Investors Title Profit Rises as Premium Growth Accelerates
Second-quarter revenue climbed 17.5% to $86.5 million as real-estate activity strengthened.
Investors Title Co. (ITIC), a title insurance provider, reported an 18.7% increase in second-quarter net income to $14.6 million, while diluted earnings rose to $7.73 a share from $6.48 a share a year earlier.
Revenue growth accelerated after an uneven stretch, rising from 6.1% in the third quarter of 2024 and a 1.6% decline in the fourth quarter. Second-quarter revenue also increased 35.1% sequentially from $64.0 million in the first quarter.
The improvement centered on net premiums written, which climbed 23.9% from a year earlier to $67.5 million and rose 32.6% sequentially. Gains were driven by increased real-estate activity and expansion initiatives.
Both distribution channels contributed. Direct premiums rose 24.8% to $19.8 million, while agency premiums increased 23.6% to $47.8 million. The direct channel accounted for 29.2% of premiums, up from 27.9% in the first quarter, as the agency share eased to 70.8%.
Results outside the core premium business were mixed. Escrow and other title-related fees rose 4.8% to $6.0 million, while non-title services revenue fell 6.8% to $5.1 million, reversing the growth recorded in each of the final three quarters of 2024.
Operating expenses increased 15.9% to $67.1 million, trailing revenue growth. Agent commissions rose 22.6% to $35.6 million, and the provision for claims increased 33.8% to $2.8 million.
Investment gains supplied much of the profit lift, more than doubling to $4.8 million from $2.1 million and rising from $0.5 million in the first quarter. Pretax income increased 23.1% to $19.4 million, while adjusted pretax income excluding those gains rose 7.0% to $14.7 million. The adjusted pretax margin narrowed to about 17.9% from 19.1%, even as the reported pretax margin expanded to about 22.5% from 21.5%.
For the first half, revenue increased 15.6% to $150.5 million as operating expenses rose 11.8% to $123.4 million, lifting net income to $20.7 million from $15.4 million. The quarter's stronger reported profit still rested substantially on investment gains.