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

The fall in the risk-adjusted capital 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 noted 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, interested parties should visit the Fitch Ratings Website and click on the "Financial Institutions" tab, then the "insurance" tab and lastly, the "Special Reports" tab.