Stewart Information Services Corporation (NYSE:STC) Q1 2025 Earnings Conference Call April 24, 2025 8:30 AM ET Company Participants Kathryn Bass - Director of Investor Relations Frederick Eppinger - Chief Executive Officer David Hisey - Chief Financial Officer Conference Call Participants Bose George - KBW John Campbell - Stephens Inc. Operator Hello and thank you for joining the Stewart Information Services First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. Later, y ...

Exhibit 99.1 NEWS RELEASE STEWART INFORMATION SERVICES CORP. CONTACT P.O. Box 2029 Kathryn Bass / Brian Glaze Houston, Texas 77252-2029 Investor Relations www.stewart.com (713) 625-8633 Stewart Reports First Quarter 2025 Results HOUSTON, April 23, 2025 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $3.1 million ($0.11 per diluted share) for the first quarter 2025, compared to net income attributable to Stewart of $3.1 million ($0.11 per diluted sh ...

Total revenues of $612.0 million ($608.9 million on an adjusted basis) compared to $554.3 million ($547.3 million on an adjusted basis) in the prior year quarter Net income of $3.1 million ($7.0 million on an adjusted basis) compared to net income of $3.1 million ($4.6 million on an adjusted basis) in the prior year quarter Diluted EPS of $0.11 ($0.25 on an adjusted basis) compared to prior year quarter diluted EPS of $0.11 ($0.17 on an adjusted basis)HOUSTON, April 23, 2025 /PRNewswire/ -- Stewart Inform ...

HOUSTON, March 3, 2025 /PRNewswire/ -- Stewart Information Services Corporation (NYSE:STC) today announced that its Board of Directors declared a cash dividend of $0.50 per share for the first quarter 2025, payable March 31, 2025, to common stockholders of record on March 17, 2025. About StewartStewart Information Services Corporation (NYSE:STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companie ...

Company Overview - Stewart Information Services Corporation operates in three segments: title insurance and related services, real estate solutions, and corporate[13]. - The corporate segment included results from a real estate brokerage company acquired in late 2021 and sold in Q2 2022[35]. Title Insurance Segment - The title segment includes services such as searching, examining, closing, and insuring real property titles, as well as home and personal insurance services[14]. - Title insurance revenues are closely related to real estate market activity, including interest rates and home sales volumes[25]. - The primary customers for title insurance include attorneys, builders, developers, home buyers, sellers, lenders, and real estate brokers[26]. - The demand for title insurance-related services is primarily influenced by the volume of real estate transactions, which is affected by mortgage interest rates and overall economic conditions[57]. - Stewart's claims experience may require an increase in provisions for title losses, which could adversely affect earnings[59]. - The company faces intense competition in the title insurance industry, with larger competitors having substantially greater revenues and capital[61]. - Total direct title revenues in 2024 improved by 6% to $1,020.4 million compared to $962.7 million in 2023, primarily driven by increased commercial revenues[135]. - Title losses in 2024 were $80.4 million, comparable to 2023, with a title loss ratio of 3.9%[151]. Financial Performance - Net income attributable to Stewart for 2024 was $73.3 million, or $2.61 per diluted share, compared to $30.4 million, or $1.11 per diluted share, in 2023[108]. - Total operating revenues increased by 10% to $2.42 billion in 2024, up from $2.21 billion in 2023, while total expenses increased by 8% to $2.38 billion[108]. - For Q4 2024, net income attributable to Stewart was $22.7 million ($0.80 per diluted share), compared to $8.8 million ($0.32 per diluted share) in Q4 2023[109]. - Title segment operating revenues for Q4 2024 were $562.7 million, a 12% increase from $503.0 million in Q4 2023[111]. - Real estate solutions revenues increased by $95 million, or 36%, in 2024 compared to 2023, driven by higher revenues from credit information and valuation management services[139]. - Investment income improved by $10.2 million, or 23%, in 2024 compared to 2023, primarily due to higher interest income from escrow balances[140]. Employee and Workplace Culture - The company employed approximately 7,000 people as of December 31, 2024, with about 5,500 employees in the U.S. and 1,500 internationally[38]. - Stewart was recognized as a 2024 Top Workplace by the Houston Chronicle and received three Culture Excellence Awards for employee well-being, appreciation, and professional development[45]. - The company focuses on recruiting strategies that emphasize fairness, equity, and inclusivity in employment practices[39]. - The company is committed to providing an inclusive workplace and has established a Global Inclusion Council to support employee advancement and engagement[41]. Risk Management - Cybersecurity threats pose a risk to Stewart's operations, as successful breaches could lead to loss of sensitive data and increased costs[62]. - Errors and fraud related to fund transfers are potential risks that could result in financial losses for Stewart[63]. - The company has an enterprise risk management program to assess and manage cybersecurity risks alongside other critical business risks[84]. - The Board oversees management's assessment of significant risks, including cybersecurity, and receives regular updates on risk exposure[90]. - The company’s enterprise risk management program is in place to assess and manage risks, but it may not adequately address all emerging risks[55]. Economic and Market Conditions - Economic conditions, particularly mortgage interest rates and real estate activity, significantly impact Stewart's revenues and earnings, which have historically fluctuated due to these factors[56]. - Climate change and extreme weather events could adversely impact the company's operations and financial performance, affecting the real estate market and investment portfolio[65]. - Widespread health crises may disrupt the real estate market, leading to decreased order volumes and delayed transactions, significantly impacting future results[66]. - The average 30-year mortgage interest rate for 2024 was 6.72%, down from 6.80% in 2023, following several interest rate reductions by the federal government[130]. - Existing home sales in 2024 were 4.05 million, a slight decrease from 4.10 million in 2023, primarily due to elevated interest rates and low housing inventory[130]. Regulatory and Compliance - The company is subject to extensive government regulations that could impede revenue growth and operational results[69]. - The company may face increased costs and difficulties in acquiring necessary data due to regulatory compliance burdens[64]. - The company relies on dividends from its insurance subsidiaries for capital planning, which may be restricted by state regulations[73]. Investments and Capital Management - As of December 31, 2024, total cash and investments amounted to $926.6 million, with $523.4 million held in the U.S.[156]. - The company used $14.4 million for acquisitions in 2024, consistent with its strategy to increase scale and growth in key markets[166]. - Cash used for purchases of securities investments was $121.5 million in 2024, compared to $78.0 million in 2023[165]. - The company expects cash flows from operations and cash available from underwriters to be sufficient to fund operations, including claims payments[171]. Internal Controls and Governance - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2024, and concluded that it is effective based on COSO criteria[188]. - The company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[188]. - Management believes that inherent limitations in internal control systems can lead to material misstatements not being prevented or detected[189]. - The company has adopted an insider trading policy applicable to all directors, officers, and employees[195].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported net income of $23 million or $0.80 per diluted share on total revenue of $666 million [32] - Adjusted net income for Q4 was $32 million or $1.12 per diluted share, compared to $17 million or $0.60 per diluted share in Q4 2023 [33] - For the full year 2024, revenues grew by 10% and adjusted net earnings increased by 42% [7] Business Line Data and Key Metrics Changes - The Title segment saw operating revenues increase by $60 million or 12%, with pretax income rising by $18 million or 65% [33] - Domestic Commercial operations improved revenues by $28 million or 50%, driven by higher transaction sizes and volumes [35] - Real Estate Solutions segment operating revenues improved by $26 million, but pretax income declined due to vendor price increases and elevated employee costs [37] Market Data and Key Metrics Changes - Existing home sales were at multi-decade lows, with the housing market needing significant improvement to return to normal levels [15][17] - The company expects the housing market to remain choppy in 2025, with a transition to more normal existing home sales anticipated in the second half of the year [17][18] Company Strategy and Development Direction - The company is focused on expanding its market share in targeted metropolitan statistical areas (MSAs) through both organic and inorganic means [20] - Investments in talent across Commercial operations are aimed at maximizing growth potential [22] - The company aims to achieve low double-digit pretax margins as the macro market returns to historically normal levels [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the housing market but expressed optimism about the company's growth plans and resilience [7][15] - The company anticipates modest growth in the Commercial segment for 2025, with a focus on specific sectors like data centers [46][48] - Management expects continued momentum in Real Estate Solutions as market conditions improve [26] Other Important Information - The company announced a cash dividend increase to $2 per share, reflecting its strength and commitment to shareholders [13] - Total cash and investments at year-end were approximately $380 million, with a fully available $200 million line of credit [39] Q&A Session Summary Question: Expectations for Commercial growth in 2025 - Management expects modest growth in the Commercial segment for 2025, with uncertainty in the market [45][46] Question: Margins in Real Estate Solutions segment - Management indicated that pricing changes are being implemented, and margins are expected to improve as client relationships mature [52][54] Question: Loss provision rate expectations - Management tightened the loss provision rate expectations to low 4%, citing favorable macro conditions [70][74] Question: Investment income expectations - Management expects investment income to remain stable in the $13 million range, with potential fluctuations based on market conditions [76]

Financial Performance - Fourth quarter 2024 net income attributable to Stewart was $22.7 million ($0.80 per diluted share), a significant increase from $8.8 million ($0.32 per diluted share) in the fourth quarter 2023, representing a 158% year-over-year growth[2]. - Full year 2024 net income was $73.3 million ($2.61 per diluted share), compared to $30.4 million ($1.11 per diluted share) in 2023, marking a 141% increase[4]. - Net income attributable to Stewart for the year 2024 was $73.3 million, up 141.5% from $30.4 million in 2023[23]. - Net earnings per diluted share attributable to Stewart increased to $2.61 in 2024, compared to $1.11 in 2023[23]. - Adjusted net income attributable to Stewart rose by 90% to $31.5 million for Q4 2024, and by 42% to $94.4 million for the year 2024[29]. Revenue Growth - Total revenues for the fourth quarter 2024 reached $665.9 million, up 14.4% from $582.2 million in the same quarter of 2023[4]. - Total operating revenues for Q4 2024 reached $649.7 million, a 15.1% increase from $564.4 million in Q4 2023[23]. - Total revenues for the Title Segment grew by 11% to $580.0 million in Q4 2024, and by 7% to $2,133.0 million for the year 2024[29]. - Adjusted total revenues for the year ended December 31, 2024, were $2,477.5 million, reflecting a 10% growth compared to $2,257.3 million in 2023[28]. - Real Estate Solutions Segment total revenues surged by 42% to $87.0 million in Q4 2024, and by 36% to $358.7 million for the year 2024[29]. Operational Efficiency - Adjusted pretax margin improved to 7.1% in the fourth quarter 2024, up from 5.0% in the prior year quarter, reflecting operational efficiency[5]. - The GAAP pretax margin improved to 5.3% in Q4 2024 from 3.2% in Q4 2023[28]. - The company’s adjusted pretax margin for Q4 2024 was 7.1%, up from 5.0% in Q4 2023[28]. - Adjusted pretax income for the Title Segment rose by 61% to $50.5 million in Q4 2024, and by 20% to $138.9 million for the year 2024[29]. - GAAP pretax margin improved to 7.8% in Q4 2024, and to 6.3% for the year 2024, compared to 5.2% and 4.9% in the previous year respectively[29]. Cash Flow and Expenses - Total cash provided by operations in the fourth quarter 2024 was $68.0 million, compared to $39.5 million in the fourth quarter 2023, indicating improved cash flow generation[18]. - Employee costs increased by $21.3 million, or 12%, in the fourth quarter 2024, primarily due to higher incentive compensation and increased salaries[15]. - Total expenses for the year ended December 31, 2024, were $2,376.1 million, compared to $2,196.5 million in 2023[28]. - Employee costs for Q4 2024 totaled $199.4 million, reflecting a 11.9% increase from $178.1 million in Q4 2023[23]. Market Conditions and Future Outlook - The company plans to continue focusing on growth and margin improvement across all business lines in 2025, despite challenging macro-housing conditions[4]. - The number of opened commercial orders in Q4 2024 was 4,283, slightly down from 4,303 in Q4 2023[23]. - The total number of purchase orders opened in Q4 2024 was 39,399, compared to 42,750 in Q4 2023, indicating a decrease of 7.4%[23]. Asset and Equity Changes - Cash and cash equivalents increased to $216,298,233 from $336,365[24]. - Short-term investments rose to $41,199,393 from $23,936[24]. - Total assets net increased to $102,210,115 from $87,899[24]. - Total stockholders' equity reached $1,411,089,891 from $378,549[24]. - Book value per share is $50.50[24].

Core Viewpoint - Stewart Information Services Corporation reported significant growth in net income and revenues for the fourth quarter of 2024, demonstrating resilience in challenging macro-housing conditions [3][4][27]. Financial Performance - Net income attributable to Stewart for Q4 2024 was $22.7 million ($0.80 per diluted share), a substantial increase from $8.8 million ($0.32 per diluted share) in Q4 2023 [1][20]. - Adjusted net income for Q4 2024 was $31.5 million ($1.12 per diluted share), compared to $16.6 million ($0.60 per diluted share) in Q4 2023, reflecting a 90% increase [4][28]. - Total revenues for Q4 2024 reached $665.9 million, up 14% from $582.2 million in Q4 2023 [27]. Segment Performance - The title segment generated total revenues of $665.9 million in Q4 2024, compared to $582.2 million in the prior year quarter, marking a 14% increase [4][27]. - The real estate solutions segment saw operating revenues increase by 42% to $87.0 million in Q4 2024, driven by higher revenues from credit information and valuation services [11][12]. Expense Management - Consolidated employee costs increased by 12% to $199.4 million in Q4 2024, primarily due to higher incentive compensation and increased salaries [14]. - Other operating expenses rose by 25% to $159.1 million, driven by higher service expenses and outside search fees [15]. Investment Gains - Q4 2024 included $1.7 million in pretax net realized and unrealized gains, primarily from fair value changes of equity securities investments [2][27]. - In contrast, Q4 2023 had $4.8 million in pretax net realized and unrealized gains, indicating a decrease in investment performance year-over-year [2]. Cash Flow - Net cash provided by operations in Q4 2024 was $68.0 million, significantly higher than $39.5 million in Q4 2023, reflecting improved profitability [16][21].

Group 1 - Stewart Information Services Corporation declared a cash dividend of $0.50 per share for the fourth quarter of 2024 [1] - The dividend is payable on December 30, 2024, to common stockholders of record on December 16, 2024 [1] Group 2 - Stewart Information Services Corporation is a global real estate services company [2] - The company offers a range of products and services including residential and commercial title insurance, closing and settlement services, and specialized offerings for the mortgage industry [2] - Stewart provides comprehensive services and deep expertise for real estate transactions through its direct operations and network of Stewart Trusted Providers™ [2]

Financial Performance - Net income for the nine months ended September 30, 2024, was $60,944, an increase of 87.9% compared to $32,494 for the same period in 2023[11] - For the nine months ended September 30, 2024, net income attributable to Stewart was $50,569,000, compared to $21,624,000 for the same period in 2023, representing a significant increase[14] - Net income attributable to Stewart for the three months ended September 30, 2024, was $30.1 million, compared to $14.0 million in 2023, representing a 115% increase[45] - Basic earnings per share (EPS) attributable to Stewart for the nine months ended September 30, 2024, was $1.83, up from $0.79 in 2023, reflecting a 131.6% increase[45] - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $1.09, up from $0.51 in 2023, indicating strong earnings growth[45] Revenue Growth - Total revenues for the nine months ended September 30, 2024, were $1,772,416,000, up from $1,647,887,000 in 2023, reflecting a growth of approximately 7.6%[23] - Total revenues for the title segment for the three months ended September 30, 2024, were $571.6 million, an increase of 7.1% from $533.6 million in 2023[53] - Revenues for the real estate solutions segment increased to $96.4 million for the three months ended September 30, 2024, up 41.3% from $68.2 million in 2023[53] - Consolidated revenues for the nine months ended September 30, 2024, reached $1.82 billion, compared to $1.68 billion in 2023, marking a 8.9% increase[55] - Total proceeds from sales of investments in securities for the nine months ended September 30, 2024, were $34.3 million, down from $53.6 million in 2023[36] Asset and Equity Changes - Total assets increased to $2,729,570, up 1.0% from $2,702,861 at the end of December 2023[10] - Total stockholders' equity rose to $1,414,335, reflecting an increase of 2.6% from $1,378,549 at the end of December 2023[10] - The total equity at September 30, 2024, was $1,414,335,000, compared to $1,359,199,000 at September 30, 2023, representing an increase of approximately 4.1%[14] - The balance of common stock increased from $27,709,000 at September 30, 2023, to $28,066,000 at September 30, 2024, reflecting a growth of 1.3%[14] - Retained earnings increased to $1,080,879, up from $1,070,841 at the end of 2023, reflecting a growth of 0.9%[14] Cash Flow and Investments - Cash and cash equivalents decreased to $183,772, down 21.3% from $233,365 at the end of December 2023[10] - Cash provided by operating activities was $67,656, a significant increase from $43,578 in the same period last year[11] - Cash used by investing activities was $71,587, compared to $36,753 in the same period last year, indicating increased investment activity[11] - The company repurchased $3,618 worth of common stock during the nine months ended September 30, 2024[11] - The company reported realized gains of $322,000 for the three months ended September 30, 2024, compared to $900,000 for the same period in 2023[34] Title Insurance and Losses - Direct title insurance premiums increased to $501,096,000 for the nine months ended September 30, 2024, from $470,779,000 in 2023, marking an increase of 6.5%[23] - Agency title insurance premiums rose to $764,081,000 for the nine months ended September 30, 2024, compared to $723,476,000 in 2023, indicating a growth of 5.6%[23] - Estimated title losses decreased to $517.6 million as of September 30, 2024, from $528.3 million at the beginning of the year[39] - Current year provisions for title losses represented 4.0% of title operating revenues for 2024, consistent with 2023[39] - The title segment's income before taxes for the three months ended September 30, 2024, was $45.0 million, a 27.0% increase from $35.4 million in 2023[53] Investment Gains and Losses - The company reported a net unrealized gain on investments of $10,853,000 for the nine months ended September 30, 2024, compared to a loss of $6,616,000 in 2023[14] - The company reported a net unrealized loss on debt securities investments of $4,841, a decrease from $16,636 at the end of December 2023[10] - The company experienced a decrease in total gross unrealized investment losses to $12.6 million as of September 30, 2024, compared to $23.7 million at the end of 2023[28] - The fair value of equity securities increased to $81.1 million as of September 30, 2024, from $69.7 million at the end of 2023[33] - The company holds 257 specific debt investment holdings in an unrealized loss position as of September 30, 2024, with 234 of these in loss positions for more than 12 months[28] Other Financial Metrics - Other comprehensive income for the three months ended September 30, 2024, was $18.3 million, compared to a loss of $13.3 million in 2023[56] - The company granted time-based and performance-based restricted stock units with an aggregate grant-date fair value of $14.5 million in 2024, compared to $12.1 million in 2023, indicating a 19.8% increase[41] - The average number of dilutive shares relating to options increased to 243 for the three months ended September 30, 2024, compared to 69 in 2023[45] - The corporate and other segment reported a loss before taxes of $9.6 million in Q3 2024, an improvement from a loss of $10.9 million in Q3 2023[53] - The company had unused letters of credit aggregating $4.9 million related to workers' compensation and other insurance as of September 30, 2024[46]