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Navigating the Evolving Real Estate Landscape: Insights from Title Insurance Leaders

Stewart's Impressive Financial Surge in Q2 2025

Stewart, the smallest among the top four title insurance providers, showcased remarkable financial strength in the second quarter of 2025. The company's revenue escalated significantly, climbing from $602.2 million in Q2 2024 to $722.2 million in the current year. This growth was paralleled by a substantial increase in net income, which rose from $17.3 million to $31.9 million. The title segment was a key driver, with revenue expanding by 19% annually to $592.5 million and pretax income soaring by 48% year-over-year to $49.3 million. This success was partly fueled by a 25% annual increase in the average domestic commercial fee per file, reaching $16,900. Despite a slight annual dip in the average domestic residential fee per file to $2,900—attributed to a higher mix of refinancing and real estate investor orders—Stewart's overall performance remained robust. A minor uptick in title loss expenses to $21.5 million was mitigated by a reduction in loss expenses as a percentage of title operating revenue, from 4.2% in Q2 2024 to 3.6%.

First American's Strong Q2 Growth and Net Income Boost

First American Financial also experienced a robust second quarter, with total revenue increasing by 14% annually to $1.8 billion. The company's net income saw a significant leap, rising to $195.2 million from $151.6 million a year prior. Within its title segment, revenue climbed to $1.7229 billion from $1.5219 billion, while pretax income for the segment also improved, reaching $216.7 million in Q2 2025 compared to $177.4 million in Q2 2024. This growth was partly due to an increase in the average fee per file to $4,112, driven by higher average revenue per order for commercial transactions, despite a shift towards lower-premium refinance transactions.

Fidelity's Mixed Financial Outcomes Amidst Revenue Gains

Fidelity National Financial reported an increase in total revenue, rising from $3.158 billion in Q2 2024 to $3.635 billion in Q2 2025. However, net earnings experienced a decline, falling from $306 million to $278 million, a decrease the company attributed to higher expenses and a $12 million increase in health claims. Despite this, the firm's title segment demonstrated strong performance, with revenue growing from $1.9 billion to $2.2 billion and pretax title segment earnings reaching $367 million, up from $235 million a year earlier. This growth was supported by a 12% annual rise in direct title premiums to $632 million, a 7% increase in agency title premiums to $839 million, and a 22% surge in commercial revenue to $333 million. Additionally, the total fee per file saw a 4% annual increase, reaching $3,894.

Old Republic's Challenging Quarter for Title Operations

Despite Old Republic's overall strong financial results in Q2 2025, with revenue climbing to $2.2085 billion from $1.8717 billion and net income more than doubling to $204.4 million, its title segment faced difficulties. The title segment recorded only a 5.2% increase in net premiums and fees generated, totaling $697.8 million, and a significant 47.2% year-over-year decrease in pretax income, which stood at $24.4 million. The company attributed these weaker title segment results to a rising loss ratio, less favorable prior year loss reserve development compared to 2024, expenses from litigation settlements, and higher agent commissions due to a shift in business between direct and agency operations.

Analyzing Business Activity and Order Volume in the Second Quarter

While not all leading title insurance firms provided detailed open order statistics, most offered insights into their Q2 2025 business activity. Stewart's executives noted a 6% annual increase in non-commercial domestic direct title revenue, reaching $179.6 million, with the largest annual increase observed in commercial domestic direct title revenue, which jumped 46% to $74.6 million. CEO Fred Eppinger expressed satisfaction with the results, highlighting the firm's ability to significantly grow revenue and earnings despite a challenging housing market. First American reported a nearly 10,000 increase in title orders opened year-over-year, reaching 179,500 orders. Refinance revenue also rose by 54% annually, although it accounted for a small portion (5%) of the company's direct revenue. Fidelity also saw an increase in open orders, with national daily orders up 11% annually to 5,800. Refinance orders specifically increased by 28% year-over-year to 1,300 per day. Fidelity CEO Mike Nolan expressed optimism for a rebound in transaction volumes and a commitment to long-term investment, aiming for increased efficiency and profitability while maintaining strong free cash flows.

Navigating the Shifting Sands of Regulatory Oversight

Regulatory discussions were a central theme during the earnings calls, with executives from Stewart, First American, and Fidelity addressing the Federal Housing Finance Agency's (FHFA) title waiver pilot program. Stewart's CEO noted a minimal impact on his firm and expressed positivity regarding recent program announcements, suggesting a refinement towards an option that includes a title policy, possibly with different coverages. First American's CEO stated his firm is closely monitoring the pilot and has been in communication with FHFA, Fannie, and Freddie, emphasizing their readiness with unique assets should the market shift. Fidelity's executives are also observing the situation, with their CEO engaging in discussions with the FHFA while reaffirming their stance against the waiver concept but maintaining a collaborative approach. Old Republic's executives did not comment on the title waiver but addressed Texas's proposed title insurance cost reductions, which are currently facing legal challenges. They emphasized ongoing efforts to ensure adequate rates across all states, collaborating with state title associations.

Strategic Focus: Acquisitions and Technological Advancements

Beyond financial results and regulatory concerns, Stewart and Old Republic highlighted other key strategic initiatives. Stewart's CEO indicated that acquisitions would be a significant growth driver, with the company maintaining an active pipeline of potential targets. This signals a proactive approach to expanding market presence. Old Republic is prioritizing the advancement of digital transaction tools and solutions. The company's title CEO and President, Carolyn Monroe, stressed the importance of providing agents and employees with innovative technological solutions for competitive advantage, including seamless integration of internal systems with closing and production platforms. Furthermore, Old Republic is actively exploring numerous AI projects to enhance efficiency and decision-making, building on data and analytics supported by modern IT infrastructure. This dual focus on strategic acquisitions and technological innovation underscores a forward-looking approach to sustained growth and operational excellence in the title insurance industry.