Investors Title Company ITIC reported a net income of $4.70 per share for the second quarter of 2024. This represents an increase from $4.00 per share in the second quarter of 2023.

The company's revenues for the second quarter of 2024 rose by 12.1% to $65.4 million compared to $58.3 million in the year-ago quarter. The revenue increase was driven primarily by higher premiums written due to increased activity in certain markets and rising average home prices.

Several factors positively influenced the company's quarterly performance in the second quarter of 2024. The company benefited from a lower provision for claims, which decreased to $0.9 million from $1 million, and lower personnel expenses due to reduced staffing levels. The favorable market conditions, including a significant decline in mortgage rates and increased home inventories, also supported the company's growth. However, the upside was partly offset by an elevated expense level.

Investors Title Company Price, Consensus and EPS Surprise

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Key Business Metrics

Net premiums written for the second quarter of 2024 amounted to $51.4 million, up from $44 million in the second quarter of 2023, a 16.8% increase. This growth was driven by higher activity levels and increased average real estate sales prices. Direct premiums accounted for $15.5 million, slightly down from $15.8 million, while agency premiums rose significantly from $28.2 million to $35.9 million.

Escrow and other title-related fees rose to $4.8 million from $4.6 million, while non-title services decreased slightly to $4.3 million from $4.6 million. Interest and dividends increased to $2.6 million from $2.2 million, although other investment income fell to $0.9 million from $1.6 million. Net investment gains increased to $1.2 million from $1.1 million, and other income decreased to $0.2 million from $0.3 million.

Operating expenses increased by 11.7% to $54.1 million in the second quarter of 2024, compared to $48.5 million in the second quarter of 2023. This rise was primarily due to higher agent commissions and other expenses that fluctuate with title-related revenues. Personnel expenses decreased to $18.2 million from $18.5 million, reflecting reduced staffing levels. Office and technology expenses remained relatively stable, with a slight decrease from $4.5 million to $4.3 million.

Income before income taxes increased to $11.3 million in the second quarter of 2024 from $9.8 million in the prior-year period. Excluding net investment gains, the adjusted income before income taxes was $10 million, compared to $8.8 million in the second quarter of 2023.