I own a title insurance agency in Bloomington Indiana that I purchased in 2002. For 22 years prior to that I held a variety of technical, sales and executive positions with First American Title Insurance Company.
If I understand Fidelity's press release it looks like the Nebraska DOI approved both Fidelity and Stewart. Maybe a bankruptcy auction is in the near future? I'm pulling for Stewart. All of the big U/W's are blaming agents instead of themselves for many of their problems; claims, defalcations, too generous contract splits. But the U/W's facilitated all of this over the last 10 years chasing bad business relationships. LandAmerica's financial condition has nothing to do with the underlying fundementals of the business. Its due to grossly neglegent mismanagement of their 1031 business. As bad as things are right now in real estate, it pales in comparison to the early 80's. The industry came through that era fine and will come through this era fine as well. All of the major insurers, despite taking gas the last few quarters, are well reserved and making reasonable efforts to control their current expenses. I'm worried what two companies controling 75% of the distribution channel and sharing similar strategies and objectives will be able to cram down the marketplace because of little or no competition. Having 3 major u/w's will prevent FAF and FNF from controling the distribution of title insurance to the detriment of the client and title agent community. Ensuring viable competition is the best way to ensure the long term health and vitality of the industry.
