The title insurance industry is both highly competitive and cyclical in nature. Monroe Title Insurance Corporation ("Monroe"), as a title insurance company, is highly sensitive to the cyclical nature of both the real estate and interest rate markets. Monroe's investment portfolio helps to stabilize the income volatility, provides the revenues to pay claims and provides a more stable income base.

The ability to pay claims is the ultimate test a title company must pass. Monroe, with the reserves it built over the years, is well prepared to protect the interest of its policyholders. Monroe has solid assets behind its reserves. All amounts held are investment grade, highly liquid and readily available to pay claims.

Monroe is assigned a very strong and healthy claims-paying ability by the major title insurance rating services, LACE Title Rating Corporation and Demotech, Inc.

Demotech awarded Monroe Title Insurance Corporation a Financial Stability Rating ® of "A Prime". In Demotech's words "Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating ® of A Prime possess Unsurpassed financial stability related to withstanding a general economic downturn or deterioration of an underwriting cycle."

LACE Title Rating Corporation has awarded Monroe an "A" rating "indicating that a title insurance company has a strong overall condition that will allow it to meet its future claims. As a rule, these companies have good operating earnings, are well capitalized, and have adequate reserves."