Dividend restrictions	12 Months Ended
Dec. 31, 2012
Dividend restrictions	NOTE 3 Dividend restrictions. Substantially all of the consolidated retained earnings at each year end were represented by Guaranty, which owns directly or indirectly all of the subsidiaries included in the consolidation. Guaranty cannot pay a dividend to its parent in excess of certain limits without the approval of the Texas Insurance Commissioner. The maximum dividend that can be paid after such approval in 2013 is $85.8 million. Guaranty did not pay a dividend in 2012, 2011 or 2010. Dividends from Guaranty are also voluntarily restricted primarily to maintain statutory surplus and liquidity at competitive levels and to demonstrate significant claims payment ability. The ability of a title insurer to pay claims can significantly affect the decision of lenders and other customers when buying a policy from a particular insurer. Surplus as regards policyholders for Guaranty was $429.2 million and $371.8 million at December 31, 2012 and 2011, respectively. Statutory net income for Guaranty was $10.5 million in 2012 and net losses were $4.2 million and $2.0 million in 2011 and 2010, respectively.

Dividend restrictions

12 Months Ended

Dec. 31, 2012

NOTE 3

Dividend restrictions. Substantially all of the consolidated retained earnings at each year end were represented by Guaranty, which owns directly or indirectly all of the subsidiaries included in the consolidation.

Guaranty cannot pay a dividend to its parent in excess of certain limits without the approval of the Texas Insurance Commissioner. The maximum dividend that can be paid after such approval in 2013 is $85.8 million. Guaranty did not pay a dividend in 2012, 2011 or 2010.

Dividends from Guaranty are also voluntarily restricted primarily to maintain statutory surplus and liquidity at competitive levels and to demonstrate significant claims payment ability. The ability of a title insurer to pay claims can significantly affect the decision of lenders and other customers when buying a policy from a particular insurer.

Surplus as regards policyholders for Guaranty was $429.2 million and $371.8 million at December 31, 2012 and 2011, respectively. Statutory net income for Guaranty was $10.5 million in 2012 and net losses were $4.2 million and $2.0 million in 2011 and 2010, respectively.