Title insurance premiums generated during the second quarter of 2009 were $4.53 billion, compared to $5.42 billion during the same quarter in 2008, resulting in a 16.4 percent decline. That compares to a 25 percent decline from 1Q 2008 to 1Q 2009.

"The decline of title insurance premiums continues to ebb, revealing that the market has begun its slow march to recovery," said Kurt Pfotenhauer, chief executive officer of ALTA. "First-time home buyers taking advantage of the housing stimulus tax credit coupled with greatly improved affordability conditions contributed to higher volume in transactions."

The second quarter of 2009 marked the 13th consecutive quarter in which title premiums written declined from the prior year's equivalent quarter. However, as a result of the significant rise in refinance activity in the first two quarters of 2009, this was the second consecutive quarter where the quarterly decline was less than the prior quarter's decline. In fact, the second-quarter 2009 decline of 8.2 percent was less than any quarterly decline since the second quarter of 2006. Although poor markets have continued, and premium levels continue to fall, the rate of decline is slowing. Consequently, the industry remains in a strong financial position with Admitted Assets of over $8.7 billion, including over $7.4 billion in Cash and Invested Assets. Also, Statutory Reserves were in excess of $5.2 billion and Statutory Surplus was over $2 billion.

Despite an increase in refinance activity and the continued reduction of operating expenses, the title insurance industry posted an operating loss of $68.8 million during the second quarter of 2009. This contrasts favorably with an operating loss of $264.4 million for the corresponding 2008 second quarter and an operating loss of $711.9 million for the full year 2008.

This lower operating loss was offset by an almost four-fold increase in net investment gain, resulting in net income for the second quarter of $111.4 million, as compared to a net loss of $190.4 million for the second quarter of 2008 and a net loss of $431.6 million for the full year 2008. The industry also experienced a 34.8 percent reduction in loss and loss adjustment expenses during the second quarter of 2009.

"While it appears the country is pulling out of the recession, we continue to operate in a weak economy," Pfotenhauer.