Title Industry Posts Loss in 1Q Despite Increase in Refis

In spite of seeing an uptick in business because of the refinance boom during the first quarter, according to data collected by the American Land Title Association, title underwriters had an operating loss of $127.5 million and a net loss of $117.4 million for the first quarter 2009. This compares to operating income of $59.9 million and net income of $224.8 million for the same period last year. The industry also did not benefit from a 49% reduction in loss and loss adjustment expenses for the quarter. The period also was the 12th consecutive quarter where title premiums written declined on a year-over-year basis. But ALTA pointed out it was the first of the 12 where the quarterly decline was less than the prior quarter's decline. In fact, the first-quarter 2009 decline of 25% was less than the first quarter 2008 decline (over 26%), the second quarter 2008 decline (almost 28%), the third quarter decline (over 30%) and the fourth quarter decline of 34%. Title insurers wrote $1.98 billion in premiums during the first quarter of 2009, compared to $2.64 billion in premiums during the same period a year ago. By market share, Fidelity National Financial was the largest group at nearly 45%, followed by First American at 28%, Stewart at 13% and Old Republic at 6%. Those four companies control 92% of the business; the largest regional player, Attorneys' Title Insurance Fund, has a market share of under 2%.