American Land Title Association Reports 3Q Title Insurance Premiums

WASHINGTON--(BUSINESS WIRE)--The American Land Title Association reported title insurance premiums written during the third quarter of 2009 increased for the first time in more than three years when compared to equivalent prior year quarters.

“While well short of a recovery, we are getting a clear signal that market conditions are beginning to improve”

According to ALTA’s preliminary Third-Quarter Market Share Report, the title insurance industry generated $2.51 billion in premiums during the quarter. This is a 1.4 percent increase compared to the $2.48 billion generated during the third quarter of 2008. The industry had endured 13 consecutive quarters in which title premiums written declined from the prior year’s equivalent quarter.

“While well short of a recovery, we are getting a clear signal that market conditions are beginning to improve,” said Kurt Pfotenhauer, chief executive officer of ALTA. “Congress’ temporary tax incentives and the Federal Reserve’s efforts to keep mortgage interest rates low have brought more homebuyers to the table. We are hopeful that the extension and expansion of the homebuyer tax credit will keep this momentum going through 2010 and begin to drive activity beyond the first-time buyer market.”

During the third quarter, 32 states experienced increases in title insurance premiums, compared to the same period last year. In the quarter, California generated the most title insurance premiums with $396.3 million, compared to $349.6 million during the third quarter of 2008. Other top producing states include Texas ($270.7 million, down 9.9 percent from the same period a year ago); Florida ($178.5 million, down 16 percent); New York ($148.7 million, down 26.1 percent); and Pennsylvania ($112.7 million, up 5.1 percent).

States in several regions of the country experienced significant increases in title insurance premiums. Alaska enjoyed a 77 percent spike as premiums improved to $11.6 million during the third quarter of this year, compared to $6.6 million during the same quarter last year. On the East Coast, Rhode Island and New Jersey each experienced large increases. New Jersey’s title insurance premiums improved 36 percent to $90 million during the third quarter of 2009 compared to last year’s third quarter, while Rhode Island experienced a 57 percent increase to $8.5 million. In the Great Plains, Colorado’s title insurance premiums increased 40 percent to $54 million from third-quarter 2008 to third-quarter 2009, while North Dakota improved 31 percent to $2.5 million.

“The scattered improvements illustrate real estate is still local. Each market performs differently depending on local economic conditions,” Pfotenhauer said. “The cyclicality of the industry is something legislators and regulators must keep in mind when considering changes to the title insurance industry, including new regulations, laws and rate structures.”

About ALTA

The American Land Title Association, founded in 1907, is a national trade association representing more than 3,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. With more than 8,000 offices throughout the United States, ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles. ALTA member companies employ well over 100,000 individuals and operate in every county in the U.S., and several countries around the world.