Stewart Title Parent Suffers Loss, Cutting Jobs

NEW YORK (Reuters) - Stewart Information Services Corp (STC.N), which runs one of the largest U.S. title insurers, on Wednesday reported a fourth-quarter loss and its first annual loss since 1974, and said it plans deeper job cuts to cope with the nation's severe decline in the housing market.

The Houston-based parent of Stewart Title Co said it lost $31.3 million, or $1.74 per share, in the fourth quarter, compared with a profit of $10.7 million, or 59 cents per shares, a year earlier.

Excluding a charge to bolster reserves, the loss was $1.02 per share, compared with the average analyst forecast for a loss of 4 cents, according to Reuters Estimates.

Revenue fell 23 percent to $499.7 million, compared with the average forecast for $547.1 million.

Stewart shares fell $2.92, or 9.1 percent, to $29.30 in morning trading on the New York Stock Exchange.

Results suffered from "the sudden collapse of the subprime mortgage lending market, tightening of credit availability in general, rising foreclosures, weakening home sales and falling home prices," Stewart said.

Business declined in nearly every state, particularly Florida, Arizona, California, Nevada and Washington, it said.

Another large title insurer, Fidelity National Financial Inc (FNF.N), on Jan. 30, posted a $44.9 million fourth-quarter loss, or 21 cents per share, hurt by a $135.7 million charge to bolster reserves for claim losses.

For all of 2007, Stewart lost $40.2 million, or $2.21 per share, compared with a profit of $43.3 million, or $2.36, a year earlier.

Title insurance guarantees that a property owner has title to a property and can legally transfer that title.

Stewart cut 675 jobs in the fourth quarter, bringing total job losses for the year to about 1,500, and said it has cut more jobs in 2008. It is also closing more offices, after shutting about 145 in 2007.

Stewart also in 2007 set aside 8.5 percent of title operating revenue for future losses, up from 6 percent in 2006. It said the increase was tied primarily to policies issued from 2004 to 2006, and some large claims.

(Reporting by Jonathan Stempel; Editing by Steve Orlofsky and Maureen Bavdek)