INDUSTRY ECONOMIC OVERVIEW 1999

The big news once again was that of further consolidation within the industry, with the merger of the Chicago Title Family of Underwriters into the Fidelity National Family. The eight (now seven) families' policyholder surplus accounted for 84. 1 % of the industry aggregate. Policyholder surplus before consolidation eliminations increased by $157 million in 1999 versus an increase of $345 million for the previous year.

1999 industry operating expenses totaled 81.7% of net operating revenue. In 1998 these expenses accounted for 79.2% of net operating revenue.

Industry wide incurred title losses consumed 12.3% of net operating revenue in 1999, an increase of 1.3% from 1998.

Agents accounted for 86.3% of premiums written; the average retention percentage was 81.9%.

Industry loss funding data also indicates that the loss ratio of direct operations is the highest; non-affiliated agencies is the next highest and affiliated agencies the lowest.

A much more detailed analysis of the title insurance industry's economic profile may be obtained from the 2000 Edition of CDS Performance of Title Insurance Companies. For copies contact Lawrence E. Kirwin at Corporate Development Services. E-mail lekirwin@aol.com or visit his website at:  http://www.CDSwebcentral.com

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William C. Hart
Title Law Associates™
Phone: 215·379·3195
Fax : 215·379·2214
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