Investors title company announces first quarter 2013 financial results
Chapel hill, n.c.--(business wire)--investors title company today announced its results for the quarter ended march 31, 2013. the company reported net income of $3,376,730, or $1.62 per diluted share, compared with $1,432,139, or $0.67 per diluted share, for the prior year period. the company achieved record first quarter revenues totaling $26,848,273, an increase of 19.8% versus the prior year period, resulting from a 21.7% increase in net premiums written. historically low interest rates continue to help drive increases in mortgage lending activity. various new premium charges and rate increases which became effective during the preceding twelve months also contributed to the increase. operating expenses increased 8.0% versus the prior year period, primarily due to increases in commissions to agents and payroll expense. commissions to agents increased commensurate with the increase in agency premiums. the increase in payroll expense was largely driven by higher staffing levels to support ongoing software development initiatives. positive legal developments in several claim matters, coupled with a significant current quarter recovery of a claim payment made in a prior period, contributed to a benefit in the claims provision during the quarter. in addition, claims experience for several recent policy years continued to emerge favorably in comparison with prior expectations. chairman j. allen fine added, “we are pleased to see continued strength in mortgage lending activity. premiums written from purchase transactions increased substantially versus the prior year period, while the level of refinance activity has trended slightly downward. positive revenue trends, coupled with favorable claims experience, led to very strong results for the first quarter.” 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. 2013 2012 common stock - no par value (shares authorized 10,000,000; 2,045,968 and 2,043,359 shares issued and outstanding as of march 31, 2013 and december 31, 2012, respectively, excluding 291,676 shares for 2013 and 2012 of common stock held by the company's subsidiary)
