Exhibit 99.1

 

NEWS RELEASE

STEWART INFORMATION SERVICES CORP. P.O. Box 2029 Houston, Texas 77252-2029 www.stewart.com CONTACT Kathryn Bass / Brian Glaze Investor Relations (713) 625-8633

Stewart Reports Third Quarter 2024 Results

· Total revenues of $667.9 million ($663.2 million on an adjusted basis) compared to $601.7 million ($603.7 million on an adjusted basis) in the prior year quarter

· Net income of $30.1 million ($33.1 million on an adjusted basis) compared to $14.0 million ($23.9 million on an adjusted basis) in the prior year quarter

· Diluted earnings per share of $1.07 ($1.17 on an adjusted basis) compared to prior year diluted EPS of $0.51 ($0.86 on an adjusted basis)

HOUSTON, October 23, 2024 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $30.1 million ($1.07 per diluted share) for the third quarter 2024, compared to $14.0 million ($0.51 per diluted share) for the third quarter 2023. On an adjusted basis, third quarter 2024 net income was $33.1 million ($1.17 per diluted share) compared to $23.9 million ($0.86 per diluted share) in the third quarter 2023. Pretax income before noncontrolling interests for the third quarter 2024 was $42.8 million ($46.8 million on an adjusted basis) compared to $27.1 million ($40.0 million on an adjusted basis) for the third quarter 2023.

Third quarter 2024 results included $4.7 million of pretax net realized and unrealized gains, while third quarter 2023 results included $1.9 million of pretax net realized and unrealized losses, both of which were primarily driven by net unrealized gains and losses, respectively, from fair value changes of equity securities investments in the title segment.

“We are proud of our third quarter results as they reflect continued progress on our journey. Strong topline performance in several lines of business resulted in improved third quarter results when compared to the same quarter last year, even as residential purchase market conditions remain difficult given macro-economic impacts,” commented Fred Eppinger, chief executive officer. “We remain focused on investing in ourselves to better the company and our customers and remain dedicated to prioritizing our pursuit of growth and margin improvement across all lines of business.”

-1- 

Selected Financial Information

Summary results of operations are as follows (dollars in millions, except per share amounts, pretax margin and adjusted pretax margin, and amounts may not add as presented due to rounding):

	Quarter Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Total revenues		667.9			601.7			1,824.5			1,675.2
Pretax income before noncontrolling interests		42.8			27.1			78.9			42.1
Income tax expense		(9.1	)		(9.1	)		(18.0	)		(9.6	)
Net income attributable to noncontrolling interests		(3.6	)		(3.9	)		(10.4	)		(10.9	)
Net income attributable to Stewart		30.1			14.0			50.6			21.6
Non-GAAP adjustments, after taxes*		3.0			9.9			12.3			27.7
Adjusted net income attributable to Stewart*		33.1			23.9			62.8			49.4
Pretax margin		6.4	%		4.5	%		4.3	%		2.5	%
Adjusted pretax margin*		7.1	%		6.6	%		5.3	%		4.7	%
Net income per diluted Stewart share		1.07			0.51			1.80			0.79
Adjusted net income per diluted Stewart share*		1.17			0.86			2.24			1.80

* Adjusted net income, adjusted pretax margin and adjusted net income per diluted share are non-GAAP measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.

Title Segment

Summary results of the title segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):

	Quarter Ended September 30,
	2024			2023			% Change
Operating revenues		553.3			522.1			6	%
Investment income		13.6			13.4			2	%
Net realized and unrealized gains (losses)		4.8			(1.8	)		361	%
Pretax income		45.0			35.4			27	%
Non-GAAP adjustments to pretax income*		(1.6	)		6.6
Adjusted pretax income*		43.4			42.0			3	%
Pretax margin		7.9	%		6.6	%
Adjusted pretax margin*		7.7	%		7.8	%
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for explanation and reconciliation of non-GAAP adjustments.

Title segment operating revenues in the third quarter 2024 increased $31.2 million, or 6 percent, primarily driven by higher revenues from our domestic commercial and agency title operations, while total segment operating expenses increased $28.4 million, or 6 percent, compared to the third quarter 2023. Agency retention expenses in the third quarter 2024 increased $15.0 million, or 7 percent, primarily resulting from $16.8 million (6 percent) higher gross agency revenues compared to the third quarter 2023.

-2- 

Total title segment employee costs and other operating expenses increased by $14.6 million, or 6 percent, in the third quarter 2024 compared to the prior year quarter, primarily due to higher outside search and incentive compensation expenses related to higher commercial revenues. As a percentage of operating revenues, these expenses were 47.4 percent in both third quarters of 2024 and 2023. Title loss expense in the third quarter 2024 decreased $1.0 million, or 4 percent, primarily due to an overall favorable claim experience compared to the prior year quarter. As a percentage of title revenues, title loss expense was 3.8 percent for the third quarter 2024 compared to 4.3 percent in the third quarter 2023.

In addition to the net realized and unrealized losses and gains presented above, non-GAAP adjustments to the title segment’s pretax income for the third quarters 2024 and 2023 included $3.2 million and $4.8 million, respectively, of total acquisition intangible asset amortization and other expenses (refer to Appendix A).

Direct title revenues information is presented below (dollars in millions):

	Quarter Ended September 30,
	2024		2023		% Change (Rounded)
Non-commercial:
Domestic		168.2		167.6		0	%
International		29.0		29.1		0	%
		197.2		196.7		0	%
Commercial:
Domestic		67.4		51.9		30	%
International		6.1		7.8		(22	%)
		73.5		59.7		23	%
Total direct title revenues		270.7		256.4		6	%

Total non-commercial domestic revenues in the third quarter 2024 were comparable to the prior year quarter, primarily due to the higher average fee per file offsetting the slightly lower total non-commercial domestic transactions in the third quarter 2024. Domestic commercial revenues in the third quarter 2024 increased $15.5 million, or 30 percent, due to a higher average transaction size and a 4 percent improvement in commercial transactions closed compared to the third quarter 2023. Third quarter 2024 average domestic commercial fee per file was $17,700, which was 25 percent higher compared to $14,200 from the prior year quarter, while average residential fee per file was $3,000, a 2 percent improvement compared to the prior year quarter.

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Real Estate Solutions Segment

Summary results of the real estate solutions segment are as follows (dollars in millions, except pretax margin and adjusted pretax margin):

	Quarter Ended September 30,
	2024			2023			% Change
Operating revenues		96.3			68.2			41	%
Pretax income		7.4			2.6			181	%
Non-GAAP adjustments to pretax income*		5.5			6.3
Adjusted pretax income*		12.9			8.9			45	%
Pretax margin		7.7	%		3.8	%
Adjusted pretax margin*		13.4	%		13.0	%
* Adjusted pretax income and adjusted pretax margin are non-GAAP financial measures. See Appendix A for an explanation and reconciliation of non-GAAP adjustments.

Segment operating revenues in the third quarter 2024 increased $28.2 million, or 41 percent, compared to the prior year quarter, primarily due to improved revenues from our credit information and valuation services. On a combined basis, segment employee costs and other operating expenses in the third quarter 2024 increased $24.2 million, or 41 percent, in line with the higher operating revenues. Non-GAAP adjustments to pretax income shown in the schedule above were related to acquisition intangible asset amortization expenses.

Corporate and Other Segment

The segment’s results were primarily driven by net expenses attributable to corporate operations, which decreased to $9.5 million in the third quarter 2024, compared to $10.8 million in the third quarter 2023, primarily due to a prior acquisition-related settlement expense in the third quarter 2023.

Expenses

Consolidated employee costs in the third quarter 2024 increased $12.4 million, or 7 percent, compared to the prior year quarter, primarily driven by increased incentive compensation on higher title and real estate solutions revenues. As a percentage of total operating revenues, employee costs improved to 29.8 percent in the third quarter 2024 compared to 30.7 percent in the third quarter 2023.

Consolidated other operating expenses in the third quarter 2024 increased $25.2 million, or 19 percent, primarily driven by higher service expenses and outside search fees related to higher revenues from real estate solutions and commercial title operations, respectively, compared to the third quarter 2023. As a percentage of total operating revenues, total other operating expenses for the third quarter 2024 increased to 24.0 percent compared to 22.1 percent in the prior year quarter, primarily due to increased real estate solutions service expenses.

Other

Net cash provided by operations in the third quarter 2024 was $76.1 million compared to $59.5 million in the third quarter 2023, primarily driven by increased consolidated net income in the third quarter 2024.

-4- 

Third quarter Earnings Call

Stewart will hold a conference call to discuss the third quarter 2024 earnings at 8:30 a.m. Eastern Time on Thursday, October 24, 2024. To participate, dial (800) 343-5172 (USA) or (203) 518-9856 (International) - access code STCQ324. Additionally, participants can listen to the conference call through Stewart’s Investor Relations website at https://investors.stewart.com/news-and-events/events/default.aspx. The conference call replay will be available from 11:00 a.m. Eastern Time on October 24, 2024 until midnight on October 31, 2024 by dialing (800) 839-5634 (USA) or (402) 220-2560 (International).

About Stewart

Stewart (NYSE-STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage and real estate industries, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we are dedicated to becoming the premier title services company and we are committed to doing so by partnering with our customers to create mutual success. Learn more at stewart.com.

Cautionary statement regarding forward-looking statements. Certain statements in this earnings release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements relate to future, not past, events and often address our expected future business and financial performance. These statements often contain words such as “may,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “will,” “foresee” or other similar words. Forward-looking statements by their nature are subject to various risks and uncertainties that could cause our actual results to be materially different than those expressed in the forward-looking statements. These risks and uncertainties include, among other things, the volatility of economic conditions; adverse changes in the level of real estate activity; changes in mortgage interest rates, existing and new home sales, and availability of mortgage financing; our ability to respond to and implement technology changes, including the completion of the implementation of our enterprise systems; the impact of unanticipated title losses or the need to strengthen our policy loss reserves; any effect of title losses on our cash flows and financial condition; the ability to attract and retain highly productive sales associates; the impact of vetting our agency operations for quality and profitability; independent agency remittance rates; changes to the participants in the secondary mortgage market and the rate of refinancing that affects the demand for title insurance products; regulatory non-compliance, fraud or defalcations by our title insurance agencies or employees; our ability to timely and cost-effectively respond to significant industry changes and introduce new products and services; the outcome of pending litigation; our ability to manage risks associated with potential cybersecurity or other privacy or data security breaches; the impact of changes in governmental and insurance regulations, including any future reductions in the pricing of title insurance products and services; our dependence on our operating subsidiaries as a source of cash flow; our ability to access the equity and debt financing markets when and if needed; our ability to grow our international operations; seasonality and weather; and our ability to respond to the actions of our competitors. These risks and uncertainties, as well as others, are discussed in more detail in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and if applicable, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K filed subsequently. All forward-looking statements included in this earnings release are expressly qualified in their entirety by such cautionary statements. We expressly disclaim any obligation to update, amend or clarify any forward-looking statements contained in this earnings release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law.

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STEWART INFORMATION SERVICES CORPORATION

CONDENSED STATEMENTS OF INCOME

(In thousands of dollars, except per share amounts and except where noted)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Revenues:
Title revenues:
Direct operations		270,706			256,377			736,774			722,242
Agency operations		282,549			265,700			764,081			723,476
Real estate solutions		96,346			68,190			271,561			202,169
Total operating revenues		649,601			590,267			1,772,416			1,647,887
Investment income		13,626			13,393			40,833			32,114
Net realized and unrealized gains (losses)		4,714			(1,946	)		11,238			(4,829	)
		667,941			601,714			1,824,487			1,675,172
Expenses:
Amounts retained by agencies		233,980			218,983			634,083			596,498
Employee costs		193,862			181,493			545,987			534,710
Other operating expenses		155,646			130,455			444,890			380,530
Title losses and related claims		21,282			22,251			59,754			59,727
Depreciation and amortization		15,480			16,414			46,062			46,848
Interest		4,899			5,054			14,768			14,777
		625,149			574,650			1,745,544			1,633,090
Income before taxes and noncontrolling interests		42,792			27,064			78,943			42,082
Income tax expense		(9,123	)		(9,134	)		(17,999	)		(9,588	)
Net income		33,669			17,930			60,944			32,494
Less net income attributable to noncontrolling interests		3,573			3,931			10,375			10,870
Net income attributable to Stewart		30,096			13,999			50,569			21,624
Net earnings per diluted share attributable to Stewart		1.07			0.51			1.80			0.79
Diluted average shares outstanding (000)		28,200			27,650			28,069			27,445
Selected financial information:
Net cash provided by operations		76,121			59,533			67,656			43,578
Other comprehensive income (loss)		18,259			(13,295	)		10,911			(7,278	)

Third Quarter Domestic Order Counts:
Opened Orders 2024:	July		August		Sept		Total		Closed Orders 2024:	July		August		Sept		Total
Commercial		1,111		1,273		1,281		3,665	Commercial		1,140		1,318		1,336		3,794
Purchase		17,796		16,403		15,259		49,458	Purchase		12,382		12,217		10,991		35,590
Refinancing		6,017		7,077		7,826		20,920	Refinancing		3,617		4,016		4,133		11,766
Other		3,621		3,129		6,671		13,421	Other		4,304		2,142		1,779		8,225
Total		28,545		27,882		31,037		87,464	Total		21,443		19,693		18,239		59,375

Opened Orders 2023:	July		August		Sept		Total		Closed Orders 2023:	July		August		Sept		Total
Commercial		913		1,208		1,199		3,320	Commercial		1,036		1,320		1,305		3,661
Purchase		17,446		19,674		16,386		53,506	Purchase		13,006		14,200		12,697		39,903
Refinancing		5,077		5,807		5,148		16,032	Refinancing		3,367		3,778		3,252		10,397
Other		2,976		3,161		2,493		8,630	Other		2,891		1,187		2,269		6,347
Total		26,191		29,850		25,226		81,267	Total		20,300		20,485		19,523		60,308

STEWART INFORMATION SERVICES CORPORATION

CONDENSED BALANCE SHEETS

(In thousands of dollars)

	September 30, 2024 (Unaudited)			December 31, 2023
Assets:
Cash and cash equivalents		183,772			233,365
Short-term investments		44,911			39,023
Investments in debt and equity securities, at fair value		688,661			679,936
Receivables – premiums from agencies		40,730			38,676
Receivables – other		120,457			93,811
Allowance for uncollectible amounts		(8,851	)		(7,583	)
Property and equipment, net		90,036			82,335
Operating lease assets, net		105,510			115,879
Title plants		76,028			73,359
Goodwill		1,080,681			1,072,129
Intangible assets, net of amortization		175,166			193,196
Deferred tax assets		3,749			3,776
Other assets		128,720			84,959
		2,729,570			2,702,861
Liabilities:
Notes payable		445,704			445,290
Accounts payable and accrued liabilities		196,670			190,054
Operating lease liabilities		122,788			135,654
Estimated title losses		517,592			528,269
Deferred tax liabilities		32,481			25,045
		1,315,235			1,324,312
Stockholders’ equity:
Common Stock and additional paid-in capital		353,172			338,451
Retained earnings		1,080,879			1,070,841
Accumulated other comprehensive loss		(24,304	)		(35,215	)
Treasury stock		(2,666	)		(2,666	)
Stockholders’ equity attributable to Stewart		1,407,081			1,371,411
Noncontrolling interests		7,254			7,138
Total stockholders’ equity		1,414,335			1,378,549
		2,729,570			2,702,861

Number of shares outstanding (000)	27,714	27,370
Book value per share	50.77	50.11

STEWART INFORMATION SERVICES CORPORATION

SEGMENT INFORMATION

(In thousands of dollars)

Quarter Ended:	September 30, 2024									September 30, 2023
	Title		Real Estate Solutions		Corporate and Other			Total		Title			Real Estate Solutions		Corporate and Other			Total
Revenues:
Operating revenues		553,255		96,346		-			649,601		522,077			68,190		-			590,267
Investment income		13,588		38		-			13,626		13,368			25		-			13,393
Net realized and unrealized gains (losses)		4,757		-		(43	)		4,714		(1,821	)		-		(125	)		(1,946	)
		571,600		96,384		(43	)		667,941		533,624			68,215		(125	)		601,714
Expenses:
Amounts retained by agencies		233,980		-		-			233,980		218,983			-		-			218,983
Employee costs		176,225		14,104		3,533			193,862		165,829			12,361		3,303			181,493
Other operating expenses		85,853		68,634		1,159			155,646		81,625			46,217		2,613			130,455
Title losses and related claims		21,282		-		-			21,282		22,251			-		-			22,251
Depreciation and amortization		8,860		6,264		356			15,480		9,196			6,820		398			16,414
Interest		406		-		4,493			4,899		355			191		4,508			5,054
		526,606		89,002		9,541			625,149		498,239			65,589		10,822			574,650
Income (loss) before taxes		44,994		7,382		(9,584	)		42,792		35,385			2,626		(10,947	)		27,064

Nine Months Ended:	September 30, 2024									September 30, 2023
	Title		Real Estate Solutions		Corporate and Other			Total		Title			Real Estate Solutions		Corporate and Other			Total
Revenues:
Operating revenues		1,500,855		271,561		-			1,772,416		1,445,718			202,169		-			1,647,887
Investment income		40,746		87		-			40,833		32,033			81		-			32,114
Net realized and unrealized gains (losses)		11,387		-		(149	)		11,238		(1,658	)		-		(3,171	)		(4,829	)
		1,552,988		271,648		(149	)		1,824,487		1,476,093			202,250		(3,171	)		1,675,172
Expenses:
Amounts retained by agencies		634,083		-		-			634,083		596,498			-		-			596,498
Employee costs		495,943		39,904		10,140			545,987		485,690			37,333		11,687			534,710
Other operating expenses		247,371		193,703		3,816			444,890		236,752			138,052		5,726			380,530
Title losses and related claims		59,754		-		-			59,754		59,727			-		-			59,727
Depreciation and amortization		26,126		18,803		1,133			46,062		26,182			19,401		1,265			46,848
Interest		1,165		7		13,596			14,768		1,063			191		13,523			14,777
		1,464,442		252,417		28,685			1,745,544		1,405,912			194,977		32,201			1,633,090
Income (loss) before taxes		88,546		19,231		(28,834	)		78,943		70,181			7,273		(35,372	)		42,082

Appendix A

Non-GAAP Adjustments

Management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) to analyze its performance. These include: (1) adjusted revenues, which are reported revenues adjusted for net realized and unrealized gains and losses and (2) adjusted pretax income and adjusted net income, which are reported pretax income and reported net income after earnings from noncontrolling interests, respectively, adjusted for net realized and unrealized gains and losses, acquired intangible asset amortization, office closure costs, executive severance expenses, and nonrecurring expenses. Adjusted diluted earnings per share (adjusted diluted EPS) is calculated using adjusted net income divided by the diluted average weighted outstanding shares. Adjusted pretax margin is calculated using adjusted pretax income divided by adjusted total revenues. Management views these measures as important performance measures of core profitability for its operations and as key components of its internal financial reporting. Management believes investors benefit from having access to the same financial measures that management uses.

Below are reconciliations of the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the quarter and nine months ended September 30, 2024 and 2023 (dollars in millions, except shares, per share amounts and pretax margins, and amounts may not add as presented due to rounding).

	Quarter Ended September 30,									Nine Months Ended September 30,
	2024			2023			% Chg			2024			2023			% Chg
Total revenues		667.9			601.7			11	%		1,824.5			1,675.2			9	%
Non-GAAP revenue adjustments:
Net realized and unrealized (gains) losses		(4.7	)		1.9						(11.2	)		4.8
Adjusted total revenues		663.2			603.7			10	%		1,813.2			1,680.0			8	%
Pretax income		42.8			27.1			58	%		78.9			42.1			88	%
Non-GAAP pretax adjustments:
Net realized and unrealized (gains) losses		(4.7	)		1.9						(11.2	)		4.8
Acquired intangible asset amortization		8.3			9.6						25.1			27.3
Office closure costs		0.3			1.4						2.0			1.4
Executive severance expenses		0.1			-						0.7			1.7
State sales tax assessment expense		-			-						-			1.2
Adjusted pretax income		46.8			40.0			17	%		95.5			78.6			22	%
GAAP pretax margin		6.4	%		4.5	%					4.3	%		2.5	%
Adjusted pretax margin		7.1	%		6.6	%					5.3	%		4.7	%
Net income attributable to Stewart		30.1			14.0			115	%		50.6			21.6			134	%
Non-GAAP pretax adjustments:
Net realized and unrealized losses (gains)		(4.7	)		1.9						(11.2	)		4.8
Acquired intangible asset amortization		8.3			9.6						25.1			27.6
Office closure costs		0.3			1.4						2.0			1.4
Executive severance expenses		0.1			-						0.7			1.7
State sales tax assessment expense		-			-						-			1.2
Net tax effects of non-GAAP adjustments		(1.0	)		(3.1	)					(4.3	)		(8.8	)
Non-GAAP adjustments, after taxes		3.0			9.9						12.3			27.7
Adjusted net income attributable to Stewart		33.1			23.9			39	%		62.8			49.4			27	%
Diluted average shares outstanding (000)		28,200			27,650						28,069			27,445
GAAP net income per share		1.07			0.51						1.80			0.79
Adjusted net income per share		1.17			0.86						2.24			1.80

	Quarter Ended September 30,									Nine Months Ended September 30,
	2024			2023			% Chg			2024			2023			% Chg
Title Segment:
Total revenues		571.6			533.6			7	%		1,553.0			1,476.1			5	%
Net realized and unrealized (gains) losses		(4.8	)		1.8						(11.4	)		1.7
Adjusted total revenues		566.8			535.4			6	%		1,541.6			1,477.8			4	%
Pretax income		45.0			35.4			27	%		88.5			70.2			26	%
Non-GAAP revenue adjustments:
Net realized and unrealized (gains) losses		(4.8	)		1.8						(11.4	)		1.7
Acquired intangible asset amortization		2.8			3.4						8.5			9.4
Office closure costs		0.3			1.4						2.0			1.4
Severance expenses		0.1			-						0.7			0.4
Adjusted pretax income		43.4			42.0			3	%		88.3			83.1			6	%
GAAP pretax margin		7.9	%		6.6	%					5.7	%		4.8	%
Adjusted pretax margin		7.7	%		7.8	%					5.7	%		5.6	%
Real Estate Solutions Segment:
Total revenues		96.4			68.2			41	%		271.6			202.3			34	%
Pretax income		7.4			2.6			181	%		19.2			7.3			164	%
Non-GAAP revenue adjustments:
Acquired intangible asset amortization		5.5			6.3						16.6			17.9
State sales tax assessment expense		-			-						-			1.2
Adjusted pretax income		12.9			8.9			45	%		35.9			26.4			36	%
GAAP pretax margin		7.7	%		3.8	%					7.1	%		3.6	%
Adjusted pretax margin		13.4	%		13.0	%					13.2	%		13.0	%