Investors Title (ITIC) 8-K Investors Title Company Announces First Quarter 2011 Financial Results

Exhibit 99.1

Investors Title Company Announces First Quarter 2011 Financial Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--April 29, 2011--Investors Title Company today announced its results for the quarter ended March 31, 2011. The Company reported net income of $1,019,207, or $0.46 per diluted share, compared with $17,415, or $0.01 per diluted share, for the prior year period.

Total revenues increased 46.2% versus the prior year period to $20,022,020, primarily due to a 51.6% increase in net premiums written. The premium growth is mainly attributable to the Company’s recent expansion into Texas, as well as to an overall increase in purchase transactions insured.

Agent commissions increased 94.3% over the prior year as a result of growth in agency premiums and an increase in agent business from markets with higher premium rates, primarily Texas. Excluding commissions and premium taxes, which fluctuate with the amount of premiums written, operating expenses decreased 5.1% versus the prior year period, mostly due to the reduction in claims expense. Claims expense benefitted from favorable loss development in recent policy years, as well as from a decline in the relative share of North Carolina business as a percentage of the total. Since North Carolina’s premium rates are less than half the national average, the resulting loss ratio for North Carolina business is higher than for our other markets. In addition, the Company continues to benefit from lower occupancy and operating costs in its branch offices.

Chairman J. Allen Fine added, “We are pleased to report an increase in revenues driven by continued expansion of our agent base, as well as a favorable mix of business. Operating expense comparisons remain favorable, driven by positive developments in claims loss rates and the continued impact of cost reduction initiatives from the past several years. Our balance sheet remains very strong, and we continue to focus on enhancing our competitive strengths and market presence.”

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

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among other statements, any predictions regarding activity in the U.S. real estate market, future enhancement of our operational efficiency or agency-based expansion. 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: 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; declines in the performance of the Company’s investments; government regulation; 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, 2010, as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three Months Ended March 31, 2011 and 2010
(Unaudited)
		Three Months Ended
		March 31
		2011			2010
Revenues:
Underwriting income:
Premiums Written	$	17,912,286		$	11,829,821
Less-premiums for reinsurance ceded		46,698			43,519
Net premiums written		17,865,588			11,786,302
Investment income-interest and dividends		899,372			906,622
Net realized (loss) gain on investments		(26,160	)		25,150
Other		1,283,220			979,337
Total Revenues		20,022,020			13,697,411
Operating Expenses:
Commissions to agents		10,879,586			5,599,451
Provision for claims		721,626			1,312,404
Salaries, employee benefits and payroll taxes		4,691,996			4,484,312
Office occupancy and operations		963,927			1,088,405
Business development		387,547			274,296
Filing fees, franchise and local taxes		214,113			145,422
Premium and retaliatory taxes		405,473			300,946
Professional and contract labor fees		308,524			365,078
Other		103,021			111,682
Total Operating Expenses		18,675,813			13,681,996
Income Before Income Taxes		1,346,207			15,415
Provision (Benefit) For Income Taxes		327,000			(2,000	)
Net Income	$	1,019,207		$	17,415
Basic Earnings Per Common Share	$	0.46		$	0.01
Weighted Average Shares Outstanding - Basic		2,234,480			2,285,134
Diluted Earnings Per Common Share	$	0.46		$	0.01
Weighted Average Shares Outstanding - Diluted		2,239,500			2,295,164

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2011 and December 31, 2010
(Unaudited)
		March 31, 2011		December 31, 2010
Assets
Investments in securities:
Fixed maturities:
Available-for-sale, at fair value	$	85,418,326	$	86,033,557
Equity securities, available-for-sale, at fair value		15,595,241		13,872,370
Short-term investments		20,895,922		27,203,550
Other investments		2,746,936		2,888,958
Total investments		124,656,425		129,998,435
Cash and cash equivalents		11,599,535		8,117,031
Premiums and fees receivable, net		5,316,144		7,253,786
Accrued interest and dividends		946,078		1,150,602
Prepaid expenses and other assets		2,509,104		2,688,723
Property acquired in settlement of claims		119,938		127,938
Property, net		3,605,828		3,672,317
Current income taxes receivable		378,256		-
Deferred income taxes, net		-		476,534
Total Assets	$	149,131,308	$	153,485,366
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	37,722,000	$	38,198,700
Accounts payable and accrued liabilities		9,659,492		10,301,495
Current income taxes payable		-		1,056,356
Deferred income taxes, net		357,932		-
Total liabilities		47,739,424		49,556,551
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000; 2,156,078 and 2,282,596 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively, excluding 291,676 shares for 2011 and 2010 of common stock held by the Company's subsidiary)		1		1
Retained earnings		95,233,547		98,240,109
Accumulated other comprehensive income		6,158,336		5,688,705
Total stockholders' equity		101,391,884		103,928,815
Total Liabilities and Stockholders' Equity	$	149,131,308	$	153,485,366

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three Months Ended March 31, 2011 and 2010
(Unaudited)
	Three Months Ended
	March 31
		2011	%		2010	%
Branch	$	3,696,280	20.7	$	3,749,800	31.8
Agency		14,169,308	79.3		8,036,502	68.2
Total	$	17,865,588	100.0	$	11,786,302	100.0

CONTACT:
For Investors Title Company
Elizabeth B. Lewter, 919-968-2200