Investors Title Company (ITIC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Investors Title Company has a market cap of $68.8 million; its shares were traded at around $30.0001 with a P/E ratio of 17.9 and P/S ratio of 1. The dividend yield of Investors Title Company stocks is 0.9%.ITIC is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
For the quarter ended September 30, 2010, net premiums written increased 17.3% to $16,749,395, investment income increased 2.5% to $934,754, total revenues increased 17.1% to $19,161,684, operating expenses increased 12.3% to $17,153,583 and net income increased 49.5% to $1,449,101, all compared with the same quarter in 2009. Both net income per basic and diluted common share increased 50.0% to $0.63, compared with the same prior year period.
For the nine months ended September 30, 2010, net premiums written decreased 15.0% to $42,174,647, investment income decreased 3.7% to $2,757,228, total revenues decreased 13.4% to $49,077,861, operating expenses decreased 13.5% to $44,051,785 and net income decreased 11.4% to $4,004,076, all compared with the same prior year period. Net income per basic common share decreased 11.2% to $1.75 and net income per diluted common share decreased 10.7% to $1.75, compared with the same prior year period.
Other Revenues: Other revenues primarily include investment management fee income, income related to the Company s equity method investments, exchange service revenues, agency service fees, as well as search fee and other ancillary fees. Other revenues were $1,522,399 and $3,839,920 for the three and nine month periods ended September 30, 2010, respectively, compared with $1,278,838 and $4,599,451 for the three and nine month periods ended September 30, 2009. The increase in other revenues for the three months ended September 30, 2010 is primarily due to increases from equity in earnings of unconsolidated affiliates, fees associated with the title segment, and management services income. The decline in other revenues for the nine months ended September 30, 2010 is primarily due to decreases from equity in earnings of unconsolidated affiliates and exchange service revenues, partially offset by an increase in management services income and fees.
Investment income increased 2.5% to $934,754 for the three months ended September 30, 2010, compared with $911,982 in the same period in 2009. For the nine months ended September 30, 2010, investment income decreased 3.7% to $2,757,228 compared with $2,862,071 in the same period in 2009. The increase in investment income for the three months ended September 30, 2010 was primarily due to interest earned on higher investment levels of fixed maturities and short term investments. The decline in investment income for the nine month period ended September 30, 2010 was due primarily to lower levels of interest earned on short-term funds and the maturity of older securities which yielded higher rates of interest relative to current investments.
Net realized gain on investments was $306,066 for the nine month period ended September 30, 2010, compared with a net realized loss of $400,760 for the same period in 2009. The 2010 year-to-date net gain included impairment charges of $91,740 on certain investments in the Company s portfolio that were deemed to be other-than-temporarily impaired, offset by net realized gains on the sales of investments of $397,806. The 2009 year-to-date net loss for the same period included impairment charges of $745,353 on certain investments offset by net realized gains on the sales of investments of $344,593. Management believes unrealized losses on remaining fixed income and equity securities at September 30, 2010 are temporary in nature.
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Investors Title Company has a market cap of $68.8 million; its shares were traded at around $30.0001 with a P/E ratio of 17.9 and P/S ratio of 1. The dividend yield of Investors Title Company stocks is 0.9%.ITIC is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
Highlight of Business Operations:
Steps taken by the U.S. government to provide economic stimulus during the past year generally had a positive effect on the Company s sales of title insurance. Under the Home Affordable Refinance Program, certain homeowners were able to get refinancing loans. The Economic Stimulus Bill included an $8,000 tax credit available for certain first time home buyers for the purchase of a principal residence on or after January 1, 2009. On July 2, 2010, the President signed a law which extended the first-time homebuyer credit to persons who signed a binding purchase contract by April 30, 2010 and closed on the purchase of their residence by September 30, 2010. A similar credit of $6,500 was also extended for homebuyers who have owned their current home at least five years.For the quarter ended September 30, 2010, net premiums written increased 17.3% to $16,749,395, investment income increased 2.5% to $934,754, total revenues increased 17.1% to $19,161,684, operating expenses increased 12.3% to $17,153,583 and net income increased 49.5% to $1,449,101, all compared with the same quarter in 2009. Both net income per basic and diluted common share increased 50.0% to $0.63, compared with the same prior year period.
For the nine months ended September 30, 2010, net premiums written decreased 15.0% to $42,174,647, investment income decreased 3.7% to $2,757,228, total revenues decreased 13.4% to $49,077,861, operating expenses decreased 13.5% to $44,051,785 and net income decreased 11.4% to $4,004,076, all compared with the same prior year period. Net income per basic common share decreased 11.2% to $1.75 and net income per diluted common share decreased 10.7% to $1.75, compared with the same prior year period.
Other Revenues: Other revenues primarily include investment management fee income, income related to the Company s equity method investments, exchange service revenues, agency service fees, as well as search fee and other ancillary fees. Other revenues were $1,522,399 and $3,839,920 for the three and nine month periods ended September 30, 2010, respectively, compared with $1,278,838 and $4,599,451 for the three and nine month periods ended September 30, 2009. The increase in other revenues for the three months ended September 30, 2010 is primarily due to increases from equity in earnings of unconsolidated affiliates, fees associated with the title segment, and management services income. The decline in other revenues for the nine months ended September 30, 2010 is primarily due to decreases from equity in earnings of unconsolidated affiliates and exchange service revenues, partially offset by an increase in management services income and fees.
Investment income increased 2.5% to $934,754 for the three months ended September 30, 2010, compared with $911,982 in the same period in 2009. For the nine months ended September 30, 2010, investment income decreased 3.7% to $2,757,228 compared with $2,862,071 in the same period in 2009. The increase in investment income for the three months ended September 30, 2010 was primarily due to interest earned on higher investment levels of fixed maturities and short term investments. The decline in investment income for the nine month period ended September 30, 2010 was due primarily to lower levels of interest earned on short-term funds and the maturity of older securities which yielded higher rates of interest relative to current investments.
Net realized gain on investments was $306,066 for the nine month period ended September 30, 2010, compared with a net realized loss of $400,760 for the same period in 2009. The 2010 year-to-date net gain included impairment charges of $91,740 on certain investments in the Company s portfolio that were deemed to be other-than-temporarily impaired, offset by net realized gains on the sales of investments of $397,806. The 2009 year-to-date net loss for the same period included impairment charges of $745,353 on certain investments offset by net realized gains on the sales of investments of $344,593. Management believes unrealized losses on remaining fixed income and equity securities at September 30, 2010 are temporary in nature.
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