Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.5 | ||
Entity Common Stock, Shares Outstanding | 26,977,956 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement (the Proxy Statement), in connection with the Registrant's 2022 Annual Meeting of Stockholders, are incorporated herein by reference in Part III of this document. | ||
Entity Central Index Key | 0000094344 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Operating revenues | $ 3,264,616 | $ 2,271,503 | $ 1,877,453 |
Investment income | 16,855 | 18,607 | 19,795 |
Net realized and unrealized gains (losses) | 24,321 | (1,678) | 42,760 |
Revenues | 3,305,792 | 2,288,432 | 1,940,008 |
Expenses | |||
Amounts retained by agencies | 1,300,431 | 944,480 | 799,229 |
Employee costs | 776,968 | 613,195 | 567,173 |
Other operating expenses | 626,762 | 375,188 | 345,349 |
Title losses and related claims | 126,243 | 115,224 | 84,423 |
Depreciation and amortization | 36,386 | 19,216 | 22,526 |
Interest | 5,031 | 2,624 | 4,341 |
Total expenses | 2,871,821 | 2,069,927 | 1,823,041 |
Income before taxes and noncontrolling interests | 433,971 | 218,505 | 116,967 |
Income tax expense | (93,989) | (48,833) | (26,695) |
Net income | 339,982 | 169,672 | 90,272 |
Less net income attributable to noncontrolling interests | 16,766 | 14,767 | 11,657 |
Net income attributable to Stewart | 323,216 | 154,905 | 78,615 |
Net income attributable to Stewart | |||
Net income | 339,982 | 169,672 | 90,272 |
Other comprehensive (loss) income, net of taxes: | |||
Foreign currency translation adjustments | (679) | 4,789 | 6,478 |
Change in net unrealized gains and losses on investments | (13,650) | 15,443 | 15,184 |
Reclassification adjustment for realized gains and losses on investments | (2,440) | (511) | 410 |
Other comprehensive (loss) income, net of taxes | (16,769) | 19,721 | 22,072 |
Comprehensive income | 323,213 | 189,393 | 112,344 |
Less comprehensive income attributable to noncontrolling interests | 16,766 | 14,767 | 11,657 |
Comprehensive income attributable to Stewart | $ 306,447 | $ 174,626 | $ 100,687 |
Basic average shares outstanding (in shares) | 26,822 | 24,793 | 23,611 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 12.05 | $ 6.25 | $ 3.33 |
Diluted average shares outstanding (in shares) | 27,168 | 24,913 | 23,753 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 11.90 | $ 6.22 | $ 3.31 |
Direct operations | |||
Revenues | |||
Operating revenues | $ 1,422,244 | $ 1,037,852 | $ 869,457 |
Agency operations | |||
Revenues | |||
Operating revenues | 1,582,640 | 1,151,030 | 970,540 |
Ancillary services | |||
Revenues | |||
Operating revenues | $ 259,732 | $ 82,621 | $ 37,456 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 485,919 | $ 432,683 |
Short-term investments | 17,650 | 20,678 |
Investments in debt and equity securities, at fair value: | ||
Statutory reserve funds | 523,454 | 496,594 |
Other | 155,760 | 187,793 |
Investments in debt and equity securities | 679,214 | 684,387 |
Receivables: | ||
Premiums from agencies | 45,428 | 34,507 |
Trade and other | 75,079 | 56,054 |
Income taxes | 5,420 | 501 |
Notes | 1,124 | 1,557 |
Allowance for uncollectible amounts | (7,711) | (4,807) |
Total receivables | 119,340 | 87,812 |
Property and equipment, at cost: | ||
Land | 2,545 | 2,964 |
Buildings | 19,303 | 22,598 |
Furniture and equipment | 216,261 | 168,147 |
Accumulated depreciation | (165,653) | (142,038) |
Total property and equipment, at cost | 72,456 | 51,671 |
Operating lease assets | 134,578 | 106,479 |
Title plants, at cost | 76,859 | 72,863 |
Investments in investees, on an equity method basis | 4,754 | 6,765 |
Goodwill | 924,837 | 431,477 |
Intangible assets, net of amortization | 229,804 | 37,382 |
Deferred tax assets, net | 3,846 | 4,330 |
Other assets | 64,105 | 42,048 |
Total assets | 2,813,362 | 1,978,575 |
Liabilities | ||
Notes payable | 483,491 | 101,773 |
Accounts payable and accrued liabilities | 287,326 | 225,180 |
Operating lease liabilities | 149,417 | 119,089 |
Estimated title losses | 549,614 | 496,275 |
Deferred tax liabilities, net | 48,779 | 23,852 |
Total liabilities | 1,518,627 | 966,169 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Common Stock – $1 par, authorized 51,500,000; issued 27,245,591 and 27,080,403; outstanding 26,893,430 and 26,728,242, respectively | 27,246 | 27,080 |
Additional paid-in capital | 282,376 | 274,857 |
Retained earnings | 974,800 | 688,819 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation adjustments | (8,917) | (8,238) |
Net unrealized gains on debt securities investments | 9,170 | 25,260 |
Treasury stock – 352,161 common shares, at cost, for both 2021 and 2020 (including 145,820 shares held by a subsidiary) | (2,666) | (2,666) |
Total stockholders’ equity | 1,282,009 | 1,005,112 |
Noncontrolling interests | 12,726 | 7,294 |
Total stockholders’ equity | 1,294,735 | 1,012,406 |
Total liabilities and stockholders' equity | $ 2,813,362 | $ 1,978,575 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 51,500,000 | 51,500,000 |
Common stock, shares issued (in shares) | 27,245,591 | 27,080,403 |
Common stock, shares outstanding (in shares) | 26,893,430 | 26,728,242 |
Subsidiary, Sale of Stock [Line Items] | ||
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Subsidiaries | ||
Subsidiary, Sale of Stock [Line Items] | ||
Treasury stock, common shares (in shares) | 145,820 | 145,820 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of net income to cash provided by operating activities: | |||
Net income | $ 339,982 | $ 169,672 | $ 90,272 |
Add (deduct): | |||
Depreciation and amortization | 36,386 | 19,216 | 22,526 |
Provision for bad debt | 3,023 | 649 | 1,672 |
Net realized and unrealized (gains) losses | (24,321) | 1,678 | 7,240 |
Amortization of net premium on debt securities investments | 3,624 | 4,261 | 4,939 |
Payments for title losses less than (in excess of) provisions | 54,744 | 33,229 | (6,585) |
Adjustments for insurance recoveries of title losses | (220) | 228 | 181 |
Increase in receivables – net | (18,822) | (6,598) | (2,917) |
(Increase) decrease in other assets – net | (5,931) | (5,380) | 6,865 |
(Decrease) increase in payables and accrued liabilities – net | (22,316) | 62,738 | 31,471 |
Change in net deferred income taxes | 12,721 | (9,747) | 8,669 |
Net income from equity investees | (9,488) | (3,504) | (3,044) |
Dividends received from equity investees | 9,180 | 3,704 | 2,721 |
Stock-based compensation expense | 11,966 | 5,751 | 2,097 |
Other – net | (237) | (91) | 252 |
Cash provided by operating activities | 390,291 | 275,806 | 166,359 |
Investing activities: | |||
Proceeds from sales of investments in securities | 69,293 | 37,240 | 50,605 |
Proceeds from matured investments in debt securities | 74,528 | 58,729 | 48,716 |
Purchases of investments in securities | (143,925) | (118,301) | (77,489) |
Net sales (purchases) of short-term investments | 2,358 | 3,894 | (639) |
Purchases of property and equipment | (39,799) | (14,992) | (17,075) |
Proceeds from the sale of land, buildings, property and equipment, and real estate | 10,682 | 230 | 1,349 |
Net cash paid for acquisition of businesses | (599,984) | (199,537) | 0 |
Other – net | (18,429) | 1,367 | 1,573 |
Cash (used) provided by investing activities | (645,276) | (231,370) | 7,040 |
Financing activities: | |||
Proceeds from notes payable | 1,197,351 | 16,456 | 30,464 |
Payments on notes payable | (809,816) | (25,581) | (27,868) |
Purchase of remaining interest of consolidated subsidiaries | (5,616) | 0 | 0 |
Cash dividends paid | (36,637) | (30,226) | (28,345) |
Distributions to noncontrolling interests | (16,407) | (13,944) | (11,506) |
Payment of acquisition contingent consideration | (11,560) | 0 | 0 |
Issuance of Common Stock | 0 | 108,961 | 0 |
Repurchases of Common Stock | (2,252) | (1,054) | (532) |
Proceeds from stock option and employee stock purchase plan exercises | 2,715 | 0 | 0 |
Other - net | (7,404) | (311) | 25 |
Cash provided (used) by financing activities | 310,374 | 54,301 | (37,762) |
Effects of changes in foreign currency exchange rates | (2,153) | 3,337 | 2,905 |
Increase in cash and cash equivalents | 53,236 | 102,074 | 138,542 |
Cash and cash equivalents at beginning of year | 432,683 | 330,609 | 192,067 |
Cash and cash equivalents at end of year | 485,919 | 432,683 | 330,609 |
Net changes in financial statement amounts due to acquisition of businesses: | |||
Goodwill acquired | 493,383 | 182,587 | 0 |
Intangible assets acquired | 211,591 | 37,835 | 0 |
Receivables and other assets acquired | 5,316 | 13,677 | 0 |
Fixed assets and title plants acquired | 14,277 | 0 | 0 |
Liabilities recognized | (102,047) | (34,562) | 0 |
Deferred tax liabilities, net recognized | (16,587) | 0 | 0 |
Minority interest liabilities recognized | (5,949) | 0 | 0 |
Net cash paid for acquisition of subsidiaries and other assets | 599,984 | 199,537 | 0 |
Income taxes paid, net | 106,101 | 44,756 | 11,992 |
Interest paid | $ 2,828 | $ 2,604 | $ 4,241 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained Earnings | Treasury stock | Noncontrolling interests |
Beginning balance at Dec. 31, 2018 | $ 679,837 | $ 24,072 | $ 162,642 | $ (24,771) | $ 514,248 | $ (2,666) | $ 6,312 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 78,615 | 78,615 | |||||
Dividends on Common Stock | (28,471) | (28,471) | |||||
Stock-based compensation | 2,097 | 3 | 2,094 | ||||
Stock repurchases | (532) | (13) | (519) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 15,184 | 15,184 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | 410 | 410 | |||||
Foreign currency translation adjustments (net of tax) | 6,478 | 6,478 | |||||
Net income attributable to noncontrolling interests | 11,657 | 11,657 | |||||
Distributions to noncontrolling interests | (11,506) | (11,506) | |||||
Net effect of changes in ownership and other | (10) | (10) | |||||
Ending balance at Dec. 31, 2019 | 753,759 | 24,062 | 164,217 | (2,699) | 564,392 | (2,666) | 6,453 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 154,905 | 154,905 | |||||
Dividends on Common Stock | (30,478) | (30,478) | |||||
Issuance of Common Stock | 108,961 | 3,026 | 105,935 | ||||
Stock-based compensation | 5,751 | 18 | 5,733 | ||||
Stock repurchases | (1,054) | (26) | (1,028) | ||||
Change in net unrealized gains and losses on investments, net of taxes | 15,443 | 15,443 | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (511) | (511) | |||||
Foreign currency translation adjustments (net of tax) | 4,789 | 4,789 | |||||
Net income attributable to noncontrolling interests | 14,767 | 14,767 | |||||
Distributions to noncontrolling interests | (13,944) | (13,944) | |||||
Net effect of changes in ownership and other | 18 | 18 | |||||
Ending balance at Dec. 31, 2020 | 1,012,406 | 27,080 | 274,857 | 17,022 | 688,819 | (2,666) | 7,294 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 323,216 | 323,216 | |||||
Dividends on Common Stock | (37,235) | (37,235) | |||||
Stock-based compensation | 11,966 | 144 | 11,822 | ||||
Stock option and employee stock purchase plan exercises | 2,715 | 64 | 2,651 | ||||
Stock repurchases | (2,252) | (42) | (2,210) | ||||
Purchase of remaining interest of consolidated subsidiary | (5,616) | (4,744) | (872) | ||||
Change in net unrealized gains and losses on investments, net of taxes | (13,650) | (13,650) | |||||
Reclassification adjustment for realized gains and losses on investments, net of taxes | (2,440) | (2,440) | |||||
Foreign currency translation adjustments (net of tax) | (679) | (679) | |||||
Net income attributable to noncontrolling interests | 16,766 | 16,766 | |||||
Distributions to noncontrolling interests | (16,407) | (16,407) | |||||
Net effect of changes in ownership and other | 5,945 | 5,945 | |||||
Ending balance at Dec. 31, 2021 | $ 1,294,735 | $ 27,246 | $ 282,376 | $ 253 | $ 974,800 | $ (2,666) | $ 12,726 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock per share (in usd per share) | $ 1.37 | $ 1.20 | $ 1.20 |
General
General | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
General | General. Stewart Information Services Corporation, through its subsidiaries (collectively, the Company), is primarily engaged in the business of providing title insurance and real estate transaction related services. The Company is a global real estate services company, offering products and services through its directly owned policy-issuing offices, network of independent agencies and other businesses within the Company. The Company provides its title products and services to homebuyers and sellers; residential and commercial real estate professionals; mortgage lenders and servicers; title agencies and real estate attorneys; and home builders. The Company also provides appraisal management services, online notarization and closing services, search and valuation services, and credit and real estate information services (referred to as ancillary services operations). The Company operates in the United States (U.S.) and internationally, primarily in Canada, the United Kingdom and Australia. Approximately 52% of consolidated title revenues for the year ended December 31, 2021 were generated in Texas, New York, California, Florida, Arizona, Colorado and international markets (principally Canada). A. Management’s responsibility. The accompanying consolidated financial statements were prepared by management, who is responsible for their integrity and objectivity. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP), including management’s best judgments and estimates. Actual results could differ from those estimates. B. Consolidation. The 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 20% through 50% of the entity, are accounted for using the equity method. C. Statutory accounting. Stewart Title Guaranty Company (Guaranty) and other title insurance underwriters owned by the Company prepare financial statements in accordance with statutory accounting practices prescribed or permitted by regulatory authorities. In conforming the statutory financial statements to GAAP, statutory premium reserves and reserves for known title losses are eliminated and, in substitution, amounts are established for estimated title losses (Note 1-E), for which the net effect, after providing for income taxes, is included in the consolidated statements of income and comprehensive income. Additionally, investments in debt securities, which are carried at amortized cost for statutory accounting, are reported at fair value and the net unrealized gains and losses, net of applicable deferred taxes, on the investments are included as a component of accumulated other comprehensive income (loss) (AOCI) within stockholders’ equity. D. Revenues. Direct premiums - Premiums from title insurance policies directly issued or issued by affiliate offices are recognized at the time of the closing of the related real estate transaction. Agency premiums - Premiums from title insurance policies written by independent agencies are recognized when the policies are reported to the Company. In addition, where reasonable estimates can be made, the Company accrues for policies issued but not reported until after period end. The Company believes that reasonable estimates can be made when recent and consistent policy issuance information is available. Estimates are based on historical reporting patterns and other information obtained about independent agencies, as well as current trends in direct operations and in the title industry. In this accrual, future transactions are not being estimated. The Company is estimating revenues on policies that have already been issued by independent agencies but not yet reported to or received by the Company. Escrow fees - An escrow is a transaction pursuant to an agreement of a buyer, seller, borrower, or lender wherein an impartial third party, such as the Company, acts in a fiduciary capacity on behalf of the parties in accordance with the terms of such agreement in order to accomplish the directions stated therein. Services provided include, among others, acting as escrow or other fiduciary agent, obtaining releases, and conducting the actual closing or settlement. Escrow fees are recognized upon closing of the escrow, which is generally at the same time of the closing of the related real estate transaction. Appraisal management, abstract, and online notarization and closing services - Appraisal management and abstract services are primarily related to establishing the ownership, legal status and valuation of the property in a real estate transaction. In these cases, the Company does not issue a title insurance policy or perform duties of an escrow agent. Online notarization and closing services provide customers with streamlined, secure and paperless experience for notarization, signing and closing transactions. Revenues from these services are recognized upon delivery of the service to the customer. Other revenues - These revenues consist primarily of fees related to tax-deferred property exchange services, credit and real estate information services, income from equity investees, and other services related to real estate closing transactions. For those products and services that are delivered at a point in time, the related revenue is recognized upon delivery based on the unit price of the product or service. For those products and services where delivery occurs over time, the related revenue is recognized ratably over the duration of the subscription. Refer to Note 17 and Note 18 for the breakdown of the Company's operating revenues by type and by segment, respectively. E. Title losses and related claims. The Company's liability for estimated title losses comprises estimates of both known claims and incurred but unreported claims expected to be paid in the future for policies issued as of the balance sheet date. This liability represents the aggregate future payments, net of recoveries, that the Company expects to make related to policy claims. The Company’s method for recording reserves for title losses on both an interim and annual basis begins with the calculation of its current loss provision rate, which is applied to the Company’s current premiums resulting in a title loss expense for the period, except for large claims and escrow losses. This loss provision rate is set to provide for estimated losses on current year policies and is determined using moving average ratios of recent actual policy loss payment experience (net of recoveries) to premium revenues. At each quarter end, the Company’s recorded reserve for title losses is based on the prior period’s reserve balance for claim losses, increased by the current period provision and reduced by actual paid claims. The resulting reserve balance is compared by management to its actuarially-based calculation of the ending reserve balance necessary to provide for future reported title losses. The actuarially-based calculation is a paid loss development calculation where loss development factors are selected based on company data and input from the Company’s third-party actuaries. The Company also obtains input from third-party actuaries in the form of a reserve analysis utilizing generally accepted actuarial methods. While the Company is responsible for determining its loss reserves, it utilizes this actuarial input to assess the overall reasonableness of its reserve estimation. If the Company’s r ecorded reserve amount is not at the third-party actuarial point estimate, but is within a reasonable range (+7.0%/-4.0%) of its actuarially-based reserve calculation and the actuary’s point estimate, the Company’s management assesses th e major factors contributing to the different reserve estimates in order to determine the overall reasonableness of its recorded reserve, as well as the position of the recorded reserves relative to the point estimate and the estimated range of reserves. The major factors considered can change from period to period and include items such as current trends in the real estate industry (which management can assess although there is a time lag in the development of this data for use by the actuary), the size and types of claims reported and changes in the Company’s claims management process. If the recorded amount is not within a reasonable range of the Company’s third-party actuary’s point estimate, the Company will adjust the recorded reserves in the current period and reassess the provision rate on a prospective basis. Once the Company’s reserve for title losses is recorded, it is reduced in future periods as a result of claims payments and may be increased or reduced by revisions to the Company’s estimate of the overall level of required reserves. Large claims (those exceeding $1.0 million on a single claim), including large title losses due to independent agency defalcations, are analyzed and reserved for separately due to the higher dollar amount of loss, lower volume of claims reported and sporadic reporting of such claims. Due to the inherent uncertainty in predicting future title policy losses, significant judgment is required by both the Company’s management and its third-party actuaries in estimating reserves. As a consequence, the Company’s ultimate liability may be materially greater or less than its current reserves and/or its third-party actuary’s calculated estimate. F. Cash equivalents. Cash equivalents are highly liquid investments with insignificant interest rate risks and maturities of three months or less at the time of acquisition. G. Short-term investments. Short-term investments comprise time deposits with banks, federal government obligations and other investments maturing in less than one year. H. Investments in debt and equity securities. Investments in debt and equity securities are carried at fair value. Investments in debt securities are classified as available-for-sale and the net unrealized gains and losses on such investments, net of applicable deferred taxes, are included as a component of AOCI within stockholders' equity. Realized gains and losses on sales of investments are determined using the specific identification method. At the time unrealized gains and losses become realized, they are reclassified from AOCI using the specific identification method. Credit losses related to investments in debt securities are recognized through an allowance account, which is charged through income but may be reversed in future periods if no longer required. Fair value changes relating to investments in equity securities are recognized as part of net realized and unrealized gains and losses in the consolidated statements of income and comprehensive income I. Property and equipment. Depreciation is principally computed using the straight-line method using the following estimated useful lives: buildings – 30 to 40 years and furniture and equipment – 3 to 5 years. Maintenance and repairs are expensed as incurred while improvements are capitalized. Gains and losses are recognized at disposal. J. Title plants. Title plants include compilations of a county’s official land records, prior title examination files, copies of prior title policies, maps and related materials that are geographically indexed to a specific property. The costs of acquiring existing title plants and creating new ones, prior to the time such plants are placed in operation, are capitalized. Title plants are not amortized since there is no indication of any loss of value over time but are subject to review for impairment. The costs of maintaining and operating title plants are expensed as incurred. Gains and losses on sales of copies of title plants or interests in title plants are recognized at the time of sale. K. Impairment of long-lived assets. The Company reviews the carrying values of title plants and other long-lived assets if certain events occur that may indicate impairment. An impairment of these long-lived assets is indicated when, at the asset group level, projected undiscounted cash flows over the estimated lives of the assets are less than carrying values. If impairment is indicated, the recorded amounts are written down to fair values and charged to current operations. L. Goodwill. Goodwill is not amortized, but is reviewed annually during the third quarter using June 30 balances, or whenever occurrences of events indicate a potential impairment at the reporting unit level. The Company evaluates goodwill based on four reporting units with goodwill balances - direct operations, agency operations, international operations and ancillary services. Under GAAP, the Company has an option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company considers factors that include macroeconomic conditions, industry and market considerations, overall actual and expected financial performance, market perspective on the Company, as well as other relevant events and circumstances determined by management. The Company evaluates the weight of each factor to determine whether an impairment more-likely-than-not exists. If the Company decides not to use a qualitative assessment or if the reporting unit fails the qualitative assessment, the quantitative impairment analysis is performed. The quantitative analysis involves the comparison of the fair value of each reporting unit to its carrying amount. Goodwill impairment is calculated as the excess of the reporting unit's carrying amount over the estimated fair value and is charged to current operations. While the Company is responsible for assessing whether an impairment of goodwill exists, inputs from third-party appraisers are utilized in performing the quantitative analysis. The Company estimates the fair value using a combination of the income approach (discounted cash flow (DCF) technique) and the market approach (guideline company and precedent transaction analyses). The DCF model utilizes historical and projected operating results and cash flows, initially driven by estimates of changes in future revenue levels, and risk-adjusted discount rates. Projected operating results are primarily driven by anticipated mortgage originations, which are obtained from projections by industry experts, for the title reporting units and expected contractual revenues for the ancillary services reporting unit. Fluctuations in revenues, followed by the ability to appropriately adjust employee count and other operating expenses, or large and unanticipated adjustments to title loss reserves, are the primary reasons for increases or decreases in the projected operating results. Market-based valuation methodologies utilize (i) market multiples of earnings and/or other operating metrics of comparable companies and (ii) the Company's market capitalization and a control premium based on market data. Goodwill is assigned to the reporting units at the time the goodwill is initially recorded. Once assigned to a reporting unit, the goodwill is pooled and no longer attributable to a specific acquisition. All activities within a reporting unit are available to support the carrying value of the goodwill. When a business component within a reporting unit is disposed, goodwill is allocated to the component based on the ratio of the component's fair value over the total fair value of the reporting unit. M. Other intangibles. Other intangible assets are comprised principally of customer relationships, acquired technology, acquired trademarks, non-compete agreements and underwriting agreements. Intangible assets are amortized over their estimated lives: 10 to 12 years for customer relationships, 5 to 7 years for acquired technology, 3 years to indefinite for acquired trademarks, 3 to 5 years for non-compete agreements and 5 to 25 years for underwriting agreements. These intangible assets are reviewed for impairment when certain events or changes in circumstances occur that indicate that the carrying amount of an asset may not be recoverable - refer to Note 1-K. N. Fair values. The fair values of financial instruments, including cash and cash equivalents, short-term investments, notes receivable, notes payable and accounts payable, are determined by 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. The net fair values of these financial instruments approximate their carrying values. Investments in debt and equity securities and certain financial instruments are carried at their fair values. O. Leases. The Company primarily leases office space, storage units, data centers and equipment, and determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets and operating lease liabilities on the consolidated balance sheets. Operating lease assets represent the right to use the underlying leased assets over the corresponding lease terms. Finance leases are included in furniture and equipment notes payable Operating lease expense, which is calculated on a straight-line basis over the lease term and presented as part of other operating expenses in the statement of income and comprehensive income, is composed of the amortization of the lease asset and the accretion of the lease liability. Finance lease expense is composed of the depreciation of the lease asset and accretion of the lease liability and presented as part of depreciation and amortization and interest expense, respectively, in the consolidated statements of income and comprehensive income. The Company accounts for the lease and non-lease fixed payment components of a lease agreement as a single lease component for all its classes of assets. Variable lease payments are not capitalized and are recorded as lease expense when incurred or paid. Operating leases with initial terms of 12 months or less (short-term leases), which are not reasonably certain to be extended at the commencement date, are not capitalized on the balance sheet. Additionally, operating leases of equipment are not recorded on the balance sheet on the basis that they are relatively short-term in nature and considered as not material to the consolidated balance sheet. P. Income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the tax basis and the book carrying values of certain assets and liabilities. To the extent that the Company does not believe its deferred tax assets meet the more-likely-than-not realization criteria, it establishes a valuation allowance. When it establishes a valuation allowance, or increases (decreases) the allowance during the year, it records a tax expense (benefit) in its consolidated statements of operations and comprehensive income (loss). Enacted tax rates are used in calculating amounts. The Company provides for uncertainties in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if any, are included in income tax expense. Q. Business combinations. Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed and are based on their estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. If the initial purchase accounting for an acquisition is incomplete by the end of the reporting period in which the acquisition occurred, provisional amounts are recorded. The measurement period for an acquisition ends the sooner of one year from the acquisition date or when management obtains acquisition-date information necessary to complete the purchase accounting. Adjustments to provisional amounts initially recorded are recognized in the reporting period in which the adjustment amounts are determined. |
Restrictions on cash and invest
Restrictions on cash and investments | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on cash and investments | Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements in the states of domicile of our underwriters 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 current operating cash flow. Included in investments in debt and equity securities are statutory reserve funds of approximately $523.5 million and $496.6 million at December 31, 2021 and 2020, respectively. In addition, included within cash and cash equivalents are statutory reserve funds of approximately $41.4 million and $20.0 million at December 31, 2021 and 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. A substantial majority of consolidated cash and investments at each year end was held by the Company’s title insurance subsidiaries. Generally, the types of investments a title insurer can make are subject to legal restrictions. Furthermore, the transfer of funds by a title insurer to its parent or subsidiary operations, as well as other related party transactions, is restricted by law and generally requires the approval of state insurance authorities (see Note 3 ). |
Statutory surplus and dividend
Statutory surplus and dividend restrictions | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Statutory surplus and dividend restrictions | Statutory surplus and dividend restrictions. Substantially all of the consolidated retained earnings at each year end were represented by Guaranty, which owns a majority of all the subsidiaries included in the consolidation. Guaranty cannot pay a dividend to its parent in excess of certain limits without the approval of the Texas Insurance Commissioner (TIC). Guaranty paid dividends of $293.9 million (including an extraordinary dividend of $135.0 million) and $30.0 million in 2021 and 2020, respectively. The maximum dividend that can be paid, on a rolling twelve-month period and subject to the timing of dividends paid in 2021, without the TIC's approval in 2022 is approximately $210.1 million, based on the greater of 2021 net operating income or 20% of statutory surplus as December 31, 2021. Dividends from Guaranty are also voluntarily restricted primarily to maintain statutory surplus and liquidity at competitive levels and to demonstrate significant claims payment ability. The ability of a title insurer to pay claims can significantly affect the decision of lenders and other customers when buying a policy from a particular insurer. Surplus as regards policyholders (total statutory capital and surplus) for Guaranty was $826.9 million and $794.7 million at December 31, 2021 and 2020, respectively. Statutory net income for Guaranty was $188.8 million, $133.2 million and $38.3 million in 2021, 2020 and 2019, respectively. The amount of statutory capital and surplus necessary to satisfy regulatory requirements for Guaranty was $2.0 million (and in the aggregate less than $2.0 million for all of the Company’s underwriter subsidiaries) at December 31, 2021, and each of its underwriter entities was in compliance with such requirements as of December 31, 2021. |
Investments in debt and equity
Investments in debt and equity securities | 12 Months Ended |
Dec. 31, 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 as of December 31 are detailed below: 2021 2020 (in $ thousands) Investments in: Debt securities 589,772 631,386 Equity securities 89,442 53,001 679,214 684,387 As of December 31, 2021 a nd 2020, included in the above fair values of investments in equity securities were net unrealized investment gains of $21.1 million and $4.4 million, respectively. The amortized costs and fair values of investments in debt securities as of December 31, are as follows: 2021 2020 Amortized Fair Amortized Fair (in $ thousands) Municipal 34,739 36,323 45,138 47,603 Corporate 249,757 258,102 285,962 305,450 Foreign 287,240 288,883 261,748 271,711 U.S. Treasury Bonds 6,429 6,464 6,564 6,622 578,165 589,772 599,412 631,386 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. Foreign debt securities primarily include Canadian government and corporate bonds, with aggregate fair values of $257.9 million and $240.4 million as of December 31, 2021 and 2020, respectively, and United Kingdom treasury and corporate bonds with aggregate fair values of $24.2 million and $25.2 million as of December 31, 2021 and 2020, respectively. Gross unrealized gains and losses on investments in debt securities at December 31, were: 2021 2020 Gains Losses Gains Losses (in $ thousands) Municipal 1,585 1 2,465 — Corporate 9,389 1,044 19,594 106 Foreign 3,285 1,642 10,024 61 U.S. Treasury Bonds 60 25 82 24 14,319 2,712 32,165 191 Debt securities at December 31, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized Fair (in $ thousands) In one year or less 71,014 71,860 After one year through five years 330,380 334,632 After five years through ten years 146,214 150,137 After ten years 30,557 33,143 578,165 589,772 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, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values (in $ thousands) Municipal 1 130 — — 1 130 Corporate 588 42,231 456 12,014 1,044 54,245 Foreign 1,502 118,943 140 3,394 1,642 122,337 U.S. Treasury Bonds 8 477 17 508 25 985 2,099 161,781 613 15,916 2,712 177,697 The number of specific debt securities investment holdings in an unrealized loss position as of December 31, 2021 was 95. Of these securities, nine were in unrealized loss positions for more than 12 mont hs. Since the Company does not intend to sell and will more li kely than not maintain each investment security until its maturity or anticipated recovery, 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 (in $ thousands) 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 Investment income and net realized and unrealized gains. Investment income and net realized and unrealized gains for the years ended December 31 are detailed below: 2021 2020 2019 (in $ thousands) Investment income: Debt securities 13,313 15,026 15,580 Equity securities, short-term investments, cash equivalents and other 3,542 3,581 4,215 16,855 18,607 19,795 Net realized and unrealized gains (losses): Realized gains 13,015 2,231 53,465 Realized losses (6,414) (1,598) (14,747) Net unrealized investment gains (losses) recognized on equity securities still held 17,720 (2,311) 4,042 24,321 (1,678) 42,760 In 2021, net realized and unrealized gains included $6.1 million of net realized gains from sale of buildings and other fixed assets and $3.8 million of net gains from acquisition contingent liability adjustments, partially offset by $2.7 million net realized losses related to disposals of equity method investment disposals. In 2020, net realized and unrealized losses included $2.3 million of net unrealized investment losses on equity securities held at year-end and $0.6 million of net realized losses from sales of securities investments, partially offset by $1.2 million of realized gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments). In 2019, net realized and unrealized gains included a $50.0 million gain related to the fee received from the terminated merger with Fidelity National Financial, Inc. (FNF), $4.0 million of net unrealized investment gains on equity securities held at year-end and $2.5 million of realized gains from sales of securities investments, partially offset by $14.7 million of impairment expenses primarily related to title plants, buildings, intangible assets, equity-method investments and other assets. Net investment gains and losses recognized for the years ended December 31 related to investments in equity securities are follows: 2021 2020 2019 (in $ thousands) Total net investment gains (losses) recognized on equity securities during the period 19,351 (3,137) 4,825 Less: Net realized gains (losses) on equity securities sold during the period 1,631 (826) 783 Net unrealized investment gains (losses) recognized on equity securities still held at December 31 17,720 (2,311) 4,042 Proceeds from sales of investments in securities for the years ended December 31 are as follows: 2021 2020 2019 (in $ thousands) Proceeds from sales of debt securities 68,450 36,449 46,834 Proceeds from sales of equity securities 843 791 3,771 Total proceeds from sales of investments in securities 69,293 37,240 50,605 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements. Fair value is 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. U.S. GAAP establishes 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. At December 31, 2021, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value (in $ thousands) Investments in securities: Debt securities: Municipal — 36,323 — 36,323 Corporate — 258,102 — 258,102 Foreign — 288,883 — 288,883 U.S. Treasury Bonds — 6,464 — 6,464 Equity securities: 89,442 — — 89,442 89,442 589,772 — 679,214 At December 31, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value (in $ thousands) 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 At December 31, 2021, 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. |
Investment income and net reali
Investment income and net realized and unrealized gains | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment income and net realized and unrealized gains | Investments in debt and equity securities. The total fair values of the Company's investments in debt and equity securities as of December 31 are detailed below: 2021 2020 (in $ thousands) Investments in: Debt securities 589,772 631,386 Equity securities 89,442 53,001 679,214 684,387 As of December 31, 2021 a nd 2020, included in the above fair values of investments in equity securities were net unrealized investment gains of $21.1 million and $4.4 million, respectively. The amortized costs and fair values of investments in debt securities as of December 31, are as follows: 2021 2020 Amortized Fair Amortized Fair (in $ thousands) Municipal 34,739 36,323 45,138 47,603 Corporate 249,757 258,102 285,962 305,450 Foreign 287,240 288,883 261,748 271,711 U.S. Treasury Bonds 6,429 6,464 6,564 6,622 578,165 589,772 599,412 631,386 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. Foreign debt securities primarily include Canadian government and corporate bonds, with aggregate fair values of $257.9 million and $240.4 million as of December 31, 2021 and 2020, respectively, and United Kingdom treasury and corporate bonds with aggregate fair values of $24.2 million and $25.2 million as of December 31, 2021 and 2020, respectively. Gross unrealized gains and losses on investments in debt securities at December 31, were: 2021 2020 Gains Losses Gains Losses (in $ thousands) Municipal 1,585 1 2,465 — Corporate 9,389 1,044 19,594 106 Foreign 3,285 1,642 10,024 61 U.S. Treasury Bonds 60 25 82 24 14,319 2,712 32,165 191 Debt securities at December 31, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized Fair (in $ thousands) In one year or less 71,014 71,860 After one year through five years 330,380 334,632 After five years through ten years 146,214 150,137 After ten years 30,557 33,143 578,165 589,772 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, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values (in $ thousands) Municipal 1 130 — — 1 130 Corporate 588 42,231 456 12,014 1,044 54,245 Foreign 1,502 118,943 140 3,394 1,642 122,337 U.S. Treasury Bonds 8 477 17 508 25 985 2,099 161,781 613 15,916 2,712 177,697 The number of specific debt securities investment holdings in an unrealized loss position as of December 31, 2021 was 95. Of these securities, nine were in unrealized loss positions for more than 12 mont hs. Since the Company does not intend to sell and will more li kely than not maintain each investment security until its maturity or anticipated recovery, 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 (in $ thousands) 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 Investment income and net realized and unrealized gains. Investment income and net realized and unrealized gains for the years ended December 31 are detailed below: 2021 2020 2019 (in $ thousands) Investment income: Debt securities 13,313 15,026 15,580 Equity securities, short-term investments, cash equivalents and other 3,542 3,581 4,215 16,855 18,607 19,795 Net realized and unrealized gains (losses): Realized gains 13,015 2,231 53,465 Realized losses (6,414) (1,598) (14,747) Net unrealized investment gains (losses) recognized on equity securities still held 17,720 (2,311) 4,042 24,321 (1,678) 42,760 In 2021, net realized and unrealized gains included $6.1 million of net realized gains from sale of buildings and other fixed assets and $3.8 million of net gains from acquisition contingent liability adjustments, partially offset by $2.7 million net realized losses related to disposals of equity method investment disposals. In 2020, net realized and unrealized losses included $2.3 million of net unrealized investment losses on equity securities held at year-end and $0.6 million of net realized losses from sales of securities investments, partially offset by $1.2 million of realized gains from settlements of equity investments with no previously readily determinable fair values (cost-basis investments). In 2019, net realized and unrealized gains included a $50.0 million gain related to the fee received from the terminated merger with Fidelity National Financial, Inc. (FNF), $4.0 million of net unrealized investment gains on equity securities held at year-end and $2.5 million of realized gains from sales of securities investments, partially offset by $14.7 million of impairment expenses primarily related to title plants, buildings, intangible assets, equity-method investments and other assets. Net investment gains and losses recognized for the years ended December 31 related to investments in equity securities are follows: 2021 2020 2019 (in $ thousands) Total net investment gains (losses) recognized on equity securities during the period 19,351 (3,137) 4,825 Less: Net realized gains (losses) on equity securities sold during the period 1,631 (826) 783 Net unrealized investment gains (losses) recognized on equity securities still held at December 31 17,720 (2,311) 4,042 Proceeds from sales of investments in securities for the years ended December 31 are as follows: 2021 2020 2019 (in $ thousands) Proceeds from sales of debt securities 68,450 36,449 46,834 Proceeds from sales of equity securities 843 791 3,771 Total proceeds from sales of investments in securities 69,293 37,240 50,605 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes. Income tax expense consists of the following: 2021 2020 2019 (in $ thousands) Current income tax expense: Federal 57,274 47,778 12,329 State 7,600 3,235 846 Foreign 16,508 7,567 4,851 81,382 58,580 18,026 Deferred income tax expense (benefit): Federal 13,175 (10,429) 6,631 State 2,197 388 150 Foreign (2,765) 294 1,888 12,607 (9,747) 8,669 Total income tax expense 93,989 48,833 26,695 The following reconciles income tax expense computed at the federal statutory rate with income tax expense as reported (in $ thousands, except for income tax rates): 2021 2020 2019 Expected income tax expense at 21% (1) 87,613 42,785 22,116 State income tax expense - net of Federal impact 8,201 2,944 818 Valuation allowance (4,427) 2,427 1,326 Nondeductible expenses 4,090 2,399 3,249 Foreign income tax rate differential 3,549 1,465 138 Net (benefit) expense for the Canadian branch (2) (2,130) (1,478) 613 Research and development credits (398) (1,055) (278) Return-to-provision and true-up adjustments (1,617) (438) (776) Other – net (892) (216) (511) Income tax expense 93,989 48,833 26,695 Effective income tax rate (1) 22.5 % 24.0 % 25.3 % (1) Calculated using income before taxes and after noncontrolling interests. (2) For U.S. income tax purposes, the Company’s Canadian operation is a branch of Guaranty. As a result, the Canadian net deferred tax liability is offset in the U.S. as a deferred tax asset but not in an equal amount given differing tax rates in Canada and the U.S. Deferred tax assets and liabilities resulting from the same tax jurisdiction are netted and presented as either an asset or liability on the consolidated balance sheets. Deferred tax assets and liabilities resulting from different tax jurisdictions are not netted. Deferred tax assets and liabilities as of December 31 are detailed below. 2021 2020 (in $ thousands) Deferred tax assets: Net operating loss (NOL) carryforwards 22,615 5,036 Accrued expenses 20,922 18,747 Federal offset to Canadian deferred tax liability 7,591 8,299 Tax credit carryforwards 2,816 4,596 Deferred payroll taxes 1,782 3,297 Allowance for uncollectible amounts 1,719 1,056 Title loss provisions 1,191 1,100 Investments 1,161 1,529 Foreign currency translation adjustments 707 959 Net unrealized losses on investments in securities 361 2,719 Other intangibles from acquisitions — 1,321 Other 821 1,212 Deferred tax assets – gross 61,686 49,871 Valuation allowance (2,279) (6,471) Deferred tax assets – net 59,407 43,400 Deferred tax liabilities: Other intangible assets from acquisitions (34,180) — Amortization – goodwill and other intangibles (30,307) (26,669) Title loss provisions (18,233) (18,724) Fixed assets (10,074) (6,046) Net unrealized gains on investments in securities (7,131) (7,684) Deferred compensation on life insurance policies (2,517) (2,296) Investments (989) (1,193) Other (909) (310) Deferred tax liabilities – gross (104,340) (62,922) Net deferred income tax liability (44,933) (19,522) At December 31, 2021, the Company's deferred tax assets related to NOL carryforwards are composed of a $17.4 million U.S. federal NOL carryforward from an acquisition in 2021 with no expiration, various state NOL carryforwards which will expire in varying amounts from 2022 through 2041, and foreign NOL carryforwards which will expire in varying amounts from 2022 through 2025 or have unlimited carryforward periods. The future utilization of all NOL carryforwards is subject to various limitations. At December 31, 2021, the Company had $1.4 million of foreign tax credit carryforwards that will begin to expire in 2028. The future utilization of these credit carryforwards is subject to various limitations. Foreign jurisdictions where the Company makes tax payments include Canada, Australia, Costa Rica and the United Kingdom. The Company's valuation allowance at December 31, 2021 relates primarily to all foreign tax credit carryforwards and certain state and foreign NOL carryforwards which the Company believes are not more-likely-than-not to be utilized prior to expiration. |
Goodwill and other intangibles
Goodwill and other intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles | Goodwill and other intangibles. The summary of changes in goodwill is as follows: Title Ancillary Total (in $ thousands) Balances at January 1, 2020 243,161 5,729 248,890 Acquisitions 118,272 64,315 182,587 Balances at December 31, 2020 361,433 70,044 431,477 Acquisitions 241,484 258,069 499,553 Purchase adjustments (3,600) (2,570) (6,170) Disposals (23) — (23) Balances at December 31, 2021 599,294 325,543 924,837 For its annual goodwill impairment test (see Note 1-L ), the Company utilized the qualitative assessment in 2021 and 2020, and determined that goodwill related to each of its reporting units was not impaired. An aggregate of $172.6 million of the goodwill recognized in 2021 is tax-deductible over a period of 15 years from the corresponding acquisition date. In connection with its acquisitions in the title and the ancillary services and corporate segments, the Company recorded other intangible assets of $44.3 million and $167.3 million, respectively, during 2021 and $0.7 million and $37.1 million, respectively, during 2020. The other intangible assets recognized from these acquisitions were primarily related to customer relationships and internally-developed technology. The summary of other intangibles by major class (refer to N ote 1 -M ) is as follows: Customer Relationships Technology Others Total (in $ thousands) Balances at December 31, 2021: Gross 125,727 92,962 42,837 261,526 Accumulated amortization (6,564) (9,155) (16,003) (31,722) Net 119,163 83,807 26,834 229,804 Balances at December 31, 2020: Gross 23,730 10,752 15,454 49,936 Accumulated amortization (1,051) (2,276) (9,227) (12,554) Net 22,679 8,476 6,227 37,382 Total amortiza tion expense recorded for other intangible assets was $19.2 million and $5.1 million in 2021 and 2020, respectively. The annual amortization expense expected to be recognized in the next five years relating to other intangible assets is approximately $33.5 million in 2022, $31.6 million in 2023, $28.7 million in 2024, $27.5 million in 2025 and $23.0 million in 2026. |
Notes payable
Notes payable | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes payable | Notes payable. A summary of notes payable is as follows: 2021 2020 (in $ thousands) 3.60% Senior Notes 444,106 — Line of credit facility (1) — 98,875 Other notes payable 39,385 2,898 483,491 101,773 (1) Average interest rates were 1.47% and 1.73% during the years ended December 31, 2021 and 2020, respectively. Based upon the contractual maturities, principal payments due in the next five years on the above notes are $38.6 million in 2022, $0.4 million in 2023, $0.4 million in 2024, and none in 2025 and 2026. Included within other notes payable are $1.0 million and $1.9 million of capital lease obligations at December 31, 2021 and 2020, respectively. In November 2021, the Company completed an underwritten offering of $450 million aggregate principal amount of unsecured 3.60% Senior Notes due on November 15, 2031 (Senior Notes). The proceeds from the issuance of the Senior Notes, net of underwriting discounts and issuance costs, were $444.0 million, which were used to repay the balance of the Term Loan (see below) and for general corporate purposes. Interest on the Senior Notes is paid semi-annually in May and November at a fixed rate of 3.60% per annum. At any time prior to August 15, 2031, the Senior Notes are subject to redemption upon not less than 15 days' notice, in whole or in part, at a redemption price equal to the greater of: 100% of the principal amount of the Senior Notes to be redeemed, or the sum of the present values of the remaining scheduled payments of principal and interest to be redeemed. The Senior Notes are the Company’s general senior unsecured obligations, are not guaranteed by any of the Company’s subsidiaries, rank equally in right of payment with the Company’s existing and future senior unsecured indebtedness, and are effectively subordinated to all liabilities of the Company’s subsidiaries and to all of the Company’s secured indebtedness to the extent of the value of the collateral securing such indebtedness. Previously, the Company had an available $150.0 million unsecured line of credit commitment (Existing Credit Agreement) for general corporate and acquisitions purposes which was previously scheduled to expire in November 2023. In May 2020, the Company entered into an amended agreement with the lenders (First Amendment) which increased the available unsecured line of credit commitment to $200.0 million and extended the maturity of the line of credit to May 2025. In March 2021, the Company entered into a second amendment and restated credit agreement (Second Amendment) which increased the available unsecured line of credit commitment to $350 million and extended the maturity to March 2026. In October 2021, the Company entered into a new senior unsecured credit agreement (New Credit Agreement) comprising of a $200.0 million unsecured revolving credit facility (maturing in October 2026) and a $400.0 million unsecured delayed-draw term loan commitment (364-day term) (Term Loan), with an option to increase the revolving credit facility by up to $125.0 million. Simultaneously, the Company drew $370.0 million from the Term Loan and paid off the remaining balance of its prior line of credit commitment, which was subsequently extinguished. The New Credit Agreement is guaranteed by the Company's wholly-owned subsidiaries. In November 2021, upon issuance of its Senior Notes, the Company paid off and extinguished its Term Loan. At the Company’s election, borrowings under the New Credit Agreement will bear interest at either (a) the Base Rate plus the Applicable Margin (each as defined in the agreement) or (b) the LIBOR Rate (as defined in the agreement) plus the applicable margin. The applicable margin, based on the Company's Debt to Capitalization Ratio (as defined in the agreement), for revolving loans ranges from 0.25% to 0.625% per annum for base rate borrowings and 1.25% to 1.625% per annum for LIBOR rate borrowings. Further, a commitment fee accrues, based on the Company's debt to capitalization Ratio, ranging from 0.15% to 0.30% per annum on the average daily unused portion of the commitments. The New Credit Agreement also contains certain consolidated financial covenants which, as detailed in the agreement, limit the Company's maximum debt to total capitalization ratio and minimum consolidated net worth. As of December 31, 2021, the remaining balance of the line of credit available for use was $197.5 million, net of an unused $2.5 million letter of credit. The Company was in compliance with all covenants as of December 31, 2021 and 2020 under the related line of credit agreements. The Company 's qualified intermediary in tax-deferred property exchanges pursuant to Section 1031 of the Internal Revenue Code (Section 1031) enters into short-term loan agreements with parties to an exchange in the ordinary course of its business. The outstanding balances pursuant to these loans, as included within other notes payable in the above table, were $37.1 million and $0.7 million as of December 31, 2021 and 2020, respectively, and are secured by cash that is included in cash and cash equivalents on the Company's consolidated balance sheet. Borrowings and repayments on these short-term loans are reflected as financing activities in the consolidated statements of cash flows. |
Estimated title losses
Estimated title losses | 12 Months Ended |
Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
Estimated title losses | Estimated title losses. A summary of estimated title losses is as follows: 2021 2020 2019 (in $ thousands, except for loss ratios) Balances at January 1 496,275 459,053 461,560 Provisions: Current year 121,164 98,823 79,141 Previous policy years 5,079 16,401 5,282 Total provisions 126,243 115,224 84,423 Payments, net of recoveries: Current year (16,727) (15,455) (19,052) Previous policy years (54,772) (66,540) (71,956) Total payments, net of recoveries (71,499) (81,995) (91,008) Effects of changes in foreign currency exchange rates (1,405) 3,993 4,078 Balances at December 31 549,614 496,275 459,053 Loss ratios as a percentage of title operating revenues: Current year provisions 4.0 % 4.5 % 4.3 % Total provisions 4.2 % 5.3 % 4.6 % Total title loss provisions during 2021, compared to 2020, increased primarily due to increased title premiums, partially offset by favorable claims experience. Total title loss provisions during 2020, compared to 2019, increased primarily due to increased title premiums, higher domestic loss provisioning rates due to the current economic environment and unfavorable loss development related to certain coverages in the Canadian operations. The prior policy years' provision in 2020 was primarily due to large claims reported and unfavorable loss development for prior policy years. Total provisions for large title claims were $6.1 million, $12.0 million and $6.0 million in 2021, 2020 and 2019, respectiv ely. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 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 generally vest on each of the first three three The aggregate grant-date fair values of restricted awards to employees during 2021, 2020 and 2019 were $13.1 million (240,800 stock units with an average grant price of $54.45), $4.1 million (104,200 stock units with an average grant price of $39.78) and $5.1 million (122,400 restricted shares with an average grant price of $42.02), respectively. The aggregate grant-date fair value of stock option awards during 2021 and 2020 was $1.3 million (140,600 options with an average grant price of $9.24 and exercise strike price of $53.24) and $3.4 million (647,800 options with an average grant price of $5.32 and exercise strike price of $39.76), respectively. A summary of the restricted stock unit activity during the year ended December 31, 2021 is presented below: Units Weighted-Average Grant-Date Fair Value per Share ($) Outstanding at January 1, 2021 230,928 41.25 Granted 240,811 54.45 Converted (121,896) 42.68 Forfeited (11,143) 48.18 Outstanding at December 31, 2021 338,700 49.89 Nonvested at December 31, 2021 299,889 50.75 A summary of the stock option activity during the year ended December 31, 2021 is presented below: Units Weighted-Average Exercise Price ($) Outstanding at January 1, 2021 633,280 39.76 Granted 140,577 53.24 Exercised (4,546) 39.76 Forfeited (42,782) 41.78 Outstanding at December 31, 2021 726,529 42.25 Nonvested at December 31, 2021 611,229 42.72 As of December 31, 2021, the aggregate intrinsic value and weighted average remaining contractual term related to outstanding options was $27.2 million and 8.3 years, respectively. The fair value of grants that vested in 2021 and 2020 aggregated to $6.9 million and $5.6 million, resp ectively. For the years ended December 31, 2021, 2020 and 2019, compensation costs recognized in the consolidated statements of income and comprehensive incom e, presented primarily within employee costs, were approximately $12.0 million, $5.8 million and $2.1 million, respectively. The total tax benefits recognized in the consolidated statements of income and comprehensive income from tax deductions relating to vesting of equity awards in 2021, 2020 and 2019 were $0.8 million, $0.6 million and $0.5 million, respectively. As of December 31, 2021, compensation costs not yet recognized related to all employee nonvested awards was $9.7 million , which is expected to be recognized over a weighted average period of 2.1 years . |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 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. Any outstanding shares of Common Stock granted to employees that are not yet vested 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: For the Years Ended December 31, 2021 2020 2019 Numerator (in $ thousands): Net income attributable to Stewart 323,216 154,905 78,615 Denominator (in thousands): Basic average shares outstanding 26,822 24,793 23,611 Average number of dilutive shares relating to options 197 — — Average number of dilutive shares relating to restricted units and shares 149 120 142 Diluted average shares outstanding 27,168 24,913 23,753 Basic earnings per share attributable to Stewart ($) 12.05 6.25 3.33 Diluted earnings per share attributable to Stewart ($) 11.90 6.22 3.31 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance. As is industry practice, the Company cedes risks to other title insurance underwriters and reinsurers on certain transactions. However, the Company remains liable if the reinsurer should fail to meet its obligations. The Company also assumes risks from other underwriters on a transactional basis as well as on certain reinsurance treaties. Payments and recoveries on reinsured losses were insignificant during each of the years ended December 31, 2021, 2020, and 2019. The total amount of premiums for assumed and ceded risks was less than 1.0% of consolidated title revenues in each of the last three years and there were no outstanding amounts of reinsurance recoverable or payable at December 31, 2021 and 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases. Total operating lease expense was $46.5 million, $41.1 million and $44.2 million in 2021, 2020 and 2019, respectively, which included $3.6 million, $3.4 million and $4.2 million, respectively, of lease expense related to short-term leases and equipment. Total finance lease expense was $1.0 million, $1.4 million and $2.4 million in 2021, 2020 and 2019, respectively. Lease-related assets and liabilities as of December 31 are as follows: 2021 2020 (in $ thousands) Assets: Operating lease assets, net of accumulated amortization 134,578 106,479 Finance lease assets, net of accumulated depreciation 2,116 3,065 Total lease assets 136,694 109,544 Liabilities: Operating lease liabilities 149,417 119,089 Finance lease liabilities 1,013 1,911 Total lease liabilities 150,430 121,000 Other information related to operating and finance leases during the years ended December 31 is as follows: 2021 2020 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities (in $ thousands) 43,933 957 40,452 1,913 Lease assets obtained in exchange for lease obligations (in $ thousands) 69,894 — 40,557 — Weighted average remaining lease term (years): 4.3 1.1 4.5 2.1 Weighted average discount rate 3.0 % 4.0 % 3.7 % 4.0 % Future minimum lease payments under operating and finance leases as of December 31, 2021 are as follows: Operating Finance (in $ thousands) 2022 50,883 957 2023 40,408 80 2024 30,938 — 2025 19,873 — 2026 12,642 — Thereafter 14,612 — Total future minimum lease payments 169,356 1,037 Less: imputed interest (19,939) (24) Net future minimum lease payments 149,417 1,013 |
Leases | Leases. Total operating lease expense was $46.5 million, $41.1 million and $44.2 million in 2021, 2020 and 2019, respectively, which included $3.6 million, $3.4 million and $4.2 million, respectively, of lease expense related to short-term leases and equipment. Total finance lease expense was $1.0 million, $1.4 million and $2.4 million in 2021, 2020 and 2019, respectively. Lease-related assets and liabilities as of December 31 are as follows: 2021 2020 (in $ thousands) Assets: Operating lease assets, net of accumulated amortization 134,578 106,479 Finance lease assets, net of accumulated depreciation 2,116 3,065 Total lease assets 136,694 109,544 Liabilities: Operating lease liabilities 149,417 119,089 Finance lease liabilities 1,013 1,911 Total lease liabilities 150,430 121,000 Other information related to operating and finance leases during the years ended December 31 is as follows: 2021 2020 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities (in $ thousands) 43,933 957 40,452 1,913 Lease assets obtained in exchange for lease obligations (in $ thousands) 69,894 — 40,557 — Weighted average remaining lease term (years): 4.3 1.1 4.5 2.1 Weighted average discount rate 3.0 % 4.0 % 3.7 % 4.0 % Future minimum lease payments under operating and finance leases as of December 31, 2021 are as follows: Operating Finance (in $ thousands) 2022 50,883 957 2023 40,408 80 2024 30,938 — 2025 19,873 — 2026 12,642 — Thereafter 14,612 — Total future minimum lease payments 169,356 1,037 Less: imputed interest (19,939) (24) Net future minimum lease payments 149,417 1,013 |
Contingent liabilities and comm
Contingent liabilities and commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities and commitments | Contingent liabilities and commitments. The Company routinely holds third-party funds in segregated escrow accounts pending the closing of real estate transactions resulting in a contingent liability to the Company of approximately $3.3 billion at December 31, 2021. In addition, the Company is contingently liable for disbursements of escrow funds held by independent agencies in those cases where specific insured closing guarantees have been issued. The Company owns a qualified intermediary engaged in Section 1031 tax-deferred property exchanges. The Company holds the proceeds from these transactions until a qualifying exchange can occur. This resulted in a contingent liability to the Company of approximately $2.5 billion at December 31, 2021. As with industry practice, escrow and Section 1031 exchanger fund accounts are not included in the consolidated balance sheets. In the ordinary course of business, the Company guarantees the third-party indebtedness of certain of its consolidated subsidiaries. As of December 31, 2021, the maximum potential future payments on the guarantees are not more than the related notes payable recorded in the consolidated balance sheets (refer to Note 9 ). 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 guarantees are not more than the Company’s future lease obligations (refer to Note 14 ) plus lease operating expenses. As of December 31, 2021, the Company also had unused letters of credit aggregating $4.9 million related to workers’ compensation coverage and other insurance. The Company does not expect to make any payments on these guarantees. |
Regulatory and legal developmen
Regulatory and legal developments | 12 Months Ended |
Dec. 31, 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. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues. The Company's operating revenues, summarized by type, are as follows: 2021 2020 2019 (in $ thousands) Title insurance premiums: Direct 960,118 716,779 615,646 Agency 1,582,640 1,151,030 970,540 Escrow fees 248,426 190,930 137,539 Appraisal management, abstract, and online notarization and closing services 315,078 134,304 82,050 Other revenues 158,354 78,460 71,678 3,264,616 2,271,503 1,877,453 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 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, online notarization and closing services, credit and real estate information services, and search and valuation services (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 for the years ended December 31 is as follows: 2021 2020 2019 (in $ thousands) Title segment: Revenues 3,034,318 2,205,301 1,857,048 Depreciation and amortization 21,451 15,230 19,971 Income before taxes and noncontrolling interest 440,211 246,878 108,459 Ancillary services and corporate segment: Revenues 271,474 83,131 82,960 Depreciation and amortization 14,935 3,986 2,555 (Loss) income before taxes and noncontrolling interest (6,240) (28,373) 8,508 Consolidated Stewart: Revenues 3,305,792 2,288,432 1,940,008 Depreciation and amortization 36,386 19,216 22,526 Income before taxes and noncontrolling interest 433,971 218,505 116,967 2019 revenues and income before taxes and noncontrolling interest for the ancillary services and corporate segment included a $50.0 million gain related to the fee received from the FNF merger termination (refer also to Note 6 ). The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Revenues for the years ended December 31 in the United States and all international operations are as follows: 2021 2020 2019 (in $ thousands) United States 3,107,817 2,154,672 1,816,531 International 197,975 133,760 123,477 3,305,792 2,288,432 1,940,008 |
Other comprehensive income (los
Other comprehensive income (loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss). Changes in the balances of each component of other comprehensive income (loss) and the related tax effects are as follows (in $ thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Foreign currency translation adjustments (298) 381 (679) 5,777 988 4,789 8,337 1,859 6,478 Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (17,279) (3,629) (13,650) 19,548 4,105 15,443 19,220 4,036 15,184 Reclassification adjustment for realized gains and losses on investments (3,088) (648) (2,440) (647) (136) (511) 519 109 410 (20,367) (4,277) (16,090) 18,901 3,969 14,932 19,739 4,145 15,594 Other comprehensive (loss) income (20,665) (3,896) (16,769) 24,678 4,957 19,721 28,076 6,004 22,072 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Common Stock | Common Stock. During 2020, the Company issued an aggregate of 3,026,340 new shares of its Common Stock ($1 par value), which included shares purchased by the underwriters to the transaction. Proceeds from the Common Stock issuance, net of issuance costs, amounted to $109.0 million. |
Schedule I - Financial Informat
Schedule I - Financial Information of the Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Financial Information of the Registrant (Parent Company) | SCHEDULE I STEWART INFORMATION SERVICES CORPORATION (Parent Company) STATEMENTS OF INCOME AND RETAINED EARNINGS For the Years Ended December 31, 2021 2020 2019 (in $ thousands) Revenues Interest income and other net realized gains (losses) (281) 1,182 753 Merger termination fee — — 50,000 (281) 1,182 50,753 Expenses Interest 5,101 2,511 4,106 Other operating expenses 6,924 9,262 12,787 12,025 11,773 16,893 (Loss) income before taxes and income from investments in subsidiaries (12,306) (10,591) 33,860 Income tax expense — (15) (15) Income from investments in subsidiaries 335,522 165,511 44,770 Net income 323,216 154,905 78,615 Retained earnings at beginning of year 688,819 564,392 514,248 Cash dividends on Common Stock (37,235) (30,478) (28,471) Retained earnings at end of year 974,800 688,819 564,392 See accompanying notes to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) BALANCE SHEETS As of December 31, 2021 2020 (in $ thousands) Assets Cash and cash equivalents 15,527 3,604 Receivables: Notes - due from subsidiaries — 45,193 Receivables from affiliates 21,519 2,258 21,519 47,451 Property and equipment, at cost: Furniture and equipment 47 75 Accumulated depreciation (46) (74) 1 1 Investments in subsidiaries, on an equity-method basis 1,698,280 1,055,154 Operating lease assets 5,859 7,439 Goodwill 8,068 8,068 Other assets 19,659 16,339 1,768,913 1,138,056 Liabilities Accounts payable and other liabilities 24,829 24,040 Operating lease liabilities 7,961 10,029 Notes payable 454,106 98,875 486,896 132,944 Contingent liabilities and commitments — — Stockholders’ equity Common Stock – $1 par, authorized 51,500,000; issued 27,245,591 and 27,080,403; outstanding 26,893,430 and 26,728,242, respectively 27,246 27,080 Additional paid-in capital 282,383 274,857 Retained earnings 974,800 688,819 Accumulated other comprehensive income (loss) (AOCI): Foreign currency translation adjustments (8,917) (8,238) Net unrealized investment gains 9,171 25,260 Treasury stock – 352,161 common shares, at cost (2,666) (2,666) Total stockholders’ equity 1,282,017 1,005,112 1,768,913 1,138,056 See accompanying notes to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2021 2020 2019 (in $ thousands) Reconciliation of net income to cash provided by operating activities: Net income 323,216 154,905 78,615 Add (deduct): Depreciation — 4 8 (Increase) decrease in receivables – net (19,261) (1,998) (253) (Increase) decrease in other assets – net (1,574) (529) 1,659 Increase (decrease) in payables and accrued liabilities – net (297) 2,978 2,698 Income from and other adjustments for subsidiaries (31,841) (140,816) (43,240) Cash provided by operating activities 270,243 14,544 39,487 Investing activities: Collections on notes receivables 45,193 40,000 1,416 Increases in notes receivables — (80,000) — Investments in and contributions to subsidiaries (615,147) (85,470) — Cash (used) provided by investing activities (569,954) (125,470) 1,416 Financing activities: Proceeds from notes payable 1,004,703 — — Payments on notes payable (643,875) — — Issuance of new Common Stock — 108,961 — Dividends paid (36,637) (30,226) (28,345) Repurchases of Common Stock (2,252) (1,054) (532) Purchase of remaining interest of consolidated subsidiary (5,616) — — Proceeds from stock option and employee stock purchase plan exercises 2,715 — — Payment for debt issuance costs (7,404) — — Cash provided (used) by financing activities 311,634 77,681 (28,877) Increase (decrease) in cash and cash equivalents 11,923 (33,245) 12,026 Cash and cash equivalents at beginning of year 3,604 36,849 24,823 Cash and cash equivalents at end of year 15,527 3,604 36,849 Supplemental information: Income taxes paid, net 5 180 — Interest paid 2,795 2,490 4,009 See accompanying notes to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) NOTES TO FINANCIAL STATEMENT INFORMATION The Parent Company operates as a holding company, transacting substantially all of its business through its subsidiaries. Its consolidated financial statements are included in Part II, Item 8 of Form 10-K . The Parent Company financial statements should be read in conjunction with the aforementioned consolidated financial statements and notes thereto and financial statement schedules. Merger agreement . In 2018, the Company entered into an agreement and plan of merger (Merger Agreement) with Fidelity National Financial, Inc. (FNF), A Holdco Corp. and S Holdco LLC, pursuant to which, subject to the satisfaction or waiver of certain conditions, the Company was to be acquired by FNF . In 2019, the Company and FNF mutually terminated the Merger Agreement and, as stipulated in the Merger Agreement, FNF paid the Company a merger termination fee of $50.0 million, which was presented as such in the 2019 statement of income and retained earnings. Dividends received. During 2021 and 2020, Stewart Title Guaranty Company, a wholly-owned subsidiary, paid to the Parent Company dividends of $293.9 million and $30.0 million, respectively. Also, during 2021, the Parent Company received dividends of $2.0 million from US RES Holdco, LLC, a wholly-owned subsidiary and the parent company of United States Appraisals, LLC. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II STEWART INFORMATION SERVICES CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS December 31, 2021 Col. A Col. B Col. C Col. D Col. E Description Balance Charged to (Describe) Balance (in $ thousands) Year ended December 31, 2021: Estimated title losses 496,275 126,243 72,904 (A) 549,614 Valuation allowance for deferred tax assets 6,471 398 4,590 2,279 Allowance for uncollectible amounts 4,807 3,023 119 (B) 7,711 Year ended December 31, 2020: Estimated title losses 459,053 115,224 78,002 (A) 496,275 Valuation allowance for deferred tax assets 4,056 2,532 117 6,471 Allowance for uncollectible amounts 4,469 649 311 (B) 4,807 Year ended December 31, 2019: Estimated title losses 461,560 84,423 86,930 (A) 459,053 Valuation allowance for deferred tax assets 3,824 236 4 4,056 Allowance for uncollectible amounts 4,614 1,672 1,817 (B) 4,469 (A) Represents primarily payments of policy and escrow losses and loss adjustment expenses. (B) Represents uncollectible accounts written off. See accompanying Report of Independent Registered Public Accounting Firm. |
General (Policies)
General (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying consolidated financial statements were prepared by management, who is responsible for their integrity and objectivity. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP), including management’s best judgments and estimates. Actual results could differ from those estimates. |
Consolidation | Consolidation. The 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 20% through 50% of the entity, are accounted for using the equity method. |
Statutory accounting | Statutory accounting. Stewart Title Guaranty Company (Guaranty) and other title insurance underwriters owned by the Company prepare financial statements in accordance with statutory accounting practices prescribed or permitted by regulatory authorities. In conforming the statutory financial statements to GAAP, statutory premium reserves and reserves for known title losses are eliminated and, in substitution, amounts are established for estimated title losses (Note 1-E), for which the net effect, after providing for income taxes, is included in the consolidated statements of income and comprehensive income. Additionally, investments in debt securities, which are carried at amortized cost for statutory accounting, are reported at fair value and the net unrealized gains and losses, net of applicable deferred taxes, on the investments are included as a component of accumulated other comprehensive income (loss) (AOCI) within stockholders’ equity. |
Revenues | Revenues. Direct premiums - Premiums from title insurance policies directly issued or issued by affiliate offices are recognized at the time of the closing of the related real estate transaction. Agency premiums - Premiums from title insurance policies written by independent agencies are recognized when the policies are reported to the Company. In addition, where reasonable estimates can be made, the Company accrues for policies issued but not reported until after period end. The Company believes that reasonable estimates can be made when recent and consistent policy issuance information is available. Estimates are based on historical reporting patterns and other information obtained about independent agencies, as well as current trends in direct operations and in the title industry. In this accrual, future transactions are not being estimated. The Company is estimating revenues on policies that have already been issued by independent agencies but not yet reported to or received by the Company. Escrow fees - An escrow is a transaction pursuant to an agreement of a buyer, seller, borrower, or lender wherein an impartial third party, such as the Company, acts in a fiduciary capacity on behalf of the parties in accordance with the terms of such agreement in order to accomplish the directions stated therein. Services provided include, among others, acting as escrow or other fiduciary agent, obtaining releases, and conducting the actual closing or settlement. Escrow fees are recognized upon closing of the escrow, which is generally at the same time of the closing of the related real estate transaction. |
Title losses and related claims | Title losses and related claims. The Company's liability for estimated title losses comprises estimates of both known claims and incurred but unreported claims expected to be paid in the future for policies issued as of the balance sheet date. This liability represents the aggregate future payments, net of recoveries, that the Company expects to make related to policy claims. The Company’s method for recording reserves for title losses on both an interim and annual basis begins with the calculation of its current loss provision rate, which is applied to the Company’s current premiums resulting in a title loss expense for the period, except for large claims and escrow losses. This loss provision rate is set to provide for estimated losses on current year policies and is determined using moving average ratios of recent actual policy loss payment experience (net of recoveries) to premium revenues. At each quarter end, the Company’s recorded reserve for title losses is based on the prior period’s reserve balance for claim losses, increased by the current period provision and reduced by actual paid claims. The resulting reserve balance is compared by management to its actuarially-based calculation of the ending reserve balance necessary to provide for future reported title losses. The actuarially-based calculation is a paid loss development calculation where loss development factors are selected based on company data and input from the Company’s third-party actuaries. The Company also obtains input from third-party actuaries in the form of a reserve analysis utilizing generally accepted actuarial methods. While the Company is responsible for determining its loss reserves, it utilizes this actuarial input to assess the overall reasonableness of its reserve estimation. If the Company’s r ecorded reserve amount is not at the third-party actuarial point estimate, but is within a reasonable range (+7.0%/-4.0%) of its actuarially-based reserve calculation and the actuary’s point estimate, the Company’s management assesses th e major factors contributing to the different reserve estimates in order to determine the overall reasonableness of its recorded reserve, as well as the position of the recorded reserves relative to the point estimate and the estimated range of reserves. The major factors considered can change from period to period and include items such as current trends in the real estate industry (which management can assess although there is a time lag in the development of this data for use by the actuary), the size and types of claims reported and changes in the Company’s claims management process. If the recorded amount is not within a reasonable range of the Company’s third-party actuary’s point estimate, the Company will adjust the recorded reserves in the current period and reassess the provision rate on a prospective basis. Once the Company’s reserve for title losses is recorded, it is reduced in future periods as a result of claims payments and may be increased or reduced by revisions to the Company’s estimate of the overall level of required reserves. Large claims (those exceeding $1.0 million on a single claim), including large title losses due to independent agency defalcations, are analyzed and reserved for separately due to the higher dollar amount of loss, lower volume of claims reported and sporadic reporting of such claims. Due to the inherent uncertainty in predicting future title policy losses, significant judgment is required by both the Company’s management and its third-party actuaries in estimating reserves. As a consequence, the Company’s ultimate liability may be materially greater or less than its current reserves and/or its third-party actuary’s calculated estimate. |
Cash equivalents | Cash equivalents. Cash equivalents are highly liquid investments with insignificant interest rate risks and maturities of three months or less at the time of acquisition. |
Short-term investments | Short-term investments. Short-term investments comprise time deposits with banks, federal government obligations and other investments maturing in less than one year. |
Investments in debt and equity securities | Investments in debt and equity securities. Investments in debt and equity securities are carried at fair value. Investments in debt securities are classified as available-for-sale and the net unrealized gains and losses on such investments, net of applicable deferred taxes, are included as a component of AOCI within stockholders' equity. Realized gains and losses on sales of investments are determined using the specific identification method. At the time unrealized gains and losses become realized, they are reclassified from AOCI using the specific identification method. Credit losses related to investments in debt securities are recognized through an allowance account, which is charged through income but may be reversed in future periods if no longer required. Fair value changes relating to investments in equity securities are recognized as part of net realized and unrealized gains and losses in the consolidated statements of income and comprehensive income |
Property and equipment | Property and equipment. Depreciation is principally computed using the straight-line method using the following estimated useful lives: buildings – 30 to 40 years and furniture and equipment – 3 to 5 years. Maintenance and repairs are expensed as incurred while improvements are capitalized. Gains and losses are recognized at disposal. |
Title plants | Title plants. Title plants include compilations of a county’s official land records, prior title examination files, copies of prior title policies, maps and related materials that are geographically indexed to a specific property. The costs of acquiring existing title plants and creating new ones, prior to the time such plants are placed in operation, are capitalized. Title plants are not amortized since there is no indication of any loss of value over time but are subject to review for impairment. The costs of maintaining and operating title plants are expensed as incurred. Gains and losses on sales of copies of title plants or interests in title plants are recognized at the time of sale. |
Impairment of long-lived assets | Impairment of long-lived assets. The Company reviews the carrying values of title plants and other long-lived assets if certain events occur that may indicate impairment. An impairment of these long-lived assets is indicated when, at the asset group level, projected undiscounted cash flows over the estimated lives of the assets are less than carrying values. If impairment is indicated, the recorded amounts are written down to fair values and charged to current operations. |
Goodwill | Goodwill. Goodwill is not amortized, but is reviewed annually during the third quarter using June 30 balances, or whenever occurrences of events indicate a potential impairment at the reporting unit level. The Company evaluates goodwill based on four reporting units with goodwill balances - direct operations, agency operations, international operations and ancillary services. Under GAAP, the Company has an option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company considers factors that include macroeconomic conditions, industry and market considerations, overall actual and expected financial performance, market perspective on the Company, as well as other relevant events and circumstances determined by management. The Company evaluates the weight of each factor to determine whether an impairment more-likely-than-not exists. If the Company decides not to use a qualitative assessment or if the reporting unit fails the qualitative assessment, the quantitative impairment analysis is performed. The quantitative analysis involves the comparison of the fair value of each reporting unit to its carrying amount. Goodwill impairment is calculated as the excess of the reporting unit's carrying amount over the estimated fair value and is charged to current operations. While the Company is responsible for assessing whether an impairment of goodwill exists, inputs from third-party appraisers are utilized in performing the quantitative analysis. The Company estimates the fair value using a combination of the income approach (discounted cash flow (DCF) technique) and the market approach (guideline company and precedent transaction analyses). The DCF model utilizes historical and projected operating results and cash flows, initially driven by estimates of changes in future revenue levels, and risk-adjusted discount rates. Projected operating results are primarily driven by anticipated mortgage originations, which are obtained from projections by industry experts, for the title reporting units and expected contractual revenues for the ancillary services reporting unit. Fluctuations in revenues, followed by the ability to appropriately adjust employee count and other operating expenses, or large and unanticipated adjustments to title loss reserves, are the primary reasons for increases or decreases in the projected operating results. Market-based valuation methodologies utilize (i) market multiples of earnings and/or other operating metrics of comparable companies and (ii) the Company's market capitalization and a control premium based on market data. |
Other intangibles | Other intangibles. Other intangible assets are comprised principally of customer relationships, acquired technology, acquired trademarks, non-compete agreements and underwriting agreements. Intangible assets are amortized over their estimated lives: 10 to 12 years for customer relationships, 5 to 7 years for acquired technology, 3 years to indefinite for acquired trademarks, 3 to 5 years for non-compete agreements and 5 to 25 years for underwriting agreements. These intangible assets are reviewed for impairment when certain events or changes in circumstances occur that indicate that the carrying amount of an asset may not be recoverable - refer to Note 1-K. |
Fair values | Fair values. The fair values of financial instruments, including cash and cash equivalents, short-term investments, notes receivable, notes payable and accounts payable, are determined by 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. The net fair values of these financial instruments approximate their carrying values. Investments in debt and equity securities and certain financial instruments are carried at their fair values. |
Leases | Leases. The Company primarily leases office space, storage units, data centers and equipment, and determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets and operating lease liabilities on the consolidated balance sheets. Operating lease assets represent the right to use the underlying leased assets over the corresponding lease terms. Finance leases are included in furniture and equipment notes payable |
Income taxes | Income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the tax basis and the book carrying values of certain assets and liabilities. To the extent that the Company does not believe its deferred tax assets meet the more-likely-than-not realization criteria, it establishes a valuation allowance. When it establishes a valuation allowance, or increases (decreases) the allowance during the year, it records a tax expense (benefit) in its consolidated statements of operations and comprehensive income (loss). Enacted tax rates are used in calculating amounts.The Company provides for uncertainties in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if any, are included in income tax expense. |
Business combinations | Business combinations. Amounts paid for acquisitions are allocated to the tangible and intangible assets acquired and liabilities assumed and are based on their estimated fair values at the date of acquisition. The excess of the fair value of the purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. If the initial purchase accounting for an acquisition is incomplete by the end of the reporting period in which the acquisition occurred, provisional amounts are recorded. The measurement period for an acquisition ends the sooner of one year from the acquisition date or when management obtains acquisition-date information necessary to complete the purchase accounting. Adjustments to provisional amounts initially recorded are recognized in the reporting period in which the adjustment amounts are determined. |
Investments in debt and equit_2
Investments in debt and equity securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt and equity securities | The total fair values of the Company's investments in debt and equity securities as of December 31 are detailed below: 2021 2020 (in $ thousands) Investments in: Debt securities 589,772 631,386 Equity securities 89,442 53,001 679,214 684,387 Net investment gains and losses recognized for the years ended December 31 related to investments in equity securities are follows: 2021 2020 2019 (in $ thousands) Total net investment gains (losses) recognized on equity securities during the period 19,351 (3,137) 4,825 Less: Net realized gains (losses) on equity securities sold during the period 1,631 (826) 783 Net unrealized investment gains (losses) recognized on equity securities still held at December 31 17,720 (2,311) 4,042 |
Amortized costs and fair values | The amortized costs and fair values of investments in debt securities as of December 31, are as follows: 2021 2020 Amortized Fair Amortized Fair (in $ thousands) Municipal 34,739 36,323 45,138 47,603 Corporate 249,757 258,102 285,962 305,450 Foreign 287,240 288,883 261,748 271,711 U.S. Treasury Bonds 6,429 6,464 6,564 6,622 578,165 589,772 599,412 631,386 Proceeds from sales of investments in securities for the years ended December 31 are as follows: 2021 2020 2019 (in $ thousands) Proceeds from sales of debt securities 68,450 36,449 46,834 Proceeds from sales of equity securities 843 791 3,771 Total proceeds from sales of investments in securities 69,293 37,240 50,605 |
Gross unrealized gains and losses | Gross unrealized gains and losses on investments in debt securities at December 31, were: 2021 2020 Gains Losses Gains Losses (in $ thousands) Municipal 1,585 1 2,465 — Corporate 9,389 1,044 19,594 106 Foreign 3,285 1,642 10,024 61 U.S. Treasury Bonds 60 25 82 24 14,319 2,712 32,165 191 |
Debt securities according to contractual terms | Debt securities at December 31, 2021 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized Fair (in $ thousands) In one year or less 71,014 71,860 After one year through five years 330,380 334,632 After five years through ten years 146,214 150,137 After ten years 30,557 33,143 578,165 589,772 |
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 December 31, 2021, were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values (in $ thousands) Municipal 1 130 — — 1 130 Corporate 588 42,231 456 12,014 1,044 54,245 Foreign 1,502 118,943 140 3,394 1,642 122,337 U.S. Treasury Bonds 8 477 17 508 25 985 2,099 161,781 613 15,916 2,712 177,697 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 (in $ thousands) 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) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value on recurring basis | At December 31, 2021, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value (in $ thousands) Investments in securities: Debt securities: Municipal — 36,323 — 36,323 Corporate — 258,102 — 258,102 Foreign — 288,883 — 288,883 U.S. Treasury Bonds — 6,464 — 6,464 Equity securities: 89,442 — — 89,442 89,442 589,772 — 679,214 At December 31, 2020, financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value (in $ thousands) 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 |
Investment income and net rea_2
Investment income and net realized and unrealized gains (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Income from investments and net realized and unrealized gains | Investment income and net realized and unrealized gains for the years ended December 31 are detailed below: 2021 2020 2019 (in $ thousands) Investment income: Debt securities 13,313 15,026 15,580 Equity securities, short-term investments, cash equivalents and other 3,542 3,581 4,215 16,855 18,607 19,795 Net realized and unrealized gains (losses): Realized gains 13,015 2,231 53,465 Realized losses (6,414) (1,598) (14,747) Net unrealized investment gains (losses) recognized on equity securities still held 17,720 (2,311) 4,042 24,321 (1,678) 42,760 |
Net gains (losses) on investments in equity securities still held | The total fair values of the Company's investments in debt and equity securities as of December 31 are detailed below: 2021 2020 (in $ thousands) Investments in: Debt securities 589,772 631,386 Equity securities 89,442 53,001 679,214 684,387 Net investment gains and losses recognized for the years ended December 31 related to investments in equity securities are follows: 2021 2020 2019 (in $ thousands) Total net investment gains (losses) recognized on equity securities during the period 19,351 (3,137) 4,825 Less: Net realized gains (losses) on equity securities sold during the period 1,631 (826) 783 Net unrealized investment gains (losses) recognized on equity securities still held at December 31 17,720 (2,311) 4,042 |
Proceeds from sale of investments available-for-sale | The amortized costs and fair values of investments in debt securities as of December 31, are as follows: 2021 2020 Amortized Fair Amortized Fair (in $ thousands) Municipal 34,739 36,323 45,138 47,603 Corporate 249,757 258,102 285,962 305,450 Foreign 287,240 288,883 261,748 271,711 U.S. Treasury Bonds 6,429 6,464 6,564 6,622 578,165 589,772 599,412 631,386 Proceeds from sales of investments in securities for the years ended December 31 are as follows: 2021 2020 2019 (in $ thousands) Proceeds from sales of debt securities 68,450 36,449 46,834 Proceeds from sales of equity securities 843 791 3,771 Total proceeds from sales of investments in securities 69,293 37,240 50,605 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income tax expense | Income tax expense consists of the following: 2021 2020 2019 (in $ thousands) Current income tax expense: Federal 57,274 47,778 12,329 State 7,600 3,235 846 Foreign 16,508 7,567 4,851 81,382 58,580 18,026 Deferred income tax expense (benefit): Federal 13,175 (10,429) 6,631 State 2,197 388 150 Foreign (2,765) 294 1,888 12,607 (9,747) 8,669 Total income tax expense 93,989 48,833 26,695 |
Reconciliation of income tax expense (benefit) at federal statutory rate | The following reconciles income tax expense computed at the federal statutory rate with income tax expense as reported (in $ thousands, except for income tax rates): 2021 2020 2019 Expected income tax expense at 21% (1) 87,613 42,785 22,116 State income tax expense - net of Federal impact 8,201 2,944 818 Valuation allowance (4,427) 2,427 1,326 Nondeductible expenses 4,090 2,399 3,249 Foreign income tax rate differential 3,549 1,465 138 Net (benefit) expense for the Canadian branch (2) (2,130) (1,478) 613 Research and development credits (398) (1,055) (278) Return-to-provision and true-up adjustments (1,617) (438) (776) Other – net (892) (216) (511) Income tax expense 93,989 48,833 26,695 Effective income tax rate (1) 22.5 % 24.0 % 25.3 % (1) Calculated using income before taxes and after noncontrolling interests. (2) For U.S. income tax purposes, the Company’s Canadian operation is a branch of Guaranty. As a result, the Canadian net deferred tax liability is offset in the U.S. as a deferred tax asset but not in an equal amount given differing tax rates in Canada and the U.S. |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities as of December 31 are detailed below. 2021 2020 (in $ thousands) Deferred tax assets: Net operating loss (NOL) carryforwards 22,615 5,036 Accrued expenses 20,922 18,747 Federal offset to Canadian deferred tax liability 7,591 8,299 Tax credit carryforwards 2,816 4,596 Deferred payroll taxes 1,782 3,297 Allowance for uncollectible amounts 1,719 1,056 Title loss provisions 1,191 1,100 Investments 1,161 1,529 Foreign currency translation adjustments 707 959 Net unrealized losses on investments in securities 361 2,719 Other intangibles from acquisitions — 1,321 Other 821 1,212 Deferred tax assets – gross 61,686 49,871 Valuation allowance (2,279) (6,471) Deferred tax assets – net 59,407 43,400 Deferred tax liabilities: Other intangible assets from acquisitions (34,180) — Amortization – goodwill and other intangibles (30,307) (26,669) Title loss provisions (18,233) (18,724) Fixed assets (10,074) (6,046) Net unrealized gains on investments in securities (7,131) (7,684) Deferred compensation on life insurance policies (2,517) (2,296) Investments (989) (1,193) Other (909) (310) Deferred tax liabilities – gross (104,340) (62,922) Net deferred income tax liability (44,933) (19,522) |
Goodwill and other intangibles
Goodwill and other intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | The summary of changes in goodwill is as follows: Title Ancillary Total (in $ thousands) Balances at January 1, 2020 243,161 5,729 248,890 Acquisitions 118,272 64,315 182,587 Balances at December 31, 2020 361,433 70,044 431,477 Acquisitions 241,484 258,069 499,553 Purchase adjustments (3,600) (2,570) (6,170) Disposals (23) — (23) Balances at December 31, 2021 599,294 325,543 924,837 |
Summary of intangibles by class | The summary of other intangibles by major class (refer to N ote 1 -M ) is as follows: Customer Relationships Technology Others Total (in $ thousands) Balances at December 31, 2021: Gross 125,727 92,962 42,837 261,526 Accumulated amortization (6,564) (9,155) (16,003) (31,722) Net 119,163 83,807 26,834 229,804 Balances at December 31, 2020: Gross 23,730 10,752 15,454 49,936 Accumulated amortization (1,051) (2,276) (9,227) (12,554) Net 22,679 8,476 6,227 37,382 |
Notes payable (Tables)
Notes payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of notes payable | A summary of notes payable is as follows: 2021 2020 (in $ thousands) 3.60% Senior Notes 444,106 — Line of credit facility (1) — 98,875 Other notes payable 39,385 2,898 483,491 101,773 (1) Average interest rates were 1.47% and 1.73% during the years ended December 31, 2021 and 2020, respectively. |
Estimated title losses (Tables)
Estimated title losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
Summary of estimated title losses | A summary of estimated title losses is as follows: 2021 2020 2019 (in $ thousands, except for loss ratios) Balances at January 1 496,275 459,053 461,560 Provisions: Current year 121,164 98,823 79,141 Previous policy years 5,079 16,401 5,282 Total provisions 126,243 115,224 84,423 Payments, net of recoveries: Current year (16,727) (15,455) (19,052) Previous policy years (54,772) (66,540) (71,956) Total payments, net of recoveries (71,499) (81,995) (91,008) Effects of changes in foreign currency exchange rates (1,405) 3,993 4,078 Balances at December 31 549,614 496,275 459,053 Loss ratios as a percentage of title operating revenues: Current year provisions 4.0 % 4.5 % 4.3 % Total provisions 4.2 % 5.3 % 4.6 % |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the stock activity | A summary of the restricted stock unit activity during the year ended December 31, 2021 is presented below: Units Weighted-Average Grant-Date Fair Value per Share ($) Outstanding at January 1, 2021 230,928 41.25 Granted 240,811 54.45 Converted (121,896) 42.68 Forfeited (11,143) 48.18 Outstanding at December 31, 2021 338,700 49.89 Nonvested at December 31, 2021 299,889 50.75 A summary of the stock option activity during the year ended December 31, 2021 is presented below: Units Weighted-Average Exercise Price ($) Outstanding at January 1, 2021 633,280 39.76 Granted 140,577 53.24 Exercised (4,546) 39.76 Forfeited (42,782) 41.78 Outstanding at December 31, 2021 726,529 42.25 Nonvested at December 31, 2021 611,229 42.72 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings (loss) per share | The calculation of the basic and diluted EPS is as follows: For the Years Ended December 31, 2021 2020 2019 Numerator (in $ thousands): Net income attributable to Stewart 323,216 154,905 78,615 Denominator (in thousands): Basic average shares outstanding 26,822 24,793 23,611 Average number of dilutive shares relating to options 197 — — Average number of dilutive shares relating to restricted units and shares 149 120 142 Diluted average shares outstanding 27,168 24,913 23,753 Basic earnings per share attributable to Stewart ($) 12.05 6.25 3.33 Diluted earnings per share attributable to Stewart ($) 11.90 6.22 3.31 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of lease-related assets and liabilities | Lease-related assets and liabilities as of December 31 are as follows: 2021 2020 (in $ thousands) Assets: Operating lease assets, net of accumulated amortization 134,578 106,479 Finance lease assets, net of accumulated depreciation 2,116 3,065 Total lease assets 136,694 109,544 Liabilities: Operating lease liabilities 149,417 119,089 Finance lease liabilities 1,013 1,911 Total lease liabilities 150,430 121,000 |
Other information related to operating and finance leases | Other information related to operating and finance leases during the years ended December 31 is as follows: 2021 2020 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities (in $ thousands) 43,933 957 40,452 1,913 Lease assets obtained in exchange for lease obligations (in $ thousands) 69,894 — 40,557 — Weighted average remaining lease term (years): 4.3 1.1 4.5 2.1 Weighted average discount rate 3.0 % 4.0 % 3.7 % 4.0 % |
Future minimum lease payments under operating leases | Future minimum lease payments under operating and finance leases as of December 31, 2021 are as follows: Operating Finance (in $ thousands) 2022 50,883 957 2023 40,408 80 2024 30,938 — 2025 19,873 — 2026 12,642 — Thereafter 14,612 — Total future minimum lease payments 169,356 1,037 Less: imputed interest (19,939) (24) Net future minimum lease payments 149,417 1,013 |
Future minimum lease payments under finance leases | Future minimum lease payments under operating and finance leases as of December 31, 2021 are as follows: Operating Finance (in $ thousands) 2022 50,883 957 2023 40,408 80 2024 30,938 — 2025 19,873 — 2026 12,642 — Thereafter 14,612 — Total future minimum lease payments 169,356 1,037 Less: imputed interest (19,939) (24) Net future minimum lease payments 149,417 1,013 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of operating revenues | The Company's operating revenues, summarized by type, are as follows: 2021 2020 2019 (in $ thousands) Title insurance premiums: Direct 960,118 716,779 615,646 Agency 1,582,640 1,151,030 970,540 Escrow fees 248,426 190,930 137,539 Appraisal management, abstract, and online notarization and closing services 315,078 134,304 82,050 Other revenues 158,354 78,460 71,678 3,264,616 2,271,503 1,877,453 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected statement of operations and income (loss) information related to segments | Selected statement of income information related to these segments for the years ended December 31 is as follows: 2021 2020 2019 (in $ thousands) Title segment: Revenues 3,034,318 2,205,301 1,857,048 Depreciation and amortization 21,451 15,230 19,971 Income before taxes and noncontrolling interest 440,211 246,878 108,459 Ancillary services and corporate segment: Revenues 271,474 83,131 82,960 Depreciation and amortization 14,935 3,986 2,555 (Loss) income before taxes and noncontrolling interest (6,240) (28,373) 8,508 Consolidated Stewart: Revenues 3,305,792 2,288,432 1,940,008 Depreciation and amortization 36,386 19,216 22,526 Income before taxes and noncontrolling interest 433,971 218,505 116,967 |
Revenues generated in domestic and all international operations | Revenues for the years ended December 31 in the United States and all international operations are as follows: 2021 2020 2019 (in $ thousands) United States 3,107,817 2,154,672 1,816,531 International 197,975 133,760 123,477 3,305,792 2,288,432 1,940,008 |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of changes in other comprehensive income (loss) | Changes in the balances of each component of other comprehensive income (loss) and the related tax effects are as follows (in $ thousands): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Foreign currency translation adjustments (298) 381 (679) 5,777 988 4,789 8,337 1,859 6,478 Net unrealized gains and losses on investments: Change in net unrealized gains and losses on investments (17,279) (3,629) (13,650) 19,548 4,105 15,443 19,220 4,036 15,184 Reclassification adjustment for realized gains and losses on investments (3,088) (648) (2,440) (647) (136) (511) 519 109 410 (20,367) (4,277) (16,090) 18,901 3,969 14,932 19,739 4,145 15,594 Other comprehensive (loss) income (20,665) (3,896) (16,769) 24,678 4,957 19,721 28,076 6,004 22,072 |
General - General (Details)
General - General (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated title revenues | Texas, New York, California, Florida, Colorado and international markets (principally Canada) | Texas, New York, California, Florida, Arizona, Colorado and international markets (principally Canada) | |
Concentration Risk [Line Items] | |
Revenue percentage | 52.00% |
General - Title Losses and Rela
General - Title Losses and Related Claims (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Reserve for Title Losses [Line Items] | |
Threshold amount for large claims | $ 1,000,000 |
Maximum | |
Reserve for Title Losses [Line Items] | |
Reserve amount, threshold percentage | 7.00% |
Minimum | |
Reserve for Title Losses [Line Items] | |
Reserve amount, threshold percentage | 4.00% |
General - Property and Equipmen
General - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life (years) | 30 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life (years) | 40 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life (years) | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life (years) | 5 years |
General - Goodwill (Details)
General - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2021reporting_unit | |
Accounting Policies [Abstract] | |
Number of reporting units | 4 |
General - Other Intangibles (De
General - Other Intangibles (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer Relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 10 years |
Customer Relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 12 years |
Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 5 years |
Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 7 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 3 years |
Non-compete agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 3 years |
Non-compete agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 5 years |
Underwriting agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 5 years |
Underwriting agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated life (years) | 25 years |
General - Leases (Details)
General - Leases (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Furniture and equipment | Furniture and equipment |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Notes payable | Notes payable |
Restrictions on cash and inve_2
Restrictions on cash and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Statutory reserve funds | $ 523,454 | $ 496,594 |
Restricted cash and cash equivalent | $ 41,400 | $ 20,000 |
Statutory surplus and dividen_2
Statutory surplus and dividend restrictions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | |
Dividends Payable [Line Items] | ||||
Dividends paid by guaranty | $ 293.9 | $ 30 | ||
Extraordinay dividends paid | 135 | |||
Surplus for guaranty | 826.9 | 794.7 | ||
Statutory net income | 188.8 | $ 133.2 | $ 38.3 | |
Statutory capital and surplus necessary to satisfy regulatory requirements for guaranty | 2 | |||
Underwriter entities | ||||
Dividends Payable [Line Items] | ||||
Statutory capital and surplus necessary to satisfy regulatory requirements for guaranty | $ 2 | |||
Forecast | ||||
Dividends Payable [Line Items] | ||||
Maximum amount of dividend to be paid | $ 210.1 |
Investments in debt and equit_3
Investments in debt and equity securities - Investments in Debt and Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities | $ 589,772 | $ 631,386 |
Equity securities | 89,442 | 53,001 |
Investments in debt and equity securities | $ 679,214 | $ 684,387 |
Investments in debt and equit_4
Investments in debt and equity securities - Additional Information (Details) $ in Thousands | Dec. 31, 2021USD ($)investment | Dec. 31, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized investment gains on equity securities | $ 21,100 | $ 4,400 |
Debt Securities, Available-for-sale [Line Items] | ||
Foreign debt securities | $ 589,772 | 631,386 |
Number of investments in an unrealized loss position | investment | 95 | |
Number of investments in an unrealized loss positions for more than 12 months | investment | 9 | |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Foreign debt securities | $ 288,883 | 271,711 |
Foreign | Canada | ||
Debt Securities, Available-for-sale [Line Items] | ||
Foreign debt securities | 257,900 | 240,400 |
Foreign | United Kingdom | ||
Debt Securities, Available-for-sale [Line Items] | ||
Foreign debt securities | $ 24,200 | $ 25,200 |
Investments in debt and equit_5
Investments in debt and equity securities - Amortized Costs and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | $ 578,165 | $ 599,412 |
Fair values | 589,772 | 631,386 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 34,739 | 45,138 |
Fair values | 36,323 | 47,603 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 249,757 | 285,962 |
Fair values | 258,102 | 305,450 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 287,240 | 261,748 |
Fair values | 288,883 | 271,711 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized costs | 6,429 | 6,564 |
Fair values | $ 6,464 | $ 6,622 |
Investments in debt and equit_6
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Gains | $ 14,319 | $ 32,165 |
Losses | 2,712 | 191 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 1,585 | 2,465 |
Losses | 1 | 0 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 9,389 | 19,594 |
Losses | 1,044 | 106 |
Foreign | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 3,285 | 10,024 |
Losses | 1,642 | 61 |
U.S. Treasury Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gains | 60 | 82 |
Losses | $ 25 | $ 24 |
Investments in debt and equit_7
Investments in debt and equity securities - Debt Securities According Contractual Terms (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized costs | ||
In one year or less | $ 71,014 | |
After one year through five years | 330,380 | |
After five years through ten years | 146,214 | |
After ten years | 30,557 | |
Amortized costs | 578,165 | $ 599,412 |
Fair values | ||
In one year or less | 71,860 | |
After one year through five years | 334,632 | |
After five years through ten years | 150,137 | |
After ten years | 33,143 | |
Fair values | $ 589,772 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Losses | ||
Less than 12 months | $ 2,099 | $ 146 |
More than 12 months | 613 | 45 |
Total | 2,712 | 191 |
Fair values | ||
Less than 12 months | 161,781 | 16,430 |
More than 12 months | 15,916 | 1,276 |
Total | 177,697 | 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 | 588 | 106 |
More than 12 months | 456 | 0 |
Total | 1,044 | 106 |
Fair values | ||
Less than 12 months | 42,231 | 13,518 |
More than 12 months | 12,014 | 0 |
Total | 54,245 | 13,518 |
Foreign | ||
Losses | ||
Less than 12 months | 1,502 | 40 |
More than 12 months | 140 | 21 |
Total | 1,642 | 61 |
Fair values | ||
Less than 12 months | 118,943 | 2,912 |
More than 12 months | 3,394 | 254 |
Total | 122,337 | 3,166 |
U.S. Treasury Bonds | ||
Losses | ||
Less than 12 months | 8 | 0 |
More than 12 months | 17 | 24 |
Total | 25 | 24 |
Fair values | ||
Less than 12 months | 477 | 0 |
More than 12 months | 508 | 1,022 |
Total | $ 985 | $ 1,022 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 589,772 | $ 631,386 |
Equity securities | 89,442 | 53,001 |
Investments in debt and equity securities | 679,214 | 684,387 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 89,442 | 53,001 |
Investments in debt and equity securities | 89,442 | 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 | 589,772 | 631,386 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Investments in debt and equity securities | 0 | 0 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 36,323 | 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 | 36,323 | 47,603 |
Municipal | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 258,102 | 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 | 258,102 | 305,450 |
Corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 288,883 | 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 | 288,883 | 271,711 |
Foreign | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 6,464 | 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 | 6,464 | 6,622 |
U.S. Treasury Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 0 | $ 0 |
Investment income and net rea_3
Investment income and net realized and unrealized gains - Income from Investments and Net Realized and Unrealized Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | $ 16,855 | $ 18,607 | $ 19,795 |
Net realized and unrealized gains (losses): | |||
Realized gains | 13,015 | 2,231 | 53,465 |
Realized losses | (6,414) | (1,598) | (14,747) |
Net unrealized investment gains (losses) recognized on equity securities still held | 17,720 | (2,311) | 4,042 |
Investment and other gains (losses) – net | 24,321 | (1,678) | 42,760 |
Debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | 13,313 | 15,026 | 15,580 |
Equity securities, short-term investments, cash equivalents and other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | $ 3,542 | $ 3,581 | $ 4,215 |
Investment income and net rea_4
Investment income and net realized and unrealized gains - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains from sale of buildings and other fixed assets | $ 6.1 | ||
Net gains from contingent consideration liabilities | 3.8 | ||
Realized losses on disposals | $ 2.7 | ||
Unrealized investment losses on equity securities | $ 2.3 | ||
Realized gain (loss) | (0.6) | $ 2.5 | |
Realized gains on equity investment | $ 1.2 | ||
Gain realized from termination fee paid by FNF | 50 | ||
Net unrealized gains on equity securities | 4 | ||
Impairment expenses | $ 14.7 |
Investment income and net rea_5
Investment income and net realized and unrealized gains - Net Gains (Losses) on Investments in Equity Securities Still Held (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total net investment gains (losses) recognized on equity securities during the period | $ 19,351 | $ (3,137) | $ 4,825 |
Less: Net realized gains (losses) on equity securities sold during the period | 1,631 | (826) | 783 |
Net unrealized investment gains (losses) recognized on equity securities still held at December 31 | $ 17,720 | $ (2,311) | $ 4,042 |
Investment income and net rea_6
Investment income and net realized and unrealized gains - Proceeds from Sale of Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Total proceeds from sales of investments in securities | $ 69,293 | $ 37,240 | $ 50,605 |
Debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales of debt securities | 68,450 | 36,449 | 46,834 |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales of equity securities | $ 843 | $ 791 | $ 3,771 |
Income taxes - Income Tax Expen
Income taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense: | |||
Federal | $ 57,274 | $ 47,778 | $ 12,329 |
State | 7,600 | 3,235 | 846 |
Foreign | 16,508 | 7,567 | 4,851 |
Current income tax expense: | 81,382 | 58,580 | 18,026 |
Deferred income tax expense (benefit): | |||
Federal | 13,175 | (10,429) | 6,631 |
State | 2,197 | 388 | 150 |
Foreign | (2,765) | 294 | 1,888 |
Deferred income tax expense (benefit): | 12,607 | (9,747) | 8,669 |
Total income tax expense | $ 93,989 | $ 48,833 | $ 26,695 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Income Tax Expenses Computed at Federal Statutory Rate with Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Tax Rate Reconciliation [Line Items] | |||
Expected income tax expense at 21% | $ 87,613 | $ 42,785 | $ 22,116 |
State income tax expense - net of Federal impact | 8,201 | 2,944 | 818 |
Valuation allowance | (4,427) | 2,427 | 1,326 |
Nondeductible expenses | 4,090 | 2,399 | 3,249 |
Research and development credits | (398) | (1,055) | (278) |
Return-to-provision and true-up adjustments | (1,617) | (438) | (776) |
Other – net | (892) | (216) | (511) |
Total income tax expense | $ 93,989 | $ 48,833 | $ 26,695 |
Effective income tax rate | 22.50% | 24.00% | 25.30% |
Foreign | |||
Effective Tax Rate Reconciliation [Line Items] | |||
Foreign income tax rate differential | $ 3,549 | $ 1,465 | $ 138 |
Canada | |||
Effective Tax Rate Reconciliation [Line Items] | |||
Foreign income tax rate differential | $ (2,130) | $ (1,478) | $ 613 |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss (NOL) carryforwards | $ 22,615 | $ 5,036 |
Accrued expenses | 20,922 | 18,747 |
Federal offset to Canadian deferred tax liability | 7,591 | 8,299 |
Tax credit carryforwards | 2,816 | 4,596 |
Deferred payroll taxes | 1,782 | 3,297 |
Allowance for uncollectible amounts | 1,719 | 1,056 |
Title loss provisions | 1,191 | 1,100 |
Investments | 1,161 | 1,529 |
Foreign currency translation adjustments | 707 | 959 |
Net unrealized losses on investments in securities | 361 | 2,719 |
Other intangibles from acquisitions | 0 | 1,321 |
Other | 821 | 1,212 |
Deferred tax assets – gross | 61,686 | 49,871 |
Valuation allowance | (2,279) | (6,471) |
Deferred tax assets – net | 59,407 | 43,400 |
Deferred tax liabilities: | ||
Amortization – goodwill and other intangibles | (34,180) | 0 |
Amortization – goodwill and other intangibles | (30,307) | (26,669) |
Title loss provisions | (18,233) | (18,724) |
Fixed assets | (10,074) | (6,046) |
Net unrealized gains on investments in securities | (7,131) | (7,684) |
Deferred compensation on life insurance policies | (2,517) | (2,296) |
Investments | (989) | (1,193) |
Other | (909) | (310) |
Deferred tax liabilities – gross | (104,340) | (62,922) |
Net deferred income tax liability | $ (44,933) | $ (19,522) |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
U.S. federal NOL carryforward from an acquisition in 2021 with no expiration | $ 17.4 |
Foreign tax credit carryforwards with expiration | $ 1.4 |
Goodwill and other intangible_2
Goodwill and other intangibles - Summary of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill summary | ||
Beginning balances | $ 431,477 | $ 248,890 |
Acquisitions | 499,553 | 182,587 |
Purchase adjustments | (6,170) | |
Disposals | (23) | |
Ending balances | 924,837 | 431,477 |
Title | ||
Goodwill summary | ||
Beginning balances | 361,433 | 243,161 |
Acquisitions | 241,484 | 118,272 |
Purchase adjustments | (3,600) | |
Disposals | (23) | |
Ending balances | 599,294 | 361,433 |
Ancillary Services and Corporate | ||
Goodwill summary | ||
Beginning balances | 70,044 | 5,729 |
Acquisitions | 258,069 | 64,315 |
Purchase adjustments | (2,570) | |
Disposals | 0 | |
Ending balances | $ 325,543 | $ 70,044 |
Goodwill and other intangible_3
Goodwill and other intangibles - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Tax-deductible goodwill | $ 172.6 | |
Amortization expense of other intangibles | 19.2 | $ 5.1 |
Future amortization expense | ||
Expected amortization expense in 2022 | 33.5 | |
Expected amortization expense in 2023 | 31.6 | |
Expected amortization expense in 2024 | 28.7 | |
Expected amortization expense in 2025 | 27.5 | |
Expected amortization expense in 2026 | 23 | |
Title | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles acquired | 44.3 | 0.7 |
Ancillary Services and Corporate | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles acquired | $ 167.3 | $ 37.1 |
Goodwill and other intangible_4
Goodwill and other intangibles - Summary of Intangibles by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 261,526 | $ 49,936 |
Accumulated amortization | (31,722) | (12,554) |
Net | 229,804 | 37,382 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 125,727 | 23,730 |
Accumulated amortization | (6,564) | (1,051) |
Net | 119,163 | 22,679 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 92,962 | 10,752 |
Accumulated amortization | (9,155) | (2,276) |
Net | 83,807 | 8,476 |
Others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 42,837 | 15,454 |
Accumulated amortization | (16,003) | (9,227) |
Net | $ 26,834 | $ 6,227 |
Notes payable - Summary of Note
Notes payable - Summary of Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Other notes payable | $ 39,385 | $ 2,898 | |
Notes payable | $ 483,491 | $ 101,773 | |
Average interest rate | 1.47% | 1.73% | |
Line of credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility | $ 0 | $ 98,875 | |
3.60% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 3.60% | ||
3.60% Senior Notes | $ 444,106 | $ 0 |
Notes payable - Additional Info
Notes payable - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2021 | Oct. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | May 31, 2020 | Apr. 30, 2020 | |
Debt Disclosure [Abstract] | ||||||||
Principal payments due in 2022 | $ 38,600,000 | |||||||
Principal payments due in 2023 | 400,000 | |||||||
Principal payments due in 2024 | 400,000 | |||||||
Principal payments due in 2025 | 0 | |||||||
Principal payments due in 2026 | 0 | |||||||
Debt Instrument [Line Items] | ||||||||
Capital lease obligation | 1,013,000 | $ 1,911,000 | ||||||
Proceeds from notes payable | 1,197,351,000 | 16,456,000 | $ 30,464,000 | |||||
Other notes payable | 39,385,000 | 2,898,000 | ||||||
Notes payable, other than banks | ||||||||
Debt Instrument [Line Items] | ||||||||
Other notes payable | 37,100,000 | $ 700,000 | ||||||
Senior Notes | 3.60% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 450,000,000 | |||||||
Stated interest rate (as a percent) | 3.60% | |||||||
Debt issuance costs | $ 444,000,000 | |||||||
Senior Notes | 3.60% Senior Notes | At any time prior to August 15, 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption notice period | 1500.00% | |||||||
Senior Notes | 3.60% Senior Notes | Minimum | At any time prior to August 15, 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 100.00% | |||||||
Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank line of credit facility amount | $ 350,000,000 | $ 200,000,000 | $ 150,000,000 | |||||
Line of credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity | 197,500,000 | |||||||
Line of credit | Letter of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity | $ 2,500,000 | |||||||
Line of credit | New Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||
Line of credit | New Credit Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Increase limit | $ 125,000,000 | |||||||
Line of credit | New Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee (percent) | 0.15% | |||||||
Line of credit | New Credit Agreement | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit (percent) | 0.25% | |||||||
Line of credit | New Credit Agreement | Minimum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit (percent) | 1.25% | |||||||
Line of credit | New Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee (percent) | 0.30% | |||||||
Line of credit | New Credit Agreement | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit (percent) | 0.625% | |||||||
Line of credit | New Credit Agreement | Maximum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit (percent) | 1.625% | |||||||
Line of credit | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||
Debt instrument, term | 364 days | |||||||
Proceeds from notes payable | $ 370,000,000 |
Estimated title losses - Estima
Estimated title losses - Estimated Title Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingency Accrual | |||
Balances at beginning of period | $ 496,275 | $ 459,053 | $ 461,560 |
Provisions: | |||
Current year | 121,164 | 98,823 | 79,141 |
Previous policy years | 5,079 | 16,401 | 5,282 |
Total provisions | 126,243 | 115,224 | 84,423 |
Payments, net of recoveries: | |||
Current year | (16,727) | (15,455) | (19,052) |
Previous policy years | (54,772) | (66,540) | (71,956) |
Total payments, net of recoveries | (71,499) | (81,995) | (91,008) |
Effects of changes in foreign currency exchange rates | (1,405) | 3,993 | 4,078 |
Balances at end of period | $ 549,614 | $ 496,275 | $ 459,053 |
Loss ratios as a percentage of title operating revenues: | |||
Current year provisions | 4.00% | 4.50% | 4.30% |
Total provisions | 4.20% | 5.30% | 4.60% |
Estimated title losses - Additi
Estimated title losses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Large Title claims | |||
Gain (Loss) on Securities [Line Items] | |||
Total provisions related to prior policy years | $ 6.1 | $ 12 | $ 6 |
Share-based payments - Addition
Share-based payments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 140,577 | 647,800 | |
Average grant price (in usd per share) | $ 9.24 | $ 5.32 | |
Grant price (in usd per share) | $ 53.24 | $ 39.76 | |
Intrinsic Value | $ 27.2 | ||
Remaining contractual term | 8 years 3 months 18 days | ||
Fair value of vested shares | $ 6.9 | $ 5.6 | |
Compensation costs | $ 12 | 5.8 | $ 2.1 |
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 vesting period | 3 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Stock options | First anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 20.00% | ||
Stock options | Second anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 30.00% | ||
Stock options | Third anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 50.00% | ||
Restricted stock and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair values at grant date | $ 13.1 | $ 4.1 | $ 5.1 |
Granted (in shares) | 240,800 | 104,200 | 122,400 |
Average grant price (in usd per share) | $ 54.45 | $ 39.78 | $ 42.02 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits related to vesting of awards | $ 0.8 | $ 0.6 | $ 0.5 |
Compensation costs not yet recognized | $ 9.7 | ||
Compensation costs not yet recognized, period for recognition | 2 years 1 month 6 days |
Share-based payments - Summary
Share-based payments - Summary of Restricted Common Stock Unit Activity (Details) - Restricted stock unit | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Units | |
Outstanding at January 1, 2020 (in shares) | shares | 230,928 |
Granted (in shares) | shares | 240,811 |
Vested/Converted (in shares) | shares | (121,896) |
Forfeited (in shares) | shares | (11,143) |
Outstanding at December 31, 2020 (in shares) | shares | 338,700 |
Nonvested balance at end of period (in shares) | shares | 299,889 |
Weighted-Average Grant-Date Fair Value per Share ($) | |
Outstanding at January 1, 2020 (in usd per share) | $ / shares | $ 41.25 |
Granted (in usd per share) | $ / shares | 54.45 |
Vested/Converted (in usd per share) | $ / shares | 42.68 |
Forfeited (in usd per share) | $ / shares | 48.18 |
Outstanding at December 31, 2020 (in usd per share) | $ / shares | 49.89 |
Nonvested balance at end of period (in usd per share) | $ / shares | $ 50.75 |
Share-based payments - Schedule
Share-based payments - Schedule Of Options Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Units | ||
Outstanding at January 1, 2021 (in shares) | 633,280 | |
Granted (in shares) | 140,577 | 647,800 |
Exercised (in shares) | (4,546) | |
Forfeitures (in shares) | (42,782) | |
Outstanding at December 31, 2021 (in shares) | 726,529 | 633,280 |
Nonvested at December 31, 2021 (in shares) | 611,229 | |
Weighted-Average Exercise Price ($) | ||
Outstanding at January 1, 2021 (in usd per share) | $ 39.76 | |
Granted (in usd per share) | 53.24 | $ 39.76 |
Exercised (in usd per share) | 39.76 | |
Forfeited (in usd per share) | 41.78 | |
Outstanding at December 31, 2021 (in usd per share) | 42.25 | $ 39.76 |
Nonvested at December 31, 2021 (in shares) | $ 42.72 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator (in $ thousands): | |||
Net income attributable to Stewart | $ 323,216 | $ 154,905 | $ 78,615 |
Denominator (in thousands): | |||
Basic average shares outstanding (in shares) | 26,822 | 24,793 | 23,611 |
Diluted average shares outstanding (in shares) | 27,168 | 24,913 | 23,753 |
Basic earnings per share attributable to Stewart (in usd per share) | $ 12.05 | $ 6.25 | $ 3.33 |
Diluted earnings per share attributable to Stewart (in usd per share) | $ 11.90 | $ 6.22 | $ 3.31 |
Stock options | |||
Denominator (in thousands): | |||
Average number of dilutive shares relating to restricted shares and units (in shares) | 197 | 0 | 0 |
Restricted stock and restricted stock units | |||
Denominator (in thousands): | |||
Average number of dilutive shares relating to restricted shares and units (in shares) | 149 | 120 | 142 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Total amount of premiums for assumed and ceded risks as a percentage of consolidated title revenue (less than) | 1.00% | 1.00% | 1.00% |
Reinsurance recoverables | $ 0 | $ 0 | |
Reinsurance payable | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 46.5 | $ 41.1 | $ 44.2 |
Short-term lease expense | 3.6 | 3.4 | 4.2 |
Total finance lease expense | $ 1 | $ 1.4 | $ 2.4 |
Leases - Classification of Leas
Leases - Classification of Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Operating lease assets, net of accumulated amortization | $ 134,578 | $ 106,479 |
Finance lease assets, net of accumulated depreciation | 2,116 | 3,065 |
Total lease assets | 136,694 | 109,544 |
Liabilities: | ||
Operating lease liabilities | 149,417 | 119,089 |
Finance lease liabilities | 1,013 | 1,911 |
Total lease liabilities | $ 150,430 | $ 121,000 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 43,933 | $ 40,452 |
Lease assets obtained in exchange for lease obligations | $ 69,894 | $ 40,557 |
Weighted average remaining lease term (years) | 4 years 3 months 18 days | 4 years 6 months |
Weighted average discount rate | 3.00% | 3.70% |
Finance | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 957 | $ 1,913 |
Lease assets obtained in exchange for lease obligations | $ 0 | $ 0 |
Weighted average remaining lease term (years) | 1 year 1 month 6 days | 2 years 1 month 6 days |
Weighted average discount rate | 4.00% | 4.00% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating | ||
2022 | $ 50,883 | |
2023 | 40,408 | |
2024 | 30,938 | |
2025 | 19,873 | |
2026 | 12,642 | |
Thereafter | 14,612 | |
Total future minimum lease payments | 169,356 | |
Less: imputed interest | (19,939) | |
Net future minimum lease payments | 149,417 | $ 119,089 |
Finance | ||
2022 | 957 | |
2023 | 80 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 1,037 | |
Less: imputed interest | (24) | |
Net future minimum lease payments | $ 1,013 | $ 1,911 |
Contingent liabilities and co_2
Contingent liabilities and commitments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Guarantee of indebtedness, relating to unused letters of credit | $ 4.9 |
Escrow account deposit | |
Loss Contingencies [Line Items] | |
Contingent liability, escrow deposit | 3,300 |
Escrow account deposit - Section 1031 Exchange | |
Loss Contingencies [Line Items] | |
Contingent liability, escrow deposit | $ 2,500 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Operating revenues | $ 3,264,616 | $ 2,271,503 | $ 1,877,453 |
Title insurance premiums, Direct | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 960,118 | 716,779 | 615,646 |
Title insurance premiums, Agency | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 1,582,640 | 1,151,030 | 970,540 |
Escrow fees | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 248,426 | 190,930 | 137,539 |
Appraisal management, abstract, and online notarization and closing services | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | 315,078 | 134,304 | 82,050 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenues | $ 158,354 | $ 78,460 | $ 71,678 |
Segment information - Additiona
Segment information - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021segment | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 2 | |
Gain realized from termination fee paid by FNF | $ | $ 50 |
Segment information - Selected
Segment information - Selected Statement of Operations and Income (Loss) Information Related to Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,305,792 | $ 2,288,432 | $ 1,940,008 |
Depreciation and amortization | 36,386 | 19,216 | 22,526 |
(Loss) income before taxes and noncontrolling interest | 433,971 | 218,505 | 116,967 |
Title segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,034,318 | 2,205,301 | 1,857,048 |
Depreciation and amortization | 21,451 | 15,230 | 19,971 |
(Loss) income before taxes and noncontrolling interest | 440,211 | 246,878 | 108,459 |
Ancillary services and corporate segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 271,474 | 83,131 | 82,960 |
Depreciation and amortization | 14,935 | 3,986 | 2,555 |
(Loss) income before taxes and noncontrolling interest | $ (6,240) | $ (28,373) | $ 8,508 |
Segment information - Revenues
Segment information - Revenues Generated in Domestic and Foreign Country (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 3,305,792 | $ 2,288,432 | $ 1,940,008 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 3,107,817 | 2,154,672 | 1,816,531 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 197,975 | $ 133,760 | $ 123,477 |
Other comprehensive income (l_3
Other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Before-Tax Amount | |||
Other comprehensive (loss) income | $ (20,665) | $ 24,678 | $ 28,076 |
Tax Expense (Benefit) | |||
Other comprehensive (loss) income | (3,896) | 4,957 | 6,004 |
Net-of-Tax Amount | |||
Other comprehensive (loss) income | (16,769) | 19,721 | 22,072 |
Foreign currency translation adjustments | |||
Before-Tax Amount | |||
Other comprehensive (loss) income | (298) | 5,777 | 8,337 |
Tax Expense (Benefit) | |||
Other comprehensive (loss) income | 381 | 988 | 1,859 |
Net-of-Tax Amount | |||
Other comprehensive (loss) income | (679) | 4,789 | 6,478 |
Net unrealized gains and losses on investments | |||
Before-Tax Amount | |||
Change in net unrealized gains and losses on investments | (17,279) | 19,548 | 19,220 |
Reclassification adjustment for realized gains and losses on investments | (3,088) | (647) | 519 |
Other comprehensive (loss) income | (20,367) | 18,901 | 19,739 |
Tax Expense (Benefit) | |||
Change in net unrealized gains and losses on investments | (3,629) | 4,105 | 4,036 |
Reclassification adjustment for realized gains and losses on investments | (648) | (136) | 109 |
Other comprehensive (loss) income | (4,277) | 3,969 | 4,145 |
Net-of-Tax Amount | |||
Change in net unrealized gains and losses on investments | (13,650) | 15,443 | 15,184 |
Reclassification adjustment for realized gains and losses on investments | (2,440) | (511) | 410 |
Other comprehensive (loss) income | $ (16,090) | $ 14,932 | $ 15,594 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common stock issued an aggregate (in shares) | 3,026,340 | ||
Common stock par value (in usd per share) | $ 1 | ||
Issuance of Common Stock | $ 0 | $ 108,961 | $ 0 |
Schedule I - Financial Inform_2
Schedule I - Financial Information of the Registrant (Parent Company) - Statements of Income and Retained Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Merger termination fee | $ 50,000 | ||
Revenues | $ 3,305,792 | $ 2,288,432 | 1,940,008 |
Expenses | |||
Interest | 5,031 | 2,624 | 4,341 |
Other operating expenses | 626,762 | 375,188 | 345,349 |
Total expenses | 2,871,821 | 2,069,927 | 1,823,041 |
Income tax expense | (93,989) | (48,833) | (26,695) |
Net income attributable to Stewart | 323,216 | 154,905 | 78,615 |
Retained Earnings [Roll Forward] | |||
Retained earnings at beginning of year | 688,819 | ||
Retained earnings at end of year | 974,800 | 688,819 | |
Parent company | |||
Revenues | |||
Interest income and other net realized gains (losses) | (281) | 1,182 | 753 |
Merger termination fee | 0 | 0 | 50,000 |
Revenues | (281) | 1,182 | 50,753 |
Expenses | |||
Interest | 5,101 | 2,511 | 4,106 |
Other operating expenses | 6,924 | 9,262 | 12,787 |
Total expenses | 12,025 | 11,773 | 16,893 |
(Loss) income before taxes and income from investments in subsidiaries | (12,306) | (10,591) | 33,860 |
Income tax expense | 0 | (15) | (15) |
Income from investments in subsidiaries | 335,522 | 165,511 | 44,770 |
Net income attributable to Stewart | 323,216 | 154,905 | 78,615 |
Retained Earnings [Roll Forward] | |||
Retained earnings at beginning of year | 688,819 | 564,392 | 514,248 |
Cash dividends on Common Stock | (37,235) | (30,478) | (28,471) |
Retained earnings at end of year | $ 974,800 | $ 688,819 | $ 564,392 |
Schedule I - Financial Inform_3
Schedule I - Financial Information of the Registrant (Parent Company) - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash and cash equivalents | $ 485,919 | $ 432,683 | ||
Receivables: | ||||
Notes - due from subsidiaries | 1,124 | 1,557 | ||
Total receivables | 119,340 | 87,812 | ||
Property and equipment, at cost: | ||||
Furniture and equipment | 216,261 | 168,147 | ||
Accumulated depreciation | (165,653) | (142,038) | ||
Total property and equipment, at cost | 72,456 | 51,671 | ||
Investments in subsidiaries, on an equity-method basis | 4,754 | 6,765 | ||
Operating lease assets | 134,578 | 106,479 | ||
Goodwill | 924,837 | 431,477 | $ 248,890 | |
Other assets | 64,105 | 42,048 | ||
Total assets | 2,813,362 | 1,978,575 | ||
Liabilities | ||||
Accounts payable and other liabilities | 287,326 | 225,180 | ||
Operating lease liabilities | 149,417 | 119,089 | ||
Notes payable | 483,491 | 101,773 | ||
Total liabilities | 1,518,627 | 966,169 | ||
Contingent liabilities and commitments | ||||
Stockholders’ equity | ||||
Common Stock – $1 par, authorized 51,500,000; issued 27,245,591 and 27,080,403; outstanding 26,893,430 and 26,728,242, respectively | 27,246 | 27,080 | ||
Additional paid-in capital | 282,376 | 274,857 | ||
Retained earnings | 974,800 | 688,819 | ||
Accumulated other comprehensive income (loss) (AOCI): | ||||
Foreign currency translation adjustments | (8,917) | (8,238) | ||
Net unrealized investment gains | 9,170 | 25,260 | ||
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) | ||
Total stockholders’ equity | 1,282,009 | 1,005,112 | ||
Total liabilities and stockholders' equity | 2,813,362 | 1,978,575 | ||
Parent company | ||||
Assets | ||||
Cash and cash equivalents | 15,527 | 3,604 | ||
Receivables: | ||||
Notes - due from subsidiaries | 0 | 45,193 | ||
Receivables from affiliates | 21,519 | 2,258 | ||
Total receivables | 21,519 | 47,451 | ||
Property and equipment, at cost: | ||||
Furniture and equipment | 47 | 75 | ||
Accumulated depreciation | (46) | (74) | ||
Total property and equipment, at cost | 1 | 1 | ||
Investments in subsidiaries, on an equity-method basis | 1,698,280 | 1,055,154 | ||
Operating lease assets | 5,859 | 7,439 | ||
Goodwill | 8,068 | 8,068 | ||
Other assets | 19,659 | 16,339 | ||
Total assets | 1,768,913 | 1,138,056 | ||
Liabilities | ||||
Accounts payable and other liabilities | 24,829 | 24,040 | ||
Operating lease liabilities | 7,961 | 10,029 | ||
Notes payable | 454,106 | 98,875 | ||
Total liabilities | 486,896 | 132,944 | ||
Contingent liabilities and commitments | 0 | 0 | ||
Stockholders’ equity | ||||
Common Stock – $1 par, authorized 51,500,000; issued 27,245,591 and 27,080,403; outstanding 26,893,430 and 26,728,242, respectively | 27,246 | 27,080 | ||
Additional paid-in capital | 282,383 | 274,857 | ||
Retained earnings | 974,800 | 688,819 | $ 564,392 | $ 514,248 |
Accumulated other comprehensive income (loss) (AOCI): | ||||
Foreign currency translation adjustments | (8,917) | (8,238) | ||
Net unrealized investment gains | 9,171 | 25,260 | ||
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) | ||
Total stockholders’ equity | 1,282,017 | 1,005,112 | ||
Total liabilities and stockholders' equity | $ 1,768,913 | $ 1,138,056 |
Schedule I - Financial Inform_4
Schedule I - Financial Information of the Registrant (Parent Company) - Balance Sheets (Additional Information) (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 51,500,000 | 51,500,000 |
Common stock, shares issued (in shares) | 27,245,591 | 27,080,403 |
Common stock, shares outstanding (in shares) | 26,893,430 | 26,728,242 |
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Parent company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 51,500,000 | 51,500,000 |
Common stock, shares issued (in shares) | 27,245,591 | 27,080,403 |
Common stock, shares outstanding (in shares) | 26,893,430 | 26,728,242 |
Treasury stock, common shares (in shares) | 352,161 | 352,161 |
Schedule I - Financial Inform_5
Schedule I - Financial Information of the Registrant (Parent Company) - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of net income to cash provided by operating activities: | |||
Net income | $ 323,216 | $ 154,905 | $ 78,615 |
Add (deduct): | |||
Depreciation | 36,386 | 19,216 | 22,526 |
(Increase) decrease in receivables – net | (18,822) | (6,598) | (2,917) |
(Increase) decrease in other assets – net | (5,931) | (5,380) | 6,865 |
Increase (decrease) in payables and accrued liabilities – net | (22,316) | 62,738 | 31,471 |
Income from and other adjustments for subsidiaries | (9,488) | (3,504) | (3,044) |
Cash provided by operating activities | 390,291 | 275,806 | 166,359 |
Investing activities: | |||
Cash (used) provided by investing activities | (645,276) | (231,370) | 7,040 |
Financing activities: | |||
Proceeds from notes payable | 1,197,351 | 16,456 | 30,464 |
Payments on notes payable | (809,816) | (25,581) | (27,868) |
Issuance of Common Stock | 0 | 108,961 | 0 |
Dividends paid | (36,637) | (30,226) | (28,345) |
Repurchases of Common Stock | (2,252) | (1,054) | (532) |
Purchase of remaining interest of consolidated subsidiary | (5,616) | 0 | 0 |
Proceeds from stock option and employee stock purchase plan exercises | 2,715 | 0 | 0 |
Payment for debt issuance costs | (7,404) | (311) | 25 |
Cash provided (used) by financing activities | 310,374 | 54,301 | (37,762) |
Increase in cash and cash equivalents | 53,236 | 102,074 | 138,542 |
Cash and cash equivalents at beginning of year | 432,683 | 330,609 | 192,067 |
Cash and cash equivalents at end of year | 485,919 | 432,683 | 330,609 |
Supplemental information: | |||
Income taxes paid, net | 106,101 | 44,756 | 11,992 |
Interest paid | 2,828 | 2,604 | 4,241 |
Parent company | |||
Reconciliation of net income to cash provided by operating activities: | |||
Net income | 323,216 | 154,905 | 78,615 |
Add (deduct): | |||
Depreciation | 0 | 4 | 8 |
(Increase) decrease in receivables – net | (19,261) | (1,998) | (253) |
(Increase) decrease in other assets – net | (1,574) | (529) | 1,659 |
Increase (decrease) in payables and accrued liabilities – net | (297) | 2,978 | 2,698 |
Income from and other adjustments for subsidiaries | (31,841) | (140,816) | (43,240) |
Cash provided by operating activities | 270,243 | 14,544 | 39,487 |
Investing activities: | |||
Collections on notes receivables | 45,193 | 40,000 | 1,416 |
Increases in notes receivables | 0 | (80,000) | 0 |
Investments in and contributions to subsidiaries | (615,147) | (85,470) | 0 |
Cash (used) provided by investing activities | (569,954) | (125,470) | 1,416 |
Financing activities: | |||
Proceeds from notes payable | 1,004,703 | 0 | 0 |
Payments on notes payable | (643,875) | 0 | 0 |
Issuance of Common Stock | 0 | 108,961 | 0 |
Dividends paid | (36,637) | (30,226) | (28,345) |
Repurchases of Common Stock | (2,252) | (1,054) | (532) |
Purchase of remaining interest of consolidated subsidiary | (5,616) | 0 | 0 |
Proceeds from stock option and employee stock purchase plan exercises | 2,715 | 0 | 0 |
Payment for debt issuance costs | (7,404) | 0 | 0 |
Cash provided (used) by financing activities | 311,634 | 77,681 | (28,877) |
Increase in cash and cash equivalents | 11,923 | (33,245) | 12,026 |
Cash and cash equivalents at beginning of year | 3,604 | 36,849 | 24,823 |
Cash and cash equivalents at end of year | 15,527 | 3,604 | 36,849 |
Supplemental information: | |||
Income taxes paid, net | 5 | 180 | 0 |
Interest paid | $ 2,795 | $ 2,490 | $ 4,009 |
Schedule I - Financial Inform_6
Schedule I - Financial Information of the Registrant (Parent Company) - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Merger termination fee | $ 50,000 | ||
Dividends paid by guaranty | $ 293,900 | $ 30,000 | |
Stewart Title Guaranty Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends paid by guaranty | 293,900 | 30,000 | |
US RES Holdco, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends paid by guaranty | 2,000 | ||
Parent company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Merger termination fee | $ 0 | $ 0 | $ 50,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Estimated title losses | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 496,275 | $ 459,053 | $ 461,560 |
Charged to costs and expenses | 126,243 | 115,224 | 84,423 |
Deductions | 72,904 | 78,002 | 86,930 |
Balance At end of period | 549,614 | 496,275 | 459,053 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 6,471 | 4,056 | 3,824 |
Charged to costs and expenses | 398 | 2,532 | 236 |
Deductions | 4,590 | 117 | 4 |
Balance At end of period | 2,279 | 6,471 | 4,056 |
Allowance for uncollectible amounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 4,807 | 4,469 | 4,614 |
Charged to costs and expenses | 3,023 | 649 | 1,672 |
Deductions | 119 | 311 | 1,817 |
Balance At end of period | $ 7,711 | $ 4,807 | $ 4,469 |