Washington State is continuing its investigations into title insurance company abuses and expects to complete it soon, according to a spokesman for the Washington Department of Insurance.
Standard & Poor's said yesterday that ratings on the three title insurers that settled with the California Department of Insurance for $37 million will not be affected by the action.
The three companies are First America Corp., Santa Ana, Calif.; LandAmerica Financial Group, Inc., Richmond, Va.; and Fidelity National Financial Inc., Jacksonville, Fla.
The settlement relates to the companies' agreement to end their captive reinsurance arrangements with lenders, builders and real estate agents in exchange for the referral of business.
"The settlements do not have a ratings impact because of the companies' significant financial resources and earnings," the agency said in a statement.
The establishment of the captive reinsurance arrangements is symptomatic of pressures on each of the three leading title insurers to increase or maintain market share in an industry that has a lot of consolidation in recent years, said S&P analyst Donovan Fraser.
Colorado has already settled with title insurers. Meanwhile,
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