Title premium volume falls 31% year-over-year

Title insurance premiums written declined by 31% last year compared with 2022, which was more than the 27% drop off in mortgage volume seen over that time.

Underwriters did $15.1 billion in premiums in 2023, compared with approximately $21 billion the prior year. Claims paid increased to $638 million from $595 million in 2022.

During 2021, total title premiums written totaled $26.2 billion.

Meanwhile, lenders originated $1.64 trillion during 2023, down from $2.25 trillion one year prior, according to estimates from the Mortgage Bankers Association.

"While the lack of supply and high mortgage rates continue to hinder home sales and refinances, title professionals continue to serve their customers, protecting property rights and supporting their communities," Diane Tomb, ALTA's chief executive, said in a press release. "In addition to facilitating closings and safeguarding one of consumers' largest purchases, title professionals help raise awareness about issues that could threaten homeownership rights, including heirs' property issues and the predatory practice of filing unfair real estate fee agreements."

Title insurance volume is highly correlated to mortgage origination activity. Underwriters typically charge higher fees for residential purchase transactions compared with refinancings. Purchases made up 81% of last year's volume, the MBA data showed, up from 70% in 2022.

A Fitch Ratings report issued on March 5 found industry aggregate revenues were down 29% year-over-year.

First American Title Insurance again had the largest share among individual underwriters, at 22%, virtually flat with the 22.1% share one year ago.

Old Republic National Title had a slightly bigger annual drop off, to 15.2% from 15.8%, while No. 3 Fidelity National Title Insurance fell to 13.4% from 13.7%.

Another Fidelity National Financial subsidiary, Chicago Title was fourth at 13%, down from 13.3%.

Stewart Title Insurance gained market share, to 9.2% from 8.9%. The largest of the independent title companies, Westcor, also had its share drop to 3.8% from 4.4%.

Title Resources Guaranty, which added Homeservices of America as an investor last year, found its market share rose to 3.1% from 2.5%. In 2021, TRG ranked ninth of the top 10 with a 2.4% share.

Ironically, Doma, which is being sold to TRG's parent Title Resources Group and previously divested its owned production offices during 2023, also gained share, to 2% from 1.8%. However, it still ranked 10th by market share.