The fast real estate market cool off and the fast speed at which the Federal Reserve treked rate of interest took their toll on the title insurance coverage market in 2022. In 2015, the market produced $21 billion in title insurance coverage premiums, down 16% from 2020, according to the American Land Title Association’s Market Share Analysis launched Monday.
Throughout the 4th quarter of the year, the title insurance coverage market produced $4.4 billion in title insurance coverage premiums, down 38% year over year.
Compared to a year ago, the overall operating earnings for the market was down 37.1%, and operating costs dropped 34.88% in the very same period. The market paid $569.1 million in claims in 2022, up from the $474.4 million paid a year prior.
” Title experts throughout the nation continue to browse their services through this tough and unstable realty cycle, committed to serving their consumers, safeguarding residential or commercial property rights and supporting their neighborhoods regardless of the unpredictability of the market,” Diane Burial Place, the CEO of ALTA, stated in a declaration.
The 5 states with the biggest title premium volumes in 2022 were Texas ($ 3.39 billion), Florida ($ 2.69 billion), California ($ 1.89 billion), New york city ($ 1.36 billion), and Pennsylvania ($ 898 million). The very same 5 states held the leading areas in 2022.
All 5 states taped year-over-year reductions in title premiums in 2022, with California tape-recording the biggest annual drop at 33.1%, and Texas tape-recording the tiniest yearly drop at 3.9%.
Leading underwriters for the quarter by market share consisted of Very first American Title insurance coverage Co. with 22.1%; Old Republic National Title Insurance Coverage Co. with 15.8%; Fidelity National Title Insurance Coverage with 13.7%; Chicago Title Insurance Coverage Co. with 13.3%; and Stewart Title Warranty Co. with 8.9%.
Nevertheless, it must be kept in mind that Chicago Title belongs to Fidelity. With 27% of the marketplace, it was once again the biggest business by share of premiums composed in 2022.
Throughout the 3rd quarter of the year, Very first American’s market share was 22.6%, while Old Republic’s was 16.3% and Stewart’s was 8.7%. Stewart has actually been aiming to recover a few of the title premium it lost recently. As just recently as 2019, the company’s market share was 10.62%.
Completing the leading 10 for 2022 were Westcor Land Title Insurance Coverage Co. with 4.4% of the marketplace, putting it in 6th location. Commonwealth Land Title Insurance Coverage Co. had 3.4%, Title Resources Warranty Co. had 2.5%, WFG National Title Insurance Coverage Co. had 2.5% of the marketplace share, and Doma Title had 1.8%. This marks Doma’s go back to the top-10 after being bumped out by First National Title Insurance Coverage Co. in Q3 2022
Although the “Big 4” still command the frustrating bulk of the marketplace, with a combined market share of 73.8%, their cumulative grip is not what it when was. In 2019, independent title underwriters such as Westcor, WFG, and others had a combined market share simply shy of 15%, which increased to 26.2% in 2022.