Regional Underwriter Reports 3Q Earnings
November 19, 2009
North Carolina-based Investors Title Co. reported net income increased 5.7 percent during the third quarter of 2009.
The underwriter reported $969,043 in net income during the third quarter, compared to net income of $917,033 during the same period in 2008. Net premiums written decreased 6.8 percent to $14,282,615. Operating results for the third quarter showed improvement over the same period in 2008 primarily due to cost containment efforts and a reduction in payroll expenses. The provision for claims declined slightly from the prior year period but increased as a percentage of premiums written, due in part to the ongoing elevated pace of mortgage foreclosures.
"Premiums written benefited from an increase in the level of purchase transactions as home buyers took advantage of very low mortgage interest rates as well as various government stimulus programs, including a tax credit for first time buyers," said Allen Fine, chairman of Investors Title. "The level of mortgage refinance transactions insured declined from the first and second quarters of the year; however, refinance transactions remain a significant block of business. We continue to search for and work on opportunities to develop our distribution network but remain guarded in expectations for near term transaction volume."
Allen Fine, chairman of Investors Title, announced that for the third quarter ended September 30, 2009, the Company reported net income of $969,043, an increase of 5.7% compared with net income of $917,033 for the same three-month period in 2008. Net income per diluted share equaled $0.42 compared with net income per diluted share of $0.39 in the same period last year. investment income decreased 15.5% to $911,982 and total revenues decreased 7.0% to $16,362,617 compared with the prior year period.
For the nine-month period ended September 30, 2009, the company reported net income of $4,519,479, an increase of 63.3 percent, compared with $2,767,479 for the same nine-month period in 2008. Net premiums written decreased 3.3 percent to $49,604,823,