Investors Title Company Announces Fourth Quarter and Fiscal Year 2025 Results

Key Terms

net investment gains financial

Net investment gains are the overall profit a company or fund earns from its investments after subtracting losses and related costs, such as fees or write-downs. For investors, this number shows whether the entity’s spare cash and portfolio are adding value or dragging on results—think of it like the net profit from a side business after paying its bills and covering any bad months. It directly affects reported earnings and the return on capital.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

like-kind exchanges financial

An arrangement that lets an investor swap one qualifying asset for another similar asset and delay paying capital gains tax, like trading houses instead of selling one and buying another so the tax bill is postponed. It matters because deferring taxes keeps more cash working in investments, can change the timing and size of returns, and influences decisions about when and how to rebalance or upgrade holdings, though strict rules determine what counts as a valid swap.

reserve for claims financial

A reserve for claims is money a company sets aside to cover expected future payments from lawsuits, insurance claims, product warranties, or similar obligations. Think of it like a rainy-day fund for bills the company knows or reasonably expects to face; it reduces reported profit today so investors can see and prepare for potential cash outflows later. Changes in this reserve affect earnings, balance-sheet strength, and how risky the company’s future finances look.

forward-looking statements regulatory

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

form 10-k regulatory

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

title insurance technical

Title insurance is a one-time policy that protects a property buyer or lender against losses from undisclosed problems with ownership, such as unknown heirs, forged signatures, or unpaid liens that could threaten legal right to the property. Think of it as a warranty that covers surprise claims on who actually owns a house or land; for investors it reduces the risk of losing an asset or facing costly legal fights and can make financing and resale smoother.

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260216492377/en/

Elizabeth B. Lewter

Telephone: (919) 968-2200

Nasdaq Symbol: ITIC

Source: Investors Title Company