Business
Investors Title Company Announces Third Quarter 2019 Financial Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)-- Investors Title Company today announced its results for the third quarter ended September 30, 2019. Net income
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 third quarter ended September 30, 2019. Net income attributable to the Company was $8.0 million, or $4.20 per diluted share, versus $10.6 million, or $5.61 per diluted share, for the prior year period. The Company set an all-time quarterly record for net premiums written.\n\n\nNet premiums written increased 1.9% to $40.2 million, as lower average mortgage interest rates drove an increase in refinance activity, while the level of home sales remained strong as well. Revenue from non-title services increased 41.4%, mainly due to increased revenues associated with like-kind exchanges. Overall, revenues decreased 0.7% to $47.9 million, compared with $48.3 million in the prior year quarter, mainly due to a $2.5 million decrease in revenue associated with changes in the estimated fair value of equity security investments.\n\n\nOperating expenses increased 6.2% versus the prior year quarter, primarily resulting from higher agent commissions commensurate with the increase in premium volume, and reflecting a higher proportion of agent business relative to direct business. Claims expense was flat with the prior year period, with relatively low levels of claims activity, and continued favorable loss development from prior year activity. Personnel expenses were 4.3% higher than the prior year period due to normal inflationary increases in salaries and benefits.\n\n\nIncome before income taxes decreased 20.2% to $10.0 million for the current quarter versus $12.6 million 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) was virtually flat versus the prior year quarter (see Appendix A for a reconciliation of GAAP to non-GAAP measures used in this press release).\n\n\n\n\nFor the nine months ended September 30, 2019, net income attributable to the Company decreased 7.7% to $20.1 million, or $10.59 per diluted share, versus $21.8 million, or $11.47 per diluted share, for the prior year period. Revenues increased 5.4% to $130.6 million, mainly due to changes in the estimated fair value of equity security investments and an increase in revenues associated with like-kind exchange services. Results for the year-to-date period have been shaped predom...