Stewart Reports Third Quarter 2022 Results
Stewart Information Services Corporation (NYSE: STC) reported net income attributable to Stewart for the third quarter 2022 of $29.4 million ($1.08 per diluted share), compared to net income attributable to Stewart of $88.7 million ($3.26 per diluted share) for the third quarter 2021. On an adjusted basis, Stewart’s third quarter 2022 net income was $37.5 million ($1.37 per diluted share) compared to $86.4 million ($3.17 per diluted share) in the third quarter 2021. Third quarter 2022 pretax income before noncontrolling interests was $45.5 million ($56.1 million on an adjusted basis) compared to pretax income before noncontrolling interests of $116.4 million ($113.6 million on an adjusted basis) for the third quarter 2021.
Third quarter 2022 results included $6.4 million of pretax net realized and unrealized losses, primarily related to net unrealized losses on fair value changes of equity securities investments recorded in the title segment. Third quarter 2021 results included $2.9 million of pretax net realized and unrealized gains primarily driven by an acquisition contingent liability adjustment recorded in the real estate solutions segment.
“Our third quarter results reflect the headwinds experienced from increased mortgage interest rates that have significantly impacted the market. We are managing our operations in a disciplined manner during these challenging times,” commented Fred Eppinger, chief executive officer. “At the same time, we will continue to invest opportunistically to build a stronger and more resilient company. In line with our long-term focus on improving Stewart, we just welcomed to the Stewart family FNC Title Services, LLC, which specializes in providing title services for reverse mortgage transactions.”