Core Viewpoint - Investors Title Company (NASDAQ: ITIC) is recommended as a "Buy" due to its consistent ability to outperform the market through strong dividend performance [1] Company Analysis - The company demonstrates elements that support continued success in the market, particularly through its dividend strategy [1]

Company Overview - Investors Title Company (NASDAQ: ITIC) is one of the largest title insurance companies in the United States, generating net premiums written of $204 million in FY 2024 and almost $101 million in the first half of the fiscal year [1] Investment Focus - The investment group European Small Cap Ideas focuses on high-quality investment opportunities in the small-cap space, emphasizing capital gains and dividend income for continuous cash flow [1] Portfolio Features - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content on European investing opportunities [1]

Core Insights - Investors Title Company (ITIC) shares have increased by 5.4% since the earnings report for the quarter ended June 30, 2025, outperforming the S&P 500 index, which rose by 1.3% during the same period [1] - The stock has shown a 12.2% gain over the past month, compared to a 2% growth in the S&P 500, indicating strong momentum [1] Financial Performance - For Q2 2025, net income was reported at $6.48 per share, a 38% increase from $4.70 per share a year earlier [2] - Revenues increased by 12.6% to $73.6 million from $65.4 million in the prior-year quarter, driven by higher real estate activity and gains from asset transfers [2] - Operating expenses rose by 6.9% to $57.9 million, attributed to higher agent commissions and increased provisions for claims [2] Key Business Metrics - Net premiums written rose to $54.5 million from $51.4 million, with contributions from both direct and agency channels [4] - Escrow and other title-related fees increased to $5.7 million from $4.8 million, while non-title services revenue climbed to $5.5 million from $4.3 million [4] - Net investment gains were recorded at $2.1 million, up from $1.2 million in the previous year, due to favorable changes in the estimated fair value of equity securities [4] Management Commentary - Chairman J. Allen Fine stated that this was the company's strongest quarterly performance in over three years, attributing it to solid execution and broad-based revenue growth [5] - He highlighted growth in title insurance revenues and contributions from non-title business segments, particularly the like-kind exchange subsidiary [5] - Incoming order volumes surpassed those of the prior year, indicating a stronger pipeline for the third quarter [5] Influencing Factors - Top-line growth was fueled by increased real estate market activity, higher non-title services revenues, and a gain from asset transfers to a joint venture [6] - Higher commissions to agents aligned with the growth in agent-originated business, while claims costs rose due to larger reserves on reported claims [6] - Net investment gains contributed to year-over-year income growth [6] Other Developments - The quarter included a notable $2.7 million gain from assets transferred to a joint venture, boosting "Other" revenues [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 0-11774 INVESTORS TITLE COMPANY (Exact name of registrant as specified in its charter) North Carolina 5 ...

INVESTORS TITLE COMPANY ANNOUNCES SECOND QUARTER 2025 RESULTS Contact: Elizabeth B. Lewter August 6, 2025 Telephone: (919) 968-2200 Nasdaq Symbol: ITIC FOR IMMEDIATE RELEASE: Chapel Hill, NC – Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2025. The Company reported net income of $12.3 million, or $6.48 per diluted share, compared to $8.9 million, or $4.70 per diluted share, for the prior year period. Revenues increased 12.6% to $73.6 million, compared t ...

Core Insights - Investors Title Company (ITIC) reported a net income of $1.67 per share for Q1 2025, a 30.4% decrease from $2.40 per share in the same period last year [2][3] - The company's revenues increased by 5.8% to $56.6 million, driven by a 15.3% rise in net premiums written, indicating stronger activity in key markets [2][4] - Operating expenses rose by 10.2% to $52.5 million, primarily due to increased agent commissions, while personnel costs remained flat [5][6] Financial Performance - Net income declined to $3.2 million from $4.5 million year-over-year, attributed to higher operating expenses and a $3.6 million swing in investment gains [3][7] - Net premiums written totaled $46.3 million, up from $40.2 million in the prior-year quarter, with direct premiums at $13.5 million and agency premiums at $32.8 million [4][5] - Adjusted income before income taxes increased by 53% to $5.2 million from $3.4 million in the previous year, indicating improved core business performance [8] Management Commentary - Chairman J. Allen Fine noted positive momentum in premium growth and attributed it to modest market improvements and efforts to expand market presence [6] - Management acknowledged that expense growth was mainly tied to volume-related commissions, while fixed overhead costs were lower year-over-year due to successful cost-saving strategies [6] Market Context - The stock of Investors Title Company gained 1.4% since the earnings report, underperforming compared to the S&P 500's 4.5% growth during the same period [1] - Over the past month, the stock increased by 5.9%, while the S&P 500 rose by 8.8%, indicating a relatively underwhelming performance in the broader market context [1]

Revenue and Premiums - Total revenues for the title insurance segment accounted for 90.4% of the Company's revenues for the three-month period ended March 31, 2025[84]. - Net premiums written increased 15.3% for the three-month period ended March 31, 2025, reaching $46.3 million compared to $40.2 million for the same prior year period[107]. - Agency net premiums written increased 22.2% for the three-month period ended March 31, 2025, primarily due to higher activity levels across key markets[110]. - Total revenues for the three-month period ended March 31, 2025, were $56.6 million, compared to $53.5 million for the same period in 2024[104]. - Net premiums written for the three-month period ended March 31, 2025, increased to $46,345 thousand, up from $40,180 thousand in the same period of 2024, representing a growth of 15.4%[111]. - Revenue from non-title services increased to $4.6 million for the three-month period ended March 31, 2025, up from $4.3 million in the same prior year period, reflecting a growth of 7.0%[113]. Income and Expenses - Net income for the three-month period ended March 31, 2025, was $3.2 million, down from $4.5 million in the same prior year period[104]. - The Company's operating expenses for the three-month period ended March 31, 2025, totaled $52.5 million, compared to $47.7 million for the same period in 2024[104]. - Operating expenses increased by 10.2% for the three-month period ended March 31, 2025, totaling $52,512 thousand, compared to $47,662 thousand in the same prior year period[128]. - Interest and dividends income decreased to $2.3 million for the three-month period ended March 31, 2025, from $2.5 million in the same prior year period[104]. - Interest and dividends decreased to $2.3 million for the three-month period ended March 31, 2025, down from $2.5 million in the same prior year period, a decline of 8.0%[118]. Claims and Reserves - The provision for claims decreased by 64.5% for the three-month period ended March 31, 2025, with claims totaling $386 thousand compared to $741 thousand in the same prior year period[135]. - The total reserve for claims as of March 31, 2025, was $37.0 million, with approximately $2.5 million reserved for specific claims[137]. - The Company had a claims reserve totaling $37.0 million as of March 31, 2025, with potential variability in future payments due to economic conditions[157]. Cash and Investments - Net cash used in operating activities was $(75) thousand for Q1 2025, compared to $1.4 million for Q1 2024[146]. - As of March 31, 2025, the Company held cash and cash equivalents of $27.6 million, short-term investments of $54.1 million, and available-for-sale fixed maturity securities of $118.3 million[148]. - The net effect of all activities on total cash and cash equivalents was an increase of $2.9 million in 2025[148]. - Like-kind exchange deposits held by the Company totaled approximately $362.1 million as of March 31, 2025, up from $323.5 million at the end of 2024[162]. Strategic Initiatives - The company is evaluating nonorganic growth opportunities, including mergers and acquisitions, as part of its ongoing business strategy[142]. - The Company anticipates making further stock repurchases under its plan, having purchased no shares in Q1 2025 and 6,763 shares in Q1 2024[155]. - The Company’s capital resources are influenced by state regulations and the need to maintain superior financial ratings[149]. - The Company’s title insurance subsidiaries met the minimum capital, surplus, and reserve requirements for their respective states as of March 31, 2025[151]. Market Conditions - The average 30-year fixed mortgage interest rates were 6.8% for the three-month period ended March 31, 2025, compared to 6.7% for the same period in 2024[101]. - The Mortgage Bankers Association projects a 16.7% net increase in total mortgage originations to $2,076 billion in 2025 from 2024 levels[101]. - The Company's profitability is influenced by the overall level of residential and commercial real estate activity, which is cyclical and affected by various economic factors[91]. Financial Instruments and Risk Management - The Company does not currently utilize derivative financial instruments for hedging purposes, actively monitoring market risks related to interest rates and equity values[168]. - Other investment income rose significantly to $410 thousand for the three-month period ended March 31, 2025, compared to $111 thousand for the same prior year period, marking an increase of 269.4%[120]. - The effective income tax rate for the three-month period ended March 31, 2025, was 21.8%, slightly down from 21.9% in the same prior year period[139]. - Capital expenditures for Q1 2025 were approximately $1.3 million, with plans for technology and system development initiatives funded by cash flows from operations[156].

INVESTORS TITLE COMPANY ANNOUNCES FIRST QUARTER 2025 RESULTS Contact: Elizabeth B. Lewter May 8, 2025 Telephone: (919) 968-2200 Nasdaq Symbol: ITIC FOR IMMEDIATE RELEASE: Chapel Hill, NC – Investors Title Company (Nasdaq: ITIC) today announced results for the first quarter ended March 31, 2025. The Company reported net income of $3.2 million, or $1.67 per diluted share, compared to $4.5 million, or $2.40 per diluted share, for the prior year period. Revenues increased 5.8% to $56.6 million, compared to $53. ...

Group 1 - Investors Title Company (NASDAQ: ITIC) is identified as a property title insurance company, characterized as one of the lowest risk ventures within the insurance sector [1] - Losses and loss provisions on title insurance contracts are reported to be very low, indicating a stable financial environment for the company [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] Group 2 - The analyst has a beneficial long position in ITIC shares, indicating confidence in the company's future performance [1] - There is interest in increasing the position in ITIC, although the approach is cautious and not urgent [2]

Business Segments - The Company operates two reportable segments: title insurance issuance and tax-deferred real property exchange services[14]. - The Company’s exchange services division, ITEC and ITAC, provides tax-deferred exchange services, with income derived from fees and interest on client deposits[33]. - The company’s marketing of tax-deferred exchange services is integrated with its core title products[41]. Title Insurance Operations - Title insurance premiums written are primarily derived from North Carolina (34.4%), Texas (27.9%), South Carolina (8.8%), Georgia (7.6%), and Florida (7.2%) markets[9]. - The Company is licensed to write title insurance in 44 states and the District of Columbia, with primary operations in 21 states[26]. - The Company’s title insurance policies are issued based on a search of public records, with premiums recognized as revenue at the closing of related transactions[24]. - The reserve for claim losses is established from known claims and estimated losses based on historical experience[21]. - The Company’s title insurance subsidiaries are regularly assigned ratings by independent agencies to indicate their financial condition and claims paying ability[29]. - The title insurance industry is highly competitive, with the four largest companies holding over 80% of the market share in the United States[50]. Financial Performance - Revenues from reinsurance activities accounted for less than 1% of total premium volume for the last two years[31]. - The company met the statutory premium reserve requirements and minimum capital and surplus requirements in the states where it is licensed as of December 31, 2024[44]. - The company does not depend on any single customer, and the loss of any single customer would not materially affect its operations[52]. Employee Relations - As of December 31, 2024, the company had 521 full-time employees and 29 part-time employees, with no employees covered by collective bargaining agreements[58]. - The company considers its relationship with employees to be favorable, emphasizing the importance of recruiting and retaining qualified personnel[59]. Investment Strategy - The company's investment portfolio is primarily composed of municipal and federal U.S. government securities and investment-grade corporate fixed maturity securities[54]. - The company’s investment policy aims to maintain a high-quality portfolio while maximizing income, with a focus on investment-grade securities[54]. Marketing Strategy - The company’s marketing strategy includes targeting a broad range of customers in both residential and commercial market sectors of the real estate industry[39]. - The Company relies on key markets for a significant portion of its premiums, highlighting the importance of economic conditions in these regions[9]. - The company’s management services subsidiary provides consulting to help clients operate title insurance agencies successfully[34].