In brief: Fitch Ratings says the U.S. title insurance industry will remain stable in 2012.
The full story
Despite economic woes and a lot of top-line pressure, the ratings outlook Fitch gives the title insurance industry went from negative to stable for 2012. The change reflects Fitch's view that continued weak market conditions will dampen near-term profibility, but will not diminish them compared to 2011.
Most of the change is thanks to the industry's cost restructuring and reductions, paring down expenses and retaining profitability in a leaner market. Improvements in title insurers' capital positions have also set them up to withstand future market volatility.
Summing up
Although Fitch does not anticipate a Rating Outlook revision to Positive from Stable near term, notable top-line growth spurring consistent double-digit returns along with a return in industry capitalization to historical levels could prompt a review.
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