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 ...

Financial Data and Key Metrics Changes - For Q2 2021, the company reported net income of $95 million and diluted earnings per share of $3.50 on total operating revenues of $802 million, with adjusted net income improving to $86 million from $32 million in the same quarter last year [13][14] - Total title revenues increased by $248 million or 50% compared to the previous year, driven by strong performances in residential agency and commercial operations [14] - The pretax margin for the title segment improved to 17% from 11% in Q2 2020 [14] Business Line Data and Key Metrics Changes - Residential revenues increased by $76 million or 47% due to higher purchase and refinancing transactions, with the residential fee per file improving by 15% to approximately $2,100 [15] - Domestic commercial revenues rose by $30 million or 97%, attributed to increased transaction volume and a higher average fee per file of $12,600 compared to $9,800 in the previous year [15] - Agency operations generated revenues of $390 million, which was $113 million or 41% higher than last year, with an average agency remittance rate of 17.5% [16] Market Data and Key Metrics Changes - Total international revenues increased by $29 million or 118%, primarily due to improved volumes in Canadian operations [16] - Total opened orders increased by 8%, while closed orders improved by 27% compared to the previous year, reflecting a strong housing market [16] Company Strategy and Development Direction - The company aims to become the premier title services company by focusing on targeted scale, operational improvement, talent upgrades, and acquisitions in core and ancillary business lines [6][7] - The management acknowledges the current real estate market's strength but remains realistic about its sustainability, emphasizing the need for strategic decisions to define the company through the current market and future cycles [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term real estate market while highlighting several watch items, including Fed policies, virus variants, and mortgage delinquency rates [11][12] - The company is focused on gaining scale in attractive direct markets and improving service and digital capabilities to enhance user experience [12] Other Important Information - The company's financial position remains solid, with total cash and investments approximately $600 million over regulatory requirements and $225 million available on its line of credit [18] - Shareholders' equity attributable to the company increased to $1.13 billion, with a book value per share of approximately $42 [18] Q&A Session Summary Question: Any reason to think that margins will change meaningfully from what you reported? - Management believes margins are sustainable and have made good progress towards their goal of doubling margins over three years, currently ahead of expectations due to market strength [22][24] Question: What are the expectations for the loss provision rate in the back half of the year? - Management indicated that the loss provision rate has been running lower due to moratoriums on foreclosures, but future activity could impact this rate [30][32] Question: What is the outlook for the ancillary services business margins? - Management aims to align ancillary services margins with corporate margins, noting improvements but acknowledging challenges due to market conditions [34][36] Question: How much impact did the Thomas title acquisition have on commercial orders? - Management stated that the acquisition had a minimal impact this quarter, but they are optimistic about the momentum in the commercial business [39] Question: Can you provide an update on the commercial market and Stewart's performance? - Management noted a broad-based recovery in the commercial market, with a focus on key sectors and markets, and expressed confidence in gaining market share [44][46]

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, 2021 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) Q1 2021 Results Conference Call April 22, 2021 8:30 AM ET Company Participants Nathaniel Otis - Senior Vice President and Director of Investor Relation Frederick Eppinger - Chief Executive Officer David Hisey - Chief Financial Officer Conference Call Participants Bose George - Keefe, Bruyette, & Woods John Campbell - Stephens Inc Geoffrey Murray Dunn - Dowling & Partners Securities Operator Hello, and thank you for joining the Stewart Information Services ...

Company Overview - Stewart Information Services Corporation operates primarily in the United States and has regional offices in Australia, Canada, Europe, Mexico, and the UK, providing title insurance and related services[12]. - As of December 31, 2020, approximately 92% of the company's combined debt and equity securities investment portfolios consisted of fixed income securities, with 91% rated A or higher[39]. - As of December 31, 2020, the company employed approximately 5,800 people, with about 5,200 in the U.S. and 600 internationally[41]. Financial Performance - For the year ended December 31, 2020, net income attributable to the company was $154.9 million, or $6.22 per diluted share, compared to $78.6 million, or $3.31 per diluted share, for the year ended December 31, 2019[85]. - Total revenues increased 18% to $2.3 billion in 2020, from $1.9 billion in 2019, primarily due to increased revenues from title operations and acquisitions[85]. - The company acquired several title offices and two appraisal management services companies in 2020, contributing $109.2 million to total revenues and $17.3 million to pretax income[86]. - For the fourth quarter 2020, net income attributable to the company was $59.7 million ($2.22 per diluted share), compared to break-even results for the fourth quarter 2019[87]. - Title segment operating revenues for the fourth quarter 2020 were $690.2 million, a 36% increase from $506.0 million in the fourth quarter 2019[90]. - Total operating expenses increased 14% in 2020 compared to 2019, in line with improved revenues[85]. Title Insurance Segment - The title insurance segment includes home and personal insurance services and tax-deferred exchanges, with revenues closely tied to real estate market activity and financing costs[13][26]. - Title insurance revenues are affected by factors such as consumer confidence, foreign currency exchange rates, and interest rates, with the first quarter typically being the least active[26]. - The demand for title insurance-related and mortgage services offerings is primarily dependent on the volume of residential and commercial real estate transactions[53]. - Title losses increased by $30.8 million, or 36%, in 2020 compared to 2019, driven by higher title premiums and increased loss provisioning due to COVID-19 uncertainties[137]. - The total estimated title losses reserve increased to $496.3 million in 2020 from $459.1 million in 2019, with known claims at $68.9 million and IBNR at $427.4 million[140]. Ancillary Services Segment - The ancillary services segment supports the mortgage industry with appraisal management and online notarization services, bolstered by acquisitions in 2020[35]. - Total operating revenues for ancillary services and corporate segment surged by 464% to $38.0 million in Q4 2020 from $6.7 million in Q4 2019[95]. - Ancillary services revenues increased 121% to $83.5 million in 2020, driven by $65.8 million from acquisitions[124]. Investments and Financial Position - Total cash and investments as of December 31, 2020, amounted to $1.1 billion, with $814.8 million held in the U.S.[143]. - Total debt was $101.8 million, while stockholders' equity stood at $1.0 billion as of December 31, 2020, resulting in a debt-to-equity ratio of approximately 10.0%[156]. - The company generated net proceeds of approximately $109.0 million from the issuance of new shares of Common Stock in 2020, primarily for acquisitions[155]. - Investment income declined 6% to $18.8 million in 2020 due to lower interest income from investments[125]. Regulatory and Compliance - The company’s insurance subsidiaries must comply with extensive government regulations, which could affect revenue growth[61]. - A downgrade of the company’s underwriters by rating agencies may reduce revenues and impact customer relationships[60]. - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2020, and concluded that it is effective[174]. Employee and Workplace - The company is committed to an inclusive workplace, ensuring equal treatment of all employees regardless of demographics[42]. - Employee costs increased by $46.0 million, or 8%, in 2020 compared to 2019, primarily due to acquisitions and higher incentive compensation[129]. - Employee costs as a percentage of total operating revenues decreased to 27.0% in 2020 from 30.2% in 2019[130]. Economic Factors - The company’s revenues and results of operations are affected by changes in economic conditions, particularly mortgage interest rates and real estate prices[52]. - The company’s financial performance could be adversely impacted by climate change and extreme weather events[59]. - The average 30-year mortgage interest rate for 2021 is expected to remain at 3.11%, with total lending estimated to decline 21% compared to 2020[117]. Future Outlook - The company anticipates that the 2021 loss ratio will be comparable to the full year 2020 loss ratio of 5.3%[91]. - New and existing home sales in 2021 are expected to grow 10% and 7%, respectively, compared to 2020[117].

Stewart Information Services Corporation (NYSE:STC) Q4 2020 Earnings Conference Call February 11, 2021 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, Inc. Geoffrey Dunn - Dowling & Partners Operator Hello and thank you for joining the Stewart Information Services Fourth Quarter and Fiscal Yearend 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, you’ll have a ...

Stewart Information Services Corporation (NYSE:STC) Q3 2020 Results Earnings Conference Call October 22, 2020 8:30 AM ET Company Participants Nat Otis - Head, Investor Relations Fred Eppinger - Chief Executive Officer David Hisey - Chief Financial Officer Conference Call Participants John Campbell - Stephens, Inc. Bose George - KBW Geoffrey Dunn - Dowling & Partners Operator Hello and thank you for joining the Stewart Information Services Third Quarter 2020 Earnings Call. At this time, all participants are ...