Investors Title Co. (Nasdaq: ITIC) reported losses of $3.9 million on $12.3 million in revenues during the fourth quarter of 2008. The Chapel Hill-based company reported a net loss of $1.1 million for the year, compared to a net income of $8.4 million for 2007. Investors Title sells title insurance – policies that protect property owners’ or lenders’ financial stakes in property against losses from liens, title defects and other challenges. If you own a home, for instance, you probably have this insurance, since most major lenders won’t give you a mortgage without it.
And therein lies some of the reason for the losses. The company wrote 20.4 percent fewer premiums in the final quarter.
“We are closely monitoring conditions in the current real estate market in order to best position the company during this downturn while being mindful of opportunities to enhance our competitive strengths and marketing position, and prepare ourselves for when the market stabilizes,’’ said ITIC Chairman J. Allen Fine in a news release issued Tuesday.
Other factors were $2.2 million in realized losses on investments and $5.2 million in three large claims. “The largest, at $3.3 million, was for unpaid mechanic liens by a large regional builder and the other two were both fraud-related, where funds intended to pay off mortgages were diverted out of trust accounts for personal use by individuals,’’ Fine said.
— From Staff Reports