Best’s Market Segment Report: US Title Industry Remains Profitable Despite Persistent Housing and Affordability Challenges

OCTOBER 05, 2026 10:03 AM (EDT)

Best's Market Segment Report: US Title Industry Remains Profitable Despite Persistent Housing and Affordability Challenges

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OLDWICK - OCTOBER 05, 2026 10:03 AM (EDT)
U.S. title insurance premium increased by 13% in 2025 with sustained momentum into 2026, even as the housing market continues to face constrained inventory and home affordability pressures, according to a new AM Best report.

The Best's Market Segment Report, "US Title Industry Remains Profitable Despite Persistent Housing and Affordability Challenges," states that the 2025 premium increase was attributable to higher mortgage origination volume driven by refinancing activity. Through the first quarter of 2026, AM Best's composite of title insurers recorded an 18% increase in direct premiums written, compared with the same prior-year period. Loan originations, particularly commercial, increased during the second half of 2025, which also helped to fuel the growth in title premium.

"Despite some positive factors, the housing market continues to be affected by relatively high mortgage rates, persistent affordability challenges and the reluctance of existing homeowners to give up lower-rate mortgages, all of which has kept housing activity relatively subdued," said Ann Modica, director, Credit Rating Criteria, Research and Analytics, AM Best.

The real estate refinancing market experienced a rebound in 2025 with the decline in mortgage rates, which contributed to the growth in title premiums. However, the improvement was not sustained, with rates moving higher again during 2026. "At present, there is little enticement to refinance with rates remaining at current levels," said David Blades, associate director, Industry Research, AM Best. "With interest rates likely to remain higher for longer, activity on the residential side will likely be limited and leave the possibility for title insurance premium growth to be tied squarely to the commercial real estate market."

The segment saw an underwriting gain of just under $1 billion in 2025, and $1.2 billion in net income, according to the report. The growth in net title premiums written should lead to growth in earned premiums in 2026, which could help increase underwriting and operating income further. Through first-quarter 2026, all key underwriting metrics for the composite have improved compared with the same period in 2025.

The ongoing market headwinds and persistently elevated mortgage interest rates led AM Best to maintain a negative outlook on the title insurance segment earlier in 2026. However, as the title industry continues to recover and navigate challenges associated with a slower housing market, AM Best will reassess industry conditions and evaluate the outlook for 2027.

"The impact of negative economic factors that have been deeply embedded in the home-buying market has affected the composite's performance, but with the improvement in 2025 and so far through 2026, title insurers have demonstrated the segment's resilience," said Kourtnie Beckwith, senior financial analyst, AM Best.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369267.