SCHEDULE I

STEWART INFORMATION SERVICES CORPORATION

(Parent Company)

STATEMENTS OF OPERATIONS AND RETAINED EARNINGS


	For the Years Ended December 31,
	2013			2012			2011
	($000 omitted)
Revenues
Investment income		—			579			74
Other losses		(3,164	)		(3,358	)		(3,770	)
Other income		263			380			235

		(2,901	)		(2,399	)		(3,461	)
Expenses
Employee costs		(91	)		5,192			2,168
Other operating expenses, including $276, $305 and $177 to affiliates		1,329			1,674			451
Depreciation and amortization		527			802			893
Interest		2,494			4,615			4,639

		4,259			12,283			8,151
Loss before taxes and earnings from subsidiaries		(7,160	)		(14,682	)		(11,612	)
Income tax expense (benefit)		24			34			79
Add earnings from subsidiaries		70,210			123,898			14,039

Net earnings		63,026			109,182			2,348
Retained earnings at beginning of year		391,447			284,097			282,666
Cash dividends on Common Stock ($0.10 per share in 2013 and 2012 and $0.05 per share in 2011)		(2,159	)		(1,832	)		(917	)

Retained earnings at end of year		452,314			391,447			284,097

See accompanying note 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,
	2013			2012
	($000 omitted)
Assets
Cash and cash equivalents		4,196			10,725
Receivables:
Notes		12			14
Other, including $0 and $3 from affiliates		138			43
Allowance for uncollectible amounts		(12	)		(14	)

		138			43
Property and equipment, at cost:
Furniture and equipment		2,893			3,109
Accumulated depreciation		(2,301	)		(2,347	)

		592			762
Title plant, at cost		48			48
Investments in subsidiaries, on an equity method basis		677,485			626,994
Goodwill		8,470			8,470
Other assets		16,153			16,797

		707,082			663,839


Liabilities
Convertible senior notes		27,119			64,687
Accounts payable and accrued liabilities, including $2 and $3 from affiliates		24,665			30,346

		51,784			95,033
Contingent liabilities and commitments
Stockholders’ equity
Common Stock – $1 par, authorized 50,000,000; issued 21,803,179 and 18,705,914; outstanding 21,451,018 and 18,353,753		21,803			18,706
Class B Common Stock– $1 par, authorized 1,500,000; issued and outstanding 1,050,012		1,050			1,050
Additional paid-in capital		171,915			133,685
Retained earnings⁽¹⁾		452,314			391,447
Accumulated other comprehensive earnings:
Foreign currency translation adjustments		5,350			12,169
Unrealized investment gains		5,532			14,415
Treasury stock – 352,161 and 352,161 common shares, at cost		(2,666	)		(2,666	)

Total stockholders’ equity		655,298			568,806

		707,082			663,839

⁽¹⁾	Includes undistributed earnings of subsidiaries of $534,494 in 2013 and $466,442 in 2012.

See accompanying note 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,
	2013			2012			2011
	($000 omitted)
Reconciliation of net earnings to cash used by operating activities:
Net earnings		63,026			109,182			2,348
Add (deduct):
Depreciation and amortization		527			802			893
Provision for bad debt		(1	)		(1	)		(2	)
Other losses		3,164			3,358			3,770
(Increase) decrease in receivables – net		(95	)		433			(218	)
Decrease (increase) in other assets – net		2,413			(229	)		(1,171	)
Increase in payables and accrued liabilities – net		3,335			16,747			3,941
Earnings from subsidiaries		(70,210	)		(123,898	)		(14,039	)
Other – net		(3,944	)		1,899			3,213

Cash (used) provided by operating activities		(1,785	)		8,293			(1,265	)
Investing activities:
Cash paid for loan guarantee obligation		—			—			(4,318	)
Proceeds from the sale of (purchases of) property and equipment – net		5			1,593			3,070
Collections on notes receivables		1			1			9
Contributions to subsidiaries		—			(1,500	)		—

Cash provided (used) by investing activities		6			94			(1,239	)
Financing activities:
Dividends paid		(2,159	)		(1,832	)		(917	)
Purchase of remaining interest of consolidated subsidiary		(1,442	)		—			—
Settlement of convertible debt		(1,149	)		—			—

Cash used by financing activities		(4,750	)		(1,832	)		(917	)

(Decrease) increase in cash and cash equivalents		(6,529	)		6,555			(3,421	)
Cash and cash equivalents at beginning of year		10,725			4,170			7,591

Cash and cash equivalents at end of year		4,196			10,725			4,170

Supplemental information:
Income taxes paid		773			149			82
Interest paid		4			—			3,900