2008-07-07 23:26:12 -

- Fitch Ratings has completed its study on the U.S. title insurance industry's risk-adjusted capital (RAC) position at year-end 2007, which showed a significant decrease in the RAC ratio for Fitch's aggregate title insurer universe. The title industry's RAC ratio is at its lowest since the RAC Model was first introduced in 1997.

The fall in the RAC ratio

reflects both a deterioration in capital and a reduced redundancy between statutory reserves and expected claims. Widespread expense reductions favorably influenced targeted policyholders' surplus, but the affect was outweighed by lost surplus. While the industry ratio fell dramatically, Fitch notes that a few companies held relatively steady and consequently, disparities among individual title insurance companies deepened.

For a copy of the report 'Title Insurers' Risk-Adjusted Capital Adequacy at Year-End 2007', dated July 7, 2008, please see the Fitch Ratings web site www.fitchratings.com under the tab 'Financial Institutions, 'Insurance' and 'Special Reports'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

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Douglas M. Pawlowski, CFA, 312-368-2054
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