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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ 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) Q4 2023 Earnings Call Transcript February 8, 2024 8:30 AM ET Company Participants Brian Glaze - Chief Accounting Officer Fred Eppinger - CEO David Hisey - CFO Conference Call Participants Soham Bhonsle - BTIG Bose George - KBW John Campbell - Stephens Inc. Geoffrey Dunn - Dowling & Partners Operator Hello, and thank you for joining the Stewart Information Services Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q3 and 9M 2023 and 2022, showing a significant year-over-year decline in revenues and net income [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income attributable to Stewart significantly decreased in Q3 2023 to **$14.0 million** from **$29.4 million** due to lower total revenues Condensed Consolidated Statements of Income (Q3 & 9M) | Indicator | Q3 2023 ($M) | Q3 2022 ($M) | 9M 2023 ($M) | 9M 2022 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | 601.7 | 716.4 | 1,675.2 | 2,413.4 | | **Income before taxes** | 27.1 | 45.5 | 42.1 | 211.9 | | **Net income attributable to Stewart** | 14.0 | 29.4 | 21.6 | 149.0 | | **Diluted EPS attributable to Stewart** | $0.51 | $1.08 | $0.79 | $5.45 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2.67 billion** as of September 30, 2023, primarily due to reduced cash and investments Condensed Consolidated Balance Sheet Highlights | Asset/Liability/Equity | Sep 30, 2023 ($M) | Dec 31, 2022 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 203.0 | 248.4 | | Total Investments | 660.7 | 710.1 | | **Total Assets** | **2,669.1** | **2,737.9** | | Notes payable | 445.2 | 447.0 | | Estimated title losses | 521.4 | 549.4 | | **Total Liabilities** | **1,309.9** | **1,367.6** | | **Total stockholders' equity** | **1,359.2** | **1,370.3** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities significantly declined to **$43.6 million** in 9M 2023 from **$167.0 million** in 2022, driven by lower net income Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Cash provided by operating activities | 43.6 | 167.0 | | Cash used by investing activities | (36.8) | (225.3) | | Cash used by financing activities | (51.2) | (98.1) | | **Change in cash and cash equivalents** | **(45.4)** | **(165.0)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue declines in direct and agency title insurance, increased unrealized losses on debt securities, and the Title segment's reduced income before taxes - Statutory reserve funds, which are not available for current claim payments, were approximately **$510.8 million** in investments and **$11.0 million** in cash as of September 30, 2023[23](index=23&type=chunk) Operating Revenues by Type (Nine Months Ended Sep 30) | Revenue Type | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Title insurance premiums: Direct | 470.8 | 646.8 | | Title insurance premiums: Agency | 723.5 | 1,154.5 | | Escrow fees | 117.2 | 166.7 | | Real estate solutions and abstract fees | 253.4 | 302.5 | | **Total Operating Revenues** | **1,647.9** | **2,412.1** | Segment Income Before Taxes (Nine Months Ended Sep 30) | Segment | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Title segment | 70.2 | 228.2 | | Real estate solutions segment | 7.3 | 16.2 | | Corporate and other segment | (35.4) | (32.6) | | **Consolidated** | **42.1** | **211.9** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decline in Q3 2023 net income to lower transaction volumes in the title business, driven by a high-interest-rate environment that has hampered home sales and mortgage originations - Q3 2023 net income attributable to Stewart was **$14.0 million** (**$0.51** per diluted share), a significant drop from **$29.4 million** (**$1.08** per diluted share) in Q3 2022[52](index=52&type=chunk) - Management identifies key headwinds including rising interest rates, low housing inventory, and declining mortgage originations[65](index=65&type=chunk) - Existing home sales were down **15%** YoY in September 2023, and total single-family mortgage originations fell **17%** in Q3 2023[66](index=66&type=chunk) - The company is focused on a cost-effective, scalable business model through technology, centralization, and outsourcing, with plans to improve margins via automation and system consolidation[96](index=96&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Operating revenues fell across all categories due to market headwinds, with direct title revenues dropping **17%** in Q3 2023 and agency revenues falling **22%** Direct Title Revenues (Q3) | Category | 2023 ($M) | 2022 ($M) | % Change | | :--- | :--- | :--- | :--- | | Non-commercial | 196.7 | 238.2 | (17)% | | Commercial | 59.7 | 69.2 | (14)% | | **Total direct title revenues** | **256.4** | **307.4** | **(17)%** | Closed Orders (Q3) | Order Type | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Commercial | 3,661 | 4,444 | (18)% | | Purchase | 39,903 | 46,592 | (14)% | | Refinance | 10,397 | 14,343 | (28)% | | **Total** | **60,308** | **66,798** | **(10)%** | Expense Analysis (Q3) | Expense Category | 2023 ($M) | 2022 ($M) | % Change | | :--- | :--- | :--- | :--- | | Amounts retained by agencies | 219.0 | 280.5 | (22)% | | Employee costs | 181.5 | 195.1 | (7)% | | Other operating expenses | 130.5 | 151.2 | (14)% | | Title losses and related claims | 22.3 | 25.5 | (13)% | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$901.0 million** in total cash and investments as of September 30, 2023, with **$43.3 million** at the parent holding company - Total cash and investments were **$901.0 million** as of September 30, 2023, with **$521.8 million** held in statutory reserves and not available for current claim payments[89](index=89&type=chunk)[92](index=92&type=chunk) - The parent holding company's cash and unregulated subsidiaries totaled **$43.3 million** at September 30, 2023, funded by dividends and reimbursements from subsidiaries[90](index=90&type=chunk) - The company paid total dividends of **$37.5 million** (**$1.38** per share) in the first nine months of 2023, an increase from **$32.5 million** (**$1.20** per share) in the same period of 2022[100](index=100&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its investment strategies or market risks since the 2022 Form 10-K disclosures - The company reports no material changes to its market risk disclosures from the 2022 Form 10-K during the quarter ended September 30, 2023[109](index=109&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were adequate and effective as of September 30, 2023, with no material changes to internal control - The principal executive and financial officers concluded that disclosure controls and procedures were adequate and effective as of September 30, 2023[110](index=110&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control[111](index=111&type=chunk) [PART II – OTHER INFORMATION](index=28&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course claims and lawsuits, but does not expect any to have a material adverse effect, believing reserves are adequate - This section incorporates by reference the discussion of legal proceedings in Note 11 of the financial statements and the 2022 Form 10-K[114](index=114&type=chunk) - The Company does not expect that any ordinary course proceedings will have a material adverse effect on its consolidated financial condition or results of operations and believes it has adequate reserves[44](index=44&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its 2022 Form 10-K - The company reports no material changes to its risk factors since the 2022 Form 10-K[115](index=115&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in 9M 2023, except for shares covering tax withholding on vested restricted stock units - No common stock was repurchased during the first nine months of 2023, except for approximately **37,100** shares (aggregate purchase price of approximately **$1.6 million**) related to tax withholding on vested restricted unit grants[116](index=116&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) Book value per share decreased to **$49.42** as of September 30, 2023, from **$50.21** at year-end 2022 - Book value per share decreased to **$49.42** as of September 30, 2023, from **$50.21** as of December 31, 2022[117](index=117&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including CEO/CFO certifications and XBRL data files - The report lists filed exhibits, including CEO/CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL data files[119](index=119&type=chunk)

Financial Data and Key Metrics Changes - In Q3 2023, the company reported net income of $14 million or $0.51 per diluted share on revenues of $602 million, a decrease from $43 million or $1.58 per diluted share in Q3 2022 [18][19] - Adjusted net income for the third quarter was $24 million, or $0.86 per diluted share, compared to $43 million or $1.58 per diluted share in the same quarter last year [19] - Total revenues in the Title segment decreased by $126 million or 19%, while pretax income decreased by $16 million or 32% compared to the prior year quarter [20] - The employee cost ratio increased to 31% in Q3 2023 from 27% in the previous year, primarily due to lower operating revenues [35] Business Line Data and Key Metrics Changes - Domestic commercial revenues decreased by $9 million or 15%, primarily due to lower transaction volume, while average commercial fee per file increased to approximately $14,200 from $13,700 in the prior year [21] - Domestic residential revenues declined by $37 million or 18%, primarily due to lower purchase and refinancing volumes, with average residential fee per file at $3,000, down 10% from last year [31] - In the Real Estate Solutions segment, third quarter pretax income was $2.6 million compared to $3.4 million last year, with a pretax margin of 3.8% compared to 4.8% in Q3 2022 [34] Market Data and Key Metrics Changes - The real estate market continues to experience low housing inventory, high mortgage rates, and lower commercial and residential real estate activity, contributing to lower operating results compared to the previous year [18] - Mortgage rates increased to around 7.5% during Q3, impacting transaction volumes and resulting in historic lows for existing home sales [11] - The company noted ongoing challenges in sectors like office and multifamily properties, while energy remains strong [13] Company Strategy and Development Direction - The company is focused on enhancing its operating model and investing in technology to improve customer experience and operational efficiency [26] - Retaining key talent and investing in leadership and technology are priorities to achieve long-term growth in commercial markets [6][8] - The company aims to balance strong financial discipline with targeted investments to navigate the current challenging environment [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term view of the real estate market and the company's ability to become a premier title services company [16] - The company anticipates that 2024 will be a transition year, with expectations for a return to a more normalized market in 2025 [25][50] - Management acknowledged the challenges posed by elevated mortgage rates and low transaction volumes but emphasized the importance of maintaining focus on long-term goals [12][11] Other Important Information - The company has a solid financial position, with total cash and investments of approximately $380 million above statutory premium reserve requirements and a fully available $200 million line of credit [37] - The company expects title losses to average in the low 4% of title revenues for the full year 2023 [33] Q&A Session Summary Question: Margin expectations for the next 12 to 18 months - Management indicated that 2025 is expected to see a return to a more normalized margin as transaction volumes recover [40][50] Question: Impact of recent rate changes on order counts - Management noted that order counts have been affected by recent rate changes, with expectations for continued declines in the fourth quarter [42][44] Question: Drivers of market share gains - Management highlighted improvements in technology and customer experience as key drivers for market share gains, particularly in targeted states [45][46] Question: Investment income trajectory - Management stated that investment income has seen an uptick due to favorable rate environments, but volumes could impact future performance [51] Question: Tax rate normalization - Management confirmed expectations for the tax rate to return to historical levels after a temporary increase due to lower foreign tax credits [63]