Monday, November 30, 2020
Financial Results News

Stewart Reports Second Quarter 2020 Results, Operating Revenues of $506.8 Million

– Operating revenues of $506.8 million, an increase of $40.3 million, or 9 percent, compared to the prior year quarter

– Net income of $34.1 million ($32.5 million on an adjusted basis) versus net income of $19.3 million ($21.7 million on an adjusted basis) in the prior year quarter

– Diluted EPS of $1.44 ($1.37 on an adjusted basis) compared to prior year quarter diluted EPS of $0.81 ($0.91 on an adjusted basis)

Stewart Information Services Corporation (NYSE: STC) today reported second quarter 2020 net income attributable to Stewart of $34.1 million ($1.44 per diluted share), compared to net income attributable to Stewart of $19.3 million ($0.81 per diluted share) for the second quarter 2019. Second quarter 2020 pretax income before noncontrolling interests was $49.0 million compared to pretax income before noncontrolling interests of $29.4 million for the second quarter 2019.

Second quarter 2020 results included:

  • $4.6 million of net realized and unrealized gains recorded in the title segment primarily relating to changes in the fair value of equity securities investments,
  • $2.8 million of severance expenses related to cost savings initiatives recorded within employee costs in the title segment, and
  • $0.5 million of net realized and unrealized gains recorded in the ancillary services and corporate segment primarily relating to settlements of cost-basis investments.

Second quarter 2019 results included:

  • $3.7 million of third-party advisory expenses related to the terminated Fidelity National Financial (FNF) merger transaction included in other operating expenses within the ancillary services and corporate segment, and
  • $0.4 million of net realized and unrealized gains: ($0.2) million in the title segment and $0.6 million in the ancillary services and corporate segment.

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