Investors Title Company Announces Fourth Quarter and Fiscal Year 2025 Results
CHAPEL HILL, N.C.--( BUSINESS WIRE)--Investors Title Company (Nasdaq: ITIC) today announced results for the fourth quarter ended December 31, 2025. The Company reported net income of $7.5 million, or $3.97 per diluted share, compared to $8.4 million, or $4.41 per diluted share, for the prior year period.
Revenues decreased 1.6% to $69.5 million, compared to $70.6 million in the prior year period, primarily due to a decline in net premiums written, partially offset by an increase in non-title services revenue. Although activity levels increased over the prior year, reported net premiums written decreased by $2.4 million, largely due to market-driven factors that favorably impacted the prior year accrual for unreported premiums. Non-title services revenue increased $975 thousand, mostly due to higher revenues from like-kind exchanges and title agency management services.
Operating expenses increased 0.2% to $59.9 million, compared to $59.8 million in the prior year period, primarily due to higher personnel costs and other expenses, partially offset by a decline in agent commissions. Personnel expenses rose primarily as a result of increased incentive compensation and contract services costs. Other expenses increased due to professional services charges associated with agency acquisitions and several projects in the current year quarter. Agent commissions decreased commensurate with the decline in agent premium volume. Other categories of operating expenses were generally consistent with the prior-year period.
Income before income taxes decreased to $9.6 million for the current year quarter, versus $10.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) decreased to $9.4 million for the current year quarter, versus $10.8 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 twelve months ended December 31, 2025, net income increased $4.1 million to $35.2 million, or $18.57 per diluted share, versus $31.1 million, or $16.43 per diluted share, for the prior year period. Revenues increased 5.6% to $272.8 million, up from $258.3 million for the prior year period. Operating expenses increased 4.3% to $228.2 million, compared to $218.8 million for the prior year period. Income before income taxes increased to $44.5 million for the current year, versus $39.5 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $41.4 million for the current year period, versus $34.8 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).
The increase in revenues for the twelve months ended December 31, 2025 was primarily attributable to higher net premiums written and increased escrow and title-related fees, driven by elevated real estate activity levels, as well as growth in non-title services revenue from like-kind exchanges and management services. Revenues were also positively impacted by a gain recognized on assets contributed to a joint venture in the second quarter of 2025, and by year-to-date variations in investment earnings.
The increase in operating expenses for the twelve months ended December 31, 2025 was largely driven by agent commissions and other expenses which correspond to a higher level of transaction volume, as well as increased professional services fees. These changes were partially offset by effective management of personnel, office, and technology expenses in connection with ongoing cost-management initiatives.
Chairman J. Allen Fine commented, "We are pleased to report strong results for 2025, with the highest level of profits since 2021. Title insurance volumes increased in most of our key markets over the prior year, with a slight improvement in mortgage rates providing modest increases in refinance activity. Additionally, revenues benefitted from ongoing efforts to expand our presence and grow market share.
"Our non-title businesses also performed well. We benefitted from a higher level of like-kind exchange business, as well as the addition of recurring management services revenue streams.
"During the year, we continued to make investments to strengthen our long-term operational efficiency, while controlling total expenses by managing personnel and office expenses. Beyond their impact on 2025 results, we believe these investments will enhance profitability in years to come."
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; a shutdown of the federal government; 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.
Investors Title Company and Subsidiaries
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2025 and 2024
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues:
Net premiums written
$
55,399
$
57,813
$
212,642
$
204,264
Escrow and other title-related fees
4,914
4,856
19,311
17,954
Non-title services
5,255
4,280
21,599
17,193
Interest and dividends
2,861
2,833
9,965
10,657
Other investment income
716
604
2,720
2,600
Net investment gains
195
43
3,177
4,683
Other
178
199
3,341
947
Total Revenues
69,518
70,628
272,755
258,298
Operating Expenses:
Commissions to agents
29,514
31,834
113,669
107,343
Provision for claims
995
1,047
4,607
4,530
Personnel expenses
18,986
17,720
72,215
72,513
Office and technology expenses
4,159
4,344
17,204
17,505
Other expenses
6,257
4,872
20,511
16,944
Total Operating Expenses
59,911
59,817
228,206
218,835
Income before Income Taxes
9,607
10,811
44,549
39,463
Provision for Income Taxes
2,090
2,449
9,369
8,390
Net Income
$
7,517
$
8,362
$
35,180
$
31,073
Basic Earnings per Common Share
$
3.98
$
4.44
$
18.64
$
16.48
Weighted Average Shares Outstanding – Basic
1,888
1,885
1,887
1,885
Diluted Earnings per Common Share
$
3.97
$
4.41
$
18.57
$
16.43
Weighted Average Shares Outstanding – Diluted
1,895
1,896
1,895
1,892
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and 2024
(in thousands)
(unaudited)
December 31,
December 31,
2025
2024
Assets
Cash and cash equivalents
$
20,838
$
24,654
Investments:
Fixed maturity securities, available-for-sale, at fair value
118,116
112,972
Equity securities, at fair value
41,481
39,893
Short-term investments
68,763
59,101
Other investments
23,446
20,578
Total investments
251,806
232,544
Premiums and fees receivable
17,126
16,054
Accrued interest and dividends
1,476
1,469
Prepaid expenses and other receivables
9,387
7,033
Property, net
29,397
27,935
Goodwill and other intangible assets, net
20,940
15,071
Lease assets
7,784
6,156
Other assets
2,706
2,655
Current income taxes recoverable
1,678
—
Total Assets
$
363,138
$
333,571
Liabilities and Stockholders’ Equity
Liabilities:
Reserve for claims
$
38,092
$
37,060
Accounts payable and accrued liabilities
41,525
34,011
Lease liabilities
8,050
6,356
Current income taxes payable
—
276
Deferred income taxes, net
7,171
4,095
Total liabilities
94,838
81,798
Stockholders’ Equity:
Common stock – no par value (10,000 authorized shares; 1,888 and 1,886 shares issued and outstanding as of December 31, 2025 and 2024, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)
—
—
Retained earnings
267,209
251,418
Accumulated other comprehensive income
1,091
355
Total stockholders’ equity
268,300
251,773
Total Liabilities and Stockholders’ Equity
$
363,138
$
333,571
Investors Title Company and Subsidiaries
Direct and Agency Net Premiums Written
For the Three and Twelve Months Ended December 31, 2025 and 2024
(in thousands)
(unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
%
2024
%
2025
%
2024
%
Direct
$
16,177
29.2
$
15,507
26.8
$
61,864
29.1
$
60,626
29.7
Agency
39,222
70.8
42,306
73.2
150,778
70.9
143,638
70.3
Total
$
55,399
100.0
$
57,813
100.0
$
212,642
100.0
$
204,264
100.0
Investors Title Company and Subsidiaries
Appendix A
Non-GAAP Measures Reconciliation
For the Three and Twelve Months Ended December 31, 2025 and 2024
(in thousands)
(unaudited)
Management uses various financial and operational measurements, including financial information not prepared in accordance with generally accepted accounting principles ("GAAP"), to analyze Company performance. This includes adjusting revenues to remove the impact of net investment gains and losses, which are recognized in net income under GAAP. Net investment gains and losses include realized gains and losses on sales of investment securities and changes in the estimated fair value of equity security investments. Management believes that these measures are useful to evaluate the Company's internal operational performance from period to period because they eliminate the effects of external market fluctuations. The Company also believes users of the financial results would benefit from having access to such information, and that certain of the Company’s peers make available similar information. This information should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies.
The following tables reconcile non-GAAP financial measurements used by Company management to the comparable measurements using GAAP:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
Total revenues (GAAP)
$
69,518
$
70,628
$
272,755
$
258,298
Subtract: Net investment gains
(195
)
(43
)
(3,177
)
(4,683
)
Adjusted revenues (non-GAAP)
$
69,323
$
70,585
$
269,578
$
253,615
Income before Income Taxes
Income before income taxes (GAAP)
$
9,607
$
10,811
$
44,549
$
39,463
Subtract: Net investment gains
(195
)
(43
)
(3,177
)
(4,683
)
Adjusted income before income taxes (non-GAAP)
$
9,412
$
10,768
$
41,372
$
34,780