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Six Reasons to take a Closer Look at Demotech Performance of Title Insurance Companies
by Joseph L. Petrelli, Jr.
Demotech is pleased to announce that the 16th edition of CDS Performance of Title Insurance Companies, now Demotech Performance of Title Insurance Companies, is available for immediate shipment. With coverage of 87 title underwriters, Demotech Performance of Title Insurance Companies offers the most comprehensive coverage of the title insurance industry.
Six ways Demotech Performance of Title Insurance Companies provides unique value:
Comprehensive Form 9 information for each of the 87 included underwriters provides unparalleled strategic information as to the competitive landscape of the industry. These 87 underwriters represent approximately 98% of the direct premiums written countrywide.
The information is presented to facilitate reviewing the market through a number of cross section summaries. It is aggregated into industry-wide consolidations, and offers summary breakdowns by state. This industry and market specific information accounts for subsidiaries and affiliated relationships, enabling side-by-side comparison and detailed segmentation, producing the most effective and meaningful analysis.
State by state competitor analysis presents standardized key financial ratios and statistics related to 2003 performance, including:
Market share information
Market share by production system
Loss ratios
Underwriter licensing information
Presentation of financial ratios and statistics related to 2003 performance allow users to quickly analyze and compare common ratios that derive measures of operating results, financial position, and loss measurements. These ratios are just primers to the analysis that can be accomplished with the data readily available in the 2004 edition. The ratios include:
Liquidity ratios
Expense ratios
Loss ratios – direct operations, affiliated agencies and unaffiliated agencies
Investment allocation information
Cash flow information
State and industry commission levels can be analyzed. Whether as an independent agent or an agency relationship manager for an underwriter, commission levels can be compared with the average commission paid by each of the included underwriters.
The most current available information is presented. With the offered Quarterly Updates, subscribers receive the consolidated public information regarding market share by state in a timely manner. Quarterly Updates will present quarterly statutory income statements and be delivered electronically to subscribers.
Market review and industry perspective is included. Along with the 2004 edition of Demotech Performance of Title Insurance Companies, subscribers will receive Demotech’s Title Industry Information & Economic Data - 2003 Year in Review and Demotech’s white paper on defalcation, one of the industries most pressing concerns.
These are just a few applications for the information available in Demotech Performance of Title Insurance Companies. This publication provides a convenient source for industry knowledge and perspective. To learn more about what is available in this publication, download the product overview or visit us on the web.
2004 is Demotech’s first year of production of this publication, and the latest edition reflects our efforts to continue the delivery of industry data while increasing the value of this resource. In the coming years, Demotech will expand the publication in exciting ways, including dynamic, interactive access through the web. In the interim, the underlying information for the publication is available in Demotech’s Title Insurance Database, which is available for customized, individual analysis. This Title Insurance Database contains industry data that can assist with:
Specific competitive comparisons and analysis
Business plans and analysis necessary to expand into additional states or markets
Insurance Department examinations, by providing references to the practices and procedures of title underwriters in specific markets.
With the ability to present Form 9 data by state, region, title underwriter, or other custom defined market segments, there are numerous practical uses for this information.
Form 9 data, segmented and customized to meet individual requirements
Whether you require data to respond to market demands, regulatory compliance, or for long-term corporate strategic planning, Demotech can coordinate and develop dynamic, effective, invaluable data and analysis that is customized and reported by the criteria you select. The data is ready to be transformed into strategic information to drive your business decisions. Demotech is available to lend its experience and knowledge to take your analysis to the next level.
Information available through Demotech’s Title Insurance Database*
Page**
Description
Quarterly 2004
2003
2002
2001
2000
1999
Page 1
Jurant Page
X
X
Page 2
Assets
X
X
X
X
Page 3
Liabilities, Surplus and other Funds
X
X
X
X
Page 4
Operations - Statement of Income
X
X
X
X
Page 5
Cash Flow
X
X
X
X
Page 6
Operations - Part 1A
X
X
X
Page 6
Operations - Part 1B
X
X
X
Page 6
Operations - Part 1C
X
X
X
Page 7
Operations - Losses
X
X
X
Page 8
Operations - Unpaid Losses
X
X
X
Page 8
Operations - Expenses
X
X
X
Page 10
Net Operating Gains/Losses
X
X
X
Page 11a
Net Investment Income
X
X
X
Page 11b
Capital Gains
X
X
X
Page 12
Nonadmitted Assets
X
X
X
Page 14
Summary Investment Schedule
X
X
X
Page 21
Five Year Historical Data
X
X
X
X
X
Page 24
Long Term Bonds Summary by Country
X
X
X
Page 41
Assumed Reinsurance
X
X
X
Page 42
Ceded Reinsurance
X
X
X
Page 48
Schedule P - Summary
X
X
X
Page 49
Schedule P - Policies Written Directly
X
X
X
Page 50
Schedule P - Policies Written Through Agents
X
X
X
Page 51
Schedule P - Policy Year Incurred Losses
X
X
X
Page 52a
Schedule P - Policy Year Loss Case Basis Reserves
X
X
X
Page 52b
Schedule P - Policy Year Bulk Reserves Known Claims
X
X
X
Page 53
Schedule P - Policy Year IBNR Reserves
X
X
X
Page 54
Schedule P - Incurred Loss Year First Report
X
X
X
Page 54a
Schedule P - Paid Loss Year First Report
X
X
X
Page 54b
Schedule P - Loss Case Basis Reserves Year First Rpt
X
X
X
Page 54c
Schedule P - Bulk Reserves Known Claims Year First Rpt
X
X
X
Page 56
Schedule T - Premiums Written
X
X
X
X
*Capable of detailed presentations segmenting by underwriter, licensed state, and other factors **Page numbers based on 2003 form.
The data contains each detailed line for the page presented in the Form 9 public information forms.
The 2004 edition of Demotech Performance of Title Insurance Companies, augmented by offering the underlying Title Insurance Database, offer the most comprehensive coverage of the title insurance industry available. For more information contact Demotech at (800) 354-7207, visit www.demotech.com, or email.
About Demotech, Inc.
Since 1985, Demotech, Inc., a Columbus, Ohio based financial analysis and actuarial services firm, has been serving the insurance industry, providing independent opinions on the financial stability of property and casualty insures and title insurance underwriters. Demotech offers a variety of services including actuarial opinions and pricing assistance, strategic market and product evaluations and analysis, state filings assistance, as well as financial valuations. Demotech was the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD.
About Demotech Performance of Title Insurance Companies
In 2003, Demotech purchased the exclusive publishing and distribution rights to the 2004 and all future editions of CDS Performance of Title Insurance Companies from Corporate Development Services, Inc. (CDS). Beginning in 2004, all future editions will be published as Demotech Performance of Title Insurance Companies.
Its Not Too Little. It Was Too Late
Rate Filing and Speed to Market
by Joseph L. Petrelli
When an insurance company files for a rate increase, most people think about "Speed to Market”. Speed to market addresses the time lag between submission of a rate revision and the state’s approval to implement that rate revision. Demotech, Inc. suggests that companies also face the challenge of “Speed to Top Line.”
In each and every quarterly statement or annual statement published by an insurance company, the "top line" is on the Income Statement, page 4, as Premiums Earned. Premiums Earned are the baseline for the calculation of profitability. When a company makes a rate filing, how quickly does the rate increase "speed to the top line"?
The lag between a rate increase and its impact on top line is greater than one may suspect. Considering regulatory processing, internal systems revisions, and notification to agents, months can pass before a desired rate change is fully implemented. Even more time passes between implementation and the impact on the top line. Graph A illustrates the relationship between market and top line results and the problem created by the lag of earned premium.
Reviewing the graph, it demonstrates that if a 5% increase in earned premium in 2006 is desired, a 5% rate change must be implemented in 2004. If the rate filing is delayed into 2005, more than a 5% increase will be required in 2005 to achieve a comparable increase in earned premium by 5% in 2006. For example, a desired 5% increase in earned premium in 2006 can be achieved through either a 5% rate increase in 2004 or a 10% rate increase half-way through 2005.
The longer a rate increase is delayed, the greater the rate revision required to impact the top line. The greater the rate revision taken, the more likely a company’s book of business will churn. Churning a book of business impacts insureds, agents, customer service, expense ratio, etc. No one wins. The sooner a rate revision is implemented, the sooner it impacts the top line.
If your company is at capacity and needs to evaluate opportunities for outsourcing rate level reviews or state filings to ensure speed to top line, contact Joe Petrelli at (800) 354-7207 or email him.
Joseph L. Petrelli is the President and founder of Demotech, Inc. Mr. Petrelli is an actuary and has earned a Masters of Business Administration from The Ohio State University. He has been employed in the property and casualty insurance industry since 1969.
Since 1985, Demotech, Inc., a Columbus, Ohio based financial analysis and actuarial services firm, has been serving the insurance industry, providing independent opinions on the financial stability of property and casualty insures and title insurance underwriters. Demotech offers a variety of services including actuarial opinions and pricing assistance, strategic market and product evaluations and analysis, state filings assistance, as well as financial valuations. Demotech was the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD.
Press Release: Announcing the Immediate Availability of Demotech Performance of Title Insurance Companies
Demotech, Inc. Announces Availability of Demotech Performance of Title Insurance Companies
For Immediate Release
July 2004 (Columbus, OH): Demotech, Inc., the originator of Financial Stability Ratings® for property and casualty insurers and title underwriters, announces the immediate availability of Demotech Performance of Title Insurance Companies, the definitive resource for information and analysis of the title insurance industry.
Demotech Performance of Title Insurance Companies presents key financial data and comparative financial ratios for each of the 87 underwriters included. The publication includes convenient market summaries and evaluations organized by state and nationwide.
The 2004 edition of Demotech Performance of Title Insurance Companies contains Demotech’s Financial Stability Ratings® for each rated underwriter and continues the tradition of industry leading coverage of the market for title insurance and title underwriters.
The 2004 edition marks the introduction of Quarterly Updates. Demotech will offer these Quarterly Updates electronically, presenting title insurance market share information based upon the latest available quarterly data.
With the publication and distribution of Demotech Performance of Title Insurance Companies, Demotech, Inc. continues its leadership as a provider of effective, strategic analysis and coverage of the title insurance industry.
Additional information is available in the product overview and this issue's article announcing the publication's release.
For more information regarding Demotech Performance of Title Insurance Companies or to place an order, visit http://www.demotech.com or contact Demotech at (800) 354-7207.
About Demotech, Inc.
Since 1985, Demotech, Inc., a Columbus, Ohio based financial analysis and actuarial services firm, has been serving the insurance industry, providing independent opinions on the financial stability of property and casualty insures and title insurance underwriters. Demotech offers a variety of services including actuarial opinions and pricing assistance, strategic market and product evaluations and analysis, state filings assistance, as well as financial valuations. Demotech was the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD.
About Demotech Performance of Title Insurance Companies
In 2003, Demotech purchased the exclusive publishing and distribution rights to the 2004 and all future editions of CDS Performance of Title Insurance Companies from Corporate Development Services, Inc. (CDS). The 2004, and all future editions, will be published as Demotech Performance of Title Insurance Companies.
