Statutory Surplus and Dividend restrictions	12 Months Ended
Dec. 31, 2013
Statutory Surplus and Dividend restrictions	NOTE 3 Statutory Surplus and 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 2014 is $94.7 million. Guaranty did not pay a dividend in 2013, 2012 or 2011. 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 (sum of statutory capital plus surplus) for Guaranty was $473.7 million and $429.2 million at December 31, 2013 and 2012, respectively. Statutory net income for Guaranty was $43.0 million and $10.5 million in 2013 and 2012, respectively, and net loss was $4.2 million in 2011. The amount of statutory capital and surplus necessary to satisfy regulatory requirements for Guaranty was $2.8 million (and in the aggregate less than $15.0 million for all of the Company’s underwriter entities) at December 31, 2013, and each of its underwriter entities was in compliance with such requirements as of December 31, 2013. With respect to Guaranty, the State of Texas has granted prescribed practices that permit the reduction of statutory premium reserves otherwise required to be recorded. Guaranty recorded surplus as regards policyholders that was $27.2 million and $39.7 million less than surplus as regards policyholders in accordance with NAIC SAP at December 31, 2013 and 2012, respectively.

NOTE 3

Statutory Surplus and 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 2014 is $94.7 million. Guaranty did not pay a dividend in 2013, 2012 or 2011.

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 (sum of statutory capital plus surplus) for Guaranty was $473.7 million and $429.2 million at December 31, 2013 and 2012, respectively. Statutory net income for Guaranty was $43.0 million and $10.5 million in 2013 and 2012, respectively, and net loss was $4.2 million in 2011.

The amount of statutory capital and surplus necessary to satisfy regulatory requirements for Guaranty was $2.8 million (and in the aggregate less than $15.0 million for all of the Company’s underwriter entities) at December 31, 2013, and each of its underwriter entities was in compliance with such requirements as of December 31, 2013.

With respect to Guaranty, the State of Texas has granted prescribed practices that permit the reduction of statutory premium reserves otherwise required to be recorded. Guaranty recorded surplus as regards policyholders that was $27.2 million and $39.7 million less than surplus as regards policyholders in accordance with NAIC SAP at December 31, 2013 and 2012, respectively.