Reply #28: Stewart Title parent posts annual loss (first loss since 1974), cuts jobs

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSN2034096620080220?sp=true

NEW YORK, Feb 20 (Reuters) - Stewart Information Services Corp (STC.N: Quote, Profile, Research), 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 a severe decline in the nation's housing market.

The 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.

Results included a $20 million pre-tax charge, or 72 cents per share, tied to higher reserves for claims. Revenue fell 23 percent to $499.7 million.

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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.

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