Investors Title Company Announces Second Quarter 2025 Results

Investors Title Company (NASDAQ:ITIC) today announced results for the second quarter ended June 30, 2025. The Company reported net income of $12.3 million, or $6.48 per diluted share, compared to $8.9 million, or $4.70 per diluted share, for the prior year period.

Revenues increased 12.6% to $73.6 million, compared to $65.4 million in the prior year period. Net premiums written and escrow and title-related fees increased by $4.0 million, primarily driven by higher real estate activity levels. Other revenue increased $2.7 million due to a gain on assets transferred to a joint venture. Non-title services revenue increased $1.2 million, largely attributable to increases in revenue from like-kind exchanges and management services. Net investment gains increased by $862 thousand due to the impact of changes in the estimated fair value of equity security investments.

Operating expenses increased 6.9% to $57.9 million, compared to $54.1 million in the prior year period. The increase in operating expenses was largely driven by higher agent commissions and an increase in the provision for claims. The rise in agent commissions corresponds with the growth in agent business. The claims expense increased due to higher reserves on reported claims and a reduction in favorable loss development during the current period.

Income before income taxes increased to $15.8 million for the current year quarter, versus $11.3 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $13.7 million for the current year quarter, versus $10.0 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).

For the six months ended June 30, 2025, net income increased $2.1 million to $15.4 million, or $8.16 per diluted share, versus $13.4 million, or $7.10 per diluted share, for the prior year period. Revenues increased 9.6% to $130.2 million, compared with $118.8 million for the prior year period. Operating expenses increased 8.4% to $110.4 million, compared to $101.8 million for the prior year period. Income before income taxes increased to $19.9 million for the current year, versus $17.1 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $18.9 million for the current year period, versus $13.4 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure). Overall results for the year-to-date period have been shaped predominantly by the same factors that affected the second quarter. The one notable exception was lower net investment gains for the first six months of 2025, compared to the same prior year period, which were driven by negative changes in the estimated fair value of equity security investments and a decrease in realized gains from the sale of investment securities.

Chairman J. Allen Fine commented, "We are pleased to report our strongest quarterly performance in over three years, reflecting solid execution and broad-based revenue growth. The increase in profitability was driven largely by growth in title insurance revenues, aided by increases in our non-title business segments, particularly our like-kind exchange subsidiary.

"Despite ongoing market headwinds, incoming order volumes in the second quarter exceeded those of the same period last year. As a result, we are entering the third quarter with a stronger pipeline of open orders compared to a year ago. We believe this positions us well for continued momentum in the quarters ahead."

Investors Title Company's subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services and services in connection with tax-deferred exchanges of like-kind property.

Cautionary Statements Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as "plan," expect," "aim," "believe," "project," "anticipate," "intend," "estimate," "should," "could," "would," and other expressions that indicate future events and trends. Such statements include, among others, any statements regarding the Company's expected performance for future periods and the full year, the impact of order volumes on results in future quarters, future home price fluctuations, changes in home purchase or refinance demand, activity and the mix thereof, interest rate changes, expansion of the Company's market presence, enhancement of competitive strengths, execution on expense management strategies, development in housing affordability, wages, unemployment or overall economic conditions or statements 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, including the limited predictive power of historical claims experience; declines in the performance of the Company's investments; changes in government regulations and policy, including as a result of the Trump administration such as policies related to tariffs and taxes and their impact on the macroeconomic environment; changes in the economy; the impact of inflation and responses by government regulators, including the Federal Reserve, such as changes in interest rates; loss of agency relationships, or significant reductions in agent-originated business; difficulties managing growth, whether organic or through acquisitions 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, 2024 as filed with the Securities and Exchange Commission, and in subsequent filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250806524121/en/

Elizabeth B. Lewter

(919) 968-2200