High mortgage rates, economic uncertainty and low housing inventory did little to help title premium volume during the first quarter of 2023. In the first three months of the year, the title industry generated $3.37 billion in title insurance premiums, down 43% from the prior year, according to he American Land Title Association‘s Market share analysisreleased on Thursday.
Compared to the prior year, total operating income decreased by 71.6%. However, the trade group noted that the industry remains in a strong financial position, with total assets of almost $11.7 billion, while legal surplus was $5.2 billion and legal reserves were $5.9 billion.
In addition to lower premium volume, the industry also paid $162.7 million in claims, up from $132.5 million in the first quarter of 2022.
The five states with the highest title premium volumes during the first quarter of the year were Texas ($522.896 million), Florida ($421.968 million), California ($238.769 million), New York ($213.157 million) and Pennsylvania ($133.286 million). The same five states held the top spots in 2022.
All five states posted year-over-year declines in title premiums in the first quarter of 2023, with California posting the largest annual decline at 49.2% and Florida posting the smallest annual decline at 39.5%.
Main subscribers of the quarter by market share included First American Title Insurance Co. with 23.0%; Old Republic National Title Insurance Co. with 15.5%; Fidelity National Title Insurance with 12.7%; chicago title insurance company with 12.4%; and Stewart Title Guaranty Co. with 9.6%.
However, it should be noted that Chicago Title is part of Fidelity. With 25.1% of the market, it was once again the largest company by share of premiums issued during the first quarter of 2023.
in 2022, First American’s market share was 22.1%, while Old Republic’s was 15.8%, Fidelity’s 27%, and Stewart’s 8.9%. Stewart has been looking to recoup some of the title bonus he’s lost in recent years. The company’s market share was 10.62% as recently as 2019.
Rounding out the top 10 for the first quarter of 2023 were Westcor Land Title Insurance Co. with 3.7% of the market, placing it in sixth place. Commonwealth Land Title Insurance Co. had 3.3%, Title Resources Guaranty Co. had 2.9%, WFG National Title Insurance Company had 2.4% of the market share, and Dressage Title had 2.0%.
Although the “Big Four” still control the overwhelming majority of the market with a combined 73.2% market share, their collective control is no longer what it once was. In 2019, independent title underwriters such as Westcor, WFG and others had a combined market share of just under 15%, which increased to 26.8% in the first quarter of 2023.
