Schedule I - Financial Information of the Registrant (Parent Company)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule I - Financial Information of the Registrant (Parent Company)

SCHEDULE I

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF INCOME AND RETAINED EARNINGS

	For the Years Ended December 31,
	2022	2021	2020
	(in $ thousands)
Revenues
Interest income and other net realized (losses) gains	(1,639)	(281)	1,182
Expenses
Interest	18,276	5,101	2,511
Other operating expenses	8,161	6,924	9,262
	26,437	12,025	11,773
Loss before taxes and income from investments in subsidiaries	(28,076)	(12,306)	(10,591)
Income tax expense	(8)	—	(15)
Income from investments in subsidiaries	190,389	335,522	165,511
Net income	162,305	323,216	154,905
Retained earnings at beginning of year	974,800	688,819	564,392
Cash dividends on Common Stock	(45,289)	(37,235)	(30,478)
Retained earnings at end of year	1,091,816	974,800	688,819

See accompanying notes 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,
	2022	2021
	(in $ thousands)
Assets
Cash and cash equivalents	31,912	15,527
Receivables from affiliates	49,055	21,519
Property and equipment, at cost:
Furniture and equipment	21	47
Accumulated depreciation	(21)	(46)
	—	1
Investments in subsidiaries, on an equity-method basis	1,736,570	1,698,280
Operating lease assets	4,180	5,859
Goodwill	8,068	8,068
Other assets	16,730	19,659
	1,846,515	1,768,913
Liabilities
Accounts payable and other liabilities	24,036	24,829
Operating lease liabilities	5,720	7,961
Notes payable	454,608	454,106
	484,364	486,896
Contingent liabilities and commitments	—	—
Stockholders’ equity
Common Stock – $1 par, authorized 51,500,000; issued 27,482,573 and 27,245,591; outstanding 27,130,412 and 26,893,430, respectively	27,483	27,246
Additional paid-in capital	296,861	282,383
Retained earnings	1,091,816	974,800
Accumulated other comprehensive income (loss) (AOCI):
Foreign currency translation adjustments	(23,856)	(8,917)
Net unrealized investment gains	(27,487)	9,171
Treasury stock – 352,161 common shares, at cost	(2,666)	(2,666)
Total stockholders’ equity	1,362,151	1,282,017
	1,846,515	1,768,913

See accompanying notes 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,
	2022	2021	2020
	(in $ thousands)
Reconciliation of net income to cash provided by operating activities:
Net income	162,305	323,216	154,905
Add (deduct):
Depreciation	—	—	4
Increase in receivables – net	(27,536)	(19,261)	(1,998)
Decrease (increase) in other assets – net	2,925	(1,574)	(529)
(Decrease) increase in payables and accrued liabilities – net	(1,963)	(297)	2,978
Income from and other adjustments for subsidiaries	31,886	(31,841)	(140,816)
Cash provided by operating activities	167,617	270,243	14,544
Investing activities:
Investments in and contributions to subsidiaries	(109,126)	(615,147)	(85,470)
Collections on notes receivables	—	45,193	40,000
Increases in notes receivables	—	—	(80,000)
Cash used by investing activities	(109,126)	(569,954)	(125,470)
Financing activities:
Dividends paid	(44,672)	(36,637)	(30,226)
Repurchases of Common Stock	(3,262)	(2,252)	(1,054)
Proceeds from stock option and employee stock purchase plan exercises	5,828	2,715	—
Proceeds from notes payable	—	1,004,703	—
Payments on notes payable	—	(643,875)	—
Purchase of remaining interest of consolidated subsidiary	—	(5,616)	—
Issuance of new Common Stock	—	—	108,961
Payment for debt issuance costs	—	(7,404)	—
Cash (used) provided by financing activities	(42,106)	311,634	77,681
Increase (decrease) in cash and cash equivalents	16,385	11,923	(33,245)
Cash and cash equivalents at beginning of year	15,527	3,604	36,849
Cash and cash equivalents at end of year	31,912	15,527	3,604
Supplemental information:
Income taxes paid, net	—	5	180
Interest paid	17,271	2,795	2,490

See accompanying notes to financial statement information.

See accompanying Report of Independent Registered Public Accounting Firm.

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

NOTES 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.

Dividends received. During 2022, 2021 and 2020, Stewart Title Guaranty Company, a wholly-owned subsidiary, paid to the Parent Company dividends of $150.0 million, $293.9 million and $30.0 million, respectively. Also, during 2022 and 2021, the Parent Company received dividends of $58.7 million and $2.0 million, respectively, from its unregulated subsidiaries, primarily related to real estate solutions operations.