Despite falling interest rates, the title insurance divisions of the Big Four title companies old republic recorded a 22.8% annualized decline in net premiums and commissions during 2018. 4th quarter of 2023which contributed significantly to last year’s overall decline of 12.8%.
During the last three months of the year, the company’s title division reported earning $645.4 million in net premiums and commissions. Additionally, the title division’s pre-tax profit was $43.9 million, a decrease of 2.5% in the same quarter.
For the full year, Old Republic’s title division reported net fee and premium income of $2,563 million, down 33.2% from 2022, and pre-tax income of $133.5 million, down 56.7%. Old Republic said in its earnings call that part of the title division’s decline was related to a 21% decline in commercial premiums in the fourth quarter and a 22% decline in commercial premiums for the full year. He pointed out that there is a possibility.
“As we discussed in our previous earnings call, the real estate market in 2023 was challenging,” said Carolyn Monroe, the company’s president and CEO. Old Republic National Title Holding Companyhe said in his office. Fourth quarter financial results briefing I spoke to investors last Thursday. “Our annual premiums and rates reflect these market conditions and have decreased by approximately 33% compared to 2022.”
Declines in the company’s title division were partially offset by growth in its property and casualty division. Overall, Old Republic reported fourth quarter 2023 total operating revenue of $1,940.8 million, down 2.8% annually, and net income of $190.6 million, down 62.8% year over year. .
The Old Republic reported full-year 2023 total operating revenue of $7,449.3 million, down 10.1% from 2022, and net income of $598.6 million, down 12.8% for the year.
Looking ahead to 2024, the 100-year-old company says it aims to modernize through improved technology and automation.
“These efforts will improve the efficiency of our teams, which will reduce the need to scale and allow us to take advantage of improved market conditions as they occur,” Monroe said. states.
“While we are very careful about revenue slowdowns, there are some things that any company that runs for the long term has to continue to do. We’ve been able to continue to invest in technology, a lot of which has to do with preparing for things like cyber issues. It’s not really the right time to cut back.”
