Investors Title Company, engaged in the business of issuing and underwriting title insurance policies, has reported a net income of $1.07 million for the fourth quarter ended December 31, 2007, a decrease of 54% compared with $2.32 million posted during the comparable quarter in 2006.
Net income for the quarter declined primarily because of an increase in the provision for income taxes relating to a re-classification in the quarter of certain taxable municipal bonds that had been misclassified as tax-exempt by the company’s custodian bank.
Net premiums written for the quarter decreased 3.9% to $15.57 million and investment income increased 12.1% to $1.41 million. Revenues for the period were $19.42 million, down 1% as compared to $19.44 million for the fourth quarter of 2006.
For the year ended December 31, 2007, the company reported a net income of $8.40 million, a decline of 36.3%, compared with $13.19 million for the same period in 2006. Diluted earnings per share were $3.35, a fall of 34.8% compared with $5.14 in 2006. Net premiums written dropped 0.3% to $69.98 million while investment income increased 20.1% to $5.2 million.
Allen Fine, chairman and president of Investors Title, said: Overall we are pleased with the company’s net income for the year given the challenging operating environment resulting from declining real estate activity and increasing claims experience industry-wide. We continue to be watchful over controllable expenditures and for opportunities to minimize fraud related claims exposure.