Investors Title pany(ITIC) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $9.3 million, or $4.92 per diluted share, up from $7.1 million, or $3.75 per diluted share in Q3 2023, representing a 30.8% increase in net income[1] - Revenues increased by 12.1% to $68.8 million in Q3 2024, compared to $61.4 million in Q3 2023, driven by higher net premiums written and improved net investment gains[2] - Income before income taxes for Q3 2024 was $11.6 million, up from $8.6 million in Q3 2023, marking a 35% increase[4] - For the nine months ended September 30, 2024, net income increased to $22.7 million, or $12.02 per diluted share, compared to $15.9 million, or $8.37 per diluted share in the prior year[5] - For the nine months ended September 30, 2024, total revenues (GAAP) were $187,670,000, up from $171,067,000 in the same period of 2023[15] Premiums and Revenue Sources - Net premiums written rose to $54.9 million in Q3 2024, a 10.8% increase from $49.8 million in Q3 2023, attributed to expansion in Texas and Florida markets[11] - Direct net premiums written for Q3 2024 were $16,267,000, a decrease of 29.7% compared to $17,485,000 in Q3 2023[13] - Agency net premiums written for Q3 2024 increased to $38,588,000, representing a growth of 19.5% from $32,337,000 in Q3 2023[13] - Total net premiums written for Q3 2024 reached $54,855,000, up 10.1% from $49,822,000 in Q3 2023[13] - The agency segment accounted for 70.3% of total net premiums written in Q3 2024, compared to 64.9% in Q3 2023[13] Expenses and Liabilities - Operating expenses increased by 8.4% to $57.2 million in Q3 2024, compared to $52.8 million in Q3 2023, primarily due to higher agent commissions[3] - The company reported a decrease in personnel expenses to $18.1 million in Q3 2024 from $19.1 million in Q3 2023, reflecting lower staffing levels[3] - The company’s total liabilities were $80.7 million as of September 30, 2024, compared to $79.0 million at the end of 2023[12] Investment Performance - The company reported net investment losses of $4,640,000 for the nine months ended September 30, 2024, compared to losses of $720,000 in the same period of 2023[15] Strategic Focus - The company anticipates continued focus on strategic goals despite challenging market conditions and lower transaction volumes compared to pre-pandemic levels[7] - The company emphasizes the importance of non-GAAP measures to evaluate internal operational performance, excluding external market fluctuations[14] Adjusted Financial Metrics - Adjusted revenues (non-GAAP) for Q3 2024 were $67,853,000, compared to $62,225,000 in Q3 2023, reflecting a year-over-year increase of 9.5%[15] - Income before income taxes (GAAP) for Q3 2024 was $11,588,000, an increase of 34.4% from $8,610,000 in Q3 2023[15] - Adjusted income before income taxes (non-GAAP) for Q3 2024 was $10,612,000, compared to $9,425,000 in Q3 2023, indicating a growth of 12.6%[15]