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- Title Industry Reports Significant Improvement in Revenue and Financial Results
Title Industry Reports Significant Improvement in Revenue and Financial Results
Columbus, Ohio, March 8, 2013: Demotech, Inc. has reviewed year-end 2012 statutory financial data reported by Title underwriters and concluded that the aggregate industry results are favorable. According to Douglas A. Powell, Senior Financial Analyst, “The profitability of Title underwriter operations has been encouraging throughout the year. Title underwriters aggregately reported over $504 million in underwriting gain. Specifically, these results were generated by thirty-four Title underwriters reporting a net underwriting gain, with only eight Title underwriters reporting a net underwriting loss for 2012.”
Mr. Powell continues, “Equally important to note, Title underwriters as a whole continued to maintain a sufficient level of policyholders’ surplus. In fact, aggregate policyholders’ surplus increased nearly 32 percent during 2012. Title underwriters wrote more than $11 billion direct premium in 2012, an increase of over 22 percent from the previous year. In addition to the $3.8 billion of policyholders’ surplus, policyholders should also take comfort in the knowledge that Title underwriters earmarked over $4.4 billion in reserves to pay future claims as of year-end. Based on a review of these results, as well as other performance indicators, aggregately Title underwriters appear to be appropriately capitalized.”
Affirmations or changes to Financial Stability Ratings® (FSRs) assigned to Title underwriters are forthcoming. Visit http://www.demotech.com/ for a complete list of the FSRs assigned to Title underwriters. FSRs are a leading indicator of the financial stability of Title underwriters and present Demotech’s opinion of the ability of an insurer to meet its insurance related obligations based upon an assessment of financial information.
More information regarding the year-end 2012 statutory financial results of Title underwriters is due to be released in the 2013 Edition of Demotech Performance of Title Insurance Companies (PTIC). PTIC is the most complete and thorough industry analysis available. Published annually, PTIC features analysis including market share summaries, detailed statutory financial statements, financial ratios and analysis, current FSRs and corporate contact information for each underwriter. Pre-order your copy by visiting www.demotech.com/PTIC.