Title insurers have started 2024 slowly, but second-quarter premium volume is recovering
After a slow start to the year, the housing market picked up the pace in the second quarter. For the title insurance industry, this meant an increase in title insurance premium volume, which reached $4.09 billion for the quarter, according to the report. American Land Title Association (ALTA)’s Market Share Analysis released Thursday.
Second quarter volume increased from $3.35 billion in Q1 2024 and $3.92 billion in Q1 2023. Additionally, industry operating revenues rose 3.5%. The financial position remained strong: total assets amounted to $11.3 billion, while statutory surplus amounted to $5 billion and statutory reserves amounted to $5.6 billion.
Although premium volume increased, the industry paid out more claims in the first half of 2024 than in the first half of 2023. In the first six months of this year, claims paid out amounted to $333.7 million, compared to $331.7 million for same period. period 2023.
“The second quarter results reflect the strength and adaptability of the title insurance industry as the housing market faces slowly declining mortgage rates after peaking in October 2023,” ALTA CEO Diane Tomb said in a statement. “Title insurance professionals continue to play a critical role in preventing fraud and protecting property rights, ensuring safe real estate transactions in this evolving market.”
The five states with the largest title premium volumes in 2023 were Texas ($606.882 million), Florida ($525.727 million), California ($378.486 million), New York ($227.496 million) and Pennsylvania ($152.409 million). The same five states ranked first in the first quarter of 2024.
All five states posted year-over-year volume increases in the second quarter of 2024, with California posting the largest increase at 5.5% and Texas the smallest at 2.1%.
Top insurers for the quarter, including market share First American Title Insurance Co. at 21.5%; Fidelity National Title Insurance at 15%; Old Republic National Title Insurance Co. at 14.4%; Chicago Title Insurance Co. at 13.8%; And Stewart Title Guarantee Co. at 8.7%.
Chicago Title is part of Fidelity. With 28.8% of the market, it was again the largest company in terms of share of premiums written in the second quarter of 2024.
In the first quarter of 2024, First American’s market share was 22.6%, while Old Republic’s was 14.2%, Fidelity’s was 26.7%, and Stewart’s was 9.9%. Stewart is trying to regain some of the share it has lost in recent years. The company’s market share recently reached 10.6% 2019.
The other top 10 companies for the second quarter of 2024 were Westcor Land Title Insurance Co. with 3.6% of the market, Commonwealth Land Title Insurance Co. (3.5%), Title Sources Warranty Co. (2.9%), WFG National Title Insurance Co. (2.6%) and Doma title (1.8%). The same five companies rounded out the top 10 in the first quarter of 2024.
Although the Big Four still control the overwhelming majority of the market with a combined market share of 73.4%, their collective grip is not what it once was. In 2019, independent title insurers such as Westcor, WFG and others had a combined market share of just under 15%, which increased to 26.6% in the second quarter of 2024.
