QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☑ | ☐ | Non-accelerated filer | Emerging growth company | ||||
☐ | Accelerated filer | Smaller reporting company |
Item | Page | |
PART I – FINANCIAL INFORMATION | ||
1. | ||
2. | ||
3. | ||
4. | ||
PART II – OTHER INFORMATION | ||
1. | ||
1A. | ||
2. | ||
5. | ||
6. | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted, except per share) | |||||||||||
Revenues | |||||||||||
Title revenues: | |||||||||||
Direct operations | |||||||||||
Agency operations | |||||||||||
Ancillary services | |||||||||||
Operating revenues | |||||||||||
Investment income | |||||||||||
Net realized and unrealized gains (losses) | ( | ) | |||||||||
Expenses | |||||||||||
Amounts retained by agencies | |||||||||||
Employee costs | |||||||||||
Other operating expenses | |||||||||||
Title losses and related claims | |||||||||||
Depreciation and amortization | |||||||||||
Interest | |||||||||||
Income before taxes and noncontrolling interests | |||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||
Net income | |||||||||||
Less net income attributable to noncontrolling interests | |||||||||||
Net income attributable to Stewart | |||||||||||
Net income | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Foreign currency translation adjustments | ( | ) | |||||||||
Change in net unrealized gains and losses on investments | |||||||||||
Reclassification adjustment for realized gains and losses on investments | ( | ) | ( | ) | |||||||
Other comprehensive income, net of taxes: | |||||||||||
Comprehensive income | |||||||||||
Less net income attributable to noncontrolling interests | |||||||||||
Comprehensive income attributable to Stewart | |||||||||||
Basic average shares outstanding (000) | |||||||||||
Basic earnings per share attributable to Stewart | |||||||||||
Diluted average shares outstanding (000) | |||||||||||
Diluted earnings per share attributable to Stewart |
As of June 30, 2020 (Unaudited) | As of December 31, 2019 | ||||
($000 omitted) | |||||
Assets | |||||
Cash and cash equivalents | |||||
Short-term investments | |||||
Investments in debt and equity securities, at fair value | |||||
Receivables: | |||||
Premiums from agencies | |||||
Trade and other | |||||
Income taxes | |||||
Notes | |||||
Allowance for uncollectible amounts | ( | ) | ( | ) | |
Property and equipment: | |||||
Land | |||||
Buildings | |||||
Furniture and equipment | |||||
Accumulated depreciation | ( | ) | ( | ) | |
Operating lease assets | |||||
Title plants, at cost | |||||
Investments on equity method basis | |||||
Goodwill | |||||
Intangible assets, net of amortization | |||||
Deferred tax assets | |||||
Other assets | |||||
Liabilities | |||||
Notes payable | |||||
Accounts payable and accrued liabilities | |||||
Operating lease liabilities | |||||
Estimated title losses | |||||
Deferred tax liabilities | |||||
Contingent liabilities and commitments | |||||
Stockholders’ equity | |||||
Common Stock ($1 par value) and additional paid-in capital | |||||
Retained earnings | |||||
Accumulated other comprehensive income (loss): | |||||
Net unrealized gains on debt securities investments | ( | ) | |||
Foreign currency translation adjustments | ( | ) | |||
Treasury stock – 352,161 common shares, at cost | ( | ) | ( | ) | |
Stockholders’ equity attributable to Stewart | |||||
Noncontrolling interests | |||||
Total stockholders’ equity (23,699,228 and 23,709,407 shares outstanding) | |||||
Six Months Ended June 30, | |||||
2020 | 2019 | ||||
($000 omitted) | |||||
Reconciliation of net income to cash provided (used) by operating activities: | |||||
Net income | |||||
Add (deduct): | |||||
Depreciation and amortization | |||||
Provision for bad debt | |||||
Net realized and unrealized losses (gains) | ( | ) | |||
Amortization of net premium on debt securities investments | |||||
Payments for title losses less than (in excess of) provisions | ( | ) | |||
Adjustment for insurance recoveries of title losses | |||||
Decrease (increase) in receivables – net | ( | ) | |||
Increase in other assets – net | ( | ) | ( | ) | |
Decrease in accounts payable and other liabilities – net | ( | ) | ( | ) | |
Change in net deferred income taxes | |||||
Net income from equity investees | ( | ) | ( | ) | |
Dividends received from equity investees | |||||
Stock-based compensation expense | |||||
Other – net | ( | ) | |||
Cash provided (used) by operating activities | ( | ) | |||
Investing activities: | |||||
Proceeds from sales of investments in securities | |||||
Proceeds from matured investments in debt securities | |||||
Purchases of investments in securities | ( | ) | ( | ) | |
Net sales (purchases) of short-term investments | ( | ) | |||
Purchases of property and equipment, and real estate – net | ( | ) | ( | ) | |
Cash paid for acquisition of businesses | ( | ) | |||
Other – net | |||||
Cash (used) provided by investing activities | ( | ) | |||
Financing activities: | |||||
Proceeds from notes payable | |||||
Payments on notes payable | ( | ) | ( | ) | |
Distributions to noncontrolling interests | ( | ) | ( | ) | |
Repurchases of common stock | ( | ) | ( | ) | |
Cash dividends paid | ( | ) | ( | ) | |
Cash used by financing activities | ( | ) | ( | ) | |
Effects of changes in foreign currency exchange rates | ( | ) | |||
(Decrease) increase in cash and cash equivalents | ( | ) | |||
Cash and cash equivalents at beginning of period | |||||
Cash and cash equivalents at end of period | |||||
Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Noncontrolling interests | Total | ||||||||||||||
($000 omitted) | ||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||
Balance at December 31, 2019 | ( | ) | ( | ) | ||||||||||||||||
Net income attributable to Stewart | — | — | — | — | — | |||||||||||||||
Dividends on Common Stock ($0.60 per share) | — | — | ( | ) | — | — | — | ( | ) | |||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||
Stock repurchases | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||
Change in net unrealized gains and losses on investments, net of taxes | — | — | — | — | — | |||||||||||||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | — | — | — | ( | ) | — | — | ( | ) | |||||||||||
Foreign currency translation adjustments, net of taxes | — | — | — | ( | ) | — | — | ( | ) | |||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | |||||||||||
Balance at June 30, 2020 | ( | ) | ||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||
Balance at December 31, 2018 | ( | ) | ( | ) | ||||||||||||||||
Net income attributable to Stewart | — | — | — | — | — | |||||||||||||||
Dividends on Common Stock ($0.60 per share) | — | — | ( | ) | — | — | — | ( | ) | |||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||
Stock repurchases | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||
Change in net unrealized gains and losses on investments, net of taxes | — | — | — | — | — | |||||||||||||||
Reclassification adjustment for realized gains and losses on investments, net of taxes, net of taxes | — | — | — | — | — | |||||||||||||||
Foreign currency translation adjustments, net of taxes | — | — | — | — | — | |||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | |||||||||||
Net effect of other changes in ownership | — | — | — | — | — | |||||||||||||||
Balance at June 30, 2019 | ( | ) | ( | ) |
Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Noncontrolling interests | Total | ||||||||||||||
($000 omitted) | ||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||
Balances at March 31, 2020 | ( | ) | ( | ) | ||||||||||||||||
Net income attributable to Stewart | — | — | — | — | — | |||||||||||||||
Dividends on Common Stock ($0.30 per share) | — | — | ( | ) | — | — | — | ( | ) | |||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||
Stock repurchases | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||
Change in net unrealized gains and losses on investments, net of taxes | — | — | — | — | — | |||||||||||||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | — | — | — | ( | ) | — | — | ( | ) | |||||||||||
Foreign currency translation adjustments, net of taxes | — | — | — | — | — | |||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | |||||||||||
Balance at June 30, 2020 | ( | ) | ||||||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||
Balances at March 31, 2019 | ( | ) | ( | ) | ||||||||||||||||
Net income attributable to Stewart | — | — | — | — | — | |||||||||||||||
Dividends on Common Stock ($0.30 per share) | — | — | ( | ) | — | — | — | ( | ) | |||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||
Stock repurchases | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||
Change in net unrealized gains and losses on investments, net of taxes | — | — | — | — | — | |||||||||||||||
Reclassification adjustment for realized gains and losses on investments, net of taxes, net of taxes | — | — | — | — | — | |||||||||||||||
Foreign currency translation adjustments, net of taxes | — | — | — | — | — | |||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | |||||||||||
Net effect of other changes in ownership | — | — | — | — | — | |||||||||||||||
Balance at June 30, 2019 | ( | ) | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
Title insurance premiums: | |||||||||||
Direct | |||||||||||
Agency | |||||||||||
Escrow fees | |||||||||||
Search, abstract and valuation services | |||||||||||
Other revenues | |||||||||||
June 30, 2020 | December 31, 2019 | ||||
($000 omitted) | |||||
Investments in: | |||||
Debt securities | |||||
Equity securities | |||||
June 30, 2020 | December 31, 2019 | ||||||||||
Amortized costs | Fair values | Amortized costs | Fair values | ||||||||
($000 omitted) | |||||||||||
Municipal | |||||||||||
Corporate | |||||||||||
Foreign | |||||||||||
U.S. Treasury Bonds | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
Gains | Losses | Gains | Losses | ||||||||
($000 omitted) | |||||||||||
Municipal | |||||||||||
Corporate | |||||||||||
Foreign | |||||||||||
U.S. Treasury Bonds | |||||||||||
Amortized costs | Fair values | ||||
($000 omitted) | |||||
In one year or less | |||||
After one year through five years | |||||
After five years through ten years | |||||
After ten years | |||||
Less than 12 months | More than 12 months | Total | |||||||||||||||
Losses | Fair values | Losses | Fair values | Losses | Fair values | ||||||||||||
($000 omitted) | |||||||||||||||||
Municipal | |||||||||||||||||
Corporate | |||||||||||||||||
Foreign | |||||||||||||||||
U.S. Treasury Bonds | |||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||
Losses | Fair values | Losses | Fair values | Losses | Fair values | ||||||||||||
($000 omitted) | |||||||||||||||||
Municipal | |||||||||||||||||
Corporate | |||||||||||||||||
Foreign | |||||||||||||||||
U.S. Treasury Bonds | |||||||||||||||||
• | Level 1 – quoted prices in active markets for identical assets or liabilities; |
• | Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and |
• | Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Level 1 | Level 2 | Fair value measurements | ||||||
($000 omitted) | ||||||||
Investments in securities: | ||||||||
Debt securities: | ||||||||
Municipal | ||||||||
Corporate | ||||||||
Foreign | ||||||||
U.S. Treasury Bonds | ||||||||
Equity securities | ||||||||
Level 1 | Level 2 | Fair value measurements | ||||||
($000 omitted) | ||||||||
Investments in securities: | ||||||||
Debt securities: | ||||||||
Municipal | ||||||||
Corporate | ||||||||
Foreign | ||||||||
U.S. Treasury Bonds | ||||||||
Equity securities | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
Realized gains | |||||||||||
Realized losses | ( | ) | ( | ) | ( | ) | ( | ) | |||
Net unrealized investment gains (losses) recognized on equity securities still held at June 30 | ( | ) | ( | ) | |||||||
( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
Net investment gains (losses) recognized on equity securities during the period | ( | ) | ( | ) | |||||||
Less: Net realized (losses) gains on equity securities sold during the period | ( | ) | ( | ) | |||||||
Net unrealized investment gains (losses) recognized on equity securities still held at June 30 | ( | ) | ( | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
Proceeds from sales of debt securities | |||||||||||
Proceeds from sales of equity securities | |||||||||||
Total proceeds from sales of investments in securities |
Title | Ancillary Services and Corporate | Consolidated Total | ||||||
($000 omitted) | ||||||||
Balances at December 31, 2019 | ||||||||
Acquisitions | ||||||||
Balances at June 30, 2020 |
2020 | 2019 | ||||
($000 omitted) | |||||
Balances at January 1 | |||||
Provisions: | |||||
Current year | |||||
Previous policy years | |||||
Total provisions | |||||
Payments, net of recoveries: | |||||
Current year | ( | ) | ( | ) | |
Previous policy years | ( | ) | ( | ) | |
Total payments, net of recoveries | ( | ) | ( | ) | |
Effects of changes in foreign currency exchange rates | ( | ) | ( | ) | |
Balances at June 30 | |||||
Loss ratios as a percentage of title operating revenues: | |||||
Current year provisions | % | % | |||
Total provisions | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted, except per share) | |||||||||||
Numerator: | |||||||||||
Net income attributable to Stewart | |||||||||||
Denominator (000): | |||||||||||
Basic average shares outstanding | |||||||||||
Average number of dilutive shares relating to grants of restricted shares and units | |||||||||||
Diluted average shares outstanding | |||||||||||
Basic earnings per share attributable to Stewart | |||||||||||
Diluted earnings per share attributable to Stewart |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
Title segment: | |||||||||||
Revenues | |||||||||||
Depreciation and amortization | |||||||||||
Income before taxes and noncontrolling interest | |||||||||||
Ancillary services and corporate segment: | |||||||||||
Revenues | |||||||||||
Depreciation and amortization | |||||||||||
Loss before taxes and noncontrolling interest | ( | ) | ( | ) | ( | ) | ( | ) | |||
Consolidated Stewart: | |||||||||||
Revenues | |||||||||||
Depreciation and amortization | |||||||||||
Income before taxes and noncontrolling interest |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
($000 omitted) | |||||||||||
United States | |||||||||||
International | |||||||||||
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | ||||||||||||
Before-Tax Amount | Tax Expense (Benefit) | Net-of-Tax Amount | Before-Tax Amount | Tax Expense (Benefit) | Net-of-Tax Amount | ||||||||
($000 omitted) | |||||||||||||
Net unrealized gains and losses on investments: | |||||||||||||
Change in net unrealized gains and losses on investments | |||||||||||||
Reclassification adjustment for realized gains and losses on investments | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency translation adjustments | |||||||||||||
Other comprehensive income |
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | ||||||||||||
Before-Tax Amount | Tax Expense (Benefit) | Net-of-Tax Amount | Before-Tax Amount | Tax Expense (Benefit) | Net-of-Tax Amount | ||||||||
($000 omitted) | |||||||||||||
Net unrealized gains and losses on investments: | |||||||||||||
Change in net unrealized gains and losses on investments | |||||||||||||
Reclassification adjustment for realized gains and losses on investments | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | |||||||
Other comprehensive income |
• | $4.6 million of net realized and unrealized gains recorded in the title segment primarily relating to changes in the fair value of equity securities investments, |
• | $2.8 million of severance expenses related to cost savings initiatives recorded within employee costs in the title segment, and |
• | $0.5 million of net realized and unrealized gains recorded in the ancillary services and corporate segment primarily relating to settlements of cost-basis investments. |
• | $3.7 million of third-party advisory expenses related to the terminated Fidelity National Financial (FNF) merger transaction included in other operating expenses within the ancillary services and corporate segment, and |
• | $0.4 million of net realized and unrealized gains: ($0.2) million in the title segment and $0.6 million in the ancillary services and corporate segment. |
For the Three Months Ended June 30, | ||||||||
2020 | 2019 | % Change | ||||||
Operating revenues | 495.6 | 458.7 | 8 | % | ||||
Investment income | 4.3 | 5.2 | (17 | )% | ||||
Net realized and unrealized gains (losses) | 4.6 | (0.2 | ) | 2,178 | % | |||
Pretax income | 54.8 | 39.0 | 40 | % | ||||
Pretax margin | 10.9 | % | 8.4 | % |
For the Three Months Ended June 30, | ||||||||
2020 | 2019 | % Change | ||||||
Operating revenues | 11.2 | 7.8 | 43 | % | ||||
Net realized gains | 0.5 | 0.6 | (20 | )% | ||||
Pretax loss | (5.8 | ) | (9.7 | ) | 40 | % |
• | mortgage interest rates; |
• | availability of mortgage loans; |
• | number and average value of mortgage loan originations; |
• | ability of potential purchasers to qualify for loans; |
• | inventory of existing homes available for sale; |
• | ratio of purchase transactions compared with refinance transactions; |
• | ratio of closed orders to open orders; |
• | home prices; |
• | consumer confidence, including employment trends; |
• | demand by buyers; |
• | number of households; |
• | premium rates; |
• | foreign currency exchange rates; |
• | market share; |
• | ability to attract and retain highly productive sales associates; |
• | departure of revenue-attached employees; |
• | independent agency remittance rates; |
• | opening of new offices and acquisitions; |
• | office closures; |
• | number and value of commercial transactions, which typically yield higher premiums; |
• | government or regulatory initiatives, including tax incentives and the implementation of the new integrated disclosure requirements; |
• | acquisitions or divestitures of businesses; |
• | volume of distressed property transactions; |
• | seasonality and/or weather; and |
• | outbreaks of disease, including COVID-19 pandemic, and related quarantine orders and restrictions on |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | ||||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||||||||
Non-commercial | |||||||||||||||||||||
Domestic | 162.7 | 148.9 | 13.8 | 9 | % | 295.6 | 256.2 | 39.4 | 15 | % | |||||||||||
International | 20.9 | 22.4 | (1.5 | ) | (7 | )% | 40.0 | 38.1 | 1.9 | 5 | % | ||||||||||
183.6 | 171.3 | 12.3 | 7 | % | 335.6 | 294.3 | 41.3 | 14 | % | ||||||||||||
Commercial: | |||||||||||||||||||||
Domestic | 30.7 | 50.3 | (19.6 | ) | (39 | )% | 72.0 | 84.0 | (12.0 | ) | (14 | )% | |||||||||
International | 3.9 | 6.3 | (2.4 | ) | (38 | )% | 8.9 | 10.8 | (1.9 | ) | (18 | )% | |||||||||
34.6 | 56.6 | (22.0 | ) | (39 | )% | 80.9 | 94.8 | (13.9 | ) | (15 | )% | ||||||||||
Total direct title revenues | 218.2 | 227.9 | (9.7 | ) | (4 | )% | 416.5 | 389.1 | 27.4 | 7 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | ||||||||||
Opened Orders: | |||||||||||||||||
Commercial | 3,425 | 4,660 | (1,235 | ) | (27 | )% | 7,605 | 8,958 | (1,353 | ) | (15 | )% | |||||
Purchase | 56,920 | 65,172 | (8,252 | ) | (13 | )% | 110,572 | 118,719 | (8,147 | ) | (7 | )% | |||||
Refinance | 72,306 | 33,342 | 38,964 | 117 | % | 136,499 | 56,526 | 79,973 | 141 | % | |||||||
Other | 496 | 1,108 | (612 | ) | (55 | )% | 1,226 | 2,699 | (1,473 | ) | (55 | )% | |||||
Total | 133,147 | 104,282 | 28,865 | 28 | % | 255,902 | 186,902 | 69,000 | 37 | % | |||||||
Closed Orders: | |||||||||||||||||
Commercial | 3,122 | 4,349 | (1,227 | ) | (28 | )% | 6,757 | 7,853 | (1,096 | ) | (14 | )% | |||||
Purchase | 37,407 | 45,596 | (8,189 | ) | (18 | )% | 71,141 | 78,914 | (7,773 | ) | (10 | )% | |||||
Refinance | 51,133 | 18,754 | 32,379 | 173 | % | 82,882 | 31,997 | 50,885 | 159 | % | |||||||
Other | 317 | 955 | (638 | ) | (67 | )% | 761 | 1,951 | (1,190 | ) | (61 | )% | |||||
Total | 91,979 | 69,654 | 22,325 | 32 | % | 161,541 | 120,715 | 40,826 | 34 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | ||||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||||||||
Amounts retained by agencies | 228.7 | 191.1 | 37.6 | 20 | % | 428.1 | 367.6 | 60.5 | 17 | % | |||||||||||
As a % of agency revenues | 82.5 | % | 82.8 | % | 82.4 | % | 82.5 | % | |||||||||||||
Employee costs | 137.5 | 139.9 | (2.4 | ) | (2 | )% | 273.2 | 269.2 | 4.0 | 2 | % | ||||||||||
As a % of operating revenues | 27.1 | % | 30.0 | % | 28.7 | % | 31.4 | % | |||||||||||||
Other operating expenses | 74.6 | 86.1 | (11.5 | ) | (13 | )% | 146.5 | 163.2 | (16.7 | ) | (10 | )% | |||||||||
As a % of operating revenues | 14.7 | % | 18.4 | % | 15.4 | % | 19.0 | % | |||||||||||||
Title losses and related claims | 21.5 | 18.8 | 2.8 | 15 | % | 40.2 | 34.5 | 5.7 | 17 | % | |||||||||||
As a % of title revenues | 4.3 | % | 4.1 | % | 4.3 | % | 4.1 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | ||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||||||
Provisions – known claims: | |||||||||||||||||||
Current year | 3.4 | 2.4 | 1.0 | 42 | % | 4.6 | 4.4 | 0.2 | 5 | % | |||||||||
Prior policy years | 15.6 | 20.5 | (4.9 | ) | (24 | )% | 28.1 | 37.7 | (9.6 | ) | (25 | )% | |||||||
19.0 | 22.9 | (3.9 | ) | (17 | )% | 32.7 | 42.1 | (9.4 | ) | (22 | )% | ||||||||
Provisions – IBNR | |||||||||||||||||||
Current year | 17.9 | 15.9 | 2.0 | 13 | % | 35.2 | 29.4 | 5.8 | 20 | % | |||||||||
Prior policy years | 0.2 | 0.5 | (0.3 | ) | (60 | )% | 0.4 | 0.7 | (0.3 | ) | (43 | )% | |||||||
18.1 | 16.4 | 1.7 | 10 | % | 35.6 | 30.1 | 5.5 | 18 | % | ||||||||||
Transferred from IBNR to known claims | (15.6 | ) | (20.5 | ) | 4.9 | (24 | )% | (28.1 | ) | (37.7 | ) | 9.6 | (25 | )% | |||||
Total provisions | 21.5 | 18.8 | 2.7 | 14 | % | 40.2 | 34.5 | 5.7 | 17 | % |
June 30, 2020 | December 31, 2019 | ||||
($ in millions) | |||||
Known claims | 61.6 | 67.8 | |||
IBNR | 394.4 | 391.3 | |||
Total estimated title losses | 456.0 | 459.1 |
Six Months Ended June 30, | |||||
2020 | 2019 | ||||
($ in millions) | |||||
Net cash provided (used) by operating activities | 50.1 | (8.4 | ) | ||
Net cash (used) provided by investing activities | (38.4 | ) | 38.3 | ||
Net cash used by financing activities | (29.6 | ) | (22.8 | ) |
Exhibit | ||||
3.1 | - | |||
3.2 | - | |||
10.1 | - | |||
10.2† | - | |||
10.3† | - |
31.1* | - | |||
31.2* | - | |||
32.1* | - | |||
32.2* | - |
101.INS* | - | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.SCH* | - | XBRL Taxonomy Extension Schema Document | ||
101.CAL* | - | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF* | - | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB* | - | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* | - | XBRL Taxonomy Extension Presentation Linkbase Document |
* Filed herewith |
† Management contract or compensatory plan |
August 3, 2020 |
Date |
Stewart Information Services Corporation | ||
Registrant | ||
By: | /s/ David C. Hisey | |
David C. Hisey, Chief Financial Officer, Secretary and Treasurer |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Frederick H. Eppinger | ||
Name: | Frederick H. Eppinger | |
Title: | Chief Executive Officer |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ David C. Hisey | ||
Name: | David C. Hisey | |
Title: | Chief Financial Officer, Secretary and Treasurer |
/s/ Frederick H. Eppinger | ||
Name: | Frederick H. Eppinger | |
Title: | Chief Executive Officer |
/s/ David C. Hisey | ||
Name: | David C. Hisey | |
Title: | Chief Financial Officer, Secretary and Treasurer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Common stock, shares outstanding (in shares) | 23,699,228 | 23,709,407 |
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in usd per share) | $ 0.3 | $ 0.3 | $ 0.60 | $ 0.60 |
Interim financial statements |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Interim financial statements | Interim financial statements. The financial information contained in this report for the three months ended June 30, 2020 and 2019, and as of June 30, 2020, is unaudited. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020 (2019 Form 10-K). A. Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. B. Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. C. Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from current operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $504.2 million and $483.4 million at June 30, 2020 and December 31, 2019, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $39.4 million and $39.7 million at June 30, 2020 and December 31, 2019, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. D. Amendment to the line of credit facility. On May 7, 2020, in relation to its line of credit facility (as disclosed in Note 10 of the 2019 Form 10-K), the Company entered into an amended and restated credit agreement (Amended Credit Agreement), which increased the available unsecured line of credit commitment from $150.0 million to $200.0 million and extended the maturity of the line of credit to May 2025. The terms of the Amended Credit Agreement, which includes an additional $50.0 million that the Company can request, did not significantly change from the prior line of credit agreement. E. Impact of the COVID-19 pandemic. In March 2020, a global pandemic escalated relating to a novel strain of coronavirus (COVID-19), which resulted in a slowdown in the global economy and a U.S. declaration of a national emergency. In response to the pandemic, health and governmental bodies, including the state of Texas where the Company is headquartered, issued travel restrictions, quarantine orders, temporary closures of non-essential businesses and other restrictive measures. To date, various levels of restrictions are still in place across the U.S. to address the continuous spread of COVID-19. Although the title insurance industry has been deemed essential in the U.S., the pandemic and measures to contain it have caused disruptions in the real estate market and in the Company's business operations. While the Company continues to close transactions on a daily basis, as it works through a pipeline of opened orders, there is near-term uncertainty regarding future real estate market transaction volumes and the impacts to the Company's results of operations. To the extent that the COVID-19 pandemic continues or worsens, it could adversely impact the Company's future operational and financial performance, which may result in impairments of its assets. The Company is currently unable to determine the effects the COVID-19 pandemic will have on the Company's future financial statements or results of operations.
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Revenues |
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Revenues | Revenues. The Company's operating revenues, summarized by type, are as follows:
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Investments in debt and equity securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in debt and equity securities | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows:
As of June 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows:
Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows:
Debt securities as of June 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):
Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020, were:
The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2020 was 8. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were:
Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows:
Realized gains for the second quarter 2020 and 2019 included $1.1 million and $0.7 million, respectively, of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments). Realized losses for the second quarter and first six months of 2020 included $0.6 million and $1.2 million, respectively, of losses from the sale of investment securities. Investment gains and losses recognized related to investments in equity securities are as follows:
Proceeds from sales of investments in securities are as follows:
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Fair value measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements | Fair value measurements. The Fair Value Measurements and Disclosures Topic (Topic 820) of the Financial Accounting Standards Board's Accounting Standards Codification (ASC) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. Topic 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows:
As of June 30, 2020, financial instruments measured at fair value on a recurring basis are summarized below:
As of December 31, 2019, financial instruments measured at fair value on a recurring basis are summarized below:
As of June 30, 2020, Level 1 financial instruments consist of equity securities. Level 2 financial instruments consist of municipal, governmental, and corporate bonds, both U.S. and foreign. In accordance with the Company’s policies and guidelines which incorporate relevant statutory requirements, the Company’s third-party registered investment manager invests only in securities rated as investment grade or higher by the major rating services, where observable valuation inputs are significant. The fair value of the Company's investments in debt and equity securities is primarily determined using a third-party pricing service provider. The third-party pricing service provider calculates the fair values using both market approach and model valuation methods, as well as pricing information obtained from brokers, dealers and custodians. Management ensures the reasonableness of the third-party service valuations by comparing them with pricing information from the Company's investment manager.
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Net realized and unrealized (losses) gains |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized (losses) gains | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows:
As of June 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows:
Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows:
Debt securities as of June 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):
Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020, were:
The number of specific debt investment holdings held in an unrealized loss position as of June 30, 2020 was 8. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were:
Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows:
Realized gains for the second quarter 2020 and 2019 included $1.1 million and $0.7 million, respectively, of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments). Realized losses for the second quarter and first six months of 2020 included $0.6 million and $1.2 million, respectively, of losses from the sale of investment securities. Investment gains and losses recognized related to investments in equity securities are as follows:
Proceeds from sales of investments in securities are as follows:
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Goodwill and other intangibles |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and other intangibles | Goodwill and other intangibles. The summary of changes in goodwill is as follows.
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Estimated title losses |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated title losses | Estimated title losses. A summary of estimated title losses for the six months ended June 30 is as follows:
Provisions in the first six months of 2020 increased compared to the same period in 2019, primarily as a result of increased title revenues. Claim payments in the first six months of 2020 decreased primarily due to lower payments on large claims compared to the corresponding period in 2019, while the 2020 reduction effect relating to foreign currency exchange rate changes were primarily influenced by the depreciation of the Canadian dollar against the U.S. dollar during the six months ended June 30, 2020.
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Share-based payments |
6 Months Ended |
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Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based payments | Share-based payments. Prior to 2020, the Company granted time-based and performance-based restricted stock units to executives and senior management employees. Each restricted stock unit represents a contractual right to receive a share of the Company's common stock. The time-based units vest on each of the first three anniversaries of the grant date, while the performance-based units vest upon achievement of certain financial objectives over a period of approximately three years. During the first six months of 2020, the Company granted time-based restricted stock units and nonqualified stock options, in lieu of performance-based restricted stock units. The stock options vest and may be exercised at a strike price of $39.76 on each of the first three anniversaries of the grant date at a rate of 20%, 30% and 50%, chronologically, and expire 10 years after the grant date. |
Earnings per share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | Earnings per share. Basic earnings per share (EPS) attributable to Stewart is calculated by dividing net income attributable to Stewart by the weighted-average number of shares of Common Stock outstanding during the reporting periods. Outstanding shares of Common Stock granted to employees that are not yet vested (restricted shares) are excluded from the calculation of the weighted-average number of shares outstanding for calculating basic EPS. To calculate diluted EPS, the number of shares is adjusted to include the number of additional shares that would have been outstanding if restricted shares and units were vested and stock options were exercised. In periods of loss, dilutive shares are excluded from the calculation of the diluted EPS and diluted EPS is computed in the same manner as basic EPS. The calculation of the basic and diluted EPS is as follows:
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Contingent liabilities and commitments |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities and commitments | Contingent liabilities and commitments. In the ordinary course of business, the Company guarantees the third-party indebtedness of certain of its consolidated subsidiaries. As of June 30, 2020, the maximum potential future payments on the guarantees are not more than the related notes payable recorded in the condensed consolidated balance sheets. The Company also guarantees the indebtedness related to lease obligations of certain of its consolidated subsidiaries. The maximum future obligations arising from these lease-related guarantees are not more than the Company’s future lease obligations, as presented on the condensed consolidated balance sheets, plus lease operating expenses. As of June 30, 2020, the Company also had unused letters of credit aggregating $5.2 million related to workers’ compensation and other insurance. The Company does not expect to make any payments on these guarantees.
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Regulatory and legal developments |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Regulatory and legal developments | Regulatory and legal developments. The Company is subject to claims and lawsuits arising in the ordinary course of its business, most of which involve disputed policy claims. In some of these lawsuits, the plaintiffs seek exemplary or treble damages in excess of policy limits. The Company does not expect that any of these ordinary course proceedings will have a material adverse effect on its consolidated financial condition or results of operations. The Company believes that it has adequate reserves for the various litigation matters and contingencies discussed in this paragraph and that the likely resolution of these matters will not materially affect its consolidated financial condition or results of operations. Additionally, the Company receives from time to time various inquiries from governmental regulators concerning practices in the insurance industry. Many of these practices do not concern title insurance. To the extent the Company is in receipt of such inquiries, it believes that it has adequately reserved for these matters and does not anticipate that the outcome of these inquiries will materially affect its consolidated financial condition or results of operations. |
Segment information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment information | Segment information. The Company reports two operating segments: title and ancillary services and corporate. The title segment provides services needed to transfer title to property in a real estate transaction and includes services such as searching, examining, closing and insuring the condition of the title to the property. In addition, the title segment includes home and personal insurance services and Internal Revenue Code Section 1031 tax-deferred exchanges. The ancillary services and corporate segment includes search and valuation services, which are the principal offerings of ancillary services, and expenses of the parent holding company and certain other enterprise-wide overhead costs (net of centralized administrative services costs allocated to respective operating businesses). Selected statement of operations information related to these segments is as follows:
The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Revenues generated in the United States and all international operations are as follows:
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Other comprehensive income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income. Changes in the balances of each component of other comprehensive income and the related tax effects are as follows:
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Interim financial statements (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. |
Consolidation | Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. |
Restrictions on cash and investments | Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from current operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $504.2 million and $483.4 million at June 30, 2020 and December 31, 2019, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $39.4 million and $39.7 million at June 30, 2020 and December 31, 2019, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. |
Revenues (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of operating revenues | The Company's operating revenues, summarized by type, are as follows:
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Investments in debt and equity securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in debt securities | The total fair values of the Company's investments in debt and equity securities are as follows:
The amortized costs and fair values of investments in debt securities are as follows:
Proceeds from sales of investments in securities are as follows:
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Investments in equity securities | The total fair values of the Company's investments in debt and equity securities are as follows:
Investment gains and losses recognized related to investments in equity securities are as follows:
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Gross unrealized gains and losses | Gross unrealized gains and losses on investments in debt securities are as follows:
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Debt securities according to contractual terms | Debt securities as of June 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights):
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Gross unrealized losses on investments and fair values of related securities | Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were:
Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020, were:
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Fair value measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments measured at fair value on recurring basis | As of June 30, 2020, financial instruments measured at fair value on a recurring basis are summarized below:
As of December 31, 2019, financial instruments measured at fair value on a recurring basis are summarized below:
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Net realized and unrealized (losses) gains (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross realized investment and other gains and losses | Realized and unrealized gains and losses are detailed as follows:
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Investments in equity securities still held | The total fair values of the Company's investments in debt and equity securities are as follows:
Investment gains and losses recognized related to investments in equity securities are as follows:
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Proceeds from sale of investments in securities | The total fair values of the Company's investments in debt and equity securities are as follows:
The amortized costs and fair values of investments in debt securities are as follows:
Proceeds from sales of investments in securities are as follows:
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Goodwill and other intangibles (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of goodwill | The summary of changes in goodwill is as follows.
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Estimated title losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of estimated title losses | A summary of estimated title losses for the six months ended June 30 is as follows:
|
Earnings per share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share, basic and diluted | The calculation of the basic and diluted EPS is as follows:
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Segment information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected statement of operations and income (loss) information related to segments | Selected statement of operations information related to these segments is as follows:
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Revenues generated in domestic and all international operations | Revenues generated in the United States and all international operations are as follows:
|
Other comprehensive income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the balances of each component of other comprehensive income (loss) | Changes in the balances of each component of other comprehensive income and the related tax effects are as follows:
|
Interim financial statements - Narrative (Details) - USD ($) |
Jun. 30, 2020 |
May 07, 2020 |
May 06, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Investments restricted for statutory reserve funds | $ 504,200,000 | $ 483,400,000 | ||
Restricted cash and cash equivalent | $ 39,400,000 | $ 39,700,000 | ||
Amended Credit Agreement | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility | $ 200,000,000.0 | $ 150,000,000.0 | ||
Line of credit additional | $ 50,000,000.0 |
Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 516,105 | $ 472,075 | $ 956,005 | $ 870,595 |
Title insurance premiums, Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 149,745 | 162,367 | 288,028 | 274,285 |
Title insurance premiums, Agency | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 277,387 | 230,817 | 519,417 | 445,680 |
Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41,433 | 36,611 | 74,519 | 61,904 |
Search, abstract and valuation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,829 | 19,248 | 38,906 | 42,187 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,362 | 17,455 | 31,659 | 32,834 |
Operating revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 506,756 | $ 466,498 | $ 952,529 | $ 856,890 |
Investments in debt and equity securities - Investments in Debt and Equity Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities | $ 612,891 | $ 605,721 |
Equity securities | 32,456 | 39,318 |
Investments in debt and equity securities | $ 645,347 | $ 645,039 |
Investments in debt and equity securities - Additional Information (Details) $ in Millions |
Jun. 30, 2020
USD ($)
investment
|
Dec. 31, 2019
USD ($)
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment (losses) gains on equity securities held | $ | $ 0.4 | $ 6.9 |
Number of investments in an unrealized loss position | 8 | |
Number of investments in an unrealized loss positions for more than 12 months | 3 |
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 582,054 | $ 592,648 |
Fair values | 612,891 | 605,721 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 47,635 | 52,176 |
Fair values | 50,068 | 53,823 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 301,299 | 299,074 |
Fair values | 319,972 | 309,142 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 226,561 | 234,734 |
Fair values | 236,224 | 236,073 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 6,559 | 6,664 |
Fair values | $ 6,627 | $ 6,683 |
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 31,132 | $ 14,162 |
Losses | 295 | 1,089 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 2,434 | 1,649 |
Losses | 1 | 2 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 18,926 | 10,091 |
Losses | 253 | 23 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 9,680 | 2,362 |
Losses | 17 | 1,023 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 92 | 60 |
Losses | $ 24 | $ 41 |
Investments in debt and equity securities - Debt Securities According to Contractual Terms (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Amortized costs | ||
In one year or less | $ 69,702 | |
After one year through five years | 313,470 | |
After five years through ten years | 165,852 | |
After ten years | 33,030 | |
Amortized costs, total | 582,054 | $ 592,648 |
Fair values | ||
In one year or less | 70,474 | |
After one year through five years | 326,654 | |
After five years through ten years | 179,896 | |
After ten years | 35,867 | |
Fair values, total | $ 612,891 | $ 605,721 |
Net realized and unrealized (losses) gains - Gross Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains | $ 1,355 | $ 791 | $ 1,508 | $ 953 |
Realized losses | (657) | (59) | (1,347) | (363) |
Net unrealized investment gains (losses) recognized on equity securities still held at June 30 | 4,366 | (310) | (6,188) | 3,236 |
Investment and other gains (losses) – net | 5,064 | 422 | (6,027) | $ 3,826 |
Equity method investment, realized gain | 1,100 | $ 700 | ||
Debt securities, realized losses | $ 600 | $ 1,200 |
Net realized and unrealized (losses) gains - Net Gains on Investments in Equity Securities Still Held (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized on equity securities during the period | $ 3,966 | $ (264) | $ (7,095) | $ 3,393 |
Less: Net realized (losses) gains on equity securities sold during the period | (400) | 46 | (907) | 157 |
Net unrealized investment gains (losses) recognized on equity securities still held at June 30 | $ 4,366 | $ (310) | $ (6,188) | $ 3,236 |
Net realized and unrealized (losses) gains - Proceeds from the Sale of Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of debt securities | $ 3,270 | $ 2,734 | $ 14,773 | $ 9,052 |
Proceeds from sales of equity securities | 433 | 260 | 726 | 900 |
Total proceeds from sales of investments in securities | $ 3,703 | $ 2,994 | $ 15,499 | $ 9,952 |
Goodwill and other intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2020 |
|
Goodwill [Roll Forward] | |||
Beginning balances | $ 248,890 | $ 248,890 | |
Acquisitions | 30,967 | ||
Ending balance | $ 279,857 | 279,857 | |
Title | |||
Goodwill [Roll Forward] | |||
Beginning balances | 243,161 | 243,161 | |
Acquisitions | 1,100 | 1,056 | |
Ending balance | 244,217 | 244,217 | |
Ancillary Services and Corporate | |||
Goodwill [Roll Forward] | |||
Beginning balances | $ 5,729 | 5,729 | |
Acquisitions | 29,900 | 29,911 | |
Ending balance | $ 35,640 | $ 35,640 |
Goodwill and other intangibles - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2020 |
|
Goodwill [Line Items] | |||
Increase in goodwill | $ 30,967 | ||
Ancillary Services and Corporate | |||
Goodwill [Line Items] | |||
Increase in goodwill | $ 29,900 | 29,911 | |
Title | |||
Goodwill [Line Items] | |||
Increase in goodwill | $ 1,100 | $ 1,056 |
Estimated title losses (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balances at beginning of period | $ 459,053 | $ 461,560 |
Provisions: | ||
Current year | 39,811 | 33,833 |
Previous policy years | 361 | 640 |
Total provisions | 40,172 | 34,473 |
Payments, net of recoveries: | ||
Current year | (5,420) | (5,722) |
Previous policy years | (33,516) | (39,929) |
Total payments, net of recoveries | (38,936) | (45,651) |
Effects of changes in foreign currency exchange rates | (4,264) | (174) |
Balances at end of period | $ 456,025 | $ 450,208 |
Loss ratios as a percentage of title operating revenues: | ||
Current year provisions | 4.30% | 4.10% |
Total provisions | 4.30% | 4.10% |
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Numerator: | ||||
Net income attributable to Stewart | $ 34,146 | $ 19,306 | $ 39,322 | $ 12,540 |
Denominator | ||||
Basic average shares outstanding (in shares) | 23,656 | 23,614 | 23,647 | 23,605 |
Average number of dilutive shares relating to grants of restricted shares and units (in shares) | 100 | 144 | 110 | 145 |
Diluted average shares outstanding (in shares) | 23,756 | 23,758 | 23,757 | 23,750 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 1.44 | $ 0.82 | $ 1.66 | $ 0.53 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 1.44 | $ 0.81 | $ 1.66 | $ 0.53 |
Contingent liabilities and commitments (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee of indebtedness, relating to unused letters of credit | $ 5.2 |
Segment information - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment information - Selected Statement of Operations and Income (Loss) Information Related to Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 516,105 | $ 472,075 | $ 956,005 | $ 870,595 |
Depreciation and amortization | 4,061 | 5,775 | 8,292 | 11,764 |
Income (loss) before taxes and noncontrolling interests | 49,020 | 29,352 | 58,289 | 22,126 |
Title segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 504,436 | 463,636 | 938,875 | 848,074 |
Depreciation and amortization | 3,733 | 5,048 | 7,554 | 10,200 |
Income (loss) before taxes and noncontrolling interests | 54,795 | 39,041 | 69,629 | 38,661 |
Ancillary services and corporate segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,669 | 8,439 | 17,130 | 22,521 |
Depreciation and amortization | 328 | 727 | 738 | 1,564 |
Income (loss) before taxes and noncontrolling interests | $ (5,775) | $ (9,689) | $ (11,340) | $ (16,535) |
Segment information - Revenues Generated in United States and All International Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 516,105 | $ 472,075 | $ 956,005 | $ 870,595 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 489,945 | 441,614 | 904,072 | 818,096 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 26,160 | $ 30,461 | $ 51,933 | $ 52,499 |
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