Stewart Information Services (STC) Stephens 26th Annual Investment Conference | NASH2024 summary

Market outlook and macro trends

• Housing market expected to turn upward in 2025, with 8%-10% growth starting in Q2.

• Market normalization to around five million existing home sales anticipated by 2026.

• Mortgage rates likely to remain in the mid-6% range, with market recovery possible without rates dropping to the 5% range.

• Inventory and transaction availability seen as more critical than absolute mortgage rates.

• Stability post-election and favorable demographics expected to support housing and commercial markets.

Industry dynamics and regulatory environment

• Title insurance market remains an oligopoly, with four major players controlling 85% of the market.

• Recent regulatory and political changes have not significantly altered real estate agent commissions or business flow.

• Strong agents continue to dominate, with MLS accuracy providing a competitive advantage.

• Risk management and balanced distribution among underwriters have become more prominent following industry cyber events.

Growth strategy and operational focus

• Focus on gaining critical mass in local markets through organic growth and selective acquisitions.

• Emphasis on building commercial capabilities and attracting top talent in key MSAs.

• Value proposition centers on service quality, employee retention, and professional development.

• Recent share gains achieved through low turnover and targeted hiring, with momentum in all business lines.