Investors Title's Investment Losses Cut Third-Quarter Profit

The Tip Desk · November 11, 2026 · 3 min read

Net income was $9.4 million, or $4.97 a share, as a $1.7 million net investment loss reversed prior-year gains.

Investors Title Company (ITIC), the Chapel Hill, N.C., title insurer, reported net income of $9.4 million, or $4.97 a share, for the third quarter ended September 30, 2026, down from $12.2 million, or $6.45 a share, a year earlier.

Revenues rose 12.1% to $81.9 million from $73.0 million in the year-ago quarter, a slower year-over-year pace than the 17.5% increase to $86.5 million in the second quarter. The company said the lift came primarily from title insurance premiums and related fees. Net premiums written and escrow and other title-related fees increased $13.0 million, or 21.2%, reflecting higher real estate transaction volumes and contributions from ongoing expansion initiatives. Net premiums written were $68.2 million, of which $19.6 million, or 28.7%, was direct and $48.6 million, or 71.3%, was agency. Escrow and other title-related fees were $6.0 million.

That title-fee growth did not carry through to profit. Revenue growth was partially offset by net investment losses of $1.7 million, compared with net investment gains of $2.1 million a year earlier. Current-year investment losses primarily reflected impairment charges on certain fixed maturity securities amid higher interest rates, as well as lower realized gains on equity investments. In the second quarter, net investment gains had added $2.7 million to the year-over-year revenue comparison. Non-title services revenue declined $1.3 million, primarily due to lower like-kind exchange activity. Other revenue was $0.2 million.

Operating expenses increased 21.7% to $70.5 million from $57.9 million a year earlier, after a 15.9% rise to $67.1 million in the second quarter. The company said the increase primarily reflected higher agent commissions, claims provisions, and personnel expenses. Commissions to agents were $36.8 million and rose commensurate with growth in agency premiums. The provision for claims was $4.1 million and rose primarily due to higher claims experience. Personnel expenses were $19.2 million and increased primarily as a result of geographic expansion and merit increases. Office and technology expenses were $4.7 million and other expenses $5.5 million; the company said those categories remained relatively consistent with the prior-year period.

Income before income taxes decreased to $11.4 million from $15.1 million a year earlier, primarily reflecting the unfavorable year-over-year change in net investment gains and losses. Excluding those investment-related impacts, adjusted income before income taxes (non-GAAP) remained relatively unchanged at $13.1 million, compared with $13.0 million in the prior-year period. Adjusted revenues (non-GAAP) were $83.6 million after adding back the $1.7 million of net investment losses.

Chairman J. Allen Fine said higher claims experience and investment-related volatility decreased quarterly earnings, while the underlying business continued to perform well.

For the nine months ended September 30, 2026, net income increased 8.9% to $30.1 million, or $15.91 a share, from $27.7 million, or $14.59 a share, a year earlier. Nine-month revenues increased 14.4% to $232.4 million, compared with $203.2 million. Operating expenses increased 15.2% to $193.8 million, compared with $168.3 million. Income before income taxes increased 10.4% to $38.6 million, compared with $34.9 million. Adjusted income before income taxes (non-GAAP) increased 9.2% to $34.9 million, compared with $32.0 million. The company said year-to-date results reflected many of the same factors affecting third-quarter performance, including higher title-related revenues, increased claims provisions, and higher operating expenses, as well as the absence of certain gains recognized in other revenue during the prior year and changes in net investment gains and losses.