Stewart Information Services Reports Significant Financial Growth for Fiscal Year 2024

Stewart Information Services Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024. The company achieved a net income of $73.3 million, or $2.61 per diluted share, compared to $30.4 million, or $1.11 per diluted share, in 2023. Total operating revenues rose by 10% to $2.42 billion, up from $2.21 billion in the previous year, while total expenses increased by 8% to $2.38 billion. The pretax income before noncontrolling interests also saw a notable rise, reaching $114.3 million with a pretax margin of 4.6%, compared to $60.9 million and a margin of 2.7% in 2023.

The title insurance segment, which is a core part of Stewart's operations, reported operating revenues of $2.13 billion, an increase from $1.99 billion in 2023. This growth was driven by higher revenues from both direct and agency title operations. The real estate solutions segment also performed well, with revenues increasing by 42% to $87 million, primarily due to enhanced credit information and valuation management services. The company’s total employee count rose to approximately 7,000, reflecting a strategic focus on expanding its workforce to support growth initiatives.

Stewart's operational metrics indicated a mixed performance in transaction volumes. The total number of closed orders increased by 4% to 228,752, while the number of purchase transactions decreased by 8%. The company reported a 50% increase in domestic commercial revenues, attributed to a higher average transaction size and a 13% increase in commercial transactions. However, the overall decline in residential purchase transactions was influenced by elevated mortgage interest rates and low housing inventory.

In terms of strategic developments, Stewart continued to focus on enhancing its technology and service offerings. The company made investments in automation and integration of its systems to improve operational efficiency. Additionally, Stewart's investment portfolio remained robust, with approximately 88% of its combined debt and equity securities consisting of fixed-income securities, primarily rated A or higher. The company anticipates that the ongoing economic environment, including mortgage interest rates and real estate activity, will continue to influence its performance in the upcoming fiscal year.

Looking ahead, Stewart expects total mortgage originations to increase by 18% in 2025 compared to 2024, driven by anticipated improvements in refinancing and purchase transactions. The company remains committed to leveraging its market position and operational capabilities to navigate the evolving landscape of the real estate and title insurance industries.