Core Viewpoint - Stewart Information Services Corporation reported strong financial results for the third quarter of 2024, with significant increases in total revenues, net income, and earnings per share compared to the same quarter in the previous year, despite challenging market conditions in the residential purchase sector [1][2][3]. Financial Performance - Total revenues for Q3 2024 were $667.9 million, up 11% from $601.7 million in Q3 2023 [2][13]. - Net income attributable to Stewart was $30.1 million, compared to $14.0 million in the prior year, marking a 114% increase [1][2]. - Diluted earnings per share rose to $1.07 from $0.51 in Q3 2023, reflecting a 109% increase [1][2]. Segment Performance Title Segment - Operating revenues in the title segment increased by $31.2 million, or 6%, driven by higher domestic commercial and agency title operations [4]. - The title segment's pretax income rose to $45.0 million, a 27% increase from $35.4 million in Q3 2023 [3][4]. - Direct title revenues totaled $270.7 million, up 6% from $256.4 million in the prior year [6]. Real Estate Solutions Segment - Operating revenues for the real estate solutions segment surged by 41% to $96.3 million, compared to $68.2 million in Q3 2023 [7]. - Pretax income for this segment increased by 181% to $7.4 million [7]. Corporate and Other Segment - Corporate expenses decreased to $9.5 million in Q3 2024 from $10.8 million in Q3 2023, primarily due to a prior acquisition-related settlement expense [8]. Expense Management - Consolidated employee costs increased by 7% to $193.9 million, driven by higher incentive compensation linked to increased revenues [8]. - Other operating expenses rose by 19% to $155.6 million, attributed to higher service expenses and outside search fees [8]. Cash Flow and Operational Metrics - Net cash provided by operations was $76.1 million, up from $59.5 million in Q3 2023, reflecting improved profitability [8]. - The company reported a book value per share of $50.77 as of September 30, 2024, compared to $50.11 at the end of 2023 [11].

Core Insights - The survey conducted by Cloudvirga reveals a significant trend towards digitalization in the mortgage origination process, with homebuyers increasingly expecting a more automated experience [1][2][6] Consumer Satisfaction - A majority of respondents (71%) expressed high satisfaction with the technology provided by lenders for managing the application process [2] - 67% of participants reported being very satisfied with the lender's online support, while 27% were somewhat satisfied [2] - Over 75% of respondents were first-time buyers, indicating a lack of previous experience to compare their digital mortgage experience [2] Future Expectations - 63% of respondents desired an even more digital experience than what they received, and 77% expect their next mortgage or refinance to be entirely digital [3] - Despite the positive reception of digital tools, 60% of respondents indicated that the use of AI in the loan process would lead them to choose another lender [3] Role of Loan Officers - 58% of respondents stated that their loan officer managed the initial application process, highlighting the continued importance of human assistance despite satisfaction with digital processes [4] - Nearly half (46%) reported direct contact with their loan officer for additional information or support [4] Transparency and Efficiency - 69% of respondents had access to technology for real-time loan status updates, while 72% utilized automated document submission [5] - 91% of participants used a single system for document submission, with 92% expressing satisfaction with the documentation process [5] Industry Challenges - The survey indicates a nuanced consumer expectation where borrowers seek the efficiency of automated platforms but still value the involvement of loan officers [6] - The findings suggest that while AI is becoming a significant part of digital mortgage origination, it is not yet fully trusted by many borrowers [6]

HOUSTON, Sept. 3, 2024 /PRNewswire/ -- Stewart Information Services Corporation (NYSE:STC) today announced a dividend increase that reflects the company's continuing commitment to return capital to its shareholders. The Stewart Board of Directors has approved an increase in the Company's annual cash dividend from $1.90 to $2.00 per share, beginning with the third quarterly payment of 2024 of $0.50 per share, payable September 30, 2024, to common stockholders of record on September 16, 2024. "I am pleased to ...

Financial Data and Key Metrics Changes - Stewart reported second quarter net income of $17 million or $0.62 per diluted share on total revenues of $602 million, with adjusted net income of $25 million or $0.91 per diluted share, compared to $26 million or $0.94 per diluted share in the prior year [24] - The employee cost ratio improved to 30.5% from 33.9% year-over-year, while other operating expense ratio increased to 25.9% compared to 24% in the prior year quarter [31] Business Line Data and Key Metrics Changes - In the title segment, total operating revenues improved by $29 million or 6%, driven by higher revenues from agency operations, while direct title revenues remained similar to the prior year [25] - Domestic commercial operations produced higher revenues of approximately $10 million or 23%, primarily driven by improved transaction size and volume in energy, industrial, and multifamily asset classes [26] - Domestic residential revenues decreased by $15 million or 8%, primarily due to a lower fee profile with a lower purchase transaction mix [27] - The real estate solutions segment saw pre-tax income improve by $2 million compared to last year, with a pre-tax margin of 5.5% in the second quarter compared to 4.6% last year [29] Market Data and Key Metrics Changes - The housing market remains depressed due to elevated mortgage rates, rising home prices, and low housing inventory, with existing home sales showing a downward trend [8][9] - In June, the seasonally adjusted run rate of existing homes for sale was 3.98 million, a 5% reduction from the prior year [9] Company Strategy and Development Direction - The company is focused on building a competitive position by executing a disciplined operating model and identifying efficiencies to prepare for a market rebound [11] - Stewart is dedicated to growing scale in attractive markets across all lines of business and has made advances in improving customer experience through technology upgrades [11][12] - The company is cautious about acquisitions but remains positive about long-term growth opportunities as the market normalizes [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned to capitalize on improving market conditions despite the current challenges [7] - The expectation for 2025 is to be a transitional year towards a more normal market characterized by around 5 million existing homes annually [9] - Management noted that the next three quarters will be interesting as they monitor various economic indicators and prepare to capitalize on any improvements [10] Other Important Information - Total cash and investments at the end of the second quarter was approximately $310 million, with a fully available $200 million line of credit facility [33] - The company maintains a positive long-term outlook for the real estate market and aims to become the premier title services company [20] Q&A Session Summary Question: Market share and performance in the residential area - Management noted that they are holding their own in the residential market but have made surgical adjustments in some micro markets to manage margins [41][42] Question: Cautious approach to M&A - The cautious approach to acquisitions is due to the current market conditions and the difficulty in bridging value expectations with sellers [39][44] Question: Long-term margins and market normalization - Management indicated that if the market remains stable, margins will be similar to last year, but they are confident in their ability to manage costs and improve margins as the market normalizes [56][58] Question: Real estate solutions and onboarding costs - The onboarding costs are expected to normalize as the company integrates new clients, and margins are anticipated to improve as the business stabilizes [62][63]

HOUSTON, July 24, 2024 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $17.3 million ($0.62 per diluted share) for the second quarter 2024, compared to $15.8 million ($0.58 per diluted share) for the second quarter 2023. On an adjusted basis, second quarter 2024 net income was $25.4 million ($0.91 per diluted share) compared to $25.8 million ($0.94 per diluted share) in the second quarter 2023. Pretax income before noncontrolling interests for the ...

HOUSTON, July 24, 2024 /PRNewswire/ -- Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $17.3 million ($0.62 per diluted share) for the second quarter 2024, compared to $15.8 million ($0.58 per diluted share) for the second quarter 2023. On an adjusted basis, second quarter 2024 net income was $25.4 million ($0.91 per diluted share) compared to $25.8 million ($0.94 per diluted share) in the second quarter 2023. Pretax income before noncontrolling inte ...

Stewart 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 companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage industry, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. Learn more at stewart.com. ST-IR SOURCE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 For the transition period from to FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or | Delaware | | 74-1677330 | | --- | --- | --- | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identificatio ...

Stewart Information Services Corporation (NYSE:STC) Q1 2024 Earnings Conference Call April 25, 2024 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. Geoffrey Dunn - Dowling Partners Operator Hello and thank you for joining the Stewart Information Services First Quarter 2024 Earnings Call. At this time, all participants ar ...

Exhibit 99.1 NEWS RELEASE STEWART INFORMATION SERVICES CORP. P.O. Box 2029 Houston, Texas 77252-2029 www.stewart.com CONTACT Kathryn Bass / Brian Glaze Investor Relations (713) 625-8633 Stewart Reports First Quarter 2024 Results HOUSTON, April 24, 2024 - 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 2024, compared to a net loss of $8.2 million ($0.30 loss per diluted share) for the first ...