Benefitting from the still-hot refinance market, title insurers wrote nearly 45% more premiums in the first quarter this year compared with one year prior, the American Land Title Association reported.
Mortgage originations topped $1 trillion in the first quarter — Fannie Mae
That led to $5.68 billion of title insurance premiums written during the period, down from approximately $6 billion in
"The continuous increase in home appreciation combined with still-dipping mortgage interest rates and the tail end of the low refinance rates have produced a historic rise in title insurance premium volume," Diane Tomb, ALTA chief executive, said in a press release.
Total operating income for underwriters in the first quarter was up 42.4%, but at the same time operating expenses were up 40%, while loss and loss adjustment expenses were down 11.9%.
This resulted in net operating income of $489.9 million in the period, compared to $296.5 million for the first quarter of 2020, a year-over-year increase of 65.2% and the
Claims paid in the first quarter dropped 15% to $106.7 million, down from $125 million the prior year.
Premium volume should continue to decrease in the second quarter, as Fannie Mae expects origination activity to fall by $700 billion from the first quarter to $1.19 trillion, while the MBA expects a much smaller drop, $44 billion to $1.05 trillion.
For this report, ALTA released market share figures by individual underwriter brand, rather than by corporate family.
The largest in the first quarter is First American Title, with a 20.5% share, followed by Old Republic National Title at 14.8%.
A pair of Fidelity National Financial subsidiaries are next, Chicago Title at 13.5% and Fidelity National Title at 13%. Unlike the other family companies where the bulk of business is written through the primary unit, Chicago Title is FNF's better known brand in several states.
Stewart Title Guaranty has an 8.2% market share, while the largest of the independent companies, Westcor Land Title is at 6.8%.
The top 10 was rounded out by WFG National Title, 3.2%; Title Resources Guaranty, 2.3%;