Investors Title Company Announces First Quarter 2015 Financial Results

Investors Title Company today announced its results for the quarter ended March 31, 2015. The Company reported net income attributable to the Company of $1,726,124, or $0.86 per diluted share, compared with $986,438, or $0.48 per diluted share, for the prior year period.

Revenues totaled $28,301,809, a decrease of 1.0% versus the prior year period. Although premium revenues and investment income increased, realized gains on investments from the prior year period resulted in an unfavorable comparison for total revenues. Refinance activity increased substantially versus the prior year period as mortgage interest rates dropped to their lowest levels in nearly two years. Premiums from purchase transactions increased as well, due both to increased volume from favorable interest rates and overall economic conditions, and increases in average home prices.

Operating expenses decreased 4.3% versus the prior year period, mainly due to decreases in the provision for claims and commissions, which were partially offset by higher payroll expenses. Favorable loss development as well as a reduction in losses incurred, mostly related to a few large claims in the prior year period, contributed to the lower provision for claims. Commissions decreased due to a smaller proportion of agent business versus the prior year period, as well as small shifts in the mix of business toward markets with generally lower commission rates. Payroll expenses increased due to normal inflationary increases in compensation and benefit costs, and higher staffing levels to support ongoing software development activities.

Chairman J. Allen Fine added, “We are pleased to see continued strength in home sales as well as an unexpected increase in refinance activity driven by recent declines in average mortgage rates. Relatively flat revenue levels coupled with lower claims expense led to a substantial increase in earnings over the prior year.”

Investors Title Company’s subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services to individuals, companies, banks and trusts, as well as services in connection with tax-deferred exchanges of like-kind property.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, any statements regarding future home price increases, changes in home purchase or refinance activity, interest rate changes, expansion of the Company’s market presence, enhancing competitive strengths or statements regarding our actuarial assumptions and the application of recent historical claims experience to future periods. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: the cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience; declines in the performance of the Company’s investments; government regulation; changes in the economy and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission, and in subsequent filings.