Stewart(STC) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2024, was $60,944, an increase of 87.9$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$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$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$2,702,861 at the end of December 2023[10] - Total stockholders' equity rose to $1,414,335, reflecting an increase of 2.6$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$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$764,081,000 for the nine months ended September 30, 2024, compared to $723,476,000 in 2023, indicating a growth of 5.6$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$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$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]