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LandAmerica shares plunge after insurer reports 1Q loss

By Associated Press
April 30, 2008 | Comments (0)

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LandAmerica Financial Group Inc. shares plunged Wednesday after the title insurer reported a first-quarter loss amid a sharp decline in applications caused by the housing crash.

The company's shares slid $7.06, or 19.7 percent, to close at $28.70. In the past year, the stock has ranged from $23.23 to $108.92.

Late Tuesday, LandAmerica reported a loss of $24.2 million, or $1.60 per share, after earning $4.7 million, or 26 cents per share, in the year-ago period.

Revenue fell 28 percent as mortgage originations fell sharply in the quarter. Mortgage lenders require that borrowers take out title insurance, but the crashing housing market has depressed demand.

"Tight mortgage lending conditions from reduced liquidity in the mortgage-backed securities market were factors in keeping transactional demand at bay," the insurer said in a statement Tuesday.

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