Stewart Information Services (STC) 8-K Stewart Reports Earnings for the Year 2004

Exhibit 99.1

Stewart Reports Earnings for the Year 2004

          HOUSTON, Feb. 16 /PRNewswire-FirstCall/ -- Stewart Information Services Corporation (NYSE: STC) today reported results for the fourth quarter and year end 2004.  Net earnings for the year 2004 were $82.5 million, or $4.53 per diluted share, compared to net earnings of $123.8 million, or $6.88 per diluted share, for 2003.  Revenues for the year 2004 were $2.2 billion, a decrease of 2.5 percent compared to 2003.

          Stewart earned $20.3 million, or $1.11 per diluted share, for the fourth quarter of 2004, compared to $20.8 million, or $1.15 per diluted share, for the fourth quarter of 2003.  Revenues for the fourth quarter increased by 2.0 percent over the fourth quarter of 2003.

          Book value per share increased 11.6 percent, from $34.47 at the end of 2003 to $38.48 at December 31, 2004.  “As in 2003, Stewart paid a $0.46 cents per share annual cash dividend in December of 2004,” said Malcolm S. Morris, chairman and co-chief executive officer.  “Our story is clear -- pay reasonable dividends to our shareholders, increase book value per share and execute accretive acquisitions.  Achieving this balance in an off-peak year for our business is what we work hard to deliver to our shareholders.  To accomplish this, we are expanding internationally, growing our higher-margin commercial business, capturing a significant share of emerging market growth activity and providing a bundle of services, in addition to title insurance, that enhances the transaction process.”

          “We are dedicated to enhancing shareholder value and are focusing on the long-run increase in margins and revenues by attracting, retaining and training the best group of associates in the industry,” said Stewart Morris, Jr., president and co-chief executive officer.  “We have a seasoned management team that is changing the way we do business.  We are providing our staff the technology tools to continue delivering magnificent service to our customers.

          “Utilizing our Web-based transaction management system, SureClose(R), and our production systems accessible through TitleLogix(R), our Application Service Provider, proved their mettle this past year,” added Morris.  “This technology enabled our Florida offices to continue service to their customers despite the devastation of multiple hurricanes.  As the systems become more widely used and incorporate electronic signatures and electronic courthouse filings, they will dramatically improve the way we do our daily business.  At the same time, SureClose makes essential data available to consumers and real estate professionals 24/7, from electronic order entry to electronic delivery of our products and services.  Our focus is on the future, and we have invested in recent years to provide for future productivity and profitability.”

           Stewart’s incoming orders in the fourth quarter of 2004 were up 11.6 percent from the same quarter a year ago.  Orders in the month of December 2004 were up 11.8 percent from December 2003.  Nationally, industry-wide refinance activity made up 69 percent of all national residential lending activity in 2003 versus 51 percent in 2004 (preliminary) and is forecast at slightly less than 40 percent in 2005.  Industry forecasts call for a modest interest rate increase in 2005, implying a further contraction in refi business.

          Total one-to-four family residential lending nationwide declined from $3.8 trillion in 2003 to $2.8 trillion in 2004, a decline of 27 percent.  The reduction resulted from a gradual shrinking of refinance activity.  Operating profit margins decreased year-over-year due primarily to the fixed nature of most of the company’s operating costs.  Margins were also reduced due to the company’s investments in growth, technology and new services.  Excluding title agency retentions, employee costs are the largest component of the company’s operating costs.  Consistent with Stewart’s strategy of balancing employee costs with its business volume over the long term, employee costs and order counts are continually monitored.  The company works to balance staffing with customer service needs using scalable technology to allow for continued growth.”

          Stewart experienced increased costs in 2004 for the rollout of SureClose and its effective integration into company and customer use.  SureClose is now installed at more than 725 company locations and independent title agencies and has more than 525,000 active files in process on the system.

          Stewart Information Services Corporation is a technology driven, strategically competitive, real estate information and transaction management company providing title insurance and related information services through more than 7,800 policy-issuing offices and agencies in the United States and several international markets.  Stewart delivers via e-commerce the services required for settlement by the real estate and mortgage industries.  Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, document preparation, background checks and expertise in tax-deferred exchanges.  More information can be found at http://www.stewart.com.

          This press release may contain forward-looking statements, which include all statements other than statements of historical facts.  Forward-looking statements are not guarantees of performance and no assurance can be given that Stewart’s expectations will be achieved.  In particular, historical order counts do not necessarily indicate future revenues because Stewart cannot predict the number of orders that will result in closings.

Stewart Information Services Corporation

	Three months ended December 31
	2004		2003
Revenues	$	622,848,000	$	610,643,000
Net earnings	$	20,279,000	$	20,782,000
Average shares - diluted		18,224,000		18,095,000
Earnings per share:
Basic	$	1.12	$	1.16
Diluted	$	1.11	$	1.15

	Year ended December 31
	2004		2003
Revenues	$	2,182,859,000	$	2,239,030,000
Net earnings	$	82,518,000	$	123,755,000
Average shares - diluted		18,199,000		17,980,000
Earnings per share:
Basic	$	4.56	$	6.93
Diluted	$	4.53	$	6.88

STEWART INFORMATION SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of dollars, except per share amounts)

	Three months ended December 31					Year ended December 31
	2004 (A)		2003 (A)			2004		2003
Revenues
Title insurance:
Direct operations		231,784		195,516			880,697		888,454
Agency operations		366,172		391,255			1,207,642		1,249,800
Real estate information services		17,567		17,099			68,907		78,666
Investment income		6,272		5,220			22,514		19,800
Investment gains - net		1,053		1,553			3,099		2,310
		622,848		610,643			2,182,859		2,239,030
Expenses
Amounts retained by agencies		302,044		320,820			987,024		1,024,282
Employee costs		154,747		137,114			591,092		573,486
Other operating expenses		89,569		81,335			324,897		307,509
Title losses and related claims		30,560		28,266			100,841		94,827
Depreciation and amortization		8,044		6,741			31,025		25,240
Interest		449		158			1,248		721
Minority interests		3,803		2,225			13,518		13,462
		589,216		576,659			2,049,645		2,039,527
Earnings before taxes		33,632		33,984			133,214		199,503
Income taxes		13,353		13,202			50,696		75,748
Net earnings		20,279		20,782			82,518		123,755
Average number of diluted shares outstanding (000)		18,224		18,095			18,199		17,980
Earnings per share - diluted		1.11		1.15			4.53		6.88
Segment information:
Title revenues		605,281		593,544			2,113,952		2,160,364
Title pretax earnings		32,897		34,108			130,024		187,435
REI revenues		17,567		17,099			68,907		78,666
REI pretax earnings (loss)(A)		735		(124	)		3,190		12,068

	Three months ended December 31				Year ended December 31
	2004 (A)		2003 (A)		2004			2003
Selected supplemental information (000):
Cash flow from operations		26,713		35,556		170,410			190,063
Title loss payments - net of recoveries		22,192		18,656		68,408			57,996
Other comprehensive earnings (loss) - net of taxes		1,262		1,349		(1,231	)		5,675
Average number of basic shares		18,114		17,975		18,097			17,862
Number of title orders opened		191.1		171.4		839.9			986.9

	Dec 31 2004		Dec 31 2003
Stockholders’ equity		697,313		621,389
Number of shares outstanding		18,121		18,026
Book value per share		38.48		34.47

(A) The fourth quarters of 2004 and 2003 include expenses of $4.4 million and $2.4 million, respectively, relating to litigation, which reduced net earnings by $2.9 million and $1.6 million, or $.16 and $.09 per share, respectively.  The fourth quarter of 2003 also includes $1.1 million relating to a loss on an REI mapping/automation project that reduced 2003 net earnings by $0.7 million, or $.04 per share.

STEWART INFORMATION SERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS (condensed)
(In thousands of dollars)

	December 31 2004			December 31 2003
Assets
Cash and cash equivalents		121,383			114,202
Short-term investments		181,195			153,322
Investments - statutory reserve funds		401,814			375,421
Investments - other		68,793			59,035
Receivables		82,301			79,025
Property and equipment		83,391			74,174
Title plants		52,679			43,216
Goodwill		124,636			79,084
Intangible assets		16,988			3,783
Other assets		60,173			50,605
		1,193,353			1,031,867
Liabilities
Notes payable		49,930			24,583
Accounts payable and accrued liabilities		101,544			82,147
Estimated title losses		300,749			268,089
Deferred income taxes		29,335			22,440
Minority interests		14,482			13,219
		496,040			410,478
Contingent liabilities and commitments
Stockholders’ equity
Common and Class B Common Stock and additional paid-in capital		144,135			141,168
Retained earnings		543,295			469,107
Accumulated other comprehensive earnings		13,788			15,019
Treasury stock		(3,905	)		(3,905	)
Total stockholders’ equity		697,313			621,389
		1,193,353			1,031,867

February 16, 2005

SOURCE  Stewart Information Services Corporation
          -0-                                                  02/16/2005
          /CONTACT:  Ted C. Jones, Director - Investor Relations of Stewart Information Services Corporation, +1-713-625-8014/
          /Web site:  http://www.stewart.com /