ALTA Reports Finalized Q2 Title Insurance Premiums

September 28, 2010

The American Land Title Association announces that its second-quarter Market Share Analysis is now final. ALTA released preliminary results on Sept. 2.

The second quarter of 2010 proved to be profitable for the industry. Operating Income was down 9 percent from the second quarter of 2009 and Loss Expense was up by 12.7 percent, but these were offset by a decrease in Operating Expense of $248 million (10.6 percent), leaving Operating Loss at the same level as 2009. Net Investment Gain was 45 percent less than 2009, leaving Net Income 56 percent lower than the second quarter of 2009, but still positive at $48.3 million.

Consequently, the industry remains in a strong financial position at June 30, with Admitted Assets of over $8.5 billion, including over $7.4 billion in Cash and Invested Assets. Also, Statutory Reserves were almost $5 billion and Statutory Surplus exceeded $2.4 billion.

The second quarter of 2010 ends a string of three consecutive quarters in which Title Premiums Written increased over the prior year’s equivalent quarter, reporting a decline of 8.5 percent compared to the second quarter of 2009. Notable in the second quarter are changes in title insurance underwriter family market share. The Fidelity Family leads the industry with 38.4 percent of the national market, up 1.4 percent from the first quarter. Meanwhile, First American declined 1.7 percent to 26.6 percent, Stewart increased 1 percent to 14.7 percent. Old Republic decreased .1 percent to 10.4 percent and regional companies decreased by .8 percent to 9.9 percent.

ALTA expects to release preliminary third-quarter Market Share Analysis around Dec. 1.

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.