Thursday reported net earnings of $2.3 million for 2011, its first annual profit since 2006.
A year ago the title insurance firm lost $12.6 million.
While Stewart saw a decline of almost 8% in title orders for the year, its revenue per file increased over 2010 because of a shift towards more residential home purchases during 2011, and an increase in commercial title orders (for which it can charge higher fees).
Revenues from commercial transactions increased 11% to $103 million.
Title-related losses fell 4.3% for the full year and 10.7% for the fourth quarter. Its title loss provision for the full year was roughly $22 million, covering claims and defalcations. Stewart took a $7 million claims expense in the fourth quarter.
In 4Q the company said it resolved a significant number of large claims from the prior policy year, reducing its inventory and thus cutting its future risk.
Cash claims payments made in 2011 were down 15% over 2010 and losses incurred on known claims fell 11%.
Stewart's real estate information segment – including a real estate owned solutions business and other loan default-related services -- saw revenues increase 26% over 2010. Pretax earnings for 2011 came in at nearly $43 million, up from $39 million one year prior.
