SCHEDULE I

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF OPERATIONS AND RETAINED EARNINGS



	For the Years Ended December 31,
	2015		2014		2013
	($000 omitted)
Revenues
Investment income	15,000		25,087		—
Other losses	—		(869	)	(3,164	)
Other income	922		90		263
	15,922		24,308		(2,901	)
Expenses
Employee costs	156		1,110		(91	)
Other operating expenses, including $276 each year to affiliates	7,617		3,806		1,329
Depreciation and amortization	162		421		527
Interest	1,726		2,054		2,494
	9,661		7,391		4,259

Income (loss) before taxes and (loss) income from subsidiaries	6,261		16,917		(7,160	)
Income tax expense	—		1		24
(Loss) income from subsidiaries	(12,465	)	12,837		70,210
Net (loss) income	(6,204	)	29,753		63,026

Retained earnings at beginning of year	479,733		452,314		391,447
Cash dividends on Common Stock	(18,010	)	(2,334	)	(2,159	)
Retained earnings at end of year	455,519		479,733		452,314

See accompanying note to financial statement information.

See accompanying Report of Independent Registered Public Accounting Firm.

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

BALANCE SHEETS



	As of December 31,
	2015		2014
	($000 omitted)
Assets
Cash and cash equivalents	832		15,210
Receivables:
Notes - due from subsidiaries	68,382		46,885
Other, including $120 and $4, respectively, from affiliates	1,093		497
Allowance for uncollectible amounts	(7	)	(10	)
	69,468		47,372
Property and equipment, at cost:
Furniture and equipment	2,893		2,893
Accumulated depreciation	(2,625	)	(2,463	)
	268		430
Title plant, at cost	48		48
Investments in subsidiaries, on an equity-method basis	653,519		688,858
Goodwill	8,470		8,470
Other assets	17,457		16,499
	750,062		776,887
Liabilities
Notes payable	98,000		60,000
Accounts payable and accrued liabilities, including $4 and $0, respectively, to affiliates	22,781		23,702
	120,781		83,702
Contingent liabilities and commitments	—		—
Stockholders’ equity
Common Stock – $1 par, authorized 50,000,000; issued 22,643,255 and 23,307,909; outstanding 22,291,094 and 22,955,748, respectively	22,643		23,308
Class B Common Stock– $1 par, authorized 1,500,000; issued and outstanding 1,050,012	1,050		1,050
Additional paid-in capital	156,692		179,205
Retained earnings ⁽¹⁾	455,519		479,733
Accumulated other comprehensive (loss) income:
Foreign currency translation adjustments	(13,360	)	(2,215	)
Unrealized investment gains	9,403		14,770
Treasury stock – 352,161 common shares, at cost	(2,666	)	(2,666	)
Total stockholders’ equity	629,281		693,185
	750,062		776,887

⁽¹⁾ Includes undistributed earnings of subsidiaries of $514,522 in 2015 and $544,997 in 2014.

See accompanying note to financial statement information.

See accompanying Report of Independent Registered Public Accounting Firm.

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF CASH FLOWS



	For the Years Ended December 31,
	2015		2014		2013
	($000 omitted)
Reconciliation of net (loss) income to cash used by operating activities:
Net (loss) income	(6,204	)	29,753		63,026
Add (deduct):
Depreciation and amortization	162		421		527
Other losses	—		869		3,164
Increase in receivables – net	(22,096	)	(47,232	)	(95	)
(Increase) decrease in other assets – net	(558	)	(828	)	2,413
Increase in payables and accrued liabilities – net	21,136		12,395		3,335
Losses (income) from subsidiaries	12,465		(12,837	)	(70,210	)
Other – net	(26,244	)	(31,824	)	(3,945	)
Cash used by operating activities	(21,339	)	(49,283	)	(1,785	)
Investing activities:
Dividends from subsidiaries	15,000		25,000		—
Proceeds from the sale of property and equipment –net	—		—		5
Collections on notes receivables	—		—		1
Cash provided by investing activities	15,000		25,000		6
Financing activities:
Proceeds from notes payable	45,000		60,000		—
Payments on notes payable	(7,000	)	—		—
Dividends paid	(18,010	)	(2,334	)	(2,159	)
Repurchases of Common Stock	(27,950	)	(22,048	)	—
Purchase of remaining interest of consolidated subsidiary	(209	)	(321	)	(1,442	)
Settlement of convertible debt	—		—		(1,149	)
Other – net	130		—		—
Cash (used) provided by financing activities	(8,039	)	35,297		(4,750	)
(Decrease) increase in cash and cash equivalents	(14,378	)	11,014		(6,529	)
Cash and cash equivalents at beginning of year	15,210		4,196		10,725
Cash and cash equivalents at end of year	832		15,210		4,196
Supplemental information:
Income taxes paid	1		24		34
Interest paid	1,681		546		4

See accompanying note to financial statement information.

See accompanying Report of Independent Registered Public Accounting Firm.

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

NOTE TO FINANCIAL STATEMENT INFORMATION

The Parent Company operates as a holding company, transacting substantially all of its business through its subsidiaries. Its consolidated financial statements are included in Part II, Item 8 of Form 10-K. The Parent Company financial statements should be read in conjunction with the aforementioned consolidated financial statements and notes thereto and financial statement schedules.

Certain prior year amounts in the Parent Company financial statements have been reclassified for comparative purposes. Net (loss) income and stockholders’ equity, as previously reported, were not affected.

Interest of $1.7 million on the Convertible Senior Notes was paid by a subsidiary in 2014. In October 2014, the remaining outstanding balance of the Convertible Senior Notes was converted into Common Stock as discussed in Note 10 to the consolidated financial statements.