FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 1-12688
STEWART INFORMATION SERVICES CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 74-1677330
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1980 Post Oak Blvd., Houston TX 77056
------------------------------------------------------------
(Address of principal executive offices, including zip code)
(713) 625-8100
----------------------------------------------------
(Registrant's telephone number, including area code)
-------------------------------------------------------------------------------
(Former name,former address and former fiscal year,if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common 13,583,263
Class B Common 1,050,012
<PAGE>
FORM 10-Q
QUARTERLY REPORT
Quarter Ended September 30, 1999
TABLE OF CONTENTS
Item No. Page
- -------- ----
Part I
1. Financial Statements 1
2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
3. Quantitative and Qualitative Disclosures About
Market Risk 8
Part II
1. Legal Proceedings 10
5. Other Information 10
6. Exhibits and Reports on Form 8-K 9
Signature 11
<PAGE>
STEWART INFORMATION SERVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE QUARTERS AND NINE MONTHS ENDED
SEPTEMBER 30, 1999 and 1998
<TABLE>
<CAPTION>
THIRD QUARTER NINE MONTHS
--------------------- --------------------
1999 1998 1999 1998
---------- --------- -------- --------
<S> <C> <C> <C> <C>
($000 Omitted) ($000 Omitted)
Revenues
Title premiums, fees and other revenues 246,460 233,385 749,293 632,912
Real estate information services 14,507 12,265 45,823 36,112
Investment income 5,394 4,703 15,186 13,479
Investment gains - net 20 72 50 403
--------- -------- -------- --------
266,381 250,425 810,352 682,906
Expenses
Amounts retained by agents 124,186 114,465 378,582 304,156
Employee costs 72,030 62,690 215,493 180,935
Other operating expenses 43,321 35,219 122,898 99,701
Title losses and related claims 9,937 10,284 31,123 28,523
Depreciation and amortization 4,968 3,809 13,161 10,670
Interest 314 306 910 1,089
Minority interests 1,377 1,233 3,803 3,662
--------- -------- -------- --------
256,133 228,006 765,970 628,736
--------- -------- -------- --------
Earnings before taxes 10,248 22,419 44,382 54,170
Income taxes 4,150 8,371 16,958 20,239
--------- -------- -------- --------
Net earnings 6,098 14,048 27,424 33,931
========= ======== ======== =======
Average number of shares outstanding -
assuming dilution (000) 14,762 14,188 14,562 14,128
Earnings per share - basic (1) 0.42 1.00 1.90 2.43
Earnings per share - diluted (1) 0.41 0.99 1.88 2.40
========= ========= ======== ========
Comprehensive earnings:
Net earnings 6,098 14,048 27,424 33,931
Changes in unrealized investment gains,
net of taxes of $(700), $1,390, $(3,950)
and $1,061, respectively (1,300) 2,582 (7,335) 1,971
--------- -------- -------- --------
Comprehensive earnings 4,798 16,630 20,089 35,902
========= ========= ======== ========
</TABLE>
(1) Restated for a two-for-one stock split in May 1999.
-1-
<PAGE>
STEWART INFORMATION SERVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
SEP 30 DEC 31
1999 1998
---------- ----------
<S> <C> <C>
($000 Omitted)
Assets
Cash and cash equivalents 41,205 44,883
Short-term investments 58,761 59,446
Investments - statutory reserve funds 177,490 164,554
Investments - other 66,141 62,758
Receivables 42,508 46,732
Property and equipment 44,526 36,392
Title plants 24,450 23,608
Goodwill 32,136 23,615
Deferred income taxes 13,518 10,633
Other 23,028 25,860
---------- ----------
523,763 498,481
========== ==========
Liabilities
Notes payable 19,101 16,194
Accounts payable and accrued liabilities 31,424 44,578
Estimated title losses 179,519 171,763
Minority interests 6,790 5,503
Contingent liabilities and commitments
Stockholders' equity
Common and Class B Common Stock and
additional paid-in capital 79,134 63,951
Retained earnings 209,001 190,363
Accumulated other comprehensive earnings (deficit) (1,206) 6,129
---------- -----------
Total stockholders' equity ($19.61 per share at
September 30, 1999) 286,929 260,443
---------- -----------
523,763 498,481
========== ===========
</TABLE>
-2-
<PAGE>
STEWART INFORMATION SERVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
-------- --------
<S> <C> <C>
($000 Omitted)
Cash provided by operating activities (Note) 42,114 58,697
Investing activities:
Purchases of property and equipment and title plants - net (19,794) (13,914)
Proceeds from investments matured and sold 32,839 37,281
Purchases of investments (57,269) (62,772)
Increases in notes receivable (5,838) (1,644)
Collections on notes receivable 5,315 1,303
Proceeds from sale of equity investment 5,840 -
Cash paid for the acquisition of subsidiaries - net (5,166) (1,476)
---------- ---------
Cash used by investing activities (44,073) (41,222)
Financing activities:
Dividends paid (1,612) (1,357)
Distribution to minority interests (2,871) (2,763)
Proceeds from issuance of stock 39 2,228
Proceeds of notes payable 8,470 5,466
Payments on notes payable (5,745) (8,374)
---------- ---------
Cash used by financing activities (1,719) (4,800)
---------- ---------
(Decrease) increase in cash and cash equivalents (3,678) 12,675
========== ==========
</TABLE>
NOTE: Reconciliation of net earnings to the above amounts -
<TABLE>
<S> <C> <C>
Net earnings 27,424 33,931
Add (deduct):
Depreciation and amortization 13,161 10,670
Provision for title losses in excess of payments 7,206 11,102
Provision for uncollectible amounts - net (465) (502)
Decrease (increase) in accounts receivable - net 5,477 (4,033)
(Decrease) increase in accounts payable and
accrued liabilities - net (12,918) 7,389
Minority interest expense 3,803 3,662
Equity in net earnings of investees (750) (701)
Realized investment gains - net (50) (403)
Gain on sale of equity investment (1,145) -
Stock bonuses 598 342
Increase in other assets (846) (1,003)
Other - net 619 (1,757)
---------- ---------
Cash provided by operating activities 42,114 58,697
========== =========
</TABLE>
-3-
<PAGE>
STEWART INFORMATION SERVICES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Interim Financial Statements
The financial information contained in this report for the three and nine month
periods ended September 30, 1999 and 1998, and as of September 30, 1999, is
unaudited. In the opinion of management, all adjustments necessary for a fair
presentation of this information for all unaudited periods, consisting only of
normal recurring accruals, have been made. The results of operations for the
interim periods are not necessarily indicative of results for a full year.
Certain amounts in the 1998 consolidated financial statements have been
reclassified for comparative purposes. Net earnings, as previously reported,
were not affected.
Note 2: Segment Information
The Company's two reportable segments are title and real estate information.
Selected financial information related to these segments follows:
<TABLE>
<CAPTION>
Real Estate
Title Information Total
----- ----------- -----
<S> <C> <C> <C>
($000 Omitted)
Revenues:
- ---------
Three months ended
9/30/99 251,874 14,507 266,381
9/30/98 238,160 12,265 250,425
Nine months ended
9/30/99 764,529 45,823 810,352
9/30/98 646,794 36,112 682,906
Pretax Earnings:
- ----------------
Three months ended
9/30/99 9,675 573 10,248
9/30/98 22,092 327 22,419
Nine months ended
9/30/99 41,551 2,831 44,382
9/30/98 52,291 1,879 54,170
Identifiable Assets:
- --------------------
9/30/99 483,748 40,015 523,763
12/31/98 463,030 35,451 498,481
</TABLE>
Note 3: Earnings Per Share
The Company's basic earnings per share figures were calculated by dividing net
earnings by the weighted average number of shares of Common Stock and Class B
Common Stock outstanding during the reporting period. The Company's stock option
plans have the only potentially dilutive effect on earnings per share.
In calculating the effect of the options and determining a figure for diluted
earnings per share, the average number of shares used in calculating basic
earnings per share was increased by 138,000 and 157,000 for the three month
periods ending September 30, 1999 and 1998, respectively and 138,000 and 182,000
for the nine month periods ending September 30, 1999 and 1998, respectively.
-4-
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations
GENERAL
The Company's two segments of operations are land titles and real estate
information. In general, the principal factors that contribute to increases in
the Company's operating revenues include declining mortgage interest rates
(which usually increase home sales and refinancing transactions), rising home
prices, higher premium rates, increased market share, additional revenues from
new offices and increased revenues from commercial transactions. Although
relatively few in number, large commercial transactions typically yield higher
premiums.
Mortgage interest rates, on the average, were only slightly higher for the first
nine months of 1999 when compared to the same period in 1998. However, rates
steadily increased each month over the previous month in 1999. Rates for
September 1999 were approximately 100 basis points higher than September 1998.
Higher interest rates trimmed refinance activity. As reported in the Mortgage
Banker's Association weekly survey, refinance activity, which had represented an
average 55 percent of all loan applications in the third quarter of 1998, was
only 21 percent in the third quarter of 1999.
A comparison of the results of operations of the Company for the first nine
months of 1999 with the first nine months of 1998 follows.
REVENUES
Revenues from title premiums and fees increased $116.4 million, or 18.4%, in the
first nine months of 1999 compared to the same period a year ago. Revenues
earned on premiums written by agents represented a substantial part of the total
increase in premium revenues in 1999. Strong order counts in the last few months
of 1998 and a healthy real estate market in the first half of 1999 generated
additional revenues.
The number of closings handled by the Company decreased 1.5% in 1999. Closings
decreased in California, Colorado, Florida and most other states. The average
revenue per closing increased in 1999 due, in part, to a fewer number of
refinancings with their lower premiums and higher average home prices in 1999.
Increases in revenues from agents contributed to higher revenues in 1999.
Other revenues in the first nine months of 1999 included a $1.1 million pretax
gain resulting from a settlement of a lawsuit and a related sale of an equity
ownership in a title agency. The Company began to open its own offices in the
related markets during the second quarter of 1999.
Real estate information revenues were $45.8 million in 1999 and $36.1 million in
1998. The increase was primarily due to a favorable real estate environment in
the first half of 1999 and new businesses started or acquired in 1998. These
increases were partially offset by a decrease in business due to increases in
mortgage interest rates. Real estate information profits were reduced by a $1.2
million pretax charge resulting from a settlement of a lawsuit during the second
quarter of 1999.
Investment income increased 12.7% in 1999 due primarily to an increase in the
average balances invested.
EXPENSES
Amounts retained by agents increased $74.4 million, or 24.5%, over the same
period in 1998. The percentage of retention by agents to the amounts of revenues
from agents was comparable at 80.4% and 80.3% for the nine months ended
September 30, 1999 and September 30, 1998, respectively.
Employee expenses increased $34.6 million, or 19.1%, in 1999 primarily because
of a higher average number of employees during the first nine months of 1999
compared to a year ago and increased average rates of compensation. The Company
has taken steps to align staff levels with lower order counts.
Increases in employee costs were primarily in areas of automating services
rendered to customers and improving its own processes, real estate information
services that are being developed and sold to customers and the expansion of its
national marketing efforts.
The Company believes the development and sale of new products and services is
important to its future. Through automated operating processes, the Company
expects to add customer services and revenues while reducing operating expenses
and title losses in the future.
-5-
<PAGE>
Other operating expenses increased by $23.2 million, or 23.3%, primarily because
of the increase in real estate information and title transaction volume. Other
expenses that increased included rent, business promotion and expenses of new
offices. Other operating expenses also include premium taxes, title plant
expenses, supplies, computer costs, telephone, travel, policy forms, search fees
and delivery costs. Most of these expenses follow, to varying degrees, the
changes in transaction volume and revenues.
Provisions for title losses and related claims were up $2.6 million, or 9.1%, in
1999. As a percentage of title premiums, fees and related revenues, the
provision in the first nine months of 1999 was 4.2% versus 4.5% in 1998. The
continued improvement in industry trends in claims and the Company's improved
experience in claims have led to lower loss ratios. An overall increase in
refinancing transactions in recent years, which results in lower loss exposure,
also reduced loss ratios.
The provision for income taxes represented effective tax rates of 38.2% and
37.4% in 1999 and 1998, respectively.
A comparison of the results of operations of the Company for the third quarter
of 1999 with the third quarter of 1998 follows.
REVENUES
Revenues from title premiums and fees increased $13.1 million, or 5.6%, from a
year ago. Mortgage interest rates, on average, were approximately 100 basis
points higher in the third quarter of 1999 than in the same period a year ago.
Refinancing activity was down substantially in 1999 as the result of higher
rates. Revenues from agents represented a substantial part of the total increase
in premium revenues in 1999.
The number of closings handled by the Company decreased 16.9%. Closings
decreased in California, Texas, Colorado, Florida and most other states. The
average revenue per closing increased in 1999 due, in part, to a fewer number of
refinancings with their lower premiums and higher average home prices in 1999.
Real estate information revenues were $14.5 million in 1999 and $12.3 million in
1998. The increase was primarily due to a favorable real estate environment in
the first half of 1999 and new businesses started or acquired in 1998. These
increases were partially offset by a decrease in business due to increases in
mortgage interest rates.
Investment income increased 14.7% in 1999 due primarily to an increase in the
average balances invested.
EXPENSES
Amounts retained by agents increased $9.7 million, or 8.5%, over the same period
in 1998. The percentage of retention by agents to the amounts of revenues from
agents was comparable at 80.2% and 80.6% for the three months ended September
30, 1999 and September 30, 1998, respectively.
Employee expenses increased $9.3 million, or 14.9%, in 1999 primarily because of
a higher average number of employees during the third quarter of 1999 compared
to a year ago and increased average rates of compensation.
The Company has taken steps to align staff levels with lower order counts.
Other operating expenses increased by $8.1 million, or 23.0%, primarily because
of the increase in real estate information volume. Other expenses that increased
included rent, business promotion, title plant expenses, supplies, computer
costs, telephone, travel, premium taxes, policy forms, search fees and delivery
costs. Most of these expenses follow, to varying degrees, the changes in
transaction volume and revenues.
Provisions for title losses and related claims were down $0.3 million, or 3.4%
in 1999. As a percentage of title premiums, fees and related revenues, the
provision in the third quarter of 1999 was 4.0% versus 4.4% in 1998. The
continued improvement in industry trends in claims and the Company's improved
experience in claims have led to lower loss ratios. An overall increase in
refinancing transactions in recent years, which results in lower loss exposure,
also reduced loss ratios.
The provision for income taxes represented effective tax rates of 40.5% and
37.3% in 1999 and 1998, respectively.
-6-
<PAGE>
YEAR 2000 ISSUE
Introduction
The Company recognizes the technological challenges associated with the
inability of some older software to handle dates later than 1999 (the "Y2K"
issue). Information technology is a crucial part of the Company's business.
Computer software is used in the title and real estate information segments of
the Company's business. The uses of software in the title segment include
searching and examining titles, closing transactions, accounting for agent
policies and claims. In the real estate information segment, software is used in
providing mortgage services, such as flood determinations, appraisals and
assignments.
The Company's Readiness Program
The Company has implemented a formal program to address Y2K issues and has a Y2K
Team to carry out the program. The program includes several distinct phases: (1)
assessment, (2) remediation, (3) testing and (4) implementation. The progress of
the work of the Y2K Team is monitored by the Company's senior management and the
audit committee of the Company's board of directors.
Most of the software used by the Company was developed internally in recent
years with Y2K issues in mind. The Company has substantially completed its
assessment and any necessary remediation of this software.
In addition to its work on internally-developed computer software, the Y2K Team
conducted an inventory of the Company's systems worldwide. This inventory
included software and hardware acquired from third parties for use by the
Company. The inventory also included critical non-information technology systems
which may house non-compliant, imbedded technology, such as fax machines,
photocopiers, telephone facilities and other common devices. Assessment of these
systems and any necessary remediation was substantially completed during the
second quarter of 1999.
Certain subsidiaries that were acquired by the Company and operated with
different systems from the Company's were given high priority under the
Company's Y2K plan. All phases of Y2K readiness for these subsidiaries were
substantially completed during the second quarter of 1999. the Company continues
to monitor this area as additional subsidiaries are acquired.
In addition to addressing the Company's own systems, the Y2K Team assessed, to
the extent practicable, the state of readiness of the systems of other
mission-critical entities with which it does business. These included
independent title insurance agents and other business partners, such as county
courthouses and lenders, whose condition or operational capability is important
to the Company.
The Company hired an outside Y2K consultant to assist the Company in developing
contingency plans to define and address the worst-case scenario likely to be
faced. Contingency planning has been substantially completed during the third
quarter of 1999.
The Company has spent approximately $3.2 million from 1997 through the third
quarter of 1999 directly related to assessing, remediating, testing and
implementing its information technology systems. These amounts have been funded
from operations. The Company currently estimates that the total cost of its Y2K
readiness program will not exceed $3.6 million.
Status of the Company's Y2K Readiness
The Company has now substantially completed all phases of its Y2K readiness plan
with respect to both internally developed, third-party and embedded software
that it uses in its offices and that it believes to be critical to its
operations. The Company believes that all of such software is now Y2K ready. In
addition, based upon inquiries to third parties with whom the Company does
business and whose software is critical to its operations, the Company does not
anticipate any material Y2K related problems from those entities' systems.
Risks
The Company's success in being Y2K ready cannot be finally and conclusively
known until the year 2000 is actually reached. Failure by one or more of the
Company's own systems could result in lost revenues and additional expenses
required to carry out manual processing of transactions. Failure by third
parties to resolve adequately their Y2K issues could have a material adverse
effect on the Company's operations. Failures by the telecommunications industry,
banking institutions and others could have far-reaching materially adverse
effects on the Company, the title insurance industry and the entire economy. The
magnitude of the failure of external forces on the business of the Company
cannot be predicted.
-7-
<PAGE>
This entire section ("Year 2000 Issue") is hereby designated a "Year 2000
Readiness Disclosure", as defined in the Year 2000 Information and Readiness
Disclosure Act.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations represent the primary source of financing for the
Company, but this may be supplemented by bank borrowings. The capital resources
of the Company and the present debt-to-equity relationship are considered
satisfactory.
During the first nine months of 1999, the Company financed a portion of various
acquisitions through the issuance of Common Stock totaling $7.5 million.
Acquisitions during the first nine months of 1999 have resulted in an increase
in goodwill of $9.6 million.
FORWARD LOOKING STATEMENTS
All statements included in this report, other than statements of historical
facts, which address activities, events or developments that the Company expects
or anticipates will or may occur in the future are forward-looking statements.
Such forward-looking statements are subject to risks and uncertainties
including, among other things, changes in mortgage interest rates, employment
levels, actions of competitors, changes in real estate markets, general economic
conditions and legislation (primarily legislation related to insurance) and
other risks and uncertainties discussed in the Company's filings with the
Securities and Exchange Commission.
Item 3: Quantitative and Qualitative Disclosures About Market Risk There have
been no material changes in the Company's investment strategies, types of
financial instruments held or the risks associated with such instruments which
would materially alter the market risk disclosures made in the Company's Annual
Statement on Form 10-K for the year ended December 31, 1998.
-8-
<PAGE>
PART II
Page
----------
Item 1. Legal Proceedings 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K
(a) Index to exhibits
(b) There were no reports on Form 8-K filed during the quarter ended
September 30, 1999.
-9-
<PAGE>
ITEM 1. LEGAL PROCEEDINGS
The Registrant is a party to routine lawsuits incidental to its
business, most of which involve disputed policy claims. In many of these suits,
the plaintiff seeks exemplary or treble damages in excess of policy limits based
on the alleged malfeasance of an issuing agent of the Registrant. The Registrant
does not expect that any of these proceedings will have a material adverse
effect on its financial condition.
ITEM 5. OTHER INFORMATION
On March 15, the Registrant's Board of Directors approved a two-for-one
split of the Registrant's Common Stock, $1.00 par value ("Common Stock"), and
Class B Common Stock, $1.00 par value, which was effected in the form of a stock
dividend. Each stockholder of record of the Registrant at the close of business
on May 7, 1999 received one additional share for each share owned on that date.
The stock dividend was paid on May 21, 1999.
-10-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Stewart Information Services Corporation
----------------------------------------
(Registrant)
November 12, 1999
- -----------------
Date
/S/ MAX CRISP
-----------------------------------------------
Max Crisp
(Vice President-Finance, Secretary-Treasurer,
Director and Principal Financial and
Accounting Officer)
-11-
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
4. - Rights of Common and Class B Common Stockholders
27.0 - Financial data schedule
28.2 - Details of investments as reported in the
Quarterly Report to Shareholders
EXHIBIT 4
STEWART INFORMATION SERVICES CORPORATION
RIGHTS OF COMMON AND CLASS B COMMON STOCKHOLDERS
September 30, 1999
Common and Class B Common stockholders have the same rights, except (1)
no cash dividend may be paid on Class B Common Stock and (2) the two classes of
stock are voted separately in electing directors. A provision in the by-laws
requires an affirmative vote of at least two-thirds of the directors to approve
any proposal which may come before the directors. This by-law provision cannot
be changed without majority vote of each class of stock.
Common stockholders, with cumulative voting rights, may elect five or
more of the nine directors. Class B Common stockholders may, with no cumulative
voting rights, elect four directors, if 350,000 or more shares of Class B Common
stock are outstanding; three directors, if between 200,000 and 350,000 shares of
Class B Common Stock are outstanding; if less than 200,000 shares of Class B
Common Stock are outstanding, the Common Stock and the Class B Common Stock
shall be voted as a single class upon all matters, with the right to cumulate
votes for the election of directors.
No change in the Certificate of Incorporation which would affect the
Common Stock and the Class B Common Stock unequally shall be made without the
affirmative vote of at least a majority of the outstanding shares of each class,
voting as a class.
Class B Common Stock may, at any time, be converted by its holders
into Common Stock on a share-for-share basis. Such conversion is mandatory
on any transfer to a person not a lineal descendant (or spouse, trustee, etc.
of such descendant) of William H. Stewart.
Exhibit 28.2
STEWART INFORMATION SERVICES CORPORATION
DETAILS OF INVESTMENTS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
SEP 30 DEC 31
1999 1998
-------- --------
<S> <C> <C>
($000 Omitted)
Investments, at market, partially restricted:
Short-term investments 58,761 59,446
U. S. Treasury and agency obligations 34,965 24,086
Municipal bonds 132,278 133,533
Mortgage-backed securities 8,663 4,233
Corporate bonds 62,558 59,796
Equity securities 5,167 5,664
--------- --------
TOTAL INVESTMENTS 302,392 286,758
========= ========
</TABLE>
NOTE: The total appears as the sum of three amounts on the condensed
consolidated balance sheets presented on page 2: (1) `short-term investments',
(2) `investments - statutory reserve funds' and (3) `investments - other'.
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
STEWART INFORMATION SERVICES CORPORATION
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF SEPTEMBER 30, 1999 AND THE RELATED STATEMENT OF EARNINGS FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<DEBT-HELD-FOR-SALE> 243,631
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 302,392 <F1>
<CASH> 41,205
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 523,763
<POLICY-LOSSES> 179,519
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 19,101
<COMMON> 14,633
0
0
<OTHER-SE> 272,296
<TOTAL-LIABILITY-AND-EQUITY> 523,763
749,293
<INVESTMENT-INCOME> 15,186
<INVESTMENT-GAINS> 50
<OTHER-INCOME> 45,823
<BENEFITS> 31,123
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 44,382
<INCOME-TAX> 16,958
<INCOME-CONTINUING> 27,424
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,424
<EPS-BASIC> 1.90
<EPS-DILUTED> 1.88
<RESERVE-OPEN> 171,763
<PROVISION-CURRENT> 28,750 <F2>
<PROVISION-PRIOR> 2,923
<PAYMENTS-CURRENT> (5,864)
<PAYMENTS-PRIOR> (18,053)
<RESERVE-CLOSE> 179,519
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1> Includes short-term investments.
<F2> Includes reserve balance increase of $550 from the acquisition of an
existing underwriter.
</FN>
</TABLE>
