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Stewart Information (STC) to Expand Title Production Resources

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Stewart Information Services Corporation (STC - Free Report) has acquired A.S.K. Services, Inc. The buyout will help strengthen and expand its title production resources for independent agency partners.

A.S.K. Services is a premier provider of search and support services to the title industry. Its operations are spread across five states and 312 counties. Addition of A.S.K. Services to Stewart Information Services portfolio will thus help the latter fulfill more title orders in leading markets.

This Zack Rank #1 (Strong Buy) title insurer looks to be the premier title services company and thus remains focused on growing the said business. Last September, the company acquired 57 title offices in the states of Arizona, Colorado and Nevada from ET Investments to boost its presence in western United States. In June 2020, it acquired United States Appraisals to scale up its existing business as well as provide cross-selling opportunities with adjacent services. The company thus has been growing inorganically.

Stewart Information Services operates in the housing market and has been benefiting from positive demographic tailwinds and attractive mortgage rates. Backed by a solid capital position, the company continues to pursue strategic acquisition that will help grow its Title insurance and real-estate closing process.

Shares of Stewart Information Services have gained 4.8% year to date underperforming the industry's increase of 6.6%. Solid Title insurance business and a sturdy financial position will help shares retain the momentum.



There have been a host of consolidations in the insurance space of late, given the significant capital available. Recently, Arthur J. Gallagher (AJG - Free Report) acquired R&R Benefits/Risk Management, LLC to boost capabilities across northern Indiana. Arch Capital Group (ACGL - Free Report) inked a deal with Westpac Group to buy Westpac Lenders Mortgage Insurance Limited (WLMI). Assurant (AIZ - Free Report) acquired TRYGLE Co. Ltd. to maximize the daily usage of mobile devices, electronics and home appliances.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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