N.C.-based Investors Title Reports Earnings
November 4, 2010
North Carolina-based Investors Title Co. reported its net income increased 49.5 percent to $1.5 million during the third quarter of 2010, compared to $969,043 for the prior year period.
The increase in net income was driven primarily by revenue growth versus the prior year period. Net premiums written increased 17.3 percent to $16.7 million due to an increase in refinance activity.
Operating expenses increased 12.3 percent to $17.2 million versus the prior year period, primarily due to increases in variable expenses tied to premium volumes. Commissions to agents increased 26.2 percent commensurate with an increase in agency premium volume. The provision for claims decreased 5.9 percent versus the prior year period due to unfavorable claims experience for the prior year quarter, partially offset by increases in the current provision resulting from higher premium volume.
For the nine-month period ended September 30, 2010, net income decreased 11.4 percent to just over $4 million, compared with $4.5 million for the prior year period. The decline in net income for the period was driven primarily by a 15 percent decrease in net premiums written, partially offset by a 13.5 percent decrease in operating expenses.
"We are pleased to report an improvement in operating results during the quarter, driven by an increase in the volume of refinancing activity due to historically low interest rates during the quarter,” said Chairman J. Allen Fine added. “We were also pleased to see a continuation of the improvement in our claims loss rate, which contributed to a favorable comparison in the provision for claims. Our balance sheet and financial condition remain strong, and operationally we continue to emphasize efficiency improvements and the expansion of our agency base."