Business Description
The Company’s primary business activity, and its only reportable operating
segment, is the issuance of residential and commercial title insurance through
ITIC and NITIC. Additionally, the Company provides tax-deferred real property
exchange services through its subsidiaries, Investors Title Exchange Corporation
(“ITEC”) and Investors Title Accommodation Corporation (“ITAC”);
investment management and trust services to individuals, trusts and other entities
through its subsidiary Investors Trust Company (“Investors Trust”);
and management services to title insurance agencies through its subsidiary,
Investors Title Management Services (“ITMS”).
Through its two wholly owned title underwriting subsidiaries, ITIC and NITIC,
the Company underwrites title insurance for owners and mortgagees as a primary
insurer. ITIC and NITIC offer primary title insurance coverage to owners and
mortgagees of real estate and assume reinsurance of title insurance risks from
other title insurance companies. The commitments and policies are predominantly
issued using standard forms approved by the American Land Title Association
(“ALTA”).
In 1988, the Company established ITEC to provide services in connection with
tax-deferred exchanges of like-kind property pursuant to Section 1031 of the
Internal Revenue Code. ITEC acts as a qualified intermediary in tax-deferred
exchanges of property held for productive use in a trade or business or for
investments, and its income is derived from fees for handling exchange transactions
and interest earned on client deposits held by the Company. ITAC provides services
as an exchange accommodation titleholder for accomplishing reverse exchanges
when taxpayers decide to acquire replacement property before selling the relinquished
property. The services provided by the Company’s exchange division, ITEC
and ITAC, are pursuant to provisions in the Internal Revenue Code. From 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 division.
170.09 %