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): April 27, 2006
STEWART INFORMATION SERVICES CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE	001-02658	74-1677330
(STATE OR OTHER	(COMMISSION FILE NO.)	(I.R.S. EMPLOYER
JURISDICTION)		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 April 27, 2006 regarding financial results for the three months ended March 31, 2006 is attached hereto as Exhibit 99.1, and the first five paragraphs thereof 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 8.01.   OTHER EVENTS.

          We have filed with the Securities and Exchange Commission, as exhibits to our most recently filed Annual Report on Form 10-K, the CEO and CFO certifications required under Section 302 of the Sarbanes-Oxley Act.

ITEM 9.01.   FINANCIAL STATEMENTS AND EXHIBITS.

          (d) EXHIBITS

Exhibit No	Description
99.1	Press release of Stewart Information Services Corporation dated April 27, 2006, reporting financial results for the three months ended March 31, 2006.

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:  April 27,  2006

EX-99.1

Exhibit 99.1

Stewart Reports Earnings for First Quarter 2006

          HOUSTON, April 27 /PRNewswire-FirstCall/ -- Stewart Information Services Corporation (NYSE: STC) today reported the results of its operations for the first quarter ended March 31, 2006.  (Dollar amounts in the table below are in millions, except for per share figures.)

	First Quarter
	2006		2005
Total revenues	$	539.4	$	511.0
Pretax earnings before minority interests		8.3		20.2
Net earnings		2.6		10.7
Net earnings per diluted share		0.14		0.59

Financial Highlights

*	Revenues increased 5.6 percent to $539.4 million in the first quarter of 2006 as compared with $511.0 million for the first quarter of 2005. This quarter’s revenues represent the highest revenues for any first quarter in the Company’s history.  Pretax earnings (calculated before minority interests) for the first quarter of 2006 were $8.3 million as compared with $20.2 million for the same period of 2005.
*	Revenues were positively impacted by an increase in both direct and agency business.  The increase in direct operations is primarily due to acquisitions and growth in commercial transactions.  Acquisitions increased revenues by $12.1 million and pretax earnings by $1.7 million for the quarter.
*	The increase in revenues for the quarter was more than offset by increases primarily in employee and other operating costs.  Employee costs were impacted by the competitive market for key employees in California and other states.  Retention of these key associates is essential to managing through changes in the marketplace.  Employee costs were also higher compared to the same period a year ago due to significant increases in health insurance claims and premium costs, additional employees at newly opened locations and increases in staff providing technology-related services.  While the Company continually monitors changes in transaction volumes, it carefully reacts to seasonal fluctuations.  The Company maintains staffing levels sufficient to continue to provide superior customer service and gain market share through a reasonably stable, dedicated employee work force.  Other operating costs increased primarily due to expenses related to new offices and increased technology development and security costs.
*	Stewart’s book value per share decreased to $42.16 per share at March 31, 2006 as compared with $42.21 at December 31, 2005.  The decline in book value per share was primarily due to an increase in unrealized losses in the Company’s bond portfolio triggered by interest rate increases in the first quarter of 2006.
*	Title orders declined in the first quarter of 2006 by 8.9 percent from the same period a year ago.  Orders were 9.8 percent lower in March 2006 than in March 2005.  Steady increases in mortgage interest rates were the major reason for the decline in title orders.

          “We took corrective actions in the quarter including management changes in several major markets in which our offices were not performing up to expectations,” said Stewart Morris, Jr., co-chief executive officer.  “Also, we should be delivering AIM+, our fourth-generation Web-based title production system and the second generation of SureClose(R), our transaction management system, by the end of 2006.  An outside third-party research group that was engaged to study the savings from our new technology identified future savings and increased productivity opportunities.  Our next step is to define and deploy these labor-saving workflow processes to obtain optimum benefit across our offices.

           “We have reorganized to combine Landata Systems and Stewart Realty Solutions under one profit center, Stewart Transaction Solutions,” added Stewart Morris, Jr.  “This move places all of our technology under single leadership, continuing our drive to sell our award-winning technology solutions to the real estate and title industries.  SureClose recently passed the 1.7 million online-file mark and continues to lead the industry in volume and service.  We also continue to add two to three new companies per day on our TitleLogix(R) and TitleWorkPlace(TM) application service providers (ASPs), the title industry’s leading ASP facilities.”

           Stewart was named to FORTUNE magazine’s annual list of “America’s Most Admired Companies”, landing at number four on the mortgage services industry list.  “Stewart was the best-ranked title insurance company on the list, receiving high marks for its use of corporate assets and financial soundness,” said Malcolm S. Morris, co-chief executive officer.  “Our record 31 consecutive years of growth in surplus and reserves is unmatched by any other title insurance company and provides ongoing policyholder protection.  This is one of the enabling factors in our growing commercial segment.”

           Stewart Information Services Corporation is a technology-driven, strategically competitive, real estate information and transaction management company providing title insurance and related information services through more than 9,000 policy-issuing offices and agencies in the United States and international markets.  Stewart also provides post-closing lender services, default management solutions, 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 property exchanges.  More information can be found at http://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
STATEMENTS OF EARNINGS
(In thousands of dollars, except per share amounts)

	Three months ended March 31
	2006			2005
Revenues
Title insurance:
Direct operations		227,818			212,874
Agency operations		281,654			273,685
Real estate information services		20,019			17,627
Investment income		8,537			6,308
Investment and other gains - net		1,394			468
		539,422			510,962
Expenses
Amounts retained by agencies		226,876			223,587
Employee costs		179,102			155,617
Other operating expenses		89,804			80,997
Title losses and related claims		25,258			22,131
Depreciation and amortization		8,688			7,806
Interest		1,429			617
		531,157			490,755
Earnings before taxes and minority interests		8,265			20,207
Income taxes		1,750			6,618
Minority interests		3,869			2,923
Net earnings		2,646			10,666
Average number of diluted shares (000)		18,304			18,225
Earnings per share - diluted		0.14			0.59
Segment information:
Title revenues		519,403			493,335
Title pretax earnings before minority interests		6,765			18,868
REI revenues		20,019			17,627
REI pretax earnings before minority interests		1,500			1,339
Selected financial information:
Cash (used in) provided by operations		(14,015	)		14,287
Title loss payments - net of recoveries		27,490			16,535
Changes in other comprehensive earnings - net of taxes		(3,001	)		(5,127	)
Number of title orders opened (000):
January		60.3			62.6
February		59.5			68.1
March		73.4			81.3
Quarter		193.2			212.0

	Mar 31 2006		Dec 31 2005
Stockholders’ equity		768,222		766,313
Number of shares outstanding (000)		18,220		18,154
Book value per share		42.16		42.21

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

	March 31 2006			December 31 2005
Assets
Cash and cash equivalents		118,361			134,734
Short-term investments		176,404			206,717
Investments - statutory reserve funds		457,663			449,475
Investments - other		74,683			85,802
Receivables - premiums from agencies		40,297			49,397
Receivables - other		45,744			47,791
Less allowance for uncollectible amounts		(8,090	)		(8,526	)
Property and equipment		90,780			85,762
Title plants		61,530			58,930
Goodwill		181,443			155,624
Intangible assets		15,968			15,268
Other assets		79,475			80,177
		1,334,258			1,361,151
Liabilities
Notes payable		93,100			88,413
Accounts payable and accrued liabilities		96,337			125,255
Estimated title losses		346,096			346,704
Deferred income taxes		11,623			15,784
Minority interests		18,880			18,682
		566,036			594,838
Contingent liabilities and commitments
Stockholders’ equity
Common and Class B Common Stock and additional paid-in capital		147,631			145,367
Retained earnings		621,878			619,232
Accumulated other comprehensive earnings		2,627			5,628
Treasury stock		(3,914	)		(3,914	)
Total stockholders’ equity		768,222			766,313
		1,334,258			1,361,151

April 27, 2006

SOURCE  Stewart Information Services Corp.
           -0-                             04/27/2006
          /CONTACT:  Ted C. Jones, Director - Investor Relations of Stewart Information Services Corp., +1-713-625-8014/
          /Web site:  http://www.stewart.com /