Stewart Information Services Corporation Announces Second Quarter Earnings

Business Wire, July 23, 1996

HOUSTON--(BUSINESS WIRE)--July 23, 1996--Stewart Information Services Corporation (NYSE: STC) today reported the highest second quarter revenues and earnings in its history.

Net earnings more than tripled in the second quarter of 1996 to $5.7 million, or $.85 per share, from $1.7 million, or $.27 per share, for the second quarter of 1995. Revenues for the three months ended June 30, 1996 increased 33 percent to $90 million from $67 million during the same period last year.

For the six months ended June 30, 1996, net earnings were $7.9 million, or $1.18 per share, compared to $0.2 million, or $.04 per share, for the same six-month period in 1995. Revenues year-to-date increased 34 percent to $168 million.

"We are extremely pleased with these results," said Carlos Morris, chairman of the board and co-chief executive officer. "During the quarter, we took advantage of a good real estate market, increased our revenues and continued to improve our policy claims experience. Our performance is also the result of implementing our business strategies: providing quality service, leadership in title technology and expansion into domestic and international markets."

On July 9, Stewart advanced its lead in the development of technology for the title industry. At a conference in Houston, Stewart debuted its latest technology. Stewart demonstrated its electronic commerce product SureClose(TM) in combination with its production and real estate information systems.

SureClose creates a business environment in which Stewart makes itself available to clients who want to order and receive real estate information products electronically. With SureClose, all parties in real estate transactions exchange information electronically, simplifying the process by reducing times, keystrokes and paper.

"The conference featured actual on-line demonstrations with real-life conditions," Morris said. "We were able to show the benefits of our true 'one-stop' service. We are confident these systems will enhance our position as the title company of choice. As our national and local clients roll out their new systems, they will want to use Stewart to improve their process."

Title orders received were 9 percent and 10 percent higher in the second quarter and June 1996, respectively, compared to the same periods in 1995. "Although mortgage rates are higher than they were one year ago, home sales and other real estate activity held up well," Morris said.

Stewart's primary business is title insurance. The company issues policies through more than 3,600 issuing locations on homes, commercial property and other real estate located in all 50 states, the District of Columbia and several territories and foreign countries.

Stewart also provides real estate information services to domestic and foreign markets. -0-

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