Stewart Information Services Corp. lost $11.2 million in the first quarter, which was in part driven by a nearly $3 million charge related to its previously announced exit of the delinquent loan services business.
The current period for the Houston-based title insurance underwriter was an improvement over its first-quarter 2015 loss of $12.4 million.
In addition to the costs related to shutting the delinquent loan services segment, Stewart recorded $3.6 million of litigation expenses during the first quarter of 2016.
In March, Stewart
Stewart's title insurance business had $413.2 million in revenue in the first quarter, up 1.5% on a year-over-year basis. The segment lost $1 million on a pretax basis compared with a loss of $11.4 million one year prior.
Traditionally, the first quarter of the year is the weakest for title companies as it has the fewest residential property resales. The most recent quarter was also affected by fewer refinance transactions and "continued industry inefficiencies related to the new integrated disclosure requirements," CEO Matthew Morris said.
The good news is "we believe the negative impact of the integrated disclosure rules introduced last October moderated during the quarter, and we don't expect this to materially influence operations going forward," he said.
