The Best’s Special Report, titled, “Title Sector Delivers Strong Operating Performance,” states that
The industry’s combined ratio, termed composite ratio in title insurance terminology, improved by 2.7 points to 92.6% in 2015, the fourth consecutive year it has been under 100% .This improvement resulted from decreases in the loss and expense ratios of 1.2 and 1.5 points, respectively. Both ratios are the lowest of the most recent 11-year period, reflective of the increase in NPW, favorable loss experience and continued cost-control/expense management initiatives by leading insurers that have occurred during this time.
The top four states in terms of premium volume (
The favorable underwriting results, along with investment gains, resulted in an 11.1% increase in pre-tax operating income to
Most of the major title insurers reported an increase in commercial business transactions, which typically carry higher margins per order. Given a continued favorable environment of low interest rates, the housing market continued to experience improvement in 2015, as home prices showed appreciation, housing completions rose and foreclosure rates continued to decline.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=254344.
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