Stewart Information Services Corporation ( STC Quick Quote STC - Free Report) first-quarter 2021 adjusted earnings of $1.92 per share increased more than three-fold year over year.
Shares gained 0.2% in the last trading session, reflecting the solid performance,
Results benefited from continued strong trends in residential real estate transaction activity as well as robust growth in international and newly-acquired ancillary services businesses. The quarterly performance reflects the company’s sustained focus on targeted growth and broader technology and services offerings. Behind the Headlines
Operating revenues of $689 million increased 56.6% year over year on the back of higher revenues from direct operations, agency operations and ancillary services.
Net investment income, however, decreased 24.4% to $3.9 million. Total expense of $614.9 million increased 42.7% year over year due to increase in amounts retained by agencies, employee costs, other operating expenses and title losses and related claims. Opened orders totaled 0.2 million, up 28.7% year over year. Closed orders totaled 0.1 million, up 66.4% year over year Segment Results Title: Operating revenues increased 42% year over year to $625.4 million. The upside was driven by increases in direct title revenues and gross independent agency revenues. Pretax margin of 12.2% expanded 880 bps year over year. Ancillary Services and Corporate: Operating revenues increased more than ten fold year over year to $55.9 million, driven by acquisitions. Pretax loss narrowed to $3.1 million from $5.6 million incurred in the year-ago quarter. Financial Update
Stewart Information exited the quarter with cash and cash equivalents of $412.7 million, down 4.6% from 2020 end. Notes and contracts payable were $125.6 million, up 23.4%.
Stockholders’ equity was $1 billion, up 3.5% from 2020 end. Cash flow from operations was $47.4 million versus $11.4 million used in the year-ago quarter. Zacks Rank
Stewart Information currently sports a Zacks Rank #1 (Strong Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here Performance of Other Insurers
Of the insurance industry players that have reported first-quarter results so far,
The Travelers Companies ( TRV Quick Quote TRV - Free Report) , W.R. Berkley Corporation ( WRB Quick Quote WRB - Free Report) and RLI Corporation ( RLI Quick Quote RLI - Free Report) beat the Zacks Consensus Estimate for earnings. Bitcoin, Like the Internet Itself, Could Change Everything
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