2018 Title Insurance Financial Survey/Overview

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2018 Title Insurance Financial Survey/Overview

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Attached for your reference is a schedule of suggested "Maximum Risk" amounts for the largest title insurance companies in the United States, as well as a number of their smaller affiliates and independent title insurance companies active in particular states or regions. The schedule is based on the insurers' financial reports to State regulatory agencies for the year ending December 31, 2017. The suggested "Maximum Risk" is just that, a suggestion as to the most title insurance risk a particular insurance company should be allowed to retain on a given project or financing. In most instances, the title insurance companies can legally accept more risk (and would be happy to do so) and this schedule is intended as a guideline for when it may be appropriate in larger transactions to diversify the title insurance risk (by requiring coinsurance and/or reinsurance) based on the financial size of the companies involved. The schedule indicates which insurers are affiliated companies, identifying the parent company under the heading "Corporate Group" where applicable. Particularly in larger transactions, real estate investors, and lenders may prefer to treat one "Corporate Group" as a single insurer and require that risk be shared with unaffiliated companies through reinsurance and/or or co-insurance.

The suggested "Maximum Risk" herein is simply one-third of a company's reported "Surplus as Regards Policyholders" and reflects a rule of thumb used by certain financial institutions in the past. The underlying data from which the figures herein were derived is from the December 31, 2017 financial statements filed with state regulators by the title insurance companies listed or their affiliates (copies furnished by the insurers). Schiff Hardin LLP makes no representation or warranty regarding the accuracy of that data or the relative merits of using the calculation of "Maximum Risk" contained herein versus other indicia of the relative financial characteristics of title insurance companies. The financial condition of the companies listed may have changed since the date of those financial statements, and persons concerned as to the current condition of any company should contact that company, state insurance regulators, and/or independent rating agencies that may evaluate their financial condition (rating agencies which cover title insurers include Demotech, Inc., A.M. Best Company, Inc., Fitch Ratings Ltd., Moody's Investors Services, and Standard & Poor's, Inc.). Schiff Hardin LLP expressly disclaims any obligation to update this information for any reason. Schiff Hardin LLP does not provide financial advice and has compiled the information contained herein solely as a courtesy to its clients and other interested parties.

If you have questions regarding use of the suggested Maximum Risk schedule or other considerations in developing requirements for title coinsurance and/or reinsurance to diversify title insurance risk in transactions in which you are involved, please contact any of the undersigned.

 

April 2018

TITLE INSURANCE COMPANIES

Suggested Maximum Single Risk Amounts*

 

Company

Corporate Group

Maximum Risk $

Alamo Title Insurance (TX) (NAIC #50598)

Fidelity National

$8,000,000

American Guaranty Title Insurance Company (OK) (NAIC #51411)

Old Republic

9,600,000

Attorney's Title Guaranty Fund, Inc. (CO) (NAIC #51560)

N/A

1,100,000

Attorney's Title Guaranty Fund, Inc. (IL) (NAIC #50004)

N/A

16,600,000

Chicago Title Insurance Company (NE) (NAIC #50229)

Fidelity National

323,800,000

Commonwealth Land Title Insurance Company (NE) (NAIC #50083)

Fidelity National

120,300,000

Conestoga Title Insurance Co. (PA) (NAIC #51209)

N/A

4,800,000

Connecticut Attorneys Title Insurance Company (VT) (NAIC #51268)

N/A

11,000,000

Fidelity National Title Insurance Company (CA) (NAIC #51586)

Fidelity National

131,000,000

First American Title Insurance Company (NE) (NAIC #50814)[1]

First American

391,300,000

First American Title Insurance Company of Louisiana (LA) (NAIC #51527)

First American

5,000,000

First American Title Guaranty Company (TX) (f/k/a United General Title Insurance Company (CA)) (NAIC #51624)

First American

7,500,000

Investors Title Insurance Company (NC) (NAIC #50369)

Investors

31,600,000

 

TITLE INSURANCE COMPANIES

Suggested Maximum Single Risk Amounts

(continued)

Company

Corporate Group

Maximum Risk $

National Investors Title Insurance Company (TX) (NAIC #50377)

Investors

4,400,000

National Title Insurance Company of New York Inc. (NY) (NAIC #51020)

Fidelity

18,300,000

North American Title Insurance Company (CA) (NAC #50130)

N/A

27,500,000

Ohio Bar Title Insurance Company (OH) (NAIC #51330)

First American

4,400,000

Old Republic National Title Insurance Company (MN) (NAIC #50520)[2]

Old Republic

172,100,000

Stewart Title Guaranty Company (TX) (NAIC #50121)

Stewart[3]

180,900,000

Stewart Title Insurance Company (NY) (NAIC #51420)

Stewart3

18,200,000

Westcor Land Title Insurance Company (CA) (NAIC #50050)

N/A

13,000,000

WFG National Title Insurance Company (SC) (NAIC #51152)

WFG

9,600,000

WFG Title Insurance Company (CA) (NAIC #50849)

WFG

N/A[4]

 

About Schiff Hardin LLP

Schiff Hardin LLP is a general practice law firm representing clients across the United States and around the world. We have offices located in Ann Arbor, Chicago, Lake Forest, New York, San Francisco, and Washington, D.C. Our attorneys are strong advocates and trusted advisers – roles that contribute to many lasting client relationships.

This publication is for the general information of clients and friends of our firm. It does not provide legal advice for any specific matter. Readers should consult a lawyer directly for such advice. This publication, or parts of it, may be considered advertising material under professional conduct rules applicable to lawyers.

For more information visit us at www.schiffhardin.com.

For More Information

The attorney responsible for content is Paul G. Mackey. If you would like to learn more about the subject matter of this memorandum, please contact any of the following attorneys of the Real Estate Group:

Kaitlin Riley Duran

krduran@schiffhardin.com

312-258-5538

Nathan A. Engel

nengel@schiffhardin.com

847-295-4313

William A. Goldman

wgoldman@schiffhardin.com

212-745-9546

Emma K. Gormley

egormley@schiffhardin.com

312-258-5862

David A. Grossberg

dgrossberg@schiffhardin.com

312-258-5764

Russel T. Hamilton

rhamilton@schiffhardin.com

212-745-0805

Janet M. Johnson

jjohnson@schiffhardin.com

312-258-5658

Paul G. Mackey

pmackey@schiffhardin.com

212-745-0816

Sean T. Maloney

smaloney@schiffhardin.com

312-258-5505

David A. Mandel

dmandel@schiffhardin.com

212-745-0834

Christine A. McGuinness

cmcguinness@schiffhardin.com

212-745-0831

Ivan W. Moskowitz

imoskowitz@schiffhardin.com

212-745-0875

Marina Rabinovich

mrabinovich@schiffhardin.com

212-745-0832

Felice B. Rose

frose@schiffhardin.com

312-258-5763

David S. Sattelberger

dsattelberger@schiffhardin.com

312-258-5574

 

* The suggested "Maximum Risk" amount is one-third of each company's "Surplus as Regards Policy Holders" from the financial statements for the year ending December 31, 2017 which each insurer is required to file with the insurance regulators of the States where they do business, as provided by the companies. The suggested "Maximum Risk" amounts are rounded to the nearest increment of $100,000. Although many insurance companies are publicly traded corporations or subsidiaries of a publicly traded corporation, the state filings allow for comparison of the insurance companies themselves under generally consistent accounting methods. Certain states regulate the maximum risk a title insurance company may assume before being required to reissue that risk, and those maximums may be higher or lower than those suggested on this list. As with any large corporation, the financial statements of title insurance companies contain extensive and detailed information regarding the company's finances and there are any number of methods of evaluating a company's financial strength.

[1] First American Title Insurance Company was previously domiciled in California but redomesticated to Nebraska effective July 1, 2014

[2] Old Republic National Title Insurance Company was previously domiciled in Minnesota but redomesticated to Florida on November 25, 2014

[3] On March 19, 2018, Fidelity National Financial, Inc., the parent company of the Fidelity National family insurance companies noted on this list, announced that it has signed an agreement to acquire Stewart Information Services Corporation, the parent company of the Stewart family title insurance companies noted on this list. Fidelity's acquisition announcement noted that "The closing of the transaction is subject to certain closing conditions, including Stewart stockholder approval, federal and state regulatory approvals and the satisfaction of other customary closing conditions. Closing is expected in the first or second quarter of 2019."

[4] Merged into WFG National Title Insurance Company (NAIC #51152) on April 1, 2014