SCHEDULE I

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF OPERATIONS AND RETAINED EARNINGS



	For the Years Ended December 31,
	2016		2015		2014
	($000 omitted)
Revenues
Investment income	20,000		15,000		25,087
Other losses	—		—		(869	)
Other income	1,252		922		90
	21,252		15,922		24,308
Expenses
Employee costs	832		156		1,110
Other operating expenses, including $276 each year to affiliates	6,641		7,617		3,806
Depreciation	69		162		421
Interest	2,726		1,726		2,054
	10,268		9,661		7,391

Income before taxes and income (losses) from subsidiaries	10,984		6,261		16,917
Income tax expense	2,928		—		1
Income (losses) from subsidiaries	47,422		(12,465	)	12,837
Net income (loss)	55,478		(6,204	)	29,753

Retained earnings at beginning of year	455,519		479,733		452,314
Cash dividends on Common Stock	(27,840	)	(18,010	)	(2,334	)
Cash paid on Class B Common Shares conversion	(12,000	)	—		—
Cumulative effect adjustment on adoption of new accounting pronouncement	631		—		—
Retained earnings at end of year	471,788		455,519		479,733

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,
	2016		2015
	($000 omitted)
Assets
Cash and cash equivalents	2,890		832
Receivables:
Notes - due from subsidiaries	40,879		68,382
Receivables from affiliates	848		1,093
Allowance for uncollectible amounts	(4	)	(7	)
	41,723		69,468
Property and equipment, at cost:
Furniture and equipment	2,733		2,893
Accumulated depreciation	(2,512	)	(2,625	)
	221		268
Title plant, at cost	48		48
Investments in subsidiaries, on an equity-method basis	688,837		653,519
Goodwill	8,470		8,470
Other assets	16,698		17,457
	758,887		750,062
Liabilities
Notes payable	92,875		98,000
Accounts payable and other liabilities	24,812		22,781
	117,687		120,781
Contingent liabilities and commitments	—		—
Stockholders’ equity
Common Stock – $1 par, authorized 50,000,000; issued 23,783,440 and 22,643,255; outstanding 23,431,279 and 22,291,094, respectively	23,783		22,643
Class B Common Stock – $1 par, authorized 1,500,000; issued and outstanding 1,050,012 as of December 31, 2015; retired in 2016	—		1,050
Additional paid-in capital	157,176		156,692
Retained earnings ⁽¹⁾	471,788		455,519
Accumulated other comprehensive (loss) income:
Foreign currency translation adjustments	(16,727	)	(13,360	)
Unrealized investment gains	7,846		9,403
Treasury stock – 352,161 common shares, at cost	(2,666	)	(2,666	)
Total stockholders’ equity	641,200		629,281
	758,887		750,062

⁽¹⁾ Includes undistributed earnings of subsidiaries of $522,104 in 2016 and $514,522 in 2015.

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,
	2016		2015		2014
	($000 omitted)
Reconciliation of net income (loss) to cash provided (used) by operating activities:
Net income (loss)	55,478		(6,204	)	29,753
Add (deduct):
Depreciation	69		162		421
Other losses	—		—		869
Decrease (increase) in receivables – net	245		(596	)	(357	)
Decrease (increase) in other assets – net	359		(558	)	(828	)
(Decrease) increase in payables and accrued liabilities – net	(496	)	(515	)	12,395
(Income) losses from subsidiaries	(47,421	)	12,465		(12,837	)
Other – net	(6,731	)	(4,593	)	(31,824	)
Cash provided (used) by operating activities	1,503		161		(2,408	)
Investing activities:
Dividends from subsidiary	20,000		15,000		25,000
Purchase of property and equipment –net	(22	)	—		—
Collections on notes receivables	27,500		—		—
Increases in notes receivables	—		(21,500	)	(46,875	)
Cash provided (used) by investing activities	47,478		(6,500	)	(21,875	)
Financing activities:
Proceeds from notes payable	20,000		45,000		60,000
Payments on notes payable	(25,125	)	(7,000	)	—
Dividends paid	(27,840	)	(18,010	)	(2,334	)
Cash paid on Class B Common Shares conversion	(12,000	)	—		—
Repurchases of Common Stock	(1,053	)	(27,950	)	(22,048	)
Purchase of remaining interest of consolidated subsidiary	(991	)	(209	)	(321	)
Other – net	86		130		—
Cash (used) provided by financing activities	(46,923	)	(8,039	)	35,297
Increase (decrease) in cash and cash equivalents	2,058		(14,378	)	11,014
Cash and cash equivalents at beginning of year	832		15,210		4,196
Cash and cash equivalents at end of year	2,890		832		15,210
Supplemental information:
Income taxes paid	1		1		24
Interest paid	2,716		1,681		546

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.

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

Investment income. During 2016, 2015 and 2014, Guaranty paid to the Parent Company dividends of $20.0 million, $15.0 million and $25.0 million, respectively.

Class B Common Stock. In April 2016, the Parent Company's stockholders approved the Class B Exchange Agreement, in which all outstanding shares of Class B Common Stock were retired in exchange for shares of Common Stock plus $12.0 million in cash. Refer to Note 12 to the consolidated financial statements for details.

Income taxes. The Parent Company consistently generates losses, exclusive of dividends or equity earnings from its subsidiaries, and is not expected to generate future income without its subsidiaries. As a result, an increased valuation allowance was recorded during 2016 against deferred tax assets, net of definite-lived deferred tax liabilities, which more-likely-than-not will not be realized by the Parent Company.