8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): August 6, 2008

STEWART INFORMATION SERVICES CORPORATION

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE (STATE OR OTHER JURISDICTION) 001-02658 (COMMISSION FILE NO.) 74-1677330 (I.R.S. EMPLOYER IDENTIFICATION NO.)

1980 Post Oak Blvd, Houston, Texas 77056

(Address Of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, Including Area Code: (713) 625-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CRF 240.14a-12)

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 30, 2008, Stewart Information Services Corporation issued a press release regarding financial results for the three and six months ended June 30, 2008. On August 6, 2008, an updated press release was issued by Stewart Information Services Corporation regarding financial results for the three and six months ended June 30, 2008, and is attached hereto as Exhibit 99.1, and the release is incorporated herein by reference. The update to second quarter earnings is related to the discovery of additional information subsequent to the Company’s original earnings release on July 30, 2008 and prior to filing its quarterly report on Form 10-Q with the Securities and Exchange Commission. This additional information connected several claims to the same series of fraudulent transactions and resulted in the classification of the claims as a single large title claim.  The impact of this title policy claim resulted in a pretax charge of $3.0 million ($2.0 million after taxes, or $0.11 per share) to the three and six months ended June 30, 2008.This information is not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) EXHIBITS

Exhibit No.             Description

99.1         Updated press release of Stewart Information Services Corporation dated August 6, 2008, reporting updated financial results for the three months and six months ended June 30, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

STEWART INFORMATION SERVICES CORPORATION

(Registrant)

By:    /S/ Max Crisp

(Max Crisp, Executive Vice President,

Secretary, Treasurer, Director and Principal

Financial Officer)

Date: August 6, 2008

EX-99.1

NEWS

from:
STEWART INFORMATION SERVICES CORPORATION
P.O. Box 2029, Houston, Texas 77252-2029
www.stewart.com
Contact:	Ted C. Jones
	Director - Investor Relations
	(713) 625-8014

FOR RELEASE AT 6AM CDT

Stewart Reports Updated Operating Results for the Second Quarter 2008

HOUSTON, August 6, 2008 - Stewart Information Services Corporation (NYSE-STC) today reported updated results of operations for the second quarter and six months ended June 30, 2008. The update to the second quarter’s and six months’ earnings is related to the discovery of additional information subsequent to the Company’s original earnings release on July 30, 2008 and prior to filing its quarterly report on Form 10-Q with the Securities and Exchange Commission. This additional information connected several independent claims to the same series of fraudulent transactions which resulted in the reclassification of the claims as a single large title claim. The impact of this title policy claim resulted in a pretax charge of $3.0 million ($2.0 million after taxes, or $0.11 per share) to the second quarter and six months ended June 30, 2008. The information presented herein has been updated, as necessary, to reflect the impact of this matter to the second quarter and six months ended June 30, 2008. There are no other updates to previously reported amounts. (Dollar amounts in the table below are in millions, except for per share figures.)

	Second Quarter
	2008(a)			2007
Total revenues	$	428.5		$	573.4
Pretax (loss) earnings before minority interests		(44.2	)		19.2
Net (loss) earnings		(28.6	)		10.1
Net (loss) earnings per iluted share		(1.58	)		0.55

	Six Months
	2008(a)			2007(b)
Total revenues	$	822.7		$	1,105.1
Pretax (loss) earnings before minority interests		(85.0	)		14.6
Net (loss) earnings		(53.9	)		5.4
Net (loss) earnings per diluted share		(2.98	)		0.29

(a)

The second quarter of 2008 includes pretax charges totaling $27.2 million ($17.7 million after taxes, or $0.98 per share) relating to a reserve adjustment of $10.0 million for prior policy years, $11.2 million relating to large claims and two agency defalcations, and a software impairment charge of $6.0 million. The first three months of 2008 includes an additional charge of $4.6 million ($3.0 million after taxes, or $0.17 per share) relating to an agency defalcation.

(b)

The first six months of 2007 includes a $3.2 million gain ($2.1 million after taxes, or $0.11 per diluted share) from the sale of two subsidiaries and a charge of $7.4 million ($4.8 million after taxes, or $0.26 per diluted share) relating to large claims.

Financial Results

The continuing decline in our orders resulting from the decrease in new and existing home sales, home prices, construction and lending in the second quarter of 2008, coupled with worsening policy claims payment experience and a software impairment charge, resulted in a pretax (and before minority interests) loss of $44.2 million compared with earnings of $19.2 million in the same quarter last year. The software impairment charge of $6.0 million relates to software developed, and now abandoned, in our REI segment for one of its subsidiaries.

Revenues in the second quarter of 2008 fell to $428.5 million, a decline of 25.3 percent from the $573.4 million in the same period last year. This reduction in revenues reflects the second quarter 2008 decline in our order volume resulting from decreases in existing home sales (down 16.7 percent), new home sales (down 33.2 percent) and existing home prices (down 15.8 percent) compared with the second quarter of 2007. Our international operations remained profitable, offsetting, in part, our loss in the second quarter of 2008 for U.S. operations.

Total revenues for the first half of 2008 were $822.7 million, down 25.6 percent from the same period in 2007. Overall, the Company reported a loss of $85.0 million before taxes and minority interests in the first half of 2008 compared with a profit of $14.6 million in the same period in 2007.

“We are responding strategically to this downturn by implementing cost reductions throughout the Company. We remain committed to our long-term strategies and restructuring efforts even in this extremely difficult real estate environment,” said Malcolm S. Morris, co-chief executive officer and chairman. “We are progressing in our shared-services initiatives and have contracted several national relationships for savings in procurement. These initiatives and relationships, which range from accounting and information technology to procurement and human resources, have significant potential for process improvements and cost reductions. We are also consolidating many of our separate corporate entities to better serve our customers, streamline our administrative functions and reduce fixed costs.

“We are experiencing higher than expected payments of policy claims, which resulted in our taking a $10.0 million charge this quarter relating to prior policy years,” added Morris. “However, we are continuing to make progress in reducing our risk exposure through the review and cancellation of higher-risk title agencies and by auditing potential title agencies prior to adding them to our agency network.”

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“We continue to respond to declining market conditions by aggressively reducing variable and fixed expenses,” said Stewart Morris, Jr., co-chief executive officer and president. “In the second quarter of 2008, our employee count was reduced by 350, which brings our year-to-date reduction to 810, or 9.6 percent. Our total reduction in employee count is 2,400, or 24.6 percent, since December 31, 2006.We have also closed 68 unprofitable branch and office locations since the beginning of 2008.

“In addition, we are responding to the consumer in these tough markets," said Morris. "We announced a simplification of our rate structure in California to better serve our customers. Also in this quarter, we formed a new multi-state foreclosure trustee company that will allow us to offer nationwide default services. We remain on track for site conversions of legacy production systems to our new, but proven, web-based production systems this year. A recent fire in an office where we have implemented our paperless technology reinforced our commitment to long-term investment in our web-based production system and SureClose®, our transaction management technology. Within hours of the fire, the office was up and running remotely via the internet and closings continued with no loss of service or files,” said Morris.

Stewart Information Services Corporation is a customer-driven, technology-enabled, strategically competitive, real estate information, title insurance and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries throughout the United States and in international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, document preparation, background checks and expertise in tax-deferred exchanges. More information can be found at www.stewart.com.

This press release may contain forward-looking statements, which include all statements other than statements of historical facts. Forward-looking statements are not guarantees of performance and no assurance can be given that Stewart's expectations will be achieved. In particular, historical order counts do not necessarily indicate future revenues since Stewart cannot predict the number of orders that will result in closings.

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STEWART INFORMATION SERVICES CORPORATION

STATEMENTS OF EARNINGS

(In thousands of dollars, except per share amounts)

	Three months ended						Six months ended
	June 30						June 30
	2008			2007			2008			2007
Revenues
Title insurance:
Direct operations		200,688			270,428			381,275			500,042
Agency operations		213,513			276,434			404,566			548,688
Real estate information		11,302			16,497			26,018			33,030
Investment income		7,456			9,168			15,534			18,219
Investment and other (losses) gains - net		(4,412	)		902			(4,709	)		5,124
		428,547			573,429			822,684			1,105,103
Expenses
Amounts retained by agencies		174,562			222,752			330,124			445,142
Employee costs		146,076			179,096			298,039			355,888
Other operating expenses		86,412			105,241			173,248			198,884
Title losses and related claims		49,595			35,117			79,316			66,976
Depreciation and amortization		8,950			10,149			18,041			20,034
Impairment of other assets		6,011			-			6,011			-
Interest		1,121			1,874			2,936			3,542
		472,727			554,229			907,715			1,090,466
(Loss)earnings before taxes and minority interests		(44,180	)		19,200			(85,031	)		14,637
Income tax (benefit) expense		(17,526	)		5,541			(34,288	)		2,921
Minority interests		1,934			3,535			3,137			6,354
Net (loss) earnings		(28,588	)		10,124			(53,880	)		5,362
(Loss) earnings per diluted share		(1.58	)		0.55			(2.98	)		0.29
Average number of diluted shares (000)		18,092			18,351			18,069			18,340
Segment information:
Title revenues		417,245			556,932			795,787			1,068,873
Title pretax (loss) earnings before minority interests		(35,763	)		19,862			(77,308	)		11,807
REI revenues		11,302			16,497			26,897			36,230
REI pretax (loss) earnings before minority interests		(8,417	)		(662	)		(7,723	)		2,830
Selected financial information:
Cash (used) provided by operations		(15,862	)		31,922			(47,309	)		16,806
Title loss payments - net of recoveries		38,981			22,424			69,463			47,877
Changes in other comprehensive earnings - net of taxes		(7,654	)		(286	)		(7,496	)		547
Number of title orders opened (000):
April		48.4			59.0
May		43.1			60.7
June		38.9			58.1
Quarter		130.4			177.8
Number of title orders closed (000):
Quarter		93.5			125.1

	June 30 2008		Dec 31 2007
Stockholders’ equity		694,959		754,059
Number of shares outstanding (000)		18,146		18,031
Book value per share		38.30		41.82

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STEWART INFORMATION SERVICES CORPORATION

BALANCE SHEETS (condensed)

(In thousands of dollars)

	June 30 2008			Dec 31 2007
Assets
Cash and cash equivalents		102,900			109,239
Short-term investments		57,212			79,780
Investments - statutory reserve funds		503,152			518,586
Investments - other		83,721			98,511
Receivables - premiums from agencies		37,968			48,040
Receivables - other		105,373			93,335
Allowance for uncollectible amounts		(12,352	)		(11,613	)
Property and equipment		86,411			96,457
Title plants		79,027			78,245
Goodwill		209,879			208,824
Intangible assets		12,986			17,157
Other assets		103,986			105,413
		1,370,263			1,441,974
Liabilities
Notes payable		116,799			108,714
Accounts payable and accrued liabilities		93,501			122,167
Estimated title losses		450,229			441,324
Minority interests		14,775			15,710
		675,304			687,915
Contingent liabilities and commitments
Stockholders' equity
Common and Class B Common Stock and additional paid-in capital		143,472			141,196
Retained earnings		543,238			597,118
Accumulated other comprehensive earnings		12,346			19,842
Treasury stock		(4,097	)		(4,097	)
Total stockholders' equity		694,959			754,059
		1,370,263			1,441,974

August 6, 2008

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