QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
North Carolina | 56-1110199 | |||||||||||||||||||
(State of incorporation) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, no par value | ITIC | The Nasdaq Stock Market LLC | ||||||||||||
Rights to Purchase Series A Junior Participating Preferred Stock | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||||||||||||||
Non-accelerated filer | ☐ | |||||||||||||||||||||||||
Smaller reporting company | ☒ | |||||||||||||||||||||||||
Emerging growth company | ☐ |
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements: | |||||||
Consolidated Balance Sheets as of | ||||||||
Consolidated Statements of | ||||||||
Consolidated Statements of Comprehensive Income For the Three | ||||||||
Consolidated Statements of Stockholders’ Equity For the | ||||||||
Consolidated Statements of Cash Flows For the | ||||||||
PART II. | OTHER INFORMATION | |||||||
Legal Proceedings | ||||||||
Risk Factors | ||||||||
Item 3. | Defaults Upon Senior Securities | |||||||
Item 4. | Mine Safety Disclosures | |||||||
Item 5. | Other Information | |||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||||||
Assets: | ||||||||||||||||||
Investments in securities: | ||||||||||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: September 30, 2017: $97,840,656; December 31, 2016: $100,162,357) | $ | 100,730,446 | $ | 101,934,077 | ||||||||||||||
Equity securities, available-for-sale, at fair value (amortized cost: September 30, 2017: $25,927,969; December 31, 2016: $24,836,032) | 45,116,461 | 41,179,259 | ||||||||||||||||
Assets | Assets | |||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 37,310 | $ | 37,168 | |||||||||||||
Investments: | Investments: | |||||||||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: March 31, 2022: $66,209; December 31, 2021: $75,511) | Fixed maturity securities, available-for-sale, at fair value (amortized cost: March 31, 2022: $66,209; December 31, 2021: $75,511) | 67,725 | 79,791 | |||||||||||||||
Equity securities, at fair value (cost: March 31, 2022: $28,484; December 31, 2021: $29,478) | Equity securities, at fair value (cost: March 31, 2022: $28,484; December 31, 2021: $29,478) | 69,945 | 76,853 | |||||||||||||||
Short-term investments | 20,692,763 | 6,558,840 | Short-term investments | 58,555 | 45,930 | |||||||||||||
Other investments | 11,514,780 | 11,181,531 | Other investments | 20,217 | 20,298 | |||||||||||||
Total investments | 178,054,450 | 160,853,707 | Total investments | 216,442 | 222,872 | |||||||||||||
Cash and cash equivalents | 30,890,785 | 27,928,472 | ||||||||||||||||
Premium and fees receivable | 10,260,167 | 8,654,161 | ||||||||||||||||
Premiums and fees receivable | Premiums and fees receivable | 23,850 | 22,953 | |||||||||||||||
Accrued interest and dividends | 1,323,598 | 1,035,152 | Accrued interest and dividends | 1,000 | 817 | |||||||||||||
Prepaid expenses and other assets | 9,211,784 | 9,456,523 | ||||||||||||||||
Prepaid expenses and other receivables | Prepaid expenses and other receivables | 11,618 | 11,721 | |||||||||||||||
Property, net | 10,029,847 | 8,753,466 | Property, net | 13,413 | 13,033 | |||||||||||||
Goodwill and other intangible assets | 11,785,945 | 12,256,641 | ||||||||||||||||
Current income taxes receivable | 1,641,144 | — | ||||||||||||||||
Goodwill and other intangible assets, net | Goodwill and other intangible assets, net | 15,621 | 15,951 | |||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 7,321 | 5,202 | |||||||||||||||
Other assets | Other assets | 1,822 | 1,771 | |||||||||||||||
Total Assets | $ | 253,197,720 | $ | 228,938,122 | Total Assets | $ | 328,397 | $ | 331,488 | |||||||||
Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | |||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||
Reserves for claims | $ | 35,207,000 | $ | 35,305,000 | ||||||||||||||
Reserve for claims | Reserve for claims | $ | 36,366 | $ | 36,754 | |||||||||||||
Accounts payable and accrued liabilities | 31,462,305 | 26,146,480 | Accounts payable and accrued liabilities | 34,486 | 43,868 | |||||||||||||
Operating lease liabilities | Operating lease liabilities | 7,453 | 5,329 | |||||||||||||||
Current income taxes payable | — | 1,232,432 | Current income taxes payable | 6,164 | 3,329 | |||||||||||||
Deferred income taxes, net | 14,397,180 | 11,118,256 | Deferred income taxes, net | 11,436 | 13,121 | |||||||||||||
Total liabilities | 81,066,485 | 73,802,168 | Total liabilities | 95,905 | 102,401 | |||||||||||||
Commitments and Contingencies | — | — | Commitments and Contingencies | — | — | |||||||||||||
Stockholders’ Equity: | Stockholders’ Equity: | |||||||||||||||||
Preferred stock (1,000,000 authorized shares; no shares issued) | — | — | ||||||||||||||||
Common stock – no par value (10,000,000 authorized shares; 1,887,026 and 1,884,283 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively, excluding in each period 291,676 shares of common stock held by the Company) | 1 | 1 | ||||||||||||||||
Preferred stock (1,000 authorized shares; no shares issued) | Preferred stock (1,000 authorized shares; no shares issued) | — | — | |||||||||||||||
Common stock – no par value (10,000 authorized shares; 1,897 and 1,895 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively, excluding in each period 292 shares of common stock held by the Company) | Common stock – no par value (10,000 authorized shares; 1,897 and 1,895 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively, excluding in each period 292 shares of common stock held by the Company) | — | — | |||||||||||||||
Retained earnings | 157,675,541 | 143,283,621 | Retained earnings | 231,274 | 225,861 | |||||||||||||
Accumulated other comprehensive income | 14,375,694 | 11,761,447 | Accumulated other comprehensive income | 1,218 | 3,226 | |||||||||||||
Total stockholders’ equity attributable to the Company | 172,051,236 | 155,045,069 | ||||||||||||||||
Noncontrolling interests | 79,999 | 90,885 | ||||||||||||||||
Total stockholders' equity | 172,131,235 | 155,135,954 | Total stockholders' equity | 232,492 | 229,087 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 253,197,720 | $ | 228,938,122 | Total Liabilities and Stockholders’ Equity | $ | 328,397 | $ | 331,488 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | ||||||||||||||||||||||||
Revenues: | Revenues: | ||||||||||||||||||||||||||||
Net premiums written | $ | 36,612,558 | $ | 36,306,522 | $ | 102,918,454 | $ | 87,357,972 | Net premiums written | $ | 63,125 | $ | 61,477 | ||||||||||||||||
Investment income – interest and dividends | 1,087,054 | 1,160,983 | 3,297,634 | 3,478,999 | |||||||||||||||||||||||||
Net realized gain on investments | 803,938 | 439,326 | 990,118 | 574,328 | |||||||||||||||||||||||||
Escrow and other title-related fees | Escrow and other title-related fees | 5,064 | 2,798 | ||||||||||||||||||||||||||
Non-title services | Non-title services | 2,426 | 2,078 | ||||||||||||||||||||||||||
Interest and dividends | Interest and dividends | 915 | 1,016 | ||||||||||||||||||||||||||
Other investment income | Other investment income | 1,337 | 941 | ||||||||||||||||||||||||||
Net realized investment gains | Net realized investment gains | 1,747 | 321 | ||||||||||||||||||||||||||
Changes in the estimated fair value of equity security investments | Changes in the estimated fair value of equity security investments | (5,915) | 3,239 | ||||||||||||||||||||||||||
Other | 4,633,915 | 3,094,874 | 13,864,170 | 8,280,139 | Other | 299 | 208 | ||||||||||||||||||||||
Total Revenues | 43,137,465 | 41,001,705 | 121,070,376 | 99,691,438 | Total Revenues | 68,998 | 72,078 | ||||||||||||||||||||||
Operating Expenses: | Operating Expenses: | ||||||||||||||||||||||||||||
Commissions to agents | 17,641,272 | 18,739,151 | 50,569,972 | 45,946,379 | Commissions to agents | 29,857 | 30,542 | ||||||||||||||||||||||
Provision (benefit) for claims | 1,854,493 | (1,067,853 | ) | 2,714,717 | (403,982 | ) | |||||||||||||||||||||||
Salaries, employee benefits and payroll taxes | 9,820,578 | 8,300,823 | 29,464,824 | 22,945,972 | |||||||||||||||||||||||||
Office occupancy and operations | 2,309,575 | 1,496,948 | 6,445,880 | 4,526,710 | |||||||||||||||||||||||||
Business development | 639,923 | 608,532 | 1,987,028 | 1,695,180 | |||||||||||||||||||||||||
Filing fees, franchise and local taxes | 203,912 | 191,574 | 935,476 | 688,731 | |||||||||||||||||||||||||
Premium and retaliatory taxes | 673,126 | 673,551 | 1,918,951 | 1,559,631 | |||||||||||||||||||||||||
Professional and contract labor fees | 447,651 | 523,504 | 1,375,291 | 1,599,603 | |||||||||||||||||||||||||
Other | 630,320 | 157,308 | 1,944,419 | 629,539 | |||||||||||||||||||||||||
Provision for claims | Provision for claims | 176 | 1,591 | ||||||||||||||||||||||||||
Personnel expenses | Personnel expenses | 21,254 | 16,153 | ||||||||||||||||||||||||||
Office and technology expenses | Office and technology expenses | 4,368 | 2,742 | ||||||||||||||||||||||||||
Other expenses | Other expenses | 5,550 | 3,735 | ||||||||||||||||||||||||||
Total Operating Expenses | 34,220,850 | 29,623,538 | 97,356,558 | 79,187,763 | Total Operating Expenses | 61,205 | 54,763 | ||||||||||||||||||||||
Income before Income Taxes | 8,916,615 | 11,378,167 | 23,713,818 | 20,503,675 | Income before Income Taxes | 7,793 | 17,315 | ||||||||||||||||||||||
Provision for Income Taxes | 2,990,000 | 3,249,000 | 7,647,000 | 6,040,000 | Provision for Income Taxes | 1,608 | 3,492 | ||||||||||||||||||||||
Net Income | 5,926,615 | 8,129,167 | 16,066,818 | 14,463,675 | Net Income | $ | 6,185 | $ | 13,823 | ||||||||||||||||||||
Net (Gain) Loss Attributable to Noncontrolling Interests | (158 | ) | (2,228 | ) | 10,886 | 6,684 | |||||||||||||||||||||||
Net Income Attributable to the Company | $ | 5,926,457 | $ | 8,126,939 | $ | 16,077,704 | $ | 14,470,359 | |||||||||||||||||||||
Basic Earnings per Common Share | $ | 3.14 | $ | 4.30 | $ | 8.52 | $ | 7.55 | Basic Earnings per Common Share | $ | 3.26 | $ | 7.30 | ||||||||||||||||
Weighted Average Shares Outstanding – Basic | 1,887,103 | 1,888,870 | 1,886,474 | 1,915,468 | Weighted Average Shares Outstanding – Basic | 1,896 | 1,894 | ||||||||||||||||||||||
Diluted Earnings per Common Share | $ | 3.13 | $ | 4.29 | $ | 8.48 | $ | 7.53 | Diluted Earnings per Common Share | $ | 3.25 | $ | 7.29 | ||||||||||||||||
Weighted Average Shares Outstanding – Diluted | 1,896,229 | 1,895,592 | 1,895,957 | 1,921,999 | Weighted Average Shares Outstanding – Diluted | 1,903 | 1,897 | ||||||||||||||||||||||
Cash Dividends Paid per Common Share | $ | 0.40 | $ | 0.20 | $ | 0.95 | $ | 0.52 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 5,926,615 | $ | 8,129,167 | $ | 16,066,818 | $ | 14,463,675 | |||||||
Other comprehensive income, before tax: | |||||||||||||||
Amortization of unrecognized loss | 2,153 | 2,235 | 6,459 | 6,705 | |||||||||||
Unrealized gains (losses) on investments arising during the period | 1,878,509 | (769,328 | ) | 4,940,599 | 3,518,286 | ||||||||||
Reclassification adjustment for sales of securities included in net income | (803,938 | ) | (545,925 | ) | (976,888 | ) | (785,517 | ) | |||||||
Reclassification adjustment for write-downs of securities included in net income | — | 118,703 | — | 233,941 | |||||||||||
Other comprehensive income (loss), before tax | 1,076,724 | (1,194,315 | ) | 3,970,170 | 2,973,415 | ||||||||||
Income tax expense related to postretirement health benefits | 732 | 759 | 2,194 | 2,279 | |||||||||||
Income tax expense (benefit) related to unrealized gains (losses) on investments arising during the period | 642,992 | (280,327 | ) | 1,687,783 | 1,193,241 | ||||||||||
Income tax benefit related to reclassification adjustment for sales of securities included in net income | (274,419 | ) | (185,316 | ) | (334,054 | ) | (268,548 | ) | |||||||
Income tax expense related to reclassification adjustment for write-downs of securities included in net income | — | 40,555 | — | 79,900 | |||||||||||
Net income tax expense (benefit) on other comprehensive income (loss) | 369,305 | (424,329 | ) | 1,355,923 | 1,006,872 | ||||||||||
Other comprehensive income (loss) | 707,419 | (769,986 | ) | 2,614,247 | 1,966,543 | ||||||||||
Comprehensive Income | $ | 6,634,034 | $ | 7,359,181 | $ | 18,681,065 | $ | 16,430,218 | |||||||
Comprehensive (gain) loss attributable to noncontrolling interests | (158 | ) | (2,228 | ) | 10,886 | 6,684 | |||||||||
Comprehensive Income Attributable to the Company | $ | 6,633,876 | $ | 7,356,953 | $ | 18,691,951 | $ | 16,436,902 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net income | $ | 6,185 | $ | 13,823 | ||||||||||
Other comprehensive loss, before tax: | ||||||||||||||
Accumulated postretirement benefit obligation adjustment | 219 | — | ||||||||||||
Net unrealized losses on investments arising during the period | (2,764) | (750) | ||||||||||||
Reclassification adjustment for sale of securities included in net income | — | (23) | ||||||||||||
Other comprehensive loss, before tax | (2,545) | (773) | ||||||||||||
Income tax expense related to postretirement health benefits | 46 | — | ||||||||||||
Income tax benefit related to net unrealized losses on investments arising during the period | (583) | (158) | ||||||||||||
Income tax benefit related to reclassification adjustment for sale of securities included in net income | — | (5) | ||||||||||||
Net income tax benefit on other comprehensive loss | (537) | (163) | ||||||||||||
Other comprehensive loss | (2,008) | (610) | ||||||||||||
Comprehensive Income | $ | 4,177 | $ | 13,213 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Stockholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, January 1, 2016 | 1,949,797 | $ | 1 | $ | 131,186,866 | $ | 11,483,015 | $ | 107,198 | $ | 142,777,080 | |||||||||||
Net income attributable to the Company | 14,470,359 | 14,470,359 | ||||||||||||||||||||
Dividends paid ($0.52 per share) | (993,534 | ) | (993,534 | ) | ||||||||||||||||||
Repurchases of common stock | (66,803 | ) | (6,219,670 | ) | (6,219,670 | ) | ||||||||||||||||
Exercise of stock appreciation rights | 1,289 | (200 | ) | (200 | ) | |||||||||||||||||
Share-based compensation expense related to stock appreciation rights | 99,755 | 99,755 | ||||||||||||||||||||
Amortization related to postretirement health benefits | 4,426 | 4,426 | ||||||||||||||||||||
Net unrealized gain on investments | 1,962,117 | 1,962,117 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | (6,684 | ) | (6,684 | ) | ||||||||||||||||||
Purchase of noncontrolling interest of subsidiary | (8,646 | ) | (8,646 | ) | ||||||||||||||||||
Additional paid-in capital from purchase of noncontrolling interest of subsidiary | (496 | ) | (496 | ) | ||||||||||||||||||
Income tax benefit from share-based compensation | 32,292 | 32,292 | ||||||||||||||||||||
Balance, September 30, 2016 | 1,884,283 | $ | 1 | $ | 138,575,372 | $ | 13,449,558 | $ | 91,868 | $ | 152,116,799 | |||||||||||
Balance, January 1, 2017 | 1,884,283 | $ | 1 | $ | 143,283,621 | $ | 11,761,447 | $ | 90,885 | $ | 155,135,954 | |||||||||||
Net income attributable to the Company | 16,077,704 | 16,077,704 | ||||||||||||||||||||
Dividends paid ($0.95 per share) | (1,792,430 | ) | (1,792,430 | ) | ||||||||||||||||||
Repurchases of common stock | (300 | ) | (49,604 | ) | (49,604 | ) | ||||||||||||||||
Exercise of stock appreciation rights | 3,043 | (737 | ) | (737 | ) | |||||||||||||||||
Share-based compensation expense related to stock appreciation rights | 156,987 | 156,987 | ||||||||||||||||||||
Amortization related to postretirement health benefits | 4,265 | 4,265 | ||||||||||||||||||||
Net unrealized gain on investments | 2,609,982 | 2,609,982 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | (10,886 | ) | (10,886 | ) | ||||||||||||||||||
Balance, September 30, 2017 | 1,887,026 | $ | 1 | $ | 157,675,541 | $ | 14,375,694 | $ | 79,999 | $ | 172,131,235 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
Balance, December 31, 2020 | 1,892 | $ | — | $ | 196,096 | $ | 4,326 | $ | 200,422 | ||||||||||||||||||||
Net income | 13,823 | 13,823 | |||||||||||||||||||||||||||
Dividends paid ($0.44 per share) | (832) | (832) | |||||||||||||||||||||||||||
Exercise of stock appreciation rights | 2 | (1) | (1) | ||||||||||||||||||||||||||
Share-based compensation expense related to stock appreciation rights | 71 | 71 | |||||||||||||||||||||||||||
Net unrealized loss on investments | (610) | (610) | |||||||||||||||||||||||||||
Balance, March 31, 2021 | 1,894 | $ | — | $ | 209,157 | $ | 3,716 | $ | 212,873 | ||||||||||||||||||||
Balance, December 31, 2021 | 1,895 | $ | — | $ | 225,861 | $ | 3,226 | $ | 229,087 | ||||||||||||||||||||
Net income | 6,185 | 6,185 | |||||||||||||||||||||||||||
Dividends paid ($0.46 per share) | (873) | (873) | |||||||||||||||||||||||||||
Exercise of stock appreciation rights | 2 | (1) | (1) | ||||||||||||||||||||||||||
Share-based compensation expense related to stock appreciation rights | 102 | 102 | |||||||||||||||||||||||||||
Accumulated postretirement benefit obligation adjustment | 173 | 173 | |||||||||||||||||||||||||||
Net unrealized loss on investments | (2,181) | (2,181) | |||||||||||||||||||||||||||
Balance, March 31, 2022 | 1,897 | $ | — | $ | 231,274 | $ | 1,218 | $ | 232,492 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Operating Activities | ||||||||||||||
Net income | $ | 6,185 | $ | 13,823 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation | 524 | 430 | ||||||||||||
Amortization of investments, net | 162 | 285 | ||||||||||||
Amortization of other intangible assets, net | 330 | 134 | ||||||||||||
Share-based compensation expense related to stock appreciation rights | 102 | 71 | ||||||||||||
Net gain on disposals of property | (28) | (8) | ||||||||||||
Net realized investment gains | (1,747) | (321) | ||||||||||||
Net change in estimated fair value of equity security investments | 5,915 | (3,239) | ||||||||||||
Net earnings from other investments | (1,207) | (594) | ||||||||||||
Provision for claims | 176 | 1,591 | ||||||||||||
(Benefit) provision for deferred income taxes | (1,148) | 753 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Increase in premium and fees receivable | (897) | (761) | ||||||||||||
Increase in other assets | (131) | (2,064) | ||||||||||||
(Increase) decrease in operating lease right-of-use assets | (2,119) | 154 | ||||||||||||
Decrease in accounts payable and accrued liabilities | (9,163) | (3,982) | ||||||||||||
Increase (decrease) in operating lease liabilities | 2,124 | (160) | ||||||||||||
Increase in current income taxes payable | 2,835 | 2,739 | ||||||||||||
Payments of claims, net of recoveries | (564) | (613) | ||||||||||||
Net cash provided by operating activities | 1,349 | 8,238 | ||||||||||||
Investing Activities | ||||||||||||||
Purchases of equity securities | (102) | (976) | ||||||||||||
Purchases of short-term investments | (12,624) | (16,578) | ||||||||||||
Purchases of other investments | (275) | (286) | ||||||||||||
Proceeds from sales and maturities of fixed maturity securities | 9,140 | 13,660 | ||||||||||||
Proceeds from sales of equity securities | 2,842 | 4,831 | ||||||||||||
Proceeds from sales and maturities of short-term investments | — | 1,251 | ||||||||||||
Proceeds from sales and distributions of other investments | 1,562 | 1,534 | ||||||||||||
Purchases of property | (908) | (1,613) | ||||||||||||
Proceeds from the sale of property | 32 | 13 | ||||||||||||
Net (used in) provided by investing activities | (333) | 1,836 | ||||||||||||
Financing Activities | ||||||||||||||
Exercise of stock appreciation rights | (1) | (1) | ||||||||||||
Dividends paid | (873) | (832) | ||||||||||||
Net cash used in financing activities | (874) | (833) | ||||||||||||
Net Increase in Cash and Cash Equivalents | 142 | 9,241 | ||||||||||||
Cash and Cash Equivalents, Beginning of Period | 37,168 | 13,723 | ||||||||||||
Cash and Cash Equivalents, End of Period | $ | 37,310 | $ | 22,964 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income | $ | 16,066,818 | $ | 14,463,675 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 1,054,830 | 994,619 | |||||
Amortization of investments, net | 572,781 | 624,882 | |||||
Amortization related to postretirement benefits obligation | 6,459 | 6,705 | |||||
Amortization of other intangible assets, net | 707,696 | — | |||||
Share-based compensation expense related to stock appreciation rights | 156,987 | 99,755 | |||||
Excess tax benefits related to exercise of stock appreciation rights | 142,280 | 32,292 | |||||
Net gain on disposals of property | (15,828 | ) | (10,677 | ) | |||
Net realized gain on investments | (990,118 | ) | (574,328 | ) | |||
Net earnings from other investments | (1,251,871 | ) | (1,120,640 | ) | |||
Provision (benefit) for claims | 2,714,717 | (403,982 | ) | ||||
Provision for deferred income taxes | 1,923,000 | 4,040,000 | |||||
Changes in assets and liabilities: | |||||||
Increase in receivables | (1,606,006 | ) | (965,873 | ) | |||
(Increase) decrease in other assets | (43,707 | ) | 1,265,172 | ||||
Increase in current income taxes recoverable | (1,641,144 | ) | (1,261,289 | ) | |||
Increase (decrease) in accounts payable and accrued liabilities | 5,253,825 | (337,935 | ) | ||||
Decrease in current income taxes payable | (1,374,712 | ) | (210,355 | ) | |||
Payments of claims, net of recoveries | (2,812,717 | ) | (1,848,018 | ) | |||
Net cash provided by operating activities | 18,863,290 | 14,794,003 | |||||
Investing Activities | |||||||
Purchases of available-for-sale securities | (12,953,436 | ) | (15,066,182 | ) | |||
Purchases of short-term investments | (15,667,715 | ) | (1,890,826 | ) | |||
Purchases of other investments | (1,223,853 | ) | (1,974,275 | ) | |||
Purchase of noncontrolling interest of subsidiary | — | (9,142 | ) | ||||
Purchase of subsidiary | (175,000 | ) | — | ||||
Proceeds from sales and maturities of available-for-sale securities | 14,585,324 | 10,711,195 | |||||
Proceeds from sales and maturities of short-term investments | 1,535,773 | 4,830,935 | |||||
Proceeds from sales and distributions of other investments | 2,142,854 | 2,594,042 | |||||
Proceeds from sales of other assets | 13,230 | 10,647 | |||||
Purchases of property | (2,342,583 | ) | (1,742,225 | ) | |||
Proceeds from the sale of property | 27,200 | 64,155 | |||||
Net cash used in investing activities | (14,058,206 | ) | (2,471,676 | ) | |||
Financing Activities | |||||||
Repurchases of common stock | (49,604 | ) | (6,219,670 | ) | |||
Exercise of stock appreciation rights | (737 | ) | (200 | ) | |||
Dividends paid | (1,792,430 | ) | (993,534 | ) | |||
Net cash used in financing activities | (1,842,771 | ) | (7,213,404 | ) | |||
Net Increase in Cash and Cash Equivalents | 2,962,313 | 5,108,923 | |||||
Cash and Cash Equivalents, Beginning of Period | 27,928,472 | 21,790,068 | |||||
Cash and Cash Equivalents, End of Period | $ | 30,890,785 | $ | 26,898,991 |
Consolidated Statements of Cash Flows, continued | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental Disclosures: | ||||||||||||||
Cash Paid During the Year for: | ||||||||||||||
Income tax refund, net | $ | (79) | $ | — | ||||||||||
Non-Cash Investing and Financing Activities: | ||||||||||||||
Non-cash net unrealized loss on investments, net of deferred tax benefit of $583 and $163 for March 31, 2022 and 2021, respectively | $ | 2,181 | $ | 610 | ||||||||||
Adjustments to postretirement benefits obligation, net of deferred tax expense of $(46) and $0 for March 31, 2022 and 2021, respectively | $ | (173) | $ | — |
Consolidated Statements of Cash Flows, continued | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Supplemental Disclosures: | |||||||
Cash Paid During the Year for: | |||||||
Income tax payments, net | $ | 9,236,200 | $ | 3,736,100 | |||
Non Cash Investing and Financing Activities: | |||||||
Non cash net unrealized gain on investments, net of deferred tax provision of $(1,353,729) and $(1,004,593) for September 30, 2017 and 2016, respectively | $ | (2,609,982 | ) | $ | (1,962,117 | ) |
(in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Balance, beginning of period | $ | 36,754 | $ | 33,584 | |||||||
Provision charged to operations | 176 | 5,686 | |||||||||
Payments of claims, net of recoveries | (564) | (2,516) | |||||||||
Balance, end of period | $ | 36,366 | $ | 36,754 |
September 30, 2017 | December 31, 2016 | ||||||
Balance, beginning of period | $ | 35,305,000 | $ | 37,788,000 | |||
Provision, charged to operations | 2,714,717 | 242,953 | |||||
Payments of claims, net of recoveries | (2,812,717 | ) | (2,725,953 | ) | |||
Balance, end of period | $ | 35,207,000 | $ | 35,305,000 |
(in thousands, except percentages) | March 31, 2022 | % | December 31, 2021 | % | |||||||||||||||||||
Known title claims | $ | 3,910 | 10.8 | $ | 3,317 | 9.0 | |||||||||||||||||
IBNR | 32,456 | 89.2 | 33,437 | 91.0 | |||||||||||||||||||
Total reserve for claims | $ | 36,366 | 100.0 | $ | 36,754 | 100.0 |
September 30, 2017 | % | December 31, 2016 | % | ||||||||
Known title claims | $ | 4,875,038 | 13.8 | $ | 4,405,343 | 12.5 | |||||
IBNR | 30,331,962 | 86.2 | 30,899,657 | 87.5 | |||||||
Total loss reserves | $ | 35,207,000 | 100.0 | $ | 35,305,000 | 100.0 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||
Net income attributable to the Company | $ | 5,926,457 | $ | 8,126,939 | $ | 16,077,704 | $ | 14,470,359 | |||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amounts) | 2022 | 2021 | ||||||||||||||||||||||||||
Net income | Net income | $ | 6,185 | $ | 13,823 | ||||||||||||||||||||||||
Weighted average common shares outstanding – Basic | 1,887,103 | 1,888,870 | 1,886,474 | 1,915,468 | Weighted average common shares outstanding – Basic | 1,896 | 1,894 | ||||||||||||||||||||||
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) | 9,126 | 6,722 | 9,483 | 6,531 | Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) | 7 | 3 | ||||||||||||||||||||||
Weighted average common shares outstanding – Diluted | 1,896,229 | 1,895,592 | 1,895,957 | 1,921,999 | Weighted average common shares outstanding – Diluted | 1,903 | 1,897 | ||||||||||||||||||||||
Basic earnings per common share | $ | 3.14 | $ | 4.30 | $ | 8.52 | $ | 7.55 | Basic earnings per common share | $ | 3.26 | $ | 7.30 | ||||||||||||||||
Diluted earnings per common share | $ | 3.13 | $ | 4.29 | $ | 8.48 | $ | 7.53 | Diluted earnings per common share | $ | 3.25 | $ | 7.29 |
(in thousands, except weighted average exercise price and average remaining contractual term) | Number Of Shares | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||||||
Outstanding as of January 1, 2021 | 36 | $ | 139.16 | 4.38 | $ | 903 | |||||||||||||||||
SARs granted | 5 | 184.26 | |||||||||||||||||||||
SARs exercised | (6) | 106.71 | |||||||||||||||||||||
Outstanding as of December 31, 2021 | 35 | $ | 150.36 | 3.96 | $ | 1,643 | |||||||||||||||||
SARs granted | — | — | |||||||||||||||||||||
SARs exercised | (4) | 89.23 | |||||||||||||||||||||
Outstanding as of March 31, 2022 | 31 | $ | 158.22 | 4.02 | $ | 1,400 | |||||||||||||||||
Exercisable as of March 31, 2022 | 26 | $ | 161.73 | 3.76 | $ | 1,067 | |||||||||||||||||
Unvested as of March 31, 2022 | 5 | $ | 141.50 | 5.25 | $ | 333 |
Number Of Shares | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding as of January 1, 2016 | 22,000 | $ | 57.04 | 3.93 | $ | 945,055 | ||||||
SARs granted | 4,500 | 93.87 | ||||||||||
SARs exercised | (2,000 | ) | 32.00 | |||||||||
Outstanding as of December 31, 2016 | 24,500 | $ | 65.85 | 3.85 | $ | 836,640 | ||||||
SARs granted | 4,500 | 192.71 | ||||||||||
SARs exercised | (4,000 | ) | 36.38 | |||||||||
Outstanding as of September 30, 2017 | 25,000 | $ | 93.40 | 4.23 | $ | 2,203,100 | ||||||
Exercisable as of September 30, 2017 | 22,750 | $ | 83.58 | 4.00 | $ | 2,203,100 | ||||||
Unvested as of September 30, 2017 | 2,250 | $ | 192.71 | 6.63 | $ | — |
2017 | 2016 | ||
Expected Life in Years | 7.0 | 7.0 | |
Volatility | 26.2% | 28.9% | |
Interest Rate | 2.0% | 1.7% | |
Yield Rate | 1.0% | 1.0% |
Three Months Ended March 31, 2022 (in thousands) | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||||||||||
Insurance and other services revenues | $ | 73,065 | $ | 2,737 | $ | (4,888) | $ | 70,914 | |||||||||||||||
Investment loss | (1,628) | (2,035) | — | (3,663) | |||||||||||||||||||
Net realized gain on investments | 51 | 1,696 | — | 1,747 | |||||||||||||||||||
Total revenues | $ | 71,488 | $ | 2,398 | $ | (4,888) | $ | 68,998 | |||||||||||||||
Operating expenses | 63,188 | 2,753 | (4,736) | 61,205 | |||||||||||||||||||
Income (loss) before income taxes | $ | 8,300 | $ | (355) | $ | (152) | $ | 7,793 | |||||||||||||||
Total assets | $ | 275,729 | $ | 52,668 | $ | — | $ | 328,397 |
Three Months Ended March 31, 2021 (in thousands) | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||||||||||
Insurance and other services revenues | $ | 66,521 | $ | 2,338 | $ | (2,298) | $ | 66,561 | |||||||||||||||
Investment income | 4,396 | 800 | — | 5,196 | |||||||||||||||||||
Net realized gain on investments | 232 | 89 | — | 321 | |||||||||||||||||||
Total revenues | $ | 71,149 | $ | 3,227 | $ | (2,298) | $ | 72,078 | |||||||||||||||
Operating expenses | 54,530 | 2,385 | (2,152) | 54,763 | |||||||||||||||||||
Income before income taxes | $ | 16,619 | $ | 842 | $ | (146) | $ | 17,315 | |||||||||||||||
Total assets | $ | 237,082 | $ | 58,458 | $ | — | $ | 295,540 |
Three Months Ended September 30, 2017 | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||
Insurance and other services revenues | $ | 41,095,694 | $ | 1,985,959 | $ | (1,835,180 | ) | $ | 41,246,473 | ||||||
Investment income | 1,067,565 | 136,159 | (116,670 | ) | 1,087,054 | ||||||||||
Net realized gain on investments | 749,396 | 54,542 | — | 803,938 | |||||||||||
Total revenues | $ | 42,912,655 | $ | 2,176,660 | $ | (1,951,850 | ) | $ | 43,137,465 | ||||||
Operating expenses | 34,127,244 | 1,911,366 | (1,817,760 | ) | 34,220,850 | ||||||||||
Income before income taxes | $ | 8,785,411 | $ | 265,294 | $ | (134,090 | ) | $ | 8,916,615 | ||||||
Total assets | $ | 201,137,770 | $ | 52,059,950 | $ | — | $ | 253,197,720 |
Three Months Ended September 30, 2016 | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||
Insurance and other services revenues | $ | 38,285,551 | $ | 1,666,214 | $ | (550,369 | ) | $ | 39,401,396 | ||||||
Investment income | 1,079,118 | 140,201 | (58,336 | ) | 1,160,983 | ||||||||||
Net realized gain (loss) on investments | 439,501 | (175 | ) | — | 439,326 | ||||||||||
Total revenues | $ | 39,804,170 | $ | 1,806,240 | $ | (608,705 | ) | $ | 41,001,705 | ||||||
Operating expenses | 28,487,268 | 1,669,217 | (532,947 | ) | 29,623,538 | ||||||||||
Income before income taxes | $ | 11,316,902 | $ | 137,023 | $ | (75,758 | ) | $ | 11,378,167 | ||||||
Total assets | $ | 180,436,004 | $ | 42,672,325 | $ | — | $ | 223,108,329 |
Nine Months Ended September 30, 2017 | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||
Insurance and other services revenues | $ | 115,573,247 | $ | 5,495,136 | $ | (4,285,759 | ) | $ | 116,782,624 | ||||||
Investment income | 3,168,384 | 406,342 | (277,092 | ) | 3,297,634 | ||||||||||
Net realized gain on investments | 893,554 | 96,564 | — | 990,118 | |||||||||||
Total revenues | $ | 119,635,185 | $ | 5,998,042 | $ | (4,562,851 | ) | $ | 121,070,376 | ||||||
Operating expenses | 95,818,759 | 5,771,296 | (4,233,497 | ) | 97,356,558 | ||||||||||
Income before income taxes | $ | 23,816,426 | $ | 226,746 | $ | (329,354 | ) | $ | 23,713,818 | ||||||
Total assets | $ | 201,137,770 | $ | 52,059,950 | $ | — | $ | 253,197,720 |
Nine Months Ended September 30, 2016 | Title Insurance | All Other | Intersegment Eliminations | Total | |||||||||||
Insurance and other services revenues | $ | 92,055,531 | $ | 5,137,268 | $ | (1,554,688 | ) | $ | 95,638,111 | ||||||
Investment income | 3,206,093 | 424,578 | (151,672 | ) | 3,478,999 | ||||||||||
Net realized gain on investments | 513,624 | 60,704 | — | 574,328 | |||||||||||
Total revenues | $ | 95,775,248 | $ | 5,622,550 | $ | (1,706,360 | ) | $ | 99,691,438 | ||||||
Operating expenses | 75,766,983 | 4,923,205 | (1,502,425 | ) | 79,187,763 | ||||||||||
Income before income taxes | $ | 20,008,265 | $ | 699,345 | $ | (203,935 | ) | $ | 20,503,675 | ||||||
Total assets | $ | 180,436,004 | $ | 42,672,325 | $ | — | $ | 223,108,329 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Service cost – benefits earned during the year | $ | — | $ | — | |||||||
Interest cost on the projected benefit obligation | 6 | 7 | |||||||||
Amortization of unrecognized losses | — | — | |||||||||
Net periodic benefit cost | $ | 6 | $ | 7 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost – benefits earned during the year | $ | — | $ | 2,545 | $ | — | $ | 7,635 | |||||||
Interest cost on the projected benefit obligation | 9,217 | 8,781 | 27,651 | 26,343 | |||||||||||
Amortization of unrecognized losses | 2,153 | 2,235 | 6,459 | 6,705 | |||||||||||
Net periodic benefits costs | $ | 11,370 | $ | 13,561 | $ | 34,110 | $ | 40,683 |
As of March 31, 2022 (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Fixed maturity securities, available-for-sale, at fair value: | |||||||||||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 15,011 | $ | 224 | $ | — | $ | 15,235 | |||||||||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 40,620 | 806 | 56 | 41,370 | |||||||||||||||||||
Corporate debt securities | 10,578 | 707 | 165 | 11,120 | |||||||||||||||||||
Total | $ | 66,209 | $ | 1,737 | $ | 221 | $ | 67,725 |
As of September 30, 2017 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
Fixed maturities, available-for-sale, at fair value: | |||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 25,534,763 | $ | 480,036 | $ | 50,347 | $ | 25,964,452 | |||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 59,050,028 | 2,074,655 | 179,303 | 60,945,380 | |||||||||||
Corporate debt securities | 13,255,865 | 567,850 | 3,101 | 13,820,614 | |||||||||||
Total | $ | 97,840,656 | $ | 3,122,541 | $ | 232,751 | $ | 100,730,446 | |||||||
Equity securities, available-for-sale, at fair value: | |||||||||||||||
Common stocks | $ | 25,927,969 | $ | 19,221,955 | $ | 33,463 | $ | 45,116,461 | |||||||
Total | $ | 25,927,969 | $ | 19,221,955 | $ | 33,463 | $ | 45,116,461 | |||||||
Short-term investments: | |||||||||||||||
Commercial paper, money market funds and certificates of deposit | $ | 20,692,763 | $ | — | $ | — | $ | 20,692,763 | |||||||
Total | $ | 20,692,763 | $ | — | $ | — | $ | 20,692,763 |
As of December 31, 2021 (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Fixed maturity securities, available-for-sale, at fair value: | |||||||||||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 16,669 | $ | 922 | $ | — | $ | 17,591 | |||||||||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 41,753 | 2,453 | 2 | 44,204 | |||||||||||||||||||
Corporate debt securities | 17,089 | 955 | 48 | 17,996 | |||||||||||||||||||
Total | $ | 75,511 | $ | 4,330 | $ | 50 | $ | 79,791 |
As of December 31, 2016 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
Fixed maturities, available-for-sale, at fair value: | |||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 29,374,774 | $ | 440,628 | $ | 298,533 | $ | 29,516,869 | |||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 57,459,818 | 1,619,444 | 502,135 | 58,577,127 | |||||||||||
Corporate debt securities | 13,327,765 | 512,316 | — | 13,840,081 | |||||||||||
Total | $ | 100,162,357 | $ | 2,572,388 | $ | 800,668 | $ | 101,934,077 | |||||||
Equity securities, available-for-sale, at fair value: | |||||||||||||||
Common stocks | $ | 24,836,032 | $ | 16,392,210 | $ | 48,983 | $ | 41,179,259 | |||||||
Total | $ | 24,836,032 | $ | 16,392,210 | $ | 48,983 | $ | 41,179,259 | |||||||
Short-term investments: | |||||||||||||||
Money market funds and certificates of deposit | $ | 6,558,840 | $ | — | $ | — | $ | 6,558,840 | |||||||
Total | $ | 6,558,840 | $ | — | $ | — | $ | 6,558,840 |
Available-for-Sale | |||||||||||
(in thousands) | Amortized Cost | Estimated Fair Value | |||||||||
Due in one year or less | $ | 15,104 | $ | 15,165 | |||||||
Due one year through five years | 46,535 | 47,521 | |||||||||
Due five years through ten years | 3,747 | 3,811 | |||||||||
Due after ten years | 823 | 1,228 | |||||||||
Total | $ | 66,209 | $ | 67,725 |
Available-for-Sale | |||||||
Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 17,774,970 | $ | 17,870,218 | |||
Due one year through five years | 27,079,300 | 27,792,150 | |||||
Due five years through ten years | 50,998,490 | 52,546,163 | |||||
Due after ten years | 1,987,896 | 2,521,915 | |||||
Total | $ | 97,840,656 | $ | 100,730,446 |
2017 | 2016 | ||||||
Gross realized gains from securities: | |||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | $ | 139 | $ | 161 | |||
Corporate debt securities | — | 20 | |||||
Common stocks and nonredeemable preferred stocks | 1,232,330 | 880,647 | |||||
Auction rate securities | — | 74,996 | |||||
Total | $ | 1,232,469 | $ | 955,824 | |||
Gross realized losses from securities: | |||||||
General obligations of U.S. states, territories and political subdivisions | $ | — | $ | (533 | ) | ||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | (100 | ) | (1,085 | ) | |||
Common stocks and nonredeemable preferred stocks | (255,481 | ) | (168,688 | ) | |||
Other-than-temporary impairment of securities | — | (233,941 | ) | ||||
Total | $ | (255,581 | ) | $ | (404,247 | ) | |
Net realized gain from securities | $ | 976,888 | $ | 551,577 | |||
Net realized gain on other investments: | |||||||
Gains on other investments | $ | 13,230 | $ | 22,751 | |||
Total | $ | 13,230 | $ | 22,751 | |||
Net realized gain on investments | $ | 990,118 | $ | 574,328 |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
As of March 31, 2022 (in thousands) | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | $ | 2,383 | $ | (53) | $ | 1,101 | $ | (3) | $ | 3,484 | $ | (56) | |||||||||||||||||||||||
Corporate debt securities | 2,633 | (69) | 6,111 | (96) | 8,744 | (165) | |||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 5,016 | $ | (122) | $ | 7,212 | $ | (99) | $ | 12,228 | $ | (221) |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
As of September 30, 2017 | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | |||||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 8,356,815 | $ | (50,347 | ) | $ | — | $ | — | $ | 8,356,815 | $ | (50,347 | ) | |||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 12,694,205 | (115,937 | ) | 1,666,125 | (63,366 | ) | 14,360,330 | (179,303 | ) | ||||||||||||||
Corporate | 2,018,260 | (3,101 | ) | — | — | 2,018,260 | (3,101 | ) | |||||||||||||||
Total fixed income securities | $ | 23,069,280 | $ | (169,385 | ) | $ | 1,666,125 | $ | (63,366 | ) | $ | 24,735,405 | $ | (232,751 | ) | ||||||||
Equity securities | $ | 1,229,320 | $ | (33,463 | ) | $ | — | $ | — | $ | 1,229,320 | $ | (33,463 | ) | |||||||||
Total temporarily impaired securities | $ | 24,298,600 | $ | (202,848 | ) | $ | 1,666,125 | $ | (63,366 | ) | $ | 25,964,725 | $ | (266,214 | ) |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
As of December 31, 2021 (in thousands) | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | $ | — | $ | — | $ | 1,102 | $ | (2) | $ | 1,102 | $ | (2) | |||||||||||||||||||||||
Corporate debt securities | 8,493 | (13) | 6,203 | (35) | 14,696 | (48) | |||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 8,493 | $ | (13) | $ | 7,305 | $ | (37) | $ | 15,798 | $ | (50) |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
As of December 31, 2016 | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | |||||||||||||||||
General obligations of U.S. states, territories and political subdivisions | $ | 13,884,808 | $ | (298,533 | ) | $ | — | $ | — | $ | 13,884,808 | $ | (298,533 | ) | |||||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions | 16,161,906 | (502,135 | ) | — | — | 16,161,906 | (502,135 | ) | |||||||||||||||
Total fixed income securities | $ | 30,046,714 | $ | (800,668 | ) | $ | — | $ | — | $ | 30,046,714 | $ | (800,668 | ) | |||||||||
Equity securities | $ | 380,400 | $ | (48,983 | ) | $ | — | $ | — | $ | 380,400 | $ | (48,983 | ) | |||||||||
Total temporarily impaired securities | $ | 30,427,114 | $ | (849,651 | ) | $ | — | $ | — | $ | 30,427,114 | $ | (849,651 | ) |
As of March 31, 2022 (in thousands) | Cost | Estimated Fair Value | |||||||||
Equity securities, at fair value: | |||||||||||
Common stocks | $ | 28,484 | $ | 69,945 | |||||||
Total | $ | 28,484 | $ | 69,945 |
As of December 31, 2021 (in thousands) | Cost | Estimated Fair Value | |||||||||
Equity securities, at fair value: | |||||||||||
Common stocks | $ | 29,478 | $ | 76,853 | |||||||
Total | $ | 29,478 | $ | 76,853 |
(in thousands) | 2022 | 2021 | |||||||||
Gross realized gains from securities: | |||||||||||
Common stocks | $ | 1,747 | $ | 940 | |||||||
Total | $ | 1,747 | $ | 940 | |||||||
Gross realized losses from securities: | |||||||||||
Corporate debt securities | $ | — | (23) | ||||||||
Common stocks | — | (596) | |||||||||
Total | $ | — | $ | (619) | |||||||
Net realized gains from securities | $ | 1,747 | $ | 321 | |||||||
Gross realized gains (losses) on other investments: | |||||||||||
Gains on other investments | $ | — | $ | — | |||||||
Losses on other investments | — | — | |||||||||
Total | $ | — | $ | — | |||||||
Net realized investment gains | $ | 1,747 | $ | 321 |
Type of Investment | Balance Sheet Classification | Carrying Value | Estimated Fair Value | Maximum Potential Loss (a) | ||||||||||
Tax credit LPs | Other investments | $ | 905,179 | $ | 905,179 | $ | 1,325,000 | |||||||
Real estate LLCs or LPs | Other investments | 4,907,741 | 5,438,088 | 7,200,000 | ||||||||||
Small business investment LPs | Other investments | 3,699,694 | 3,612,437 | 9,400,000 | ||||||||||
Total | $ | 9,512,614 | $ | 9,955,704 | $ | 17,925,000 |
(in thousands) | Balance Sheet Classification | Carrying Value | Estimated Fair Value | Maximum Potential Loss (a) | ||||||||||||||||||||||
Tax credit LPs | Other investments | $ | 276 | $ | 276 | $ | 1,768 | |||||||||||||||||||
Real estate LLCs or LPs | Other investments | 3,887 | 5,098 | 5,408 | ||||||||||||||||||||||
Small business investment LPs | Other investments | 8,764 | 8,805 | 14,320 | ||||||||||||||||||||||
Total | $ | 12,927 | $ | 14,179 | $ | 21,496 |
(a) | Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. |
As of March 31, 2022 (in thousands) | Level 1 | Level 2 * | Level 3 | Total | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Obligations of U.S. states, territories and political subdivisions | $ | — | $ | 56,605 | $ | — | $ | 56,605 | |||||||||||||||
Corporate debt securities | — | 11,120 | — | 11,120 | |||||||||||||||||||
Total | $ | — | $ | 67,725 | $ | — | $ | 67,725 |
As of December 31, 2021 (in thousands) | Level 1 | Level 2 * | Level 3 | Total | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Obligations of U.S. states, territories and political subdivisions | $ | — | $ | 61,795 | $ | — | $ | 61,795 | |||||||||||||||
Corporate debt securities | — | 17,996 | — | 17,996 | |||||||||||||||||||
Total | $ | — | $ | 79,791 | $ | — | $ | 79,791 |
As of March 31, 2022 (in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 37,310 | $ | — | $ | — | $ | 37,310 | |||||||||||||||
Accrued interest and dividends | 1,000 | — | — | 1,000 | |||||||||||||||||||
Equity securities, at fair value: | |||||||||||||||||||||||
Common stocks | 69,945 | — | — | 69,945 | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Money market funds | 58,555 | — | — | 58,555 | |||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Equity investments in unconsolidated affiliates, measurement alternative | — | — | 8,908 | 8,908 | |||||||||||||||||||
Total | $ | 166,810 | $ | — | $ | 8,908 | $ | 175,718 |
As of December 31, 2021 (in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 37,168 | $ | — | $ | — | $ | 37,168 | |||||||||||||||
Accrued interest and dividends | 817 | — | — | 817 | |||||||||||||||||||
Equity securities, at fair value: | |||||||||||||||||||||||
Common stocks | 76,853 | — | — | 76,853 | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
Money market funds | 45,930 | — | — | 45,930 | |||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Equity investments in unconsolidated affiliates, measurement alternative | — | — | 8,688 | 8,688 | |||||||||||||||||||
Total | $ | 160,768 | $ | — | $ | 8,688 | $ | 169,456 |
As of September 30, 2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Short-term investments | $ | 20,692,763 | $ | — | $ | — | $ | 20,692,763 | |||||||
Equity securities: | |||||||||||||||
Common stock | 45,116,461 | — | — | 45,116,461 | |||||||||||
Fixed maturities: | |||||||||||||||
Obligations of U.S. states, territories and political subdivisions* | — | 86,909,832 | — | 86,909,832 | |||||||||||
Corporate debt securities* | — | 13,820,614 | — | 13,820,614 | |||||||||||
Total | $ | 65,809,224 | $ | 100,730,446 | $ | — | $ | 166,539,670 |
As of December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Short-term investments | $ | 6,558,840 | $ | — | $ | — | $ | 6,558,840 | |||||||
Equity securities: | |||||||||||||||
Common stock | 41,179,259 | — | — | 41,179,259 | |||||||||||
Fixed maturities: | |||||||||||||||
Obligations of U.S. states, territories and political subdivisions* | — | 88,093,996 | — | 88,093,996 | |||||||||||
Corporate debt securities* | — | 13,840,081 | — | 13,840,081 | |||||||||||
Total | $ | 47,738,099 | $ | 101,934,077 | $ | — | $ | 149,672,176 |
As of September 30, 2017 | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets: | |||||||||||||||||||
Cash | $ | 30,890,785 | $ | 30,890,785 | $ | 30,890,785 | $ | — | $ | — | |||||||||
Cost-basis investments | 5,342,495 | 5,698,667 | — | — | 5,698,667 | ||||||||||||||
Accrued interest and dividends | 1,323,598 | 1,323,598 | 1,323,598 | — | — | ||||||||||||||
Total | $ | 37,556,878 | $ | 37,913,050 | $ | 32,214,383 | $ | — | $ | 5,698,667 |
As of December 31, 2016 | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets: | |||||||||||||||||||
Cash | $ | 27,928,472 | $ | 27,928,472 | $ | 27,928,472 | $ | — | $ | — | |||||||||
Cost-basis investments | 4,244,402 | 4,497,665 | — | — | 4,497,665 | ||||||||||||||
Accrued interest and dividends | 1,035,152 | 1,035,152 | 1,035,152 | — | — | ||||||||||||||
Total | $ | 33,208,026 | $ | 33,461,289 | $ | 28,963,624 | $ | — | $ | 4,497,665 |
(in thousands) | Balance, January 1, 2022 | Amounts Impaired | Observable Changes | Purchases and Additional Commitments Paid | Sales, Returns of Capital and Other Reductions | Balance, March 31, 2022 | |||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||
Real Estate | $ | 4,987 | $ | — | $ | — | $ | — | $ | — | $ | 4,987 | |||||||||||||||||||||||
Equity investments in unconsolidated affiliates, measurement alternative | 8,688 | — | — | 250 | (30) | 8,908 | |||||||||||||||||||||||||||||
Total | $ | 13,675 | $ | — | $ | — | $ | 250 | $ | (30) | $ | 13,895 |
(in thousands) | Balance, January 1, 2021 | Amounts Impaired | Observable Changes | Purchases and Additional Commitments Paid | Sales, Returns of Capital and Other Reductions | Balance, December 31, 2021 | |||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||
Real Estate | $ | — | $ | — | $ | — | $ | 5,000 | $ | (13) | $ | 4,987 | |||||||||||||||||||||||
Equity investments in unconsolidated affiliates, measurement alternative | 8,741 | — | — | 1,543 | (1,596) | 8,688 | |||||||||||||||||||||||||||||
Total | $ | 8,741 | $ | — | $ | — | $ | 6,543 | $ | (1,609) | $ | 13,675 |
Financial Statement Classification, Consolidated Balance Sheets (unaudited) (in thousands) | As of March 31, 2022 | As of December 31, 2021 | ||||||
Other investments | $ | 6,322 | $ | 6,623 | ||||
Premium and fees receivable | $ | 853 | $ | 882 |
Financial Statement Classification, | As of September 30, 2017 | As of December 31, 2016 | ||||
Consolidated Balance Sheets | ||||||
Other investments | $ | 6,172,000 | $ | 6,437,000 | ||
Premiums and fees receivable | $ | 809,000 | $ | 56,000 |
Financial Statement Classification, Consolidated Statements of Operations (unaudited) (in thousands) | Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Net premiums written | $ | 6,584 | $ | 6,769 | ||||
Non-title services and other investment income | $ | 1,370 | $ | 752 | ||||
Commissions to agents | $ | 4,465 | $ | 4,474 |
Financial Statement Classification, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
Consolidated Statements of Income | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net premiums written | $ | 3,705,000 | $ | 4,513,000 | $ | 11,036,000 | $ | 10,993,000 | |||||||
Other income | $ | 642,000 | $ | 809,000 | $ | 1,689,000 | $ | 1,541,000 | |||||||
Commissions to agents | $ | 2,501,000 | $ | 3,062,000 | $ | 7,457,000 | $ | 7,465,000 |
(in thousands) | As of March 31, 2022 | As of December 31, 2021 | ||||||
Referral relationships | $ | 8,567 | $ | 8,567 | ||||
Non-compete agreements | 2,938 | 2,938 | ||||||
Tradename | 747 | 747 | ||||||
Total | 12,252 | 12,252 | ||||||
Accumulated amortization | (3,835) | (3,505) | ||||||
Identifiable intangible assets, net | $ | 8,417 | $ | 8,747 |
2017 | 2016 | |||||
Referral relationships | $ | 6,498,215 | $ | 6,416,215 | ||
Non-compete agreements | 1,405,685 | 1,405,685 | ||||
Tradename | 560,000 | 560,000 | ||||
Searcher network | 126,000 | — | ||||
Total | 8,589,900 | 8,381,900 | ||||
Accumulated amortization | (1,182,806 | ) | (475,110 | ) | ||
Identifiable intangible assets, net | $ | 7,407,094 | $ | 7,906,790 |
Year Ended: | |||
2017 | $ | 208,989 | |
2018 | 683,857 | ||
2019 | 610,524 | ||
2020 | 610,524 | ||
2021 | 603,191 | ||
Thereafter | 4,690,009 | ||
Total | $ | 7,407,094 |
Year Ended (in thousands) | |||||
2022 | $ | 953 | |||
2023 | 1,290 | ||||
2024 | 1,107 | ||||
2025 | 1,024 | ||||
2026 | 1,024 | ||||
Thereafter | 2,833 | ||||
Total | $ | 8,231 |
Three Months Ended March 31, 2022 (in thousands) | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||||||||
Beginning balance at January 1 | $ | 3,370 | $ | (144) | $ | 3,226 | |||||||||||
Other comprehensive (loss) income before reclassifications | (2,181) | 173 | (2,008) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | ||||||||||||||
Net current-period other comprehensive loss (income) | (2,181) | 173 | (2,008) | ||||||||||||||
Ending balance | $ | 1,189 | $ | 29 | $ | 1,218 |
Three Months Ended March 31, 2021 (in thousands) | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||||||||
Beginning balance at January 1 | $ | 4,470 | $ | (144) | $ | 4,326 | |||||||||||
Other comprehensive loss before reclassifications | (592) | — | (592) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (18) | — | (18) | ||||||||||||||
Net current-period other comprehensive loss | (610) | — | (610) | ||||||||||||||
Ending balance | $ | 3,860 | $ | (144) | $ | 3,716 |
Three Months Ended September 30, 2017 | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||
Beginning balance at July 1 | $ | 13,774,631 | $ | (106,356 | ) | $ | 13,668,275 | ||||
Other comprehensive income before reclassifications | 1,235,517 | — | 1,235,517 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (529,519 | ) | 1,421 | (528,098 | ) | ||||||
Net current-period other comprehensive income | 705,998 | 1,421 | 707,419 | ||||||||
Ending balance | $ | 14,480,629 | $ | (104,935 | ) | $ | 14,375,694 |
Three Months Ended September 30, 2016 | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||
Beginning balance at July 1 | $ | 14,331,320 | $ | (111,776 | ) | $ | 14,219,544 | ||||
Other comprehensive loss before reclassifications | (489,001 | ) | — | (489,001 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | (282,461 | ) | 1,476 | (280,985 | ) | ||||||
Net current-period other comprehensive (loss) income | (771,462 | ) | 1,476 | (769,986 | ) | ||||||
Ending balance | $ | 13,559,858 | $ | (110,300 | ) | $ | 13,449,558 |
Nine Months Ended September 30, 2017 | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||
Beginning balance at January 1 | $ | 11,870,647 | $ | (109,200 | ) | $ | 11,761,447 | ||||
Other comprehensive income before reclassifications | 3,252,816 | — | 3,252,816 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (642,834 | ) | 4,265 | (638,569 | ) | ||||||
Net current-period other comprehensive income | 2,609,982 | 4,265 | 2,614,247 | ||||||||
Ending balance | $ | 14,480,629 | $ | (104,935 | ) | $ | 14,375,694 |
Nine Months Ended September 30, 2016 | Unrealized Gains and Losses On Available-for-Sale Securities | Postretirement Benefits Plans | Total | ||||||||
Beginning balance at January 1 | $ | 11,597,741 | $ | (114,726 | ) | $ | 11,483,015 | ||||
Other comprehensive income before reclassifications | 2,325,045 | — | 2,325,045 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (362,928 | ) | 4,426 | (358,502 | ) | ||||||
Net current-period other comprehensive income | 1,962,117 | 4,426 | 1,966,543 | ||||||||
Ending balance | $ | 13,559,858 | $ | (110,300 | ) | $ | 13,449,558 |
Three Months Ended September 30, 2017 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||
Unrealized gains and losses on available-for-sale securities: | |||||
Net realized gain on investments | $ | 803,938 | |||
Other-than-temporary impairments | — | ||||
Total | $ | 803,938 | Net realized gain on investments | ||
Tax | (274,419 | ) | Provision for Income Taxes | ||
Net of Tax | $ | 529,519 | |||
Amortization related to postretirement benefit plans: | |||||
Prior year service cost | $ | — | |||
Unrecognized loss | (2,153 | ) | |||
Total | $ | (2,153 | ) | (a) | |
Tax | 732 | Provision for Income Taxes | |||
Net of Tax | $ | (1,421 | ) | ||
Reclassifications for the period | $ | 528,098 |
Three Months Ended September 30, 2016 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||
Unrealized gains and losses on available-for-sale securities: | |||||
Net realized gain on investments | $ | 545,925 | |||
Other-than-temporary impairments | (118,703 | ) | |||
Total | $ | 427,222 | Net realized gain on investments | ||
Tax | (144,761 | ) | Provision for Income Taxes | ||
Net of Tax | $ | 282,461 | |||
Amortization related to postretirement benefit plans: | |||||
Prior year service cost | $ | — | |||
Unrecognized loss | (2,235 | ) | |||
Total | $ | (2,235 | ) | (a) | |
Tax | 759 | Provision for Income Taxes | |||
Net of Tax | $ | (1,476 | ) | ||
Reclassifications for the period | $ | 280,985 |
Nine Months Ended September 30, 2017 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||
Unrealized gains and losses on available-for-sale securities: | |||||
Net realized gain on investments | $ | 976,888 | |||
Other-than-temporary impairments | — | ||||
Total | $ | 976,888 | Net realized gain on investments | ||
Tax | (334,054 | ) | Provision for Income Taxes | ||
Net of Tax | $ | 642,834 | |||
Amortization related to postretirement benefit plans: | |||||
Prior year service cost | $ | — | |||
Unrecognized loss | (6,459 | ) | |||
Total | $ | (6,459 | ) | (a) | |
Tax | 2,194 | Provision for Income Taxes | |||
Net of Tax | $ | (4,265 | ) | ||
Reclassifications for the period | $ | 638,569 |
Nine Months Ended September 30, 2016 | |||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||
Unrealized gains and losses on available-for-sale securities: | |||||
Net realized gain on investments | $ | 785,517 | |||
Other-than-temporary impairments | (233,941 | ) | |||
Total | $ | 551,576 | Net realized gain on investments | ||
Tax | (188,648 | ) | Provision for Income Taxes | ||
Net of Tax | $ | 362,928 | |||
Amortization related to postretirement benefit plans: | |||||
Prior year service cost | $ | — | |||
Unrecognized loss | (6,705 | ) | |||
Total | $ | (6,705 | ) | (a) | |
Tax | 2,279 | Provision for Income Taxes | |||
Net of Tax | $ | (4,426 | ) | ||
Reclassifications for the period | $ | 358,502 |
March 31, 2022 (in thousands) | |||||||||||
Details about Accumulated Other Comprehensive Income Components (in thousands) | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in | |||||||||
Unrealized gains and losses on available-for-sale securities: | |||||||||||
Net realized gain (loss) on investments | $ | — | |||||||||
Other-than-temporary impairments | — | ||||||||||
Total | $ | — | Net realized investment gains | ||||||||
Tax | — | Provision for income taxes | |||||||||
Net of Tax | $ | — | |||||||||
Reclassifications for the period | $ | — |
Three Months Ended March 31, 2021 (in thousands) | |||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the | |||||||||
Unrealized gains and losses on available-for-sale securities: | |||||||||||
Net realized gain on investments | $ | 23 | |||||||||
Other-than-temporary impairments | — | ||||||||||
Total | $ | 23 | Net realized investment gains | ||||||||
Tax | (5) | Provision for income taxes | |||||||||
Net of Tax | $ | 18 | |||||||||
Reclassifications for the period | $ | 18 |
Three Months Ended March 31, | ||||||||
(in thousands) | 2022 | 2021 | ||||||
Revenue from contracts with customers: | ||||||||
Escrow and other title-related fees | $ | 5,064 | $ | 2,798 | ||||
Non-title services | 2,426 | 2,078 | ||||||
Total revenue from contracts with customers | 7,490 | 4,876 | ||||||
Other sources of revenue: | ||||||||
Net premiums written | 63,125 | 61,477 | ||||||
Investment-related revenue | (1,916) | 5,517 | ||||||
Other | 299 | 208 | ||||||
Total revenues | $ | 68,998 | $ | 72,078 |
Three Months Ended March 31, | ||||||||
(in thousands) | 2022 | 2021 | ||||||
Operating leases | $ | 563 | $ | 326 | ||||
Short-term leases (b) | 67 | 64 | ||||||
Lease expense | $ | 630 | $ | 390 | ||||
Sub-lease income | — | — | ||||||
Lease cost | $ | 630 | $ | 390 |
(b) | Leases with an initial term of twelve months or less are not recorded on the unaudited Consolidated Balance Sheets. |
(in thousands) | As of March 31, 2022 | As of December 31, 2021 | ||||||
Current: | ||||||||
Operating lease liabilities | $ | 2,021 | $ | 1,547 | ||||
Non-current: | ||||||||
Operating lease liabilities | 5,432 | 3,782 | ||||||
Total operating lease liabilities | $ | 7,453 | $ | 5,329 |
Year Ended (in thousands) | |||||
2022 | $ | 2,211 | |||
2023 | 1,892 | ||||
2024 | 1,571 | ||||
2025 | 1,127 | ||||
2026 | 934 | ||||
Thereafter | 284 | ||||
Total undiscounted payments | $ | 8,019 | |||
Less: present value adjustment | (566) | ||||
Operating lease liabilities | $ | 7,453 |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Weighted average remaining lease term (years) | 4.14 | 4.13 | ||||||
Weighted average discount rate | 4.0 | % | 4.2 | % |
Three Months Ended March 31, | |||||||||||||||||
(in thousands) | 2022 | 2021 | |||||||||||||||
Revenues: | |||||||||||||||||
Net premiums written | $ | 63,125 | $ | 61,477 | |||||||||||||
Escrow and other title-related fees | 5,064 | 2,798 | |||||||||||||||
Non-title services | 2,426 | 2,078 | |||||||||||||||
Interest and dividends | 915 | 1,016 | |||||||||||||||
Other investment income | 1,337 | 941 | |||||||||||||||
Net realized investment gains | 1,747 | 321 | |||||||||||||||
Changes in the estimated fair value of equity security investments | (5,915) | 3,239 | |||||||||||||||
Other | 299 | 208 | |||||||||||||||
Total Revenues | 68,998 | 72,078 | |||||||||||||||
Operating Expenses: | |||||||||||||||||
Commissions to agents | 29,857 | 30,542 | |||||||||||||||
Provision for claims | 176 | 1,591 | |||||||||||||||
Personnel expenses | 21,254 | 16,153 | |||||||||||||||
Office and technology expenses | 4,368 | 2,742 | |||||||||||||||
Other expenses | 5,550 | 3,735 | |||||||||||||||
Total Operating Expenses | 61,205 | 54,763 | |||||||||||||||
Income before Income Taxes | 7,793 | 17,315 | |||||||||||||||
Provision for Income Taxes | 1,608 | 3,492 | |||||||||||||||
Net Income | $ | 6,185 | $ | 13,823 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Net premiums written | $ | 36,612,558 | $ | 36,306,522 | $ | 102,918,454 | $ | 87,357,972 | ||||||||
Investment income – interest and dividends | 1,087,054 | 1,160,983 | 3,297,634 | 3,478,999 | ||||||||||||
Net realized gain on investments | 803,938 | 439,326 | 990,118 | 574,328 | ||||||||||||
Other | 4,633,915 | 3,094,874 | 13,864,170 | 8,280,139 | ||||||||||||
Total Revenues | 43,137,465 | 41,001,705 | 121,070,376 | 99,691,438 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Commissions to agents | 17,641,272 | 18,739,151 | 50,569,972 | 45,946,379 | ||||||||||||
Provision (benefit) for claims | 1,854,493 | (1,067,853 | ) | 2,714,717 | (403,982 | ) | ||||||||||
Salaries, employee benefits and payroll taxes | 9,820,578 | 8,300,823 | 29,464,824 | 22,945,972 | ||||||||||||
Office occupancy and operations | 2,309,575 | 1,496,948 | 6,445,880 | 4,526,710 | ||||||||||||
Business development | 639,923 | 608,532 | 1,987,028 | 1,695,180 | ||||||||||||
Filing fees, franchise and local taxes | 203,912 | 191,574 | 935,476 | 688,731 | ||||||||||||
Premium and retaliatory taxes | 673,126 | 673,551 | 1,918,951 | 1,559,631 | ||||||||||||
Professional and contract labor fees | 447,651 | 523,504 | 1,375,291 | 1,599,603 | ||||||||||||
Other | 630,320 | 157,308 | 1,944,419 | 629,539 | ||||||||||||
Total Operating Expenses | 34,220,850 | 29,623,538 | 97,356,558 | 79,187,763 | ||||||||||||
Income before Income Taxes | 8,916,615 | 11,378,167 | 23,713,818 | 20,503,675 | ||||||||||||
Provision for Income Taxes | 2,990,000 | 3,249,000 | 7,647,000 | 6,040,000 | ||||||||||||
Net Income Attributable to the Company | $ | 5,926,457 | $ | 8,126,939 | $ | 16,077,704 | $ | 14,470,359 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2017 | % | 2016 | % | 2017 | % | 2016 | % | |||||||||||||||||||||
Home and Branch | $ | 10,871,775 | 29.7 | % | $ | 10,672,619 | 29.4 | % | $ | 30,296,701 | 29.4 | % | $ | 24,303,104 | 27.8 | % | ||||||||||||
Agency | 25,740,783 | 70.3 | % | 25,633,903 | 70.6 | % | 72,621,753 | 70.6 | % | 63,054,868 | 72.2 | % | ||||||||||||||||
Total | $ | 36,612,558 | 100.0 | % | $ | 36,306,522 | 100.0 | % | $ | 102,918,454 | 100.0 | % | $ | 87,357,972 | 100.0 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
(in thousands, except percentages) | 2022 | % | 2021 | % | ||||||||||||||||||||||
Home and Branch | $ | 17,418 | 27.6 | $ | 17,360 | 28.2 | ||||||||||||||||||||
Agency | 45,707 | 72.4 | 44,117 | 71.8 | ||||||||||||||||||||||
Total | $ | 63,125 | 100.0 | $ | 61,477 | 100.0 |
Three Months Ended March 31, | ||||||||||||||
State (in thousands) | 2022 | 2021 | ||||||||||||
North Carolina | $ | 24,339 | $ | 25,247 | ||||||||||
Texas | 15,762 | 11,352 | ||||||||||||
Georgia | 6,972 | 6,890 | ||||||||||||
South Carolina | 5,388 | 5,348 | ||||||||||||
All Others | 10,894 | 12,773 | ||||||||||||
Premiums Written | 63,355 | 61,610 | ||||||||||||
Reinsurance Assumed | — | — | ||||||||||||
Reinsurance Ceded | (230) | (133) | ||||||||||||
Net Premiums Written | $ | 63,125 | $ | 61,477 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
State | 2017 | 2016 | 2017 | 2016 | ||||||||||||
North Carolina | $ | 14,128,480 | $ | 13,782,187 | $ | 39,502,056 | $ | 31,540,890 | ||||||||
Texas | 7,294,401 | 7,069,431 | 20,153,555 | 17,367,044 | ||||||||||||
South Carolina | 3,698,254 | 3,541,902 | 10,357,916 | 8,312,574 | ||||||||||||
Georgia | 3,493,075 | 3,498,742 | 9,160,373 | 8,013,787 | ||||||||||||
Virginia | 1,614,801 | 1,756,468 | 4,486,593 | 4,745,121 | ||||||||||||
All Others | 6,460,531 | 6,686,540 | 19,448,956 | 17,437,969 | ||||||||||||
Premiums | 36,689,542 | 36,335,270 | 103,109,449 | 87,417,385 | ||||||||||||
Reinsurance Assumed | — | — | 2,756 | 10,946 | ||||||||||||
Reinsurance Ceded | (76,984 | ) | (28,748 | ) | (193,751 | ) | (70,359 | ) | ||||||||
Net Premiums Written | $ | 36,612,558 | $ | 36,306,522 | $ | 102,918,454 | $ | 87,357,972 |
Three Months Ended March 31, | |||||||||||||||||||||||
(in thousands, except percentages) | 2022 | % | 2021 | % | |||||||||||||||||||
Title Insurance | $ | 58,487 | 95.6 | $ | 52,412 | 95.7 | |||||||||||||||||
All Other | 2,718 | 4.4 | 2,351 | 4.3 | |||||||||||||||||||
Total | $ | 61,205 | 100.0 | $ | 54,763 | 100.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2017 | % | 2016 | % | 2017 | % | 2016 | % | |||||||||||||||||||||
Title Insurance | $ | 32,332,682 | 94.5 | % | $ | 27,967,210 | 94.4 | % | $ | 91,654,372 | 94.1 | % | $ | 74,302,399 | 93.8 | % | ||||||||||||
All Other | 1,888,168 | 5.5 | % | 1,656,328 | 5.6 | % | 5,702,186 | 5.9 | % | 4,885,364 | 6.2 | % | ||||||||||||||||
Total | $ | 34,220,850 | 100.0 | % | $ | 29,623,538 | 100.0 | % | $ | 97,356,558 | 100.0 | % | $ | 79,187,763 | 100.0 | % |
Issuer Purchases of Equity Securities | ||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Number of Shares that May Yet Be Purchased Under the Plan | ||||||||
Beginning of period | 429,707 | |||||||||||
July 2017 | — | $ | — | — | 429,707 | |||||||
August 2017 | 230 | $ | 176.60 | 230 | 429,477 | |||||||
September 2017 | — | $ | — | — | 429,477 | |||||||
Total: | 230 | $ | 176.60 | 230 | 429,477 |
10.1 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
31(i) | |||||
31(ii) | |||||
32 | |||||
101.INS | Inline XBRL Instance | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | ||||
* - The instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document | |||||
INVESTORS TITLE COMPANY | ||||||||
By: | /s/ James A. Fine, Jr. | |||||||
James A. Fine, Jr., President, Treasurer, Chief | ||||||||
Financial Officer, Chief Accounting Officer and | ||||||||
Director (Principal Financial Officer and | ||||||||
Principal Accounting Officer) |