Investors title company announces fourth quarter and fiscal year 2013
results
Chapel hill, n.c.--(business wire)--investors title company today announced its results for the fourth quarter and year ended december 31, 2013. for the year, net income attributable to the company increased 32.5% to $14,708,210, or $7.08 per diluted share, versus $11,102,496, or $5.24 per diluted share, for the prior year. for the quarter, net income attributable to the company decreased 42.8% to $1,810,007, or $0.88 per diluted share, versus $3,162,684, or $1.51 per diluted share, for the prior year period. revenues for the year increased 9.7% to $126,251,497, primarily due to an increase in premium volume. as the overall economy continued to improve, premiums grew along with higher levels of real estate purchase activity and higher home prices across most of our markets. rising interest rates however, led to a significant drop in the level of refinance transactions insured over the course of the year. operating expenses increased 5.8% to $104,708,759 versus the prior year, mostly due to increases in volume-driven expenses such as commissions to agents and premium taxes. the provision for claims includes a reduction in the reserve of approximately $2,200,000, reflecting a change in estimate related to certain actuarial assumptions stemming from improved claims experience in recent post-recession policy years. in addition to the change in estimate, claims experience for several recent policy years continued to emerge favorably in comparison with prior period expectations, resulting in further reductions to the claims provision. the increase in payroll expense was largely driven by higher staffing levels to support ongoing software development activities, and increases in incentive compensation and benefit costs. revenues for the quarter decreased 6.4% to $32,104,585 versus the prior year period, primarily due to a 4.3% decrease in net premiums written, as the mid-year interest rate increase negatively impacted mortgage loan refinance activity. lower investment gains also contributed to the revenue decrease. operating expenses remained virtually flat as the decline in commission paid to agents was partially offset by a slightly higher claims expense versus the prior year quarter. chairman j. allen fine added, “we are pleased to report record levels of revenue and net income for 2013. although refinance activity slowed from the prior year, an improving economy and strength in a number of our core markets led to a substantial increase in purchase-driven volume. in addition, we continue to benefit from favorable claims experience, driven by a combination of factors including a decline in foreclosures and internal risk management efforts. our balance sheet and financial condition remain strong, as total assets reached an all-time high of $188.3 million. as the u.s. housing recovery continues we plan to 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. net (income) loss attributable to redeemable noncontrolling interest
