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

Financial Performance - Net income for Q4 2024 was $8.4 million, or $4.41 per diluted share, up from $5.8 million, or $3.09 per diluted share in Q4 2023, representing a 45% increase in net income year-over-year[1][5] - For the full year 2024, net income increased to $31.1 million, or $16.43 per diluted share, compared to $21.7 million, or $11.45 per diluted share in 2023, marking a 43% increase in net income[5][11] - Income before income taxes (GAAP) for Q4 2024 was $10,811 million, representing a 74.5% increase compared to $6,213 million in Q4 2023[18] - Adjusted income before income taxes (non-GAAP) for Q4 2024 was $10.8 million, compared to $3.5 million in Q4 2023, reflecting significant operational improvements[4][11] - Adjusted income before income taxes (non-GAAP) for the twelve months ended December 31, 2024 was $34,780 million, an increase of 52.6% from $22,782 million in 2023[18] Revenue Growth - Revenues increased by 31.6% to $70.6 million in Q4 2024, compared to $53.7 million in Q4 2023, driven by higher net premiums written and escrow and title-related fees[2][11] - Total revenues for 2024 were $258.3 million, a 14.9% increase from $224.8 million in 2023[5][11] - Total revenues for Q4 2024 reached $70,628 million, a 31.5% increase from $53,683 million in Q4 2023[18] - Adjusted revenues (non-GAAP) for the twelve months ended December 31, 2024 were $253,615 million, up 14.6% from $221,302 million in 2023[18] - The company reported adjusted revenues of $70,585 million for Q4 2024, compared to $50,955 million in Q4 2023, marking a 38.5% increase[18] - The total revenues for the twelve months ended December 31, 2024 were $258,298 million, up 14.9% from $224,750 million in 2023[18] Operating Expenses - Operating expenses rose by 26.0% to $59.8 million in Q4 2024, up from $47.5 million in Q4 2023, primarily due to increased agent commissions[3][11] Investment Gains - The company reported a decrease in net investment gains, primarily due to changes in the estimated fair value of equity security investments[2][11] - Net investment gains for Q4 2024 were $(43) million, a significant decrease from $(2,728) million in Q4 2023[18] - The net investment gains for the twelve months ended December 31, 2024 were $(4,683) million, compared to $(3,448) million in 2023[18] Future Outlook - The company aims to expand its distribution network and invest in capital improvement projects while maintaining disciplined expense control[7] - The overall economy remains strong, supporting real estate activity despite challenges in housing affordability and low home sales volume[7] - The company is cautious about future performance due to potential risks in the real estate market and economic conditions[8] Performance Trends - The company’s performance indicates strong growth trends and improved profitability metrics year-over-year[18]