The title insurance industry in the United States looked a whole lot better in 2014, according to a recent study by Fitch Ratings.
The report found that the aggregate risk-adjusted capital score, a measure created and calculated by Fitch, increased to 183% last year from 168% in 2013. Altogether, this was the sixth consecutive year that the country's four largest title insurers presented solid statutory capital levels.
A 6% increase in stated policyholders' surplus and a 7% decline in targeted policyholder surplus helped to lead the overall improvement.
Fitch noted the positive improvements were slightly offset by what Fitch estimated to be a decrease in statutory reserve adequacy, which led to a 3% rise in adjusted policyholder surplus from 2013.
Generally, Fitch said it found that the title industry's statutory balance sheet loss reserves were overstated and that it expected capitalization to remain near current levels and surplus to stay flat in 2015.
