Investors Title Company (ITIC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Investors Title Company is engaged in the business of issuing and underwriting title insurance policies. Title insurance is typically sold when real estate is purchased. Policies are issued through company-owned branch offices and a network of agents located across the states. Additionally the company facilitates tax-deferred exchanges through awholly owned subsidiary Investors Title Exchange Corporation. Investors Title Company has a market cap of $65.3 million; its shares were traded at around $28.5 with a P/E ratio of 44.6 and P/S ratio of 0.9. The dividend yield of Investors Title Company stocks is 1%. Investors Title Company had an annual average earning growth of 31.8% over the past 5 years.
Investment income decreased 22.6% to $989,635 in the first quarter of 2009, compared with $1,279,359 in the same period in 2008. The decline in investment income in 2009 was due primarily to lower levels of interest earned on short-term funds, as the capital markets experienced significant distress beginning in the second quarter of 2008.
Net realized loss on investment securities totaled $299,937 for the three months ended March 31, 2009, compared with net realized gain of $118,569 for the corresponding period in 2008. The 2009 net loss, which included impairment charges totaling $344,578 on certain equity and equity method investments in the Company s portfolio that were deemed to be other than temporarily impaired, and was partially offset by net realized gains on sales of investments of $44,641. Management has determined that the unrealized losses from remaining fixed income and equity securities at March 31, 2009 are temporary in nature. The net realized gains in 2008 resulted primarily from the sale of equity securities and other investments in the Company s investment portfolio.
At March 31, 2009, the total reserves for claims were $38,988,000. Of that total, $6,452,644 was reserved for specific claims, and $32,535,356 was reserved for claims for which the Company had no notice. Because of the uncertainty of future claims, changes in economic conditions and the fact that many claims do not materialize for several years, reserve estimates are subject to variability.
Salaries, employee benefits and payroll taxes were $5,138,176 and $5,497,936 for the first quarters of 2009 and 2008, respectively. Salaries and related costs decreased about $360,000 for the March 31, 2009 quarter. On a consolidated basis, salaries, employee benefits and payroll taxes as a percentage of total revenues were 27.5% and 26.4% for the three months ended March 31, 2009 and 2008, respectively. The title insurance segment s total salaries, employee benefits and payroll taxes accounted for 85.7% and 84.0% of the total consolidated amount for the three months ended March 31, 2009 and 2008, respectively.
Cash Flows: Cash flow used in operating activities for the three months ended March 31, 2009 amounted to $2,100,591, compared with $934,602 for the same three-month period of 2008. The increase in net cash used in operating activities was primarily the result of the timing of payments for accounts payable compared with the prior year period and an increase in receivables.
Read the The complete ReportITIC is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
Investors Title Company is engaged in the business of issuing and underwriting title insurance policies. Title insurance is typically sold when real estate is purchased. Policies are issued through company-owned branch offices and a network of agents located across the states. Additionally the company facilitates tax-deferred exchanges through awholly owned subsidiary Investors Title Exchange Corporation. Investors Title Company has a market cap of $65.3 million; its shares were traded at around $28.5 with a P/E ratio of 44.6 and P/S ratio of 0.9. The dividend yield of Investors Title Company stocks is 1%. Investors Title Company had an annual average earning growth of 31.8% over the past 5 years.
Highlight of Business Operations:
For the quarter ended March 31, 2009, net premiums written decreased 7.9% to $16,409,820, investment income decreased 22.6% to $989,635, total revenues decreased 10.4% to $18,682,409 and net income decreased 32.5% to $1,434,963, all compared with the same quarter in 2008. Net income per basic and diluted common share decreased 28.4% and 28.7% to $0.63 and $0.62, respectively, compared with the same prior year period.Investment income decreased 22.6% to $989,635 in the first quarter of 2009, compared with $1,279,359 in the same period in 2008. The decline in investment income in 2009 was due primarily to lower levels of interest earned on short-term funds, as the capital markets experienced significant distress beginning in the second quarter of 2008.
Net realized loss on investment securities totaled $299,937 for the three months ended March 31, 2009, compared with net realized gain of $118,569 for the corresponding period in 2008. The 2009 net loss, which included impairment charges totaling $344,578 on certain equity and equity method investments in the Company s portfolio that were deemed to be other than temporarily impaired, and was partially offset by net realized gains on sales of investments of $44,641. Management has determined that the unrealized losses from remaining fixed income and equity securities at March 31, 2009 are temporary in nature. The net realized gains in 2008 resulted primarily from the sale of equity securities and other investments in the Company s investment portfolio.
At March 31, 2009, the total reserves for claims were $38,988,000. Of that total, $6,452,644 was reserved for specific claims, and $32,535,356 was reserved for claims for which the Company had no notice. Because of the uncertainty of future claims, changes in economic conditions and the fact that many claims do not materialize for several years, reserve estimates are subject to variability.
Salaries, employee benefits and payroll taxes were $5,138,176 and $5,497,936 for the first quarters of 2009 and 2008, respectively. Salaries and related costs decreased about $360,000 for the March 31, 2009 quarter. On a consolidated basis, salaries, employee benefits and payroll taxes as a percentage of total revenues were 27.5% and 26.4% for the three months ended March 31, 2009 and 2008, respectively. The title insurance segment s total salaries, employee benefits and payroll taxes accounted for 85.7% and 84.0% of the total consolidated amount for the three months ended March 31, 2009 and 2008, respectively.
Cash Flows: Cash flow used in operating activities for the three months ended March 31, 2009 amounted to $2,100,591, compared with $934,602 for the same three-month period of 2008. The increase in net cash used in operating activities was primarily the result of the timing of payments for accounts payable compared with the prior year period and an increase in receivables.
Read the The complete ReportITIC is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp.
