INVESTORS TITLE CO (ITIC)

Investors Title Company is a holding company, incorporated in North Carolina in 1973, that operates through subsidiaries. Its primary business, and its only reportable operating segment, is issuing residential and commercial title insurance through two wholly owned underwriters, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). Title insurance protects owners and mortgage lenders against losses from title defects affecting real property. The company underwrites as a primary insurer and also assumes reinsurance of title risks from other title insurers, although reinsurance accounted for less than 1% of premium volume in each of the last two years.

Beyond title insurance, the company provides other services that are reported together as "All Other." Investors Title Exchange Corporation acts as a qualified intermediary for tax-deferred like-kind property exchanges under IRC §1031. Investors Title Accommodation Corporation serves as an exchange accommodation titleholder for reverse and "build to suit" exchanges. Investors Trust Company provides investment management and trust services to individuals, companies, banks and trusts. Investors Title Management Services offers consulting and management services to those starting and operating title insurance agencies. Title policies come in two basic types, owner's and lender's, and are sold for a one-time premium that is recognized as revenue at closing.

The company markets to a broad range of customers in the residential and commercial real estate sectors, and ITIC has a Commercial Services Division for commercial clients. Policies are issued directly and through a network of agents, typically real estate attorneys, independent agents, or subsidiaries of community and regional mortgage lenders. ITIC is licensed in 44 states and the District of Columbia and writes as a primary insurer in 22 states and the District of Columbia, mainly in the eastern half of the U.S. NITIC, redomesticated to Texas in 2014, is licensed in 20 states and the District of Columbia and writes as a primary insurer in Texas. North Carolina, Texas, South Carolina and Georgia produce the largest share of premiums. In North Carolina most policies are issued directly, while elsewhere they are mainly issued through agents. The company is not dependent on any single customer. Its business is cyclical and seasonal, tied to real estate activity, mortgage rates and the first-quarter lull in home sales.

The company is regulated as an insurance holding company by the states in which its insurers operate, and also by the CFPB under RESPA. Investors Trust is regulated by the North Carolina Commissioner of Banks. The title insurance industry is highly competitive. The four largest title insurers typically hold more than 80% of the U.S. market, and some have greater financial resources, larger distribution networks and more extensive property record databases. Competition turns on financial strength, service quality and timeliness, price and expertise, and underwriters also compete for agents on service and commission levels. The company earns a substantial portion of its income from investments, mainly municipal and U.S. government securities, investment grade corporate bonds and equities, managed internally and through a wholly owned subsidiary. It had 626 full-time and 29 part-time employees at December 31, 2022. Its executive offices are at 121 North Columbia Street, Chapel Hill, North Carolina.