The title insurance industry saw direct premium growth of 16 percent in 2020, the largest year-over-year increase since 2012, according to an AM Best market segment report. The report, titled, “Robust Housing Market Drives Historic Title Performance,” notes the growth in direct premiums written more than doubled the 6.6 percent growth seen in 2019.
This growth reflects how economic and market conditions helped title insurers thrive despite the upheaval caused by the pandemic, according to AM Best.
Also, net underwriting income for the space improved in each of the last four years, including a 39.6 percent year-over-year increase in 2020 to $1.7 billion, owing to the premium growth. Overall, the title segment’s net income rose by 18 percent in 2020 to $1.5 billion. According to the report, title insurance was the most profitable segment of the property/casualty insurance market in 2020.
AM Best revised its market segment outlook for the title insurance industry to stable from negative in early 2021 because of the resilience shown by the industry in the wake of the economic turmoil caused by the COVID-19 pandemic.
AM Best expects title insurers’ results in 2021 to benefit from the economy being buoyed by the U.S. monetary policy, which continues to support the housing market.