STC - Earnings call transcript Q3 2019 | Stewart Information Services Corporation

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Operator

Good day, and welcome to the Stewart Information Services' Third Quarter 2019 Earnings Conference Call and Webcast. Today's call is being recorded. At this time, all participants have been placed on listen-only mode and the floor will be open for your questions following the presentation. I would like now to turn the call over to Nat Otis. Please go ahead.

Nat Otis

morning. Good joining Stewart's for earnings quarter today call. conference us you third for XXXX Thank

discussing were results the be will We that close. released after yesterday

are Hisey. Because participants access that results of the on Joining and of for not forward-looking this based of with go factors CEO, statements statements are I forward-looking link risk SEC. such Form conference projected. statements the To and may of will in published risks release future detailed call call. the David contain are and remind materially the to The to to me sections number the subject please this company's from expectation to listen include but our and the information, press fact involve operating website those Fred stewart.com the statements a conference uncertainties. forward-looking results online evening that statement today an CFO, actual regarding financial Eppinger are are not may filings factors, yesterday uncertainties other risk in XX-K other and and and and limited differ risks other

Now let Fred. over me call the to turn

Frederick H. Eppinger

as today. everyone of wanted few in you thank morning joining will CEO briefly touch that for to financials after minutes Good through weeks go Stewart. to thoughts the a us six before and But a minute. David I take my on

deliver distraction merger quarter a First though from third helping pending change. around I of would speculation the leadership and strong for thank like during associates the a to results our our period significant

cases results quarter that significant focus a be period expect will strong today from Stewart. year, means the last the deliver committed and many Stewart resilience customers over have independent what needs and the of Stewart. in our Our be. the and the and people remained wants in confirms our service to focused I This market uncertainty this believe our a great

a year been that -- Amidst of and sale, XXX merger this remind past history service a investment years. quality ultimately the of remind did of and multiple But in remain distraction this business year old over loyal most employees everyone proud customers briefly Stewart's ultimately with is campaigns, has sustained half strong our not brand distracted that backdrop consummated and company a activist and our oriented process call financial service. period uneven a for growth. a want I the several was to customer that limited performance, of a delivered lack of period of also

there to and distractions us our build is believe opportunity in industry. With to and a change positioned these tremendous I compete behind this company a win consistently

spoken beyond future substantial out point performance As the our is deliver cash grow are of and which the just our this start a the I people uncertainty with. the about we Well, period would company relationship I've few asset of oriented and strength strength never moves has a is like service critical strengths a company's firmer important financial uneven to a in positioned XXX building capital and the significant to generate premium a company next positioned strong class balance new years. for on ability growth, solid flows statutory ratings, to and foundation. been a that focus, to world on new sheet With business, we well

turnaround. that last are performance traditional good several not years the over is with a Stewart is our not we While the satisfied news

we be also started. to That not want but That to of wait transformation to place we elements of the positive have we place noted have and take our said get support many in this time we'll not path be. will also we is a some journey again in on As start in effort. things foundation overnight a growth where completed many and will to profitable to us fact get

our our will now competitive and are strengthen winning on improve functions day. the opportunities ability position a all more and done plan understand We performance. Clearly to of our sustained to capabilities all better we focused businesses, effectively XXX deliver examining every day we will calling company's get what and compete to

been and Over meet my has visit of the can last with be as few improve number of six competitive and our weeks able and to XXXX a In associates these a first number done what on grown performance. I've weeks our confidence our to over position of customers. markets CEO our

can these given our detail we Over reinvigorated lay financial brand, days we out of in our in at am the XXX Stewart how confident first of quality compete Stewart win. and the strength. will I the greater will people, unlock potential remainder and our

a Going people, and shareholders. to David in way drives spurs utilize our with performance that's the be goals forward value customers, will of -- and growth the to quarter. now providing partners, the financial assets improved you overall performance our on these update improved key will

David Hisey

everyone. income XXXX. share morning -- last adjusted diluted XXX of revenues XXX increased to of has while from share of to basis adjusted reported on share $X.XX EPS million, per $X.XX from a net and per million the income third Stewart quarter revenues overall Thank basis $X.XX net improved XX year's an adjusted from million per XX quarter from or XX On million, you and adjusted an higher good per Fred share. million

as a investment calculation earnings and As losses. presented termination gains EPS other to in impairment, the and equity expenses, XX adjustments non-operating merger the method release FNF which is for Appendix measure includes diluted well to non-GAAP as adjusted merger million our A related

strong due direct business solid primarily due results. Our total third were lower a and to residential, commercial, increased last XXXX in up quarter lending revenues interest the market quarter by influenced rates X% from and international housing year's to

or XX% segment pre-tax income generated margin. of million XX a title The pre-tax

equity impairment per as investment, million. the the of XX% mark-to-market size. result a as increased lending. increased Excluding to XX% commercial business title fee direct our XX year's were file XXXX XX% losses to the last income as revenues transaction revenues to of up million would securities income improved segments Direct on pre-tax a have gains relating $XX,XXX of X% to respect increased equity result and an residential method third charge With the pre-tax from XX quarter investments increased

Our purchase of of per residential change result $XXXX in we higher mix ratio orders. to which primarily refinancing to in business X% decreased as file a fee had a

international respectively. XXXX increased XXXX the revenues and Compared quarter X orders million Total operations. in and or increased and on our XX% Canada quarter from closed XX% third the grew XX% UK third volumes to open

Regarding percent revenues points title as improved XX to year's X.X% a quarter. compared of losses title last to X.X% from basis losses

to vary end quarter-to-quarter. XXXX they reserves at XXX were balance our sheet [ph] can At that expect remain policy merge million. title X.X% revenues total of losses approximately quarter title the year We our and loss for

income Looking year we compared of million at third the quarter. prices quarter a XXXX segment XX XX reported segment a [ph] pre-tax for the in pre-tax prior loss with in corporate million of

corporate termination by quarter in segment's third reductions Excluding increased the was year with and segments net results advisory by the X several X from The and merger orders million and prior operations expenses expenses in related respectively segments party year revenues operating X X expenses loss expenses. including the the the merger million would fee merger million quarter parent XXXX of quarter. company in been approximately have customers. FNF for million business impacted pre-tax XXXX the by valuation and as higher primarily search third and prior caused declined The the to in million versus XX attributable significant quarter our

XXXX expense XX XX compensation in XXXX. increased expenses With on X% the incentive driven a quarter This remained costs. third revenues. revenues. fee XXXX as third the quarter fees was expenses basis, operating because XXXX offset by from principally respect in of to lower salaries X% outside lower They to a primarily third costs Other search of the of up operating title operating were million the partially million higher average approximately employee offset consistent increased XX% quarter partially for expenses consolidated revenues higher decrease to related third by lower result commercial compared by professional primarily employee declined to quarter with of

excluding expenses of operating merger FNF revenues a expenses other remained total As XX%. approximately percentage and operating

Lastly million cash had to end deducting after since the XXX reserves. on XXXX, equity total stockholders quarter or statutory highest and other attributed liquid million investments XXX we required At was September Stewart XX, XXX million approximately in at matters XXXX.

We available approximately under million XXX also our had credit facility.

quarter lower payments Our net year was financial increase on approximately of quarter debt ratio and to strong termination fee value of to higher included per a quarter. capital the operations condition Net at the book and accounts income during from XX primarily remains prior payable million approximately million, of during cash provided due XX% $XX. quarter-end a very XXX with merger the an share the by which

we XX% research development to rate rate for due The third for had prior was third the the quarter The to and year credits. was effective XXXX in quarter to quarter due compared XX.X% benefits the XXXX. increased the tax tax

I call operator will now take back turn over to the questions. to the

Operator

[Operator Instructions].

George KBW. We first our will question with Please go ahead. Bose take from

George Bose

the operating the a Hey revenues is strength and as guys expense a we strong, stronger strong -- modestly. are is question, driver was up just This the Bose. had the very of big margin the Actually in we first the morning. expected, market quarter-over-quarter seen definitely good it than clearly is while. even but have up Is

on just quarter? the -- can of can you provide of this anything So sort color you the margin strength

David Hisey

sort on is And the pretty I of much Bose then revenues across and it we saw mean of hi get businesses David. that Yeah, what mean expenses you some think covered and as leverage see right, the certainly so I you margin. quarter. this the fixed structure it the I the benefit that's go we revenue much pretty think up cost from it strong activities was I follow.

George Bose

too of it a margin, sort that? And I we when mean discuss targets talk for normalized can sort is to about early of

David Hisey

a on margins. premature Yeah, I think back I the initiatives day just the like going think of sort of comments longer-term it's probably the XXX Fred's that on little to and sort

I we to and back think be get that. that need work on through

Frederick H. Eppinger

lagged about think our see do, situated company it is what to kind areas of to market, the just lot and profile. growth to be reasons the and operating ourselves Obviously approach which possible little platform of in so. and be a I so winner we've to we is on differently means very focus think industry to focused will couple for have kind But the a And improve the for and margins need we positioning industry. a got a where how both of that's we our better of right you frankly

George Bose

thanks. great, Okay,

going Okay, just there how one declining you in that? of agent the you just more terms address for me, been are shared that's can side obviously year-over-year on to any the color

Frederick H. Eppinger

in company So most want the leading is too agents going to the segment affected concentration merger obviously, the the industry. don't by that's because to be with much be going agency the

of their we implications part shelf So away family. people want to from space in Fidelity us of shifted merger obviously didn't had where this the be they announced because

to so back. that's win And we have what

to the very want we obvious And thing can we is and the that we've get I with easy and win what and try it done balance have given it. immediately that's think focus is to transaction. is think But again something I be that anticipate agents something directive do it those back it's I very folks so on that to And to mean their business. on to business. do, just is clear me

enhance and focusing I agents will as investments think and on the we technology that that to we side got start I we're to immediately that's hadn’t I are to that the made some well. after going beyond have going so that on think help proposition value for while we a So that think

that look So grow the in for to segment future we forward.

George Bose

you. thank great, Okay,

Operator

Please Campbell Inc. from Stephens, comes John question next go Our with ahead.

John Campbell

what bit. maybe answer question the that that you working kind hoping business Hey a could little early prepared of and the so a good but in on and this you Congrats the early remarks quarter forward Fred shortfall a probably and then probably out just the Yeah, you lay maybe it's could you up provide much reinvestment last a you $XX you and to looking guys additional breakout million last that in know looking what you insight there I fee the I great think out you're touch reinvestment too and -- to is if to with flesh going total how to then if needed last lack to it's over do any can to on in extent you. guys, morning. few forward, size mentioned of mentioned maybe have? just with maybe also welcome, I'm way so your can years

Frederick H. Eppinger

probably managed with company really mean or multiple in focused like relatively done if a well. have right imagine at and if you I'm of hunkered very years last and for success so have itself impressed years service over you our few been now at could this of Yeah, look I of kind we've down lot has things folks internally etc. we what looked kind restructuring as the as ways

our you creation have look were most value we thought So at our if if businesses imagine business can and as would you there it. that you did some invested things long-term of in about you

so And business to area every every in direct there that places want some our and almost investor. are I

going won't just bunch that doing we were a investments. top of and we is that. stop There's on reallocate Now other lay do what we're additional things to doing

some focused in overwhelming on things. it's say future would that for of and I not here to but us invest important the get it's So kind

say that's some to important to I that thing going for us other holes. is be also would the fill

the can are not and we to you but that hire where lost skills years sure in areas right and we and three those competitive sets need areas. over Again last we some couple skill pockets. some the holes we've make to imagine and critical make fill As overwhelming capabilities sure

We after is can we're were But it is two on results we that see pretty I And in going kind I no, the sure I something some compete bit of or at tremendous what but resilience will over it be quarter quarters together the straightforward, into focused So last pretty to is kind time in going share. right, market coming and years company am the little to kind we it last a essentially done if again exactly it not and that's next is look we've three of still to a but are, we we what about particular, positive when doing. pretty you the little where some And of is to were where And take overwhelming businesses in the over what areas. it's next is of quarter could do here the stop. clearer you sure. just few accelerate lot but relative we're we upside the of the on am is quickly and some some make we that's better. were from going a investment money, holding our in shrinking so obvious it

John Campbell

the Got makes good commercial growth result sense was it, that guys. that for a on then and you

per on saw geographical deals versus and out of refi I out probably any think I'm you caught over far a guys color and can XX% growth you any so guessing the few larger maybe provide the in mix orders color purchase of quarter fee file, you just a in of as the that little kind additional lumpiness then impacts? as the just kind if

David Hisey

across course the just focus business think of of Yeah, last been commercial larger sort customers the a trend the of the we've I seeing on year. on sort had country. the for it's has the continued that That's

think significant off don't I one were any So deals. there

sort transactions across I was just bigger think the of franchise. it a

of In we're purchase I of the have terms -- when our is what that refi mean the against think order seeing seeing information. I mix there competition market selves sort we

of And trends the in well. would I the you're market sort expect as us to impact so seeing

housing of sort sort look expectation at bit housing tapering I of into continued and that be as look maybe mean go a would of economists well. is all as at off year that market the our we next stuff. they have Sort strong refi this

John Campbell

helpful looks orders getting of like far tack what ups open as into the and and caught side pipeline to just on that, commercial the XQ? it's as kind Okay, onto any

Frederick H. Eppinger

think is it's have but going as mean mean that close we need think you guys timing know just I and strong deals -- the I I those still of some this on the them. quarter, in kinds pipeline to but matters

John Campbell

helpful. Thanks that's Okay, guys.

Operator

go Dowling Partners. ahead. The & Dunn next with Geoffrey from will Please question come

Geoffrey Dunn

it or Thanks, equally top before you on for but Stewart seen and on good your versa, the think how for about operations over than of vision you've opportunity an weeks more obviously this you six opportunity, your vice that? six the the morning. is top expense based weeks acknowledging the do what experience job expense line the first opportunities as is line and view Fred

Frederick H. Eppinger

our if over last Yeah, the look over decade. decade too, I mean our lagged years, lost growth margins the at obviously share performance you say last the XX right industry our but did we

and above so you'll and an The I you expansion. I how to get is very profitable. is most as would And change see margin well tell think is we're would of it leverage, going going that be need profile that that expansion there so doing, dollar industry going are question be to growth to do margins both we're we things say some of going those company you -- the what other from as additional are at obviously reallocation to some is it dollars parts the to company. parts from parts growth. Again some stop to of a be leveraging the the of I of of yeah, there

so of this And I think is portfolio. our leveraging kind

can are is do businesses The ancillary of as you in leverage seen have there other some we where I there some the business better. is overall thing think real manage that. areas we And our

local thinking all your to can are at dollars imagine right going as ability bit So few if bottom more of both the to to you top again want the when and proactively it level. it because they probably things market not our little just place. answers expense you you're win again expend a about expenses reacting but the line And the on versus leverage

we foot that couple interesting me, actually the we've back it And investing the was to for things we're places us lead and even in that. make strike the in again on of going right front to the are that the on sure got six to focused profitable on wanting energy the do win. growth and the So are of kind get weeks to front and that and place of people foot get

little there I to is a the think outstanding of is into in level saw think commercial I some commercial I our future. around bit what be you energy going team of that. the going mean

a Right, I've to we funding So off thing of number of and bunch focus of we a to kind did the there we were right things do you is sure to was where of seen do that. held folks just to want win areas to that that it. I make find But do for we that going a that know that. know on what the sure have things. make how we other that we but need got got to I And and bunch

might -- industry before of bottom the at step tell little this years But that. objective step you right, can some be forward can't a in So in the of know be back quartile I returns share, not to losing going a and we're cases. we three function we bit the

So some sure in make confident I'm around, and areas we local got the markets. invest turn just winning we to this can pretty that we focus in on

Geoffrey Dunn

comments Okay of bit did a have and of this couple not sentences overnight an in about is process. then your you cautionary

to on is XXXX a are what three lumpy depending XXXX, the five frame and that, to type quarters thing? is more about Just reasonable period, the plus of XXXX a of your could and minus I initiatives it a transition bit to be really next being really mean payout think

Frederick H. Eppinger

is move this that think of based And day. is company, essentially going about to you some not kind that necessarily much you can investments, is because and of be things. we're this an refocusing I do so complete the is every the be going that hustle decisions it not Again, do I that if But fair. that to to there and business are the -- of about short-term. think some execution can going forward some long-term way, out

a it's characterization. fair So I think

Geoffrey Dunn

preliminary what headcount with then actions sequentially last QX? the and into for question David, occurred what and are in Alright, QX

David Hisey

Head a count has little coming bit. down been

we've with think on I pretty firm the hiring. merger been

into trend that see think quarter. I we'll fourth the continuing

really talked that Fred and about where terms the with function a of think kind we you just what there I of go is investments and of from in initiatives thing.

Geoffrey Dunn

thanks. Okay,

Operator

Instructions]. [Operator

go & Our Mackenzie next with from Zelman comes Please Aron Associates. ahead. question

Mackenzie Aron

morning. Thank good you,

call seen certain wanted any on needing Fred, have there it what seem areas. perspective? so certain broad to question Just are out more team around follow of head far, by kind is us can some rebuild personnel the geography, in count to areas a or color pretty up give that that you the that around business you've anything to based, or there can had is attrition, anything of from you

Frederick H. Eppinger

like -- think we're Yeah, is have need be some do I functions don't so it's But to just see to fair. through that go going go that want some hang we its some areas you are that we think to like don't around. and again when something something found. people lose some not resilient again you again area I to -- it's mean think through that can you but I to imagine when not have that any I it's there's overwhelming specific remarkably you going what particularly been overhead but it's holes not and advantage this you in functions this

to sure had would already lot conversations beefing that people that to of about we coming talking and -- with again that I we from that a we've are competitors hire. will already So enough there we calls want people And back. us tell areas making we we've are are be that come that already And are I've want up some too. interesting and had back you also

and resilient need have it's what of do. So, but just in organization part what we sure have But need different the isn't we areas. it's again make do, to that skills of we that the overwhelming is to important we all have a we have we part to my view again

Mackenzie Aron

around agency turned that the how relationships and could ties those what's from on have and to heard? going the relatively what's quickly be with sticky conversation shifts just reaction Stewart, agents initial been Great, or had some are been impression you've the kind of the then that back as well, that it sense have how of --

Frederick H. Eppinger

in things great going of It part the business us we're and I'm to agents again confident their that grow it's would a good completely that are a feel I'm with be winning that, over tomorrow did most can we're that's done can to But have we was doing. I back. are a particularly lot. and that same in investing what we an business Agents growing win if is thing. question, agents. think shift, I I partner discuss those meeting their and kind I probably actually I right, a business. the for they pretty for pretty logical, I think agent -- think XXX

to we've win that for focus that provide we So, we got them the to back. need on sure value and proposition make us

it is confident reasoning it why again it get in my I it. am focus what business were to sure we thinking was exactly we that illogical. make unknowable. hopefully So We've not sure is one it's The understand are and how long know got that it's This is things those talking But take, on people. back. of we view what got can it should not to question they the We and as not not get it long we back. and work to but does too making we

taking can years companies of companies So, and a job it done we to back structurally in need the the good at regional you get get something last and back. go few some have look share the companies, growth And easily. regional the that's we if industry channel agency in some to from larger the to over of

are to sell retail since the on We built well. so focus to perspective that's their some anything than have a should lot that bigger something and of were those a bit as we little particularly more from guys, disruption companies transactions they nimble

I structurally we a grow and some both can the do some share. good short-term is channel channel agency really damage there think and So that

Mackenzie Aron

well and all best Hey, color for thanks of the luck.

Operator

ahead. with go question & DeForest The from Company. next Please comes Walthausen Hinman

DeForest Hinman

from discussion, for shareholders. the thanks first the Great review thanks questions few your Hello, for job. weeks your taking in on

to areas we we You already better that improve that spent can performing in Fred of can even about we things talk do of time and are you understand where some are some well maybe people better? need well, opportunity, terms the winning, the culture areas we about can you do talk but

Frederick H. Eppinger

given sticky distraction all locally of it look gone things watched it of you do and And this is think one like the have about some lost one again and struck me that at that me, that. with and markets fact business in a is the it and metrics you continues and relationships that's I lot to have years our how markets of at strike you is the look of an the if company But this has fascinating as our some the through extraordinary. of strength. tremendous what we all quite brand. things we've And that's how local service the a people, the in company question stuff quality people a have you for this actually are things, that if the in service of the relationships which leverage underutilized and I these of local some

to our better, is work big a I will hustle them. way would a more little like bit we little like better customer The tell about segments a other position they thing you guys, I versus bit bit is responsive, with almost think our insight tad some in the relative we little every the we're the commercial right. of talk more They a

at there's a I strengths opportunity. real better to real just real this people some you But in our of apart us for partner versus all with that a sense a person results XX and person strength micro here. as is company there took sense, disappear. generic said in company Again again it So falls it here months, see interesting sort wouldn't across it the you of sale global in think that a if industries, you you will for a strength look creates more industry if

in on had that that underlying of last something, there do have as the people stability to leverage. an focused the here the the There we company experiencing, tells to real. says this that's resilience mean needed we we we back something that we're us is what I six weeks bounce strength

that work have to to industry. work companies one the said we lot make again the Now us we do, have do. in Together to better of of a

point has this company strengths to to So of. tremendous off build your

DeForest Hinman

how then help I up fit shareholders the looking as talked we're talked setting and profile plan, and you how those people us how opportunities and those to going think make communicate, about you moving those and are one about we're as for that any Okay, as it to benchmarks margin then to about are revenue going be expectations you can for internally color and both how targets, you know benchmarks three provide shareholders? we're shareholders, helpful we talking have going two be very just some be or towards that or is about are to we going expectations targets, to year

David Hisey

Yeah, so you winning business, will. is insurance this a about so industry that is services game my day. of day not type inches this execution of based an many to of this as financial in view much It's of is companies is this if kind

like everything. you're when execution, that when a is delivery in so business a And you're game,

this clear be very to be about to going And cascade doing is we're what going it's so to and going we're where obviously organization.

achieve to and outside three look next So what like. the to going world do a be it's over is of going need think again clear we're the what kind try to where clarity to years people what two we I'll have from we of And together.

the people know a obvious overestimate we it's of you are you what my is we view at quarter really over to have you metrics a can if of if what business. and time, this improve Again right, contract quarter-to-quarter those means. right what doing But some period look

transparent. we again a so But are we what can of is this stuff have is and a have we we a a my of And execute opportunities see none you strong the achieve kind to clarity will out to say see what us So will a together. the lay we plan company, for we do all our call importantly view think colleagues easy. plan that's foundation long-term what you need internally of to more that clarity relatively enough

I our and we to some I next a kind things at is over as on jump the opportunities. kind helpful. progress we look look and our Because So, days take look and quickly. that what back need of we all XXX that's so I it's all to got to to take our Again time said some investment our the and wanted know positions of make right sure of businesses reallocate resources because to hope I as make step how this at at going the to unfold here greatest we've do

DeForest Hinman

you cash helpful high You us, portfolio the I the of gears share seems is to has fee know in is this an capital to terms opportunity from stock being appropriate and an interesting hope break front the have and profile level capitalization of excess just potentially shareholders Shifting received on there talking to rewarding of color. I touched lowering capital in buying very what on, have some lot also investment completed, be future? for a didn’t count allocation, the it much kind deal earnings this a assume, of spent level that's we and appropriate in but better and of know it are we waiting it currently, close, hour a you for transaction not believe like very but situation, and a about half you

Frederick H. Eppinger

done are to can And excess give capital the on the to tend to can busy, that's use now to capital build Yeah, now is. next answer answer it our better it base get time I'm our I have get building build I'm now in is that -- and followed right my primary and where to now the a going just I've what hold I this to my don’t XX to that what it I and primary little the business grow past. do. right But capital some business. I is bit business. after clarity I do I want concern but That if on right going say using over I about we the back feel trying focus on the is capital the focus use more months like and over I'm what right what to anybody's am capital doesn't going with clarity going to if

DeForest Hinman

more bit little transactions? would a on include just so color that Okay, that, M&A type

Frederick H. Eppinger

help the clear think markets market and that business I and we really all position and things is local necessarily assist helpful. local really that this but a for But the one how don't understand at priority at that we could, be. of strong want us Could in alternatives and build appropriate at my that's again is the It look winning very to now. I very, having is be need to there some this business right that transactions them us could sure,

DeForest Hinman

thank Okay, you.

Operator

Partners. next ahead. [Operator comes Dowling Geoffrey with from Instructions]. The & Please Dunn question go

Geoffrey Dunn

you just Thanks order experience the David few first follow share had weeks open in a ups, your of could I October? day per first, few number

David Hisey

basis the be obviously we're a year time into to where On slower good mean the we're seasonal relative I history we've strong. of activity. going continued to seeing

Geoffrey Dunn

first specific weeks any the number put you two Can around or no?

David Hisey

I to years. strong but prefer to relative it's not prior

Geoffrey Dunn

rate of income investment in two forward but quarter we're yield the more quarter are as around cuts this dipped to cash at this there obviously this then a investment and going what thoughts relative the looking Okay yield, more if income year? particularly level bit your and had

David Hisey

there we've a mean I that people it's debate good going would have got a transaction. We Yeah, question lot the into and would of cash building it, that. been is

the Fred comment ultimate use that had. to response is the that think of I just

be right and up for there's, community really be taken will on happens stands investment paid something looks getting duration think that our the I but way is you I at what may it It the be now not to, it. think some whether in not business. might to be with investment said we money Fred only might And depending portfolio that want the we how board. as the in it of in reinvest want

Geoffrey Dunn

the then rate million corporate expenses? underlying and for Okay, right run is $X still

David Hisey

noise Take all out. the

that -- know stuff have had You and fair. the all probably M&A had we and that's the we

Geoffrey Dunn

there? about quarter into fourth agency we the sequential you activity or going a do last we so premiums think question, is how then see what trend lag and there direct reporting the given Okay, have a do uptick reminder, the XQ and you should a see

David Hisey

There then the increased over that carry of into order will side lag seeing some quarter. the activity business going that fourth a so is into on

Geoffrey Dunn

Alright, great, thank you.

Operator

further does turn at questions the It time. for I appear like we no this to any to would call speakers that additional back our have remarks.

Frederick H. Eppinger

interest That in concludes this quarter's conference today call. your Thank joining you in Stewart. and for

Operator

conclude for does Thank This your you program. participation. today's

You may any disconnect at time.

Stewart Information Services (STC) 23 Oct 192019 Q3 Earnings call transcript