Major title insurers post strong Q1 earnings, fueled by commercial real estate deals

First American

First American reported strong first-quarter results, led by a 29% year-over-year increase in commercial real estate revenues and a rebound in title insurance activity.

“The commercial side of the business, which began declining in the second half of 2022, is seeing meaningful improvement,” CEO Mark Seaton said. “Commercial volume started picking up in the second half of last year, and the momentum continues into 2025.”

Seaton added that while broader economic uncertainty around tariffs, interest rates and inflation could slow some deals, First American is well positioned to weather a storm.

He noted that while the residential side of the business remains historically weak, it appears to have bottomed out.

“Real estate goes in cycles, and we’re at the very beginning of the next cycle,” Seaton said. “I believe residential originations have hit a bottom, and now we can debate the path and pace of growth.”

First American’s adjusted pretax margin in the title segment improved to 7.9%, up from 4.8% a year earlier, bolstered by stronger order volume and commercial pricing.

Investment income rose 18% to $138 million, largely on higher yields, while agent premiums, which are reported on a delay, rose 16%.

Seaton, who recently stepped into the CEO role following the departure of Ken DeGiorgio, emphasized his long-term confidence in the company’s direction.

“I’ve been a part of the First American family for nearly 20 years, and it’s an honor to serve the company as its chief executive,” he said. “Given our extraordinary people and unique competitive advantages, I firmly believe our best days are yet to come.”

Fidelity National

Fidelity’s title insurance business saw double-digit growth in revenue and adjusted earnings.

The company’s title segment generated $1.8 billion in revenue in Q1 2025, up from $1.7 billion in the same period last year. Excluding market-related gains and losses, revenue rose 12%, driven by gains across residential, commercial and refinance transactions.

Adjusted pretax earnings for the title division reached $211 million, a significant jump from $171 million in Q1 2024. Fidelity also posted an adjusted pretax title margin of 11.7%, up from 10.7% a year ago.

“Our improved margin is a testament to our employees as well as the operational efficiencies that we have achieved over the last few decades through investments in technology,” Fidelity CEO Mike Nolan said.

Nolan added that Fidelity’s long-term investments are paying off through strong performance in a period of historically low transaction volumes.

“We also continue to generate strong free cash flows during this period, enabling us to maintain a dynamic capital allocation strategy that balances investing in growth with returning capital through dividends and repurchases,” he said.

Commercial title revenue rose 23% to $293 million, while refinance order volume surged 33% year over year.

Old Republic

Old Republic’s title insurance segment posted double-digit growth for premiums in Q1 2025 as well as higher operating income.

Net premiums and fees earned in title rose to $605 million from January through March — a 10.9% yearly increase. That was driven by a 27% jump in commercial title premiums and an 11% rise in residential premiums.

The segment’s performance contributed to overall net operating income of $201.7 million — up 9.2% from Q1 2024.

Title premiums produced through agency channels increased 12%, while direct premiums grew by 6%. Commercial title business accounted for nearly one-quarter of total net premiums earned, up from 21% in the same period last year.

But the company noted a decline in fee revenue from direct operations, largely due to the recent sale of its settlement and production software platforms.

That transaction saw Old Republic partner with real estate tech company Qualia, which acquired the company’s RamQuest and E-Closing software solutions earlier this year.

“Technology continues to be paramount to ensuring smooth and secure real estate transactions,” said Carolyn Monroe, CEO of Old Republic Title.

“In our previous fourth quarter call, we emphasized the importance of refocusing our technological efforts to streamline business operations. In the first quarter, we proudly announced our strategic partnership with Qualia.”

Monroe said the move would allow Old Republic to modernize transaction processes across its title operations.

“By leveraging Qualia’s expertise and advanced infrastructure, providing a modern digital transaction, we will be able to equip our direct offices and title agents with cutting-edge tools and solutions,” she said. “This partnership also allows our internal tech teams to reallocate our focus and resources toward developing other crucial technologies that will help us thrive in a competitive market.”

Stewart

Stewart Title showed notable growth in its operations during the first quarter, also led by strong commercial business performance and expansion efforts across key markets.

The company reported $3.1 million in net income for the quarter, unchanged from the same period in 2024. Adjusted net income rose to $7 million, up from $4.6 million a year earlier.

“I’m proud of our first quarter 2025 performance as we delivered strong revenue results across all our segments, growing our total revenues compared to the first quarter of last year,” Stewart CEO Fred Eppinger said. “We are pleased with our performance as we were able to deliver these results while navigating a historically challenging macro environment.”

Stewart’s title insurance segment posted operating revenue of $499.2 million, up 11% year over year. Direct and agency operations saw improvements, and title loss expenses remained steady at $17.7 million.

Loss expense as a percentage of revenue declined to 3.5%, compared to 3.9% in the same quarter in 2024, reflecting what the company described as “overall favorable claims experience.”

“Driven by thoughtful investment in talent as we deepen our capabilities in both geographies and asset classes, our domestic commercial business grew 39% in the first quarter of 2025 relative to Q1 of 2024,” Eppinger said.

Eppinger emphasized the company’s continued investments in local growth and acquisitions as a strategic priority.

“In our direct business, we remain focused on growth in our target MSAs,” he said. “We expect acquisitions will be a key component of our growth plan in this business, and to maintain a more robust pipeline of targets.”

The company also reported progress in its small commercial title operations.

“While the business is impacted by a suppressed residential housing market, we saw strong progress in our strategic priority of growing small commercial within our direct operations as we saw a 16% growth this quarter in that important segment,” Eppinger said.