Title insurers report improved profits, volume in 2Q

All five of the publicly traded title insurance underwriters recorded higher net income year-over-year, or in Old Republic’s case, higher pretax operating income.

But the reaction to those results by Keefe, Bruyette & Woods was a mixed bag. It was also a difficult spring home buying season this year as mortgage rates moved higher since bottoming out at the end of February.

KBW follows three of the companies; its analysts reduced future earnings estimates and the stock rating on Stewart Information Services. They also cut the estimates and price target at Fidelity National Financial, but not the stock rating.

Meanwhile, on First American Financial, KBW increased both the earnings estimates and its price target; it already rates this stock at outperform.

But even with the lackluster second quarter in home sales activity, the four largest underwriters all reported higher direct open order counts versus the comparable periods.

After the quarter ended, Radian Group announced a deal to sell its title business to PLACE. This leaves Essent Group as the only mortgage insurance underwriter owning a title unit.

Through various sales and mergers, Lennar holds a piece of privately owned Title Resources Group. Meanwhile, Dream Finders Homes, which just inked a deal for Beazer Homes, last year bought Alliant National Title.

Here is how the publicly traded title underwriters performed in the second quarter: