Parent Company Financial Information

12 Months Ended

Dec. 31, 2011

Parent Company Financial Information [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

SCHEDULE I

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF OPERATIONS AND RETAINED EARNINGS

	For the Years Ended December 31,
	2011			2010			2009
	($000 omitted)
Revenues
Investment income, including $0, $22 and $169 from affiliates		74			86			190
Other (losses) gains		(3,770	)		3,109			370
Other income		235			68			83
		(3,461	)		3,263			643
Expenses
Employee costs		2,168			1,388			2,774
Other operating expenses, including $177, $144 and $144 to affiliates		451			5,796			3,245
Depreciation and amortization		893			862			325
Interest		4,639			4,658			1,273
		8,151			12,704			7,617
Loss before tax benefit and loss from subsidiaries		(11,612	)		(9,441	)		(6,974	)
Income tax expense (benefit)		79			(277	)		(192	)
(Earnings) loss from subsidiaries		(14,039	)		3,418			44,193
Net income (loss)		2,348			(12,582	)		(50,975	)
Retained earnings at beginning of year		282,666			296,116			347,952
Cash dividends on Common Stock ($0.05 per share in 2011, 2010 and 2009)		(917	)		(868	)		(861	)
Retained earnings at end of year		284,097			282,666			296,116

See accompanying note to financial statement information.

BALANCE SHEETS

	As of December 31,
	2011			2010
	($000 omitted)
Assets
Cash and cash equivalents		4,170			7,591
Short-term investments		—			—
		4,170			7,591
Receivables:
Notes		15			82
Other, including $191 and $220 from affiliates		476			260
Allowance for uncollectible amounts		(15	)		(77	)
		476			265
Property and equipment, at cost:
Land		—			—
Buildings		2,287			2,287
Furniture and equipment		3,209			3,234
Accumulated depreciation		(2,429	)		(2,094	)
		3,067			3,427
Title plant, at cost		48			48
Investments in subsidiaries, on an equity method basis		504,897			488,053
Goodwill		8,470			8,470
Other assets		17,136			19,546
		538,264			527,400
Liabilities
Convertible senior notes		64,513			64,338
Accounts payable and accrued liabilities, including $104 and $14 from affiliates		23,537			27,852
		88,050			92,190
Contingent liabilities and commitments
Stockholders’ equity
Common Stock — $1 par, authorized 50,000,000; issued 18,605,993 and 17,801,273; outstanding 18,253,832 and 17,325,046		18,606			17,801
Class B Common Stock — $1 par, authorized 1,500,000; issued and outstanding 1,050,012		1,050			1,050
Additional paid-in capital		132,446			124,413
Retained earnings (1)		284,097			282,666
Accumulated other comprehensive earnings:
Foreign currency translation adjustments		9,250			11,093
Unrealized investment gains		7,431			2,517
Treasury stock — 352,161 and 476,227 common shares, at cost		(2,666	)		(4,330	)
Total stockholders’ equity		450,214			435,210
		538,264			527,400

⁽¹⁾  Includes undistributed earnings of subsidiaries of $344,376 in 2011 and $331,254 in 2010.

See accompanying note to financial statement information.

STATEMENTS OF CASH FLOWS

	For the Years Ended December 31,
	2011			2010			2009
	($000 omitted)
Reconciliation of net earnings (loss) to cash (used) provided by operating activities:
Net earnings (loss)		2,348			(12,582	)		(50,975	)
Add (deduct):
Depreciation and amortization		893			862			325
Provision for bad debt		(2	)		(96	)		118
Other losses (gains)		3,770			(3,109	)		(370	)
(Increase) decrease in receivables — net		(218	)		1,173			740
Increase in other assets — net		(1,171	)		(130	)		(498	)
Increase (decrease) in payables and accrued liabilities — net		3,941			(1,007	)		6,364
(Earnings) loss from subsidiaries		(14,039	)		3,418			44,193
Other — net		3,213			2,735			3,125
Cash (used) provided by operating activities		(1,265	)		(8,736	)		3,022
Investing activities:
Cash paid for loan guarantee obligation		(4,318	)		—			—
Proceeds from the sale of (purchases of) property and equipment — net		3,070			(3,016	)		(2,631	)
Collections on notes receivables		9			12,842			13,691
Proceeds from the sale of land and buildings		—			6,323			—
Increases in notes receivables		—			—			(21,522	)
Proceeds from investments available-for-sale matured and sold		—			—			11,910
Purchases of investments available-for-sale		—			—			(9	)
Contributions to subsidiaries		—			—			(67,755	)
Cash (used) provided by investing activities		(1,239	)		16,149			(66,316	)
Financing activities:
Dividends paid		(917	)		(868	)		(861	)
Proceeds from issuance of convertible senior notes		—			—			65,000
Payments for debt issuance costs related to convertible senior notes		—			—			(3,299	)
Proceeds from exercise of stock options		—			—			57
Cash (used) provided by financing activities		(917	)		(868	)		60,897
(Decrease) increase in cash and cash equivalents		(3,421	)		6,545			(2,397	)
Cash and cash equivalents at beginning of year		7,591			1,046			3,443
Cash and cash equivalents at end of year		4,170			7,591			1,046
Supplemental information:
Income taxes paid		82			—			—
Interest paid		3,900			3,900			—

See accompanying note to financial statement information.

NOTE TO FINANCIAL STATEMENT INFORMATION

The Parent Company operates as a holding company, transacting substantially all of its business through its subsidiaries. Its consolidated financial statements are included in Part II, Item 8 of Form 10-K. The Parent Company financial statements should be read in conjunction with the aforementioned consolidated financial statements and notes thereto and financial statement schedules.

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

Guaranty did not declare a dividend in 2011, 2010 or 2009.