Fitch Releases U.S. Title Industry 2014 GAAP Financial Results
'The four publicly traded U.S. title insurers, which make up almost 90% of the industry, reported a less than 1% decline in 2014 title operating revenues.' said Gerry Glombicki, Director at Fitch Ratings and Title Insurance Sector Head.
Title revenues declined in 2014 due to rising interest rates that led to lower refinancing activity that was largely offset by an increase in purchase activity, commercial market transactions, and rising home prices.
Fitch anticipates revenues to be flat to slightly positive in 2015 given the strong refinance volume companies experienced in the first few months. Further, open orders suggest a solid pipeline of activity for the first half of 2015. Profit margins are likely to approximate current levels as expense structure will continue to be a key differentiator for profitability by individual underwriter in 2015.
Significant economic uncertainty remains around several key macroeconomic factors such as interest rates, inflation, employment, taxes, public sector debt levels, and U.S. monetary and fiscal policies. The level and path these variables take can greatly influence future title insurer profitability.
The report 'Title Insurance Industry 2014 GAAP Financial Results' is available at 'www.fitchratings.com' under 'Insurance' and 'Special Reports'.
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