Investors title company announces second quarter 2013 results
Chapel hill, n.c.--(business wire)--investors title company announced its results for the second quarter ended june 30, 2013. net income attributable to the company increased 19.6% to $4,005,675, or $1.92 per diluted share, compared with $3,349,488, or $1.57 per diluted share, for the prior year quarter. revenues increased 29.2% to $33,693,400 versus the prior year quarter, primarily due to a 30.9% increase in net premiums written. the premium growth reflects substantially higher levels of purchase transactions, as well as increases in average home values in many parts of the nation, driven by improvements in the overall economy. refinance volume was also up slightly as interest rates remained near historically low levels. operating expenses increased 29.6% to $27,823,350 versus the prior year quarter, primarily due to increases in agent commissions and other variable expenses which fluctuate with premium volumes. claims expense was higher than the prior year quarter, but both periods were abnormally low due to adjustments for favorable loss development. favorable claims expense trends are also impacted by the absence of large fraud-related claims in recent years, as well as an increase in business in states with historically lower loss provision rates. the increase in payroll expense was largely driven by higher staffing levels to support ongoing software development initiatives. for the six months ended june 30, 2013, net income attributable to the company increased 54.4% to $7,382,405, or $3.54 per diluted share, compared with $4,781,627, or $2.24 per diluted share, for the prior year period. revenues increased 24.8% to $60,541,673 and operating expenses increased 19.1% to $49,920,205 versus the prior year period. results for the first half of the year have been shaped predominantly by the same factors that affected the second quarter. chairman j. allen fine added, “after a lengthy period of sluggishness in the economy, we are pleased to see the recent increase in home sales, as well as a developing trend of overall increases in real estate prices. both of these factors, coupled with an active mortgage refinance market, contributed to all-time high revenue for the second quarter. with housing affordability still favorable and consumer confidence improving, we are optimistic that recent trends in home sales will continue. over the long term, we remain focused 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 other statements, any predictions regarding future agency base expansion or increasing operational efficiency. 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. june 30, june 30, june 30, 2013 common stock - no par value (shares authorized 10,000,000; 2,073,648 and 2,043,359 shares issued and outstanding as of june 30, 2013 and december 31, 2012, respectively, excluding 291,676 shares for 2013 and 2012 of common stock held by the company's subsidiary) june 30, june 30,
