CHAPEL HILL, N.C.--(BUSINESS WIRE)--

Investors Title Company (NASDAQ:ITIC) today announced its results for the quarter ended March 31, 2017. The Company reported a record first quarter net income attributable to the Company of $4,476,055, or $2.36 per diluted share, compared with $1,814,040, or $0.93 per diluted share, for the prior year period.

Revenues for the quarter increased 52.0% to a new first quarter record of $37.8 million, compared with $24.9 million in the prior year. Net premiums written benefitted from higher transaction volumes, favorable rate changes in certain markets, and rising real estate values. Despite reductions in refinance activity, higher levels of home sales drove an increase in transaction volumes in each of the Company’s primary markets. In addition, premiums benefitted from the Company’s acquisition of University Title in the fourth quarter of 2016. Other revenues increased 44.2%, primarily due to certain non-premium charges which typically fluctuate with net premiums written.

Operating expenses increased 40.7% versus the prior year period, mainly due to increases in agent commissions commensurate with the increase in premium volumes, as well as the inclusion of operating expenses for University Title in the operating results. In addition, payroll expenses increased as a result of higher levels of incentive compensation and normal inflationary increases. The provision for claims was higher in the current quarter primarily due to more favorable claims experience recognized in the prior year period. All other expense categories increased in line with inflation.

Chairman J. Allen Fine commented, “The housing market continues to benefit from an improving economy and relatively favorable interest rates. Record levels of revenues, along with a higher mix of direct business, continuation of favorable claims experience, and stable overhead expenses resulted in the strongest first quarter earnings results in the Company’s history. With the benefit of improving economic conditions and favorable interest rates, we are optimistic that the strong housing market will drive higher levels of home sales throughout the year and in turn support another year of strong performance for Investors Title.”

Investors Title Company’s subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services and services in connection with tax-deferred exchanges of like-kind property.

Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, any statements regarding the Company’s expected performance for this year, future home price fluctuations, changes in home purchase or refinance activity and the mix thereof, interest rate changes, expansion of the Company’s market presence, enhancing competitive strengths, positive development in housing affordability, unemployment or overall economic conditions or statements regarding our actuarial assumptions and the application of recent historical claims experience to future periods. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: the cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience; declines in the performance of the Company’s investments; government regulation; changes in the economy; loss of agency relationships, or significant reductions in agent-originated business; difficulties managing growth, whether organic or through acquisitions and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission, and in subsequent filings.

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