...The title insurance industry s risk-adjusted ca pital (RAC) ratio fell significantly in ####. Fitch s title insurance industry RAC ratio for #### was ###%, a ##-percentage-point decrease from ####. Dispropo rtionately large declines in the RAC ratios of First American Financial (First American) and LandAmerica Financial Group (LandAmerica), which account for approximately one-half of the industry s revenue, weighed heavily on the industry s RAC ratio. The RAC ratio decline is tied to the sharp reduction in operating performance for the market in ####, related to deteriorating revenue as property and mortgage market activity declined and growth in claims losses from current and prior underwriting periods. These factors overwhelmed any expense reduction efforts taken during the year. Four of the five national title insu rers reported operating losses from title insurance business in ####. These losses promoted a ##% drop in policyho lders surplus in ####. At the same time,...

Report Type: Special Report
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