Title Underwriters Are Ready to Support Real Estate Recovery
Columbus, Ohio, November 23, 2011: September 30, 2011 results indicate that Title underwriters may be exhibiting stabilization, as Title underwriters reported approximately $3 billion in policyholders’ surplus, a 2.9 percent increase over December 31, 2010.
“Although a couple of well-publicized defalcations have impacted two regional Title underwriters, they too continue to review, defend or honor claims. This fact underscores the Title industry’s ability to support a recovery of the housing and commercial real estate markets by insuring the marketability of Title,” said Joseph L. Petrelli, President of Demotech, Inc.
Over the period December 31, 2010 through September 30, 2011, 27 of the 44 Title underwriters reviewed and rated by Demotech reported an increase in net worth. It is important to note that all Title underwriters reviewed and rated by Demotech continue to honor and pay claims and possess financial stability relating to positive policyholders’ surplus.
As a group, the Title underwriters currently assigned a Financial Stability Rating® (FSR) increased their liquidity and leverage positions period over period as well. At December 31, 2010, rated Title underwriters had a liquidity ratio of 1.33 and a leverage ratio of 1.91. At September 30, 2011, rated Title underwriters improved to a liquidity ratio of 1.36 and a leverage ratio of 1.82. For these 44 rated underwriters, cash and invested assets exceeded liabilities by nearly $2 billion.
Contact dpowell@demotech.com for the exhibit of the Title underwriters included in deriving these results.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech has been serving the insurance industry by providing accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters. Our rating process provides an objective baseline and insight into the future solvency of a company. As an independent financial analysis firm, Demotech has a proven track record of predicting financial stability in the insurance industry and has been leveling the playing field by offering FSRs to insurers of all sizes. Our ability to identify financially stable insurers has been demonstrated through comparisons to other rating services as well as through independent studies.
Visit www.demotech.com for more information.