The U.S. title insurance sector’s operating margin improved to 11.4% in 2025, up from 10.3% in 2024, according to a new Fitch Ratings report.
This performance was driven by robust commercial transactions that offset continued residential purchase market pressure.
New report analyzes this performance shift and examines whether sector performance could further improve in 2026 if commercial activity remains strong and residential volumes recover.
Commercial transactions accounted for a larger revenue share in 2025, supporting higher margins. The report details how title insurance open orders increased, driven by commercial activity and residential refinances, while residential purchase orders remained flat or declined modestly.
Favorable trends in refinance and commercial transactions in late 2025 and early 2026 indicating potential for increased revenue generation.
The commercial segment saw a notable rise in fee per file, with average revenue per closed commercial transaction significantly exceeding residential levels.
An increase in larger transactions, including those for data centers and other high-value properties, supported this growth. In residential, a higher mix of refinancing, which carries lower premiums, tempered revenue growth per transaction.
Sector participants maintained a strong focus on expense management, with the group expense ratio declining year-over-year.
Our data shows title premium growth outpaced expenses, supporting overall profitability.
