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): July 28, 2005

STEWART INFORMATION SERVICES CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE	001-02658	74-1677330
(STATE OR OTHER JURISDICTION)	(COMMISSION FILE NO.)	(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.

          A press release issued by Stewart Information Services Corporation on July 28, 2005 regarding financial results for the three and six months ended June 30, 2005 is attached hereto as Exhibit 99.1, and the first, second and third paragraphs thereof and the financial tables therein are incorporated herein by reference.  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

         (c)  EXHIBITS

Exhibit No.	Description
99.1	Press release of Stewart Information Services Corporation dated July 28, 2005, reporting financial results for the three and six months ended June 30, 2005

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 and Accounting Officer)
Date: July 28, 2005

EX-99.1

Exhibit 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 Earnings for Second Quarter

HOUSTON, July 28, 2005 -- Stewart Information Services Corporation (NYSE: STC) today reported results for the quarter ended June 30, 2005.  Revenues for the three-month period ended June 30, 2005 were $651 million, the highest in the company’s history, and an increase of 15 percent over the $565 million reported in the same period last year.  Net earnings were $37.2 million, or $2.04 per diluted share, for the three months ended June 30, 2005, versus net earnings of $30.0 million, or $1.65 per diluted share, for the second quarter of 2004.

Total revenues for the first half of 2005 were $1.2 billion, up 13 percent from the same period a year ago. Earnings for the first six months totaled $47.9 million, or $2.63 per diluted share, versus $41.1 million, or $2.26 per diluted share, for the first six months of 2004.

Book value per share increased 7 percent to $41.06 at June 30, 2005 from December 31, 2004.  The increase was attributable to the earnings for the first six months of 2005.

Order counts for the quarter and the month ended June 30, 2005 were up 9 percent and 22 percent, respectively, from the same periods a year ago, adjusted for the number of working days. 

The increase in revenues and transactions handled in the second quarter of 2005 over the same period in 2004 resulted primarily from a lower interest rate environment. The company’s pretax profit margin percentage also increased.  Acquisitions made by the company since the second quarter of 2004 contributed to the higher profit margin. Employee costs and other expenses increased at rates less than the increase in revenues, also improving the margin. While technology costs could have been maintained at previous levels, the company believes its on-going investment in  technology provides potential for growth in its future profits, productivity and market share.

 “Low interest rates, a robust economy and strong demographic demand all contributed to setting record housing sales and commercial property transactions,” said Malcolm S. Morris, co-chief executive officer and chairman of the board.  “Our commercial title operations continue posting impressive growing revenues and profitability.

“The State of Texas has enacted legislation, effective September 1, 2005, that will reduce the statutory premium reserve requirements,” added Morris.  “The change does not directly impact amounts reported for our earnings or loss reserves under U.S. generally accepted accounting principles.  However, based on 2004 amounts, the change would have freed up $32 million in low-risk and low-yield statutory reserve investments, making this portion of our future cash flow available for other uses.”   Complete details and a history of House Bill 885 can be viewed at www.capitol.state.tx.us, selecting 79^th Regular Session-2005, then entering HB885.

“We continued our systematic acquisition process in strategically located markets and acquired four title agencies in the past quarter,” said Stewart Morris, Jr., co-chief executive officer and president.  “In the second quarter of 2005 we completed or announced title agency acquisitions in Colorado, South Dakota, Wisconsin and California.”

In addition, Stewart continued international expansion with the establishment of Stewart Title Eastern Caribbean in Anguilla, British West Indies.  This office joins a growing network of Latin American and Caribbean operations, providing both international and local purchasers and lenders with title and related transaction services.  English, Spanish, French and Dutch languages are predominant in the eastern Caribbean.

“The rapid growth of SureClose^®, our paperless working platform, recently generated the one-millionth transaction, making it one of  the most utilized transaction management systems in the industry,” added Morris.  “This system not only provides truly magnificent 24/7 service to our customers but also increases our own productivity and effectiveness.  This is an investment that is just now starting to realize its potential in our operations as customers and associates begin using SureClose in their daily operations.

“Stewart’s real estate information data portal, www.propertyinfo.com, serves our internal and external customers by providing real estate information access, integrated applications and online product distribution,” added Morris.  PropertyInfo.com brings together the inclusive information and integrated tools that real estate and title professionals need on a daily basis: public records, aerial imagery, maps, search and extraction tools, editable reports and documents, and production applications that save title and real estate agents and their customers, time and resources. Users have access to parcel-level and spatial data and images from a single web site.  The portal contains both owned and third-party data and integrated processing applications, allowing greater efficiencies that can result in higher production volume without added overhead. 

          Stewart Information Services Corporation is a technology driven, strategically competitive, real estate information and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries through more than 8,000 policy-issuing offices and agencies in the United States and international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, 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 because Stewart cannot predict the number of orders that will result in closings.

###

Stewart Information Services Corporation

	Three months ended June 30
	2005		2004
Revenues	$	651,079,000	$	565,456,000
Net earnings	$	37,227,000	$	29,961,000
Average shares – diluted		18,227,000		18,192,000
Earnings per share:
Basic	$	2.05	$	1.66
Diluted	$	2.04	$	1.65

	Six months ended June 30
	2005		2004
Revenues	$	1,162,041,000	$	1,030,348,000
Net earnings	$	47,893,000	$	41,101,000
Average shares – diluted		18,226,000		18,187,000
Earnings per share:
Basic	$	2.64	$	2.27
Diluted	$	2.63	$	2.26

STEWART INFORMATION SERVICES CORPORATION
STATEMENTS OF EARNINGS
(In thousands of dollars, except per share amounts)

	Three months ended June 30					Six months ended June 30
	2005		2004			2005			2004
Revenues
Title insurance:
Direct operations		278,941		241,578			491,815			424,112
Agency operations		341,500		300,595			615,185			558,482
Real estate information services		20,688		17,711			38,315			35,326
Investment income		7,149		5,170			13,457			10,322
Investment and other gains - net		2,801		402			3,269			2,106
		651,079		565,456			1,162,041			1,030,348
Expenses
Amounts retained by agencies		279,637		245,403			503,224			455,455
Employee costs		173,873		152,453			329,490			286,803
Other operating expenses		91,967		81,747			172,964			155,728
Title losses and related claims		30,213		25,807			52,344			45,087
Depreciation and amortization		8,244		8,282			16,050			15,258
Interest		778		272			1,395			490
Minority interests		5,597		3,860			8,520			6,008
		590,309		517,824			1,083,987			964,829
Earnings before taxes		60,770		47,632			78,054			65,519
Income taxes		23,543		17,671			30,161			24,418
Net earnings		37,227		29,961			47,893			41,101
Average number of diluted shares (000)		18,227		18,192			18,226			18,187
Earnings per share - diluted		2.04		1.65			2.63			2.26
Segment information:
Title revenues		630,391		547,745			1,123,726			995,022
Title pretax earnings		57,861		46,417			74,073			63,070
REI revenues		20,688		17,711			38,315			35,326
REI pretax earnings		2,909		1,215			3,981			2,449
Selected financial information:
Cash flow from operations		73,082		58,273			87,369			84,810
Title loss payments – net of recoveries		16,906		20,039			33,441			32,979
Other comprehensive income (loss) - net of taxes		3,982		(10,046	)		(1,145	)		(8,373	)
Number of title orders opened (000):
April		76.3		79.4
May		80.0		69.6
June		88.8		72.7
Quarter		245.1		221.7

	June 30 2005		December 31 2004
Stockholders’ equity		744,626		697,313
Number of shares outstanding (000)		18,135		18,121
Book value per share		41.06		38.48

STEWART INFORMATION SERVICES CORPORATION
BALANCE SHEETS (condensed)
(In thousands of dollars)

	June 30 2005			December 31 2004
Assets
Cash and cash equivalents		119,610			121,383
Short-term investments		201,852			181,195
Investments – statutory reserve funds		429,824			401,814
Investments – other		80,924			68,793
Receivables		86,723			80,277
Property and equipment		85,379			83,391
Title plants		55,548			52,679
Goodwill		146,424			124,636
Intangible assets		16,728			16,988
Other assets		60,685			62,197
		1,283,697			1,193,353
Liabilities
Notes payable		64,840			49,930
Accounts payable and accrued liabilities		103,833			101,544
Estimated title losses		319,667			300,749
Deferred income taxes		33,963			29,335
Minority interests		16,768			14,482
		539,071			496,040
Contingent liabilities and commitments
Stockholders’ equity
Common and Class B Common Stock and additional paid-in capital		144,700			144,135
Retained earnings		591,188			543,295
Accumulated other comprehensive earnings		12,643			13,788
Treasury stock		(3,905	)		(3,905	)
Total stockholders’ equity		744,626			697,313
		1,283,697			1,193,353

July 28, 2005