Title insurance premiums fell by nearly one-fourth in volume in the third quarter of 2023 compared to the year prior, the American Land Title Association (ALTA) reported this week.
The title insurance industry generated $4.1 billion in premium volume in Q3 2023, down 24% from Q3 2022, according to ALTA’s latest Market Share Analysis.
“Results of the latest quarter reflect headwinds from continued higher interest rates and limited housing supply that have resulted in a significant drop in home sales and mortgage refinances the past several quarters,” said Diane Tomb, ALTA’s chief executive officer. “While the housing market remains in a cyclical downturn, ALTA members will continue to deliver a valuable service and insurance product. Title insurance is the best option to reduce risk and protect property rights for consumers and lenders.”
Total operating income for the industry decreased 22.5% during this period, while operating expenses were down 20.9%. Loss and loss adjustment expenses broke even. A net investment gain of $128.9 million resulted in net income of $306.5 million. This compared to $388.8 million for the third quarter of 2022, a decrease of 21.2%.
Cumulatively through the first nine months of 2023, title insurance premium volume was down 35.1% ($11.4 billion) compared to the first nine months of 2022 ($17.6 billion). The title industry paid $485.2 million in claims during the first nine months of 2023, up from $438.7 million during the same period a year prior.
The top 10 underwriters by Q3 market share were as follows: First American Title Insurance Co., (21.6%) Old Republic National Title Insurance Co., (14.9%) Fidelity National Title Insurance Co., (13.4%) Chicago Title Insurance Co., (13.2%) Stewart Title Guaranty Co., (9.0%) Westcor Land Title Insurance Co., (4.8%) Commonwealth Land Title Insurance Co., (3.3%) Title Resources Guaranty Co., (2.9%) WFG National Title Insurance Co., (2.6%) and Doma Title Insurance Co., (1.8%)
ALTA is expected to release its fourth-quarter and full-year 2023 Market Share Analysis around March 20.
