The fourth quarter of 2018 revealed a 14% decline in title orders for the group, highlighting a shift in market activity in the first half of 2019. (Photo: Shutterstock)
Fitch Rating's outlook on the title insurance sector is stable with few rating changes anticipated for title insurers in the next 12-18 months.
The market is poised to become more concentrated later on as the four national underwriters that account for 85% of the total industry premiums — Fidelity National Financial Inc. (FNF), First American Financial Corp., Old Republic International Corp. and Stewart Information Services Corp. (STC) — will decline to three with the announced acquisition of STC by FNF. The New York Department of Financial Services disapproved the acquisition application of STC's New York subsidiary, but both companies are working to gain approval.
Related: N.Y. Dept. of Financial Services issues title insurance regs
|Market predictions
Modestly higher mortgage rates and emerging economic trends are anticipated to put pressure on both revenues and operating earnings in 2019, Fitch's report states. The fourth quarter of 2018 revealed a 14% decline in title orders for the group, highlighting a shift in market activity in the first half of 2019.
“Fitch Ratings expects that profitability will continue to be favorable and supportive of current ratings. Loss ratios are anticipated to remain below historical averages, and title insurers' ability to manage expenses will be a key driver in maintaining operating margins as origination volumes come under pressure,” concludes the report.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
