Business
Investors Title Company Announces First Quarter 2020 Financial Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)-- Investors Title Company today announced its results for the quarter ended March 31, 2020. The Company reported a net
About this update from Investors Title Company
[{"type":"text","content":" CHAPEL HILL, N.C.--(BUSINESS WIRE)--\nInvestors Title Company today announced its results for the quarter ended March 31, 2020. The Company reported a net loss of $7.0 million, or $3.71 per diluted share, compared with net income of $6.6 million, or $3.49 per diluted share, for the prior year period.\n\n\nNet premiums written increased 34.1% to a quarterly record of $38.6 million, as purchase volumes remained strong throughout most of the quarter, and as lower average mortgage interest rates sustained a jump in refinance activity which began in 2019. Revenues from non-title services increased 6.7% primarily due to growth in 1031 exchange services and management services. Despite these increases, however, total revenues decreased 25.1% to $29.9 million, compared with $39.9 million in the prior year, as a result of a $14.5 million decrease in the fair value of equity security investments, compared with a $4.7 million increase in the prior year. Impacts to the financial markets in the wake of the COVID-19 pandemic resulted in a significant decline in the fair value of the Company’s equity securities.\n\n\nOperating expenses increased 21.5% versus the prior year quarter, primarily resulting from higher agent commissions commensurate with the increase in premium volume. Claims expense increased $680,000 from the prior year quarter due to the increase in premium volume and recognition of less favorable loss development in the current period.\n\n\nThe above factors resulted in a pre-tax loss of $8.5 million in the current quarter versus an $8.3 million pre-tax profit in the prior year period. Excluding the impact of changes in the estimated fair value of equity security investments, income before income taxes (non-GAAP) increased 62.8% to $5.9 million in the current quarter compared with $3.6 million in the prior year period (see Appendix A for a reconciliation of GAAP to non-GAAP measures used in this press release).\n\n\nInvestors Title is closely monitoring the COVID-19 pandemic and the associated impacts on the title insurance industry, and reacting accordingly. The Company is focused on providing uninterrupted service to our customers and business partners, and ensuring the safety and health of our employees. Having been deemed an essential business, all of our issuing offices are fully operational and servicing clients. Many of ...