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2020 Title Insurance Financial Survey/Overview

For reference, here is an updated schedule of suggested "Maximum Risk" amounts for the largest title insurance companies in the United States, as well as a number of their smaller affiliates and independent title insurance companies active in particular states or regions. The schedule is based on the insurers' financial reports to State regulatory agencies for the year ending December 31, 2019. The suggested "Maximum Risk" is just that, a suggestion as to the most title insurance risk a particular insurance company should be allowed to retain on a given project or financing. In most instances, the title insurance companies can legally accept more risk (and would be happy to do so) and this schedule is intended as a guideline for when it may be appropriate in larger transactions to diversify the title insurance risk (by requiring coinsurance and/or reinsurance) based on the financial size of the companies involved. The schedule indicates which insurers are affiliated companies, identifying the parent company under the heading "Corporate Group" where applicable. Particularly in larger transactions, real estate investors and lenders may prefer to treat one "Corporate Group" as a single insurer and require that risk be shared with unaffiliated companies through reinsurance and/or or co-insurance.

The suggested "Maximum Risk" herein is simply one-third of a company's reported "Surplus as Regards Policyholders" and reflects a rule of thumb used by certain financial institutions in the past. The underlying data from which the figures herein were derived is from the December 31, 2019 financial statements filed with state regulators by the title insurance companies listed or their affiliates (copies furnished by the insurers). Schiff Hardin LLP makes no representation or warranty regarding the accuracy of that data or the relative merits of using the calculation of "Maximum Risk" contained herein versus other indicia of the relative financial characteristics of title insurance companies. The financial condition of the companies listed may have changed since the date of those financial statements, and persons concerned as to the current condition of any company should contact that company, state insurance regulators, and/or independent rating agencies that may evaluate their financial condition (rating agencies which cover title insurers include Demotech, Inc., A.M. Best Company, Inc., Fitch Ratings Ltd., Moody's Investors Services and Standard & Poor's, Inc.). Schiff Hardin LLP expressly disclaims any obligation to update this information for any reason. Schiff Hardin LLP does not provide financial advice and has compiled the information contained herein solely as a courtesy to its clients and other interested parties.

If you have questions regarding use of the suggested Maximum Risk schedule or other considerations in developing requirements for title coinsurance and/or reinsurance to diversify title insurance risk in transactions in which you are involved, please contact any of the undersigned.


TITLE INSURANCE COMPANIES

Maximum Single Risk Amounts*

Company

Corporate Group

Maximum Risk $

Alamo Title Insurance (TX) (NAIC #50598)

Fidelity National

$  7,200,000

American Guaranty Title Insurance Company (OK) (NAIC #51411)

Old Republic

11,000,000

Attorney's Title Guaranty Fund, Inc. (CO) (NAIC #51560)

N/A

1,400,000

Attorney's Title Guaranty Fund, Inc. (IL) (NAIC #50004)

N/A

18,100,000

Chicago Title Insurance Company (FL) (NAIC #50229)[1]

Fidelity National

336,400,000

Commonwealth Land Title Insurance Company (NE) (NAIC #50083)

Fidelity National

129,800,000

Conestoga Title Insurance Co. (PA) (NAIC #51209)

N/A

3,700,000

Connecticut Attorneys Title Insurance Company (VT) (NAIC #51268)

N/A

9,600,000

Fidelity National Title Insurance Company (FL) (NAIC #51586)[2] [3]

Fidelity National

183,300,000

First American Title Insurance Company (NE) (NAIC #50814)[4]

First American

504,900,000

First American Title Insurance Company of Louisiana (LA) (NAIC #51527)

First American

7,200,000

First National Title Insurance Company (TX) (NAIC #14240)

N/A

8,200,000

TITLE INSURANCE COMPANIES

Suggested Maximum Single Risk Amounts

(continued)

Company

Corporate Group

Maximum Risk $

First American Title Guaranty Company (TX) (f/k/a United General Title Insurance Company (CA)) (NAIC #51624)

First American

12,400,000

Investors Title Insurance Company (NC) (NAIC #50369)

Investors

35,000,000

National Investors Title Insurance Company (TX) (NAIC #50377)

Investors

4,800,000

National Title Insurance Company of New York Inc. (NY) (NAIC #51020)

Fidelity

14,400,000

North American Title Insurance Company (CA) (NAC #50130)

States Title Holding

11,100,000

Ohio Bar Title Insurance Company (OH) (NAIC #51330)

First American

5,900,000

Old Republic National Title Insurance Company (MN) (NAIC #50520)[5]

Old Republic

188,500,000

Real Advantage Title Insurance Company (CA) (NAIC #50440)

N/A

3,000,000

States Title Insurance Company (AZ) (NAIC #16137)

States Title Holding

1,100,000

States Title Insurance Company of California (CA) (NAIC #16398)

States Title Holding

1,000,000

Stewart Title Guaranty Company (TX) (NAIC #50121) [6]

Stewart

206,000,000

Stewart Title Insurance Company (NY) (NAIC #51420) [7]

Stewart

21,600,000

Westcor Land Title Insurance Company (CA) (NAIC #50050)

N/A

24,700,000

WFG National Title Insurance Company (SC) (NAIC #51152)

WFG

14,400,000


* The suggested "Maximum Risk" amount is one-third of each company's "Surplus as Regards Policy Holders" from the financial statements for the year ending December 31, 2019 which each insurer is required to file with the insurance regulators of the States where they do business, as provided by the companies. The suggested "Maximum Risk" amounts are rounded to the nearest increment of $100,000. Although many insurance companies are publicly traded corporations or subsidiaries of a publicly traded corporation, the state filings allow for comparison of the insurance companies themselves under generally consistent accounting methods. As with any large corporation, the financial statements of title insurance companies contain extensive and detailed information regarding the company's finances and there are any number of methods of evaluating a company's financial strength.

[1] In 2018 Fidelity National Financial, Inc., the parent company of the Fidelity National family insurance companies noted on this list, announced that it had signed an agreement to acquire Stewart Information Services Corporation, the parent company of the Stewart family title insurance companies noted on this list. In September of 2019, the Federal Trade Commission issued an administrative complaint seeking to block the merger, following which, on September 10, 2019 Fidelity National and Stewart terminated their merger agreement and no longer plan to merge.

[2] Re-Domesticated to Florida from California in 2017

[3] In 2018 Fidelity National Financial, Inc., the parent company of the Fidelity National family insurance companies noted on this list, announced that it had signed an agreement to acquire Stewart Information Services Corporation, the parent company of the Stewart family title insurance companies noted on this list. In September of 2019, the Federal Trade Commission issued an administrative complaint seeking to block the merger, following which, on September 10, 2019 Fidelity National and Stewart terminated their merger agreement and no longer plan to merge.

[4] First American Title Insurance Company was previously domiciled in California but redomesticated to Nebraska effective July 1, 2014

[5] Old Republic National Title Insurance Company was previously domiciled in Minnesota but redomesticated to Florida on November 25, 2014

[6] In 2018 Fidelity National Financial, Inc., the parent company of the Fidelity National family insurance companies noted on this list, announced that it had signed an agreement to acquire Stewart Information Services Corporation, the parent company of the Stewart family title insurance companies noted on this list. In September of 2019, the Federal Trade Commission issued an administrative complaint seeking to block the merger, following which, on September 10, 2019 Fidelity National and Stewart terminated their merger agreement and no longer plan to merge.

[7] In 2018 Fidelity National Financial, Inc., the parent company of the Fidelity National family insurance companies noted on this list, announced that it had signed an agreement to acquire Stewart Information Services Corporation, the parent company of the Stewart family title insurance companies noted on this list. In September of 2019, the Federal Trade Commission issued an administrative complaint seeking to block the merger, following which, on September 10, 2019 Fidelity National and Stewart terminated their merger agreement and no longer plan to merge.

© 2020 Schiff Hardin LLPNational Law Review, Volume X, Number 150

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About this Author

Paul G. Mackey Commercial Real Estate & Finance Attorney Schiff Hardin Law Firm
Partner

Paul G. Mackey represents banks and other financial institutions in a broad range of commercial real estate transactions. He has experience handling debt and equity financings of office buildings, shopping centers, residential apartment buildings, hotels and industrial properties throughout the United States. He also represents clients in buying, selling and leasing substantial commercial properties.

Paul offers his clients cost-effective counsel with leanly staffed teams and efficient legal workmanship. He negotiates and drafts documents in...

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