Investors Title (ITIC) 8-K Investors Title Company Announces Third Quarter 2013 Results

Exhibit 99.1

Investors Title Company Announces Third Quarter 2013 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--November 4, 2013--Investors Title Company today announced its results for the third quarter ended September 30, 2013. Net income attributable to the Company increased 74.7% to $5,515,798, or $2.66 per diluted share, compared with $3,158,185, or $1.50 per diluted share, for the prior year quarter.

Revenues increased 4.1% to $33,605,239 versus the prior year quarter, primarily due to a 4.9% increase in net premiums written. The premium growth reflects higher levels of purchase transactions, as well as increases in average home values in many parts of the nation, driven by improvement in the overall economy. Refinance volume continued its downward trend, reflecting a rising interest rate environment over the course of 2013.

Operating expenses decreased 8.1% to $25,328,716 versus the prior year quarter due to lower claims expense, partially offset by increases in other expense categories. The provision for claims includes a reduction in the reserves for claims of approximately $2,400,000 reflecting a change in estimate related to certain actuarial assumptions that stems from improved claims experience in recent post-recession policy years. The increase in payroll expense was largely driven by higher staffing levels to support ongoing software development, and increased benefits and incentive compensation. Other operating expenses were higher than the prior year quarter mostly due to volume increases or changes in the mix of business.

For the nine months ended September 30, 2013, net income attributable to the Company increased 62.4% to $12,898,203 or $6.19 per diluted share, compared with $7,939,812, or $3.74 per diluted share, for the prior year period. Revenues increased 16.6% to $94,146,912 and operating expenses increased 8.3% to $75,248,921 versus the prior year period. Results for the first nine months of the year have been shaped predominantly by the same factors that affected the third quarter.

Chairman J. Allen Fine added, “We were pleased to see a continuation in the third quarter of recent increases in the volume of home sales as well as general increases in home prices. Despite moderation in refinance activity, these factors contributed to an all-time high level of revenue for the quarter. Earnings were impacted favorably by changes to actuarial assumptions reflecting improved claims experience in recent years. We continue to focus on enhancing our competitive strengths and capitalizing on opportunities to profitably expand our market presence.”

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 others, any statements regarding expansion of the Company’s market presence, enhancing competitive strengths or regarding our actuarial assumptions and the application of recent historical claims experience to future periods. 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: the 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, 2012, 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 Nine Months Ended September 30, 2013 and 2012
(Unaudited)
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Revenues:
Net premiums written	$	30,431,560		$	29,018,123		$	84,787,318		$	71,927,113
Investment income - interest and dividends		990,338			962,573			2,835,870			2,949,752
Net realized gain on investments		261,938			99,790			333,554			357,819
Other		1,921,403			2,196,922			6,190,170			5,537,323
Total Revenues		33,605,239			32,277,408			94,146,912			80,772,007
Operating Expenses:
Commissions to agents		18,142,697			16,840,421			49,240,917			40,683,365
(Benefit) provision for claims		(3,037,101	)		2,432,057			(2,429,289	)		4,424,523
Salaries, employee benefits and payroll taxes		7,133,497			5,598,722			19,533,970			16,080,639
Office occupancy and operations		1,165,772			984,303			3,266,112			2,956,470
Business development		606,549			472,436			1,487,635			1,254,691
Filing fees, franchise and local taxes		141,373			140,740			510,893			673,992
Premium and retaliatory taxes		592,717			423,626			1,563,764			1,312,906
Professional and contract labor fees		404,206			523,956			1,514,749			1,620,911
Other		179,006			143,232			560,170			481,755
Total Operating Expenses		25,328,716			27,559,493			75,248,921			69,489,252
Income Before Income Taxes		8,276,523			4,717,915			18,897,991			11,282,755
Provision For Income Taxes		2,733,000			1,479,000			5,944,000			3,239,000
Net Income		5,543,523			3,238,915			12,953,991			8,043,755
Less: Net Income Attributable to Redeemable Noncontrolling Interest		(27,725	)		(80,730	)		(55,788	)		(103,943	)
Net Income Attributable to the Company	$	5,515,798		$	3,158,185		$	12,898,203		$	7,939,812
Basic Earnings Per Common Share	$	2.67		$	1.52		$	6.26		$	3.80
Weighted Average Shares Outstanding - Basic		2,069,081			2,071,605			2,059,226			2,090,369
Diluted Earnings Per Common Share	$	2.66		$	1.50		$	6.19		$	3.74
Weighted Average Shares Outstanding - Diluted		2,074,940			2,108,526			2,083,560			2,124,122

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2013 and December 31, 2012
(Unaudited)
		September 30, 2013		December 31, 2012
Assets:
Investments in securities:
Fixed maturities, available-for-sale, at fair value	$	86,100,498	$	81,936,978
Equity securities, available-for-sale, at fair value		33,460,972		28,510,933
Short-term investments		15,388,647		13,567,648
Other investments		7,311,949		6,763,100
Total investments		142,262,066		130,778,659
Cash and cash equivalents		22,868,393		20,810,018
Premiums and fees receivable, net		9,758,749		11,037,714
Accrued interest and dividends		1,041,472		1,037,447
Prepaid expenses and other assets		7,314,187		4,651,115
Property, net		4,204,506		3,603,323
Current income taxes receivable		1,708,257		-
Total Assets	$	189,157,630	$	171,918,276
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	34,816,000	$	39,078,000
Accounts payable and accrued liabilities		21,331,255		15,477,545
Current income taxes payable		-		1,336,824
Deferred income taxes, net		5,259,773		893,156
Total liabilities		61,407,028		56,785,525
Redeemable Noncontrolling Interest		512,749		493,861
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,066,922 and 2,043,359 shares issued and outstanding as of September 30, 2013 and
December 31, 2012, respectively, excluding 291,676 shares for 2013 and 2012
of common stock held by the Company's subsidiary)		1		1
Retained earnings		117,418,431		105,820,459
Accumulated other comprehensive income		9,819,421		8,818,430
Total stockholders' equity		127,237,853		114,638,890
Total Liabilities and Stockholders' Equity	$	189,157,630	$	171,918,276

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Nine Months Ended September 30, 2013 and 2012
(Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2013	%		2012	%		2013	%	2012		%
Branch	$	6,630,345	21.8	$	6,559,658	22.6	$	19,746,738	23.3	$	17,546,488	24.4
Agency		23,801,215	78.2		22,458,465	77.4		65,040,580	76.7		54,380,625	75.6
Total	$	30,431,560	100.0	$	29,018,123	100.0	$	84,787,318	100.0	$	71,927,113	100.0

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