NU Online News Service, Nov. 30, 2:42 p.m.EST

Fitch Ratings has changed its outlook on the title-insuranceindustry from negative to stable, saying the current ratings ofthese companies reflect the weakened state of the companies.

Fitch says that “uncertainty tied to potential earnings andcapital losses from adverse loss reserve development hasdiminished.”

Two insurers, Old Republic Title Group and Stewart InformationServices Corp., maintain a negative outlook due to“company-specific issues.”

Old Republic is weighed down by its mortgage-guarantee business.Stewart is having profitability issues during the housingdownturn.

Cost cutting is allowing title-insurance companies to remainprofitable in the face of the economic downturn. The companies are“better equipped to respond to any future revenue volatilityrelative to the expense structures maintained when the marketturned unfavorably in 2007-2008,” says Fitch.

The rating service notes that two insurers, New Jersey Title andSouthern Title Insurance, were placed into runoff because of agentschemes to pilfer premium-escrow funds.