Stewart Information Services Corporation (NYSE:STC) Q3 2022 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Brian Glaze - Chief Accounting Officer Frederick Eppinger - Chief Executive Officer David Hisey - Chief Financial Officer Conference Call Participants John Campbell - Stephens Geoffrey Dunn - Dowling & Partners Operator Hello and thank you for joining the Stewart Information Services Third Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. La ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-02658 STEWART INFORMATION SERVICES CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | 74-1677330 | ...

Stewart Information Services Corporation (NYSE:STC) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Brian Glaze - CAO Fred Eppinger - CEO David Hisey - CFO Conference Call Participants Bose George - KBW John Campbell - Stephens Inc. Geoffrey Dunn - Dowling & Partners Ryan Gilbert - BTIG Operator Hello and thank you for joining the Stewart Information Services Second Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. Later you will have an oppo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-02658 STEWART INFORMATION SERVICES CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | 74-1677330 ...

Financial Data and Key Metrics Changes - Stewart reported net income of $58 million and diluted earnings per share of $2.11 on total revenues of $853 million for Q1 2022 [21] - Adjusted net income for the first quarter was $56 million, which was 8% higher compared to the same quarter last year [21] - Total Title revenues for the quarter increased by $97 million or 15% compared to last year's quarter [23] - Title pre-tax margin for Q1 2022 was 11.4% compared to 12.2% in the previous year [24] Business Line Data and Key Metrics Changes - Domestic commercial revenues improved by $27 million, driven by increased transaction volume and a 47% higher average fee per file of $12,700 [25] - Domestic residential revenues increased by $4 million or 2% due to higher purchase transactions [25] - Agency operations generated revenues of $404 million, which is 17% higher than last year [28] - Total open and closed orders in Q1 decreased by 26% and 24% respectively, primarily due to lower refinancing transactions [27] Market Data and Key Metrics Changes - The residential real estate market continues to see demand driven by favorable demographics [18] - Commercial real estate is experiencing activity across most asset classes, with energy poised to benefit from supply and environmental focus [18] - The average agency remittance rate improved to 18.1%, compared to 17.1% in the previous year [28] Company Strategy and Development Direction - The company is focused on becoming the premier title service company by improving margins, growth, and resiliency [6][9] - Investments in technology have enhanced customer experience and operational capabilities [7][11] - The company aims to gain scale in priority markets and deepen agency partnerships [12][14] Management's Comments on Operating Environment and Future Outlook - Management remains confident in their ability to manage through traditional market conditions and is bullish on long-term prospects [9][17] - The company is focused on managing business areas that will have a meaningful impact on long-term performance [20] - Management acknowledges potential risks from Fed policies, inflation, and global conflicts affecting supply chains [19] Other Important Information - Total cash and investments on the balance sheet are approximately $560 million, with a fully available $200 million line of credit facility [31] - Stockholders' equity attributable to Stewart was approximately $1.312 billion, with a book value per share of approximately $49, an increase of 2% from the previous year [31] Q&A Session Summary Question: Are the recent acquisitions fully reflected in this quarter's numbers? - Management indicated that the full effect of acquisitions from the previous quarter is still being realized, with ongoing integrations [35][37] Question: Can you discuss commercial and purchase trends for the second quarter? - Management noted improvements across asset classes in commercial real estate and expressed optimism for continued growth [42][44] Question: How do you view the balance between M&A and stock buybacks in the current environment? - The focus remains on building the business, with M&A being a priority as all transactions have been accretive [61] Question: What is the current cost structure regarding fixed versus variable costs? - Management explained that the cost structure varies by business, with a significant portion being variable due to the transactional nature of operations [66] Question: How is the market trending in terms of purchase and refinance volumes? - Management acknowledged a slight negative impact from rising mortgage rates but noted that the market remains transitional [72][73]

Business Segments - Stewart Information Services Corporation operates in two segments: title insurance and related services, and ancillary services and corporate[13]. - The title segment includes services such as searching, examining, closing, and insuring real property titles, as well as home and personal insurance services[14]. - The ancillary services segment supports the mortgage industry with services such as appraisal management and online notarization, enhancing the real estate transaction lifecycle[34]. Financial Performance - In 2021, net income attributable to Stewart was $323.2 million, or $11.90 per diluted share, a 109% increase from $154.9 million, or $6.22 per diluted share, in 2020[97]. - Total revenues for 2021 increased by 45% to $3.3 billion, up from $2.3 billion in 2020, driven by increased transaction volumes and acquisitions[97]. - Total operating expenses rose by 39% to $2.9 billion in 2021, compared to $2.1 billion in 2020, consistent with revenue growth[97]. - For Q4 2021, net income attributable to Stewart was $85.5 million ($3.12 per diluted share), compared to $59.7 million ($2.22 per diluted share) in Q4 2020[98]. - Q4 2021 pretax income before noncontrolling interests was $114.1 million, an increase from $83.9 million in Q4 2020[98]. - The company paid dividends of $293.9 million in 2021, including an extraordinary dividend of $135.0 million, compared to $30.0 million in 2020[153]. Market Conditions - Title insurance revenues are closely related to real estate market activity, interest rates, and consumer confidence, with the first quarter typically being the least active[26]. - The demand for title insurance-related and mortgage services is primarily dependent on the volume of real estate transactions, which is influenced by mortgage interest rates and overall economic conditions[59]. - The company’s revenues and results of operations are affected by changes in economic conditions, particularly mortgage interest rates and real estate prices[58]. - The average 30-year mortgage interest fixed rate is anticipated to climb to 3.6% in 2022, which may further reduce refinancing lending and limit home affordability[124]. Employee and Operational Metrics - As of December 31, 2021, the company employed approximately 7,300 people, with about 6,400 located in the U.S.[40]. - Employee costs increased by 27% to $777.0 million in 2021, while other operating expenses rose by 67% to $626.8 million[134]. - Total employee counts rose to approximately 7,300 in 2021 from 5,800 in 2020 and 5,300 in 2019, with average cost per employee increasing by 5% in 2021 and 7% in 2020[136]. Cybersecurity and Compliance - The company has experienced no known material cyber breaches during the three-year period ended December 31, 2021, and has a comprehensive cybersecurity framework in place[48]. - The company regularly assesses its cybersecurity against the National Institute of Standards and Technology (NIST CSF) and SSAE-18 standards[49]. - Regulatory compliance is crucial, as downgrades by rating agencies could negatively impact revenue and customer retention[69]. Investment and Financial Risks - As of December 31, 2021, approximately 87% of the company's combined debt and equity securities investment portfolios consisted of fixed income securities, with 93% of these rated A or higher[38]. - The investment portfolio is exposed to interest rate and credit risks, which could lead to material adverse effects on financial condition[78]. - A 100 basis-point increase in interest rates would result in a decrease of approximately $19.8 million, or 3.4%, in the fair value of the debt securities portfolio[176]. Acquisitions and Growth - The company acquired Cloudvirga, a digital customer engagement platform, and several title offices in various states to enhance its competitive position[31]. - The company invested $600.0 million in acquisitions of title and ancillary services businesses in 2021, significantly higher than $200.0 million in 2020[159]. - Ancillary services revenues improved by $177.1 million, or 214%, in 2021 compared to 2020, primarily due to revenues from new acquisitions[132]. Financial Position and Cash Flow - The company held total cash and investments of $1.2 billion as of December 31, 2021, with $798.3 million held in the U.S.[149]. - Net cash provided by operating activities was $390.3 million in 2021, an increase of $114.5 million compared to 2020, attributed to higher net income and lower claims payments[156]. - Total debt as of December 31, 2021, was $483.5 million, with stockholders' equity at $1.3 billion, resulting in a debt-to-equity ratio of approximately 34%[160]. Title Insurance Metrics - Total provisions for title losses as a percentage of title operating revenues were 4.2% in 2021, down from 5.3% in 2020[108]. - Title loss expense decreased by $13.1 million, or 28%, in Q4 2021, with a title loss ratio of 3.9% compared to 6.8% in the prior year quarter[101]. - Total estimated title losses as of December 31, 2021, were $549.6 million, up from $496.3 million in 2020, with known claims reserves at $75.9 million and IBNR at $473.7 million[146]. Audit and Internal Controls - The audit of the company's internal control over financial reporting as of December 31, 2021, was found to be effective[208]. - The company has implemented safeguards to reduce the risk of material misstatements in financial reporting, acknowledging inherent limitations in internal control systems[182]. - The financial statements and schedules filed as part of the report are listed in the Index to Consolidated Financial Statements[194].

Stewart Information Services Corporation (NYSE:STC) Q4 2021 Earnings Conference Call February 10, 2022 8:30 AM ET Company Participants Nat Otis - Head-IR Fred Eppinger - CEO David Hisey - CFO Conference Call Participants Bose George - KBW John Campbell - Stephens Incorporated Geoffrey Dunn - Dowling and Partners Ryan Gilbert - BTIG Operator Hello, and thank you for joining the Stewart Information Services Fourth Quarter and Full Year 2021 Earnings Call. [Operator Instructions] Please note, this call is bein ...

Financial Performance - Total revenues for the three months ended September 30, 2021, were $829,787,000, a 40.4% increase from $590,676,000 in the same period of 2020[11] - Net income attributable to Stewart for the nine months ended September 30, 2021, was $237,718,000, compared to $95,232,000 for the same period in 2020, representing a 149.5% increase[11] - Basic earnings per share attributable to Stewart increased to $3.30 for the three months ended September 30, 2021, up from $2.22 in the same period of 2020, reflecting a 48.6% growth[11] - For the three months ended September 30, 2021, the company reported net income attributable to Stewart of $88.663 million, compared to $55.909 million for the same period in 2020, representing a 58.5% increase[26] - Total operating revenues for the three months ended September 30, 2021, were $829.787 million, up 40.4% from $590.676 million in the same period of 2020[26] - Total revenues for the third quarter 2021 were $836.7 million, a 40% increase from $595.7 million in the third quarter 2020[50] - Net income attributable to Stewart for the third quarter 2021 was $88.7 million ($3.26 per diluted share), compared to $55.9 million ($2.21 per diluted share) in the same quarter of 2020, representing a 58% increase[53] Revenue Sources - Operating revenues from agency operations reached $401,762,000 for the three months ended September 30, 2021, a 42.2% increase from $282,605,000 in the same period of 2020[11] - Direct title insurance premiums increased to $248.738 million in Q3 2021 from $190.794 million in Q3 2020, a growth of 30.3%[26] - Agency title insurance premiums rose to $401.762 million in Q3 2021, compared to $282.605 million in Q3 2020, marking an increase of 42.2%[26] - Title segment operating revenues increased by $205.1 million, or 36%, to $767.9 million in the third quarter 2021, driven by a 31% increase in direct title revenues and a 42% increase in gross independent agency revenues[54] - Ancillary services and corporate segment revenues surged by 122% to $61.9 million in the third quarter 2021, primarily due to recent acquisitions and increased appraisal management services revenues[57] - International revenues rose by 49% to $17.3 million in Q3 2021, primarily driven by improved volumes in Canada[71] Expenses and Costs - Employee costs for the three months ended September 30, 2021, were $197,587,000, up from $155,638,000 in the same period of 2020, reflecting a 26.9% increase[11] - Other operating expenses grew by 55% to $152.6 million in Q3 2021, largely due to recently-acquired businesses and increased variable costs[84] - Employee costs increased by 27% to $197.6 million in Q3 2021, influenced by a 23% rise in average employee counts[80] - Title loss expense increased by $1.9 million, or 7%, in the third quarter 2021, with a title loss expense percentage of 4.0%, down from 5.1% in the prior year quarter[55] - Investment income for the title segment declined by $0.9 million, or 19%, due to lower dividend income and decreased interest income[56] Cash and Investments - Cash and cash equivalents at the end of the period were $607,605,000, an increase from $432,683,000 at the beginning of the period, marking a 40.5% rise[14] - Cash provided by operating activities for the nine months ended September 30, 2021, was $257,317,000, compared to $140,861,000 for the same period in 2020, representing an 83.0% increase[14] - Total cash and investments as of September 30, 2021, amounted to $1.13 billion, with $585.1 million net of statutory reserves[95] - The outstanding balance of the line of credit facility was $273.9 million as of September 30, 2021, with total draws of $175.0 million during the first nine months of 2021[107] - The company experienced a net decrease of $1.9 million in cash and cash equivalents due to foreign currency exchange rate changes during the first nine months of 2021, compared to a net decrease of $0.5 million in the same period of 2020[109] Investments - The company reported a comprehensive income attributable to Stewart of $225,473,000 for the nine months ended September 30, 2021, compared to $106,607,000 for the same period in 2020, indicating a 111.1% increase[11] - The company's investments in debt securities totaled $617.278 million as of September 30, 2021, down from $631.386 million at December 31, 2020[27] - The fair value of the company's equity securities increased to $83.441 million as of September 30, 2021, compared to $53.001 million at December 31, 2020, reflecting a growth of 57.3%[27] - The company reported net unrealized investment gains of $13.9 million on equity securities as of September 30, 2021, up from $4.4 million at December 31, 2020[27] - The company recorded net investment gains on equity securities of $9.706 million for the nine months ended September 30, 2021, compared to a loss of $7.136 million in the same period of 2020[35] Acquisitions and Growth - Goodwill increased to $536.176 million as of September 30, 2021, following acquisitions totaling $113.521 million during the period[37] - The company completed a $192 million acquisition of a provider of credit, consumer, and real estate data and technology services, enhancing its customer-focused real estate services platform[38] - The company closed the acquisition of Informative Research on October 1, 2021, enhancing its technology and services offerings in the real estate and loan transaction lifecycle[59] Regulatory and Compliance - The company maintained statutory reserve funds of approximately $524.5 million in investments and $24.0 million in cash as of September 30, 2021, ensuring compliance with state regulations[23] - The company has no material contractual commitments other than scheduled maturities of debt and operating lease payments, indicating sufficient liquidity for ongoing operations[110] - The company expects cash flows from operations and cash available from underwriters to be sufficient to fund operations, including claims payments, but may need to seek additional funding if these are insufficient[110] Risks and Controls - The company has identified various risks and uncertainties that could materially affect its financial performance, including economic conditions and regulatory changes[115] - The company maintains adequate and effective disclosure controls and procedures as of September 30, 2021, ensuring timely reporting of required information[118]

Stewart Information Services Corporation (NYSE:STC) Q3 2021 Earnings Conference Call October 28, 2021 8:30 AM ET Company Participants Nat Otis – Head-Investor Relations Fred Eppinger – Chief Executive Officer David Hisey – Chief Financial Officer Conference Call Participants Bose George – KBW Geoffrey Dunn – Dowling and Partners Operator Hello and thank you for joining the Stewart Information Services Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or ...