Land Title Industry Remains Strong in First Quarter 2005
|June 20, 2005|
Lorri Lee Ragan, APR
Washington, DC– The American Land Title Association (ALTA), released figures today which reveal a strong financial picture for the title insurance industry from the first quarter of 2005.
“Total revenue for the first quarter of 2005 was relatively flat when compared to the record year of 2004,” said ALTA director of research, Richard McCarthy. “Revenue figures for first quarter 2005 and 2004 were $3.7 billion and $3.688 billion respectively – an increase of .33% year-to-year.”
Losses and loss adjustment expenses increased by 35.4 percent to $201.5 million in the first quarter of 2005 as compared to 2004’s figure of $148.8 million. After the rise in business during 2002, 2003, and 2004, claims were expected to eventually catch up. The industry loss ratio rose from 4.03 percent to 5.45 percent.
The level of pre-tax profit (before investment income) was $71.2 million in 2005 as compared to $142.3 million during the same period in 2004 – a fall of 50 percent. On an after-tax, after investment income basis, industry profits totaled $111.6 million down from 2004’s figure of $123 million.