Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-02658 | |
Entity Registrant Name | STEWART INFORMATION SERVICES CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1677330 | |
Entity Address, Address Line One | 1360 Post Oak Blvd., | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 713 | |
Local Phone Number | 625-8100 | |
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | STC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 26,719,342 | |
Entity Central Index Key | 0000094344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Revenues | $ 590,676 | $ 507,851 | $ 1,543,206 | $ 1,364,741 |
Investment income | 5,027 | 4,752 | 14,530 | 14,631 |
Net realized and unrealized (losses) gains | (7) | 46,905 | (6,035) | 50,730 |
Revenues | 595,696 | 559,508 | 1,551,701 | 1,430,102 |
Expenses | ||||
Amounts retained by agencies | 231,051 | 208,973 | 659,138 | 576,559 |
Employee costs | 155,638 | 143,815 | 428,817 | 412,967 |
Other operating expenses | 98,531 | 87,826 | 245,003 | 251,030 |
Title losses and related claims | 28,427 | 21,059 | 68,600 | 55,532 |
Depreciation and amortization | 5,144 | 5,694 | 13,436 | 17,458 |
Interest | 562 | 1,080 | 2,075 | 3,369 |
Total expenses | 519,353 | 468,447 | 1,417,069 | 1,316,915 |
Income before taxes and noncontrolling interests | 76,343 | 91,061 | 134,632 | 113,187 |
Income tax expense | (16,058) | (21,393) | (29,293) | (25,978) |
Net income | 60,285 | 69,668 | 105,339 | 87,209 |
Less net income attributable to noncontrolling interests | 4,376 | 3,560 | 10,107 | 8,561 |
Net income attributable to Stewart | 55,909 | 66,108 | 95,232 | 78,648 |
Net income | 60,285 | 69,668 | 105,339 | 87,209 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments | 3,844 | (5,135) | (3,404) | 1,928 |
Change in net unrealized gains and losses on investments | 920 | 3,603 | 15,055 | 17,985 |
Reclassification adjustment for realized gains and losses on investments | (175) | (92) | (276) | 120 |
Other comprehensive income (loss), net of taxes: | 4,589 | (1,624) | 11,375 | 20,033 |
Comprehensive income | 64,874 | 68,044 | 116,714 | 107,242 |
Less net income attributable to noncontrolling interests | 4,376 | 3,560 | 10,107 | 8,561 |
Comprehensive income attributable to Stewart | $ 60,498 | $ 64,484 | $ 106,607 | $ 98,681 |
Basic average shares outstanding (in shares) | 25,148 | 23,616 | 24,151 | 23,608 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 2.22 | $ 2.80 | $ 3.94 | $ 3.33 |
Diluted average shares outstanding (in shares) | 25,297 | 23,773 | 24,256 | 23,780 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 2.21 | $ 2.78 | $ 3.93 | $ 3.31 |
Direct operations | ||||
Revenues | ||||
Revenues | $ 280,114 | $ 245,068 | $ 696,611 | $ 634,198 |
Agency operations | ||||
Revenues | ||||
Revenues | 282,605 | 254,155 | 802,022 | 699,835 |
Ancillary services | ||||
Revenues | ||||
Revenues | 27,957 | 8,628 | 44,573 | 30,708 |
Operating revenues | ||||
Revenues | ||||
Revenues | $ 590,676 | $ 507,851 | $ 1,543,206 | $ 1,364,741 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 381,560 | $ 330,609 |
Short-term investments | 21,288 | 23,527 |
Investments in debt and equity securities, at fair value | 650,599 | 645,039 |
Receivables: | ||
Premiums from agencies | 32,749 | 26,405 |
Trade and other | 47,287 | 45,962 |
Income taxes | 2,110 | 1,641 |
Notes | 1,591 | 2,464 |
Allowance for uncollectible amounts | (4,456) | (4,469) |
Total receivables | 79,281 | 72,003 |
Property and equipment: | ||
Land | 2,964 | 3,009 |
Buildings | 22,423 | 20,519 |
Furniture and equipment | 174,079 | 178,416 |
Accumulated depreciation | (148,490) | (151,483) |
Total property and equipment, at cost | 50,976 | 50,461 |
Operating lease assets | 110,038 | 99,028 |
Title plants, at cost | 72,850 | 72,627 |
Investments on equity method basis | 6,851 | 6,169 |
Goodwill | 382,235 | 248,890 |
Intangible assets, net of amortization | 22,002 | 4,623 |
Deferred tax assets | 4,451 | 4,407 |
Other assets | 38,058 | 35,402 |
Total assets | 1,820,189 | 1,592,785 |
Liabilities | ||
Notes payable | 101,256 | 110,632 |
Accounts payable and accrued liabilities | 143,207 | 126,779 |
Operating lease liabilities | 122,475 | 113,843 |
Estimated title losses | 466,812 | 459,053 |
Deferred tax liabilities | 35,570 | 28,719 |
Total liabilities | 869,320 | 839,026 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Common Stock ($1 par value) and additional paid-in capital | 300,648 | 188,279 |
Retained earnings | 637,223 | 564,392 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation adjustments | (16,430) | (13,027) |
Net unrealized gains on debt securities investments | 25,106 | 10,328 |
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) |
Stockholders’ equity attributable to Stewart | 943,881 | 747,306 |
Noncontrolling interests | 6,988 | 6,453 |
Total stockholders’ equity (26,719,342 and 23,709,407 shares outstanding) | 950,869 | 753,759 |
Total liabilities and stockholders' equity | $ 1,820,189 | $ 1,592,785 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Common stock, shares outstanding (in shares) | 26,719,342 | 23,709,407 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of net income to cash provided by operating activities: | ||
Net income | $ 105,339 | $ 87,209 |
Add (deduct): | ||
Depreciation and amortization | 13,436 | 17,458 |
Provision for bad debt | 363 | 889 |
Net realized and unrealized losses (gains) | 6,035 | (730) |
Amortization of net premium on debt securities investments | 3,280 | 3,790 |
Payments for title losses less than (in excess of) provisions | 9,615 | (11,266) |
Adjustment for insurance recoveries of title losses | (73) | 175 |
Increase in receivables – net | (4,290) | (8,838) |
(Increase) decrease in other assets – net | (1,702) | 2,910 |
Decrease in accounts payable and other liabilities – net | 1,301 | 6,753 |
Change in net deferred income taxes | 3,576 | 5,563 |
Net income from equity investees | (2,385) | (1,996) |
Dividends received from equity investees | 2,499 | 1,964 |
Stock-based compensation expense | 4,234 | 3,380 |
Other – net | (367) | 28 |
Cash provided by operating activities | 140,861 | 107,289 |
Investing activities: | ||
Proceeds from sales of investments in securities | 25,772 | 20,899 |
Proceeds from matured investments in debt securities | 46,677 | 44,685 |
Purchases of investments in securities | (75,487) | (2,187) |
Net sales (purchases) of short-term investments | 2,431 | (193) |
Purchases of property and equipment, and real estate – net | (10,492) | (11,957) |
Cash paid for acquisition of businesses | (146,518) | 0 |
Other – net | 1,524 | 2,111 |
Cash (used) provided by investing activities | (156,093) | 53,358 |
Financing activities: | ||
Proceeds from notes payable | 2,361 | 23,514 |
Payments on notes payable | (11,737) | (26,179) |
Distributions to noncontrolling interests | (9,572) | (8,578) |
Issuance of new Common Stock | 108,961 | 0 |
Repurchases of Common Stock | (826) | (481) |
Cash dividends paid | (22,214) | (21,257) |
Other - net | (311) | 25 |
Cash provided (used) by financing activities | 66,662 | (32,956) |
Effects of changes in foreign currency exchange rates | (479) | 1,202 |
Increase in cash and cash equivalents | 50,951 | 128,893 |
Cash and cash equivalents at beginning of period | 330,609 | 192,067 |
Cash and cash equivalents at end of period | $ 381,560 | $ 320,960 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Noncontrolling interests |
Balances at beginning of period at Dec. 31, 2018 | $ 679,837 | $ 24,072 | $ 162,642 | $ 514,248 | $ (24,771) | $ (2,666) | $ 6,312 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 78,648 | 78,648 | |||||
Dividends on Common Stock | (21,506) | (21,506) | |||||
Stock-based compensation | 3,380 | 4 | 3,376 | ||||
Stock repurchases | (481) | (11) | (470) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 17,985 | 17,985 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 120 | 120 | |||||
Foreign currency translation adjustments, net of taxes | 1,928 | 1,928 | |||||
Net income attributable to noncontrolling interests | 8,561 | 8,561 | |||||
Distributions to noncontrolling interests | (8,578) | (8,578) | |||||
Net effect of other changes in ownership | (10) | (10) | |||||
Balances at end of period at Sep. 30, 2019 | 759,884 | 24,065 | 165,548 | 571,390 | (4,738) | (2,666) | 6,285 |
Balances at beginning of period at Jun. 30, 2019 | 700,827 | 24,065 | 164,235 | 512,467 | (3,114) | (2,666) | 5,840 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 66,108 | 66,108 | |||||
Dividends on Common Stock | (7,185) | (7,185) | |||||
Stock-based compensation | 1,323 | 0 | 1,323 | ||||
Stock repurchases | (10) | 0 | (10) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 3,603 | 3,603 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (92) | (92) | |||||
Foreign currency translation adjustments, net of taxes | (5,135) | (5,135) | |||||
Net income attributable to noncontrolling interests | 3,560 | 3,560 | |||||
Distributions to noncontrolling interests | (3,091) | (3,091) | |||||
Net effect of other changes in ownership | (24) | (24) | |||||
Balances at end of period at Sep. 30, 2019 | 759,884 | 24,065 | 165,548 | 571,390 | (4,738) | (2,666) | 6,285 |
Balances at beginning of period at Dec. 31, 2019 | 753,759 | 24,062 | 164,217 | 564,392 | (2,699) | (2,666) | 6,453 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 95,232 | 95,232 | |||||
Dividends on Common Stock | (22,401) | (22,401) | |||||
Issuance of Common Stock | 108,961 | 3,026 | 105,935 | ||||
Stock-based compensation | 4,234 | 4 | 4,230 | ||||
Stock repurchases | (826) | (20) | (806) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 15,055 | 15,055 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (276) | (276) | |||||
Foreign currency translation adjustments, net of taxes | (3,404) | (3,404) | |||||
Net income attributable to noncontrolling interests | 10,107 | 10,107 | |||||
Distributions to noncontrolling interests | (9,572) | (9,572) | |||||
Balances at end of period at Sep. 30, 2020 | 950,869 | 27,072 | 273,576 | 637,223 | 8,676 | (2,666) | 6,988 |
Balances at beginning of period at Jun. 30, 2020 | 787,332 | 24,052 | 166,208 | 589,424 | 4,087 | (2,666) | 6,227 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 55,909 | 55,909 | |||||
Dividends on Common Stock | (8,110) | (8,110) | |||||
Issuance of Common Stock | 108,961 | 3,026 | 105,935 | ||||
Stock-based compensation | 1,785 | 2 | 1,783 | ||||
Stock repurchases | (358) | (8) | (350) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 920 | 920 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (175) | (175) | |||||
Foreign currency translation adjustments, net of taxes | 3,844 | 3,844 | |||||
Net income attributable to noncontrolling interests | 4,376 | 4,376 | |||||
Distributions to noncontrolling interests | (3,615) | (3,615) | |||||
Balances at end of period at Sep. 30, 2020 | $ 950,869 | $ 27,072 | $ 273,576 | $ 637,223 | $ 8,676 | $ (2,666) | $ 6,988 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in usd per share) | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 |
Interim financial statements
Interim financial statements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Interim financial statements | Interim financial statements. The financial information contained in this report for the three months ended September 30, 2020 and 2019, and as of September 30, 2020, is unaudited. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020 (2019 Form 10-K). A. Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. B. Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. C. Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from current operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $535.7 million and $483.4 million at September 30, 2020 and December 31, 2019, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $21.1 million and $39.7 million at September 30, 2020 and December 31, 2019, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. D. Issuance of Common Stock. On August 17, 2020, the Company issued an aggregate of 3,026,340 new shares of its Common Stock ($1 par value), which included shares purchased by the underwriters to the transaction. Proceeds from the Common Stock issuance, net of issuance costs, amounted to $109.0 million. E. Impact of the COVID-19 pandemic . In March 2020, a global pandemic escalated relating to a novel strain of coronavirus (COVID-19), which resulted in a slowdown in the global economy and a U.S. declaration of a national emergency. In response to the pandemic, health and governmental bodies, including the state of Texas where the Company is headquartered, issued travel restrictions, quarantine orders, temporary closures of non-essential businesses and other restrictive measures. To date, various levels of restrictions are still in place across the U.S. to address the spread of COVID-19. Although the title insurance industry has been deemed essential in the U.S., the pandemic and measures to contain it have caused disruptions in the real estate market and in the Company's business operations. To the extent that the COVID-19 pandemic continues or worsens, it could adversely impact the Company's future operational and financial performance, which may result in impairments of its assets. The Company is currently unable to determine the effects the COVID-19 pandemic will have on the Company's future financial statements or results of operations. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues. The Company's operating revenues, summarized by type, are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Title insurance premiums: Direct 190,794 174,635 478,822 448,920 Agency 282,605 254,155 802,022 699,835 Escrow fees 53,384 38,666 127,903 100,570 Search, abstract and valuation services 42,627 20,922 81,533 63,109 Other revenues 21,266 19,473 52,926 52,307 590,676 507,851 1,543,206 1,364,741 |
Investments in debt and equity
Investments in debt and equity securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Net realized and unrealized gains (losses) | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 As of September 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2020 December 31, 2019 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 46,397 48,952 52,176 53,823 Corporate 301,297 320,348 299,074 309,142 Foreign 231,859 241,969 234,734 236,073 U.S. Treasury Bonds 6,562 6,626 6,664 6,683 586,115 617,895 592,648 605,721 Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2020 December 31, 2019 Gains Losses Gains Losses ($000 omitted) Municipal 2,555 — 1,649 2 Corporate 19,396 345 10,091 23 Foreign 10,131 21 2,362 1,023 U.S. Treasury Bonds 88 24 60 41 32,170 390 14,162 1,089 Debt securities as of September 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 68,394 69,164 After one year through five years 299,977 313,410 After five years through ten years 186,766 201,134 After ten years 30,978 34,187 586,115 617,895 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 345 22,781 — — 345 22,781 Foreign 1 4,106 20 240 21 4,346 U.S. Treasury Bonds — — 24 1,022 24 1,022 346 26,887 44 1,262 390 28,149 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2020 was 15. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 2 53 — — 2 53 Corporate 23 7,420 — — 23 7,420 Foreign 318 92,108 705 55,875 1,023 147,983 U.S. Treasury Bonds — — 41 2,215 41 2,215 343 99,581 746 58,090 1,089 157,671 Net realized and unrealized (losses) gains. Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Realized gains 241 50,237 1,749 51,190 Realized losses (209) (3,038) (1,556) (3,402) Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 (7) 46,905 (6,035) 50,730 Net realized gains for the first nine months of 2020 included $1.3 million of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments), partially offset by net realized losses of $1.1 million from the sale of investment securities. Net realized gains during both the third quarter and first nine months of 2019 included a $50.0 million realized gain related to the merger termination fee paid by Fidelity National Financial and a $2.7 million impairment charge on an equity method investment. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Net investment (losses) gains recognized on equity securities during the period (41) (171) (7,136) 3,222 Less: Net realized (losses) gains on equity securities sold during the period (2) 123 (908) 280 Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Proceeds from sales of debt securities 10,218 10,227 24,990 19,279 Proceeds from sales of equity securities 56 720 782 1,620 Total proceeds from sales of investments in securities 10,274 10,947 25,772 20,899 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements. The Fair Value Measurements and Disclosures Topic (Topic 820) of the Financial Accounting Standards Board's Accounting Standards Codification (ASC) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. Topic 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows: • Level 1 – quoted prices in active markets for identical assets or liabilities; • Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and • Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. As of September 30, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 48,952 48,952 Corporate — 320,348 320,348 Foreign — 241,969 241,969 U.S. Treasury Bonds — 6,626 6,626 Equity securities 32,704 — 32,704 32,704 617,895 650,599 As of December 31, 2019, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 53,823 53,823 Corporate — 309,142 309,142 Foreign — 236,073 236,073 U.S. Treasury Bonds — 6,683 6,683 Equity securities 39,318 — 39,318 39,318 605,721 645,039 As of September 30, 2020, Level 1 financial instruments consist of equity securities. Level 2 financial instruments consist of municipal, governmental, and corporate bonds, both U.S. and foreign. In accordance with the Company’s policies and guidelines which incorporate relevant statutory requirements, the Company’s third-party registered investment manager invests only in securities rated as investment grade or higher by the major rating services, where observable valuation inputs are significant. The fair value of the Company's investments in debt and equity securities is primarily determined using a third-party pricing service provider. The third-party pricing service provider calculates the fair values using both market approach and model valuation methods, as well as pricing information obtained from brokers, dealers and custodians. Management ensures the reasonableness of the third-party service valuations by comparing them with pricing information from the Company's investment manager. |
Net realized and unrealized (lo
Net realized and unrealized (losses) gains | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Net realized and unrealized (losses) gains | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 As of September 30, 2020 and December 31, 2019, the net unrealized investment gains relating to investments in equity securities held were $0.4 million and $6.9 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2020 December 31, 2019 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 46,397 48,952 52,176 53,823 Corporate 301,297 320,348 299,074 309,142 Foreign 231,859 241,969 234,734 236,073 U.S. Treasury Bonds 6,562 6,626 6,664 6,683 586,115 617,895 592,648 605,721 Foreign debt securities consist of Canadian government and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2020 December 31, 2019 Gains Losses Gains Losses ($000 omitted) Municipal 2,555 — 1,649 2 Corporate 19,396 345 10,091 23 Foreign 10,131 21 2,362 1,023 U.S. Treasury Bonds 88 24 60 41 32,170 390 14,162 1,089 Debt securities as of September 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 68,394 69,164 After one year through five years 299,977 313,410 After five years through ten years 186,766 201,134 After ten years 30,978 34,187 586,115 617,895 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 345 22,781 — — 345 22,781 Foreign 1 4,106 20 240 21 4,346 U.S. Treasury Bonds — — 24 1,022 24 1,022 346 26,887 44 1,262 390 28,149 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2020 was 15. Of these securities, 3 were in unrealized loss positions for more than 12 months. During 2020, the overall investment fair values increased, primarily resulting from the effect of lower interest rates which was partially offset by increased credit spreads. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery, and no significant credit risk is deemed to exist, these investments are not considered as other-than-temporarily impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 2 53 — — 2 53 Corporate 23 7,420 — — 23 7,420 Foreign 318 92,108 705 55,875 1,023 147,983 U.S. Treasury Bonds — — 41 2,215 41 2,215 343 99,581 746 58,090 1,089 157,671 Net realized and unrealized (losses) gains. Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Realized gains 241 50,237 1,749 51,190 Realized losses (209) (3,038) (1,556) (3,402) Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 (7) 46,905 (6,035) 50,730 Net realized gains for the first nine months of 2020 included $1.3 million of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments), partially offset by net realized losses of $1.1 million from the sale of investment securities. Net realized gains during both the third quarter and first nine months of 2019 included a $50.0 million realized gain related to the merger termination fee paid by Fidelity National Financial and a $2.7 million impairment charge on an equity method investment. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Net investment (losses) gains recognized on equity securities during the period (41) (171) (7,136) 3,222 Less: Net realized (losses) gains on equity securities sold during the period (2) 123 (908) 280 Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Proceeds from sales of debt securities 10,218 10,227 24,990 19,279 Proceeds from sales of equity securities 56 720 782 1,620 Total proceeds from sales of investments in securities 10,274 10,947 25,772 20,899 |
Goodwill and other intangibles
Goodwill and other intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles | Goodwill and other intangibles. The summary of changes in goodwill is as follows. Title Ancillary Services and Corporate Consolidated Total ($000 omitted) Balances at December 31, 2019 243,161 5,729 248,890 Acquisitions 113,642 19,703 133,345 Balances at September 30, 2020 356,803 25,432 382,235 During the third quarter 2020, the Company recorded total goodwill of $112.6 million under the title segment in connection with its acquisition of several title offices. This goodwill adjustment was based on management's preliminary purchase accounting, which is expected to be finalized during the fourth quarter 2020. During the second quarter 2020, the Company recorded goodwill under the ancillary services and corporate segment, which was based on management's preliminary purchase accounting related to its acquisition of U.S. Appraisals, a national appraisal management company providing residential property appraisals for mortgage lenders. During the third quarter 2020, management completed the purchase accounting, which resulted in goodwill of $19.7 million. The Company also recognized from the acquisition other intangible assets of $19.6 million, primarily related to customer relationships and internally-developed technology, which have estimated useful lives of 10 and 5 years, respectively. |
Estimated title losses
Estimated title losses | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Estimated title losses | Estimated title losses. A summary of estimated title losses for the nine months ended September 30 is as follows: 2020 2019 ($000 omitted) Balances at January 1 459,053 461,560 Provisions: Current year 68,063 54,670 Previous policy years 537 863 Total provisions 68,600 55,533 Payments, net of recoveries: Current year (9,595) (11,424) Previous policy years (49,390) (55,375) Total payments, net of recoveries (58,985) (66,799) Effects of changes in foreign currency exchange rates (1,856) 2,067 Balances at September 30 466,812 452,361 Loss ratios as a percentage of title operating revenues: Current year provisions 4.5 % 4.1 % Total provisions 4.6 % 4.2 % Provisions in the first nine months of 2020 increased compared to the same period in 2019, primarily as a result of increased title revenues, higher domestic loss provisioning rates due to the current economic environment, and unfavorable loss development related to certain coverages in the Canadian operations. Claim payments in the first nine months of 2020 decreased compared to the same period in 2019, primarily due to lower payments on large and non-large claims relating to prior policy years; while the effect of changes in foreign currency exchange rates for the first nine months of 2020 and 2019 were primarily influenced by the depreciation and appreciation, respectively, of the Canadian dollar against the U.S. dollar during those periods. |
Share-based payments
Share-based payments | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based payments | Share-based payments. Prior to 2020, the Company granted time-based and performance-based restricted stock units to executives and senior management employees. Each restricted stock unit represents a contractual right to receive a share of the Company's common stock. The time-based units vest on each of the first three anniversaries of the grant date, while the performance-based units vest upon achievement of certain financial objectives over a period of approximately three years. During the first nine months of 2020, the Company granted time-based restricted stock units and nonqualified stock options, in lieu of performance-based restricted stock units. The stock options vest and may be exercised at a strike price of $39.76 on each of the first three anniversaries of the grant date at a rate of 20%, 30% and 50%, chronologically, and expire 10 years after the grant date. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share. Basic earnings per share (EPS) attributable to Stewart is calculated by dividing net income attributable to Stewart by the weighted-average number of shares of Common Stock outstanding during the reporting periods. Outstanding shares of Common Stock granted to employees that are not yet vested (restricted shares) are excluded from the calculation of the weighted-average number of shares outstanding for calculating basic EPS. To calculate diluted EPS, the number of shares is adjusted to include the number of additional shares that would have been outstanding if restricted shares and units were vested and stock options were exercised. In periods of loss, dilutive shares are excluded from the calculation of the diluted EPS and diluted EPS is computed in the same manner as basic EPS. The calculation of the basic and diluted EPS is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 55,909 66,108 95,232 78,648 Denominator (000): Basic average shares outstanding 25,148 23,616 24,151 23,608 Average number of dilutive shares relating to grants of restricted shares and units 149 157 105 172 Diluted average shares outstanding 25,297 23,773 24,256 23,780 Basic earnings per share attributable to Stewart 2.22 2.80 3.94 3.33 Diluted earnings per share attributable to Stewart 2.21 2.78 3.93 3.31 |
Contingent liabilities and comm
Contingent liabilities and commitments | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities and commitments | Contingent liabilities and commitments. In the ordinary course of business, the Company guarantees the third-party indebtedness of certain of its consolidated subsidiaries. As of September 30, 2020, the maximum potential future payments on the guarantees are not more than the related notes payable recorded in the condensed consolidated balance sheets. The Company also guarantees the indebtedness related to lease obligations of certain of its consolidated subsidiaries. The maximum future obligations arising from these lease-related guarantees are not more than the Company’s future lease obligations, as presented on the condensed consolidated balance sheets, plus lease operating expenses. As of September 30, 2020, the Company also had unused letters of credit aggregating $5.2 million related to workers’ compensation and other insurance. The Company does not expect to make any payments on these guarantees. |
Regulatory and legal developmen
Regulatory and legal developments | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Regulatory and legal developments | Regulatory and legal developments. The Company is subject to claims and lawsuits arising in the ordinary course of its business, most of which involve disputed policy claims. In some of these lawsuits, the plaintiffs seek exemplary or treble damages in excess of policy limits. The Company does not expect that any of these ordinary course proceedings will have a material adverse effect on its consolidated financial condition or results of operations. The Company believes that it has adequate reserves for the various litigation matters and contingencies referred to in this paragraph and that the likely resolution of these matters will not materially affect its consolidated financial condition or results of operations. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information. The Company reports two operating segments: title and ancillary services and corporate . The title segment provides services needed to transfer title to property in a real estate transaction and includes services such as searching, examining, closing and insuring the condition of the title to the property. In addition, the title segment includes home and personal insurance services and Internal Revenue Code Section 1031 tax-deferred exchanges. The ancillary services and corporate segment includes search and valuation services, which are the principal offerings of ancillary services, and expenses of the parent holding company and certain other enterprise-wide overhead costs (net of centralized administrative services costs allocated to respective operating businesses). Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Title segment: Revenues 567,743 501,199 1,506,618 1,349,272 Depreciation and amortization 3,748 5,110 11,302 15,309 Income before taxes and noncontrolling interest 82,376 49,481 152,003 88,144 Ancillary services and corporate segment: Revenues 27,953 58,309 45,083 80,830 Depreciation and amortization 1,396 584 2,134 2,149 (Loss) income before taxes and noncontrolling interest (6,033) 41,580 (17,371) 25,043 Consolidated Stewart: Revenues 595,696 559,508 1,551,701 1,430,102 Depreciation and amortization 5,144 5,694 13,436 17,458 Income before taxes and noncontrolling interest 76,343 91,061 134,632 113,187 The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Revenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) United States 559,057 522,159 1,463,129 1,340,254 International 36,639 37,349 88,572 89,848 595,696 559,508 1,551,701 1,430,102 |
Other comprehensive income (los
Other comprehensive income (loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss). Changes in the balances of each component of other comprehensive income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments 1,164 244 920 4,560 957 3,603 Reclassification adjustment for realized gains and losses on investments (221) (46) (175) (116) (24) (92) 943 198 745 4,444 933 3,511 Foreign currency translation adjustments 4,384 540 3,844 (6,176) (1,041) (5,135) Other comprehensive income (loss) 5,327 738 4,589 (1,732) (108) (1,624) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments 19,056 4,001 15,055 22,766 4,781 17,985 Reclassification adjustment for realized gains and losses on investments (349) (73) (276) 152 32 120 18,707 3,928 14,779 22,918 4,813 18,105 Foreign currency translation adjustments (4,101) (697) (3,404) 2,750 822 1,928 Other comprehensive income 14,606 3,231 11,375 25,668 5,635 20,033 |
Interim financial statements (P
Interim financial statements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. |
Consolidation | Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. |
Restrictions on cash and investments | Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from current operating cash flow.Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. |
Fair value measurement | Fair value measurements. The Fair Value Measurements and Disclosures Topic (Topic 820) of the Financial Accounting Standards Board's Accounting Standards Codification (ASC) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. Topic 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows: • Level 1 – quoted prices in active markets for identical assets or liabilities; • Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and • Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of operating revenues | The Company's operating revenues, summarized by type, are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Title insurance premiums: Direct 190,794 174,635 478,822 448,920 Agency 282,605 254,155 802,022 699,835 Escrow fees 53,384 38,666 127,903 100,570 Search, abstract and valuation services 42,627 20,922 81,533 63,109 Other revenues 21,266 19,473 52,926 52,307 590,676 507,851 1,543,206 1,364,741 |
Investments in debt and equit_2
Investments in debt and equity securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 The amortized costs and fair values of investments in debt securities are as follows: September 30, 2020 December 31, 2019 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 46,397 48,952 52,176 53,823 Corporate 301,297 320,348 299,074 309,142 Foreign 231,859 241,969 234,734 236,073 U.S. Treasury Bonds 6,562 6,626 6,664 6,683 586,115 617,895 592,648 605,721 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Proceeds from sales of debt securities 10,218 10,227 24,990 19,279 Proceeds from sales of equity securities 56 720 782 1,620 Total proceeds from sales of investments in securities 10,274 10,947 25,772 20,899 |
Investments in equity securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Net investment (losses) gains recognized on equity securities during the period (41) (171) (7,136) 3,222 Less: Net realized (losses) gains on equity securities sold during the period (2) 123 (908) 280 Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 |
Gross unrealized gains and losses | Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2020 December 31, 2019 Gains Losses Gains Losses ($000 omitted) Municipal 2,555 — 1,649 2 Corporate 19,396 345 10,091 23 Foreign 10,131 21 2,362 1,023 U.S. Treasury Bonds 88 24 60 41 32,170 390 14,162 1,089 |
Debt securities according to contractual terms | Debt securities as of September 30, 2020 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 68,394 69,164 After one year through five years 299,977 313,410 After five years through ten years 186,766 201,134 After ten years 30,978 34,187 586,115 617,895 |
Gross unrealized losses on investments and fair values of related securities | Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 345 22,781 — — 345 22,781 Foreign 1 4,106 20 240 21 4,346 U.S. Treasury Bonds — — 24 1,022 24 1,022 346 26,887 44 1,262 390 28,149 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 2 53 — — 2 53 Corporate 23 7,420 — — 23 7,420 Foreign 318 92,108 705 55,875 1,023 147,983 U.S. Treasury Bonds — — 41 2,215 41 2,215 343 99,581 746 58,090 1,089 157,671 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value on recurring basis | As of September 30, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 48,952 48,952 Corporate — 320,348 320,348 Foreign — 241,969 241,969 U.S. Treasury Bonds — 6,626 6,626 Equity securities 32,704 — 32,704 32,704 617,895 650,599 As of December 31, 2019, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 53,823 53,823 Corporate — 309,142 309,142 Foreign — 236,073 236,073 U.S. Treasury Bonds — 6,683 6,683 Equity securities 39,318 — 39,318 39,318 605,721 645,039 |
Net realized and unrealized (_2
Net realized and unrealized (losses) gains (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Gross realized investment and other gains and losses | Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Realized gains 241 50,237 1,749 51,190 Realized losses (209) (3,038) (1,556) (3,402) Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 (7) 46,905 (6,035) 50,730 |
Investments in equity securities still held | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Net investment (losses) gains recognized on equity securities during the period (41) (171) (7,136) 3,222 Less: Net realized (losses) gains on equity securities sold during the period (2) 123 (908) 280 Net unrealized investment (losses) gains recognized on equity securities still held at September 30 (39) (294) (6,228) 2,942 |
Proceeds from sale of investments in securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2020 December 31, 2019 ($000 omitted) Investments in: Debt securities 617,895 605,721 Equity securities 32,704 39,318 650,599 645,039 The amortized costs and fair values of investments in debt securities are as follows: September 30, 2020 December 31, 2019 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 46,397 48,952 52,176 53,823 Corporate 301,297 320,348 299,074 309,142 Foreign 231,859 241,969 234,734 236,073 U.S. Treasury Bonds 6,562 6,626 6,664 6,683 586,115 617,895 592,648 605,721 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Proceeds from sales of debt securities 10,218 10,227 24,990 19,279 Proceeds from sales of equity securities 56 720 782 1,620 Total proceeds from sales of investments in securities 10,274 10,947 25,772 20,899 |
Goodwill and other intangibles
Goodwill and other intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | The summary of changes in goodwill is as follows. Title Ancillary Services and Corporate Consolidated Total ($000 omitted) Balances at December 31, 2019 243,161 5,729 248,890 Acquisitions 113,642 19,703 133,345 Balances at September 30, 2020 356,803 25,432 382,235 |
Estimated title losses (Tables)
Estimated title losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Summary of estimated title losses | A summary of estimated title losses for the nine months ended September 30 is as follows: 2020 2019 ($000 omitted) Balances at January 1 459,053 461,560 Provisions: Current year 68,063 54,670 Previous policy years 537 863 Total provisions 68,600 55,533 Payments, net of recoveries: Current year (9,595) (11,424) Previous policy years (49,390) (55,375) Total payments, net of recoveries (58,985) (66,799) Effects of changes in foreign currency exchange rates (1,856) 2,067 Balances at September 30 466,812 452,361 Loss ratios as a percentage of title operating revenues: Current year provisions 4.5 % 4.1 % Total provisions 4.6 % 4.2 % |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of the basic and diluted EPS is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 55,909 66,108 95,232 78,648 Denominator (000): Basic average shares outstanding 25,148 23,616 24,151 23,608 Average number of dilutive shares relating to grants of restricted shares and units 149 157 105 172 Diluted average shares outstanding 25,297 23,773 24,256 23,780 Basic earnings per share attributable to Stewart 2.22 2.80 3.94 3.33 Diluted earnings per share attributable to Stewart 2.21 2.78 3.93 3.31 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Selected statement of operations and income (loss) information related to segments | Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) Title segment: Revenues 567,743 501,199 1,506,618 1,349,272 Depreciation and amortization 3,748 5,110 11,302 15,309 Income before taxes and noncontrolling interest 82,376 49,481 152,003 88,144 Ancillary services and corporate segment: Revenues 27,953 58,309 45,083 80,830 Depreciation and amortization 1,396 584 2,134 2,149 (Loss) income before taxes and noncontrolling interest (6,033) 41,580 (17,371) 25,043 Consolidated Stewart: Revenues 595,696 559,508 1,551,701 1,430,102 Depreciation and amortization 5,144 5,694 13,436 17,458 Income before taxes and noncontrolling interest 76,343 91,061 134,632 113,187 |
Revenues generated in domestic and all international operations | Revenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 ($000 omitted) United States 559,057 522,159 1,463,129 1,340,254 International 36,639 37,349 88,572 89,848 595,696 559,508 1,551,701 1,430,102 |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of changes in the balances of each component of other comprehensive income (loss) | Changes in the balances of each component of other comprehensive income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments 1,164 244 920 4,560 957 3,603 Reclassification adjustment for realized gains and losses on investments (221) (46) (175) (116) (24) (92) 943 198 745 4,444 933 3,511 Foreign currency translation adjustments 4,384 540 3,844 (6,176) (1,041) (5,135) Other comprehensive income (loss) 5,327 738 4,589 (1,732) (108) (1,624) Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments 19,056 4,001 15,055 22,766 4,781 17,985 Reclassification adjustment for realized gains and losses on investments (349) (73) (276) 152 32 120 18,707 3,928 14,779 22,918 4,813 18,105 Foreign currency translation adjustments (4,101) (697) (3,404) 2,750 822 1,928 Other comprehensive income 14,606 3,231 11,375 25,668 5,635 20,033 |
Interim financial statements -
Interim financial statements - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Investments restricted for statutory reserve funds | $ 535,700 | $ 483,400 | ||
Restricted cash and cash equivalent | $ 21,100 | $ 39,700 | ||
Common stock, issued (in shares) | 3,026,340 | |||
Common stock, par value (in usd per share) | $ 1 | $ 1 | $ 1 | |
Issuance of new Common Stock | $ 109,000 | $ 108,961 | $ 0 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 590,676 | $ 507,851 | $ 1,543,206 | $ 1,364,741 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 190,794 | 174,635 | 478,822 | 448,920 |
Agency | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 282,605 | 254,155 | 802,022 | 699,835 |
Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,384 | 38,666 | 127,903 | 100,570 |
Search, abstract and valuation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,627 | 20,922 | 81,533 | 63,109 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 21,266 | $ 19,473 | $ 52,926 | $ 52,307 |
Investments in debt and equit_3
Investments in debt and equity securities - Investments in Debt and Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities | $ 617,895 | $ 605,721 |
Equity securities | 32,704 | 39,318 |
Investments in debt and equity securities | $ 650,599 | $ 645,039 |
Investments in debt and equit_4
Investments in debt and equity securities - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($)investment | Dec. 31, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment (losses) gains on equity securities held | $ | $ 0.4 | $ 6.9 |
Number of investments in an unrealized loss position | 15 | |
Number of investments in an unrealized loss positions for more than 12 months | 3 |
Investments in debt and equit_5
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 586,115 | $ 592,648 |
Fair values | 617,895 | 605,721 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 46,397 | 52,176 |
Fair values | 48,952 | 53,823 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 301,297 | 299,074 |
Fair values | 320,348 | 309,142 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 231,859 | 234,734 |
Fair values | 241,969 | 236,073 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 6,562 | 6,664 |
Fair values | $ 6,626 | $ 6,683 |
Investments in debt and equit_6
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 32,170 | $ 14,162 |
Losses | 390 | 1,089 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 2,555 | 1,649 |
Losses | 0 | 2 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 19,396 | 10,091 |
Losses | 345 | 23 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 10,131 | 2,362 |
Losses | 21 | 1,023 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 88 | 60 |
Losses | $ 24 | $ 41 |
Investments in debt and equit_7
Investments in debt and equity securities - Debt Securities According to Contractual Terms (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized costs | ||
In one year or less | $ 68,394 | |
After one year through five years | 299,977 | |
After five years through ten years | 186,766 | |
After ten years | 30,978 | |
Amortized costs, total | 586,115 | $ 592,648 |
Fair values | ||
In one year or less | 69,164 | |
After one year through five years | 313,410 | |
After five years through ten years | 201,134 | |
After ten years | 34,187 | |
Fair values, total | $ 617,895 | $ 605,721 |
Investments in debt and equit_8
Investments in debt and equity securities - Gross Unrealized Losses on Investments and Fair Values of Related Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Losses | ||
Less than 12 months | $ 346 | $ 343 |
More than 12 months | 44 | 746 |
Total | 390 | 1,089 |
Fair values | ||
Less than 12 months | 26,887 | 99,581 |
More than 12 months | 1,262 | 58,090 |
Total | 28,149 | 157,671 |
Municipal | ||
Losses | ||
Less than 12 months | 0 | 2 |
More than 12 months | 0 | 0 |
Total | 0 | 2 |
Fair values | ||
Less than 12 months | 0 | 53 |
More than 12 months | 0 | 0 |
Total | 0 | 53 |
Corporate | ||
Losses | ||
Less than 12 months | 345 | 23 |
More than 12 months | 0 | 0 |
Total | 345 | 23 |
Fair values | ||
Less than 12 months | 22,781 | 7,420 |
More than 12 months | 0 | 0 |
Total | 22,781 | 7,420 |
Foreign | ||
Losses | ||
Less than 12 months | 1 | 318 |
More than 12 months | 20 | 705 |
Total | 21 | 1,023 |
Fair values | ||
Less than 12 months | 4,106 | 92,108 |
More than 12 months | 240 | 55,875 |
Total | 4,346 | 147,983 |
U.S. Treasury Bonds | ||
Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | 24 | 41 |
Total | 24 | 41 |
Fair values | ||
Less than 12 months | 0 | 0 |
More than 12 months | 1,022 | 2,215 |
Total | $ 1,022 | $ 2,215 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 617,895 | $ 605,721 |
Equity securities | 32,704 | 39,318 |
Investments in debt and equity securities | 650,599 | 645,039 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 32,704 | 39,318 |
Investments in debt and equity securities | 32,704 | 39,318 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Investments in debt and equity securities | 617,895 | 605,721 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 48,952 | 53,823 |
Municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 48,952 | 53,823 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 320,348 | 309,142 |
Corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 320,348 | 309,142 |
Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 241,969 | 236,073 |
Foreign | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Foreign | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 241,969 | 236,073 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 6,626 | 6,683 |
U.S. Treasury Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
U.S. Treasury Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 6,626 | $ 6,683 |
Net realized and unrealized (_3
Net realized and unrealized (losses) gains - Gross Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains | $ 241 | $ 50,237 | $ 1,749 | $ 51,190 |
Realized losses | (209) | (3,038) | (1,556) | (3,402) |
Net unrealized investment (losses) gains recognized on equity securities still held at September 30 | (39) | (294) | (6,228) | 2,942 |
Investment and other gains (losses) – net | $ (7) | 46,905 | (6,035) | 50,730 |
Equity method investment, realized gain | 1,300 | |||
Debt securities, realized losses | $ 1,100 | |||
Gain realized from termination fee paid by Fidelity National Financial | 50,000 | 50,000 | ||
Impairment charge on equity method investment | $ 2,700 | $ 2,700 |
Net realized and unrealized (_4
Net realized and unrealized (losses) gains - Net Gains on Investments in Equity Securities Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment (losses) gains recognized on equity securities during the period | $ (41) | $ (171) | $ (7,136) | $ 3,222 |
Less: Net realized (losses) gains on equity securities sold during the period | (2) | 123 | (908) | 280 |
Net unrealized investment (losses) gains recognized on equity securities still held at September 30 | $ (39) | $ (294) | $ (6,228) | $ 2,942 |
Net realized and unrealized (_5
Net realized and unrealized (losses) gains - Proceeds from the Sale of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of debt securities | $ 10,218 | $ 10,227 | $ 24,990 | $ 19,279 |
Proceeds from sales of equity securities | 56 | 720 | 782 | 1,620 |
Total proceeds from sales of investments in securities | $ 10,274 | $ 10,947 | $ 25,772 | $ 20,899 |
Goodwill and other intangible_2
Goodwill and other intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | |||
Beginning balances | $ 248,890 | $ 248,890 | |
Acquisitions | $ 19,700 | 133,345 | |
Ending balance | 382,235 | 382,235 | |
Title | |||
Goodwill [Roll Forward] | |||
Beginning balances | 243,161 | 243,161 | |
Acquisitions | 112,600 | 1,000 | 113,642 |
Ending balance | 356,803 | 356,803 | |
Ancillary Services and Corporate | |||
Goodwill [Roll Forward] | |||
Beginning balances | $ 5,729 | 5,729 | |
Acquisitions | 19,703 | ||
Ending balance | $ 25,432 | $ 25,432 |
Goodwill and other intangible_3
Goodwill and other intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | |
Goodwill [Line Items] | |||
Increase in goodwill | $ 19,700 | $ 133,345 | |
Other Intangible Assets | |||
Goodwill [Line Items] | |||
Acquired intangible assets | $ 19,600 | ||
Customer Relationships | |||
Goodwill [Line Items] | |||
Estimated useful lives | 10 years | ||
Internally-Developed Technology | |||
Goodwill [Line Items] | |||
Estimated useful lives | 5 years | ||
Ancillary Services and Corporate | |||
Goodwill [Line Items] | |||
Increase in goodwill | 19,703 | ||
Title | |||
Goodwill [Line Items] | |||
Increase in goodwill | $ 112,600 | $ 1,000 | $ 113,642 |
Estimated title losses (Details
Estimated title losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balances at beginning of period | $ 459,053 | $ 461,560 |
Provisions: | ||
Current year | 68,063 | 54,670 |
Previous policy years | 537 | 863 |
Total provisions | 68,600 | 55,533 |
Payments, net of recoveries: | ||
Current year | (9,595) | (11,424) |
Previous policy years | (49,390) | (55,375) |
Total payments, net of recoveries | (58,985) | (66,799) |
Effects of changes in foreign currency exchange rates | (1,856) | 2,067 |
Balances at end of period | $ 466,812 | $ 452,361 |
Loss ratios as a percentage of title operating revenues: | ||
Current year provisions | 4.50% | 4.10% |
Total provisions | 4.60% | 4.20% |
Share-based payments (Details)
Share-based payments (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Strike price (USD per share) | $ 39.76 | |
Fair value of options granted in the period | $ 3.4 | |
Number of options granted in the period (in shares) | 648,000 | |
Grants in the period weighted average exercise price (USD per share) | $ 5.32 | |
Time-Based Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Stock Options | Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 20.00% | |
Stock Options | Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 30.00% | |
Stock Options | Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 50.00% | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair values at grant date | $ 3.8 | |
Share-based incentives, shares issued | 96,000 | |
Average grant price (in usd per share) | $ 39.36 | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair values at grant date | $ 5 | |
Share-based incentives, shares issued | 119,000 | |
Average grant price (in usd per share) | $ 42.05 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income attributable to Stewart | $ 55,909 | $ 66,108 | $ 95,232 | $ 78,648 |
Denominator | ||||
Basic average shares outstanding (in shares) | 25,148 | 23,616 | 24,151 | 23,608 |
Average number of dilutive shares relating to grants of restricted shares and units (in shares) | 149 | 157 | 105 | 172 |
Diluted average shares outstanding (in shares) | 25,297 | 23,773 | 24,256 | 23,780 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 2.22 | $ 2.80 | $ 3.94 | $ 3.33 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 2.21 | $ 2.78 | $ 3.93 | $ 3.31 |
Contingent liabilities and co_2
Contingent liabilities and commitments (Details) $ in Millions | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee of indebtedness, relating to unused letters of credit | $ 5.2 |
Segment information - Additiona
Segment information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment information - Selected
Segment information - Selected Statement of Operations and Income (Loss) Information Related to Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 595,696 | $ 559,508 | $ 1,551,701 | $ 1,430,102 |
Depreciation and amortization | 5,144 | 5,694 | 13,436 | 17,458 |
(Loss) income before taxes and noncontrolling interest | 76,343 | 91,061 | 134,632 | 113,187 |
Title segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 567,743 | 501,199 | 1,506,618 | 1,349,272 |
Depreciation and amortization | 3,748 | 5,110 | 11,302 | 15,309 |
(Loss) income before taxes and noncontrolling interest | 82,376 | 49,481 | 152,003 | 88,144 |
Ancillary services and corporate segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,953 | 58,309 | 45,083 | 80,830 |
Depreciation and amortization | 1,396 | 584 | 2,134 | 2,149 |
(Loss) income before taxes and noncontrolling interest | $ (6,033) | $ 41,580 | $ (17,371) | $ 25,043 |
Segment information - Revenues
Segment information - Revenues Generated in United States and All International Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 595,696 | $ 559,508 | $ 1,551,701 | $ 1,430,102 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 559,057 | 522,159 | 1,463,129 | 1,340,254 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 36,639 | $ 37,349 | $ 88,572 | $ 89,848 |
Other comprehensive income (l_3
Other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Before-Tax Amount | ||||
Other comprehensive income | $ 5,327 | $ (1,732) | $ 14,606 | $ 25,668 |
Tax Expense (Benefit) | ||||
Other comprehensive income (loss) | 738 | (108) | 3,231 | 5,635 |
Net-of-Tax Amount | ||||
Other comprehensive income (loss), net of taxes: | 4,589 | (1,624) | 11,375 | 20,033 |
Net unrealized (losses) gains on investments | ||||
Before-Tax Amount | ||||
Change in net unrealized gains and losses on investments | 1,164 | 4,560 | 19,056 | 22,766 |
Reclassification adjustment for realized gains and losses on investments | (221) | (116) | (349) | 152 |
Other comprehensive income | 943 | 4,444 | 18,707 | 22,918 |
Tax Expense (Benefit) | ||||
Change in net unrealized gains and losses on investments | 244 | 957 | 4,001 | 4,781 |
Reclassification adjustment for realized gains and losses on investments | (46) | (24) | (73) | 32 |
Other comprehensive income (loss) | 198 | 933 | 3,928 | 4,813 |
Net-of-Tax Amount | ||||
Change in net unrealized gains and losses on investments | 920 | 3,603 | 15,055 | 17,985 |
Reclassification adjustment for realized gains and losses on investments | (175) | (92) | (276) | 120 |
Other comprehensive income (loss), net of taxes: | 745 | 3,511 | 14,779 | 18,105 |
Foreign currency translation adjustments | ||||
Before-Tax Amount | ||||
Other comprehensive income | 4,384 | (6,176) | (4,101) | 2,750 |
Tax Expense (Benefit) | ||||
Other comprehensive income (loss) | 540 | (1,041) | (697) | 822 |
Net-of-Tax Amount | ||||
Other comprehensive income (loss), net of taxes: | $ 3,844 | $ (5,135) | $ (3,404) | $ 1,928 |