Investors Title Company Announces Third Quarter 2007 Results
November 6, 2007
CHAPEL HILL, N.C., - J. Allen Fine, Chairman of Investors Title Company (NasdaqGM:ITIC - News), announced that for the third quarter ended September 30, 2007, the Company reported net income of $3,857,892, an increase of 5.1% compared with $3,672,069 for the same three-month period in 2006. Net income per diluted share equaled $1.54, an increase of 6.9% compared with $1.44 per diluted share in the same period last year. Net premiums written increased 4.1% to $18,994,453, investment income increased 25.6% to $1,301,878 and revenues increased 6.2% to $23,058,983 compared with the prior year period.
For the nine-month period ended September 30, 2007, the Company reported net income of $7,334,255, a decrease of 32.5%, compared with $10,862,547 for the same nine-month period in 2006. Diluted earnings per share were $2.91, a decrease of 31.2% compared with $4.23 for the same nine-month ended period in 2006. Net premiums written increased 0.8% to $54,413,174, investment income increased 23.4% to $3,783,240 and revenues increased 0.7% to $65,500,285 compared with the prior year.
For the quarter, an increase in premiums through agents along with a higher level of investment income positively impacted our operating results. Also favorably impacting net income was a lower effective tax rate resulting from a higher mix of tax-exempt income relative to taxable income. Offsetting these items were lower revenues from our tax-deferred exchange subsidiary and an increase in the claims provision.
President Fine added, ``We are pleased with the Company's performance this quarter in an increasingly challenging operating environment. Title premiums trended lower over the course of the quarter along with declining real estate activity. While continuing to search for opportunity to profitably expand, we are maintaining our focus on cost control and improving efficiency.''
Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property and investment management services to individuals, companies, banks and trusts.