Title insurance premium volume jumped nearly 28% year-over-year during the third quarter of 2012, according to American Land Title Association.
Approximately $3 billion in title insurance premiums were generated by the industry in the third quarter of 2012. This compares to the $2.4 billion brought in during the third quarter last year.
“Title insurance premium volume is highly dependent on real estate sales and mortgage-refinancing activity,” said Michelle Korsmo, ALTA’s chief executive officer. “The third quarter of 2012 continued to show improvement in our industry as it was the third consecutive quarter with an increase over the equivalent 2011 quarter.”
Operating income increased by 22% year-over-year, while loss expense dropped 27% and operating expenses rose 23%.
“This resulted in an operating gain of $114 million which compares to a loss of $16 million in the third quarter of 2011,” Korsmo said. “The industry remains in a strong financial position and has admitted assets of $8.7 billion, including nearly $7.7 billion in cash and invested assets. Additionally, statutory reserves were almost $4.7 billion and statutory surplus stood over $3.1 billion.”
California, Texas, Florida, New York and Pennsylvania were among the states generating the most title insurance premiums during Q3. North Dakota, Louisiana, North Carolina, Idaho and Nebraska were the five states that experienced an increase of 45% or more in title insurance premiums during the third quarter.
Fourth quarter and year-end Market Share Analysis is expected to be released around March 20, 2013.
