...Title Insurers Strongly Capitalized: Fitch Ratings views the U.S. title insurance industry as strongly capitalized with a risk-adjusted capital (RAC) score of 168% in 2013 compared with 166% in 2012 for its rated universe. The industry RAC score is calculated on a weighted average basis. As such, Fidelity National Financial, Inc. (Fidelity) and First American Financial Corp (First American), whose combined market share is 60%, greatly influence results. Leverage Remains Low: Fitch also measures capital on a nonrisk-adjusted basis by evaluating operating leverage (defined as title written premiums to surplus) and net leverage (defined as title written premiums and liabilities to surplus). Under both measurers, the industry is strongly capitalized at 2.9x and 4.1x, respectively at year-end 2013. Reserve Redundancy Boosts RAC Scores: All four rated title insurers benefited from a statutory loss reserve redundancy for the second consecutive year in 2013. Fitch's reserve analysis estimates that...
