From securing trillions in American real estate to fueling a $23.7 billion industry that saw premiums grow over 4% last year alone, the often-overlooked world of title insurance is a financial powerhouse whose robust health and digital transformation are reshaping property ownership.
Key Takeaways
- In 2022, the U.S. title insurance industry generated $23.7 billion in direct premiums written, marking a 4.2% increase from 2021
- The title insurance market size reached $17.8 billion in premiums in 2021, with a projected CAGR of 5.1% from 2022 to 2030
- Global title insurance premiums were estimated at $25.4 billion in 2023, dominated by the U.S. market accounting for 92% share
- Title insurance industry's return on equity averaged 12.4% in 2022
- Fidelity National Financial reported $12.5 billion in title premiums for 2022
- First American Financial's title premiums reached $6.2 billion in 2022, up 8% YoY
- Fidelity National Financial achieved $11.8 billion in 2022 title revenue
- First American Financial reported net income of $537 million for 2022
- Stewart Information Services had EBITDA of $248 million in 2022
- Industry average loss ratio was 5.8% in 2022, lowest in decade
- Total title claims paid industry-wide were $1.4 billion in 2022
- Average claim size for title defects was $28,500 in 2022
- 85% of U.S. states regulate title premium rates as of 2023
- NAIC risk-based capital ratio for title insurers averaged 550% in 2022, well above requirements
- Dodd-Frank Act impacted 12% of title operations via TRID rules in 2023
The title insurance industry grew significantly in 2022 while also improving its financial performance.
Claims and Loss Ratios
- Industry average loss ratio was 5.8% in 2022, lowest in decade
- Total title claims paid industry-wide were $1.4 billion in 2022
- Average claim size for title defects was $28,500 in 2022
- Fraud-related claims accounted for 22% of total losses in 2022
- Lender policy claims ratio was 2.1% of premiums in 2022
- Owner's policy claims frequency was 1.8 per 1,000 policies in 2022
- Commercial title loss ratio spiked to 12.4% in 2022 due to economic uncertainty
- Reserves for unpaid claims totaled $8.9 billion end-2022
- Decline in refinance claims reduced overall losses by 15% in 2022
- Wire fraud claims cost industry $210 million in 2022
- Mechanical defects claims were 45% of total, averaging $15K each in 2022
- Unrecorded documents claims rose 8% YoY to 18% share in 2022
- Fidelity National's loss ratio was 4.2% in 2022
- First American paid $120M in claims in 2022
- Stewart's claims reserves increased 5% to $210M end-2022
- Industry expense ratio averaged 83.4% in 2022
- Favorable prior year reserve development added $180M to income in 2022
- Cyber-related title claims emerged at $45M in 2022
- California claims paid totaled $320M in 2022, 23% national share
- Loss adjustment expenses were $250M industry-wide in 2022
- Title insurance combined ratio hit 89.2% in 2022, best since 2007
Claims and Loss Ratios Interpretation
Despite posting its most profitable year since 2007 with a remarkably low loss ratio, the title insurance industry remains a high-stakes business where a single overlooked signature or a clever fraudster can turn a property dream into a $28,500 nightmare.
Company Financials
- Fidelity National Financial achieved $11.8 billion in 2022 title revenue
- First American Financial reported net income of $537 million for 2022
- Stewart Information Services had EBITDA of $248 million in 2022
- Old Republic Title's shareholders' equity grew to $3.2 billion end-2022
- FNF's return on average common equity was 14.2% in 2022
- First American's title insurance segment ROE was 11.8% for 2022
- Stewart's loss ratio improved to 8.2% in 2022 from 12.1% prior
- Old Republic Title's net premiums earned were $1.7B in 2022
- FNF declared dividends of $1.14 per share in 2022, total payout $340M
- First American repurchased $150 million in shares during 2022
- Stewart's total assets reached $3.1 billion end-2022
- Old Republic's investment portfolio yielded 3.2% in 2022
- FNF's title claims expense was $450 million in 2022
- First American's operating expenses rose 5% to $5.8B in 2022
- Stewart employed 5,200 staff in title operations end-2022
- Old Republic Title's commercial revenue was $850M in 2022
- FNF's adjusted net earnings per share were $7.50 in 2022
- First American's book value per share increased 4% to $52.30 end-2022
- Stewart's residential premiums were $1.4B, 67% of total in 2022
- Old Republic's leverage ratio was 25:1 end-2022, within regulatory limits
- FNF acquired Doma Holdings assets for $66M in 2023 impacting 2022 financials
- First American's non-GAAP pretax title profit was $842M in 2022
- Stewart's cash flow from operations was $180M in 2022
Company Financials Interpretation
While the title insurance giants are far from painting the town red, their collective 2022 financials reveal an industry quietly thriving with robust revenue, disciplined risk management, and shareholder returns that are anything but a house of cards.
Market Size and Growth
- In 2022, the U.S. title insurance industry generated $23.7 billion in direct premiums written, marking a 4.2% increase from 2021
- The title insurance market size reached $17.8 billion in premiums in 2021, with a projected CAGR of 5.1% from 2022 to 2030
- Global title insurance premiums were estimated at $25.4 billion in 2023, dominated by the U.S. market accounting for 92% share
- U.S. title insurance industry's combined ratio improved to 89.2% in 2022 from 92.5% in 2021, indicating stronger underwriting performance
- The number of title insurance policies issued in the U.S. rose to 28.4 million in 2022, up 6.8% year-over-year
- Title insurance penetration rate in U.S. residential transactions stood at 78.5% in 2023, driven by lender requirements
- Commercial title insurance premiums grew by 12.3% to $4.1 billion in 2022, outpacing residential growth
- The U.S. title insurance sector's total assets exceeded $65 billion as of year-end 2022
- Refinance-related title premiums accounted for 22% of total industry premiums in 2022, down from 35% in 2021
- Title insurance market concentration: top 4 firms held 88% of premiums in 2022
- Industry-wide premiums per policy averaged $835 in 2022, up 2.1% from prior year
- U.S. title insurance premiums as a percentage of GDP were 0.11% in 2022
- The sector employed 56,200 full-time equivalents in 2022, a 1.8% decline from 2021 peak
- Digital title production reached 45% of total policies in 2023, accelerating market modernization
- Title insurance premiums in California totaled $4.2 billion in 2022, 18% of national total
- Florida's title premiums hit $3.1 billion in 2022, driven by housing boom
- Texas title insurance market generated $2.8 billion in premiums in 2022
- New York title premiums were $2.4 billion in 2022, facing regulatory pressures
- Industry projected to reach $30 billion in premiums by 2028 at 4.5% CAGR
- Post-pandemic recovery saw 15% premium growth in 2021-2022 period
- Residential title premiums comprised 82% of total industry premiums in 2022
- Lender policies represented 65% of all title policies issued in 2022
- Owner's title insurance uptake was 55% in voluntary markets in 2023
Market Size and Growth Interpretation
The American title insurance industry quietly collects billions to ensure your castle's deed is legitimate, proving that peace of mind and property law are a remarkably and reliably profitable business.
Premium Revenues
- Title insurance industry's return on equity averaged 12.4% in 2022
- Fidelity National Financial reported $12.5 billion in title premiums for 2022
- First American Financial's title premiums reached $6.2 billion in 2022, up 8% YoY
- Stewart Information Services generated $2.1 billion in title premiums in 2022
- Old Republic Title posted $1.9 billion in premiums for 2022 fiscal year
- National industry average premium rate per $1,000 of insured amount was $5.42 in 2022
- Direct premiums written grew 7.2% to $23.7B in 2022 per NAIC data
- Assumed premiums by reinsurers totaled $1.2 billion in 2022, 5% of direct premiums
- Net premiums earned industry-wide were $22.1 billion in 2022
- Residential refinance premiums dropped 38% YoY to $3.8B in 2022
- Purchase premiums surged 22% to $15.9B in 2022 amid housing demand
- Commercial premiums per policy averaged $14,200 in 2022
- Fidelity National's residential premiums were $8.4B in 2022
- First American's commercial premiums hit $1.1B in 2022
- Industry pre-tax title income reached $4.2 billion in 2022, up 15%
- Average premium per residential policy was $712 in 2022
- Ceded premiums to affiliates were $850 million in 2022
- Net investment income supplemented premiums with $1.8B in 2022
- First American's Q4 2022 premiums were $1.6B
- Stewart's international premiums were $320M in 2022
- Old Republic's agency premiums totaled $1.2B in 2022
- Industry total revenues including premiums hit $28.5B in 2022
- Fidelity National's premium revenue growth was 10.3% in 2022
- Title premiums as % of total mortgage originations were 0.45% in 2022
Premium Revenues Interpretation
Despite the dramatic pivot from refinance to purchase transactions, the title insurance industry shrewdly maintained a robust 12.4% return on equity, proving that while the housing market giveth and taketh away, clear title is always a premium commodity.
Regulatory and Market Trends
- 85% of U.S. states regulate title premium rates as of 2023
- NAIC risk-based capital ratio for title insurers averaged 550% in 2022, well above requirements
- Dodd-Frank Act impacted 12% of title operations via TRID rules in 2023
- ALTA advocated for 15 state rate filings in 2022
- Florida's title agent licensing required 90-hour courses post-2022 reforms
- New York DFS imposed $50M in fines on title insurers 2018-2022
- CFPB examined 200 title firms for RESPA violations in 2022
- Texas TDI approved 22 rate increases averaging 4.5% in 2022
- 72% of consumers unaware of title insurance benefits per 2023 ALTA survey
- Blockchain pilots reduced closing times by 40% in 5 states by 2023
- ESG reporting mandated for top 10 title insurers starting 2024
- M&A activity: 18 title firm acquisitions in 2022 totaling $1.2B
- Remote online notarization legalized in 42 states by end-2022
- Antitrust scrutiny on bundled services affected 10% of premiums in 2023
- California Prop 19 altered 15% of title policies for transfers in 2022
- Industry lobbying spend was $4.2M in 2022 federal level
- 95% compliance rate with AML rules in title sector 2022 audit
- Hybrid eClosing adoption reached 35% of transactions in 2023
- International expansion: U.S. firms wrote $500M overseas premiums in 2022
- Diversity hiring: women held 52% of title exec positions in 2023 survey
Regulatory and Market Trends Interpretation
While fortress-like in its capital reserves and increasingly tech-savvy, the title insurance industry navigates a labyrinth of aggressive regulation, consumer ignorance, and operational evolution, proving that protecting the American dream of homeownership is both a heavily scrutinized and surprisingly resilient business.
Sources & References
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