STC Stewart Information Services Corp.

Risks

• Adverse changes in economic conditions, especially those affecting the levels of real estate and mortgage activity, may reduce our revenues.
• Our claims experience may require us to increase our provision for title losses or to record additional reserves, either of which would adversely affect our earnings.
• Competition in the title insurance industry may affect our revenues.
• Availability of credit may reduce our liquidity and negatively impact our ability to fund operations.
• A downgrade of our underwriters by rating agencies may reduce our revenues.
• Our insurance subsidiaries must comply with extensive government regulations. These regulations could adversely affect our ability to increase our revenues and operating results.
• Rapid changes in our industry require secure, timely and cost-effective technological responses. Our earnings may be adversely affected if we are unable to effectively use technology to address regulatory changes and increase productivity.
• We rely on dividends from our insurance underwriting subsidiaries.
• Claims by large classes of claimants may impact our financial condition or results of operations.
• Information technology systems present potential targets for cyber security attacks.
• Unfavorable economic or other business conditions could cause us to record an impairment of all or a portion of our goodwill, other intangible assets and other long-lived assets.
• Failures at financial institutions at which we deposit funds could adversely affect us.
• Our investment portfolio is subject to interest rate and other risks and could experience losses.
• Our business could be disrupted as a result of a threatened proxy contest and other actions of activist stockholders.