After the real estate market freefall in 2008-when title insurance revenues fell sharply and most major title insurance underwriters posted net losses-operating results rebounded in 2009, although total industry written premiums declined from 2008 levels. During the first quarter of 2010, however, title insurance revenues-helped partly by federal policy and tax incentives-improved compared with the similar period in 2009.

While revenues were down in the second quarter of 2010, most major underwriters posted positive operating margins through the first six months of the year. Despite economic uncertainties and housing market challenges-particularly given recent foreclosure processing issues-A.M. Best Co. has revised its rating outlook for the title sector to stable from negative, given strengthened capitalization and improved operating performance trends.