Fitch Ratings Publishes Stewart Title Group's IFS Report

April 29, 2002

CHICAGO--(BUSINESS WIRE)--Fitch Ratings has just published a insurer financial strength report on Stewart Title Guaranty Company and its wholly owned subsidiary Stewart Title Insurance Company (collectively referred to as Stewart) affirming the 'A+' insurer financial strength ratings.

The ratings reflect Stewart's strong capital position as measured by Fitch's risk adjusted capital (RAC) ratio, high quality and very liquid investment portfolio, minimal debt leverage, and conservative reserving practices. Additionally, the ratings take into account the company's low operating leverage, reasonable agency monitoring and auditing controls, and good market positioning as a national title insurer.

The ratings also consider that the company's profitability has not met Fitch's expectations. The company's historical position as a leader in technology was anticipated to translate into enhanced profitability over time. To date, Fitch has not seen these technology related financial benefits. Fitch has noted the company's profitability in 2001 will likely be the best in Stewart's history, though Fitch believes the primary driver is favorable market conditions. For the current ratings, Fitch expects profitability to be among the best in the industry, and will continue to monitor Stewart's operating results to assess the company's ability to meet these expectations.

Entity/Issue/Type Action Rating/Outlook
Stewart Title Guaranty Company -- Insurer financial strength  Affirmed  'A+'/Stable.
Stewart Title Insurance Company -- Insurer financial strength Affirmed  'A+'/Stable.

Source: Fitch Ratings

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