Fitch: U.S. Title Insurance Industry Capital Position to Improve Modestly in 2012

May 29, 2012

Fitch Ratings' 2011 U.S. title industry's risk-adjusted capital (RAC) ratio for year-end 2011 was flat at 144 percent compared to 143 percent in 2010 and remains below its 15-year average of 167 percent, according to a report published by Fitch.

However, Fitch estimates a relatively modest improvement in the industry's capital position in 2012, as measured by the RAC ratio.

"Fitch anticipates that several catalysts for growth including reduced housing inventory, historical low interest rates and government programs such as the Home Affordable Refinance Program (HARP 2.0) could increase mortgage originations and ultimately industry surplus," said Gerry Glombicki, director at Fitch Ratings and title insurance sector head.

Fitch calculates the industry RAC on a weighted-average basis, thus Fidelity National Financial, Inc. and First American Financial Corp.—with a combined market share of 62 percent—have a strong influence on the industry ratio. Fitch views the industry as adequately capitalized, although results vary considerably among individual companies.

The full report, “Title Insurers 2011 Risk-Adjusted Capital Adequacy,” is available at Analysis of company-specific variances in capital adequacy is also included in the report.

Contact ALTA at 202-296-3671 or

SoftPro is the nation's leading provider of real estate closing and title insurance software. With more than 14,000 customer sites and over 60,000 users nationwide, this award-winning software offers a suite of products designed to increase your volume and revenue by reducing the time it takes to do closings. SoftPro has been recognized by the American Business Awards every year since 2007 - winning awards for Superior Customer Service, Support and Product Development. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.