AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for the member companies of Stewart Title Group (Stewart). AM Best also has affirmed the Long-Term ICR of “bbb-” (Good) for the parent holding company, Stewart Information Services Corporation (headquartered in Houston, TX) [NYSE: STC]. The outlook of these Credit Ratings (ratings) is stable. See below for a listing of companies.

The ratings reflect Stewart’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

These rating factors are a result of the group’s favorable levels of risk-adjusted capitalization, and its consistently profitable underwriting and investment results. In addition, Stewart benefits from its market position as the fourth-largest title insurance writer in the United States and writing business in all 50 states, as well as its growing international presence. This global diversification helps mitigate the concentration risk inherent to being a monoline writer of title insurance.

Stewart Title Guaranty de Mexico, S.A. de C.V. became a member of Stewart on July 28, 2018, based upon the importance of its licensing in Mexico, which is necessary due to domestic regulations that do not permit branches to operate in Mexico. In addition, the company is a subsidiary of Stewart, and is fully integrated into the group via underwriting, reinsurance and claim processes, as well as through the administrative support provided by the U.S. operations.

Positive rating action may result from positive underwriting performance trends, accompanied by growth in risk-adjusted capitalization. Significant deterioration in operating performance that results in a decline in risk-adjusted capitalization may result in negative rating actions. Negative rating action also may result should the holding company experience liquidity issues or a significant increase in leverage.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with a stable outlook for the following members of the Stewart Title Group:

• Stewart Title Guaranty Company
• Stewart Title Insurance Company
• Stewart Title Limited

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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