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What changed in INVESTORS TITLE CO's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of INVESTORS TITLE CO's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+149 added−140 removedSource: 10-K (2026-03-16) vs 10-K (2025-03-17)

Top changes in INVESTORS TITLE CO's 2025 10-K

149 paragraphs added · 140 removed · 124 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeFrom time to time, these laws are subject to review and changes, which may negatively affect the demand for tax-deferred exchanges in general, and consequently, the revenues and profitability of the Company’s exchange services division. Management Services, Investment Management and Trust Services The Company’s other lines of business include services offered by wholly owned subsidiaries ITMS and Investors Trust.
Biggest changeFrom time to time, these laws are subject to review and changes, which may negatively affect the demand for tax-deferred exchanges in general, and consequently, the revenues and profitability of the Company’s exchange services division.
In North Carolina and Texas, the Company’s title insurance commitments and policies are issued directly and through agents. In South Carolina, Georgia, Florida and other states, title policies are primarily issued through agents. For a description of the level of net premiums written geographically for significant states, refer to “Item 7.
In North Carolina and Texas, the Company’s title insurance commitments and policies are issued directly and through agents. In Georgia, South Carolina, Florida and other states, title policies are primarily issued through agents. For a description of the level of net premiums written geographically for significant states, refer to “Item 7.
Equity securities at December 31, 2024 and 2023 consisted of investments in various industry groups. The Company’s investment portfolio did not include any significant investments in banks, trust or insurance companies at December 31, 2024 or 2023. Short-term investments, which consist primarily of money market funds and U.S.
Equity securities at December 31, 2025 and 2024 consisted of investments in various industry groups. The Company’s investment portfolio did not include any significant investments in banks, trust or insurance companies at December 31, 2025 or 2024. Short-term investments, which consist primarily of money market funds and U.S.
At December 31, 2024, both ITIC and NITIC met the statutory premium reserve requirements and the minimum capital and surplus requirements of the states where they are licensed. A substantial portion of the assets of the Company’s title insurance subsidiaries consists of their portfolios of investment securities.
At December 31, 2025, both ITIC and NITIC met the statutory premium reserve requirements and the minimum capital and surplus requirements of the states where they are licensed. A substantial portion of the assets of the Company’s title insurance subsidiaries consists of their portfolios of investment securities.
Executive Officers of the Company Following is information regarding the executive officers of the Company as of February 21, 2025. Each officer is appointed at the annual meeting of the Board of Directors to serve until the next annual meeting of the Board or until his or her respective successor has been elected and qualified.
Executive Officers of the Company Following is information regarding the executive officers of the Company as of February 21, 2026. Each officer is appointed at the annual meeting of the Board of Directors to serve until the next annual meeting of the Board or until his or her respective successor has been elected and qualified.
In addition, at December 31, 2024 and 2023, the Company held investments that are accounted for using the equity method and measurement alternative method (refer to Note 1 of the Notes to the Consolidated Financial Statements).
In addition, at December 31, 2025 and 2024, the Company held investments that are accounted for using the equity method and measurement alternative method (refer to Note 1 of the Notes to the Consolidated Financial Statements).
EMPLOYEES AND HUMAN CAPITAL The Company and its subsidiaries had 521 full-time employees and 29 part-time employees as of December 31, 2024. None of the employees are covered by any collective bargaining agreements. Management considers its relationship with its employees to be favorable. Recruiting and retaining qualified personnel and key talent is important to the Company’s success.
EMPLOYEES AND HUMAN CAPITAL The Company and its subsidiaries had 548 full-time employees and 26 part-time employees as of December 31, 2025. None of the employees are covered by any collective bargaining agreements. Management considers its relationship with its employees to be favorable. Recruiting and retaining qualified personnel and key talent is important to the Company’s success.
Treasury bills, have an original maturity of one year or less, are carried at cost, which approximates fair value due to the short duration to maturity.
Treasury bills, original maturities of one year or less and are carried at cost, which approximates fair value due to the short duration to maturity.
Name Age Position with Registrant J. Allen Fine 90 Chief Executive Officer and Chairman of the Board James A. Fine, Jr. 62 President, Treasurer, Chief Financial Officer, Chief Accounting Officer and Director W. Morris Fine 58 Executive Vice President, Secretary and Director J.
Name Age Position with Registrant J. Allen Fine 91 Chief Executive Officer and Chairman of the Board James A. Fine, Jr. 63 President, Treasurer, Chief Financial Officer, Chief Accounting Officer and Director W. Morris Fine 59 Executive Vice President, Secretary and Director J.
The CFPB has the authority to identify and address, through regulation, unfair, deceptive and abusive practices in the mortgage industry and certain other settlement service industries. Leadership transitions at the CFPB under the new presidential administration may result in changes that could affect the title insurance industry. 8 Increased regulatory involvement may affect the Company and its service providers.
The CFPB has the authority to identify and address, through regulation, unfair, deceptive and abusive practices in the mortgage industry and certain other settlement service industries. Leadership transitions at the CFPB under the current presidential administration may result in changes that could affect the title insurance industry.
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Given that income is derived from a portion of the interest earned on client deposits held by the Company, interest rate fluctuations may also impact the profitability of the Company’s exchange services division. Management Services, Investment Management and Trust Services The Company’s other lines of business include services offered by wholly owned subsidiaries ITMS and Investors Trust.
Added
During 2025, through a number of public statements and ongoing staff reductions, the CFPB has significantly cut back its supervisory and enforcement activities. In addition, the CFPB is subject to a lawsuit regarding funding of the agency. 8 Increased regulatory involvement may affect the Company and its service providers.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThere is no guarantee the Company, whether through the Federal Deposit Insurance Corporation or otherwise, would recover the funds it has deposited should one or more of the financial institutions at which the Company maintains deposits fail.
Biggest changeThere is no guarantee the Company, whether through the Federal Deposit Insurance Corporation or otherwise, would recover the funds it has deposited should one or more of the financial institutions at which the Company maintains deposits fail. 15 RISKS RELATED TO CYBERSECURITY, TECHNOLOGY AND RISK MANAGEMENT Breaches and failures of, and other disruptions to, information technology systems of the Company or its service providers may disrupt the Company’s operations, result in monetary losses and harm the Company’s reputation.
The Company relies upon the North Carolina, Texas, South Carolina, Georgia and Florida markets for a significant portion of its premiums. Changes in the economic or regulatory environments in these states could have an adverse impact on the Company. North Carolina, Texas, South Carolina, Georgia, and Florida are the largest sources of premium revenue for the Company’s title insurance subsidiaries.
The Company relies upon the North Carolina, Texas, Georgia, South Carolina, and Florida markets for a significant portion of its premiums. Changes in the economic or regulatory environments in these states could have an adverse impact on the Company. North Carolina, Texas, Georgia, South Carolina, and Florida are the largest sources of premium revenue for the Company’s title insurance subsidiaries.
Non-public personal information may include, but is not limited to, names, addresses, social security numbers, and banking information. 16 Additionally, future or past business transactions (such as acquisitions or integrations) could expose the Company to additional cybersecurity risks and vulnerabilities, as the Company’s systems could be negatively affected by vulnerabilities present in acquired or integrated entities’ systems and technologies.
Non-public personal information may include, but is not limited to, names, addresses, social security numbers, and banking information. Additionally, future or past business transactions (such as acquisitions or integrations) could expose the Company to additional cybersecurity risks and vulnerabilities, as the Company’s systems could be negatively affected by vulnerabilities present in acquired or integrated entities’ systems and technologies.
The risk of loss is increased during periods of economic uncertainty and tight credit markets as these factors could limit the ability of some issuers to repay their debt obligations. 15 Fixed maturity securities and equity securities are carried at estimated fair value on the Company’s Consolidated Balance Sheets.
The risk of loss is increased during periods of economic uncertainty and tight credit markets as these factors could limit the ability of some issuers to repay their debt obligations. Fixed maturity securities and equity securities are carried at estimated fair value on the Company’s Consolidated Balance Sheets.
Unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets. As a result of acquisition activity, the Company has goodwill and other intangible assets that comprise approximately 4.5% of total assets as of December 31, 2024.
Unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets. As a result of acquisition activity, the Company has goodwill and other intangible assets that comprise approximately 5.8% of total assets as of December 31, 2025.
As of December 31, 2024, approximat ely $118.2 million of c onsolidated shareholders’ equity represented the net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the Company. In general, dividends in excess of prescribed limits are deemed “extraordinary” and require prior approval by the appropriate regulatory body.
As of December 31, 2025, approximat ely $121.4 million o f c onsolidated shareholders’ equity represented the net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the Company. In general, dividends in excess of prescribed limits are deemed “extraordinary” and require prior approval by the appropriate regulatory body.
In 2024, these states represented 34.5%, 27.9%, 8.8%, 7.6% and 7.2% of total premiums written by the Company, respectively. A decrease in the level of real estate activity in these states, whether driven by weak economic conditions, changes in regulatory environments or other factors that influence demand, could have a negative impact on the Company’s financial results.
In 2025, these states represented 35.3%, 27.1%, 8.6%, 8.1%, and 6.4% of total premiums written by the Company, respectively. A decrease in the level of real estate activity in these states, whether driven by weak economic conditions, changes in regulatory environments or other factors that influence demand, could have a negative impact on the Company’s financial results.
The manner and extent to which the CFPB will implement new regulations is not fully known; however, any new regulations implemented could result in changes to internal processes, including changes to systems and forms. Leadership transitions at the CFPB under the new presidential administration may result in changes that could affect the title insurance industry.
The manner and extent to which the CFPB will implement new regulations is not fully known; however, any new regulations implemented could result in changes to internal processes, including changes to systems and forms. Leadership changes at the CFPB may result in policy or regulatory shifts that could impact the title insurance industry.
The controls and procedures used by the Company to prevent transfer errors and fraud may prove inadequate, resulting in financial losses, reputational harm, loss of customers or other adverse consequences which could be material to the Company. The Company may encounter difficulties managing system or technological changes, which could adversely affect its financial and operating results.
The controls and procedures used by the Company to prevent transfer errors and fraud may prove inadequate, resulting in financial losses, reputational harm, loss of customers or other adverse consequences which could be material to the Company. Failure to timely adopt, effectively implement or appropriately govern new technologies could adversely affect the Company’s financial and operating results.
The Company’s coverage under its cyber liability insurance policy may be insufficient to cover all losses that the Company may incur in connection with an unauthorized disclosure of non-public information.
As cybercriminals continue to become more sophisticated, the costs to insure against cyberattacks have risen and may continue to rise in the future. The Company’s coverage under its cyber liability insurance policy may be insufficient to cover all losses that the Company may incur in connection with an unauthorized disclosure of non-public information.
Such an event could potentially result in a breach of contract, and any required notifications could result in, among other things, the loss of customers, negative publicity, distraction of management, fines, lawsuits for breach of contract, regulatory inquiries or involvement and a decline in sales.
Such an event could potentially result in a breach of contract, and any required notifications could result in, among other things, the loss of customers, negative publicity, distraction of management, fines, lawsuits for breach of contract, regulatory inquiries or involvement and a decline in sales. 16 The Company seeks to mitigate the financial risk associated with unauthorized disclosure of non-public information by maintaining cyber liability insurance coverage.
Technological changes in the title insurance industry are driven primarily by evolution in technology, competitive factors and regulatory changes. These changes have resulted in faster information delivery and efficient, highly automated production processes. The inability of the Company to manage, develop or successfully implement new systems or technological changes could negatively impact profitability.
Technological developments in the title insurance industry are driven by advances in technology, competitive dynamics, and regulatory requirements. These developments have accelerated the delivery of information and increased reliance on automated and highly efficient production processes, including the growing use of automation and artificial intelligence (“AI”).
Removed
Changes being proposed and implemented by the new presidential administration are expected to fundamentally alter the size and scope of the federal government through reduction of the federal work force and the potential reduction, change in direction or possible elimination of, various government agencies and programs.
Added
The Company’s competitiveness depends, in part, on its ability to evaluate, adopt, integrate, and maintain technologies in ways that meet evolving industry standards, regulatory expectations, and customer preferences. Investments in new technologies are significant and present implementation, operational, and compliance challenges.
Removed
The new presidential administration is proposing and seeking to implement significant changes to the size and scope of the federal government.
Added
There can be no assurance that technologies the Company acquires or develops will function as intended, deliver expected benefits, remain secure, or be accepted by customers, regulators, or business partners. Failure to effectively manage technological change could disrupt operations, increase costs, reduce service quality, or harm the Company’s reputation. The use of AI presents additional risks.
Removed
These changes may include reductions to government funding of various programs and agencies, alteration of the payment systems it uses, changes in policy direction, reduction and possible elimination of various federal agencies and bureaus and reduction of the overall federal government workforce.
Added
AI tools, including those provided by third parties, may rely on data that is inaccurate, biased, or subject to legal or contractual restrictions, and there may be limited insight into the controls used in their development. AI applications may produce inaccurate outputs, disclose confidential information, reflect unintended bias, or infringe intellectual property rights.
Removed
These changes, if implemented and taken as a whole, appear unprecedented and may have impacts on the economy as a whole or different regions or segments of the economy or asset classes which are difficult to predict at this time. Accordingly, it is possible that such comprehensive changes could adversely affect the Company’s results of operations and financial condition.
Added
The complexity of AI systems may also make governance, oversight, and compliance with evolving legal and regulatory requirements more difficult, potentially increasing costs and exposure to liability. The inability of the Company to develop, implement, or manage new systems or technological changes could negatively impact the Company and its results of operations.
Removed
RISKS RELATED TO CYBERSECURITY, TECHNOLOGY AND RISK MANAGEMENT Breaches and failures of, and other disruptions to, information technology systems of the Company or its service providers may disrupt the Company’s operations, result in monetary losses and harm the Company’s reputation.
Removed
The Company seeks to mitigate the financial risk associated with unauthorized disclosure of non-public information by maintaining cyber liability insurance coverage. As cybercriminals continue to become more sophisticated, the costs to insure against cyberattacks have risen and may continue to rise in the future.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur risk management strategy encompasses a range of policies, procedures, and controls designed to safeguard our information assets. Key elements of our risk management and control framework include Information Technology (“IT”) policies and procedures, employee training, annual disaster recovery tests, and penetration tests performed by third-party experts.
Biggest changeOur risk management strategy encompasses a range of policies, procedures, and controls designed to safeguard our information assets. Key elements of our risk management and control framework include IT policies and procedures, employee training, annual disaster recovery tests, and penetration tests performed by third-party experts.
As part of our commitment to maintaining a strong defense against cyber threats, the Company engages third-party experts to conduct regular penetration tests on our network. These tests are intended to simulate real-world cyber-attacks, allowing us to identify vulnerabilities and address them proactively.
As part of our commitment to maintaining a strong defense against cyber threats, the Company engages third-party experts to conduct regular penetration tests on our network. These tests are intended to simulate real-world cyberattacks, allowing us to identify vulnerabilities and address them proactively.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAdditional information about the Company’s legal proceedings is included in Note 11 of the Notes to the Consolidated Financial Statements.
Biggest changeAdditional information about the Company’s legal proceedings is included in Note 11 of the Notes to the Consolidated Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES Not Applicable. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and the existing alternative uses for such cash.
Biggest changeThe Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and the existing alternative uses for such cash. 20 Performance Graph Presented below is a line graph comparing the yearly percentage change in the cumulative total return on the Company’s common stock to the cumulative return of the NASDAQ Composite Index and a peer group consisting of certain companies in the title insurance industry (SIC Code 6361) for the period commencing December 31, 2020 and ending December 31, 2025.
The following table provides information about purchases by the Company (and all affiliated purchasers), during the quarter ended December 31, 2024, of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act: Issuer Purchases of Equity Securities (unrounded) Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Maximum Number of Shares that May Yet Be Purchased Under the Plan (1) Beginning of period 413,177 October 1 through October 31, 2024 — $ — — 413,177 November 1 through November 30, 2024 — — — 413,177 December 1 through December 31, 2024 — — — 413,177 Total — $ — — 413,177 (1) On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company’s repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval.
The following table provides information about purchases by the Company (and all affiliated purchasers), during the quarter ended December 31, 2025, of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act: Issuer Purchases of Equity Securities (unrounded) Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Maximum Number of Shares that May Yet Be Purchased Under the Plan (1) Beginning of period 413,177 October 1 through October 31, 2025 — $ — — 413,177 November 1 through November 30, 2025 — — — 413,177 December 1 through December 31, 2025 — — — 413,177 Total — $ — — 413,177 (1) On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company’s repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Data and Dividends The common stock of the Company is traded under the symbol “ITIC” on the Nasdaq Stock Market LLC. The number of record holders of common stock at December 31, 2024 was 199.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock Data and Dividends The common stock of the Company is traded under the symbol “ITIC” on the Nasdaq Stock Market LLC. The number of record holders of common stock at December 31, 2025 was 191.
During the quarter and year ended December 31, 2024, the Company purchased 0 and 7,039 shares of common stock under the Company’s repurchase plan, respectively. As of December 31, 2024, there was authority remaining under the plan to purchase up to an aggregate of 413,177 shares of the Company’s common stock.
During the quarter and year ended December 31, 2025, the Company purchased no shares of common stock under the Company’s repurchase plan, respectively. As of December 31, 2025, there was authority remaining under the plan to purchase up to an aggregate of 413,177 shares of the Company’s common stock.
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The graph assumes that $100 was invested in the Company’s common stock, the S&P Small Cap 600 Index and the peer group on December 31, 2020 and that all dividends were reinvested on a quarterly basis.
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Returns for the companies included in the peer group have been weighted on the basis of the total market capitalization for each company. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Investors Title Company $ 100.00 $ 140.95 $ 108.78 $ 124.27 $ 192.64 $ 211.45 S&P Small Cap 600 Index 100.00 126.82 106.40 123.48 134.22 142.30 Peer Group Index 100.00 145.79 107.18 147.52 162.78 169.22 The Peer Group consists of Fidelity National Financial, Inc.
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(FNF), Stewart Information Services Corporation (STC) and First American Financial Corporation (FAF). ITEM 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe Company is carefully monitoring inflation, changes in market conditions and the regulatory environment resulting from changes in the U.S. presidential administrations and control of Congress, geopolitical and military conflicts, and other trends that could potentially result in material adverse liquidity changes, and will continually assess its capital allocation strategy, including decisions relating to payment of dividends, repurchasing the Company’s common stock and/or conserving cash. 33 Purchase of Company Stock: On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company’s repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval.
Biggest changeThe Company is carefully monitoring inflation, changes in market conditions and the regulatory environment resulting from changes in the U.S. presidential administrations and control of Congress, geopolitical and military conflicts, and other trends that could potentially result in material adverse liquidity changes, and will continually assess its capital allocation strategy, including decisions relating to payment of dividends, repurchasing the Company’s common stock and/or conserving cash.
Any impairment that is not credit-related is recognized in other comprehensive (loss) income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) in the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings.
Any impairment that is not credit-related is recognized in other comprehensive income (loss), net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) in the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings.
Real estate activity is affected by a number of factors, including the availability of mortgage credit, the cost of real estate, consumer confidence, employment and family income levels, and general United States economic conditions. Interest rate volatility is also an important factor in the level of residential and commercial real estate activity.
Real estate activity is affected by a number of factors, including the availability of mortgage credit, the cost of real estate, consumer confidence, employment and family income levels, and general United States economic conditions. Interest rate volatility is also an important factor in the level of residential and commercial real estate activity.
Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, claim estimates are subject to variability and future payments could increase or decrease from these estimated amounts in the future. ITIC, a wholly owned subsidiary of the Company, has entered into employment agreements with certain executive officers.
Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, claim estimates are subject to variability and future payments could increase or decrease from these estimated amounts in the future. 34 ITIC, a wholly owned subsidiary of the Company, has entered into employment agreements with certain executive officers.
Information regarding the components of income tax expense and the items included in the reconciliation of the effective rate with the federal statutory rate can be found in Note 8 to the Consolidated Financial Statements. After-Tax Profit Margin The Company’s after-tax profit margin varies according to a number of factors, including the volume and type of real estate activity.
Information regarding the components of income tax expense and the items included in the reconciliation of the effective rate with the federal statutory rate can be found in Note 8 to the Consolidated Financial Statements. 32 After-Tax Profit Margin The Company’s after-tax profit margin varies according to a number of factors, including the volume and type of real estate activity.
Despite the variability of such estimates, management believes that, based on historical claims experience and actuarial analysis, the Company’s reserve for claims is adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2024. The ultimate settlement of claims will likely vary from the reserve estimates included in the accompanying Consolidated Financial Statements.
Despite the variability of such estimates, management believes that, based on historical claims experience and actuarial analysis, the Company’s reserve for claims is adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2025. The ultimate settlement of claims will likely vary from the reserve estimates included in the accompanying Consolidated Financial Statements.
Management believes unrealized losses on the remaining fixed maturity securities at December 31, 2024 are not credit-related. The securities in the Company’s investment portfolio are subject to economic conditions and market risks. The Company considers relevant facts and circumstances in evaluating whether a credit or interest-related impairment of a fixed maturity security has occurred.
Management believes unrealized losses on the remaining fixed maturity securities at December 31, 2025 are not credit-related. The securities in the Company’s investment portfolio are subject to economic conditions and market risks. The Company considers relevant facts and circumstances in evaluating whether a credit or interest-related impairment of a fixed maturity security has occurred.
These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. It is not the general practice of the Company to enter into off-balance sheet arrangements or issue guarantees to third parties. The Company does not have any material source of liquidity or financing that involves off-balance sheet arrangements.
These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. It is not the general practice of the Com pany to enter into off-balance sheet arrangements or issue guarantees to third parties. The Company does not have any material source of liquidity or financing that involves off-balance sheet arrangements.
The slight increase in office and technology expenses in 2024, compared with 2023, was primarily due to an increase in technology expenses partially offset by a decline in office expenses. Other Expenses: Other expenses primarily include business development expenses, premium-related taxes and licensing, professional services, title and service fees, amortization of intangible assets and other general expenses.
The increase in office and technology expenses in 2024, compared with 2023, was primarily due to an increase in technology expenses partially offset by a decline in office expenses. 31 Other Expenses: Other expenses primarily include business development expenses, premium-related taxes and licensing, professional services, title and service fees, amortization of intangible assets and other general expenses.
The Company believes it is more likely than not that the tax benefits associated with recognized impairments and unrecognized losses recorded through December 31, 2024 will be realized. However, this judgment could be impacted by further market fluctuations.
The Company believes it is more likely than not that the tax benefits associated with recognized impairments and unrecognized losses recorded through December 31, 2025 will be realized. However, this judgment could be impacted by further market fluctuations.
Refer to Note 3 to the Consolidated Financial Statements for further information about the Company’s valuation techniques. 26 Deferred Taxes The Company recorded net deferred tax liabilities at December 31, 2024 and 2023.
Refer to Note 3 to the Consolidated Financial Statements for further information about the Company’s valuation techniques. 26 Deferred Taxes The Company recorded net deferred tax liabilities at December 31, 2025 and 2024.
Other investment income was $2.6 million in 2024, compared with $3.8 million in 2023. Changes in other investment income are impacted by fluctuations in the carrying value of the underlying investment and/or distributions received.
Other investment income was $2.7 million in 2025, compared with $2.6 million in 2024 and $3.8 million in 2023. Changes in other investment income are impacted by fluctuations in the carrying value of the underlying investment and/or distributions received.
Net Investment Gains Net investment gains include realized gains and losses on the sale of investment securities and changes in the estimated fair value of equity security investments. Net investment gains were $4.7 million and $3.4 million in 2024 and 2023, respectively.
Net Investment Gains Net investment gains include realized gains and losses on the sale of investment securities and changes in the estimated fair value of equity security investments. Net investment gains were $3.2 million, $4.7 million and $3.4 million in 2025, 2024 and 2023, respectively.
The effective income tax rates for both 2024 and 2023 differ from the U.S. federal statutory income tax rate of 21% primarily due to the effects of deferred tax adjustments, tax credits, tax-exempt income and state taxes.
The effective income tax rates for 2025, 2024, and 2023 differ from the U.S. federal statutory income tax rate of 21% primarily due to the effects of deferred tax adjustments, tax credits, tax-exempt income and state taxes.
The Company believes that its significant working capital position and management of operating expenses will aid its ability to manage cash resources through fluctuations in the real estate market. Cash Flows: Net cash flows provided by operating activities were $29.8 million and $7.4 million for 2024 and 2023, respectively.
The Company believes that its significant working capital position and management of operating expenses will aid its ability to manage cash resources through fluctuations in the real estate market. Cash Flows: Net cash flows provided by operating activities were $30.9 million, $29.8 million, and $7.4 million for 2025, 2024, and 2023, respectively.
The total reserve for all losses incurred but unpaid as of December 31, 2024 is represented by the reserve for claims totaling $37.1 million in the Consolidated Balance Sheets included in Item 8 of this Annual Report on Form 10-K (the “Consolidated Balance Sheets”).
The total reserve for all losses incurred but unpaid as of December 31, 2025 is represented by the reserve for claims totaling $38.1 million in the Consolidated Balance Sheets included in Item 8 of this Annual Report on Form 10-K (the “Consolidated Balance Sheets”).
The amounts accrued for these agreements at December 31, 2024 and 2023 were approximately $15.4 million and $15.2 million, respectively, which include postretirement compensation and health benefits, and were calculated based on the terms of the contracts. These executive contracts are accounted for on an individual contract basis.
The amounts accrued for these agreements at December 31, 2025 and 2024 were approximately $15.6 million and $15.4 million, respectively, which include postretirement compensation and health benefits, and were calculated based on the terms of the contracts. These executive contracts are accounted for on an individual contract basis.
The total of undiscounted future minimum lease payments under leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2024 is $4.4 million, which includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended.
The total of undiscounted future minimum lease payments under leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2025 is $7.2 million, which includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended.
As a result of the interaction of these factors and considerations, the net realized investment gain or loss can vary significantly from period to period. The net realized investment gains were $5.0 million for 2024, compared with $15.6 million for 2023.
As a result of the interaction of these factors and considerations, the net realized investment gain or loss can vary significantly from period to period. The net realized investment gains were $4.2 million for 2025, compared with $5.0 million in 2024 and $15.6 million in 2023.
Due to the rapidly changing environment brought on by inflationary pressures, inventory constraints, geopolitical and military conflicts, and changes in government regulations and policy, including as a result of the recent change in presidential administration, these projections and the impact of actual future developments on the Company could be subject to material change.
Due to the rapidly changing environment brought on by inflationary pressures, inventory constraints, geopolitical and military conflicts, and changes in government regulations and policy, including as a result of the policies implemented by the Trump administration, these projections and the impact of actual future developments on the Company could be subject to material change.
In the Company's direct operations, the Company issues a title insurance policy and retains the entire premium, as no commissions are recognized in connection with these policies. Net premiums written from direct operations increased 4.4% in 2024 to $60.6 million, compared with $58.1 million in 2023.
In the Company's direct operations, the Company issues a title insurance policy and retains the entire premium, as no commissions are recognized in connection with these policies. Net premiums written from direct operations increased 2.0% in 2025 to $61.9 million, compared with $60.6 million in 2024, and increased 4.4% in 2024, compared with $58.1 million in 2023.
(in thousands, except percentages) 2024 % 2023 % Direct $ 60,626 29.7 $ 58,063 33.9 Agency 143,638 70.3 113,095 66.1 Total $ 204,264 100.0 $ 171,158 100.0 Direct Net Premiums : The Company's direct business consists of operations at the home office, branch offices, and wholly owned title insurance agencies.
(in thousands, except percentages) 2025 % 2024 % 2023 % Direct $ 61,864 29.1 $ 60,626 29.7 $ 58,063 33.9 Agency 150,778 70.9 143,638 70.3 113,095 66.1 Total $ 212,642 100.0 $ 204,264 100.0 $ 171,158 100.0 Direct Net Premiums : The Company's direct business consists of operations at the home office, branch offices, and wholly owned title insurance agencies.
Although the federal funds rate does not directly impact mortgage interest rates, it can have a significant influence as lenders pass on the costs of rate increases to consumers. Higher mortgage interest rates have impacted the demand and pricing of real estate.
Although the federal funds rate does not directly impact mortgage interest rates, it can have a significant influence as lenders pass on the costs of rate increases to consumers. The current period of elevated mortgage interest rates has impacted the demand and pricing of real estate.
Of that total, approximately $2.7 million was reserved for specific claims which have been reported to the Company, and approximately $34.4 million was reserved for IBNR claims. A provision for estimated future claims payments is recorded at the time the related policy revenue is recorded. The Company records the claims provision estimate as a percentage of net premiums written.
Of that total, approximately $3.5 million was reserved for specific claims which have been reported to the Company, and approximately $34.6 million was reserved for IBNR claims. A provision for estimated future claims payments is recorded at the time the related policy revenue is recorded. The Company records the claims provision estimate as a percentage of net premiums written.
As of December 31, 2024, approximately $118.2 million of the consolidated shareholders’ equity represented net assets of the Company’s subsidiaries that are restricted by regulation from being transferred in the form of dividends, loans or advances to the parent company without prior approval from the respective state insurance department.
As of December 31, 2025, approximately $121.4 million of the consolidated shareholders’ equity represented net assets of the Company’s subsidiaries that are restricted by regulation from being transferred in the form of dividends, loans or advances to the parent company without prior approval from the respective state insurance department.
Operating expenses increased 10.2% in 2024, compared with 2023, primarily due to an increase in commissions to agents, partially offset by a decrease in personnel expenses. Following is a summary of the Company’s operating expenses for 2024 and 2023.
Operating expenses increased 4.3% in 2025, compared with 2024, primarily due to increases in commissions to agents and other expenses. Operating expenses increased 10.2% in 2024, compared with 2023, primarily due to an increase in commissions to agents, partially offset by a decrease in personnel expenses. Following is a summary of the Company’s operating expenses for 2025, 2024, and 2023.
Cash held by the Company for these purposes was approximately $55.0 million and $28.2 million as of December 31, 2024 and 2023, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.
Cash held by the Company for these purposes was approximately $62.6 million and $55.0 million as of December 31, 2025 and 2024, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.
The Company believes, however, that amounts available for transfer from the insurance and other subsidiaries are adequate to meet the Company’s current operating needs. During 2025, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators total approximately $24.8 million.
The Company believes, however, that amounts available for transfer from the insurance and other subsidiaries are adequate to meet the Company’s current operating needs. During 2026, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators total approximately $28.7 million.
Non-title services revenue, investment-related revenues and other revenues are discussed separately below. Net Premiums Written Net premiums written increased 19.3% in 2024 to $204.3 million, compared with $171.2 million in 2023.
Non-title services revenue, investment-related revenues and other revenues are discussed separately below. Net Premiums Written Net premiums written increased 4.1% in 2025 to $212.6 million, compared with $204.3 million in 2024, and increased 19.3% in 2024, compared with $171.2 million in 2023.
If one or more of the variables or assumptions used changed such that the Company’s recorded loss ratio, or loss provision as a percentage of net title premiums, increased or decreased three loss ratio percentage points, the impact on after-tax income for the year ended December 31, 2024 would be as follows: (in thousands) Increase in loss ratio of three percentage points $ (4,841) Decrease in loss ratio of three percentage points $ 4,841 Company management believes that using a sensitivity of three loss percentage points for the loss ratio provides a reasonable benchmark for analysis of the calendar year loss provision of the Company based on historical loss ratios by year.
If one or more of the variables or assumptions used were to change such that the Company’s recorded loss ratio, or loss provision as a percentage of net title premiums, increased or decreased three loss ratio percentage points, the impact on after-tax income for the year ended December 31, 2025 would be as follows: (in thousands) Increase in loss ratio of three percentage points $ (5,040) Decrease in loss ratio of three percentage points $ 5,040 Company management believes that using a sensitivity of three loss percentage points for the loss ratio provides a reasonable benchmark for analysis of the calendar year loss provision of the Company based on historical loss ratios by year.
Like-kind exchange deposits and reverse exchange property held by the Company for the purpose of completing such transactions totaled approximately $323.5 million and $263.7 million as of December 31, 2024 and 2023, respectively. These exchange deposits are held at third-party financial institutions.
Like-kind exchange deposits and reverse exchange property held by the Company for the purpose of completing such transactions totaled approximately $269.3 million and $323.5 million as of December 31, 2025 and 2024, respectively. These exchange deposits are held at third-party financial institutions.
Results of Operations The following table presents certain Consolidated Statements of Operations data for the years ended December 31, 2024 and 2023: For the Years Ended December 31, (in thousands) 2024 2023 Revenues: Net premiums written $ 204,264 $ 171,158 Escrow and other title-related fees 17,954 17,109 Non-title services 17,193 19,237 Interest and dividends 10,657 9,055 Other investment income 2,600 3,752 Net investment gains 4,683 3,448 Other 947 991 Total Revenues 258,298 224,750 Operating Expenses: Commissions to agents 107,343 83,374 Provision for claims 4,530 4,762 Personnel expenses 72,513 76,706 Office and technology expenses 17,505 17,359 Other expenses 16,944 16,319 Total Operating Expenses 218,835 198,520 Income before Income Taxes 39,463 26,230 Provision for Income Taxes 8,390 4,544 Net Income $ 31,073 $ 21,686 27 Revenues The following is a summary of the Company’s total revenue broken out between the title insurance segment, exchange services segment and all other income with intersegment eliminations netted with each segment; therefore, the individual segment amounts will not agree to Note 12 in the accompanying Consolidated Financial Statements.
Results of Operations The following table presents certain Consolidated Statements of Operations data for the years ended December 31, 2025, 2024, and 2023: For the Years Ended December 31, (in thousands) 2025 2024 2023 Revenues: Net premiums written $ 212,642 $ 204,264 $ 171,158 Escrow and other title-related fees 19,311 17,954 17,109 Non-title services 21,599 17,193 19,237 Interest and dividends 9,965 10,657 9,055 Other investment income 2,720 2,600 3,752 Net investment gains 3,177 4,683 3,448 Other 3,341 947 991 Total Revenues 272,755 258,298 224,750 Operating Expenses: Commissions to agents 113,669 107,343 83,374 Provision for claims 4,607 4,530 4,762 Personnel expenses 72,215 72,513 76,706 Office and technology expenses 17,204 17,505 17,359 Other expenses 20,511 16,944 16,319 Total Operating Expenses 228,206 218,835 198,520 Income before Income Taxes 44,549 39,463 26,230 Provision for Income Taxes 9,369 8,390 4,544 Net Income $ 35,180 $ 31,073 $ 21,686 27 Revenues The following is a summary of the Company’s total revenue broken out between the title insurance segment, exchange services segment and all other income with intersegment eliminations netted with each segment; therefore, the individual segment amounts will not agree to Note 12 in the accompanying Consolidated Financial Statements.
On a consolidated basis, personnel expenses as a percentage of total revenues were 28.1% and 34.1% in 2024 and 2023, respectively. Office and Technology Expenses: Office and technology expenses primarily include facilities expenses, software and hardware expenses, depreciation expense, telecommunications expenses, and business insurance. Office and technology expenses were $17.5 million and $17.4 million for 2024 and 2023, respectively.
On a consolidated basis, personnel expenses as a percentage of total revenues were 26.5%, 28.1%, and 34.1% in 2025, 2024, and 2023, respectively. Office and Technology Expenses: Office and technology expenses primarily include facilities expenses, software and hardware expenses, depreciation expense, telecommunications expenses, and business insurance.
(in thousands, except percentages) 2024 % 2023 % Title Insurance $ 207,189 94.7 $ 187,333 94.4 Exchange Services 2,665 1.2 2,414 1.2 All Other 8,981 4.1 8,773 4.4 Total $ 218,835 100.0 $ 198,520 100.0 Total Company Personnel Expenses : Personnel expenses include base salaries, benefits and payroll taxes, bonuses paid to employees and contract labor expenses.
(in thousands, except percentages) 2025 % 2024 % 2023 % Title Insurance $ 211,642 92.7 $ 207,189 94.7 $ 187,333 94.4 Exchange Services 2,729 1.2 2,665 1.2 2,414 1.2 All Other 13,835 6.1 8,981 4.1 8,773 4.4 Total $ 228,206 100.0 $ 218,835 100.0 $ 198,520 100.0 Total Company Personnel Expenses : Personnel expenses include base salaries, benefits and payroll taxes, bonuses paid to employees and contract labor expenses.
Exchange services revenue includes earnings on these deposits; therefore, investment income is shown as non-title services rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments. 34 External assets under management of Investors Trust Company totaled approximately $707.8 million and $663.9 million as of December 31, 2024 and 2023, respectively.
Exchange services revenue includes earnings on these deposits; therefore, investment income is shown as non-title services rather than invest ment income. These like-kind exchange funds are primarily invested in money market and other short-term investments. External assets under management of Investors Trust Company totaled approximately $741.0 million and $707.8 million as of December 31, 2025 and 2024, respectively.
The net realized gains in 2024 and 2023 included impairment charges of $74 thousand and $201 thousand, respectively, for certain fixed maturity securities where the intent to hold had changed. There was also an impairment charge of $309 thousand in 2024 related to a write-down of other assets and investments.
The net realized gains in 2025, 2024, and 2023 included impairment charges of $0, $74 thousand and $201 thousand, respectively, for certain fixed maturity securities where the intent to hold had changed. There were also impairment charges of $469 thousand and $309 thousand in 2025 and 2024, respectively, related to a write-down of other assets and investments.
Securities purchased may include a combination of taxable or tax-exempt fixed maturity securities and equity securities. The Company also invests in short-term investments that typically include money market funds, U.S. Treasury bills, commercial paper and certificates of deposit.
Securities purchased may include a combination of taxable or tax-exempt fixed maturity securities and equity securities. The Company also invests in short-term investments that typically include money market funds, U.S. Treasury bills, commercial paper and certificates of deposit. The Company strives to maintain a high quality investment portfolio.
(in thousands, except percentages) 2024 % 2023 % Title Insurance $ 235,487 91.2 $ 200,937 89.4 Exchange Services 11,104 4.3 13,467 6.0 All Other 11,707 4.5 10,346 4.6 Total $ 258,298 100.0 $ 224,750 100.0 Title Insurance Revenues Title insurance revenues include net premiums written and escrow and other title-related income that includes escrow fees, commissions and settlement fees.
(in thousands, except percentages) 2025 % 2024 % 2023 % Title Insurance $ 246,069 90.2 $ 235,487 91.2 $ 200,937 89.4 Exchange Services 14,008 5.1 11,104 4.3 13,467 6.0 All Other 12,678 4.7 11,707 4.5 10,346 4.6 Total $ 272,755 100.0 $ 258,298 100.0 $ 224,750 100.0 Title Insurance Revenues Title insurance revenues include net premiums written and escrow and other title-related income that includes escrow fees, commissions and settlement fees.
In 2024, purchase activity accounted for 72.4% of all mortgage originations and is projected in the MBA Forecast to represent 67.8% of all mortgage originations in 2025. According to data published by Freddie Mac, the average 30-year fixed mortgage interest rates in the United States were 6.7% and 6.8% for the years ended December 31, 2024 and 2023, respectively.
In 2025, purchase activity accounted for 66.1% of all mortgage originations and, according to the MBA Forecast, is projected to represent 65.5% of all mortgage originations in 2026. According to data published by Freddie Mac, the average 30-year fixed mortgage interest rates in the United States were 6.6% and 6.7% for the years ended December 31, 2025 and 2024, respectively.
On a combined basis, the after-tax profit margins were 12.0% and 9.6% in 2024 and 2023, respectively. The increase in after-tax margin in 2024, compared with 2023, was primarily related to an increase in total revenues outpacing the increase in expenses. The Company achieved gains in revenue, while profitability was aided by ongoing cost control measures.
On a combined basis, the after-tax profit margins were 12.9%, 12.0%, and 9.6% in 2025, 2024, and 2023, respectively. The increases in after-tax margin in 2025 compared with 2024, and 2024 compared with 2023, were primarily driven by revenue growth outpacing increases in expenses. The Company achieved gains in revenue, while profitability was aided by ongoing cost control measures.
Agency net premiums written increased 27.0% in 2024 to $143.6 million, compared with $113.1 million in 2023.
Agency net premiums written increased 5.0% in 2025 to $150.8 million, compared with $143.6 million in 2024, and increased 27.0% in 2024, compared with $113.1 million in 2023.
In normal economic situations, future adjustments to the FOMC’s stance of monetary policy are expected to be based on realized and expected economic developments to achieve maximum employment and inflation near the FOMC's symmetric long-term 2.0% objective. 23 Real Estate Environment The Mortgage Bankers Association's (“MBA”) January 19, 2025 Mortgage Finance Forecast (“MBA Forecast”) projects 2025 purchase activity to increase 8.1% to $1,392 billion and refinance activity to increase 34.4% to $660 billion, resulting in an increase in total mortgage originations of 15.3% to $2,052 billion, all from 2024 levels.
In normal economic situations, future adjustments to the FOMC’s stance of monetary policy are expected to be based on realized and expected economic developments to achieve maximum employment and inflation near the FOMC's symmetric long-term 2.0% objective. 23 Real Estate Environment The Mortgage Bankers Association's (“MBA”) January 21, 2026 Mortgage Finance Forecast (“MBA Forecast”) projects 2026 purchase activity to increase 6.4% to $1.4 trillion and refinance activity to increase 9.5% to $760 billion, resulting in an increase in total mortgage originations of 7.5% to $2.2 trillion, all from 2025 levels.
Through ITIC and NITIC, the Company underwrites land title insurance for owners and mortgagees as a primary insurer. Title insurance protects against loss or damage resulting from title defects that affect real property and customarily arising prior to the policy date.
Total revenues from the title segment accounted for 90.2% of the Company’s revenues in 2025. Through ITIC and NITIC, the Company underwrites land title insurance for owners and mortgagees as a primary insurer. Title insurance protects against loss or damage resulting from title defects that affect real property and customarily arising prior to the policy date.
The decrease in the loss provision rate in 2024, from the 2023 level, resulted in approximately $1.2 million less in reserves than would have been recorded at the higher 2023 level. Loss provision rates are subject to variability and are reviewed and adjusted as experience develops.
A slight decrease in the loss provision rate in 2025, from the 2024 level, resulted in approximately $109 thousand less in reserves than would have been recorded at the higher 2024 level. Loss provision rates are subject to variability and are reviewed and adjusted as experience develops.
These risks and uncertainties include the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the characteristics of that issuer; the risk that information obtained by the Company or changes in other facts and circumstances leads management to change its intent to sell the fixed maturity security; and the risk that management is making decisions based on inaccurate information in the consolidated financial statements provided by issuers.
These risks and uncertainties include the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the characteristics of that issuer; the risk that information obtained by the Company or changes in other facts and circumstances leads management to change its intent to sell the fixed maturity security; and the risk that management is making decisions based on inaccurate information in the consolidated financial statements provided by issuers. 30 Changes in the Estimated Fair Value of Equity Security Investments - Changes in the estimated fair value of equity security investments were $(1.0) million in 2025, compared with $(318) thousand in 2024 and $(12.2) million in 2023.
Cash flows provided by operating activities differ from net income due to adjustments for non-cash items, such as gains and losses on investments and property, the timing of disbursements for taxes, claims and other accrued liabilities, and collections or changes in receivables and other assets. 32 Cash flows from non-operating activities have historically consisted of purchases and proceeds from investing activities, the issuance of dividends and repurchases of common stock.
Cash flows provided by operating activities differ from net income due to adjustments for non-cash items, such as gains and losses on investments and property, the timing of disbursements for taxes, claims and other accrued liabilities, and collections or changes in receivables and other assets.
The increase in 2024, compared with 2023, was primarily driven by increased activity levels, which were influenced by ongoing expansion initiatives and lower average mortgage interest rates, and appreciation in average home prices. 28 The following is a schedule of net premiums written in select states in which the Company’s two insurance subsidiaries, ITIC and NITIC, currently underwrite title insurance: State (in thousands) 2024 2023 North Carolina $ 70,380 $ 64,143 Texas 56,985 46,308 South Carolina 17,940 16,023 Georgia 15,463 11,731 Florida 14,704 6,778 All Others 28,881 26,529 Premiums Written 204,353 171,512 Reinsurance Assumed — — Reinsurance Ceded (89) (354) Net Premiums Written $ 204,264 $ 171,158 Title insurance rates vary by state and are subject to extensive regulation.
The increases in 2025, compared with 2024, and in 2024, compared with 2023, were primarily driven by increased activity levels and appreciation in average home prices. 28 The following is a schedule of net premiums written in select states in which the Company’s two insurance subsidiaries, ITIC and NITIC, currently underwrite title insurance: State (in thousands) 2025 2024 2023 North Carolina $ 75,229 $ 70,380 $ 64,143 Texas 57,698 56,985 46,308 Georgia 18,326 15,463 11,731 South Carolina 17,276 17,940 16,023 Florida 13,632 14,704 6,778 All Others 30,732 28,881 26,529 Premiums Written 212,893 204,353 171,512 Reinsurance Assumed — — — Reinsurance Ceded (251) (89) (354) Net Premiums Written $ 212,642 $ 204,264 $ 171,158 Title insurance rates vary by state and are subject to extensive regulatory oversight.
The decrease in the provision for claims as a percentage of net premiums written in 2024, compared with 2023, was primarily due to higher levels of favorable loss development in the current year period.
The provision for claims as a percentage of net premiums written remained relatively consistent between 2025 and 2024. The decrease in the provision for claims as a percentage of net premiums written in 2024, compared with 2023, was primarily due to higher levels of favorable loss development.
As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data.
As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to the reserve in the results of operations in the period in which new information (principally claims experience) becomes available.
The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and the existing alternative uses for such cash. Capital Expenditures : Capital expenditures were approximately $7.4 million and $9.2 million during 2024 and 2023, respectively.
The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and the existing alternative uses for such cash.
The Company strives to maintain a high quality investment portfolio. 29 Interest and dividends were $10.7 million in 2024, compared with $9.1 million in 2023. Interest and investment income levels are primarily a function of general market performance, interest rates and the amount of cash available for investment.
Interest and dividends were $10.0 million in 2025, compared with $10.7 million in 2024 and $9.1 million in 2023. Interest and investment income levels are primarily a function of general market performance, interest rates and the amount of cash available for investment. The decrease in 2025, compared to 2024, was primarily impacted by prevailing interest rates.
The estimated development of large claims by policy year is, therefore, subject to significant changes as experience develops. The loss provision rate is set to provide for losses on current year policies and changes in prior year estimates. Management also considers actuarial analyses in evaluating the claims reserve.
The loss provision rate is set to provide for losses on current year policies and changes in prior year estimates. Management also considers actuarial analyses in evaluating the claims reserve.
Agency Net Premiums : When a policy is written through a non-wholly owned title agency, the premium is shared between the agency and the underwriter. The agent retains a majority of the premium as a commission and remits the net amount to the Company. Title insurance commissions earned by the Company’s agents are recognized as expenses concurrently with premium recognition.
The agent retains a majority of the premium as a commission and remits the net amount to the Company. Title insurance commissions earned by the Company’s agents are recognized as expenses concurrently with premium recognition.
Title insurance companies typically issue title insurance policies directly or through title agencies. Following is a breakdown of net premiums generated by direct and agency operations for the years ended December 31, 2024 and 2023.
The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available. Title insurance companies typically issue title insurance policies directly or through title agencies. Following is a breakdown of net premiums generated by direct and agency operations for the years ended December 31, 2025, 2024, and 2023.
The Company continually updates and refines its reserve estimates as current experience develops and credible data emerges. Such data includes payments on claims closed during the quarter, new details that emerge on open cases that cause claims adjusters to increase or decrease the case reserves, and the impact that these types of changes have on the Company’s total loss provision.
Such data includes payments on claims closed during the quarter, new details that emerge on open cases that cause claims adjusters to increase or decrease the case reserves, and the impact that these types of changes have on the Company’s total loss provision. Adjustments may be required as new information develops which often varies from past experience.
These transactions include reverse exchanges when taxpayers decide to acquire replacement property before selling the relinquished property, or “build to suit” exchanges, when improvements must be made to the replacement property before the taxpayer acquires the improved replacement property.
These transactions include reverse exchanges, when taxpayers decide to acquire replacement property before selling the relinquished property, or “build to suit” exchanges, when improvements must be made to the replacement property before the taxpayer acquires the improved replacement property. The services provided by the Company’s exchange services division, ITEC and ITAC, are pursuant to provisions in the IRC.
In addition to estimating revenues, the Company also estimates and accrues agent commissions, claims provision, premium taxes, income taxes, and other expenses associated with the estimated revenues that have been accrued. The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available.
From time to time, the Company adjusts the inputs to the estimation process as reported transactions and new information becomes available. In addition to estimating revenues, the Company also estimates and accrues agent commissions, claims provision, premium taxes, income taxes, and other expenses associated with the estimated revenues that have been accrued.
Personnel expenses were $72.5 million and $76.7 million for 2024 and 2023, respectively. Personnel expenses decreased by 5.5% in 2024, compared with 2023, primarily due to lower staffing levels. Employee headcount decreased by 3.7%, when compared to the same prior year period, primarily due to the Company's cost saving measures.
Personnel expenses were $72.2 million, $72.5 million, and $76.7 million for 2025, 2024, and 2023, respectively. Personnel expenses decreased by 0.4% in 2025, compared with 2024, and decreased 5.5% in 2024, compared with 2023, primarily due to lower staffing levels. Employee headcount decreased by 0.9% in 2025, from 2024, and 3.7% in 2024, from 2023.
Adjustments may be required as new information develops which often varies from past experience. Income Taxes The provision for income taxes was $8.4 million and $4.5 million for 2024 and 2023, respectively. Income tax expense, including federal and state taxes, as a percentage of income before income taxes was 21.3% and 17.3% for 2024 and 2023, respectively.
Income Taxes The provision for income taxes was $9.4 million, $8.4 million, and $4.5 million for 2025, 2024, and 2023, respectively. Income tax expense, including federal and state taxes, as a percentage of income before income taxes was 21.0%, 21.3%, and 17.3% for 2025, 2024, and 2023, respectively.
The Company reviews and adjusts lag time estimates periodically, using historical experience and other factors, and reflects any adjustments in the result of operations in the period in which new information becomes available. Quarterly, the Company evaluates the collectability of receivables. Receivables deemed uncollectible have not been material to the Company.
The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available. Quarterly, the Company evaluates the collectability of receivables. Receivables deemed uncollectible have not been material to the Company.
A recent period of inflation, ongoing geopolitical and military conflicts, and changes in government regulations and policy, including as a result of the recent change in presidential administration, have created additional volatile market conditions and uncertainties in the global economy.
Inflationary pressures, ongoing geopolitical and military conflicts, and changes in government regulations and policy, including as a result of policies implemented by the Trump administration such as the implementation of widespread tariff reform, have created additional volatile market conditions and uncertainties in the global economy.
Total premiums include an estimate of premiums for policies that have been issued directly and by agents, but not reported to the Company as of the balance sheet date.
The increases in 2025, compared to 2024, and in 2024, compared to 2023, were primarily driven by increased activity levels and appreciation in average home prices. Total premiums include an estimate of premiums for policies that have been issued directly and by agents, but not reported to the Company as of the balance sheet date.
The increase in 2024 primarily related to elevated levels of interest income, predominantly influenced by the amount of fixed maturity securities held, interest rates, and general market performance. Refer to Note 3 in the accompanying Consolidated Financial Statements for the major categories of investments, scheduled maturities, amortized costs, estimated fair values of investment securities and earnings by security category.
Refer to Note 3 in the accompanying Consolidated Financial Statements for the major categories of investments, scheduled maturities, amortized costs, estimated fair values of investment securities and earnings by security category.
Commission rates vary by market due to local practice, competition and state regulations. Provision for Claims : The provision for claims decreased 4.9% in 2024, compared to 2023. The provision for claims as a percentage of net premiums written was 2.2% and 2.8% in 2024 and 2023, respectively.
Provision for Claims : The provision for claims increased 1.7% in 2025, compared to 2024, and decreased 4.9% in 2024, compared to 2023. The provision for claims as a percentage of net premiums written was 2.2%, 2.2%, and 2.8% in 2025, 2024, and 2023, respectively.
Other Revenues Other revenues primarily includes gains and losses on the disposal of assets, rental income from real estate investments and miscellaneous revenues.
Other Revenues Other revenues primarily includes gains and losses on the disposal of assets, rental income from real estate investments and miscellaneous revenues. Other revenues were $3.3 million in 2025, compared with $947 thousand in 2024 and $991 thousand in 2023.
Actual payments of claims, net of recoveries, were $4.6 million and $4.8 million in 2024 and 2023, respectively. Reserve for Claims: At December 31, 2024, the total reserve for claims was $37.1 million. Of that total, approximately $2.7 million was reserved for specific claims, and approximately $34.4 million was reserved for claims for which the Company had no notice.
Actual payments of claims, net of recoveries, were $3.6 million, $4.6 million, and $4.8 million in 2025, 2024, and 2023, respectively. Reserve for Claims: At December 31, 2025, the total reserve for claims was $38.1 million.
In 2024, commissions to agents increased 28.7% to $107.3 million, compared with $83.4 million in 2023. Commission expense as a percentage of net premiums written by agents was 74.7% and 73.7% in 2024 and 2023, respectively. The increase in commission expense, when comparing 2024 with 2023, was commensurate with the increase in agent premium volume.
Commission expense as a percentage of net premiums written by agents was 75.4%, 74.7%, and 73.7% in 2025, 2024, and 2023, respectively. The increase in commission expense, when comparing 2025 with 2024, and 2024 with 2023, was commensurate with the increases in agent premium volume. Commission rates vary by market due to local practice, competition and state regulations.
Regulatory Environment The FOMC issues disclosures on a periodic basis that include projections of the federal funds rate and expected actions. The FOMC maintained a target range between 0.00% and 0.25% from March 2020 until March 2022.
Regulatory Environment The FOMC issues disclosures on a periodic basis that include projections of the federal funds rate and expected actions. Starting at the March 2022 meeting of the FOMC through July 2023, the FOMC repeatedly increased the target federal funds range, reaching a high of between 5.25% and 5.50%.
Cash is received from its subsidiaries in the form of dividends and as reimbursements for operating and other administrative expenses that it incurs. The reimbursements are executed within the guidelines of management agreements between the Company and its subsidiaries.
The Company's significant sources of funds are dividends and distributions from its subsidiaries, primarily its two title insurance subsidiaries. Cash is received from its subsidiaries in the form of dividends and as reimbursements for operating and other administrative expenses that it incurs.
In 2024, escrow and other title-related fee revenue increased 4.9% to $18.0 million, compared with $17.1 million in 2023, primarily due to an increase in real estate activity levels. Revenue from Non-Title Services Revenue from non-title services includes trust services, agency management services and exchange services income.
Escrow and other title-related fee revenue increased 7.6% in 2025 to $19.3 million, compared with $18.0 million in 2024, and increased 4.9% in 2024, compared with $17.1 million in 2023. The increases in 2025, compared with 2024, and in 2024, compared with 2023, were primarily due to increases in real estate activity levels.
Unless terminated earlier by resolution of the Board of Directors, the plan will expire when all shares authorized for purchase under the plan have been purchased. Pursuant to the Company’s ongoing purchase program, the Company purchased 7,039 shares at an average price of $155.95 and 7,000 shares at an average per share price of $137.00 in 2024 and 2023, respectively.
Pursuant to the Company’s ongoing purchase program, the Company purchased no shares in 2025, 7,039 shares in 2024 at an average price of $155.95, and 7,000 shares in 2023 at an average per share price of $137.00.
Management defines a large loss as one where incurred losses exceed $500,000. Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years.
Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is, therefore, subject to significant changes as experience develops.
Other expenses were $16.9 million and $16.3 million for 2024 and 2023, respectively. The increase in 2024, compared with 2023, was mainly due to expenses associated with higher title insurance revenues and business development. Title Insurance Commissions to Agents : Agent commissions represent the portion of premiums retained by agents pursuant to the terms of their respective agency contracts.
Other expenses were $20.5 million, $16.9 million, and $16.3 million for 2025, 2024, and 2023, respectively. The increase in 2025, compared with 2024, was mainly due to higher professional service expenses associated with agency acquisitions and several projects. The increase in 2024, compared with 2023, was mainly due to expenses associated with higher title insurance revenues and business development.
The Company’s investment strategy emphasizes after-tax income and principal preservation. The Company’s investments are primarily in fixed maturity securities and short-term investments and, to a lesser extent, equity securities. The average effective maturity of the majority of the fixed maturity securities is less than 10 years.
The Company’s investments are primarily in fixed maturity securities and short-term investments and, to a lesser extent, equity securities. The average effective maturity of the majority of the fixed maturity securities is less than 10 years. The Company’s invested assets are managed to fund its obligations and evaluated to ensure long term stability of capital accounts.
The Company’s invested assets are managed to fund its obligations and evaluated to ensure long term stability of capital accounts. As the Company generates cash from operations, it is invested in accordance with the Company’s investment policy and corporate goals.
As the Company generates cash from operations, it is invested in accordance with the Company’s investment policy and corporate goals.
Non-title service revenues decreased 10.6% in 2024 to $17.2 million, compared with $19.2 million in 2023. The decrease in 2024, compared with 2023, primarily related to a decrease in like-kind exchange revenues. Investment Related Revenues Investment related revenues include interest and dividends, other investment income, and net investment gains.
The increase in 2025, compared with 2024, primarily related to increases in revenue from like-kind exchanges and management services. The decrease in 2024, compared with 2023, was primarily related to a decrease in like-kind exchange revenues. Investment Related Revenues Investment related revenues include interest and dividends, other investment income, and net investment gains.
Per the MBA Forecast, mortgage interest rates are projected to decline modestly in subsequent periods, reaching 6.4% in 2026.
Per the MBA Forecast, mortgage interest rates are projected to decline in the subsequent year period, decreasing to 6.1% in 2026, before increasing to 6.3% in 2027.
The ability of the Company's title insurance subsidiaries to pay dividends to the Company is subject to state regulation from their respective states of domicile. Each state regulates the extent to which title underwriters can pay dividends or make distributions and requires prior regulatory approval of the payment of dividends and other intercompany transfers.
Each state regulates the extent to which title underwriters can pay dividends or make distributions and requires prior regulatory approval of the payment of dividends and other intercompany transfers. The maximum dividend permitted by law is not necessarily indicative of an insurer’s actual ability to pay dividends.
Contractual Obligations : As of December 31, 2024, the Company had a claims reserve totaling $37.1 million. The amounts and timing of these obligations are estimated and not set contractually.
All material anticipated capital expenditures are subject to periodic review and revision and may vary depending on a number of factors. Contractual Obligations : As of December 31, 2025, the Company had a claims reserve totaling $38.1 million. The amounts and timing of these obligations are estimated and not set contractually.
During several FOMC meetings throughout 2024, the target federal funds rate was reduced, with the most recent adjustment occurring in December 2024, lowering the rate to a range of 4.25% to 4.50%.
During several meetings in 2024 and 2025, the FOMC lowered the federal funds rate. The most recent adjustment, in December 2025, reduced the target range to 3.5% and 3.75%.

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