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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 29, 2016 11:36 AM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit ratings (ICR) of “a-” for the member companies of Stewart Title Group (Stewart). A.M. Best also has affirmed the ICR of “bbb-” for the parent holding company, Stewart Information Services Corporation (headquartered in Houston, TX) [NYSE: STC]. The outlook for each of these ratings remains stable. (See below for a detailed listing of the companies and ratings.)
The affirmation of the organization’s ratings is based on its favorable risk-adjusted capitalization, continued positive operating results and continued solid pre-tax earnings in 2015, following similar favorable results in 2014, as well as its significant business profile as the fourth-largest writer of title insurance in the United States.
Stewart’s favorable risk-adjusted capitalization is evidenced by fairly moderate underwriting and premium leverage ratios. The premium to surplus ratio trended higher after two years of declines. This was due partly to an increase in premiums written in 2015 compared with 2014. Stewart’s solid underwriting and operating results in 2015 were helped by lower claims volume, as well as continued expense management efforts.
Specifically driving the positive operating performance trends in 2015, as in 2014 and 2013, was the continued improvement in Stewart’s loss experience from active agents. This favorable loss trend can be seen in a declining loss and loss adjustment expense incurred ratio since 2011. The expense ratio has also been generally trending favorably as a result of numerous expense initiatives undertaken in recent years.
Further upward movement in the rating or outlook will depend on the company sustaining the positive underwriting performance trend along with maintenance of favorable risk-adjusted capitalization. Conversely, significant deterioration in operating performance or significant erosion in risk-adjusted capitalization levels may result in downward movement in the rating or outlook.
The FSR of A- (Excellent) and the ICRs of “a-” have been affirmed for the following members of Stewart Title Group:
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.