Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $1 par value per share | |
Trading Symbol | STC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,362,249 | |
Entity Central Index Key | 0000094344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Operating revenues | $ 590,267 | $ 717,615 | $ 1,647,887 | $ 2,412,062 |
Investment income | 13,393 | 5,158 | 32,114 | 15,519 |
Net realized and unrealized losses | (1,946) | (6,374) | (4,829) | (14,194) |
Revenues | 601,714 | 716,399 | 1,675,172 | 2,413,387 |
Expenses | ||||
Amounts retained by agencies | 218,983 | 280,517 | 596,498 | 951,555 |
Employee costs | 181,493 | 195,057 | 534,710 | 610,286 |
Other operating expenses | 130,455 | 151,208 | 380,530 | 502,966 |
Title losses and related claims | 22,251 | 25,486 | 59,727 | 81,105 |
Depreciation and amortization | 16,414 | 14,067 | 46,848 | 42,103 |
Interest | 5,054 | 4,553 | 14,777 | 13,471 |
Total expenses | 574,650 | 670,888 | 1,633,090 | 2,201,486 |
Income before taxes and noncontrolling interests | 27,064 | 45,511 | 42,082 | 211,901 |
Income tax expense | (9,134) | (10,783) | (9,588) | (48,376) |
Net income | 17,930 | 34,728 | 32,494 | 163,525 |
Less net income attributable to noncontrolling interests | 3,931 | 5,294 | 10,870 | 14,534 |
Net income attributable to Stewart | 13,999 | 29,434 | 21,624 | 148,991 |
Net income attributable to Stewart | ||||
Net income | 17,930 | 34,728 | 32,494 | 163,525 |
Other comprehensive loss, net of taxes: | ||||
Foreign currency translation adjustments | (5,847) | (15,300) | (995) | (22,861) |
Change in net unrealized gains and losses on investments | (7,468) | (8,921) | (6,616) | (41,513) |
Reclassification adjustments for realized gains and losses on investments | 20 | (385) | 333 | (687) |
Other comprehensive loss, net of taxes: | (13,295) | (24,606) | (7,278) | (65,061) |
Comprehensive income | 4,635 | 10,122 | 25,216 | 98,464 |
Less net income attributable to noncontrolling interests | 3,931 | 5,294 | 10,870 | 14,534 |
Comprehensive income attributable to Stewart | $ 704 | $ 4,828 | $ 14,346 | $ 83,930 |
Basic average shares outstanding (in shares) | 27,348 | 27,113 | 27,269 | 27,031 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 0.51 | $ 1.09 | $ 0.79 | $ 5.51 |
Diluted average shares outstanding (in shares) | 27,650 | 27,371 | 27,445 | 27,359 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 0.51 | $ 1.08 | $ 0.79 | $ 5.45 |
Direct operations | ||||
Revenues | ||||
Operating revenues | $ 256,377 | $ 307,408 | $ 722,242 | $ 976,364 |
Agency operations | ||||
Revenues | ||||
Operating revenues | 265,700 | 340,470 | 723,476 | 1,154,546 |
Real estate solutions and other | ||||
Revenues | ||||
Operating revenues | $ 68,190 | $ 69,737 | $ 202,169 | $ 281,152 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 202,985 | $ 248,367 |
Short-term investments | 37,238 | 24,318 |
Investments, at fair value: | ||
Debt securities (amortized cost of $628,153 and $646,728) | 585,406 | 611,934 |
Equity securities | 75,333 | 98,149 |
Investments, fair value | 660,739 | 710,083 |
Receivables: | ||
Premiums from agencies | 40,509 | 39,921 |
Trade and other | 64,364 | 67,348 |
Income taxes | 4,725 | 10,281 |
Notes | 13,765 | 7,482 |
Allowance for uncollectible amounts | (8,652) | (7,309) |
Total receivables | 114,711 | 117,723 |
Property and equipment: | ||
Land | 2,545 | 2,545 |
Buildings | 19,049 | 18,761 |
Furniture and equipment | 233,062 | 213,707 |
Accumulated depreciation | (171,230) | (153,474) |
Total property and equipment, at cost | 83,426 | 81,539 |
Operating lease assets | 123,698 | 127,830 |
Title plants, at cost | 73,359 | 73,358 |
Investments on equity method basis | 4,283 | 4,575 |
Goodwill | 1,072,022 | 1,072,982 |
Intangible assets, net of amortization | 201,539 | 199,084 |
Deferred tax assets | 2,554 | 2,590 |
Other assets | 92,516 | 75,430 |
Total assets | 2,669,070 | 2,737,879 |
Liabilities | ||
Notes payable | 445,158 | 447,006 |
Accounts payable and accrued liabilities | 177,180 | 196,541 |
Operating lease liabilities | 142,044 | 148,003 |
Estimated title losses | 521,395 | 549,448 |
Deferred tax liabilities | 24,094 | 26,616 |
Total liabilities | 1,309,871 | 1,367,614 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Common Stock ($1 par value) and additional paid-in capital | 337,924 | 324,344 |
Retained earnings | 1,075,224 | 1,091,816 |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustments | (24,851) | (23,856) |
Net unrealized losses on debt securities investments | (33,770) | (27,487) |
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) |
Stockholders’ equity attributable to Stewart | 1,351,861 | 1,362,151 |
Noncontrolling interests | 7,338 | 8,114 |
Total stockholders’ equity (27,355,427 and 27,130,412 shares outstanding) | 1,359,199 | 1,370,265 |
Total liabilities and stockholders' equity | $ 2,669,070 | $ 2,737,879 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 628,153 | $ 646,728 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Treasury stock (in shares) | 352,161 | 352,161 |
Common stock, shares outstanding (in shares) | 27,355,427 | 27,130,412 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of net income to cash provided by operating activities: | ||
Net income | $ 32,494 | $ 163,525 |
Add (deduct): | ||
Depreciation and amortization | 46,848 | 42,103 |
Adjustments for bad debt provisions | 2,425 | 812 |
Net realized and unrealized losses | 4,829 | 14,194 |
Amortization of net premium on debt securities investments | 448 | 1,870 |
Payments for title losses (in excess of) less than provisions | (26,417) | 10,950 |
Adjustments for insurance recoveries of title losses | 0 | 220 |
Decrease in receivables – net | 7,007 | 9,521 |
Increase in other assets – net | (9,581) | (4,343) |
Decrease in accounts payable and other liabilities – net | (24,766) | (81,987) |
Change in net deferred income taxes | (692) | 25 |
Net income from equity method investments | (847) | (2,536) |
Dividends received from equity method investments | 1,121 | 3,135 |
Stock-based compensation expense | 10,310 | 9,239 |
Other – net | 399 | 312 |
Cash provided by operating activities | 43,578 | 167,040 |
Investing activities: | ||
Proceeds from sales of investments in securities | 53,630 | 47,954 |
Proceeds from matured investments in debt securities | 58,005 | 28,754 |
Purchases of investments in securities | (72,857) | (165,130) |
Net purchases of short-term investments | (14,005) | (1,632) |
Purchases of property and equipment, and real estate | (29,487) | (35,274) |
Proceeds from sale of property and equipment and other assets | 369 | 977 |
Cash paid for acquisition of businesses | (25,100) | (102,864) |
Increase in notes receivable | (6,960) | (69) |
Other – net | (348) | 1,941 |
Cash used by investing activities | (36,753) | (225,343) |
Financing activities: | ||
Proceeds from notes payable | 3,538 | 38,012 |
Payments on notes payable | (5,776) | (75,505) |
Distributions to noncontrolling interests | (11,646) | (14,863) |
Repurchases of Common Stock | (1,576) | (3,168) |
Proceeds from stock option and employee stock purchase plan exercises | 4,846 | 5,799 |
Cash dividends paid | (37,524) | (32,464) |
Payment of contingent consideration related to acquisitions | (3,025) | (15,997) |
Purchase of remaining interest in consolidated subsidiaries | 0 | (72) |
Other - net | 0 | 115 |
Cash used by financing activities | (51,163) | (98,143) |
Effects of changes in foreign currency exchange rates | (1,044) | (8,540) |
Change in cash and cash equivalents | (45,382) | (164,986) |
Cash and cash equivalents at beginning of period | 248,367 | 485,919 |
Cash and cash equivalents at end of period | $ 202,985 | $ 320,933 |
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, 2021 | $ 1,294,735 | $ 27,246 | $ 282,376 | $ 974,800 | $ 253 | $ (2,666) | $ 12,726 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 148,991 | 148,991 | |||||
Dividends on Common Stock | (32,853) | (32,853) | |||||
Stock-based compensation | 9,239 | 155 | 9,084 | ||||
Stock repurchases | (3,168) | (49) | (3,119) | ||||
Purchase of remaining interest in consolidated subsidiary | (72) | (72) | |||||
Stock option and employee stock purchase plan exercises | 5,799 | 124 | 5,675 | ||||
Change in net unrealized gains and losses on investments, net of taxes | (41,513) | (41,513) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (687) | (687) | |||||
Foreign currency translation adjustments, net of taxes | (22,861) | (22,861) | |||||
Net income attributable to noncontrolling interests | 14,534 | 14,534 | |||||
Distributions to noncontrolling interests | (14,863) | (14,863) | |||||
Net effect of other changes in ownership | 220 | 220 | |||||
Balances at end of period at Sep. 30, 2022 | 1,357,501 | 27,476 | 294,016 | 1,090,938 | (64,808) | (2,666) | 12,545 |
Balances at beginning of period at Jun. 30, 2022 | 1,359,821 | 27,390 | 288,834 | 1,073,788 | (40,202) | (2,666) | 12,677 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 29,434 | 29,434 | |||||
Dividends on Common Stock | (12,284) | (12,284) | |||||
Stock-based compensation | 2,799 | 29 | 2,770 | ||||
Stock repurchases | (617) | (12) | (605) | ||||
Stock option exercises | 3,086 | 69 | 3,017 | ||||
Purchase of remaining interest in consolidated subsidiary | (72) | (72) | |||||
Change in net unrealized gains and losses on investments, net of taxes | (8,921) | (8,921) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (385) | (385) | |||||
Foreign currency translation adjustments, net of taxes | (15,300) | (15,300) | |||||
Net income attributable to noncontrolling interests | 5,294 | 5,294 | |||||
Distributions to noncontrolling interests | (5,380) | (5,380) | |||||
Net effect of other changes in ownership | 26 | 26 | |||||
Balances at end of period at Sep. 30, 2022 | 1,357,501 | 27,476 | 294,016 | 1,090,938 | (64,808) | (2,666) | 12,545 |
Balances at beginning of period at Dec. 31, 2022 | 1,370,265 | 27,483 | 296,861 | 1,091,816 | (51,343) | (2,666) | 8,114 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 21,624 | 21,624 | |||||
Dividends on Common Stock | (38,216) | (38,216) | |||||
Stock-based compensation | 10,310 | 134 | 10,176 | ||||
Stock repurchases | (1,576) | (37) | (1,539) | ||||
Stock option and employee stock purchase plan exercises | 4,846 | 129 | 4,717 | ||||
Change in net unrealized gains and losses on investments, net of taxes | (6,616) | (6,616) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 333 | 333 | |||||
Foreign currency translation adjustments, net of taxes | (995) | (995) | |||||
Net income attributable to noncontrolling interests | 10,870 | 10,870 | |||||
Distributions to noncontrolling interests | (11,646) | (11,646) | |||||
Balances at end of period at Sep. 30, 2023 | 1,359,199 | 27,709 | 310,215 | 1,075,224 | (58,621) | (2,666) | 7,338 |
Balances at beginning of period at Jun. 30, 2023 | 1,365,995 | 27,620 | 304,405 | 1,074,458 | (45,326) | (2,666) | 7,504 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 13,999 | 13,999 | |||||
Dividends on Common Stock | (13,233) | (13,233) | |||||
Stock-based compensation | 3,267 | 17 | 3,250 | ||||
Stock repurchases | (223) | (5) | (218) | ||||
Stock option and employee stock purchase plan exercises | 2,855 | 77 | 2,778 | ||||
Change in net unrealized gains and losses on investments, net of taxes | (7,468) | (7,468) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 20 | 20 | |||||
Foreign currency translation adjustments, net of taxes | (5,847) | (5,847) | |||||
Net income attributable to noncontrolling interests | 3,931 | 3,931 | |||||
Distributions to noncontrolling interests | (4,097) | (4,097) | |||||
Balances at end of period at Sep. 30, 2023 | $ 1,359,199 | $ 27,709 | $ 310,215 | $ 1,075,224 | $ (58,621) | $ (2,666) | $ 7,338 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common stock per share (in usd per share) | $ 0.48 | $ 0.45 | $ 1.38 | $ 1.20 |
Interim financial statements
Interim financial statements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Interim financial statements | Interim financial statements. The financial information contained in this report for the three and nine months ended September 30, 2023 and 2022, and as of September 30, 2023, 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, 2022 filed with the Securities and Exchange Commission on February 28, 2023 (2022 Form 10-K). A. Management’s responsibility. The accompanying interim financial statements were prepared by management, which 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 c urrent operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $510.8 million and $544.0 million at September 30, 2023 and December 31, 2022, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $11.0 million a nd $8.6 million at September 30, 2023 and December 31, 2022, 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. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 2023 2022 ($000 omitted) Title insurance premiums: Direct 169,285 209,477 470,779 646,760 Agency 265,700 340,470 723,476 1,154,546 Escrow fees 41,973 49,407 117,223 166,696 Real estate solutions and abstract fees 86,451 89,519 253,422 302,534 Other revenues 26,858 28,742 82,987 141,526 590,267 717,615 1,647,887 2,412,062 |
Investments in debt and equity
Investments in debt and equity securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt and equity securities | Investments in debt and equity securities. As of September 30, 2023 and December 31, 2022, the net unrealized investment gains relating to investments in equity securitie s held were $11.0 million and $19.2 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2023 December 31, 2022 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 23,941 23,278 30,104 29,835 Corporate 250,552 231,038 272,362 254,316 Foreign 321,046 299,748 315,184 299,137 U.S. Treasury Bonds 32,614 31,342 29,078 28,646 628,153 585,406 646,728 611,934 Foreign debt securities consist of Canadian government, provincial 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, 2023 December 31, 2022 Gains Losses Gains Losses ($000 omitted) Municipal 1 664 3 272 Corporate 136 19,650 489 18,535 Foreign 152 21,450 165 16,212 U.S. Treasury Bonds — 1,272 21 453 289 43,036 678 35,472 Debt securities as of September 30, 2023 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 105,848 103,828 After one year through five years 329,317 306,479 After five years through ten years 180,634 164,702 After ten years 12,354 10,397 628,153 585,406 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 292 13,477 372 9,800 664 23,277 Corporate 284 18,194 19,366 209,437 19,650 227,631 Foreign 4,594 93,809 16,856 200,359 21,450 294,168 U.S. Treasury Bonds 1,007 26,639 265 4,703 1,272 31,342 6,177 152,119 36,859 424,299 43,036 576,418 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2023 was 374. Of these securities, 267 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at September 30, 2023 were essentially unchanged compared to December 31, 2022; however, gross unrealized losses over 12 months increased in 2023 primarily due to the passage of time and the continuing high interest rate environment which started in late 2022. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-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, 2022, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 262 27,491 10 67 272 27,558 Corporate 12,935 193,239 5,600 44,342 18,535 237,581 Foreign 7,608 186,221 8,604 101,294 16,212 287,515 U.S. Treasury Bonds 413 25,102 40 445 453 25,547 21,218 432,053 14,254 146,148 35,472 578,201 Net realized and unrealized gains. Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Realized gains 900 183 1,239 3,460 Realized losses (307) (65) (4,484) (3,904) Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) (1,946) (6,374) (4,829) (14,194) Realized gains and losses during the first nine months of 2023 included a $3.2 million contingent receivable loss adjustment resulting from a previous disposition of a business, while realized gains and losses during the first nine months of 2022 included a loss of $3.6 million from the disposition of the same business, partially offset by $2.0 million of gains from an acquisition contingent liability adjustment and a sale of a title plant copy. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Net investment losses recognized on equity securities during the period (1,738) (6,489) (1,505) (13,284) Less: Net realized gains on equity securities sold during the period 801 3 79 466 Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Proceeds from sales of debt securities 10,255 19,123 25,134 47,405 Proceeds from sales of equity securities 3,887 62 28,496 549 Total proceeds from sales of investments in securities 14,142 19,185 53,630 47,954 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements. Fair value is defined 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. Under U.S. GAAP, there is 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, 2023, 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 — 23,278 23,278 Corporate — 231,038 231,038 Foreign — 299,748 299,748 U.S. Treasury Bonds — 31,342 31,342 Equity securities 75,333 — 75,333 75,333 585,406 660,739 As of December 31, 2022, 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 — 29,835 29,835 Corporate — 254,316 254,316 Foreign — 299,137 299,137 U.S. Treasury Bonds — 28,646 28,646 Equity securities 98,149 — 98,149 98,149 611,934 710,083 As of September 30, 2023 and December 31, 2022, 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 gai
Net realized and unrealized gains | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Net realized and unrealized gains | Investments in debt and equity securities. As of September 30, 2023 and December 31, 2022, the net unrealized investment gains relating to investments in equity securitie s held were $11.0 million and $19.2 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2023 December 31, 2022 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 23,941 23,278 30,104 29,835 Corporate 250,552 231,038 272,362 254,316 Foreign 321,046 299,748 315,184 299,137 U.S. Treasury Bonds 32,614 31,342 29,078 28,646 628,153 585,406 646,728 611,934 Foreign debt securities consist of Canadian government, provincial 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, 2023 December 31, 2022 Gains Losses Gains Losses ($000 omitted) Municipal 1 664 3 272 Corporate 136 19,650 489 18,535 Foreign 152 21,450 165 16,212 U.S. Treasury Bonds — 1,272 21 453 289 43,036 678 35,472 Debt securities as of September 30, 2023 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 105,848 103,828 After one year through five years 329,317 306,479 After five years through ten years 180,634 164,702 After ten years 12,354 10,397 628,153 585,406 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 292 13,477 372 9,800 664 23,277 Corporate 284 18,194 19,366 209,437 19,650 227,631 Foreign 4,594 93,809 16,856 200,359 21,450 294,168 U.S. Treasury Bonds 1,007 26,639 265 4,703 1,272 31,342 6,177 152,119 36,859 424,299 43,036 576,418 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2023 was 374. Of these securities, 267 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at September 30, 2023 were essentially unchanged compared to December 31, 2022; however, gross unrealized losses over 12 months increased in 2023 primarily due to the passage of time and the continuing high interest rate environment which started in late 2022. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-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, 2022, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 262 27,491 10 67 272 27,558 Corporate 12,935 193,239 5,600 44,342 18,535 237,581 Foreign 7,608 186,221 8,604 101,294 16,212 287,515 U.S. Treasury Bonds 413 25,102 40 445 453 25,547 21,218 432,053 14,254 146,148 35,472 578,201 Net realized and unrealized gains. Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Realized gains 900 183 1,239 3,460 Realized losses (307) (65) (4,484) (3,904) Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) (1,946) (6,374) (4,829) (14,194) Realized gains and losses during the first nine months of 2023 included a $3.2 million contingent receivable loss adjustment resulting from a previous disposition of a business, while realized gains and losses during the first nine months of 2022 included a loss of $3.6 million from the disposition of the same business, partially offset by $2.0 million of gains from an acquisition contingent liability adjustment and a sale of a title plant copy. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Net investment losses recognized on equity securities during the period (1,738) (6,489) (1,505) (13,284) Less: Net realized gains on equity securities sold during the period 801 3 79 466 Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Proceeds from sales of debt securities 10,255 19,123 25,134 47,405 Proceeds from sales of equity securities 3,887 62 28,496 549 Total proceeds from sales of investments in securities 14,142 19,185 53,630 47,954 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill. The summary of changes in goodwill is as follows: Title Real Estate Solutions Corporate and Other Consolidated Total ($000 omitted) Balances at December 31, 2022 720,478 352,504 — 1,072,982 Acquisitions 8,328 11,690 — 20,018 Purchase accounting adjustments (20,978) — — (20,978) Balances at September 30, 2023 707,828 364,194 — 1,072,022 |
Estimated title losses
Estimated title losses | 9 Months Ended |
Sep. 30, 2023 | |
Loss Contingency [Abstract] | |
Estimated title losses | Estimated title losses. A summary of estimated title losses for the nine months ended September 30 is as follows: 2023 2022 ($000 omitted) Balances at January 1 549,448 549,614 Provisions: Current year 59,036 81,108 Previous policy years 691 (3) Total provisions 59,727 81,105 Payments, net of recoveries: Current year (12,911) (14,191) Previous policy years (73,233) (55,964) Total payments, net of recoveries (86,144) (70,155) Effects of changes in foreign currency exchange rates (1,636) (13,350) Balances at September 30 521,395 547,214 Loss ratios as a percentage of title operating revenues: Current year provisions 4.1 % 3.8 % Total provisions 4.1 % 3.8 % |
Share-based payments
Share-based payments | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based payments | Share-based payments. As part of its incentive compensation program for executives and senior management employees, the Company provides share-based awards, which usually include a combination of time-based restricted stock units, performance-based restricted stock units and stock options. Each restricted stock unit represents a contractual right to receive a share of the Company's Common Stock. The time-based units generally vest on each of the first three The stock options vest 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. Each vested stock option can be exercised to purchase a share of the Company's Common Stock at the strike price set by the Company at the grant date. The compensation expense associated with the share-based awards is calculated based on the fair value of the related award and recognized over the corresponding vesting period. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2023 | |
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 units and shares 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 2023 2022 2023 2022 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 13,999 29,434 21,624 148,991 Denominator (000): Basic average shares outstanding 27,348 27,113 27,269 27,031 Average number of dilutive shares relating to options 69 124 52 181 Average number of dilutive shares relating to grants of restricted units and shares 233 134 124 147 Diluted average shares outstanding 27,650 27,371 27,445 27,359 Basic earnings per share attributable to Stewart 0.51 1.09 0.79 5.51 Diluted earnings per share attributable to Stewart 0.51 1.08 0.79 5.45 |
Contingent liabilities and comm
Contingent liabilities and commitments | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023, 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 guaran tees 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, 2023, the Company also had unused letters of credit aggregating $4.9 million r elated 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, 2023 | |
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. The Company is subject to non-ordinary course of business claims or lawsuits from time to time. To the extent the Company is currently the subject of these types of lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Additionally, the Company occasionally receives various inquiries from governmental regulators concerning practices in the insurance industry. Many of these practices do not concern title insurance. To the extent the Company is in receipt of such inquiries, it believes that, where appropriate, it has adequately reserved for these matters and does not anticipate that the outcome of these inquiries will materially affect its consolidated financial condition or results of operations. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment information | Segment information. The Company has three reportable operating segments: the title segment, the real estate solutions segment, and the corporate and other segment. The title segment provides services needed to transfer title to property in a real estate transaction and includes services such as searching, abstracting, examining, closing and insuring the condition of the title to the property. In addition, the title segment includes home and personal insurance services, Internal Revenue Code Section 1031 tax-deferred exchanges, and digital customer engagement platform services. The real estate solutions segment supports the real estate industry and primarily includes credit and real estate information services, valuation management services, online notarization and closing services, and search services. The corporate and other segment is primarily comprised of the parent holding company and centralized support services departments. Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Title segment: Revenues 533,624 646,607 1,476,093 2,135,000 Depreciation and amortization 9,196 7,467 26,182 21,098 Income before taxes and noncontrolling interest 35,385 51,837 70,181 228,212 Real estate solutions segment: Revenues 68,215 69,738 202,250 241,993 Depreciation and amortization 6,820 6,204 19,401 19,381 Income before taxes 2,626 3,364 7,273 16,249 Corporate and other segment: Revenues (net realized losses) (125) 54 (3,171) 36,394 Depreciation and amortization 398 396 1,265 1,624 Loss before taxes (10,947) (9,690) (35,372) (32,560) Consolidated Stewart: Revenues 601,714 716,399 1,675,172 2,413,387 Depreciation and amortization 16,414 14,067 46,848 42,103 Income before taxes and noncontrolling interest 27,064 45,511 42,082 211,901 The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. During 2022, the corporate and other segment included results of a real estate brokerage company that was sold during the second quarter 2022. Total revenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) United States 562,045 670,846 1,574,275 2,271,497 International 39,669 45,553 100,897 141,890 601,714 716,399 1,675,172 2,413,387 |
Other comprehensive loss
Other comprehensive loss | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Other comprehensive loss | Other comprehensive loss. Changes in the balances of each component of other comprehensive loss 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 (9,452) (1,984) (7,468) (11,292) (2,371) (8,921) Reclassification adjustments for realized gains and losses on investments 25 5 20 (488) (103) (385) (9,427) (1,979) (7,448) (11,780) (2,474) (9,306) Foreign currency translation adjustments (6,931) (1,084) (5,847) (18,315) (3,015) (15,300) Other comprehensive loss (16,358) (3,063) (13,295) (30,095) (5,489) (24,606) Nine Months Ended Nine 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 (8,374) (1,758) (6,616) (52,548) (11,035) (41,513) Reclassification adjustment for realized gains and losses on investments 421 88 333 (870) (183) (687) (7,953) (1,670) (6,283) (53,418) (11,218) (42,200) Foreign currency translation adjustments (1,119) (124) (995) (26,668) (3,807) (22,861) Other comprehensive loss (9,072) (1,794) (7,278) (80,086) (15,025) (65,061) |
Interim financial statements (P
Interim financial statements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying interim financial statements were prepared by management, which 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 c urrent operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $510.8 million and $544.0 million at September 30, 2023 and December 31, 2022, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $11.0 million a nd $8.6 million at September 30, 2023 and December 31, 2022, 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. |
Fair value measurements | Fair value measurements. Fair value is defined 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. Under U.S. GAAP, there is 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenues | The Company's operating revenues, summarized by type, are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Title insurance premiums: Direct 169,285 209,477 470,779 646,760 Agency 265,700 340,470 723,476 1,154,546 Escrow fees 41,973 49,407 117,223 166,696 Real estate solutions and abstract fees 86,451 89,519 253,422 302,534 Other revenues 26,858 28,742 82,987 141,526 590,267 717,615 1,647,887 2,412,062 |
Investments in debt and equit_2
Investments in debt and equity securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Costs and Fair Values | The amortized costs and fair values of investments in debt securities are as follows: September 30, 2023 December 31, 2022 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 23,941 23,278 30,104 29,835 Corporate 250,552 231,038 272,362 254,316 Foreign 321,046 299,748 315,184 299,137 U.S. Treasury Bonds 32,614 31,342 29,078 28,646 628,153 585,406 646,728 611,934 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Proceeds from sales of debt securities 10,255 19,123 25,134 47,405 Proceeds from sales of equity securities 3,887 62 28,496 549 Total proceeds from sales of investments in securities 14,142 19,185 53,630 47,954 |
Schedule of Gross Unrealized Gains and Losses | Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2023 December 31, 2022 Gains Losses Gains Losses ($000 omitted) Municipal 1 664 3 272 Corporate 136 19,650 489 18,535 Foreign 152 21,450 165 16,212 U.S. Treasury Bonds — 1,272 21 453 289 43,036 678 35,472 |
Schedule of Debt Securities According to Contractual Terms | Debt securities as of September 30, 2023 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 105,848 103,828 After one year through five years 329,317 306,479 After five years through ten years 180,634 164,702 After ten years 12,354 10,397 628,153 585,406 |
Schedule of 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 292 13,477 372 9,800 664 23,277 Corporate 284 18,194 19,366 209,437 19,650 227,631 Foreign 4,594 93,809 16,856 200,359 21,450 294,168 U.S. Treasury Bonds 1,007 26,639 265 4,703 1,272 31,342 6,177 152,119 36,859 424,299 43,036 576,418 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, 2022, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 262 27,491 10 67 272 27,558 Corporate 12,935 193,239 5,600 44,342 18,535 237,581 Foreign 7,608 186,221 8,604 101,294 16,212 287,515 U.S. Treasury Bonds 413 25,102 40 445 453 25,547 21,218 432,053 14,254 146,148 35,472 578,201 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | As of September 30, 2023, 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 — 23,278 23,278 Corporate — 231,038 231,038 Foreign — 299,748 299,748 U.S. Treasury Bonds — 31,342 31,342 Equity securities 75,333 — 75,333 75,333 585,406 660,739 As of December 31, 2022, 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 — 29,835 29,835 Corporate — 254,316 254,316 Foreign — 299,137 299,137 U.S. Treasury Bonds — 28,646 28,646 Equity securities 98,149 — 98,149 98,149 611,934 710,083 |
Net realized and unrealized g_2
Net realized and unrealized gains (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Realized and Unrealized Gains and Losses | Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Realized gains 900 183 1,239 3,460 Realized losses (307) (65) (4,484) (3,904) Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) (1,946) (6,374) (4,829) (14,194) |
Schedule of Investment Gains and Losses Recognized Related to Investments in Equity Securities | Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Net investment losses recognized on equity securities during the period (1,738) (6,489) (1,505) (13,284) Less: Net realized gains on equity securities sold during the period 801 3 79 466 Net unrealized investment losses recognized on equity securities still held at end of period (2,539) (6,492) (1,584) (13,750) |
Schedule of Proceeds from Sale of Investments in Securities | The amortized costs and fair values of investments in debt securities are as follows: September 30, 2023 December 31, 2022 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 23,941 23,278 30,104 29,835 Corporate 250,552 231,038 272,362 254,316 Foreign 321,046 299,748 315,184 299,137 U.S. Treasury Bonds 32,614 31,342 29,078 28,646 628,153 585,406 646,728 611,934 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Proceeds from sales of debt securities 10,255 19,123 25,134 47,405 Proceeds from sales of equity securities 3,887 62 28,496 549 Total proceeds from sales of investments in securities 14,142 19,185 53,630 47,954 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The summary of changes in goodwill is as follows: Title Real Estate Solutions Corporate and Other Consolidated Total ($000 omitted) Balances at December 31, 2022 720,478 352,504 — 1,072,982 Acquisitions 8,328 11,690 — 20,018 Purchase accounting adjustments (20,978) — — (20,978) Balances at September 30, 2023 707,828 364,194 — 1,072,022 |
Estimated title losses (Tables)
Estimated title losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loss Contingency [Abstract] | |
Schedule of Estimated Title Losses | A summary of estimated title losses for the nine months ended September 30 is as follows: 2023 2022 ($000 omitted) Balances at January 1 549,448 549,614 Provisions: Current year 59,036 81,108 Previous policy years 691 (3) Total provisions 59,727 81,105 Payments, net of recoveries: Current year (12,911) (14,191) Previous policy years (73,233) (55,964) Total payments, net of recoveries (86,144) (70,155) Effects of changes in foreign currency exchange rates (1,636) (13,350) Balances at September 30 521,395 547,214 Loss ratios as a percentage of title operating revenues: Current year provisions 4.1 % 3.8 % Total provisions 4.1 % 3.8 % |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The calculation of the basic and diluted EPS is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 13,999 29,434 21,624 148,991 Denominator (000): Basic average shares outstanding 27,348 27,113 27,269 27,031 Average number of dilutive shares relating to options 69 124 52 181 Average number of dilutive shares relating to grants of restricted units and shares 233 134 124 147 Diluted average shares outstanding 27,650 27,371 27,445 27,359 Basic earnings per share attributable to Stewart 0.51 1.09 0.79 5.51 Diluted earnings per share attributable to Stewart 0.51 1.08 0.79 5.45 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Selected Statement of Income Information Related to Segments | Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) Title segment: Revenues 533,624 646,607 1,476,093 2,135,000 Depreciation and amortization 9,196 7,467 26,182 21,098 Income before taxes and noncontrolling interest 35,385 51,837 70,181 228,212 Real estate solutions segment: Revenues 68,215 69,738 202,250 241,993 Depreciation and amortization 6,820 6,204 19,401 19,381 Income before taxes 2,626 3,364 7,273 16,249 Corporate and other segment: Revenues (net realized losses) (125) 54 (3,171) 36,394 Depreciation and amortization 398 396 1,265 1,624 Loss before taxes (10,947) (9,690) (35,372) (32,560) Consolidated Stewart: Revenues 601,714 716,399 1,675,172 2,413,387 Depreciation and amortization 16,414 14,067 46,848 42,103 Income before taxes and noncontrolling interest 27,064 45,511 42,082 211,901 |
Schedule of Revenues Generated in United States and all International Operations | Total revenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 ($000 omitted) United States 562,045 670,846 1,574,275 2,271,497 International 39,669 45,553 100,897 141,890 601,714 716,399 1,675,172 2,413,387 |
Other comprehensive loss (Table
Other comprehensive loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Other Comprehensive Loss | Changes in the balances of each component of other comprehensive loss 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 (9,452) (1,984) (7,468) (11,292) (2,371) (8,921) Reclassification adjustments for realized gains and losses on investments 25 5 20 (488) (103) (385) (9,427) (1,979) (7,448) (11,780) (2,474) (9,306) Foreign currency translation adjustments (6,931) (1,084) (5,847) (18,315) (3,015) (15,300) Other comprehensive loss (16,358) (3,063) (13,295) (30,095) (5,489) (24,606) Nine Months Ended Nine Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (8,374) (1,758) (6,616) (52,548) (11,035) (41,513) Reclassification adjustment for realized gains and losses on investments 421 88 333 (870) (183) (687) (7,953) (1,670) (6,283) (53,418) (11,218) (42,200) Foreign currency translation adjustments (1,119) (124) (995) (26,668) (3,807) (22,861) Other comprehensive loss (9,072) (1,794) (7,278) (80,086) (15,025) (65,061) |
Interim financial statements (D
Interim financial statements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Investments restricted for statutory reserve funds | $ 510.8 | $ 544 |
Restricted cash and cash equivalent | $ 11 | $ 8.6 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 590,267 | $ 717,615 | $ 1,647,887 | $ 2,412,062 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 169,285 | 209,477 | 470,779 | 646,760 |
Agency | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 265,700 | 340,470 | 723,476 | 1,154,546 |
Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 41,973 | 49,407 | 117,223 | 166,696 |
Real estate solutions and abstract fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 86,451 | 89,519 | 253,422 | 302,534 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 26,858 | $ 28,742 | $ 82,987 | $ 141,526 |
Investments in debt and equit_3
Investments in debt and equity securities - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) investment | Dec. 31, 2022 USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment gains on equity securities held | $ | $ 11 | $ 19.2 |
Number of investments in an unrealized loss position | 374 | |
Number of investments in an unrealized loss positions for more than 12 months | 267 |
Investments in debt and equit_4
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 628,153 | $ 646,728 |
Fair values | 585,406 | 611,934 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 23,941 | 30,104 |
Fair values | 23,278 | 29,835 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 250,552 | 272,362 |
Fair values | 231,038 | 254,316 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 321,046 | 315,184 |
Fair values | 299,748 | 299,137 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 32,614 | 29,078 |
Fair values | $ 31,342 | $ 28,646 |
Investments in debt and equit_5
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 289 | $ 678 |
Losses | 43,036 | 35,472 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 1 | 3 |
Losses | 664 | 272 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 136 | 489 |
Losses | 19,650 | 18,535 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 152 | 165 |
Losses | 21,450 | 16,212 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 0 | 21 |
Losses | $ 1,272 | $ 453 |
Investments in debt and equit_6
Investments in debt and equity securities - Debt Securities According to Contractual Terms (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized costs | ||
In one year or less | $ 105,848 | |
After one year through five years | 329,317 | |
After five years through ten years | 180,634 | |
After ten years | 12,354 | |
Amortized costs | 628,153 | $ 646,728 |
Fair values | ||
In one year or less | 103,828 | |
After one year through five years | 306,479 | |
After five years through ten years | 164,702 | |
After ten years | 10,397 | |
Fair values | $ 585,406 | $ 611,934 |
Investments in debt and equit_7
Investments in debt and equity securities - Gross Unrealized Losses on Investments and Fair Values of Related Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Losses | ||
Less than 12 months | $ 6,177 | $ 21,218 |
More than 12 months | 36,859 | 14,254 |
Total | 43,036 | 35,472 |
Fair values | ||
Less than 12 months | 152,119 | 432,053 |
More than 12 months | 424,299 | 146,148 |
Total | 576,418 | 578,201 |
Municipal | ||
Losses | ||
Less than 12 months | 292 | 262 |
More than 12 months | 372 | 10 |
Total | 664 | 272 |
Fair values | ||
Less than 12 months | 13,477 | 27,491 |
More than 12 months | 9,800 | 67 |
Total | 23,277 | 27,558 |
Corporate | ||
Losses | ||
Less than 12 months | 284 | 12,935 |
More than 12 months | 19,366 | 5,600 |
Total | 19,650 | 18,535 |
Fair values | ||
Less than 12 months | 18,194 | 193,239 |
More than 12 months | 209,437 | 44,342 |
Total | 227,631 | 237,581 |
Foreign | ||
Losses | ||
Less than 12 months | 4,594 | 7,608 |
More than 12 months | 16,856 | 8,604 |
Total | 21,450 | 16,212 |
Fair values | ||
Less than 12 months | 93,809 | 186,221 |
More than 12 months | 200,359 | 101,294 |
Total | 294,168 | 287,515 |
U.S. Treasury Bonds | ||
Losses | ||
Less than 12 months | 1,007 | 413 |
More than 12 months | 265 | 40 |
Total | 1,272 | 453 |
Fair values | ||
Less than 12 months | 26,639 | 25,102 |
More than 12 months | 4,703 | 445 |
Total | $ 31,342 | $ 25,547 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | $ 585,406 | $ 611,934 |
Equity securities | 75,333 | 98,149 |
Investments in debt and equity securities | 660,739 | 710,083 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 75,333 | 98,149 |
Investments in debt and equity securities | 75,333 | 98,149 |
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 | 585,406 | 611,934 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 23,278 | 29,835 |
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: | 23,278 | 29,835 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 231,038 | 254,316 |
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: | 231,038 | 254,316 |
Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 299,748 | 299,137 |
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: | 299,748 | 299,137 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 31,342 | 28,646 |
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: | $ 31,342 | $ 28,646 |
Net realized and unrealized g_3
Net realized and unrealized gains - Gross Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains | $ 900 | $ 183 | $ 1,239 | $ 3,460 |
Realized losses | (307) | (65) | (4,484) | (3,904) |
Net unrealized investment losses recognized on equity securities still held at end of period | (2,539) | (6,492) | (1,584) | (13,750) |
Investment and other gains (losses) – net | $ (1,946) | $ (6,374) | $ (4,829) | $ (14,194) |
Net realized and unrealized g_4
Net realized and unrealized gains - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Contingent receivable loss adjustment | $ 3.2 | |
Loss on sale of business | $ 3.6 | |
Gain from acquisition contingent liability adjustment | $ 2 |
Net realized and unrealized g_5
Net realized and unrealized gains - Investment Gains and Losses recognized related to Investments in Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment losses recognized on equity securities during the period | $ (1,738) | $ (6,489) | $ (1,505) | $ (13,284) |
Less: Net realized gains on equity securities sold during the period | 801 | 3 | 79 | 466 |
Net unrealized investment losses recognized on equity securities still held at end of period | $ (2,539) | $ (6,492) | $ (1,584) | $ (13,750) |
Net realized and unrealized g_6
Net realized and unrealized gains - Proceeds from the Sale of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of debt securities | $ 10,255 | $ 19,123 | $ 25,134 | $ 47,405 |
Proceeds from sales of equity securities | 3,887 | 62 | 28,496 | 549 |
Total proceeds from sales of investments in securities | $ 14,142 | $ 19,185 | $ 53,630 | $ 47,954 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balances | $ 1,072,982 |
Acquisitions | 20,018 |
Purchase accounting adjustments | (20,978) |
Ending balance | 1,072,022 |
Title | |
Goodwill [Roll Forward] | |
Beginning balances | 720,478 |
Acquisitions | 8,328 |
Purchase accounting adjustments | (20,978) |
Ending balance | 707,828 |
Real Estate Solutions | |
Goodwill [Roll Forward] | |
Beginning balances | 352,504 |
Acquisitions | 11,690 |
Purchase accounting adjustments | 0 |
Ending balance | 364,194 |
Corporate and Other | |
Goodwill [Roll Forward] | |
Beginning balances | 0 |
Acquisitions | 0 |
Purchase accounting adjustments | 0 |
Ending balance | $ 0 |
Estimated title losses (Details
Estimated title losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balances at beginning of period | $ 549,448 | $ 549,614 |
Provisions: | ||
Current year | 59,036 | 81,108 |
Previous policy years | 691 | (3) |
Total provisions | 59,727 | 81,105 |
Payments, net of recoveries: | ||
Current year | (12,911) | (14,191) |
Previous policy years | (73,233) | (55,964) |
Total payments, net of recoveries | (86,144) | (70,155) |
Effects of changes in foreign currency exchange rates | (1,636) | (13,350) |
Balances at end of period | $ 521,395 | $ 547,214 |
Loss ratios as a percentage of title operating revenues: | ||
Current year provisions | 4.10% | 3.80% |
Total provisions | 4.10% | 3.80% |
Share-based payments (Details)
Share-based payments (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Time-based 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 | First anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 20% | |
Stock options | Second anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 30% | |
Stock options | Third anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 50% | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair value at grant date | $ 12.1 | $ 11.7 |
Granted (in shares) | 296,000 | 183,000 |
Average grant price (in usd per share) | $ 41.03 | $ 63.68 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income attributable to Stewart | $ 13,999 | $ 29,434 | $ 21,624 | $ 148,991 |
Denominator (000): | ||||
Basic average shares outstanding (in shares) | 27,348 | 27,113 | 27,269 | 27,031 |
Diluted average shares outstanding (in shares) | 27,650 | 27,371 | 27,445 | 27,359 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 0.51 | $ 1.09 | $ 0.79 | $ 5.51 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 0.51 | $ 1.08 | $ 0.79 | $ 5.45 |
Stock options | ||||
Denominator (000): | ||||
Average number of dilutive shares relating to options and grants of restricted units and shares (in shares) | 69 | 124 | 52 | 181 |
Restricted stock and restricted stock units | ||||
Denominator (000): | ||||
Average number of dilutive shares relating to options and grants of restricted units and shares (in shares) | 233 | 134 | 124 | 147 |
Contingent liabilities and co_2
Contingent liabilities and commitments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee of indebtedness, relating to unused letters of credit | $ 4.9 |
Segment information - Additiona
Segment information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment information - Selected
Segment information - Selected Statement of Income Information Related to Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues (net realized losses) | $ 601,714 | $ 716,399 | $ 1,675,172 | $ 2,413,387 |
Depreciation and amortization | 16,414 | 14,067 | 46,848 | 42,103 |
Income (loss) before taxes and noncontrolling interest | 27,064 | 45,511 | 42,082 | 211,901 |
Title segment: | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (net realized losses) | 533,624 | 646,607 | 1,476,093 | 2,135,000 |
Depreciation and amortization | 9,196 | 7,467 | 26,182 | 21,098 |
Income (loss) before taxes and noncontrolling interest | 35,385 | 51,837 | 70,181 | 228,212 |
Real estate solutions segment: | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (net realized losses) | 68,215 | 69,738 | 202,250 | 241,993 |
Depreciation and amortization | 6,820 | 6,204 | 19,401 | 19,381 |
Income (loss) before taxes and noncontrolling interest | 2,626 | 3,364 | 7,273 | 16,249 |
Corporate and other segment: | ||||
Segment Reporting Information [Line Items] | ||||
Revenues (net realized losses) | (125) | 54 | (3,171) | 36,394 |
Depreciation and amortization | 398 | 396 | 1,265 | 1,624 |
Income (loss) before taxes and noncontrolling interest | $ (10,947) | $ (9,690) | $ (35,372) | $ (32,560) |
Segment information - Revenues
Segment information - Revenues Generated in Domestic and all International Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 601,714 | $ 716,399 | $ 1,675,172 | $ 2,413,387 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | 562,045 | 670,846 | 1,574,275 | 2,271,497 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 39,669 | $ 45,553 | $ 100,897 | $ 141,890 |
Other comprehensive loss (Detai
Other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Before-Tax Amount | ||||
Other comprehensive loss | $ (16,358) | $ (30,095) | $ (9,072) | $ (80,086) |
Tax Expense (Benefit) | ||||
Other comprehensive loss | (3,063) | (5,489) | (1,794) | (15,025) |
Net-of-Tax Amount | ||||
Other comprehensive loss, net of taxes: | (13,295) | (24,606) | (7,278) | (65,061) |
Net unrealized gains and losses on investments | ||||
Before-Tax Amount | ||||
Change in net unrealized gains and losses on investments | (9,452) | (11,292) | (8,374) | (52,548) |
Reclassification adjustments for realized gains and losses on investments | 25 | (488) | 421 | (870) |
Other comprehensive loss | (9,427) | (11,780) | (7,953) | (53,418) |
Tax Expense (Benefit) | ||||
Change in net unrealized gains and losses on investments | (1,984) | (2,371) | (1,758) | (11,035) |
Reclassification adjustments for realized gains and losses on investments | 5 | (103) | 88 | (183) |
Other comprehensive loss | (1,979) | (2,474) | (1,670) | (11,218) |
Net-of-Tax Amount | ||||
Change in net unrealized gains and losses on investments | (7,468) | (8,921) | (6,616) | (41,513) |
Reclassification adjustments for realized gains and losses on investments | 20 | (385) | 333 | (687) |
Other comprehensive loss, net of taxes: | (7,448) | (9,306) | (6,283) | (42,200) |
Foreign currency translation adjustments | ||||
Before-Tax Amount | ||||
Other comprehensive loss | (6,931) | (18,315) | (1,119) | (26,668) |
Tax Expense (Benefit) | ||||
Other comprehensive loss | (1,084) | (3,015) | (124) | (3,807) |
Net-of-Tax Amount | ||||
Other comprehensive loss, net of taxes: | $ (5,847) | $ (15,300) | $ (995) | $ (22,861) |