The following is a summary of the Stewart Information Services Corporation (STC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Stewart reported Q3 2024 net income of $30 million on total revenues of $668 million.

• Adjusted Q3 2024 net income was $33 million or $1.17 per diluted share compared to Q3 2023 of $24 million or $0.86 per diluted share.

• Title segment revenues improved by $31 million or 6%, with pre-tax income increasing by $10 million or 27% mainly due to gains in domestic commercial and agency operations.

• Real Estate Solutions segment pre-tax income improved by $5 million, with an adjusted pre-tax margin of 13.4%.

• Commercial operations saw a revenue increase of 30%, driven by higher transaction size and volume, particularly in the energy and multifamily sectors.

Business Progress:

• Focused on enhancing technology to improve title production and data management.

• Investments in talent and technology across commercial and agency operations to drive growth.

• Ongoing expansion efforts in targeted MSAs and maintaining a warm pipeline for an improved market.

• Real Estate Solutions continued to see growth, focusing on top lenders and cross-selling products.

Opportunities:

• Positive outlook for commercial transactions continuing, despite potential near-term challenges.

• Expected recovery to a more normal housing market in '26 with annual sales reaching 5 million existing homes.

Risks:

• Existing home sales have seen a 37-month year-over-year decline, with another 3% decrease this quarter.

• Mortgage rates stabilizing around mid-6% after a Federal Reserve rate cut, indicating potential challenges in volume increase.

• Impacted credit information and services expenses in Real Estate Solutions and higher outside search costs in commercial sectors due to increased dependency on data.

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