According to American Land Titles Association (ALTA)the title insurance industry generated $5.89 billion in premiums during the first quarter of 2022, compared to $5.68 billion year-over-year, according to the latest share analysis of ALTA market.
“A strong buying market and continued home appreciation helped offset the continued contraction in refinance volume to help drive the 3.6% increase in premium volume from the first quarter of 2021,” said said the CEO of ALTA. Tomb of Diana. “While dramatically higher mortgage rates will limit the housing market, title professionals will continue to facilitate the safe and secure transfer of real estate, and they remain committed to helping all consumers realize the American dream and maintain the home ownership.”
Regionally, two of the top five states with nationwide gains saw year-over-year volume declines, with California and Pennsylvania both seeing huge gains, but losses compared to the totals for the first quarter of 2021.
The top five states that recorded the highest amounts of title insurance volume included:
- Texas at $896,225,264, a 30.6% year-over-year increase
- Florida at $696,625,101, a 22.3% year-over-year increase
- California at $531,026,826, a 17.4% year-over-year decline
- New York at $362,720,612, a 15.9% year-over-year increase
- Pennsylvania at $246,758,915, a 9.3% year-over-year decline
Looking at the industry as a whole, the top 10 individual underwriters by market share were from the following companies:
Industry-wide, total operating income also increased by 3.6%, while operating expenses increased by 40.0%, and losses and loss adjustment expenses increased 13.8%, year over year from the first quarter of 2022 to the first quarter of 2021. This resulted in net operating income of $508.1 million, compared to $489.9 million for the first quarter of 2021. The industry paid $132.7 million in claims in the first quarter, compared to $107.1 million in the same period a year ago.
“The title industry employs nearly 145,000 people and it is these skilled professionals who protect owners and lenders from the problems that could arise were it not for the work they were doing before the closings – problems that could harm to the owner’s credit and the lender’s investment,” Tomb said. “Rising interest rates will affect housing affordability, as potential monthly payments on a typical new mortgage will increase significantly. title insurance coverage has declined 7% since 2004. The title industry will continue to innovate and develop products that will best serve and protect its customers.”