Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-02658 | |
Entity Registrant Name | STEWART INFORMATION SERVICES CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1677330 | |
Entity Address, Address Line One | 1360 Post Oak Blvd., | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 713 | |
Local Phone Number | 625-8100 | |
Title of 12(b) Security | Common Stock, $1 par value per share | |
Trading Symbol | STC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,890,755 | |
Entity Central Index Key | 0000094344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Revenues | $ 829,787 | $ 590,676 | $ 2,313,178 | $ 1,543,206 |
Investment income | 4,053 | 5,027 | 13,127 | 14,530 |
Net realized and unrealized gains (losses) | 2,887 | (7) | 17,816 | (6,035) |
Revenues | 836,727 | 595,696 | 2,344,121 | 1,551,701 |
Expenses | ||||
Amounts retained by agencies | 329,906 | 231,051 | 935,861 | 659,138 |
Employee costs | 197,587 | 155,638 | 555,451 | 428,817 |
Other operating expenses | 152,587 | 98,531 | 415,864 | 245,003 |
Title losses and related claims | 30,345 | 28,427 | 92,687 | 68,600 |
Depreciation and amortization | 9,144 | 5,144 | 22,394 | 13,436 |
Interest | 712 | 562 | 1,960 | 2,075 |
Total expenses | 720,281 | 519,353 | 2,024,217 | 1,417,069 |
Income before taxes and noncontrolling interests | 116,446 | 76,343 | 319,904 | 134,632 |
Income tax expense | (23,051) | (16,058) | (70,547) | (29,293) |
Net income | 93,395 | 60,285 | 249,357 | 105,339 |
Less net income attributable to noncontrolling interests | 4,732 | 4,376 | 11,639 | 10,107 |
Net income attributable to Stewart | 88,663 | 55,909 | 237,718 | 95,232 |
Net income | 93,395 | 60,285 | 249,357 | 105,339 |
Other comprehensive (loss) income, net of taxes: | ||||
Foreign currency translation adjustments | (4,243) | 3,844 | (997) | (3,404) |
Change in net unrealized gains and losses on investments | (2,183) | 920 | (10,330) | 15,055 |
Reclassification adjustment for realized gains and losses on investments | (355) | (175) | (918) | (276) |
Other comprehensive (loss) income, net of taxes: | (6,781) | 4,589 | (12,245) | 11,375 |
Comprehensive income | 86,614 | 64,874 | 237,112 | 116,714 |
Less net income attributable to noncontrolling interests | 4,732 | 4,376 | 11,639 | 10,107 |
Comprehensive income attributable to Stewart | $ 81,882 | $ 60,498 | $ 225,473 | $ 106,607 |
Basic average shares outstanding (in shares) | 26,873 | 25,148 | 26,803 | 24,151 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 3.30 | $ 2.22 | $ 8.87 | $ 3.94 |
Diluted average shares outstanding (in shares) | 27,238 | 25,297 | 27,090 | 24,256 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 3.26 | $ 2.21 | $ 8.78 | $ 3.93 |
Direct operations | ||||
Revenues | ||||
Revenues | $ 366,091 | $ 280,114 | $ 999,098 | $ 696,611 |
Agency operations | ||||
Revenues | ||||
Revenues | 401,762 | 282,605 | 1,138,023 | 802,022 |
Ancillary services | ||||
Revenues | ||||
Revenues | $ 61,934 | $ 27,957 | $ 176,057 | $ 44,573 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 607,605 | $ 432,683 |
Short-term investments | 17,198 | 20,678 |
Investments in debt and equity securities, at fair value | 700,719 | 684,387 |
Receivables: | ||
Premiums from agencies | 47,324 | 34,507 |
Trade and other | 66,711 | 56,054 |
Income taxes | 5,107 | 501 |
Notes | 1,390 | 1,557 |
Allowance for uncollectible amounts | (6,222) | (4,807) |
Total receivables | 114,310 | 87,812 |
Property and equipment: | ||
Land | 2,964 | 2,964 |
Buildings | 17,114 | 22,598 |
Furniture and equipment | 191,231 | 168,147 |
Accumulated depreciation | (151,311) | (142,038) |
Total property and equipment, at cost | 59,998 | 51,671 |
Operating lease assets | 117,354 | 106,479 |
Title plants, at cost | 73,127 | 72,863 |
Investments on equity method basis | 21,734 | 6,765 |
Goodwill | 536,176 | 431,477 |
Intangible assets, net of amortization | 72,549 | 37,382 |
Deferred tax assets | 4,566 | 4,330 |
Other assets | 50,169 | 42,048 |
Total assets | 2,375,505 | 1,978,575 |
Liabilities | ||
Notes payable | 275,276 | 101,773 |
Accounts payable and accrued liabilities | 209,144 | 225,180 |
Operating lease liabilities | 129,064 | 119,089 |
Estimated title losses | 534,551 | 496,275 |
Deferred tax liabilities | 10,770 | 23,852 |
Total liabilities | 1,158,805 | 966,169 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Common Stock ($1 par value) and additional paid-in capital | 306,257 | 301,937 |
Retained earnings | 899,528 | 688,819 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation adjustments | (9,235) | (8,238) |
Net unrealized gains on debt securities investments | 14,012 | 25,260 |
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) |
Stockholders’ equity attributable to Stewart | 1,207,896 | 1,005,112 |
Noncontrolling interests | 8,804 | 7,294 |
Total stockholders’ equity (26,890,064 and 26,728,242 shares outstanding) | 1,216,700 | 1,012,406 |
Total liabilities and stockholders' equity | $ 2,375,505 | $ 1,978,575 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Common stock, shares outstanding (in shares) | 26,890,064 | 26,728,242 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of net income to cash provided by operating activities: | ||
Net income | $ 249,357 | $ 105,339 |
Add (deduct): | ||
Depreciation and amortization | 22,394 | 13,436 |
Provision for bad debt | 1,871 | 363 |
Net realized and unrealized (gains) losses | (17,816) | 6,035 |
Amortization of net premium on debt securities investments | 2,794 | 3,280 |
Payments for title losses less than provisions | 39,761 | 9,615 |
Adjustments for insurance recoveries of title losses | 0 | (73) |
Increase in receivables – net | (20,771) | (4,290) |
Increase in other assets – net | (3,725) | (1,702) |
Decrease (increase) in accounts payable and other liabilities – net | (30,385) | 1,301 |
Change in net deferred income taxes | 7,024 | 3,576 |
Net income from equity method investments | (6,852) | (2,385) |
Dividends received from equity method investments | 5,496 | 2,499 |
Stock-based compensation expense | 8,494 | 4,234 |
Other – net | (325) | (367) |
Cash provided by operating activities | 257,317 | 140,861 |
Investing activities: | ||
Proceeds from sales of investments in securities | 19,726 | 25,772 |
Proceeds from matured investments in debt securities | 68,653 | 46,677 |
Purchases of investments in securities | (111,107) | (75,487) |
Net sales of short-term investments | 2,734 | 2,431 |
Purchases of property and equipment, and real estate | (26,213) | (10,492) |
Proceeds from sale of buildings | 10,552 | 0 |
Cash paid for acquisition of businesses | (149,921) | (146,518) |
Cash paid for acquisition of equity method investment | (16,080) | 0 |
Other – net | 988 | 1,524 |
Cash used by investing activities | (200,668) | (156,093) |
Financing activities: | ||
Proceeds from notes payable | 331,755 | 2,361 |
Payments on notes payable | (158,031) | (11,737) |
Distributions to noncontrolling interests | (11,683) | (9,572) |
Issuance of new Common Stock | 0 | 108,961 |
Repurchases of Common Stock | (2,145) | (826) |
Proceeds from stock option and employee stock purchase plan exercises | 2,715 | 0 |
Cash dividends paid | (26,558) | (22,214) |
Payment of contingent consideration related to an acquisition | (9,489) | 0 |
Purchase of remaining interest in consolidated subsidiaries | (5,616) | 0 |
Other - net | (777) | (311) |
Cash used by financing activities | 120,171 | 66,662 |
Effects of changes in foreign currency exchange rates | (1,898) | (479) |
Change in cash and cash equivalents | 174,922 | 50,951 |
Cash and cash equivalents at beginning of period | 432,683 | 330,609 |
Cash and cash equivalents at end of period | $ 607,605 | $ 381,560 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests |
Balances at beginning of period at Dec. 31, 2019 | $ 753,759 | $ 24,062 | $ 164,217 | $ 564,392 | $ (2,699) | $ (2,666) | $ 6,453 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 95,232 | 95,232 | |||||
Dividends on Common Stock | (22,401) | (22,401) | |||||
Issuance of Common Stock | 108,961 | 3,026 | 105,935 | ||||
Stock-based compensation | 4,234 | 4 | 4,230 | ||||
Stock repurchases | (826) | (20) | (806) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 15,055 | 15,055 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (276) | (276) | |||||
Foreign currency translation adjustments, net of taxes | (3,404) | (3,404) | |||||
Net income attributable to noncontrolling interests | 10,107 | 10,107 | |||||
Distributions to noncontrolling interests | (9,572) | (9,572) | |||||
Balances at end of period at Sep. 30, 2020 | 950,869 | 27,072 | 273,576 | 637,223 | 8,676 | (2,666) | 6,988 |
Balances at beginning of period at Jun. 30, 2020 | 787,332 | 24,052 | 166,208 | 589,424 | 4,087 | (2,666) | 6,227 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 55,909 | 55,909 | |||||
Dividends on Common Stock | (8,110) | (8,110) | |||||
Issuance of Common Stock | 108,961 | 3,026 | 105,935 | ||||
Stock-based compensation | 1,785 | 2 | 1,783 | ||||
Stock repurchases | (358) | (8) | (350) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 920 | 920 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (175) | (175) | |||||
Foreign currency translation adjustments, net of taxes | 3,844 | 3,844 | |||||
Net income attributable to noncontrolling interests | 4,376 | 4,376 | |||||
Distributions to noncontrolling interests | (3,615) | (3,615) | |||||
Balances at end of period at Sep. 30, 2020 | 950,869 | 27,072 | 273,576 | 637,223 | 8,676 | (2,666) | 6,988 |
Balances at beginning of period at Dec. 31, 2020 | 1,012,406 | 27,080 | 274,857 | 688,819 | 17,022 | (2,666) | 7,294 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 237,718 | 237,718 | |||||
Dividends on Common Stock | (27,009) | (27,009) | |||||
Stock-based compensation | 8,494 | 139 | 8,355 | ||||
Stock repurchases | (2,145) | (41) | (2,104) | ||||
Stock option and employee stock purchase plan exercises | 2,715 | 64 | 2,651 | ||||
Purchase of remaining interest in consolidated subsidiaries | (5,616) | (4,744) | (872) | ||||
Change in net unrealized gains and losses on investments, net of taxes | (10,330) | (10,330) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (918) | (918) | |||||
Foreign currency translation adjustments, net of taxes | (997) | (997) | |||||
Net income attributable to noncontrolling interests | 11,639 | 11,639 | |||||
Distributions to noncontrolling interests | (11,683) | (11,683) | |||||
Net effect of other changes in ownership | 2,426 | 2,426 | |||||
Balances at end of period at Sep. 30, 2021 | 1,216,700 | 27,242 | 279,015 | 899,528 | 4,777 | (2,666) | 8,804 |
Balances at beginning of period at Jun. 30, 2021 | 1,136,073 | 27,177 | 274,074 | 819,834 | 11,558 | (2,666) | 6,096 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income attributable to Stewart | 88,663 | 88,663 | |||||
Dividends on Common Stock | (8,969) | (8,969) | |||||
Stock-based compensation | 2,615 | 8 | 2,607 | ||||
Stock repurchases | (143) | (2) | (141) | ||||
Stock option and employee stock purchase plan exercises | 2,534 | 59 | 2,475 | ||||
Change in net unrealized gains and losses on investments, net of taxes | (2,183) | (2,183) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (355) | (355) | |||||
Foreign currency translation adjustments, net of taxes | (4,243) | (4,243) | |||||
Net income attributable to noncontrolling interests | 4,732 | 4,732 | |||||
Distributions to noncontrolling interests | (4,430) | (4,430) | |||||
Net effect of other changes in ownership | 2,406 | 2,406 | |||||
Balances at end of period at Sep. 30, 2021 | $ 1,216,700 | $ 27,242 | $ 279,015 | $ 899,528 | $ 4,777 | $ (2,666) | $ 8,804 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in usd per share) | $ 0.33 | $ 0.30 | $ 0.99 | $ 0.90 |
Interim financial statements
Interim financial statements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Interim financial statements | Interim financial statements. The financial information contained in this report for the three and nine months ended September 30, 2021 and 2020, and as of September 30, 2021, is unaudited. This report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 1, 2021 (2020 Form 10-K). A. Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. B. Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. C. Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from c urrent operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $524.5 million and $496.6 million at September 30, 2021 and December 31, 2020, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $24.0 million a nd $20.0 million at September 30, 2021 and December 31, 2020, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. D. New credit agreement. On October 28, 2021, t he Company entered into a new senior unsecured credit agreement with the creditors of its existing $350 million line of credit facility (maturing in March 2026). The new credit agreement provides the Company with a $200 million unsecured revolving credit facility (maturing in October 2026) and an unsecured $400 million delayed-draw term loan (364-day term), with an option to increase the revolving credit facility by up to $125 million. On the same day |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues. The Company's operating revenues, summarized by type, are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Title insurance premiums: Direct 248,738 190,794 687,369 478,822 Agency 401,762 282,605 1,138,023 802,022 Escrow fees 63,455 53,384 183,638 127,903 Appraisal management, abstract and other ancillary services 85,345 42,627 234,677 81,533 Other revenues 30,487 21,266 69,471 52,926 829,787 590,676 2,313,178 1,543,206 |
Investments in debt and equity
Investments in debt and equity securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt and equity securities | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 As of September 30, 2021 and December 31, 2020, the net unrealized investment gains relating to investments in equity securitie s held were $13.9 million and $4.4 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2021 December 31, 2020 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 38,088 39,885 45,138 47,603 Corporate 280,090 292,119 285,962 305,450 Foreign 274,938 278,808 261,748 271,711 U.S. Treasury Bonds 6,426 6,466 6,564 6,622 599,542 617,278 599,412 631,386 Foreign debt securities consist of Canadian government, provincial and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2021 December 31, 2020 Gains Losses Gains Losses ($000 omitted) Municipal 1,798 1 2,465 — Corporate 12,630 601 19,594 106 Foreign 4,784 914 10,024 61 U.S. Treasury Bonds 60 20 82 24 19,272 1,536 32,165 191 Debt securities as of September 30, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 64,866 65,678 After one year through five years 363,235 371,531 After five years through ten years 140,784 146,686 After ten years 30,657 33,383 599,542 617,278 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 1 130 — — 1 130 Corporate 395 40,219 206 4,933 601 45,152 Foreign 888 83,259 26 246 914 83,505 U.S. Treasury Bonds 3 482 17 508 20 990 1,287 124,090 249 5,687 1,536 129,777 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2021 was 70. Of these securities, 7 were in unrealized loss positions for more than 12 months. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 106 13,518 — — 106 13,518 Foreign 40 2,912 21 254 61 3,166 U.S. Treasury Bonds — — 24 1,022 24 1,022 146 16,430 45 1,276 191 17,706 Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Realized gains 2,615 241 10,695 1,749 Realized losses (47) (209) (2,516) (1,556) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) 2,887 (7) 17,816 (6,035) Realized gains and losses during the third quarter 2021 included a $2.5 million gain related to an acquisition contingent liability adjustment. Additionally, realized gains and losses for the first nine months of 2021 included $7.3 million of gains on sales of buildings and a $2.5 million loss related to a disposal of an equity method investment. Realized gains and losses for the first nine months of 2020 included $1.3 million of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments) and $1.1 million of net realized losses from sale of investment securities. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 345 (41) 9,706 (7,136) Less: Net realized gains (losses) on equity securities sold during the period 26 (2) 69 (908) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Proceeds from sales of debt securities 4,854 10,218 19,425 24,990 Proceeds from sales of equity securities 128 56 301 782 Total proceeds from sales of investments in securities 4,982 10,274 19,726 25,772 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. Under U.S. GAAP, there is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows: • Level 1 – quoted prices in active markets for identical assets or liabilities; • Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and • Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. As of September 30, 2021, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 39,885 39,885 Corporate — 292,119 292,119 Foreign — 278,808 278,808 U.S. Treasury Bonds — 6,466 6,466 Equity securities 83,441 — 83,441 83,441 617,278 700,719 As of December 31, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 47,603 47,603 Corporate — 305,450 305,450 Foreign — 271,711 271,711 U.S. Treasury Bonds — 6,622 6,622 Equity securities 53,001 — 53,001 53,001 631,386 684,387 As of September 30, 2021 and December 31, 2020, Level 1 financial instruments consist of equity securities. Level 2 financial instruments consist of municipal, governmental, and corporate bonds, both U.S. and foreign. In accordance with the Company’s policies and guidelines which incorporate relevant statutory requirements, the Company’s third-party registered investment manager invests only in securities rated as investment grade or higher by the major rating services, where observable valuation inputs are significant. The fair value of the Company's investments in debt and equity securities is primarily determined using a third-party pricing service provider. The third-party pricing service provider calculates the fair values using both market approach and model valuation methods, as well as pricing information obtained from brokers, dealers and custodians. Management ensures the reasonableness of the third-party service valuations by comparing them with pricing information from the Company's investment manager. |
Net realized and unrealized gai
Net realized and unrealized gains (losses) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Net realized and unrealized gains (losses) | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 As of September 30, 2021 and December 31, 2020, the net unrealized investment gains relating to investments in equity securitie s held were $13.9 million and $4.4 million, respectively (refer to Note 5). The amortized costs and fair values of investments in debt securities are as follows: September 30, 2021 December 31, 2020 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 38,088 39,885 45,138 47,603 Corporate 280,090 292,119 285,962 305,450 Foreign 274,938 278,808 261,748 271,711 U.S. Treasury Bonds 6,426 6,466 6,564 6,622 599,542 617,278 599,412 631,386 Foreign debt securities consist of Canadian government, provincial and corporate bonds, United Kingdom treasury and corporate bonds, and Mexican government bonds. Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2021 December 31, 2020 Gains Losses Gains Losses ($000 omitted) Municipal 1,798 1 2,465 — Corporate 12,630 601 19,594 106 Foreign 4,784 914 10,024 61 U.S. Treasury Bonds 60 20 82 24 19,272 1,536 32,165 191 Debt securities as of September 30, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 64,866 65,678 After one year through five years 363,235 371,531 After five years through ten years 140,784 146,686 After ten years 30,657 33,383 599,542 617,278 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 1 130 — — 1 130 Corporate 395 40,219 206 4,933 601 45,152 Foreign 888 83,259 26 246 914 83,505 U.S. Treasury Bonds 3 482 17 508 20 990 1,287 124,090 249 5,687 1,536 129,777 The number of specific debt investment holdings held in an unrealized loss position as of September 30, 2021 was 70. Of these securities, 7 were in unrealized loss positions for more than 12 months. Since the Company does not intend to sell and will more likely than not maintain each investment security until its maturity or anticipated recovery in value, and no significant credit risk is deemed to exist, these investments are not considered as credit-impaired. The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 106 13,518 — — 106 13,518 Foreign 40 2,912 21 254 61 3,166 U.S. Treasury Bonds — — 24 1,022 24 1,022 146 16,430 45 1,276 191 17,706 Net realized and unrealized gains (losses). Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Realized gains 2,615 241 10,695 1,749 Realized losses (47) (209) (2,516) (1,556) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) 2,887 (7) 17,816 (6,035) Realized gains and losses during the third quarter 2021 included a $2.5 million gain related to an acquisition contingent liability adjustment. Additionally, realized gains and losses for the first nine months of 2021 included $7.3 million of gains on sales of buildings and a $2.5 million loss related to a disposal of an equity method investment. Realized gains and losses for the first nine months of 2020 included $1.3 million of gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments) and $1.1 million of net realized losses from sale of investment securities. Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 345 (41) 9,706 (7,136) Less: Net realized gains (losses) on equity securities sold during the period 26 (2) 69 (908) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Proceeds from sales of debt securities 4,854 10,218 19,425 24,990 Proceeds from sales of equity securities 128 56 301 782 Total proceeds from sales of investments in securities 4,982 10,274 19,726 25,772 |
Goodwill and other intangible a
Goodwill and other intangible assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets. The summary of changes in goodwill is as follows. Title Ancillary Services and Corporate Consolidated Total ($000 omitted) Balances at December 31, 2020 361,433 70,044 431,477 Acquisitions 103,744 9,777 113,521 Purchase accounting adjustments (4,492) (4,307) (8,799) Disposals (23) — (23) Balances at September 30, 2021 460,662 75,514 536,176 During the nine months ended September 30, 2021, goodwill recorded in the title segment was related to acquisitions of a title search and support services provider, a digital customer engagement platform provider, and a number of title offices operating in the states of Arizona, California, New Mexico, Ohio and Texas. Goodwill recorded in the ancillary services and corporate segment was related to an acquisition of an online notarization and closing solutions provider. The goodwill balances for the 2021 acquisitions were based on the Company's preliminary purchase accounting, which is expected to be finalized within a year after the acquisitions closed. During the nine months ended September 30, 2021, the Company recorded other intangible assets related to acquisitions of $27.2 million in the title segment, primarily related to technology, customer relationships and trade names, and $18.3 million in the ancillary services and corporate segment, primarily related to customer relationships and technology. |
Estimated title losses
Estimated title losses | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Estimated title losses | Estimated title losses. A summary of estimated title losses for the nine months ended September 30 is as follows: 2021 2020 ($000 omitted) Balances at January 1 496,275 459,053 Provisions: Current year 91,259 68,063 Previous policy years 1,428 537 Total provisions 92,687 68,600 Payments, net of recoveries: Current year (12,181) (9,595) Previous policy years (40,745) (49,390) Total payments, net of recoveries (52,926) (58,985) Effects of changes in foreign currency exchange rates (1,485) (1,856) Balances at September 30 534,551 466,812 Loss ratios as a percentage of title operating revenues: Current year provisions 4.3 % 4.5 % Total provisions 4.3 % 4.6 % Provisions in the first nine months of 2021 increased compared to the same period in 2020, primarily as a result of increased title revenues, while the effect of changes in foreign currency exchange rates for the first nine months of 2021 and 2020 were primarily influenced by the depreciation of the Canadian dollar against the U.S. dollar during both periods. |
Share-based payments
Share-based payments | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based payments | Share-based payments. As part of its incentive compensation program for executives and senior management employees, the Company provides share-based awards, which include time-based restricted units, performance-based restricted stock units, and stock options. Each restricted stock unit represents a contractual right to receive a share of the Company's common stock. The time-based units vest on each of the first three The stock options vest on each of the first three anniversaries of the grant date at a rate of 20%, 30% and 50%, chronologically, and expire 10 years after the grant date. Each vested stock option can be exercised to purchase a share of the Company's common stock at the strike price set by the Company at the grant date. The compensation expense associated with the share-based awards is calculated based on the fair value of the related award and recognized over the corresponding vesting period. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share. Basic earnings per share (EPS) attributable to Stewart is calculated by dividing net income attributable to Stewart by the weighted-average number of shares of Common Stock outstanding during the reporting periods. Outstanding shares of Common Stock granted to employees that are not yet vested (restricted shares) are excluded from the calculation of the weighted-average number of shares outstanding for calculating basic EPS. To calculate diluted EPS, the number of shares is adjusted to include the number of additional shares that would have been outstanding if restricted units and shares were vested and stock options were exercised. In periods of loss, dilutive shares are excluded from the calculation of the diluted EPS and diluted EPS is computed in the same manner as basic EPS. The calculation of the basic and diluted EPS is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 88,663 55,909 237,718 95,232 Denominator (000): Basic average shares outstanding 26,873 25,148 26,803 24,151 Average number of dilutive shares relating to options 190 — 160 — Average number of dilutive shares relating to grants of restricted units and shares 175 149 127 105 Diluted average shares outstanding 27,238 25,297 27,090 24,256 Basic earnings per share attributable to Stewart 3.30 2.22 8.87 3.94 Diluted earnings per share attributable to Stewart 3.26 2.21 8.78 3.93 |
Contingent liabilities and comm
Contingent liabilities and commitments | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities and commitments | Contingent liabilities and commitments. In the ordinary course of business, the Company guarantees the third-party indebtedness of certain of its consolidated subsidiaries. As of September 30, 2021, the maximum potential future payments on the guarantees are not more than the related notes payable recorded in the condensed consolidated balance sheets. The Company also guarantees the indebtedness related to lease obligations of certain of its consolidated subsidiaries. The maximum future obligations arising from these lease-related guaran tees are not more than the Company’s future lease obligations, as presented on the condensed consolidated balance sheets, plus lease operating expenses. As of September 30, 2021, the Company also had unused letters of credit aggregating $4.9 million r elated to workers’ compensation and other insurance. The Company does not expect to make any payments on these guarantees. |
Regulatory and legal developmen
Regulatory and legal developments | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Regulatory and legal developments | Regulatory and legal developments. The Company is subject to claims and lawsuits arising in the ordinary course of its business, most of which involve disputed policy claims. In some of these lawsuits, the plaintiffs seek exemplary or treble damages in excess of policy limits. The Company does not expect that any of these ordinary course proceedings will have a material adverse effect on its consolidated financial condition or results of operations. The Company believes that it has adequate reserves for the various litigation matters and contingencies referred to in this paragraph and that the likely resolution of these matters will not materially affect its consolidated financial condition or results of operations. The Company is subject to non-ordinary course of business claims or lawsuits from time to time. To the extent the Company is currently the subject of these types of lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Additionally, the Company occasionally receives various inquiries from governmental regulators concerning practices in the insurance industry. Many of these practices do not concern title insurance. To the extent the Company is in receipt of such inquiries, it believes that, where appropriate, it has adequately reserved for these matters and does not anticipate that the outcome of these inquiries will materially affect its consolidated financial condition or results of operations. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Segment information. The Company reports two operating segments: title and ancillary services and corporate . The title segment provides services needed to transfer title to property in a real estate transaction and includes services such as searching, examining, closing and insuring the condition of the title to the property. In addition, the title segment includes home and personal insurance services, Internal Revenue Code Section 1031 tax-deferred exchanges, and digital customer engagement platform services. The ancillary services and corporate segment includes appraisal management services, search and valuation services, and online notarization and closing solutions, which are the principal offerings of ancillary services, expenses of the parent holding company, and certain other enterprise-wide overhead costs (net of centralized administrative services costs allocated to respective operating businesses). Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Title segment: Revenues 772,246 567,743 2,157,949 1,506,618 Depreciation and amortization 4,556 3,748 13,579 11,302 Income before taxes and noncontrolling interest 119,147 82,376 321,910 152,003 Ancillary services and corporate segment: Revenues 64,481 27,953 186,172 45,083 Depreciation and amortization 4,588 1,396 8,815 2,134 Income (loss) before taxes (2,701) (6,033) (2,006) (17,371) Consolidated Stewart: Revenues 836,727 595,696 2,344,121 1,551,701 Depreciation and amortization 9,144 5,144 22,394 13,436 Income before taxes and noncontrolling interest 116,446 76,343 319,904 134,632 The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Total revenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) United States 781,792 559,057 2,196,717 1,463,129 International 54,935 36,639 147,404 88,572 836,727 595,696 2,344,121 1,551,701 |
Other comprehensive (loss) inco
Other comprehensive (loss) income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Other comprehensive (loss) income | Other comprehensive (loss) income. Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (2,764) (581) (2,183) 1,164 244 920 Reclassification adjustment for realized gains and losses on investments (449) (94) (355) (221) (46) (175) (3,213) (675) (2,538) 943 198 745 Foreign currency translation adjustments (4,950) (707) (4,243) 4,384 540 3,844 Other comprehensive (loss) income (8,163) (1,382) (6,781) 5,327 738 4,589 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (13,076) (2,746) (10,330) 19,056 4,001 15,055 Reclassification adjustment for realized gains and losses on investments (1,162) (244) (918) (349) (73) (276) (14,238) (2,990) (11,248) 18,707 3,928 14,779 Foreign currency translation adjustments (839) 158 (997) (4,101) (697) (3,404) Other comprehensive (loss) income (15,077) (2,832) (12,245) 14,606 3,231 11,375 |
Interim financial statements (P
Interim financial statements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying interim financial statements were prepared by management, who is responsible for their integrity and objectivity. These financial statements have been prepared in conformity with the United States (U.S.) generally accepted accounting principles (GAAP), including management’s best judgments and estimates. In the opinion of management, all adjustments necessary for a fair presentation of this information for all interim periods, consisting only of normal recurring accruals, have been made. The Company’s results of operations for interim periods are not necessarily indicative of results for a full year and actual results could differ. |
Consolidation | Consolidation. The condensed consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns from 20% to 50% of the voting stock, are accounted for using the equity method. |
Restrictions on cash and investments | Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements for the funding of statutory premium reserves. Statutory reserve funds are required to be fully funded and invested in high-quality securities and short-term investments. Statutory reserve funds are not available for current claim payments, which must be funded from c urrent operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $524.5 million and $496.6 million at September 30, 2021 and December 31, 2020, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $24.0 million a nd $20.0 million at September 30, 2021 and December 31, 2020, respectively. Although these cash statutory reserve funds are not restricted or segregated in depository accounts, they are required to be held pursuant to state statutes. If the Company fails to maintain minimum investments or cash and cash equivalents sufficient to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. |
Fair value measurements | Fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. Under U.S. GAAP, there is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows: • Level 1 – quoted prices in active markets for identical assets or liabilities; • Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and • Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of operating revenues | The Company's operating revenues, summarized by type, are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Title insurance premiums: Direct 248,738 190,794 687,369 478,822 Agency 401,762 282,605 1,138,023 802,022 Escrow fees 63,455 53,384 183,638 127,903 Appraisal management, abstract and other ancillary services 85,345 42,627 234,677 81,533 Other revenues 30,487 21,266 69,471 52,926 829,787 590,676 2,313,178 1,543,206 |
Investments in debt and equit_2
Investments in debt and equity securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in equity securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 345 (41) 9,706 (7,136) Less: Net realized gains (losses) on equity securities sold during the period 26 (2) 69 (908) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) |
Investments in debt securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 The amortized costs and fair values of investments in debt securities are as follows: September 30, 2021 December 31, 2020 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 38,088 39,885 45,138 47,603 Corporate 280,090 292,119 285,962 305,450 Foreign 274,938 278,808 261,748 271,711 U.S. Treasury Bonds 6,426 6,466 6,564 6,622 599,542 617,278 599,412 631,386 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Proceeds from sales of debt securities 4,854 10,218 19,425 24,990 Proceeds from sales of equity securities 128 56 301 782 Total proceeds from sales of investments in securities 4,982 10,274 19,726 25,772 |
Gross unrealized gains and losses | Gross unrealized gains and losses on investments in debt securities are as follows: September 30, 2021 December 31, 2020 Gains Losses Gains Losses ($000 omitted) Municipal 1,798 1 2,465 — Corporate 12,630 601 19,594 106 Foreign 4,784 914 10,024 61 U.S. Treasury Bonds 60 20 82 24 19,272 1,536 32,165 191 |
Debt securities according to contractual terms | Debt securities as of September 30, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 64,866 65,678 After one year through five years 363,235 371,531 After five years through ten years 140,784 146,686 After ten years 30,657 33,383 599,542 617,278 |
Gross unrealized losses on investments and fair values of related securities | Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal 1 130 — — 1 130 Corporate 395 40,219 206 4,933 601 45,152 Foreign 888 83,259 26 246 914 83,505 U.S. Treasury Bonds 3 482 17 508 20 990 1,287 124,090 249 5,687 1,536 129,777 Gross unrealized losses on investments in debt securities and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Municipal — — — — — — Corporate 106 13,518 — — 106 13,518 Foreign 40 2,912 21 254 61 3,166 U.S. Treasury Bonds — — 24 1,022 24 1,022 146 16,430 45 1,276 191 17,706 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value on recurring basis | As of September 30, 2021, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 39,885 39,885 Corporate — 292,119 292,119 Foreign — 278,808 278,808 U.S. Treasury Bonds — 6,466 6,466 Equity securities 83,441 — 83,441 83,441 617,278 700,719 As of December 31, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Fair value measurements ($000 omitted) Investments in securities: Debt securities: Municipal — 47,603 47,603 Corporate — 305,450 305,450 Foreign — 271,711 271,711 U.S. Treasury Bonds — 6,622 6,622 Equity securities 53,001 — 53,001 53,001 631,386 684,387 |
Net realized and unrealized g_2
Net realized and unrealized gains (losses) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Gross realized investment and other gains and losses | Realized and unrealized gains and losses are detailed as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Realized gains 2,615 241 10,695 1,749 Realized losses (47) (209) (2,516) (1,556) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) 2,887 (7) 17,816 (6,035) |
Investments in equity securities still held | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 Investment gains and losses recognized related to investments in equity securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Net investment gains (losses) recognized on equity securities during the period 345 (41) 9,706 (7,136) Less: Net realized gains (losses) on equity securities sold during the period 26 (2) 69 (908) Net unrealized investment gains (losses) recognized on equity securities still held at end of period 319 (39) 9,637 (6,228) |
Proceeds from sale of investments in securities | The total fair values of the Company's investments in debt and equity securities are as follows: September 30, 2021 December 31, 2020 ($000 omitted) Investments in: Debt securities 617,278 631,386 Equity securities 83,441 53,001 700,719 684,387 The amortized costs and fair values of investments in debt securities are as follows: September 30, 2021 December 31, 2020 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Municipal 38,088 39,885 45,138 47,603 Corporate 280,090 292,119 285,962 305,450 Foreign 274,938 278,808 261,748 271,711 U.S. Treasury Bonds 6,426 6,466 6,564 6,622 599,542 617,278 599,412 631,386 Proceeds from sales of investments in securities are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Proceeds from sales of debt securities 4,854 10,218 19,425 24,990 Proceeds from sales of equity securities 128 56 301 782 Total proceeds from sales of investments in securities 4,982 10,274 19,726 25,772 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | The summary of changes in goodwill is as follows. Title Ancillary Services and Corporate Consolidated Total ($000 omitted) Balances at December 31, 2020 361,433 70,044 431,477 Acquisitions 103,744 9,777 113,521 Purchase accounting adjustments (4,492) (4,307) (8,799) Disposals (23) — (23) Balances at September 30, 2021 460,662 75,514 536,176 |
Estimated title losses (Tables)
Estimated title losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Summary of estimated title losses | A summary of estimated title losses for the nine months ended September 30 is as follows: 2021 2020 ($000 omitted) Balances at January 1 496,275 459,053 Provisions: Current year 91,259 68,063 Previous policy years 1,428 537 Total provisions 92,687 68,600 Payments, net of recoveries: Current year (12,181) (9,595) Previous policy years (40,745) (49,390) Total payments, net of recoveries (52,926) (58,985) Effects of changes in foreign currency exchange rates (1,485) (1,856) Balances at September 30 534,551 466,812 Loss ratios as a percentage of title operating revenues: Current year provisions 4.3 % 4.5 % Total provisions 4.3 % 4.6 % |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of the basic and diluted EPS is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted, except per share) Numerator: Net income attributable to Stewart 88,663 55,909 237,718 95,232 Denominator (000): Basic average shares outstanding 26,873 25,148 26,803 24,151 Average number of dilutive shares relating to options 190 — 160 — Average number of dilutive shares relating to grants of restricted units and shares 175 149 127 105 Diluted average shares outstanding 27,238 25,297 27,090 24,256 Basic earnings per share attributable to Stewart 3.30 2.22 8.87 3.94 Diluted earnings per share attributable to Stewart 3.26 2.21 8.78 3.93 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Selected statement of income information related to segments | Selected statement of income information related to these segments is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) Title segment: Revenues 772,246 567,743 2,157,949 1,506,618 Depreciation and amortization 4,556 3,748 13,579 11,302 Income before taxes and noncontrolling interest 119,147 82,376 321,910 152,003 Ancillary services and corporate segment: Revenues 64,481 27,953 186,172 45,083 Depreciation and amortization 4,588 1,396 8,815 2,134 Income (loss) before taxes (2,701) (6,033) (2,006) (17,371) Consolidated Stewart: Revenues 836,727 595,696 2,344,121 1,551,701 Depreciation and amortization 9,144 5,144 22,394 13,436 Income before taxes and noncontrolling interest 116,446 76,343 319,904 134,632 |
Revenues generated in the United States and all international operations | evenues generated in the United States and all international operations are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 ($000 omitted) United States 781,792 559,057 2,196,717 1,463,129 International 54,935 36,639 147,404 88,572 836,727 595,696 2,344,121 1,551,701 |
Other comprehensive (loss) in_2
Other comprehensive (loss) income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of changes in the balances of each component of other comprehensive (loss) income | Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: Three Months Ended Three Months Ended Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (2,764) (581) (2,183) 1,164 244 920 Reclassification adjustment for realized gains and losses on investments (449) (94) (355) (221) (46) (175) (3,213) (675) (2,538) 943 198 745 Foreign currency translation adjustments (4,950) (707) (4,243) 4,384 540 3,844 Other comprehensive (loss) income (8,163) (1,382) (6,781) 5,327 738 4,589 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (13,076) (2,746) (10,330) 19,056 4,001 15,055 Reclassification adjustment for realized gains and losses on investments (1,162) (244) (918) (349) (73) (276) (14,238) (2,990) (11,248) 18,707 3,928 14,779 Foreign currency translation adjustments (839) 158 (997) (4,101) (697) (3,404) Other comprehensive (loss) income (15,077) (2,832) (12,245) 14,606 3,231 11,375 |
Interim financial statements -
Interim financial statements - Additional Information (Details) - USD ($) | Oct. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 27, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | |||||
Investments restricted for statutory reserve funds | $ 524,500,000 | $ 496,600,000 | |||
Restricted cash and cash equivalent | 24,000,000 | $ 20,000,000 | |||
Term loan draw | $ 331,755,000 | $ 2,361,000 | |||
Line of credit | Current amended credit agreement | Subsequent event | |||||
Short-term Debt [Line Items] | |||||
Available unsecured line of credit | $ 350,000,000 | ||||
Line of credit paid off | $ 273,900,000 | ||||
Line of credit | New amended credit agreement | Revolving credit facility | Subsequent event | |||||
Short-term Debt [Line Items] | |||||
Available unsecured line of credit | 200,000,000 | ||||
Option to increase | 125,000,000 | ||||
Line of credit | New amended credit agreement | Delayed-draw term loan | Subsequent event | |||||
Short-term Debt [Line Items] | |||||
Available unsecured line of credit | $ 400,000,000 | ||||
Debt term | 364 days | ||||
Term loan draw | $ 370,000,000 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 829,787 | $ 590,676 | $ 2,313,178 | $ 1,543,206 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 248,738 | 190,794 | 687,369 | 478,822 |
Agency | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 401,762 | 282,605 | 1,138,023 | 802,022 |
Escrow fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,455 | 53,384 | 183,638 | 127,903 |
Appraisal management, abstract and other ancillary services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 85,345 | 42,627 | 234,677 | 81,533 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 30,487 | $ 21,266 | $ 69,471 | $ 52,926 |
Investments in debt and equit_3
Investments in debt and equity securities - Investments in Debt and Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities | $ 617,278 | $ 631,386 |
Equity securities | 83,441 | 53,001 |
Investments in debt and equity securities | $ 700,719 | $ 684,387 |
Investments in debt and equit_4
Investments in debt and equity securities - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($)investment | Dec. 31, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment (losses) gains on equity securities held | $ | $ 13.9 | $ 4.4 |
Number of investments in an unrealized loss position | 70 | |
Number of investments in an unrealized loss positions for more than 12 months | 7 |
Investments in debt and equit_5
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 599,542 | $ 599,412 |
Fair values | 617,278 | 631,386 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 38,088 | 45,138 |
Fair values | 39,885 | 47,603 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 280,090 | 285,962 |
Fair values | 292,119 | 305,450 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 274,938 | 261,748 |
Fair values | 278,808 | 271,711 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 6,426 | 6,564 |
Fair values | $ 6,466 | $ 6,622 |
Investments in debt and equit_6
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 19,272 | $ 32,165 |
Losses | 1,536 | 191 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 1,798 | 2,465 |
Losses | 1 | 0 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 12,630 | 19,594 |
Losses | 601 | 106 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 4,784 | 10,024 |
Losses | 914 | 61 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 60 | 82 |
Losses | $ 20 | $ 24 |
Investments in debt and equit_7
Investments in debt and equity securities - Debt Securities According to Contractual Terms (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized costs | ||
In one year or less | $ 64,866 | |
After one year through five years | 363,235 | |
After five years through ten years | 140,784 | |
After ten years | 30,657 | |
Amortized costs | 599,542 | $ 599,412 |
Fair values | ||
In one year or less | 65,678 | |
After one year through five years | 371,531 | |
After five years through ten years | 146,686 | |
After ten years | 33,383 | |
Fair values | $ 617,278 | $ 631,386 |
Investments in debt and equit_8
Investments in debt and equity securities - Gross Unrealized Losses on Investments and Fair Values of Related Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Losses | ||
Less than 12 months | $ 1,287 | $ 146 |
More than 12 months | 249 | 45 |
Total | 1,536 | 191 |
Fair values | ||
Less than 12 months | 124,090 | 16,430 |
More than 12 months | 5,687 | 1,276 |
Total | 129,777 | 17,706 |
Municipal | ||
Losses | ||
Less than 12 months | 1 | 0 |
More than 12 months | 0 | 0 |
Total | 1 | 0 |
Fair values | ||
Less than 12 months | 130 | 0 |
More than 12 months | 0 | 0 |
Total | 130 | 0 |
Corporate | ||
Losses | ||
Less than 12 months | 395 | 106 |
More than 12 months | 206 | 0 |
Total | 601 | 106 |
Fair values | ||
Less than 12 months | 40,219 | 13,518 |
More than 12 months | 4,933 | 0 |
Total | 45,152 | 13,518 |
Foreign | ||
Losses | ||
Less than 12 months | 888 | 40 |
More than 12 months | 26 | 21 |
Total | 914 | 61 |
Fair values | ||
Less than 12 months | 83,259 | 2,912 |
More than 12 months | 246 | 254 |
Total | 83,505 | 3,166 |
U.S. Treasury Bonds | ||
Losses | ||
Less than 12 months | 3 | 0 |
More than 12 months | 17 | 24 |
Total | 20 | 24 |
Fair values | ||
Less than 12 months | 482 | 0 |
More than 12 months | 508 | 1,022 |
Total | $ 990 | $ 1,022 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 617,278 | $ 631,386 |
Equity securities | 83,441 | 53,001 |
Investments in debt and equity securities | 700,719 | 684,387 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 83,441 | 53,001 |
Investments in debt and equity securities | 83,441 | 53,001 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Investments in debt and equity securities | 617,278 | 631,386 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 39,885 | 47,603 |
Municipal | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Municipal | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 39,885 | 47,603 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 292,119 | 305,450 |
Corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 292,119 | 305,450 |
Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 278,808 | 271,711 |
Foreign | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Foreign | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 278,808 | 271,711 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 6,466 | 6,622 |
U.S. Treasury Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
U.S. Treasury Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 6,466 | $ 6,622 |
Net realized and unrealized g_3
Net realized and unrealized gains (losses) - Gross Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains | $ 2,615 | $ 241 | $ 10,695 | $ 1,749 |
Realized losses | (47) | (209) | (2,516) | (1,556) |
Net unrealized investment gains (losses) recognized on equity securities still held at end of period | 319 | (39) | 9,637 | (6,228) |
Investment and other gains (losses) – net | $ 2,887 | $ (7) | $ 17,816 | $ (6,035) |
Net realized and unrealized g_4
Net realized and unrealized gains (losses) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net realized losses from change in fair value of contingent consideration liabilities | $ 2.5 | ||
Gains on sales of buildings | $ 7.3 | ||
Loss on disposal of equity method investment | $ 2.5 | ||
Gains from settlements of equity investments with no previously readily determinable fair values | $ 1.3 | ||
Net realized losses from sale of securities investments | $ 1.1 |
Net realized and unrealized g_5
Net realized and unrealized gains (losses) - Net Gains on Investments in Equity Securities Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses) recognized on equity securities during the period | $ 345 | $ (41) | $ 9,706 | $ (7,136) |
Less: Net realized gains (losses) on equity securities sold during the period | 26 | (2) | 69 | (908) |
Net unrealized investment gains (losses) recognized on equity securities still held at end of period | $ 319 | $ (39) | $ 9,637 | $ (6,228) |
Net realized and unrealized g_6
Net realized and unrealized gains (losses) - Proceeds from the Sale of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of debt securities | $ 4,854 | $ 10,218 | $ 19,425 | $ 24,990 |
Proceeds from sales of equity securities | 128 | 56 | 301 | 782 |
Total proceeds from sales of investments in securities | $ 4,982 | $ 10,274 | $ 19,726 | $ 25,772 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balances | $ 431,477 |
Acquisitions | 113,521 |
Purchase accounting adjustments | (8,799) |
Disposals | (23) |
Ending balance | 536,176 |
Title | |
Goodwill [Roll Forward] | |
Beginning balances | 361,433 |
Acquisitions | 103,744 |
Purchase accounting adjustments | (4,492) |
Disposals | (23) |
Ending balance | 460,662 |
Ancillary Services and Corporate | |
Goodwill [Roll Forward] | |
Beginning balances | 70,044 |
Acquisitions | 9,777 |
Purchase accounting adjustments | (4,307) |
Disposals | 0 |
Ending balance | $ 75,514 |
Goodwill and other intangible_4
Goodwill and other intangible assets - Additional Information (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Sep. 30, 2021 |
Title | ||
Goodwill [Line Items] | ||
Other intangible assets acquisitions | $ 27.2 | |
Ancillary Services and Corporate | ||
Goodwill [Line Items] | ||
Other intangible assets acquisitions | $ 18.3 | |
Subsequent event | ||
Goodwill [Line Items] | ||
Acquisition | $ 192 |
Estimated title losses (Details
Estimated title losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balances at beginning of period | $ 496,275 | $ 459,053 |
Provisions: | ||
Current year | 91,259 | 68,063 |
Previous policy years | 1,428 | 537 |
Total provisions | 92,687 | 68,600 |
Payments, net of recoveries: | ||
Current year | (12,181) | (9,595) |
Previous policy years | (40,745) | (49,390) |
Total payments, net of recoveries | (52,926) | (58,985) |
Effects of changes in foreign currency exchange rates | (1,485) | (1,856) |
Balances at end of period | $ 534,551 | $ 466,812 |
Loss ratios as a percentage of title operating revenues: | ||
Current year provisions | 4.30% | 4.50% |
Total provisions | 4.30% | 4.60% |
Share-based payments (Details)
Share-based payments (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2019 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options granted in the period | $ 1.3 | $ 3.4 | |
Number of options granted in the period (in shares) | 141,000 | 648,000 | |
Average grant price (in usd per share) | $ 9.24 | $ 5.32 | |
Strike price (USD per share) | $ 53.24 | $ 39.76 | |
Time-based shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance-based shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award service period | 3 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Stock options | Tranche one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 20.00% | ||
Stock options | Tranche two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 30.00% | ||
Stock options | Tranche three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 50.00% | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value at grant date | $ 9.2 | $ 3.8 | |
Share-based incentives, shares issued | 170,000 | 96,000 | |
Average grant price (in usd per share) | $ 53.70 | $ 39.36 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income attributable to Stewart | $ 88,663 | $ 55,909 | $ 237,718 | $ 95,232 |
Denominator (000): | ||||
Basic average shares outstanding (in shares) | 26,873 | 25,148 | 26,803 | 24,151 |
Average number of dilutive shares relating to options (in shares) | 190 | 0 | 160 | 0 |
Average number of dilutive shares relating to grants of restricted units and shares (in shares) | 175 | 149 | 127 | 105 |
Diluted average shares outstanding (in shares) | 27,238 | 25,297 | 27,090 | 24,256 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 3.30 | $ 2.22 | $ 8.87 | $ 3.94 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 3.26 | $ 2.21 | $ 8.78 | $ 3.93 |
Contingent liabilities and co_2
Contingent liabilities and commitments (Details) $ in Millions | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee of indebtedness, relating to unused letters of credit | $ 4.9 |
Segment information - Additiona
Segment information - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment information - Selected
Segment information - Selected statement of Income Information Related to Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 836,727 | $ 595,696 | $ 2,344,121 | $ 1,551,701 |
Depreciation and amortization | 9,144 | 5,144 | 22,394 | 13,436 |
Income (loss) before taxes | 116,446 | 76,343 | 319,904 | 134,632 |
Title segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 772,246 | 567,743 | 2,157,949 | 1,506,618 |
Depreciation and amortization | 4,556 | 3,748 | 13,579 | 11,302 |
Income (loss) before taxes | 119,147 | 82,376 | 321,910 | 152,003 |
Ancillary services and corporate segment | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 64,481 | 27,953 | 186,172 | 45,083 |
Depreciation and amortization | 4,588 | 1,396 | 8,815 | 2,134 |
Income (loss) before taxes | $ (2,701) | $ (6,033) | $ (2,006) | $ (17,371) |
Segment information - Revenues
Segment information - Revenues Generated in United States and All International Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 836,727 | $ 595,696 | $ 2,344,121 | $ 1,551,701 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 781,792 | 559,057 | 2,196,717 | 1,463,129 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 54,935 | $ 36,639 | $ 147,404 | $ 88,572 |
Other comprehensive (loss) in_3
Other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Before-Tax Amount | ||||
Other comprehensive (loss) income | $ (8,163) | $ 5,327 | $ (15,077) | $ 14,606 |
Tax Expense (Benefit) | ||||
Other comprehensive (loss) income | (1,382) | 738 | (2,832) | 3,231 |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income, net of taxes: | (6,781) | 4,589 | (12,245) | 11,375 |
Net unrealized gains and losses on investments | ||||
Before-Tax Amount | ||||
Change in net unrealized gains and losses on investments | (2,764) | 1,164 | (13,076) | 19,056 |
Reclassification adjustment for realized gains and losses on investments | (449) | (221) | (1,162) | (349) |
Other comprehensive (loss) income | (3,213) | 943 | (14,238) | 18,707 |
Tax Expense (Benefit) | ||||
Change in net unrealized gains and losses on investments | (581) | 244 | (2,746) | 4,001 |
Reclassification adjustment for realized gains and losses on investments | (94) | (46) | (244) | (73) |
Other comprehensive (loss) income | (675) | 198 | (2,990) | 3,928 |
Net-of-Tax Amount | ||||
Change in net unrealized gains and losses on investments | (2,183) | 920 | (10,330) | 15,055 |
Reclassification adjustment for realized gains and losses on investments | (355) | (175) | (918) | (276) |
Other comprehensive (loss) income, net of taxes: | (2,538) | 745 | (11,248) | 14,779 |
Foreign currency translation adjustments | ||||
Before-Tax Amount | ||||
Other comprehensive (loss) income | (4,950) | 4,384 | (839) | (4,101) |
Tax Expense (Benefit) | ||||
Other comprehensive (loss) income | (707) | 540 | 158 | (697) |
Net-of-Tax Amount | ||||
Other comprehensive (loss) income, net of taxes: | $ (4,243) | $ 3,844 | $ (997) | $ (3,404) |