Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $1 par value per share | |
Trading Symbol | STC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,580,535 | |
Entity Central Index Key | 0000094344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Operating revenues | $ 534,376 | $ 519,484 |
Investment income | 12,901 | 6,599 |
Net realized and unrealized gains (losses) | 7,038 | (1,778) |
Revenues | 554,315 | 524,305 |
Expenses | ||
Amounts retained by agencies | 199,976 | 205,738 |
Employee costs | 172,417 | 170,551 |
Other operating expenses | 136,951 | 120,743 |
Title losses and related claims | 17,383 | 17,674 |
Depreciation and amortization | 15,384 | 14,906 |
Interest | 5,058 | 4,849 |
Total expenses | 547,169 | 534,461 |
Income (loss) before taxes and noncontrolling interests | 7,146 | (10,156) |
Income tax (expense) benefit | (936) | 4,938 |
Net income (loss) | 6,210 | (5,218) |
Less net income attributable to noncontrolling interests | 3,080 | 2,972 |
Net income (loss) attributable to Stewart | 3,130 | (8,190) |
Net income (loss) attributable to Stewart | ||
Net income (loss) | 6,210 | (5,218) |
Other comprehensive (loss) income, net of taxes: | ||
Foreign currency translation adjustments | (4,470) | 598 |
Change in net unrealized gains and losses on investments | (2,276) | 6,617 |
Reclassification adjustments for realized gains and losses on investments | 150 | 92 |
Other comprehensive (loss) income, net of taxes: | (6,596) | 7,307 |
Comprehensive (loss) income | (386) | 2,089 |
Less net income attributable to noncontrolling interests | 3,080 | 2,972 |
Comprehensive loss attributable to Stewart | $ (3,466) | $ (883) |
Basic average shares outstanding (in shares) | 27,512 | 27,201 |
Basic earnings (loss) per share attributable to Stewart (in usd per share) | $ 0.11 | $ (0.30) |
Diluted average shares outstanding (in shares) | 28,027 | 27,201 |
Diluted earnings (loss) per share attributable to Stewart (in usd per share) | $ 0.11 | $ (0.30) |
Direct operations | ||
Revenues | ||
Operating revenues | $ 210,588 | $ 207,871 |
Agency operations | ||
Revenues | ||
Operating revenues | 240,772 | 249,021 |
Real estate solutions | ||
Revenues | ||
Operating revenues | $ 83,016 | $ 62,592 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 138,351 | $ 233,365 |
Short-term investments | 42,774 | 39,023 |
Investments, at fair value: | ||
Debt securities (amortized cost of $620,806 and $631,294) | 597,057 | 610,236 |
Equity securities | 76,893 | 69,700 |
Investments, fair value | 673,950 | 679,936 |
Receivables: | ||
Premiums from agencies | 39,600 | 38,676 |
Trade and other | 86,010 | 75,706 |
Income taxes | 4,435 | 3,535 |
Notes | 20,575 | 14,570 |
Allowance for uncollectible amounts | (8,000) | (7,583) |
Total receivables | 142,620 | 124,904 |
Property and equipment: | ||
Land | 2,582 | 2,545 |
Buildings | 19,240 | 19,219 |
Furniture and equipment | 241,675 | 234,370 |
Accumulated depreciation | (180,570) | (173,799) |
Total property and equipment, at cost | 82,927 | 82,335 |
Operating lease assets | 113,617 | 115,879 |
Title plants, at cost | 73,359 | 73,359 |
Goodwill | 1,072,315 | 1,072,129 |
Intangible assets, net of amortization | 185,067 | 193,196 |
Deferred tax assets | 3,719 | 3,776 |
Other assets | 122,690 | 84,959 |
Total assets | 2,651,389 | 2,702,861 |
Liabilities | ||
Notes payable | 445,433 | 445,290 |
Accounts payable and accrued liabilities | 166,376 | 190,054 |
Operating lease liabilities | 132,723 | 135,654 |
Estimated title losses | 519,229 | 528,269 |
Deferred tax liabilities | 23,485 | 25,045 |
Total liabilities | 1,287,246 | 1,324,312 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Common Stock ($1 par value) and additional paid-in capital | 341,314 | 338,451 |
Retained earnings | 1,060,808 | 1,070,841 |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustments | (23,049) | (18,579) |
Net unrealized losses on debt securities investments | (18,762) | (16,636) |
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) |
Stockholders’ equity attributable to Stewart | 1,357,645 | 1,371,411 |
Noncontrolling interests | 6,498 | 7,138 |
Total stockholders’ equity ($27,580,535 and 27,370,227 shares outstanding) | 1,364,143 | 1,378,549 |
Total liabilities and stockholders' equity | $ 2,651,389 | $ 2,702,861 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 620,806 | $ 631,294 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Treasury stock (in shares) | 352,161 | 352,161 |
Common stock, shares outstanding (in shares) | 27,580,535 | 27,370,227 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of net income (loss) to cash used by operating activities: | ||
Net income (loss) | $ 6,210 | $ (5,218) |
Add (deduct): | ||
Depreciation and amortization | 15,384 | 14,906 |
Adjustments for bad debt provisions | 818 | 590 |
Net realized and unrealized (gains) losses | (7,038) | 1,778 |
Amortization of net (discount) premium on debt securities investments | (9) | 230 |
Payments for title losses in excess of provisions | (5,432) | (15,797) |
Adjustments for insurance recoveries of title losses | 208 | 0 |
Increase in receivables – net | (12,674) | (13,724) |
Increase in other assets – net | (5,582) | (4,506) |
Decrease in accounts payable and other liabilities – net | (24,444) | (34,656) |
Change in net deferred income taxes | (5) | 1,724 |
Net loss (income) from equity method investments | 10 | (28) |
Dividends received from equity method investments | 229 | 680 |
Stock-based compensation expense | 2,670 | 2,759 |
Other – net | 67 | 200 |
Cash used by operating activities | (29,588) | (51,062) |
Investing activities: | ||
Proceeds from sales of investments in securities | 20,874 | 26,772 |
Proceeds from matured investments in debt securities | 6,646 | 25,338 |
Purchases of investments in securities | (23,677) | (23,965) |
Net purchases of short-term investments | (4,927) | (2,541) |
Purchases of property and equipment and other long-lived assets | (10,218) | (8,894) |
Proceeds from sale of property and equipment and other assets | 8 | 49 |
Cash paid for acquisition of businesses | 0 | (21,500) |
Increase in notes receivable | (6,320) | (168) |
Purchases of cost-basis and other investments | (29,939) | (89) |
Other – net | 176 | 186 |
Cash used by investing activities | (47,377) | (4,812) |
Financing activities: | ||
Proceeds from notes payable | 3,387 | 3,521 |
Payments on notes payable | (3,378) | (5,589) |
Distributions to noncontrolling interests | (3,720) | (3,775) |
Repurchases of Common Stock | (3,390) | (1,271) |
Proceeds from stock option and employee stock purchase plan exercises | 3,583 | 1,991 |
Cash dividends paid | (13,067) | (12,260) |
Payment of contingent consideration related to acquisitions | (186) | 0 |
Cash used by financing activities | (16,771) | (17,383) |
Effects of changes in foreign currency exchange rates | (1,278) | (295) |
Change in cash and cash equivalents | (95,014) | (73,552) |
Cash and cash equivalents at beginning of period | 233,365 | 248,367 |
Cash and cash equivalents at end of period | $ 138,351 | $ 174,815 |
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 | Treasury stock | Noncontrolling interests |
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 (loss) attributable to Stewart | (8,190) | (8,190) | |||||
Dividends on Common Stock | (12,306) | (12,306) | |||||
Stock-based compensation | 2,759 | 93 | 2,666 | ||||
Stock repurchases | (1,271) | (30) | (1,241) | ||||
Stock option and employee stock purchase plan exercises | 1,991 | 52 | 1,939 | ||||
Change in net unrealized gains and losses on investments, net of taxes | 6,617 | 6,617 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 92 | 92 | |||||
Foreign currency translation adjustments, net of taxes | 598 | 598 | |||||
Net income attributable to noncontrolling interests | 2,972 | 2,972 | |||||
Distributions to noncontrolling interests | (3,775) | (3,775) | |||||
Balances at end of period at Mar. 31, 2023 | 1,359,752 | 27,598 | 300,225 | 1,071,320 | (44,036) | (2,666) | 7,311 |
Balances at beginning of period at Dec. 31, 2023 | 1,378,549 | 27,723 | 310,728 | 1,070,841 | (35,215) | (2,666) | 7,138 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) attributable to Stewart | 3,130 | 3,130 | |||||
Dividends on Common Stock | (13,163) | (13,163) | |||||
Stock-based compensation | 2,670 | 172 | 2,498 | ||||
Stock repurchases | (3,390) | (55) | (3,335) | ||||
Stock option and employee stock purchase plan exercises | 3,583 | 93 | 3,490 | ||||
Change in net unrealized gains and losses on investments, net of taxes | (2,276) | (2,276) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 150 | 150 | |||||
Foreign currency translation adjustments, net of taxes | (4,470) | (4,470) | |||||
Net income attributable to noncontrolling interests | 3,080 | 3,080 | |||||
Distributions to noncontrolling interests | (3,720) | (3,720) | |||||
Balances at end of period at Mar. 31, 2024 | $ 1,364,143 | $ 27,933 | $ 313,381 | $ 1,060,808 | $ (41,811) | $ (2,666) | $ 6,498 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock per share (in usd per share) | $ 0.48 | $ 0.45 |
Interim financial statements
Interim financial statements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Interim financial statements | Interim financial statements. The financial information contained in this report for the three months ended March 31, 2024 and 2023, and as of March 31, 2024, 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, 2023 filed with the Securities and Exchange Commission on February 28, 2024 (2023 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 $519.9 million and $527.4 million at March 31, 2024 and December 31, 2023, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $10.3 million and $10.0 million at March 31, 2024 and December 31, 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues. The Company's operating revenues, summarized by type, are as follows: Three Months Ended 2024 2023 ($000 omitted) Title insurance premiums: Direct 141,699 130,817 Agency 240,772 249,021 Escrow fees 33,543 32,927 Real estate solutions and abstract fees 97,374 77,160 Other revenues 20,988 29,559 534,376 519,484 |
Investments in debt and equity
Investments in debt and equity securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt and equity securities | Investments in debt and equity securities. As of March 31, 2024 and December 31, 2023, the net unrealized investment gains relating to investments in equity securitie s held were $18.4 million and $11.2 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: March 31, 2024 December 31, 2023 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 18,725 18,499 22,201 22,031 Corporate 240,573 228,668 242,656 231,474 Foreign 326,560 315,661 332,723 323,391 U.S. Treasury Bonds 34,948 34,229 33,714 33,340 620,806 597,057 631,294 610,236 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: March 31, 2024 December 31, 2023 Gains Losses Gains Losses ($000 omitted) Municipal 2 228 — 170 Corporate 515 12,420 764 11,946 Foreign 858 11,757 1,765 11,097 U.S. Treasury Bonds 25 744 106 480 1,400 25,149 2,635 23,693 Debt securities as of March 31, 2024 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 85,105 84,346 After one year through five years 341,785 327,413 After five years through ten years 177,015 169,663 After ten years 16,901 15,635 620,806 597,057 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 March 31, 2024, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 46 5,628 182 10,619 228 16,247 Corporate 118 14,737 12,302 196,546 12,420 211,283 Foreign 1,079 66,628 10,678 206,074 11,757 272,702 U.S. Treasury Bonds 553 26,207 191 4,886 744 31,093 1,796 113,200 23,353 418,125 25,149 531,325 The number of specific debt investment holdings held in an unrealized loss position as of March 31, 2024 was 332. Of these securities, 255 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at March 31, 2024 slightly increased compared to December 31, 2023, primarily due to 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 50 13,022 120 8,383 170 21,405 Corporate 68 4,808 11,878 208,971 11,946 213,779 Foreign 472 31,918 10,625 216,135 11,097 248,053 U.S. Treasury Bonds 327 20,895 153 4,815 480 25,710 917 70,643 22,776 438,304 23,693 508,947 Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows: Three Months Ended 2024 2023 ($000 omitted) Realized gains 102 61 Realized losses (291) (747) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) 7,038 (1,778) Realized losses during the first quarters 2024 and 2023 were primarily related to sales of securities investments. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 7,234 (1,756) Less: Net realized gains (losses) on equity securities sold during the period 7 (664) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) Proceeds from sales of investments in securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Proceeds from sales of debt securities 20,767 7,446 Proceeds from sales of equity securities 107 19,326 Total proceeds from sales of investments in securities 20,874 26,772 |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 — 18,499 18,499 Corporate — 228,668 228,668 Foreign — 315,661 315,661 U.S. Treasury Bonds — 34,229 34,229 Equity securities 76,893 — 76,893 76,893 597,057 673,950 As of December 31, 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 — 22,031 22,031 Corporate — 231,474 231,474 Foreign — 323,391 323,391 U.S. Treasury Bonds — 33,340 33,340 Equity securities 69,700 — 69,700 69,700 610,236 679,936 As of March 31, 2024 and December 31, 2023, 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 (losses) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Net realized and unrealized gains (losses) | Investments in debt and equity securities. As of March 31, 2024 and December 31, 2023, the net unrealized investment gains relating to investments in equity securitie s held were $18.4 million and $11.2 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: March 31, 2024 December 31, 2023 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 18,725 18,499 22,201 22,031 Corporate 240,573 228,668 242,656 231,474 Foreign 326,560 315,661 332,723 323,391 U.S. Treasury Bonds 34,948 34,229 33,714 33,340 620,806 597,057 631,294 610,236 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: March 31, 2024 December 31, 2023 Gains Losses Gains Losses ($000 omitted) Municipal 2 228 — 170 Corporate 515 12,420 764 11,946 Foreign 858 11,757 1,765 11,097 U.S. Treasury Bonds 25 744 106 480 1,400 25,149 2,635 23,693 Debt securities as of March 31, 2024 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 85,105 84,346 After one year through five years 341,785 327,413 After five years through ten years 177,015 169,663 After ten years 16,901 15,635 620,806 597,057 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 March 31, 2024, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 46 5,628 182 10,619 228 16,247 Corporate 118 14,737 12,302 196,546 12,420 211,283 Foreign 1,079 66,628 10,678 206,074 11,757 272,702 U.S. Treasury Bonds 553 26,207 191 4,886 744 31,093 1,796 113,200 23,353 418,125 25,149 531,325 The number of specific debt investment holdings held in an unrealized loss position as of March 31, 2024 was 332. Of these securities, 255 were in unrealized loss positions for more than 12 months. Total gross unrealized investment losses at March 31, 2024 slightly increased compared to December 31, 2023, primarily due to 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 50 13,022 120 8,383 170 21,405 Corporate 68 4,808 11,878 208,971 11,946 213,779 Foreign 472 31,918 10,625 216,135 11,097 248,053 U.S. Treasury Bonds 327 20,895 153 4,815 480 25,710 917 70,643 22,776 438,304 23,693 508,947 Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows: Three Months Ended 2024 2023 ($000 omitted) Realized gains 102 61 Realized losses (291) (747) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) 7,038 (1,778) Realized losses during the first quarters 2024 and 2023 were primarily related to sales of securities investments. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 7,234 (1,756) Less: Net realized gains (losses) on equity securities sold during the period 7 (664) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) Proceeds from sales of investments in securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Proceeds from sales of debt securities 20,767 7,446 Proceeds from sales of equity securities 107 19,326 Total proceeds from sales of investments in securities 20,874 26,772 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill. The summary of changes in goodwill is as follows: Title Real Estate Solutions Consolidated Total ($000 omitted) Balances at December 31, 2023 707,935 364,194 1,072,129 Purchase accounting adjustments 186 — 186 Balances at March 31, 2024 708,121 364,194 1,072,315 |
Estimated title losses
Estimated title losses | 3 Months Ended |
Mar. 31, 2024 | |
Loss Contingency [Abstract] | |
Estimated title losses | Estimated title losses. A summary of estimated title losses for the three months ended March 31 is as follows: 2024 2023 ($000 omitted) Balances at January 1 528,269 549,448 Provisions: Current year 15,104 17,214 Previous policy years 2,279 460 Total provisions 17,383 17,674 Payments, net of recoveries: Current year (4,546) (3,470) Previous policy years (18,269) (30,001) Total payments, net of recoveries (22,815) (33,471) Effects of changes in foreign currency exchange rates (3,608) (236) Balances at March 31 519,229 533,415 Loss ratios as a percentage of title operating revenues: Current year provisions 3.8 % 3.8 % Total provisions 3.9 % 3.9 % |
Share-based payments
Share-based payments | 3 Months Ended |
Mar. 31, 2024 | |
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 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 | 3 Months Ended |
Mar. 31, 2024 | |
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. 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 were vested and issued and stock options were exercised. In periods of net losses, 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 2024 2023 ($000 omitted, except per share) Numerator: Net income (loss) attributable to Stewart 3,130 (8,190) Denominator (000): Basic average shares outstanding 27,512 27,201 Average number of dilutive shares relating to options 197 — Average number of dilutive shares relating to restricted units 318 — Diluted average shares outstanding 28,027 27,201 Basic earnings (loss) per share attributable to Stewart 0.11 (0.30) Diluted earnings (loss) per share attributable to Stewart 0.11 (0.30) |
Contingent liabilities and comm
Contingent liabilities and commitments | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 March 31, 2024, 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 | 3 Months Ended |
Mar. 31, 2024 | |
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 operations information related to these segments is as follows: Three Months Ended 2024 2023 ($000 omitted) Title segment: Revenues 471,352 461,645 Depreciation and amortization 8,729 8,104 Income (loss) before taxes and noncontrolling interest 10,181 (664) Real estate solutions segment: Revenues 83,041 62,625 Depreciation and amortization 6,275 6,300 Income before taxes 6,732 1,366 Corporate and other segment: Revenues (net realized losses) (78) 35 Depreciation and amortization 380 502 Loss before taxes (9,767) (10,858) Consolidated Stewart: Revenues 554,315 524,305 Depreciation and amortization 15,384 14,906 Income (loss) before taxes and noncontrolling interest 7,146 (10,156) The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Total revenues generated in the United States and all international operations are as follows: Three Months Ended 2024 2023 ($000 omitted) United States 525,022 497,531 International 29,293 26,774 554,315 524,305 |
Other comprehensive (loss) inco
Other comprehensive (loss) income | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Other comprehensive (loss) income | Other comprehensive (loss) income. Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (2,881) (605) (2,276) 8,376 1,759 6,617 Reclassification adjustments for realized gains and losses on investments 190 40 150 116 24 92 (2,691) (565) (2,126) 8,492 1,783 6,709 Foreign currency translation adjustments (5,403) (933) (4,470) 710 112 598 Other comprehensive (loss) income (8,094) (1,498) (6,596) 9,202 1,895 7,307 |
Interim financial statements (P
Interim financial statements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 $519.9 million and $527.4 million at March 31, 2024 and December 31, 2023, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $10.3 million and $10.0 million at March 31, 2024 and December 31, 2023, 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) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenues | The Company's operating revenues, summarized by type, are as follows: Three Months Ended 2024 2023 ($000 omitted) Title insurance premiums: Direct 141,699 130,817 Agency 240,772 249,021 Escrow fees 33,543 32,927 Real estate solutions and abstract fees 97,374 77,160 Other revenues 20,988 29,559 534,376 519,484 |
Investments in debt and equit_2
Investments in debt and equity securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 December 31, 2023 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 18,725 18,499 22,201 22,031 Corporate 240,573 228,668 242,656 231,474 Foreign 326,560 315,661 332,723 323,391 U.S. Treasury Bonds 34,948 34,229 33,714 33,340 620,806 597,057 631,294 610,236 Proceeds from sales of investments in securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Proceeds from sales of debt securities 20,767 7,446 Proceeds from sales of equity securities 107 19,326 Total proceeds from sales of investments in securities 20,874 26,772 |
Schedule of Gross Unrealized Gains and Losses | Gross unrealized gains and losses on investments in debt securities are as follows: March 31, 2024 December 31, 2023 Gains Losses Gains Losses ($000 omitted) Municipal 2 228 — 170 Corporate 515 12,420 764 11,946 Foreign 858 11,757 1,765 11,097 U.S. Treasury Bonds 25 744 106 480 1,400 25,149 2,635 23,693 |
Schedule of Debt Securities According to Contractual Terms | Debt securities as of March 31, 2024 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 85,105 84,346 After one year through five years 341,785 327,413 After five years through ten years 177,015 169,663 After ten years 16,901 15,635 620,806 597,057 |
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 March 31, 2024, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 46 5,628 182 10,619 228 16,247 Corporate 118 14,737 12,302 196,546 12,420 211,283 Foreign 1,079 66,628 10,678 206,074 11,757 272,702 U.S. Treasury Bonds 553 26,207 191 4,886 744 31,093 1,796 113,200 23,353 418,125 25,149 531,325 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, 2023, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 50 13,022 120 8,383 170 21,405 Corporate 68 4,808 11,878 208,971 11,946 213,779 Foreign 472 31,918 10,625 216,135 11,097 248,053 U.S. Treasury Bonds 327 20,895 153 4,815 480 25,710 917 70,643 22,776 438,304 23,693 508,947 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | As of March 31, 2024, 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 — 18,499 18,499 Corporate — 228,668 228,668 Foreign — 315,661 315,661 U.S. Treasury Bonds — 34,229 34,229 Equity securities 76,893 — 76,893 76,893 597,057 673,950 As of December 31, 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 — 22,031 22,031 Corporate — 231,474 231,474 Foreign — 323,391 323,391 U.S. Treasury Bonds — 33,340 33,340 Equity securities 69,700 — 69,700 69,700 610,236 679,936 |
Net realized and unrealized g_2
Net realized and unrealized gains (losses) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 ($000 omitted) Realized gains 102 61 Realized losses (291) (747) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) 7,038 (1,778) |
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 2024 2023 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 7,234 (1,756) Less: Net realized gains (losses) on equity securities sold during the period 7 (664) Net unrealized investment gains (losses) recognized on equity securities still held 7,227 (1,092) |
Schedule of Proceeds from Sale of Investments in Securities | The amortized costs and fair values of investments in debt securities are as follows: March 31, 2024 December 31, 2023 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 18,725 18,499 22,201 22,031 Corporate 240,573 228,668 242,656 231,474 Foreign 326,560 315,661 332,723 323,391 U.S. Treasury Bonds 34,948 34,229 33,714 33,340 620,806 597,057 631,294 610,236 Proceeds from sales of investments in securities are as follows: Three Months Ended 2024 2023 ($000 omitted) Proceeds from sales of debt securities 20,767 7,446 Proceeds from sales of equity securities 107 19,326 Total proceeds from sales of investments in securities 20,874 26,772 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The summary of changes in goodwill is as follows: Title Real Estate Solutions Consolidated Total ($000 omitted) Balances at December 31, 2023 707,935 364,194 1,072,129 Purchase accounting adjustments 186 — 186 Balances at March 31, 2024 708,121 364,194 1,072,315 |
Estimated title losses (Tables)
Estimated title losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Loss Contingency [Abstract] | |
Schedule of Estimated Title Losses | A summary of estimated title losses for the three months ended March 31 is as follows: 2024 2023 ($000 omitted) Balances at January 1 528,269 549,448 Provisions: Current year 15,104 17,214 Previous policy years 2,279 460 Total provisions 17,383 17,674 Payments, net of recoveries: Current year (4,546) (3,470) Previous policy years (18,269) (30,001) Total payments, net of recoveries (22,815) (33,471) Effects of changes in foreign currency exchange rates (3,608) (236) Balances at March 31 519,229 533,415 Loss ratios as a percentage of title operating revenues: Current year provisions 3.8 % 3.8 % Total provisions 3.9 % 3.9 % |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 ($000 omitted, except per share) Numerator: Net income (loss) attributable to Stewart 3,130 (8,190) Denominator (000): Basic average shares outstanding 27,512 27,201 Average number of dilutive shares relating to options 197 — Average number of dilutive shares relating to restricted units 318 — Diluted average shares outstanding 28,027 27,201 Basic earnings (loss) per share attributable to Stewart 0.11 (0.30) Diluted earnings (loss) per share attributable to Stewart 0.11 (0.30) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Selected Statement of Operations Information Related to Segments | Selected statement of operations information related to these segments is as follows: Three Months Ended 2024 2023 ($000 omitted) Title segment: Revenues 471,352 461,645 Depreciation and amortization 8,729 8,104 Income (loss) before taxes and noncontrolling interest 10,181 (664) Real estate solutions segment: Revenues 83,041 62,625 Depreciation and amortization 6,275 6,300 Income before taxes 6,732 1,366 Corporate and other segment: Revenues (net realized losses) (78) 35 Depreciation and amortization 380 502 Loss before taxes (9,767) (10,858) Consolidated Stewart: Revenues 554,315 524,305 Depreciation and amortization 15,384 14,906 Income (loss) before taxes and noncontrolling interest 7,146 (10,156) |
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 2024 2023 ($000 omitted) United States 525,022 497,531 International 29,293 26,774 554,315 524,305 |
Other comprehensive (loss) in_2
Other comprehensive (loss) income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Other Comprehensive Loss | Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (2,881) (605) (2,276) 8,376 1,759 6,617 Reclassification adjustments for realized gains and losses on investments 190 40 150 116 24 92 (2,691) (565) (2,126) 8,492 1,783 6,709 Foreign currency translation adjustments (5,403) (933) (4,470) 710 112 598 Other comprehensive (loss) income (8,094) (1,498) (6,596) 9,202 1,895 7,307 |
Interim financial statements (D
Interim financial statements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Investments restricted for statutory reserve funds | $ 519.9 | $ 527.4 |
Restricted cash and cash equivalent | $ 10.3 | $ 10 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Operating revenues | $ 534,376 | $ 519,484 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 141,699 | 130,817 |
Agency | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 240,772 | 249,021 |
Escrow fees | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 33,543 | 32,927 |
Real estate solutions and abstract fees | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 97,374 | 77,160 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | $ 20,988 | $ 29,559 |
Investments in debt and equit_3
Investments in debt and equity securities - Additional Information (Details) $ in Millions | Mar. 31, 2024 USD ($) investment | Dec. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment gains on equity securities held | $ | $ 18.4 | $ 11.2 |
Number of investments in an unrealized loss position | 332 | |
Number of investments in an unrealized loss positions for more than 12 months | 255 |
Investments in debt and equit_4
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 620,806 | $ 631,294 |
Fair values | 597,057 | 610,236 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 18,725 | 22,201 |
Fair values | 18,499 | 22,031 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 240,573 | 242,656 |
Fair values | 228,668 | 231,474 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 326,560 | 332,723 |
Fair values | 315,661 | 323,391 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 34,948 | 33,714 |
Fair values | $ 34,229 | $ 33,340 |
Investments in debt and equit_5
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 1,400 | $ 2,635 |
Losses | 25,149 | 23,693 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 2 | 0 |
Losses | 228 | 170 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 515 | 764 |
Losses | 12,420 | 11,946 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 858 | 1,765 |
Losses | 11,757 | 11,097 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 25 | 106 |
Losses | $ 744 | $ 480 |
Investments in debt and equit_6
Investments in debt and equity securities - Debt Securities According to Contractual Terms (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized costs | ||
In one year or less | $ 85,105 | |
After one year through five years | 341,785 | |
After five years through ten years | 177,015 | |
After ten years | 16,901 | |
Amortized costs | 620,806 | $ 631,294 |
Fair values | ||
In one year or less | 84,346 | |
After one year through five years | 327,413 | |
After five years through ten years | 169,663 | |
After ten years | 15,635 | |
Fair values | $ 597,057 | $ 610,236 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Losses | ||
Less than 12 months | $ 1,796 | $ 917 |
More than 12 months | 23,353 | 22,776 |
Total | 25,149 | 23,693 |
Fair values | ||
Less than 12 months | 113,200 | 70,643 |
More than 12 months | 418,125 | 438,304 |
Total | 531,325 | 508,947 |
Municipal | ||
Losses | ||
Less than 12 months | 46 | 50 |
More than 12 months | 182 | 120 |
Total | 228 | 170 |
Fair values | ||
Less than 12 months | 5,628 | 13,022 |
More than 12 months | 10,619 | 8,383 |
Total | 16,247 | 21,405 |
Corporate | ||
Losses | ||
Less than 12 months | 118 | 68 |
More than 12 months | 12,302 | 11,878 |
Total | 12,420 | 11,946 |
Fair values | ||
Less than 12 months | 14,737 | 4,808 |
More than 12 months | 196,546 | 208,971 |
Total | 211,283 | 213,779 |
Foreign | ||
Losses | ||
Less than 12 months | 1,079 | 472 |
More than 12 months | 10,678 | 10,625 |
Total | 11,757 | 11,097 |
Fair values | ||
Less than 12 months | 66,628 | 31,918 |
More than 12 months | 206,074 | 216,135 |
Total | 272,702 | 248,053 |
U.S. Treasury Bonds | ||
Losses | ||
Less than 12 months | 553 | 327 |
More than 12 months | 191 | 153 |
Total | 744 | 480 |
Fair values | ||
Less than 12 months | 26,207 | 20,895 |
More than 12 months | 4,886 | 4,815 |
Total | $ 31,093 | $ 25,710 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | $ 597,057 | $ 610,236 |
Equity securities | 76,893 | 69,700 |
Investments in debt and equity securities | 673,950 | 679,936 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 76,893 | 69,700 |
Investments in debt and equity securities | 76,893 | 69,700 |
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 | 597,057 | 610,236 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 18,499 | 22,031 |
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: | 18,499 | 22,031 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 228,668 | 231,474 |
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: | 228,668 | 231,474 |
Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 315,661 | 323,391 |
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: | 315,661 | 323,391 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities: | 34,229 | 33,340 |
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: | $ 34,229 | $ 33,340 |
Net realized and unrealized g_3
Net realized and unrealized gains (losses) - Gross Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized gains | $ 102 | $ 61 |
Realized losses | (291) | (747) |
Net unrealized investment gains (losses) recognized on equity securities still held | 7,227 | (1,092) |
Investment and other gains (losses) – net | $ 7,038 | $ (1,778) |
Net realized and unrealized g_4
Net realized and unrealized gains (losses) - Investment Gains and Losses recognized related to Investments in Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net investment gains (losses) recognized on equity securities during the period | $ 7,234 | $ (1,756) |
Less: Net realized gains (losses) on equity securities sold during the period | 7 | (664) |
Net unrealized investment gains (losses) recognized on equity securities still held | $ 7,227 | $ (1,092) |
Net realized and unrealized g_5
Net realized and unrealized gains (losses) - Proceeds from the Sale of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of debt securities | $ 20,767 | $ 7,446 |
Proceeds from sales of equity securities | 107 | 19,326 |
Total proceeds from sales of investments in securities | $ 20,874 | $ 26,772 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balances | $ 1,072,129 |
Purchase accounting adjustments | 186 |
Ending balance | 1,072,315 |
Title | |
Goodwill [Roll Forward] | |
Beginning balances | 707,935 |
Purchase accounting adjustments | 186 |
Ending balance | 708,121 |
Real Estate Solutions | |
Goodwill [Roll Forward] | |
Beginning balances | 364,194 |
Purchase accounting adjustments | 0 |
Ending balance | $ 364,194 |
Estimated title losses (Details
Estimated title losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balances at beginning of period | $ 528,269 | $ 549,448 |
Provisions: | ||
Current year | 15,104 | 17,214 |
Previous policy years | 2,279 | 460 |
Total provisions | 17,383 | 17,674 |
Payments, net of recoveries: | ||
Current year | (4,546) | (3,470) |
Previous policy years | (18,269) | (30,001) |
Total payments, net of recoveries | (22,815) | (33,471) |
Effects of changes in foreign currency exchange rates | (3,608) | (236) |
Balances at end of period | $ 519,229 | $ 533,415 |
Loss ratios as a percentage of title operating revenues: | ||
Current year provisions | 3.80% | 3.80% |
Total provisions | 3.90% | 3.90% |
Share-based payments (Details)
Share-based payments (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair value at grant date | $ 13.7 | $ 11.4 |
Granted (in shares) | 223,000 | 278,000 |
Average grant price (in usd per share) | $ 61.44 | $ 40.93 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) attributable to Stewart | $ 3,130 | $ (8,190) |
Denominator (000): | ||
Basic average shares outstanding (in shares) | 27,512 | 27,201 |
Diluted average shares outstanding (in shares) | 28,027 | 27,201 |
Basic earnings (loss) per share attributable to Stewart (in usd per share) | $ 0.11 | $ (0.30) |
Diluted earnings (loss) per share attributable to Stewart (in usd per share) | $ 0.11 | $ (0.30) |
Stock options | ||
Denominator (000): | ||
Average number of dilutive shares relating to options and restricted units (in shares) | 197 | 0 |
Restricted stock and restricted stock units | ||
Denominator (000): | ||
Average number of dilutive shares relating to options and restricted units (in shares) | 318 | 0 |
Contingent liabilities and co_2
Contingent liabilities and commitments (Details) $ in Millions | Mar. 31, 2024 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) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment information - Selected
Segment information - Selected Statement of Operations Information Related to Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues (net realized losses) | $ 554,315 | $ 524,305 |
Depreciation and amortization | 15,384 | 14,906 |
Income (loss) before taxes and noncontrolling interest | 7,146 | (10,156) |
Title segment: | ||
Segment Reporting Information [Line Items] | ||
Revenues (net realized losses) | 471,352 | 461,645 |
Depreciation and amortization | 8,729 | 8,104 |
Income (loss) before taxes and noncontrolling interest | 10,181 | (664) |
Real estate solutions segment: | ||
Segment Reporting Information [Line Items] | ||
Revenues (net realized losses) | 83,041 | 62,625 |
Depreciation and amortization | 6,275 | 6,300 |
Income (loss) before taxes and noncontrolling interest | 6,732 | 1,366 |
Corporate and other segment: | ||
Segment Reporting Information [Line Items] | ||
Revenues (net realized losses) | (78) | 35 |
Depreciation and amortization | 380 | 502 |
Income (loss) before taxes and noncontrolling interest | $ (9,767) | $ (10,858) |
Segment information - Revenues
Segment information - Revenues Generated in Domestic and all International Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 554,315 | $ 524,305 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 525,022 | 497,531 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 29,293 | $ 26,774 |
Other comprehensive (loss) in_3
Other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Before-Tax Amount | ||
Other comprehensive (loss) income | $ (8,094) | $ 9,202 |
Tax Expense (Benefit) | ||
Other comprehensive (loss) income | (1,498) | 1,895 |
Net-of-Tax Amount | ||
Other comprehensive (loss) income, net of taxes: | (6,596) | 7,307 |
Net unrealized gains and losses on investments | ||
Before-Tax Amount | ||
Change in net unrealized gains and losses on investments | (2,881) | 8,376 |
Reclassification adjustments for realized gains and losses on investments | 190 | 116 |
Other comprehensive (loss) income | (2,691) | 8,492 |
Tax Expense (Benefit) | ||
Change in net unrealized gains and losses on investments | (605) | 1,759 |
Reclassification adjustments for realized gains and losses on investments | 40 | 24 |
Other comprehensive (loss) income | (565) | 1,783 |
Net-of-Tax Amount | ||
Change in net unrealized gains and losses on investments | (2,276) | 6,617 |
Reclassification adjustments for realized gains and losses on investments | 150 | 92 |
Other comprehensive (loss) income, net of taxes: | (2,126) | 6,709 |
Foreign currency translation adjustments | ||
Before-Tax Amount | ||
Other comprehensive (loss) income | (5,403) | 710 |
Tax Expense (Benefit) | ||
Other comprehensive (loss) income | (933) | 112 |
Net-of-Tax Amount | ||
Other comprehensive (loss) income, net of taxes: | $ (4,470) | $ 598 |