A.M. BestTV: Positive News in Housing Market Helps Bolster U.S. Title Sector

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FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 28, 2016 11:59 AM (EDT)
In this ^A.M.BestTV episode, A.M. Best’s Stephen Ruane, senior financial analyst, and Connor Brach, associate analyst, said that while title insurers’ loss and expense ratios dipped in 2015, surplus grew 3.9%, more than doubling the prior-year growth. Click on http://www.ambest.com/v.asp?v=title1016 to view the entire program.

Ruane discussed what impact the improving U.S. housing market has had on the title insurance sector.

“Title insurance companies have a few positive things working for them,” said Ruane. “With the economy improving, housing starts have increased, companies are receiving more commercial real estate, refinancing is somewhat down this year, with A.M. Best expecting this to continue into next year, and companies are benefiting from releases of prior-year claims reserves.”

Brach focused on what the sector needs to do to remain vibrant.

“Insurers will need to maintain underwriting discipline and adequate reserve practices,” said Brach. “They also should continue to invest in technology and automation, since those investments have resulted in a 10-point reduction in their expense ratio over the past few years.”

The entire Best Special Report, titled, “Title Sector Delivers Strong Operating Performance,” can be viewed at http://www3.ambest.com/bestweek/purchase.asp?record_code=254344 .

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^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^A.M.BestTV episodes at http://www.ambest.tv.

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