Stewart Information Services (STC) 10-Q 8 Nov 23 2023 Q3 Quarterly report Financial data

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)