Investors Title (ITIC) 8-K Investors Title Company Announces Second Quarter 2006 Results

Exhibit 99.1

INVESTORS TITLE COMPANY ANNOUNCES SECOND QUARTER 2006 RESULTS

Contact: Elizabeth B. Lewter

August 7, 2006

Telephone: (919) 968-2200

NASDAQ Symbol: ITIC

FOR IMMEDIATE RELEASE:

Chapel Hill, NC - J. Allen Fine, Chairman of Investors Title Company, announced that for the second quarter ended June 30, 2006, the Company reported net income of $4,315,537, an increase of 11.7% compared with $3,861,998 for the prior year period. Net income per diluted share equaled $1.68, an increase of 13.5% compared with $1.48 per diluted share in the same period last year. Net premiums written decreased 4.4% to $19,123,591 and revenues increased 1.2% to $23,126,621 compared with the prior year period.

For the six-month period ended June 30, 2006, the Company reported net income $7,190,478, an increase of 32.1%, compared with $5,442,492 for the same six-month period in 2005. Diluted earnings per share were $2.79, an increase of 34.1% compared with $2.08 for the same six-month ended period in 2005. Net premiums written decreased 3.7% to $35,755,217 and revenues increased 2.7% to $43,305,469 compared with the prior year.

Growth in the fee income generated in our exchange services segment and Trust division coupled with an increase in investment income drove the overall increase in total revenue. Offsetting these increases was a decline in premiums written resulting primarily from a lower level of real estate activity. Operating expenses remained flat as the decline in commissions paid to agents was offset by an increase in personnel costs. The effective tax rate declined resulting primarily from higher interest rates and higher balances invested in tax-exempt securities.

Chairman Fine added, “The decline in our premium revenue has followed the overall softening in the residential housing market this year. As generally expected, transaction volume and mortgage loan originations have trended down as a result of higher mortgage rates. Countering this trend slightly has been ongoing strength in the commercial real estate sector.”

Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property as well as investment management services to individuals, trusts, foundations and businesses.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include any predictions regarding activity in the U.S. real estate market. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. For more details on risk, uncertainties and other factors that could affect expectations, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the Securities and Exchange Commission.

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Investors Title Company and Subsidiaries
Consolidated Statements of Income
June 30, 2006 and 2005
(Unaudited)
		For The Three					For The Six
		Months Ended					Months Ended
		June 30					June 30
		2006			2005		2006		2005
Revenues:
Underwriting income:
Premiums Written	$	19,222,175		$	20,052,131	$	35,968,444	$	37,298,168
Less-premiums for reinsurance ceded		98,584			45,736		213,227		184,815
Net premiums written		19,123,591			20,006,395		35,755,217		37,113,353
Investment income-interest and dividends		1,034,696			808,559		2,028,750		1,561,324
Net realized gain (loss) on sales of investments		(17,190	)		30,801		544,457		19,907
Exchange services revenue		1,908,357			1,239,793		2,936,089		2,049,432
Other		1,077,167			768,514		2,040,956		1,439,625
Total		23,126,621			22,854,062		43,305,469		42,183,641
Operating Expenses:
Commissions to agents		7,289,322			7,848,781		13,572,718		14,840,530
Provision for claims		2,030,412			2,172,108		3,885,691		4,071,113
Salaries, employee benefits and payroll taxes		4,917,022			4,413,567		9,922,869		9,780,879
Office occupancy and operations		1,266,042			1,239,870		2,731,355		2,589,076
Business development		547,505			464,388		1,053,163		891,861
Taxes, other than payroll and income		146,007			209,230		296,892		319,984
Premium and retaliatory taxes		328,542			393,770		670,610		793,315
Professional fees		737,534			653,251		1,325,156		1,091,181
Other		219,728			66,099		438,567		111,210
Total		17,482,114			17,461,064		33,897,021		34,489,149
Income Before Income Taxes		5,644,507			5,392,998		9,408,448		7,694,492
Provision For Income Taxes		1,328,970			1,531,000		2,217,970		2,252,000
Net Income	$	4,315,537		$	3,861,998	$	7,190,478	$	5,442,492
Basic Earnings Per Common Share	$	1.70		$	1.51	$	2.83	$	2.12
Weighted Average Shares Outstanding - Basic		2,537,883			2,563,094		2,543,475		2,563,793
Diluted Earnings Per Common Share	$	1.68		$	1.48	$	2.79	$	2.08
Weighted Average Shares Outstanding - Diluted		2,572,062			2,607,611		2,578,743		2,616,418

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2006 and December 31, 2005
(Unaudited)
	June 30, 2006		December 31, 2005
Assets
Cash and cash equivalents	$	3,691,551	$	14,608,481
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost		1,199,924		1,648,708
Available-for-sale, at fair value		91,429,904		75,472,342
Equity securities, available-for-sale at fair value		11,872,205		9,437,678
Short-term investments		4,386,825		7,257,734
Other investments		1,662,557		1,336,111
Total investments		110,551,415		95,152,573
Premiums receivable, net		7,680,380		7,818,558
Accrued interest and dividends		1,102,015		1,010,198
Prepaid expenses and other assets		2,021,482		1,592,326
Property acquired in settlement of claims		413,480		359,980
Property, net		5,907,523		5,466,765
Deferred income taxes, net		2,917,684		2,462,647
Total Assets	$	134,285,530	$	128,471,528
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	35,866,000	$	34,857,000
Accounts payable and accrued liabilities		8,579,869		7,928,384
Commissions and reinsurance payables		358,385		442,098
Current income taxes payable		279,123		946,790
Total liabilities		45,083,377		44,174,272
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,534,036 and 2,549,434 shares issued and outstanding 2006 and 2005,
respectively, excluding 291,792 and 297,783 shares 2006 and 2005,
respectively, of common stock held by the Company's subsidiary)		1		1
Retained earnings		87,591,774		81,477,022
Accumulated other comprehensive income (net unrealized gain on investments)		1,610,378		2,820,233
Total stockholders' equity		89,202,153		84,297,256
Total Liabilities and Stockholders' Equity	$	134,285,530	$	128,471,528

Investors Title Company and Subsidiaries
Net Premiums Written By State
June 30, 2006 and 2005
(Unaudited)
	For the Three Months Ended						For the Six Months Ended
	June 30						June 30
State		2006			2005			2006			2005
Alabama	$	330,545		$	379,273		$	574,181		$	730,003
Florida		327,956			462,331			606,291			771,940
Illinois		280,013			278,550			527,908			491,330
Kentucky		583,539			545,873			1,157,037			984,840
Maryland		407,905			487,882			781,674			860,528
Michigan		881,521			1,273,971			1,758,830			2,385,378
Minnesota		304,900			259,992			642,069			528,792
Mississippi		167,225			298,242			301,677			561,593
Nebraska		197,136			180,377			331,446			385,695
New York		709,195			774,372			1,212,791			1,360,377
North Carolina		9,773,452			9,606,689			18,214,934			17,365,468
Pennsylvania		410,595			448,823			726,507			827,648
South Carolina		1,536,781			1,340,095			2,938,854			3,387,988
Tennessee		614,769			722,736			1,281,092			1,290,584
Virginia		1,897,939			2,211,161			3,572,042			3,954,013
West Virginia		640,423			582,511			1,095,841			1,012,065
Other		158,281			199,253			238,844			385,880
Direct Premiums		19,222,175			20,052,131			35,962,018			37,284,122
Reinsurance Assumed		-			-			6,426			14,046
Reinsurance Ceded		(98,584	)		(45,736	)		(213,227	)		(184,815	)
Net Premiums Written	$	19,123,591		$	20,006,395		$	35,755,217		$	37,113,353

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2006 and 2005
(Unaudited)
	For The Three Months Ended								For The Six Months Ended
	June 30								June 30
	2006		%		2005		%		2006		%		2005		%
Branch	$	9,004,581		47	$	9,131,282		46	$	16,730,965		47	$	16,381,111		44
Agency		10,119,010		53		10,875,113		54		19,024,252		53		20,732,242		56
Total	$	19,123,591		100	$	20,006,395		100	$	35,755,217		100	$	37,113,353		100