Stewart Information Services (STC) risk factors, FY2025 10-K

Other

1. 01Acquisitions or strategic investments we have made or may make could turn out to be unsuccessful
2. 02Innovations and title insurance waivers and alternatives introduced by real estate industry participants, including our competitors, lenders and investors may be potentially disruptive and could adversely affect Stewart
3. 03Rapid changes in our industry require secure, timely and cost-effective technological responses. Our earnings may be adversely affected if we are unable to effectively use technology to address regulatory changes and increase productivity47% rewritten
4. 04Stewart’s risk management program may not effectively assess, identify, and manage risks, which could negatively impact our business, financial condition and results of operations
5. 05Adverse changes in economic conditions, especially those affecting the levels of real estate and mortgage activity, may reduce our revenues
6. 06Our claims experience may require us to increase our provision for title losses or to record additional reserves, either of which would adversely affect our earnings
7. 07The issuance of our title insurance policies and related activities by title agents, which operate with substantial independence from us, could adversely affect our operations
8. 08Competition in the title insurance industry may affect our revenues
9. 09Information technology (IT) systems present potential targets for cybersecurity attacks
10. 10Errors and fraud relating to fund transfers may adversely affect us
11. 11It may become difficult to acquire necessary data used in our business, or we may experience increased costs related to acquiring and utilizing such data
12. 12Failure to attract, develop, and retain qualified personnel could adversely affect our businessNew
13. 13Climate change and extreme weather events could adversely affect our operations and financial performance
14. 14Widespread health crises could adversely impact our business operations
15. 15A downgrade of our underwriters by rating agencies may reduce our revenues
16. 16Our insurance subsidiaries must comply with extensive government regulations. These regulations and the enforcement environment could adversely affect our ability to increase our revenues and operating results
17. 17These regulations may impede or impose burdensome conditions on rate increases or other actions that we might want to take to enhance our operating results. In addition, state regulators perform periodic examinations of insurance companies, which could result in increased compliance or legal expenses
18. 18Dividends from our insurance underwriting subsidiaries are an important source for capital planning
19. 19Availability and cost of credit may reduce our liquidity and negatively impact our ability to fund operations
20. 20Unfavorable economic or other business conditions could cause us to record an impairment of all or a portion of our goodwill, other intangible assets and other long-lived assets
21. 21Our investment portfolio is subject to interest rate and other risks and could experience losses
22. 22Claims by large classes of claimants may impact our financial condition or results of operations
23. 23Failures at financial institutions at which we deposit funds could adversely affect us

Risks Related to Our Common Stock

1. 24The price of our Common Stock historically has been volatile, which may affect the price at which our investors can sell their common stockNew
2. 25Anti-takeover provisions in our charter and bylaws and Delaware law may delay or prevent an acquisition of our CompanyNew
3. 26In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which limits the ability of stockholders owning in excess of 15% of our outstanding voting stock to merge or combine with us in certain circumstancesNew
4. 27Our business could be disrupted as a result of a threatened proxy contest and other actions of activist stockholders