Exclusive excerpt from the 2014 Edition of Demotech Performance of Title Insurance Companies
By Douglas Powell, senior financial analyst, Demotech, Inc. and Paul Osborne, senior financial analyst, Demotech, Inc.
A major determinant of the financial stability of a title underwriter is an evaluation of critical financial stability ratios benchmarked against financial stability tests and the representative historical operating results of the insurer. Based upon a review of these key metrics and rating indicators, title underwriters collectively improved their overall financial stability in 2013. The underwriting and overall profitability of title underwriters has improved when comparing 2013 to the most recent reported years. Equally as important to note, title underwriters have continued to maintain a sufficient level of policyholders’ surplus and are adequately capitalized as a whole.