Stewart Information Services (STC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

NEWS	from:
	STEWART INFORMATION SERVICES CORPORATION
	P.O. Box 2029, Houston, Texas 77252-2029
	www.stewart.com
	Contact:	Ted C. Jones
		Director - Investor Relations
		(713) 625-8014

FOR   RELEASE  AT  6AM CDT

Stewart Reports Earnings for Third Quarter 2005

HOUSTON, October 27, 2005 -- Stewart Information Services Corporation (NYSE-STC) reported net earnings of $31.8 million, or $1.74 per diluted share, for the three months ended September 30, 2005, versus net earnings of $21.1 million, or $1.16 per diluted share, for the third quarter of 2004. Revenues in the third quarter of 2005 increased 21 percent to $639.4 million from $529.7 million for the same period last year.

Total revenues for the first nine months of 2005 were $1.8 billion, up 15 percent from the same period a year ago. Earnings for the first nine months totaled $79.7 million, or $4.37 per diluted share, versus $62.2 million, or $3.42 per diluted share, for the first nine months of 2004.

Title orders in the third quarter of 2005 were 16 percent greater than the same quarter a year ago. Orders in the month of September were 12 percent greater than the same month last year.

Revenues increased in the third quarter of 2005 over the same period in 2004 due to continuing favorable long-term interest rates, which positively impacted residential and commercial closings. However, long-term interest rates for the month of September 2005 were slightly higher than in September 2004.  Rates rose slightly in early October 2005. Acquisitions also contributed to the increase in revenues. The company’s pretax profit margin increased in the third quarter of 2005 compared to the same quarter a year ago. The increase was primarily due to a higher mix of revenues from direct operations compared to lower margin agency business.  This was offset somewhat by ongoing technology costs, which the company continues to believe will provide for the potential growth in future profits, productivity and market share.

“We are systematically delivering on our strategic plan to increase the effectiveness of our associates, improve customer satisfaction and enhance operating efficiencies – all focused on increasing revenues, margins and shareholder value. Our offices are undergoing a complete process workflow review to apply new technology to increase productivity and reduce costs,” said Stewart Morris, Jr., president and co-chief executive officer. “Book value has increased 11 percent since the end of 2004 to $42.58 per share,” added Morris. 

New operations in the quarter included the launching of Stewart Insurance and Financial Services in California.   Recently approved by the California Department of Insurance, this group represents a comprehensive portfolio of property and casualty insurance carriers, including Allied Insurance, The Hartford and Travelers.

Stewart Default Solutions is now offering BackInTheBlack^® software for mortgage default and foreclosure services, meeting needs in a key segment of the market that should grow as interest rates rise.  This service includes loss mitigation on non-performing mortgage loans, as well as actual foreclosure and remarketing of the pledged assets.

“Stewart is again serving as the exclusive program sponsor of the Technology Learning Center (TLC) presented at the National Association of Realtors^® (NAR) Conference in San Francisco ongoing through October 31,” said Malcolm S. Morris, chairman and co-CEO.  “This will be the sixth consecutive year that we will have sponsored and managed the TLC.  More than 8,000 Realtors will be introduced to new technology enabling them to provide the best service to their buyers and sellers and increase their individual productivity.” 

Stewart continues to make strategic acquisitions contributing to its future growth.  The previously announced acquisition of Monroe Title Insurance Corporation of Rochester, New York, is awaiting Monroe shareholder consent and necessary regulatory approval. 

Effective September 1, 2005 and retroactive to the start of the year, the Texas Legislature reduced statutory reserve requirements for Stewart’s major title insurer.  This released for other uses a portion of low-yielding statutory reserve investments in the amount of approximately $18.3 million, after taxes, in the third quarter of 2005.

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 8,000 policy-issuing offices and agencies in the United States and a number of international markets.  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 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.

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Stewart Information Services Corporation

	Three months ended September 30
	2005		2004
Revenues	$	639,442,000	$	529,663,000
Net earnings	$	31,771,000	$	21,138,000
Average shares – diluted		18,259,000		18,195,000
Earnings per share:
Basic	$	1.75	$	1.17
Diluted	$	1.74	$	1.16

	Nine months ended September 30
	2005		2004
Revenues	$	1,801,483,000	$	1,560,011,000
Net earnings	$	79,664,000	$	62,239,000
Average shares – diluted		18,236,000		18,190,000
Earnings per share:
Basic	$	4.39	$	3.44
Diluted	$	4.37	$	3.42

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

	Three months ended Sept 30						Nine months ended Sept 30
	2005			2004			2005			2004
Revenues
Title insurance:
Direct operations		287,607			224,814			779,422			648,913
Agency operations		320,545			282,988			935,730			841,470
Real estate information services		22,760			16,001			61,075			51,340
Investment income		8,016			5,920			21,473			16,242
Investment and other gains (losses) – net		514			(60	)		3,783			2,046
		639,442			529,663			1,801,483			1,560,011
Expenses
Amounts retained by agencies		259,557			229,525			762,781			684,980
Employee costs		183,863			149,542			513,353			436,345
Other operating expenses		97,963			79,600			270,927			235,328
Title losses and related claims		31,434			25,194			83,778			70,281
Depreciation and amortization		8,592			7,723			24,642			22,981
Interest		883			309			2,278			799
Minority interests		5,499			3,707			14,019			9,715
		587,791			495,600			1,671,778			1,460,429
Earnings before taxes		51,651			34,063			129,705			99,582
Income taxes		19,880			12,925			50,041			37,343
Net earnings		31,771			21,138			79,664			62,239
Average number of diluted shares outstanding (000)		18,259			18,195			18,236			18,190
Earnings per share - diluted		1.74			1.16			4.37			3.42
Segment information:
Title revenues		616,682			513,662			1,740,408			1,508,671
Title pretax earnings		46,579			34,093			120,652			98,504
REI revenues		22,760			16,001			61,075			51,340
REI pretax earnings (loss)		5,072			(30	)		9,053			1,078
Selected financial information:
Cash flow from operations		45,903			58,887			133,272			143,697
Title loss payments – net of recoveries		26,336			13,237			59,777			46,216
Changes in other comprehensive earnings (losses - net of taxes)		(4,099	)		5,880			(5,244	)		(2,493	)
Number of title orders opened (000):
July		76.9			69.2
August		86.0			68.7
September		74.8			66.7
Quarter		237.7			204.6

	Sept 30 2005		Dec 31 2004
Stockholders’ equity		772,487		697,313
Number of shares outstanding		18,142		18,121
Book value per share		42.58		38.48

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

	Sept 30 2005			Dec 31 2004
Assets
Cash and cash equivalents		131,584			121,383
Short-term investments		219,922			181,195
Investments – statutory reserve funds		427,920			401,814
Investments – other		81,272			68,793
Receivables		86,097			80,277
Property and equipment		84,912			83,391
Title plants		57,130			52,679
Goodwill		151,909			124,636
Intangible assets		15,527			16,988
Other assets		73,110			62,197
		1,329,383			1,193,353
Liabilities
Notes payable		78,938			49,930
Accounts payable and accrued liabilities		111,106			101,544
Estimated title losses		324,766			300,749
Deferred income taxes		24,643			29,335
Minority interests		17,443			14,482
		556,896			496,040
Contingent liabilities and commitments
Stockholders’ equity
Common and Class B Common Stock and additional paid-in capital		144,889			144,135
Retained earnings		622,959			543,295
Accumulated other comprehensive earnings		8,544			13,788
Treasury stock		(3,905	)		(3,905	)
Total stockholders’ equity		772,487			697,313
		1,329,383			1,193,353

October 27, 2005