Land Title Industry Strong in First Quarter 2003
|July 15, 2003|
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 2003 – the busiest quarter in history.
According to ALTA director of research, Rich McCarthy, “The effect of near record low mortgage rates continues to be felt in the real estate industry. New sales, existing sales and refinancings are all at, or near, record levels.”
First Quarter 2003 gross revenue (total operating income) for the industry is up 28.9 percent over 2002 (itself a record year) at $3.4 billion, and the loss ratio (losses as a percentage of total operating income) is 3.5 percent as compared to 4.6 percent for the first three months of last year. The level of pre-tax profit (before investment income) was $188.4 million in 2003 as compared to $50.8 million during the same period in 2002. Again this reflects the strength of the market, coupled with costs increasing less than revenue. On an after-tax, after investment income basis, industry profits totaled $185.9 million up from 2002’s figure of $88 million.