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

Exhibit 99.1

Investors Title Company Announces Second Quarter 2011 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--August 2, 2011--Investors Title Company today announced its results for the second quarter ended June 30, 2011. Net income decreased 37.2% to $1,594,805, or $0.74 per diluted share, compared with $2,537,560, or $1.11 per diluted share, for the prior year period.

Revenues increased 46.2% to $23,719,213 versus the prior year period, primarily due to a 57.3% increase in net premiums written. The premium growth is mainly attributable to the Company’s recent expansion into Texas. In addition, premiums in the second quarter shifted slightly from refinancing transactions toward higher-margin purchase transactions relative to the prior year period and the trailing quarter.

Operating expenses increased 64.0% to $21,680,408 versus the prior year period, primarily due to increases in commissions to agents and the provision for claims. Commissions to agents increased 105.3%, commensurate with the growth in agency premiums and reflective of an increase in agent business from markets with higher premium rates, primarily Texas. The provision for claims was higher in the current quarter compared with the prior year primarily due to a $942,000 recovery in the second quarter of 2010 on a fraud-related claim. The impact of the unfavorable comparison was partially offset by favorable loss development in prior policy years, as well as a decline in the relative share of North Carolina business as a percentage of the total versus the prior year period. 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.

For the six months ended June 30, 2011, net income increased 2.3% to $2,614,012, or $1.19 per diluted share, compared with $2,554,975, or $1.11 per diluted share, for the prior year period. Revenues increased 46.2% to $43,741,233, while operating expenses increased 50.0% versus the prior year period, largely as a result of factors noted above for the quarter.

Chairman J. Allen Fine added, “We are pleased to report an increase in revenues driven by continued expansion of our agent base. Although operating expenses have increased as we have invested in growing our agent base, the impact has been partially offset by positive developments in claims loss rates and the continued impact of cost reduction initiatives from the past several years. While a robust recovery of the U.S. economy appears unlikely in the near term, our balance sheet remains very strong, and we will continue to focus on enhancing our competitive strengths by emphasizing growth in market presence and careful management of expenses.”

Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides investment management services to individuals, companies, 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 and Six Months Ended June 30, 2011 and 2010
(Unaudited)
		Three Months Ended				Six Months Ended
		June 30				June 30
		2011		2010		2011		2010
Revenues:
Net premiums written	$	21,451,022	$	13,638,950	$	39,316,610	$	25,425,252
Investment income - interest and dividends		878,818		915,852		1,778,190		1,822,474
Net realized gain on investments		147,075		325,780		120,915		350,930
Other		1,242,298		1,338,184		2,525,518		2,317,521
Total Revenues		23,719,213		16,218,766		43,741,233		29,916,177
Operating Expenses:
Commissions to agents		13,293,828		6,476,376		24,173,414		12,075,827
Provision for claims		1,229,961		112,415		1,951,587		1,424,819
Salaries, employee benefits and payroll taxes		4,639,675		4,345,961		9,331,671		8,830,273
Office occupancy and operations		952,460		978,822		1,916,387		2,067,227
Business development		372,239		352,365		759,786		626,661
Filing fees, franchise and local taxes		118,146		147,277		332,259		292,699
Premium and retaliatory taxes		502,984		281,784		908,457		582,730
Professional and contract labor fees		411,557		338,794		720,081		703,872
Other		159,558		182,412		262,579		294,094
Total Operating Expenses		21,680,408		13,216,206		40,356,221		26,898,202
Income Before Income Taxes		2,038,805		3,002,560		3,385,012		3,017,975
Provision For Income Taxes		444,000		465,000		771,000		463,000
Net Income	$	1,594,805	$	2,537,560	$	2,614,012	$	2,554,975
Basic Earnings Per Common Share	$	0.75	$	1.11	$	1.20	$	1.12
Weighted Average Shares Outstanding - Basic		2,134,164		2,285,653		2,184,323		2,285,392
Diluted Earnings Per Common Share	$	0.74	$	1.11	$	1.19	$	1.11
Weighted Average Shares Outstanding - Diluted		2,155,116		2,293,199		2,201,398		2,293,232

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2011 and December 31, 2010
(Unaudited)
		June 30, 2011		December 31, 2010
Assets:
Investments in securities:
Fixed maturities:
Available-for-sale, at fair value	$	84,442,518	$	86,033,557
Equity securities, available-for-sale, at fair value		15,268,038		13,872,370
Short-term investments		22,212,440		27,203,550
Other investments		2,995,116		2,888,958
Total investments		124,918,112		129,998,435
Cash and cash equivalents		12,652,920		8,117,031
Premiums and fees receivable, net		5,490,826		7,253,786
Accrued interest and dividends		1,114,632		1,150,602
Prepaid expenses and other assets		4,910,571		2,816,661
Property, net		3,574,593		3,672,317
Current income taxes receivable		730,356		-
Deferred income taxes, net		-		476,534
Total Assets	$	153,392,010	$	153,485,366
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	37,605,000	$	38,198,700
Accounts payable and accrued liabilities		12,414,679		10,301,495
Current income taxes payable		-		1,056,356
Deferred income taxes, net		994,169		-
Total liabilities		51,013,848		49,556,551
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000; 2,127,735 and 2,282,596 shares issued and outstanding as of June 30, 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		95,599,613		98,240,109
Accumulated other comprehensive income		6,778,548		5,688,705
Total stockholders' equity		102,378,162		103,928,815
Total Liabilities and Stockholders' Equity	$	153,392,010	$	153,485,366

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Six Months Ended June 30, 2011 and 2010
(Unaudited)
	Three Months Ended						Six Months Ended
	June 30						June 30
		2011	%		2010	%		2011	%		2010	%
Branch	$	3,977,234	18.5	$	4,420,264	32.4	$	7,673,514	19.5	$	8,170,064	32.1
Agency		17,473,788	81.5		9,218,686	67.6		31,643,096	80.5		17,255,188	67.9
Total	$	21,451,022	100.0	$	13,638,950	100.0	$	39,316,610	100.0	$	25,425,252	100.0

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