Title Insurance Premiums Grow Substantially
ARCLand title specialists expect continuing growth and record premium levels for Q3 2012.
Insurance Networking News, September 28, 2012
Title insurance premiums increased in all 50 states during the second quarter of 2012 compared with the same period of 2011, according to the “2012 Second-Quarter Market Share Analysis,” from American Land Title Association (ALTA). Title insurance premiums reached $2.76 billion in the second quarter, an almost 20 percent increase compared to the same quarter a year ago.
“Since the third quarter of 2009, the title insurance premiums fluctuate up and sown without a regular form,” said ARCLand Title escrow officers. “This is the second consecutive quarter that the premiums continue to increase versus the same quarter in 2011. It really shows a great improvement for the title insurance industry.”
The title insurance industry generated $9.47 billion in the title insurance premiums in 2011, down 1.5 percent from the prior year, according to ALTA’s 2011 premium data; Q2 2011 premiums were $445 million. Title insurance premiums in the first three months of 2012 were $2.32 billion, up from $2.25 billion in premiums in the same period of 2011.
States generating the most premiums in title insurance for Q2 2012:
1. California: $415.1 million, up 29.8 percent compared with $320 million for the same quarter 2011
2. Texas: $333.7 million, up 16.6 percent compared with $286 million in Q2 2011
3. Florida: $218.1 million, 17.4 percent compared with $186 million in Q2 2011
4. New York: $193.6 million, up 14.8 percent compared with $169 million in Q2 2011
5. Pennsylvania: $113.2 million, up 16.8 percent compared with $97 million in Q2 2011
During Q2 2012, four states increased premiums in title insurance by 35 percent or more compared with the same quarter later year, including:
1. Utah: 35 percent average increase
2. Illinois: 35.2 percent average increase
3. Nebraska: 36.2 percent average increase
4. Hawaii: 36.2 percent average increase
Title insurance premiums should continue to increase during the second half of 2012 considering record low-interest rates and gradually rising real estate sales and home prices. “With the improvement of title insurance premiums during the second quarter of this year, we believe that we can see another high level in the following quarter of 2012,” said ARCLand Title escrow officers. “And the third quarter 2012 title insurance premiums report is expected to release in December 2012.”
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