Stewart Reports Third-quarter Results
October 29, 2024
Stewart Information Services Corp. reported its title insurance segment generated $45 million in pretax income during the third quarter of 2024. This compared to $35 million in pretax income during the same period a year ago.
"We are proud of our third quarter results as they reflect continued progress on our journey,” said aid Fred Eppinger, Stewart’s chief executive officer. “Strong topline performance in several lines of business resulted in improved third quarter results when compared to the same quarter last year, even as residential purchase market conditions remain difficult given macro-economic impacts. We remain focused on investing in ourselves to better the company and our customers and remain dedicated to prioritizing our pursuit of growth and margin improvement across all lines of business."
Total title segment employee costs and other operating expenses increased by $14.6 million in the third quarter of 2024 compared to the prior year quarter. Stewart attributed the increase primarily to higher outside search and incentive compensation expenses related to higher commercial revenues.
“This has been an interesting quarter for both the economy at large and housing in the U.S.,” Eppinger said. “While inventory has continued to improve over the past several months, the sentiment improved temporarily. The trend of historical low housing volumes lingers with just 2.5% of homes changing hands year-to-date through August, one of the lowest turnover rates we have experienced in the U.S. in decades.
“Our view remains, however, that 2025 will be a transitional year, leading to a more normal housing market in 2026 which we define as five million of existing homes sold on an annual basis.”
Stewart’s direct operations opened 87,464 orders during the third quarter and closed 59,375 orders. This compared to 81,267 direct orders opened and 60,308 orders closed during Q3 2023.
The company paid $21.3 million in claims during the latest quarter. This was down slightly from $22.3 million in claims paid during the same period a year ago.
“We've been diligent in managing our direct operations segment to protect our corner of the market and our margin as this segment most immediately feels the impact of a suppressed residential housing market,” Eppinger said. “Strategically, our direct operation business remains focused on expansion efforts in targeted MSAs through both organic and inorganic means. We keep a pulse on the markets we are in as well as those we're not to ensure we are operating to our fullest potential across the country.”
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