Investors Title Company Announces Third Quarter 2009 Results
J. Allen Fine, Chairman of Investors Title Company, announced that for the third quarter ended September 30, 2009, the Company reported net income of $969,043, an increase of 5.7% compared with net income of $917,033 for the same three-month period in 2008. Net income per diluted share equaled $0.42 compared with net income per diluted share of $0.39 in the same period last year. Net premiums written decreased 6.8% to $14,282,615, investment income decreased 15.5% to $911,982 and total revenues decreased 7.0% to $16,362,617 compared with the prior year period.
For the nine-month period ended September 30, 2009, the Company reported net income of $4,519,479, an increase of 63.3%, compared with $2,767,479 for the same nine-month period in 2008. Diluted earnings per share were $1.96, an increase of 70.4% compared with $1.15 for the same nine-month period in 2008. Net premiums written decreased 3.3% to $49,604,823, investment income decreased 17.6% to $2,862,071 and total revenues decreased 3.6% to $56,665,585 compared with the prior year period. Operating results for the quarter ended September 30, 2009 showed improvement over the same period in 2008 primarily due to cost containment efforts and a reduction in payroll expenses. The provision for claims declined slightly from the prior year period but increased as a percentage of premiums written, due in part to the ongoing elevated pace of mortgage foreclosures.
“Premiums written benefited from an increase in the level of purchase transactions as home buyers took advantage of very low mortgage interest rates as well as various government stimulus programs, including a tax credit for first time buyers,” Chairman Fine added. “The level of mortgage refinance transactions insured declined from the first and second quarters of the year; however, refinance transactions remain a significant block of business. We continue to search for and work on opportunities to develop our distribution network but remain guarded in expectations for near term transaction volume.” Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property and investment management services to individuals, companies, banks and trusts.
Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include any predictions regarding activity in the U.S. real estate market. 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: 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; mechanic lien claims; declines in the performance of the Company’s investments; government regulation; 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, 2008, as filed with the Securities and Exchange Commission, and in subsequent filings.
Elizabeth B. Lewter, 919-968-2200
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