AM Best Affirms Credit Ratings of Stewart Title Group Members
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" (Excellent) for the member companies of Stewart Title Group. The Long-Term ICR of "bbb-" (Good) for the parent holding company, Stewart Information Services [NYSE: STC], has also been affirmed. The outlook for these ratings is stable.
The ratings reflect Stewart's very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. Despite challenges from high interest rates and a slowing economy, Stewart's underwriting and operating results are expected to remain in line with industry averages. The company benefits from very strong risk-adjusted capitalization and its position as the fourth-largest title insurance writer in the United States.
AM Best ha confermato il Rating di Solidità Finanziaria (FSR) di A- (Eccellente) e il Rating di Credito a Lungo Termine (Long-Term ICR) di "a-" (Eccellente) per le aziende del gruppo Stewart Title. È stato confermato anche il Long-Term ICR di "bbb-" (Buono) per la società madre, Stewart Information Services [NYSE: STC]. L'outlook per questi rating è stabile.
I rating riflettono la molto forte solidità patrimoniale di Stewart, le prestazioni operative adeguate, il profilo aziendale neutro e una gestione del rischio d'impresa appropriata. Nonostante le sfide derivanti da alti tassi di interesse e un'economia in rallentamento, si prevede che i risultati di sottoscrizione e operativi di Stewart rimarranno in linea con le medie del settore. L'azienda beneficia di una molto forte capitalizzazione corretta per il rischio e della sua posizione come quarto maggior scrittore di assicurazioni titolo negli Stati Uniti.
AM Best ha confirmado la Calificación de Solidez Financiera (FSR) de A- (Excelente) y la Calificación de Crédito a Largo Plazo (Long-Term ICR) de "a-" (Excelente) para las empresas miembros del Grupo Stewart Title. También se ha confirmado el Long-Term ICR de "bbb-" (Bueno) para la empresa matriz, Stewart Information Services [NYSE: STC]. Las perspectivas para estas calificaciones son estables.
Las calificaciones reflejan la muy fuerte solidez de balance de Stewart, un desempeño operativo adecuado, un perfil empresarial neutro y una gestión adecuada del riesgo empresarial. A pesar de los desafíos por las altas tasas de interés y una economía en desaceleración, se espera que los resultados de underwriting y operativos de Stewart se mantengan en línea con los promedios de la industria. La empresa se beneficia de una muy fuerte capitalización ajustada al riesgo y de su posición como cuarto mayor emisor de seguros de títulos en los Estados Unidos.
AM 베스트는 A- (우수)의 재무 건전성 등급 (FSR)과 “a-” (우수)의 장기 발행자 신용 등급 (Long-Term ICR)을 스튜어트 타이틀 그룹의 회원사에 대해 확인했습니다. 모회사인 Stewart Information Services [NYSE: STC]에 대해서도 “bbb-” (양호)의 Long-Term ICR이 확인되었습니다. 이러한 등급의 전망은 안정적입니다.
이 등급은 스튜어트의 매우 강력한 재무 건전성, 적절한 운영 성과, 중립적인 사업 프로필 및 적절한 기업 위험 관리 반영합니다. 높은 이자율과 둔화된 경제로 인한 도전에도 불구하고 스튜어트의 인수 및 운영 결과는 업계 평균과 일치할 것으로 예상됩니다. 이 회사는 매우 강력한 위험 조정 자본과 미국에서 네 번째로 큰 타이틀 보험 발행사라는 위반점을 가지고 있습니다.
AM Best a confirmé la notation de solidité financière (FSR) de A- (Excellente) et la notation de crédit à long terme (Long-Term ICR) de "a-" (Excellente) pour les sociétés membres du Stewart Title Group. La Long-Term ICR de "bbb-" (Bonne) pour la société mère, Stewart Information Services [NYSE: STC], a également été confirmée. Les perspectives pour ces notations sont stables.
Les notations reflètent la très forte solidité bilantaire de Stewart, des performances opérationnelles adéquates, un profil commercial neutre et une gestion des risques d'entreprise appropriée. Malgré les défis posés par de hauts taux d'intérêt et un ralentissement économique, les résultats de souscription et d'exploitation de Stewart devraient rester en ligne avec les moyennes du secteur. L'entreprise bénéficie d'une très forte capitalisation ajustée au risque et de sa position en tant que quatrième plus grand assureur de titres aux États-Unis.
AM Best hat die finanzielle Stärke Bewertung (FSR) von A- (Ausgezeichnet) und die Langfristigen Emittenten Kreditratings (Langfristige ICR) von "a-" (Ausgezeichnet) für die Mitglieder des Stewart Title Group bestätigt. Auch das Langfristige ICR von "bbb-" (Gut) für die Muttergesellschaft, Stewart Information Services [NYSE: STC], wurde bestätigt. Der Ausblick für diese Ratings ist stabil.
Die Ratings spiegeln die sehr starke Bilanzkraft von Stewart, angemessene Betriebsleistung, neutrales Geschäftsprofil und angemessenes Risikomanagement wider. Trotz der Herausforderungen durch hohe Zinssätze und eine verlangsamte Wirtschaft wird erwartet, dass die Ergebnisse der Zeichnung und der Betriebe von Stewart im Einklang mit den Branchenbenchmarks bleiben. Das Unternehmen profitiert von einer sehr starken risikoadjustierten Kapitalisierung und seiner Position als viertgrößter Titelversicherer in den Vereinigten Staaten.
- Affirmed Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of "a-" (Excellent)
- Very strong balance sheet strength and risk-adjusted capitalization
- Consistently profitable underwriting and investment results
- Fourth-largest title insurance writer in the United States
- Global diversification mitigating concentration risk
- High interest rates and slowing economy dampening production and premium volume
- Potential for significant decline in operating profitability due to economic conditions
- Risk of material decline in risk-adjusted capitalization levels
- Potential liquidity issues or significant increase in leverage at holding company level
Insights
AM Best's affirmation of Stewart Title Group's A- (Excellent) Financial Strength Rating and "a-" Long-Term Issuer Credit Ratings is a positive signal for investors. The stable outlook indicates confidence in the company's financial stability despite challenging market conditions.
Key positives include:
- Very strong balance sheet strength
- Adequate operating performance
- Strong risk-adjusted capitalization
- Consistent profitability in underwriting and investments
- Fourth-largest title insurance writer in the U.S.
However, investors should note potential headwinds:
- High interest rates and economic slowdown impacting production and premium volume
- Concentration risk as a monoline title insurance writer
Overall, Stewart's strong market position and financial stability provide a solid foundation, but future performance will depend on navigating the current economic challenges in the real estate sector.
The ratings reflect Stewart’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
High interest rates, a slowing economy and a slowdown in the real estate sector have dampened Stewart’s production and premium volume. Despite these headwinds, Stewart’s underwriting and operating results are expected to remain in line with industry averages. Stewart’s ratings consider the group’s very strong levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its consistently profitable underwriting and investment results. In addition, Stewart benefits from its market position as the fourth-largest title insurance writer in
Negative rating action could occur if high interest rates and a slowing economy lead to a significant decline in operating profitability or a material decline in risk-adjusted capitalization levels. Negative rating action also might result should the holding company experience liquidity issues or a significant increase in leverage.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with stable outlooks for the following members of the Stewart Title Group:
- Stewart Title Guaranty Company
- Stewart Title Insurance Company
- Stewart Title Limited
-
Stewart Title Guaranty de
Mexico , S.A. de C.V.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Edward Zonenberg
Senior Financial Analyst
+1 908 882 2447
edward.zonenberg@ambest.com
Fred Eslami
Associate Director
+1 908 882 1759
fred.eslami@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
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