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 27, 2006

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 27, 2006 regarding financial results for the three and six months ended June 30, 2006 is attached hereto as Exhibit 99.1, and the first seven 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 9.01.   FINANCIAL STATEMENTS AND EXHIBITS.

          (d) EXHIBITS

Exhibit No.	Description
99.1	Press release of Stewart Information Services Corporation dated July 27, 2006, reporting financial results for the three and six months ended June 30, 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:  July 27,  2006

EX-99.1

Exhibit 99.1

Stewart Reports Earnings for Second Quarter 2006

          HOUSTON, July 27 /PRNewswire-FirstCall/ -- Stewart Information Services Corporation (NYSE: STC) today reported the results of its operations for the second quarter and six months ended June 30, 2006. (Dollar amounts in the table below are in millions, except per share figures.)

	Second Quarter
	2006		2005
Total revenues	$	644.7	$	651.1
Pretax earnings before minority interests		29.6		66.4
Net earnings		15.7		37.2
Net earnings per diluted share		0.86		2.04
	Six Months
	2006		2005
Total revenues	$	1,184.2	$	1,162.0
Pretax earnings before minority interests		37.9		86.6
Net earnings		18.4		47.9
Net earnings per diluted share		1.00		2.63

          Financial Highlights

          *  Revenues decreased 1.0 percent to $644.7 million in the second quarter of 2006 compared with $651.1 million for the second quarter of 2005.  Pretax earnings (calculated before minority interests) for the second quarter of 2006 were $29.6 million compared with $66.4 million for the same period of 2005. 

          *  Revenues increased 1.9 percent to $1,184.2 million in the first six months of 2006 compared with $1,162.0 million for the first six months of 2005.  Pretax earnings (calculated before minority interests) for the first six months of 2006 were $37.9 million compared with $86.6 million for the same period of 2005. 

          *  The decrease in revenues and transactions handled in the second quarter of 2006 from the same period in 2005 resulted primarily from a reduction in residential closings due to a higher interest rate environment. Mortgage interest rates averaged 6.6% in the second quarter of 2006 compared with 5.7% in the second quarter of 2005.  Acquisitions and strong growth in commercial transactions positively impacted revenues in the second quarter of 2006, partially offsetting the decrease in residential activity.  Acquisitions increased revenues by $12.1 million for the quarter. 

          *  Profits for the second quarter of 2006 versus 2005 were reduced primarily by higher employee costs and other operating costs.   Other operating costs increased primarily due to expenses associated with new offices, increased technology development and related security costs and litigation expenses.  Employee costs were higher compared with the same period a year ago due to newly opened locations and increased technology-related services. The Company has taken steps to maintain staffing levels sufficient to continue to provide superior customer service and gain market share through a reasonably stable, dedicated employee work force.  The Company is continually monitoring changes in transaction volume and cyclical developments in the marketplace to manage its current level of business and respond to opportunities with regard to both people and technology. 

          *  The Company’s provisions for title losses as a percentage of title operating revenues increased to 6.4% in the second quarter of 2006 compared with 4.9% for the same period of 2005. This was the result of an increase in our loss payment experience and an addition to title loss reserves of $4.9 million related to defalcations by two independent title agencies. 

          *  Stewart’s book value per share increased to $42.92 at June 30, 2006 compared with $42.21 at December 31, 2005. 

          *  Title orders declined in the second quarter of 2006 by 17.0 percent from the same period a year ago. Orders were 22.7 percent lower in June 2006 than in June 2005. Steady increases in mortgage interest rates were the major reason for the decline in title orders.

          As previously announced, the Company recently added Catherine A. Allen and Thomas G. Apel as advisory directors to its board.  “Cathy is chief executive officer of BITS, the technology group for the Financial Services Roundtable, with an impressive resume of extensive banking experience and deep knowledge of technology,” said Malcolm S. Morris, chairman and co-chief executive officer.  “Tom was formerly president and chief executive officer of Centex Title and Ancillary Services and currently consults on product development, technology and business strategy for financial services and real estate finance companies. Each of these individuals is uniquely qualified as a board member to provide us valuable insight as we improve the real estate transaction process.”

          “We continue to make technology advancements,” said Stewart Morris, Jr., president and co-chief executive officer.  “Our recent electronic closings in Indiana were significant, involving strong regional mortgage originators and lenders.  We are confident that the paperless real estate transaction is moving beyond tests and into production for early adopters.  Our SureClose^(R) transaction management platform, patent-pending eClosingRoom^(TM), e-signature, e-notarization, e-recording and e-vault technologies position Stewart to offer a fully-electronic real estate transaction.  These tools will make closings easier for consumers and result in cost savings and competitive advantages for mortgage lenders.

          “We continue to push these Web-based electronic solutions out to the real estate and mortgage lending industries and have recently added Tim Anderson to lead our business development within the lender channel,” said Stewart Morris, Jr.  “Tim has worked with companies that support a paperless origination process and currently serves as a member of the Mortgage Bankers Association’s Mortgage Industry Standards Maintenance Organization (MISMO) governance committee.  He will represent our existing expertise within the lender market segment, and we are proud to have him join us.”

          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, aerial and satellite imagery, 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 June 30					Six months ended June 30
	2006			2005		2006			2005
Revenues
Title insurance:
Direct operations		276,391			278,941		504,209			491,815
Agency operations		340,189			341,500		621,843			615,185
Real estate information services		18,957			20,688		38,976			38,315
Investment income		8,396			7,149		16,933			13,457
Investment and other gains - net		796			2,801		2,191			3,269
		644,729			651,079		1,184,152			1,162,041
Expenses
Amounts retained by agencies		274,935			279,637		501,811			503,224
Employee costs		183,669			173,873		362,771			329,490
Other operating expenses		107,441			91,967		197,245			172,964
Title losses and related claims		39,217			30,213		64,475			52,344
Depreciation and amortization		8,426			8,244		17,114			16,050
Interest		1,417			778		2,847			1,395
		615,105			584,712		1,146,263			1,075,467
Earnings before taxes and minority interests		29,624			66,367		37,889			86,574
Income taxes		8,739			23,543		10,489			30,161
Minority interests		5,175			5,597		9,043			8,520
Net earnings		15,710			37,227		18,357			47,893
Average number of diluted shares (000)		18,310			18,227		18,306			18,226
Earnings per share - diluted		0.86			2.04		1.00			2.63
Segment information:
Title revenues		625,772			630,391		1,145,176			1,123,726
Title pretax earnings before minority interests		29,645			63,217		36,409			82,085
REI revenues		18,957			20,688		38,976			38,315
REI pretax (loss) earnings before minority interests		(21	)		3,150		1,480			4,489
Selected financial information:
Cash provided by operations		26,804			73,082		12,789			87,369
Title loss payments - net of recoveries		27,666			16,908		55,156			33,441
Changes in other comprehensive earnings - net of taxes		(2,339	)		3,982		(5,340	)		(1,145	)
Number of title orders opened (000):
April		62.9			76.3
May		71.9			80.0
June		68.6			88.8
Quarter		203.4			245.1

	June 30 2006		Dec 31 2005
Stockholders’ equity		782,232		766,313
Number of shares outstanding (000)		18,224		18,154
Book value per share		42.92		42.21

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

	June 30 2006			December 31 2005
Assets
Cash and cash equivalents		137,880			134,734
Short-term investments		147,324			206,717
Investments - statutory reserve funds		459,072			449,475
Investments - other		85,058			85,802
Receivables - premiums from agencies		46,300			49,397
Receivables - other		53,635			47,791
Allowance for uncollectible amounts		(8,537	)		(8,526	)
Property and equipment		93,001			85,762
Title plants		67,926			58,930
Goodwill		178,844			155,624
Intangible assets		14,683			15,268
Other assets		85,729			80,177
		1,360,915			1,361,151
Liabilities
Notes payable		91,274			88,413
Accounts payable and accrued liabilities		99,772			125,255
Estimated title losses		358,748			346,704
Deferred income taxes		9,882			15,784
Minority interests		19,007			18,682
		578,683			594,838
Contingent liabilities and commitments
Stockholders’ equity
Common and Class B Common Stock and additional paid-in capital		148,269			145,367
Retained earnings		637,589			619,232
Accumulated other comprehensive earnings		288			5,628
Treasury stock		(3,914	)		(3,914	)
Total stockholders’ equity		782,232			766,313
		1,360,915			1,361,151

SOURCE  Stewart Information Services Corporation
           -0-                                                  07/27/2006
           /CONTACT:  Ted C. Jones, Director - Investor Relations of Stewart Information Services Corporation, +1-713-625-8014/
           /Web site:  http://www.stewart.com /