Title insurance provider Stewart Information Services (NYSE: STC) announced better-than-expected revenue in Q3 CY2025, with sales up 16.3% year on year to $776.5 million. Its GAAP profit of $1.55 per share increased from $1.07 in the same quarter last year.

Is now the time to buy Stewart Information Services? Find out by accessing our full research report, it’s free for active Edge members.

"I am proud of our third quarter results as they demonstrate our momentum," commented Fred Eppinger, chief executive officer.

Company Overview

Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE: STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects.

Revenue Growth

Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services. Regrettably, Stewart Information Services’s revenue grew at a mediocre 6.4% compounded annual growth rate over the last five years. This was below our standard for the insurance sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Stewart Information Services’s annualized revenue growth of 9.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Stewart Information Services reported year-on-year revenue growth of 16.3%, and its $776.5 million of revenue exceeded Wall Street’s estimates by 27.7%.

Net premiums earned made up 87% of the company’s total revenue during the last five years, meaning Stewart Information Services barely relies on non-insurance activities to drive its overall growth.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Stewart Information Services’s BVPS grew at a decent 8.3% annual clip over the last five years. However, BVPS growth has recently decelerated to 3.1% annual growth over the last two years (from $49.42 to $52.58 per share).

Key Takeaways from Stewart Information Services’s Q3 Results

We were impressed by how significantly Stewart Information Services blew past analysts’ revenue expectations this quarter. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $75 immediately after reporting.

So do we think Stewart Information Services is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.