AM Best, the credit rating agency and provider of insurance industry research and analysis, has reported continued growth in the US title insurance market, with premiums increasing by 13% in 2025 and further gains recorded during the opening quarter of 2026.
The findings come from AM Best’s Best’s Market Segment Report, US Title Industry Remains Profitable Despite Persistent Housing and Affordability Challenges. According to the report, the increase in premiums last year was primarily linked to stronger mortgage origination volumes, with refinancing activity providing additional support.
AM Best said its composite of title insurers recorded an 18% increase in direct premiums written in the first quarter of 2026 compared with the corresponding period in 2025. The company also pointed to higher loan origination volumes, particularly in the commercial property market, during the second half of last year as another factor behind the increase in title premiums.
Despite the improvement in premium volumes, AM Best noted that conditions across the wider US housing market remain challenging. High mortgage rates, affordability concerns and limited housing supply continue to influence transaction activity, while homeowners holding lower-rate mortgages may be less willing to move and take on new borrowing at higher rates.
“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,” commented Ann Modica, Director, Credit Rating Criteria, Research and Analytics, AM Best.
AM Best also highlighted the contribution made by the refinancing market during 2025. A decline in mortgage rates encouraged more refinancing activity, supporting title insurance premiums. However, the company said this improvement has since weakened as borrowing costs moved 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.”
Financial performance across the title insurance segment also improved during 2025. AM Best reported an underwriting gain of just under $1 billion for the year, while net income reached $1.2 billion. The company said the increase in net title premiums written could translate into higher earned premiums during 2026, potentially supporting further improvements in underwriting and operating results.
AM Best said the positive trend has continued into the first quarter of 2026, with all key underwriting metrics for its composite improving compared with the same period last year.
However, the company continues to take a cautious view of the sector. AM Best maintained a negative outlook for the title insurance segment earlier in 2026, citing ongoing pressure from the housing market and elevated mortgage interest rates.
The company added that it will continue to monitor developments across the sector as title insurers respond to subdued housing activity and changing conditions in the wider real estate market. AM Best will also reassess the industry’s position as it considers 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,” added Kourtnie Beckwith, Senior Financial Analyst, AM Best.
