Investors Title pany(ITIC) - 2024 Q4 - Annual Report

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].