Investors title company announces third quarter 2015 results
Chapel hill, n.c.--(business wire)--investors title company today announced its results for the third quarter ended september 30, 2015. net income attributable to the company increased 73.1% to $4,490,962, or $2.28 per diluted share, compared with $2,594,490, or $1.28 per diluted share, for the prior year quarter. revenues increased 17.1% to $34,541,258 versus the prior year quarter, primarily due to a 17.4% increase in net premiums written, setting a new quarterly record level of both revenues and premiums written. real estate activity was up significantly for the quarter, driven mainly by higher levels of home purchases and stable levels of mortgage refinance activity. operating expenses increased 8.5% to $28,104,760 versus the prior year quarter, mainly due to higher agent commissions commensurate with increased premiums written, partially offset by a higher concentration of business in markets with lower average commission rates. the increase in agent commissions was partially offset by a reduction in the provision for claims, reflecting improved claims experience in recent policy years. higher premium volumes and normal inflationary effects drove other operating expenses marginally higher versus the prior year quarter. for the nine months ended september 30, 2015, net income attributable to the company increased 48.6% to $10,337,583, or $5.17 per diluted share, compared with $6,954,526, or $3.41 per diluted share, for the prior year period. revenues increased 7.8% to $98,324,874, driven by a 6.5% increase in net premiums written. operating expenses increased 2.7% to $83,732,755 versus the prior year period, mainly due to higher payroll expenses associated with normal inflationary increases and higher staffing levels to support ongoing software development activities. claims expense was down 13.3% due to improved claims experience in recent policy years. agent commissions were flat versus the prior year period even as premiums grew, as a larger proportion of premiums originated in markets with lower average commission rates. chairman j. allen fine added, “we are pleased to report another quarter with record levels of revenue. title insurance premiums were bolstered by higher levels of home sales activity as well as continued increases in real estate prices. while the pace of loan closings may slow during the fourth quarter in the wake of the october 3 tila-respa integrated disclosure rule (trid) implementation, we remain encouraged that positive trends in the unemployment rate and overall economic conditions will sustain the levels of purchase activity, at least for the near future. over the long term, we will continue to focus on enhancing our competitive strengths and profitably expanding our market presence.” investors title company’s subsidiaries issue and underwrite 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 future home price increases, changes in home purchase or refinance activity, interest rate changes, expansion of the company’s market presence, enhancing competitive strengths, positive development in housing affordability, 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; government regulation; changes in the economy; the possible loss of agency relationships, or significant reduction in agent-originated business 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, 2014, as filed with the securities and exchange commission, and in its subsequent quarterly reports on form 10-q. investors title company and subsidiaries consolidated statements of income for the three and nine months ended september 30, 2015 and 2014 three months ended september 30, nine months ended september 30, investors title company and subsidiaries consolidated balance sheets as of september 30, 2015 and december 31, 2014 (unaudited) common stock - no par value (10,000,000 authorized shares; 1,953,418 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the company's subsidiary) investors title company and subsidiaries net premiums written by branch and agency for the three and nine months ended september 30, 2015 and 2014 25.7 24.6 74.3 75.4 100.0 100.0
