The title insurance industry is in the middle of a three-year rise in loss ratios, now at the highest point in 10 years, according to data published by Demotech Performance of Title Insurance Companies. During this cycle, despite increasing overall income, net operating gains are down over 25 percent. That amounts to a $250 million drop from 2003 levels. At the same time, the yield on invested assets is at a 10-year low.
Two out of three title companies increased their surplus during the past year, Demotech noted. Some of the largest increases are from industry leaders. Stewart Title Insurance Company, Fidelity National, Chicago Title and First American Title all report double-digit increases in their surplus, averaging over 25 percent more surplus than at this time last year.