Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 21, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 0-11774 | |
Entity Central Index Key | 0000720858 | |
Entity Registrant Name | INVESTORS TITLE CO | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 56-1110199 | |
Entity Address, Address Line One | 121 North Columbia Street | |
Entity Address, City or Town | Chapel Hill | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27514 | |
City Area Code | 919 | |
Local Phone Number | 968-2200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,891,181 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ITIC | |
Security Exchange Name | NASDAQ | |
RightsToPurchaseSeriesAJuniorParticipatingPreferredStock [Member] | ||
Entity Information [Line Items] | ||
No Trading Symbol Flag | true | |
Title of 12(b) Security | Rights to Purchase Series A Junior Participating Preferred Stock | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 25,324 | $ 25,949 |
Investments in securities: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: March 31, 2020: $97,390; December 31, 2019: $100,667) | 101,421 | 104,638 |
Equity securities, at fair value (cost: March 31, 2020: $34,903; December 31, 2019: $33,570) | 47,983 | 61,108 |
Short-term investments | 15,641 | 13,134 |
Other investments | 14,229 | 13,982 |
Total investments | 179,274 | 192,862 |
Premium and fees receivable | 12,330 | 12,523 |
Accrued interest and dividends | 1,243 | 1,033 |
Prepaid expenses and other receivables | 10,026 | 5,519 |
Property, net | 9,959 | 9,776 |
Goodwill and other intangible assets, net | 10,149 | 10,275 |
Operating lease right-of-use assets | 4,300 | 4,469 |
Other assets | 1,513 | 1,487 |
Total Assets | 254,118 | 263,893 |
Liabilities: | ||
Reserve for claims | 31,407 | 31,333 |
Accounts payable and accrued liabilities | 27,816 | 28,318 |
Operating lease liabilities | 4,337 | 4,502 |
Current income taxes payable | 2,921 | 1,340 |
Deferred income taxes, net | 3,990 | 7,038 |
Total liabilities | 70,471 | 72,531 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity: | ||
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 |
Common stock – no par value (10,000 authorized shares; 1,891 and 1,889 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 |
Retained earnings | 180,535 | 188,262 |
Accumulated other comprehensive income | 3,112 | 3,100 |
Total stockholders' equity | 183,647 | 191,362 |
Total Liabilities and Stockholders’ Equity | $ 254,118 | $ 263,893 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 97,390 | $ 100,667 |
Equity securities, cost | $ 34,903 | $ 33,570 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 1,891 | 1,889 |
Common stock, shares outstanding | 1,891 | 1,889 |
Common stock, held by Company's subsidiary | 292 | 292 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Net premiums written | $ 38,627 | $ 28,795 |
Escrow and other title-related fees | 1,842 | 1,322 |
Non-title services | 2,547 | 2,388 |
Interest and dividends | 1,177 | 1,256 |
Other investment income | 440 | 410 |
Net realized investment (losses) gains | (412) | 790 |
Changes in the estimated fair value of equity security investments | (14,458) | 4,670 |
Other | 138 | 315 |
Total Revenues | 29,901 | 39,946 |
Operating Expenses: | ||
Commissions to agents | 20,187 | 15,058 |
Provision for claims | 906 | 226 |
Personnel expenses | 11,809 | 11,612 |
Office and technology expenses | 2,415 | 2,223 |
Other expenses | 3,113 | 2,514 |
Total Operating Expenses | 38,430 | 31,633 |
(Loss) Income before Income Taxes | (8,529) | 8,313 |
(Benefit) Provision for Income Taxes | (1,518) | 1,687 |
Net (Loss) Income | $ (7,011) | $ 6,626 |
Basic (Loss) Earnings per Common Share | $ (3.71) | $ 3.51 |
Weighted Average Shares Outstanding – Basic | 1,890 | 1,887 |
Diluted (Loss) Earnings per Common Share | $ (3.71) | $ 3.49 |
Weighted Average Shares Outstanding – Diluted | 1,890 | 1,896 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (7,011) | $ 6,626 |
Other comprehensive income, before tax: | ||
Accumulated postretirement benefit obligation adjustment | (41) | 0 |
Net unrealized (loss) gain on investments arising during the period | (391) | 1,450 |
Reclassification adjustment for sale of securities included in net loss | (30) | 0 |
Reclassification adjustment for write-down of securities included in net loss | 482 | 0 |
Other comprehensive income, before tax | 20 | 1,450 |
Income tax benefit related to postretirement health benefits | (9) | 0 |
Income tax (benefit) expense related to net unrealized (loss) gain on investments arising during the period | (87) | 307 |
Income tax benefit related to reclassification adjustment for sale of securities included in net loss | (6) | 0 |
Income tax expense related to reclassification adjustment for write-down of securities included in net loss | 110 | 0 |
Net income tax expense on other comprehensive income | 8 | 307 |
Other comprehensive income | 12 | 1,143 |
Comprehensive (Loss) Income | $ (6,999) | $ 7,769 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income |
Balance, beginning of year, shares at Dec. 31, 2018 | 1,887 | |||
Balance, beginning of year at Dec. 31, 2018 | $ 175,639 | $ 0 | $ 174,690 | $ 949 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 6,626 | 6,626 | ||
Dividends paid | (755) | (755) | ||
Shares of common stock repurchased and retired (in shares) | 0 | |||
Shares of common stock repurchased and retired | (11) | (11) | ||
Stock options and stock appreciation rights exercised (in shares) | 2 | |||
Stock options and stock appreciation rights exercised | (1) | (1) | ||
Share-based compensation expense related to stock appreciation rights | 88 | 88 | ||
Accumulated postretirement benefit obligation adjustment | 0 | |||
Net unrealized gain on investments | 1,143 | 1,143 | ||
Balance, end of year, shares at Mar. 31, 2019 | 1,889 | |||
Balance, end of year at Mar. 31, 2019 | 182,729 | $ 0 | 180,637 | 2,092 |
Balance, beginning of year, shares at Dec. 31, 2019 | 1,889 | |||
Balance, beginning of year at Dec. 31, 2019 | 191,362 | $ 0 | 188,262 | 3,100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (7,011) | (7,011) | ||
Dividends paid | (832) | (832) | ||
Stock options and stock appreciation rights exercised (in shares) | 2 | |||
Stock options and stock appreciation rights exercised | (1) | (1) | ||
Share-based compensation expense related to stock appreciation rights | 117 | 117 | ||
Accumulated postretirement benefit obligation adjustment | (32) | (32) | ||
Net unrealized gain on investments | 44 | 44 | ||
Balance, end of year, shares at Mar. 31, 2020 | 1,891 | |||
Balance, end of year at Mar. 31, 2020 | $ 183,647 | $ 0 | $ 180,535 | $ 3,112 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | $ 0.44 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net (loss) income | $ (7,011) | $ 6,626 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 457 | 433 |
Amortization of investments, net | 248 | 133 |
Amortization of other intangible assets, net | 126 | 126 |
Share-based compensation expense related to stock appreciation rights | 117 | 88 |
Net gain on disposals of property | (2) | (3) |
Net realized investment losses (gains) | 412 | (790) |
Net change in estimated fair value of equity security investments | 14,458 | (4,670) |
Net earnings from other investments | (315) | (208) |
Provision for claims | 906 | 226 |
(Benefit) provision for deferred income taxes | (3,057) | 828 |
Changes in assets and liabilities: | ||
Decrease in premium and fees receivables | 193 | 1,384 |
Increase in other assets | (4,743) | (366) |
Decrease (increase) in operating lease right-of-use assets | 169 | (4,925) |
Decrease in accounts payable and accrued liabilities | (543) | (4,944) |
Decrease (increase) in operating lease liabilities | (165) | 4,927 |
Increase in current income taxes payable | 1,581 | 859 |
Payments of claims, net of recoveries | (832) | (571) |
Net cash provided by (used in) operating activities | 1,999 | (847) |
Investing Activities | ||
Purchases of equity securities | (5,866) | (1,572) |
Purchases of short-term investments | (3,540) | (50,015) |
Purchases of other investments | (328) | (776) |
Proceeds from sales and maturities of fixed maturity securities | 2,579 | 925 |
Proceeds from sales of equity securities | 4,557 | 1,561 |
Proceeds from sales and maturities of short-term investments | 1,034 | 53,224 |
Proceeds from sales and distributions of other investments | 401 | 1,843 |
Proceeds from sales of other assets | 10 | 0 |
Purchases of property | (643) | (225) |
Proceeds from the sale of property | 5 | 7 |
Net cash (used in) provided by investing activities | (1,791) | 4,972 |
Financing Activities | ||
Repurchases of common stock | 0 | (11) |
Exercise of stock appreciation rights | (1) | (1) |
Dividends paid | (832) | (755) |
Net cash used in financing activities | (833) | (767) |
Net (Decrease) Increase in Cash and Cash Equivalents | (625) | 3,358 |
Cash and Cash Equivalents, Beginning of Period | 25,949 | 18,694 |
Cash and Cash Equivalents, End of Period | 25,324 | 22,052 |
Cash Paid During the Year for: | ||
Income tax refunds, net | (42) | 0 |
Non cash net unrealized gain on investments, net of deferred tax provision of $(17) and $(307) for March 31, 2020 and 2019, respectively | (44) | (1,143) |
Accumulated postretirement benefit obligation adjustment | $ 32 | $ 0 |
Consolidated Statements Of Ca_2
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Non cash net unrealized gain on investments, net of deferred tax provision | $ (17) | $ (307) |
Adjustments to postretirement benefits obligation, net of deferred tax benefit (provision) | $ 9 | $ 0 |
Basis Of Presentation And Signi
Basis Of Presentation And Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation And Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2019 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies. Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period. Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) . ASU 2016-13 updated guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadened the information that an entity must consider in developing its expected credit loss estimates, and was meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amended the accounting for credit losses on available-for-sale fixed maturity securities and purchased financial assets with credit deterioration. The update was effective for the Company for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this update on January 1, 2020 with no material impact on the Company's financial position and results of operations. Refer to Note 6 for further information about the Company's investments. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removed the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity is required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and must recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized must not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarified that an entity is required to consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update was effective for the Company for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 with no impact on the Company's financial position and results of operations. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to reduce the complexity in accounting for income taxes during interim and annual periods and is expected to provide clarity on income tax situations where a diversity in practice has developed. The update is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for interim or annual periods for which financial statements have not yet been issued. None of these amendments are expected to have a material impact on the Company's financial position or results of operations. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative immediately before applying or upon discontinuing the equity method. In addition, this update clarifies that, when determining the accounting for certain forward contracts and purchased options, a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The update is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted , including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and does not expect it to have a material impact. Significant Accounting Policies – The Company has updated the following accounting policies due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) : Allowance for Credit Losses – Available-for-Sale Securities For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation. In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. |
Reserves For Claims
Reserves For Claims | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Reserves For Claims | Reserve for Claims Activity in the reserve for claims for the three-month period ended March 31, 2020 and the year ended December 31, 2019 are summarized as follows: (in thousands) March 31, 2020 December 31, 2019 Balance, beginning of period $ 31,333 $ 31,729 Provision charged to operations 906 3,532 Payments of claims, net of recoveries (832 ) (3,928 ) Balance, end of period $ 31,407 $ 31,333 The total reserve for all reported and unreported losses the Company incurred through March 31, 2020 is represented by the reserve for claims on the Consolidated Balance Sheets. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through March 31, 2020 . Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant. A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows: (in thousands, except percentages) March 31, 2020 % December 31, 2019 % Known title claims $ 3,596 11.4 $ 3,799 12.1 IBNR 27,811 88.6 27,534 87.9 Total reserve for claims $ 31,407 100.0 $ 31,333 100.0 Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated fair value, net of any indebtedness on the property. |
Earnings Per Common Share And S
Earnings Per Common Share And Share Awards | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share And Share Awards | Earnings Per Common Share and Share Awards Basic (loss) earnings per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the reporting period. Diluted (loss) earnings per common share is computed by dividing net (loss) income by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, as share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period. The following table sets forth the computation of basic and diluted (loss) earnings per share for the three-month periods ended March 31 : Three Months Ended (in thousands, except per share amounts) 2020 2019 Net (loss) income $ (7,011 ) $ 6,626 Weighted average common shares outstanding – Basic 1,890 1,887 Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) — 9 Weighted average common shares outstanding – Diluted 1,890 1,896 Basic (loss) earnings per common share $ (3.71 ) $ 3.51 Diluted (loss) earnings per common share $ (3.71 ) $ 3.49 There were 15 thousand and 9 thousand potential shares excluded from the computation of diluted (loss) earnings per share for the three-month periods ended March 31, 2020 and 2019 , respectively, due to the out-of-the-money status of the related share-based awards. Diluted loss per share is comparable to basic loss per share when an organization is in a net loss situation, like the Company was for the three-month period ended March 31, 2020 , as the impact to loss per share from share awards is antidilutive. The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company. There is currently one active plan from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares. As of March 31, 2020 , the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. Most outstanding SARs vest and are exercisable within one year of the date of grant, with the exception of a one-time grant where the SARs vest over a five -year period. All SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant. There was approximately $118 thousand and $88 thousand of compensation expense relating to SARs vesting on or before March 31, 2020 and 2019 , respectively, included in personnel expenses in the Consolidated Statements of Operations. As of March 31, 2020 , there was $171 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans. A summary of share-based award transactions for all share-based award plans follows: (in thousands, except weighted average exercise price and average remaining contractual term) Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2019 28 $ 110.27 3.64 $ 2,019 SARs granted 4 162.81 SARs exercised (2 ) 50.50 Outstanding as of December 31, 2019 30 $ 124.13 3.53 $ 1,352 SARs granted 7 143.53 SARs exercised (5 ) 74.87 Outstanding as of March 31, 2020 32 $ 135.47 4.33 $ 585 Exercisable as of March 31, 2020 27 $ 135.02 3.83 $ 585 Unvested as of March 31, 2020 5 $ 137.90 6.96 $ — During the first quarter of 2020 the Company issued 7 thousand share-settled SARs to directors and employees of the Company. There were no such issuances in the first quarter of 2019, as all 2019 issuances of share-settled SARs were made in the second quarter. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions noted in the table shown below. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average fair value for the SARs issued during first quarter 2020 was $ 35.49 and was estimated using the weighted average assumptions shown in the table below. 2020 Expected Life in Years 6.2 - 7.0 Volatility 27.2% Interest Rate 0.8% Yield Rate 1.0% |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called “All Other.” The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate. Provided below is selected financial information about the Company's operations by segment for the periods ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 (in thousands) Title All Intersegment Total Insurance and other services revenues $ 41,853 $ 2,805 $ (1,504 ) $ 43,154 Investment loss (11,460 ) (1,381 ) — (12,841 ) Net realized gain (loss) on investments 63 (475 ) — (412 ) Total revenues $ 30,456 $ 949 $ (1,504 ) $ 29,901 Operating expenses 37,443 2,345 (1,358 ) 38,430 Loss before income taxes $ (6,987 ) $ (1,396 ) $ (146 ) $ (8,529 ) Total assets $ 187,236 $ 66,882 $ — $ 254,118 Three Months Ended March 31, 2019 (in thousands) Title All Intersegment Total Insurance and other services revenues $ 31,319 $ 2,691 $ (1,190 ) $ 32,820 Investment income 5,430 906 — 6,336 Net realized gain on investments 764 26 — 790 Total revenues $ 37,513 $ 3,623 $ (1,190 ) $ 39,946 Operating expenses 30,452 2,237 (1,056 ) 31,633 Income before income taxes $ 7,061 $ 1,386 $ (134 ) $ 8,313 Total assets $ 200,187 $ 52,803 $ — $ 252,990 |
Retirement Agreements And Other
Retirement Agreements And Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Agreements And Other Postretirement Benefits | Retirement Agreements and Other Postretirement Benefits The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $12.3 million and $12.2 million as of March 31, 2020 and December 31, 2019 , respectively. The executive employee benefits include health, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets. The following sets forth the net periodic benefit cost for the executive benefits for the periods ended March 31, 2020 and 2019 : Three Months Ended (in thousands) 2020 2019 Service cost – benefits earned during the year $ — $ — Interest cost on the projected benefit obligation 8 8 Amortization of unrecognized losses — — Net periodic benefit cost $ 8 $ 8 |
Investments In Securities and F
Investments In Securities and Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Securities and Fair Value | Investments and Estimated Fair Value Investments in Fixed Maturity Securities The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows: As of March 31, 2020 (in thousands) Amortized Cost Gross Gains Gross Unrealized Losses Estimated Fair Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 24,126 $ 335 $ — $ 24,461 General obligations of U.S. states, territories and political subdivisions 18,565 835 — 19,400 Special revenue issuer obligations of U.S. states, territories and political subdivisions 50,758 2,455 12 53,201 Corporate debt securities 3,941 451 33 4,359 Total $ 97,390 $ 4,076 $ 45 $ 101,421 As of December 31, 2019 (in thousands) Amortized Cost Gross Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 25,161 $ 6 $ 4 $ 25,163 General obligations of U.S. states, territories and political subdivisions 18,887 843 — 19,730 Special revenue issuer obligations of U.S. states, territories and political subdivisions 51,188 2,530 20 53,698 Corporate debt securities 5,431 621 5 6,047 Total $ 100,667 $ 4,000 $ 29 $ 104,638 The special revenue category for both periods presented includes approximately 50 individual fixed maturity securities with revenue sources from a variety of industry sectors. The scheduled maturities of fixed maturity securities at March 31, 2020 are as follows: Available-for-Sale (in thousands) Amortized Cost Estimated Fair Due in one year or less $ 20,293 $ 20,465 Due one year through five years 51,783 53,970 Due five years through ten years 24,501 25,772 Due after ten years 813 1,214 Total $ 97,390 $ 101,421 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at March 31, 2020 and December 31, 2019 : Less than 12 Months 12 Months or Longer Total As of March 31, 2020 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Unrealized Losses Estimated Fair Unrealized Losses Special revenue issuer obligations of U.S. states, territories and political subdivisions $ 1,573 $ (10 ) $ 1,114 $ (2 ) $ 2,687 $ (12 ) Corporate debt securities 640 (33 ) — — 640 (33 ) Total temporarily impaired securities $ 2,213 $ (43 ) $ 1,114 $ (2 ) $ 3,327 $ (45 ) Less than 12 Months 12 Months or Longer Total As of December 31, 2019 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Unrealized Losses Estimated Fair Unrealized Losses Government obligations $ 12,045 $ (4 ) $ — $ — $ 12,045 $ (4 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,101 (17 ) 1,118 (3 ) 2,219 (20 ) Corporate debt securities 413 (5 ) — — 413 (5 ) Total temporarily impaired securities $ 13,559 $ (26 ) $ 1,118 $ (3 ) $ 14,677 $ (29 ) The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired. Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 9 and 6 fixed maturity securities had unrealized losses without an allowance for credit losses at March 31, 2020 and December 31, 2019 , respectively. The Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive income. Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. The Company recorded $482 thousand and $0 other-than-temporary impairment charges related to fixed maturity securities for the three-month periods ended March 31, 2020 and 2019, respectively. Expenses related to other-than-temporary impairments are recorded in net realized investment (losses) gains in the Consolidated Statements of Operations when recognized. Investments in Equity Securities The cost and estimated fair value of equity securities are as follows: As of March 31, 2020 (in thousands) Cost Estimated Fair Equity securities, at fair value: Common stocks $ 34,903 $ 47,983 Total $ 34,903 $ 47,983 As of December 31, 2019 (in thousands) Cost Estimated Fair Equity securities, at fair value: Common stocks $ 33,570 $ 61,108 Total $ 33,570 $ 61,108 Unrealized holding gains and losses are reported in the Consolidated Statements of Operations as changes in the estimated fair value of equity security investments. Net Realized Investment (Losses) Gains Gross realized gains and losses on sales of investments for the three-month periods ended March 31 are summarized as follows: (in thousands) 2020 2019 Gross realized gains from securities: Corporate debt securities $ 30 $ — Common stocks 747 831 Total $ 777 $ 831 Gross realized losses from securities: Common stocks $ (722 ) $ (41 ) Other-than-temporary impairment of securities (482 ) — Total $ (1,204 ) $ (41 ) Net realized (losses) gains from securities $ (427 ) $ 790 Net realized gains on other investments: Gains on other investments $ 20 $ — Net loss on other assets and investments (5 ) — Total $ 15 $ — Net realized investment (losses) gains $ (412 ) $ 790 Realized gains and losses are determined on the specific identification method. Variable Interest Entities The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of March 31, 2020 : (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Tax credit LPs Other investments $ 223 $ 223 $ 1,768 Real estate LLCs or LPs Other investments 5,390 6,231 6,675 Small business investment LPs Other investments 6,516 6,311 8,955 Total $ 12,129 $ 12,765 $ 17,398 (a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. Valuation of Financial Assets The FASB has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls. The Level 1 category includes equity securities and U.S. Treasury securities that are measured at estimated fair value using quoted active market prices. The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories, and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification ("ASC") 820 , Fair Value Measurements and Disclosures . Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of March 31, 2020 and December 31, 2019 , the Company did not adjust any Level 2 fair values. A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data. In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments. In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. Measurement alternative equity investments The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments, and plus or minus any changes resulting from observable price changes. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Accrued interest and dividends The carrying amount for accrued interest and dividends is a reasonable estimate of fair value due to the short-term maturity of these assets. The following table presents, by level, fixed maturity securities carried at estimated fair value as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ 24,461 $ 72,601 $ — $ 97,062 Corporate debt securities* — 4,359 — 4,359 Total $ 24,461 $ 76,960 $ — $ 101,421 As of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ 24,160 $ 74,431 $ — $ 98,591 Corporate debt securities* — 6,047 — 6,047 Total $ 24,160 $ 80,478 $ — $ 104,638 *Denotes fair market value obtained from pricing services. The following table presents, by level, estimated fair values of equity investments and other financial instruments as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 25,324 $ — $ — $ 25,324 Accrued interest and dividends 1,243 — — 1,243 Equity securities, at fair value: Common stocks 47,983 — — 47,983 Short-term investments: Money market funds and certificates of deposit 15,641 — — 15,641 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,080 6,080 Equity investments in unconsolidated affiliates, measurement alternative — — 8,149 8,149 Total $ 90,191 $ — $ 14,229 $ 104,420 As of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 25,949 $ — $ — $ 25,949 Accrued interest and dividends 1,033 — — 1,033 Equity securities, at fair value: Common stocks 61,108 — — 61,108 Short-term investments: Money market funds and certificates of deposit 13,134 — — 13,134 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,083 6,083 Equity investments in unconsolidated affiliates, measurement alternative — — 7,899 7,899 Total $ 101,224 $ — $ 13,982 $ 115,206 The Company did not hold any Level 3 category debt or marketable equity investment securities as of March 31, 2020 or December 31, 2019. There were no transfers into or out of Levels 1, 2 or 3 during the periods presented. To help ensure that estimated fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and estimated fair values consistent with ASC 820. Certain equity investments under the measurement alternative are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be other-than-temporarily impaired, an impairment charge is recorded against such investment and reflected in the Consolidated Statements of Operations. There were no impairments of such investments made during the three-month period ended March 31, 2020 or the twelve-month period ended December 31, 2019 . The following table presents a rollforward of equity investments under the measurement alternative as of March 31, 2020 and December 31, 2019 : (in thousands) Balance, January 1, 2020 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, March 31, 2020 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 7,899 $ — $ — $ 250 $ — $ 8,149 Total $ 7,899 $ — $ — $ 250 $ — $ 8,149 (in thousands) Balance, January 1, 2019 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2019 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 6,589 $ — $ — $ 2,241 $ (931 ) $ 7,899 Total $ 6,589 $ — $ — $ 2,241 $ (931 ) $ 7,899 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Legal Proceedings – The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company’s consolidated financial condition or operations. Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits, examinations, and inquiries. It is the opinion of management based on its present expectations that findings from these audits, examinations, and inquiries will not have a material impact on the Company’s consolidated financial condition or results of operations. Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, escrowed funds received under escrow agreements, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of these deposits. Like-Kind Exchanges Proceeds – In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $223.6 million and $214.6 million as of March 31, 2020 and December 31, 2019 , respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon interest rate. Exchange services revenues include earnings on these deposits; therefore, investment income is included as a component of non-title services on the Consolidated Statements of Operations rather than other investment income. Like-kind exchange funds are primarily invested in money market and other short-term investments. COVID-19 – An outbreak of a coronavirus ("COVID-19" or "the virus") has emerged and in March 2020 the World Health Organization declared it a pandemic. This contagious disease outbreak has continued to spread across the globe and is impacting worldwide economic activity and financial markets. The pandemic has had a negative impact on the real estate market and the value of marketable securities, including those held by the Company. In response, the U.S. government and its agencies have taken a number of significant measures to provide monetary stimulus. Such actions include an unscheduled cut to the federal funds rate, the introduction of new programs to preserve market liquidity, extended unemployment and sick leave benefits, low-interest loans for working capital access and payroll assistance, and other relief measures for both workers and businesses. The Company is fully operational and has not had any reductions in workforce. A large portion of the Company's workforce is performing their job functions remotely. The Company has not taken stimulus relief funding or added any other forms of debt. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these limited liability companies. The following tables set forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) As of As of Other investments $ 6,080 $ 6,083 Premium and fees receivable $ 434 $ 410 Financial Statement Classification, Consolidated Statements of Operations (in thousands) Three Months Ended 2020 2019 Net premiums written $ 4,057 $ 3,119 Non-title services and other investment income $ 502 $ 473 Commissions to agents $ 2,679 $ 2,073 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Title Plant | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations, Intangible Assets and Goodwill | Intangible Assets, Goodwill and Title Plant Intangible Assets The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during the three-month periods ended March 31, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired. Identifiable intangible assets consist of the following: (in thousands) As of As of Referral relationships $ 6,416 $ 6,416 Non-compete agreements 1,406 1,406 Tradename 560 560 Total 8,382 8,382 Accumulated amortization (2,583 ) (2,456 ) Identifiable intangible assets, net $ 5,799 $ 5,926 The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years: Year Ended (in thousands) 2020 $ 378 2021 562 2022 525 2023 525 2024 473 Thereafter 3,336 Total $ 5,799 Goodwill and Title Plant As of March 31, 2020 , the Company recognized $4.4 million in goodwill and $690 thousand in a title plant, net of impairments, as the result of title insurance agency acquisitions. The title plant is included with other assets in the Consolidated Balance Sheets. The fair values of goodwill and the title plant, both Level 3 inputs, are principally based on values obtained from an independent third-party valuation service as of the date of acquisition. In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during the three-month periods ended March 31, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that neither goodwill nor the title plant were impaired. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended March 31, 2020 and 2019 : Three Months Ended Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 3,132 $ (32 ) $ 3,100 Other comprehensive loss before reclassifications (304 ) (32 ) (336 ) Amounts reclassified from accumulated other comprehensive income 348 — 348 Net current-period other comprehensive income (loss) 44 (32 ) 12 Ending balance $ 3,176 $ (64 ) $ 3,112 Three Months Ended Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 981 $ (32 ) $ 949 Other comprehensive income before reclassifications 1,143 — 1,143 Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive income 1,143 — 1,143 Ending balance $ 2,124 $ (32 ) $ 2,092 The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three-month period ended March 31, 2020 : Three Months Ended March 31, 2020 Details about Accumulated Other Comprehensive Income Components (in thousands) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains (losses) on available-for-sale securities: Net realized gain on investments $ 30 Other-than-temporary impairments (482 ) Total $ (452 ) Net realized investment (losses) gains Tax 104 (Benefit) provision for income taxes Net of Tax $ (348 ) Reclassifications for the period $ (348 ) There were no amounts reclassified out of each component of accumulated other comprehensive income for the three-month period ended March 31, 2019 . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue from Contracts with Customers ASU 2014-09, Revenue from Contracts with Customers (Topic 606) requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance does not apply to revenue associated with insurance contracts (including title insurance policies), financial instruments and lease contracts; and therefore is primarily applicable to the following Company revenue categories. Escrow and other title-related fees – The Company’s title segment recognizes commission revenue and fees related to items such as searches, settlements, commitments and other ancillary services. Escrow and other title-related fees are recognized as revenue at the time of the related transactions as the earnings process, or performance obligation, is then considered to be complete. Non-title services – Through various subsidiaries, the Company offers management services, tax-deferred real property exchange services, investment management and trust services. Nonrefundable exchange fees are recognized as revenue upon receipt of the funds, which is at the time of closing of the initial sale of property. All other non-title service fees are recognized as revenue as performance obligations are completed. Other – The Company occasionally recognizes revenue from other miscellaneous contracts which can include, but is not limited to seminar and education registration fees and software licensing contracts. These revenue streams are deemed immaterial to the operations of the Company, and revenue is recognized when, or as, performance obligations are completed. The following table provides a breakdown of the Company’s revenue by major business activity: Three Months Ended (in thousands) 2020 2019 Revenue from contracts with customers: Escrow and other title-related fees $ 1,842 $ 1,322 Non-title services 2,547 2,388 Total revenue from contracts with customers 4,389 3,710 Other sources of revenue: Net premiums written 38,627 28,795 Investment-related (loss) revenue (13,253 ) 7,126 Other 138 315 Total revenues $ 29,901 $ 39,946 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. A portion of the Company's current leases include an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The operating lease liability recorded in the Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate was available to the Company. Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases follows: Three Months Ended (in thousands) 2020 2019 Operating leases $ 320 $ 314 Short-term leases (b) 30 34 Lease expense $ 350 $ 348 Sub-lease income — — Lease cost $ 350 $ 348 (b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. Components of the operating lease liability presented on the Consolidated Balance Sheets are as follows: (in thousands) As of As of Current: Operating lease liabilities $ 1,071 $ 1,048 Non-current: Operating lease liabilities 3,266 3,454 Total operating lease liabilities $ 4,337 $ 4,502 The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of March 31, 2020 , are summarized as follows: Year Ended (in thousands) 2020 $ 940 2021 1,166 2022 955 2023 666 2024 495 Thereafter 596 Total undiscounted payments $ 4,818 Less: present value adjustment (481 ) Operating lease liabilities $ 4,337 Supplemental lease information is as follows: As of As of Weighted average remaining lease term (years) 4.67 4.84 Weighted average discount rate 4.6 % 4.6 % The Company does not have any material pending operating or financing lease agreements that become effective in future periods. |
Basis Of Presentation And Sig_2
Basis Of Presentation And Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles Of Consolidation | Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period. |
Use Of Estimates And Assumptions | Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. |
Subsequent Events, Policy | Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) . ASU 2016-13 updated guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadened the information that an entity must consider in developing its expected credit loss estimates, and was meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amended the accounting for credit losses on available-for-sale fixed maturity securities and purchased financial assets with credit deterioration. The update was effective for the Company for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this update on January 1, 2020 with no material impact on the Company's financial position and results of operations. Refer to Note 6 for further information about the Company's investments. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removed the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity is required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and must recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized must not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarified that an entity is required to consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update was effective for the Company for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 with no impact on the Company's financial position and results of operations. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to reduce the complexity in accounting for income taxes during interim and annual periods and is expected to provide clarity on income tax situations where a diversity in practice has developed. The update is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for interim or annual periods for which financial statements have not yet been issued. None of these amendments are expected to have a material impact on the Company's financial position or results of operations. In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative immediately before applying or upon discontinuing the equity method. In addition, this update clarifies that, when determining the accounting for certain forward contracts and purchased options, a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The update is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted , including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and does not expect it to have a material impact. Significant Accounting Policies – The Company has updated the following accounting policies due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) : Allowance for Credit Losses – Available-for-Sale Securities For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation. In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. |
Reserves For Claims (Tables)
Reserves For Claims (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Summary Of Transactions In Reserves For Claims | Activity in the reserve for claims for the three-month period ended March 31, 2020 and the year ended December 31, 2019 are summarized as follows: (in thousands) March 31, 2020 December 31, 2019 Balance, beginning of period $ 31,333 $ 31,729 Provision charged to operations 906 3,532 Payments of claims, net of recoveries (832 ) (3,928 ) Balance, end of period $ 31,407 $ 31,333 |
Summary of the Company's Loss Reserves | A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows: (in thousands, except percentages) March 31, 2020 % December 31, 2019 % Known title claims $ 3,596 11.4 $ 3,799 12.1 IBNR 27,811 88.6 27,534 87.9 Total reserve for claims $ 31,407 100.0 $ 31,333 100.0 |
Earnings Per Common Share And_2
Earnings Per Common Share And Share Awards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share for the three-month periods ended March 31 : Three Months Ended (in thousands, except per share amounts) 2020 2019 Net (loss) income $ (7,011 ) $ 6,626 Weighted average common shares outstanding – Basic 1,890 1,887 Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) — 9 Weighted average common shares outstanding – Diluted 1,890 1,896 Basic (loss) earnings per common share $ (3.71 ) $ 3.51 Diluted (loss) earnings per common share $ (3.71 ) $ 3.49 |
Summary Of Share-Based Award Transactions | A summary of share-based award transactions for all share-based award plans follows: (in thousands, except weighted average exercise price and average remaining contractual term) Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2019 28 $ 110.27 3.64 $ 2,019 SARs granted 4 162.81 SARs exercised (2 ) 50.50 Outstanding as of December 31, 2019 30 $ 124.13 3.53 $ 1,352 SARs granted 7 143.53 SARs exercised (5 ) 74.87 Outstanding as of March 31, 2020 32 $ 135.47 4.33 $ 585 Exercisable as of March 31, 2020 27 $ 135.02 3.83 $ 585 Unvested as of March 31, 2020 5 $ 137.90 6.96 $ — |
Share-Based Valuation Assumptions | The weighted average fair value for the SARs issued during first quarter 2020 was $ 35.49 and was estimated using the weighted average assumptions shown in the table below. 2020 Expected Life in Years 6.2 - 7.0 Volatility 27.2% Interest Rate 0.8% Yield Rate 1.0% |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Information About The Company's Operations By Segment | Provided below is selected financial information about the Company's operations by segment for the periods ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 (in thousands) Title All Intersegment Total Insurance and other services revenues $ 41,853 $ 2,805 $ (1,504 ) $ 43,154 Investment loss (11,460 ) (1,381 ) — (12,841 ) Net realized gain (loss) on investments 63 (475 ) — (412 ) Total revenues $ 30,456 $ 949 $ (1,504 ) $ 29,901 Operating expenses 37,443 2,345 (1,358 ) 38,430 Loss before income taxes $ (6,987 ) $ (1,396 ) $ (146 ) $ (8,529 ) Total assets $ 187,236 $ 66,882 $ — $ 254,118 Three Months Ended March 31, 2019 (in thousands) Title All Intersegment Total Insurance and other services revenues $ 31,319 $ 2,691 $ (1,190 ) $ 32,820 Investment income 5,430 906 — 6,336 Net realized gain on investments 764 26 — 790 Total revenues $ 37,513 $ 3,623 $ (1,190 ) $ 39,946 Operating expenses 30,452 2,237 (1,056 ) 31,633 Income before income taxes $ 7,061 $ 1,386 $ (134 ) $ 8,313 Total assets $ 200,187 $ 52,803 $ — $ 252,990 |
Retirement Agreements And Oth_2
Retirement Agreements And Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Benefits Cost | The following sets forth the net periodic benefit cost for the executive benefits for the periods ended March 31, 2020 and 2019 : Three Months Ended (in thousands) 2020 2019 Service cost – benefits earned during the year $ — $ — Interest cost on the projected benefit obligation 8 8 Amortization of unrecognized losses — — Net periodic benefit cost $ 8 $ 8 |
Investments In Securities and_2
Investments In Securities and Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gains (Losses) and Amortized Cost for Securities | The cost and estimated fair value of equity securities are as follows: As of March 31, 2020 (in thousands) Cost Estimated Fair Equity securities, at fair value: Common stocks $ 34,903 $ 47,983 Total $ 34,903 $ 47,983 As of December 31, 2019 (in thousands) Cost Estimated Fair Equity securities, at fair value: Common stocks $ 33,570 $ 61,108 Total $ 33,570 $ 61,108 The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows: As of March 31, 2020 (in thousands) Amortized Cost Gross Gains Gross Unrealized Losses Estimated Fair Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 24,126 $ 335 $ — $ 24,461 General obligations of U.S. states, territories and political subdivisions 18,565 835 — 19,400 Special revenue issuer obligations of U.S. states, territories and political subdivisions 50,758 2,455 12 53,201 Corporate debt securities 3,941 451 33 4,359 Total $ 97,390 $ 4,076 $ 45 $ 101,421 As of December 31, 2019 (in thousands) Amortized Cost Gross Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 25,161 $ 6 $ 4 $ 25,163 General obligations of U.S. states, territories and political subdivisions 18,887 843 — 19,730 Special revenue issuer obligations of U.S. states, territories and political subdivisions 51,188 2,530 20 53,698 Corporate debt securities 5,431 621 5 6,047 Total $ 100,667 $ 4,000 $ 29 $ 104,638 |
Schedule Of Fixed Maturity Securities | The scheduled maturities of fixed maturity securities at March 31, 2020 are as follows: Available-for-Sale (in thousands) Amortized Cost Estimated Fair Due in one year or less $ 20,293 $ 20,465 Due one year through five years 51,783 53,970 Due five years through ten years 24,501 25,772 Due after ten years 813 1,214 Total $ 97,390 $ 101,421 |
Schedule of Unrealized Loss on Investments | The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at March 31, 2020 and December 31, 2019 : Less than 12 Months 12 Months or Longer Total As of March 31, 2020 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Unrealized Losses Estimated Fair Unrealized Losses Special revenue issuer obligations of U.S. states, territories and political subdivisions $ 1,573 $ (10 ) $ 1,114 $ (2 ) $ 2,687 $ (12 ) Corporate debt securities 640 (33 ) — — 640 (33 ) Total temporarily impaired securities $ 2,213 $ (43 ) $ 1,114 $ (2 ) $ 3,327 $ (45 ) Less than 12 Months 12 Months or Longer Total As of December 31, 2019 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Unrealized Losses Estimated Fair Unrealized Losses Government obligations $ 12,045 $ (4 ) $ — $ — $ 12,045 $ (4 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,101 (17 ) 1,118 (3 ) 2,219 (20 ) Corporate debt securities 413 (5 ) — — 413 (5 ) Total temporarily impaired securities $ 13,559 $ (26 ) $ 1,118 $ (3 ) $ 14,677 $ (29 ) |
Schedule Of Gross Realized Gains And Losses On Securities | Gross realized gains and losses on sales of investments for the three-month periods ended March 31 are summarized as follows: (in thousands) 2020 2019 Gross realized gains from securities: Corporate debt securities $ 30 $ — Common stocks 747 831 Total $ 777 $ 831 Gross realized losses from securities: Common stocks $ (722 ) $ (41 ) Other-than-temporary impairment of securities (482 ) — Total $ (1,204 ) $ (41 ) Net realized (losses) gains from securities $ (427 ) $ 790 Net realized gains on other investments: Gains on other investments $ 20 $ — Net loss on other assets and investments (5 ) — Total $ 15 $ — Net realized investment (losses) gains $ (412 ) $ 790 |
Schedule of Variable Interest Entities | The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of March 31, 2020 : (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Tax credit LPs Other investments $ 223 $ 223 $ 1,768 Real estate LLCs or LPs Other investments 5,390 6,231 6,675 Small business investment LPs Other investments 6,516 6,311 8,955 Total $ 12,129 $ 12,765 $ 17,398 (a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. |
Schedule Of Fair Value Assets Measured On Recurring Basis | The following table presents, by level, fixed maturity securities carried at estimated fair value as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ 24,461 $ 72,601 $ — $ 97,062 Corporate debt securities* — 4,359 — 4,359 Total $ 24,461 $ 76,960 $ — $ 101,421 As of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ 24,160 $ 74,431 $ — $ 98,591 Corporate debt securities* — 6,047 — 6,047 Total $ 24,160 $ 80,478 $ — $ 104,638 |
Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed | The following table presents, by level, estimated fair values of equity investments and other financial instruments as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 25,324 $ — $ — $ 25,324 Accrued interest and dividends 1,243 — — 1,243 Equity securities, at fair value: Common stocks 47,983 — — 47,983 Short-term investments: Money market funds and certificates of deposit 15,641 — — 15,641 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,080 6,080 Equity investments in unconsolidated affiliates, measurement alternative — — 8,149 8,149 Total $ 90,191 $ — $ 14,229 $ 104,420 As of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 25,949 $ — $ — $ 25,949 Accrued interest and dividends 1,033 — — 1,033 Equity securities, at fair value: Common stocks 61,108 — — 61,108 Short-term investments: Money market funds and certificates of deposit 13,134 — — 13,134 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,083 6,083 Equity investments in unconsolidated affiliates, measurement alternative — — 7,899 7,899 Total $ 101,224 $ — $ 13,982 $ 115,206 |
Schedule of Cost Method Investments | The following table presents a rollforward of equity investments under the measurement alternative as of March 31, 2020 and December 31, 2019 : (in thousands) Balance, January 1, 2020 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, March 31, 2020 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 7,899 $ — $ — $ 250 $ — $ 8,149 Total $ 7,899 $ — $ — $ 250 $ — $ 8,149 (in thousands) Balance, January 1, 2019 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2019 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 6,589 $ — $ — $ 2,241 $ (931 ) $ 7,899 Total $ 6,589 $ — $ — $ 2,241 $ (931 ) $ 7,899 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets | The following tables set forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) As of As of Other investments $ 6,080 $ 6,083 Premium and fees receivable $ 434 $ 410 |
Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income | Financial Statement Classification, Consolidated Statements of Operations (in thousands) Three Months Ended 2020 2019 Net premiums written $ 4,057 $ 3,119 Non-title services and other investment income $ 502 $ 473 Commissions to agents $ 2,679 $ 2,073 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Title Plant (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consist of the following: (in thousands) As of As of Referral relationships $ 6,416 $ 6,416 Non-compete agreements 1,406 1,406 Tradename 560 560 Total 8,382 8,382 Accumulated amortization (2,583 ) (2,456 ) Identifiable intangible assets, net $ 5,799 $ 5,926 |
Schedule Of Aggregate Amortization Expense for Intangible Assets | The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years: Year Ended (in thousands) 2020 $ 378 2021 562 2022 525 2023 525 2024 473 Thereafter 3,336 Total $ 5,799 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Changes In Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax | The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended March 31, 2020 and 2019 : Three Months Ended Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 3,132 $ (32 ) $ 3,100 Other comprehensive loss before reclassifications (304 ) (32 ) (336 ) Amounts reclassified from accumulated other comprehensive income 348 — 348 Net current-period other comprehensive income (loss) 44 (32 ) 12 Ending balance $ 3,176 $ (64 ) $ 3,112 Three Months Ended Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 981 $ (32 ) $ 949 Other comprehensive income before reclassifications 1,143 — 1,143 Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive income 1,143 — 1,143 Ending balance $ 2,124 $ (32 ) $ 2,092 |
Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income | The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three-month period ended March 31, 2020 : Three Months Ended March 31, 2020 Details about Accumulated Other Comprehensive Income Components (in thousands) Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains (losses) on available-for-sale securities: Net realized gain on investments $ 30 Other-than-temporary impairments (482 ) Total $ (452 ) Net realized investment (losses) gains Tax 104 (Benefit) provision for income taxes Net of Tax $ (348 ) Reclassifications for the period $ (348 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Three Months Ended (in thousands) 2020 2019 Revenue from contracts with customers: Escrow and other title-related fees $ 1,842 $ 1,322 Non-title services 2,547 2,388 Total revenue from contracts with customers 4,389 3,710 Other sources of revenue: Net premiums written 38,627 28,795 Investment-related (loss) revenue (13,253 ) 7,126 Other 138 315 Total revenues $ 29,901 $ 39,946 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases follows: Three Months Ended (in thousands) 2020 2019 Operating leases $ 320 $ 314 Short-term leases (b) 30 34 Lease expense $ 350 $ 348 Sub-lease income — — Lease cost $ 350 $ 348 (b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. |
Lessee, Operating Lease Liability, Current and Non-current | Components of the operating lease liability presented on the Consolidated Balance Sheets are as follows: (in thousands) As of As of Current: Operating lease liabilities $ 1,071 $ 1,048 Non-current: Operating lease liabilities 3,266 3,454 Total operating lease liabilities $ 4,337 $ 4,502 |
Lessee, Operating Lease, Liability, Maturity | The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of March 31, 2020 , are summarized as follows: Year Ended (in thousands) 2020 $ 940 2021 1,166 2022 955 2023 666 2024 495 Thereafter 596 Total undiscounted payments $ 4,818 Less: present value adjustment (481 ) Operating lease liabilities $ 4,337 |
Operating Lease Other Information | Supplemental lease information is as follows: As of As of Weighted average remaining lease term (years) 4.67 4.84 Weighted average discount rate 4.6 % 4.6 % |
Reserves For Claims Summary Of
Reserves For Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Liability for Title Claims and Claims Adjustment Expense | $ 31,407 | $ 31,333 | $ 31,729 |
Provision charged to operations | 906 | 3,532 | |
Payments of claims, net of recoveries | $ (832) | $ (3,928) |
Reserves For Claims Summary O_2
Reserves For Claims Summary Of The Company's Loss Reserves (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||
Known title claims | $ 3,596 | $ 3,799 | |
IBNR | 27,811 | 27,534 | |
Total reserve for claims | $ 31,407 | $ 31,333 | $ 31,729 |
% of known title reserves | 11.40% | 12.10% | |
% of IBNR | 88.60% | 87.90% | |
% of total loss reserves | 100.00% | 100.00% |
Earnings Per Common Share And_3
Earnings Per Common Share And Share Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Earnings Per Common Share And Share Awards [Line Items] | |||
Anti-dilutive shares excluded from computation of diluted earnings per share | 15 | 9 | |
Number of SARs granted where exercise price was less than market price on date of grant | 0 | ||
SARs | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
SARs expiration period | 7 years | ||
Share-based Payment Arrangement, Expense | $ 118 | $ 88 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 171 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 7 | 0 | 4 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 35.49 | ||
Minimum | SARs | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
SARs vesting period | 1 year | ||
Maximum | SARs | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 250 | ||
SARs vesting period | 5 years |
Computation Of Basic And Dilute
Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net (loss) income | $ (7,011) | $ 6,626 |
Weighted average common shares outstanding - Basic | 1,890 | 1,887 |
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled) | 0 | 9 |
Weighted average common shares outstanding - Diluted | 1,890 | 1,896 |
Basic (Loss) Earnings per Common Share | $ (3.71) | $ 3.51 |
Diluted (Loss) Earnings per Common Share | $ (3.71) | $ 3.49 |
Earnings Per Common Share And_4
Earnings Per Common Share And Share Awards Summary Of Share-Based Award Transactions (Details) - SARs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number Of Shares, Outstanding Beginning Balance | 30 | 28 | 28 | |
Number Of Shares, SARs granted | 7 | 0 | 4 | |
Number Of Shares, SARS exercised | (5) | (2) | ||
Number Of Shares, Outstanding Ending Balance | 32 | 30 | 28 | |
Number Of Shares, Exercisable as of March 31, 2020 | 27 | |||
Number Of Shares, Unvested as of March 31, 2020 | 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, SARs, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 124.13 | $ 110.27 | $ 110.27 | |
Weighted Average Exercise Price, SARs granted | 143.53 | 162.81 | ||
Weighted Average Exercise Price, SARS exercised | 74.87 | 50.50 | ||
Weighted Average Exercise Price, Outstanding Ending Balance | 135.47 | $ 124.13 | $ 110.27 | |
Weighted Average Exercise Price, Exercisable as of March 31, 2020 | 135.02 | |||
Share Based Compensation Arrangement By Share Based Payment Award, Unvested, Weighted Average Exercise Price | $ 137.90 | |||
Average Remaining Contractual Term, Outstanding Beginning Balance | 4 years 3 months 29 days | 3 years 6 months 10 days | 3 years 7 months 20 days | |
Average Remaining Contractual Term, Outstanding Ending Balance | 4 years 3 months 29 days | 3 years 6 months 10 days | 3 years 7 months 20 days | |
Average Remaining Contractual Term, Exercisable as of March 31, 2020 | 3 years 9 months 29 days | |||
Average Remaining Contractual Term, Unvested as of March 31, 2020 | 6 years 11 months 15 days | |||
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 1,352 | $ 2,019 | $ 2,019 | |
Aggregate Intrinsic Value, Outstanding Ending Balance | 585 | $ 1,352 | $ 2,019 | |
Aggregate Intrinsic Value, Exercisable as of March 31, 2020 | 585 | |||
Aggregate Intrinsic Value, Unvested as of March 31, 2020 | $ 0 |
Earnings Per Common Share And_5
Earnings Per Common Share And Share Awards Share-Based Valuation Assumptions (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 27.20% |
Interest rate | 0.80% |
Yield rate | 1.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life in years | 6 years 2 months 12 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life in years | 7 years |
Segment Information Selected Fi
Segment Information Selected Financial Information By Segment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Insurance And Other Services Revenue | $ 43,154 | $ 32,820 | |
Investment income | (12,841) | 6,336 | |
Net realized gain (loss) on investments | (412) | 790 | |
Total Revenues | 29,901 | 39,946 | |
Operating expenses | 38,430 | 31,633 | |
Income (loss) before income taxes | (8,529) | 8,313 | |
Total assets | 254,118 | 252,990 | $ 263,893 |
Title Insurance | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | 41,853 | 31,319 | |
Investment income | (11,460) | 5,430 | |
Net realized gain (loss) on investments | 63 | 764 | |
Total Revenues | 30,456 | 37,513 | |
Operating expenses | 37,443 | 30,452 | |
Income (loss) before income taxes | (6,987) | 7,061 | |
Total assets | 187,236 | 200,187 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | 2,805 | 2,691 | |
Investment income | (1,381) | 906 | |
Net realized gain (loss) on investments | (475) | 26 | |
Total Revenues | 949 | 3,623 | |
Operating expenses | 2,345 | 2,237 | |
Income (loss) before income taxes | (1,396) | 1,386 | |
Total assets | 66,882 | 52,803 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | (1,504) | (1,190) | |
Investment income | 0 | 0 | |
Net realized gain (loss) on investments | 0 | 0 | |
Total Revenues | (1,504) | (1,190) | |
Operating expenses | (1,358) | (1,056) | |
Income (loss) before income taxes | (146) | (134) | |
Total assets | $ 0 | $ 0 |
Retirement Agreements And Oth_3
Retirement Agreements And Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Liability for employee benefits and other payments | $ 12,300 | $ 12,200 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 0 | $ 0 | |
Interest cost on the projected benefit obligation | 8 | 8 | |
Amortization of unrecognized losses | 0 | 0 | |
Net periodic benefits costs | $ 8 | $ 8 |
Investments In Securities and_3
Investments In Securities and Fair Value (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 9 | 6 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 482 | $ 0 | |
Impairment amount for cost-method investments | $ 0 | $ 0 |
Investments In Securities and_4
Investments In Securities and Fair Value (Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | $ 97,390 | $ 100,667 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 482 | $ 0 | |
Government obligations | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | 24,126 | 25,161 | |
Available-for-sale, at fair value, Gross Unrealized Gains | 335 | 6 | |
Available-for-sale, at fair value, Gross Unrealized Losses | 0 | 4 | |
Available-for-sale, at fair value, Estimated Fair Value | 24,461 | 25,163 | |
General obligations of U.S. states, territories and political subdivisions | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | 18,565 | 18,887 | |
Available-for-sale, at fair value, Gross Unrealized Gains | 835 | 843 | |
Available-for-sale, at fair value, Gross Unrealized Losses | 0 | 0 | |
Available-for-sale, at fair value, Estimated Fair Value | 19,400 | 19,730 | |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | 50,758 | 51,188 | |
Available-for-sale, at fair value, Gross Unrealized Gains | 2,455 | 2,530 | |
Available-for-sale, at fair value, Gross Unrealized Losses | 12 | 20 | |
Available-for-sale, at fair value, Estimated Fair Value | $ 53,201 | $ 53,698 | |
Number of Special Revenue Bonds | 50 | 50 | |
Corporate debt securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | $ 3,941 | $ 5,431 | |
Available-for-sale, at fair value, Gross Unrealized Gains | 451 | 621 | |
Available-for-sale, at fair value, Gross Unrealized Losses | 33 | 5 | |
Available-for-sale, at fair value, Estimated Fair Value | 4,359 | 6,047 | |
Total fixed maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fixed maturities, available-for-sale, amortized cost | 97,390 | 100,667 | |
Available-for-sale, at fair value, Gross Unrealized Gains | 4,076 | 4,000 | |
Available-for-sale, at fair value, Gross Unrealized Losses | 45 | 29 | |
Available-for-sale, at fair value, Estimated Fair Value | $ 101,421 | $ 104,638 |
Investments In Securities and_5
Investments In Securities and Fair Value (Schedule Of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 20,293 | |
Due after one year through five years, Amortized Cost | 51,783 | |
Due five years through ten years, Amortized Cost | 24,501 | |
Due after ten years, Amortized Cost | 813 | |
Total, Amortized Cost | 97,390 | |
Due in one year or less, Fair Value | 20,465 | |
Due after one year through five years, Fair Value | 53,970 | |
Due five years through ten years, Fair Value | 25,772 | |
Due after ten years, Fair Value | 1,214 | |
Total, Fair Value | $ 101,421 | $ 104,638 |
Investments In Securities and_6
Investments In Securities and Fair Value (Schedule Of Unrealized Losses On Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | $ 12,045 | |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (4) | |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Total temporarily impaired securities, Total Fair Value | 12,045 | |
Total temporarily impaired securities, Unrealized Losses | (4) | |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | $ 1,573 | 1,101 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (10) | (17) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 1,114 | 1,118 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (3) |
Total temporarily impaired securities, Total Fair Value | 2,687 | 2,219 |
Total temporarily impaired securities, Unrealized Losses | (12) | (20) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 640 | 413 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (33) | (5) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total temporarily impaired securities, Total Fair Value | 640 | 413 |
Total temporarily impaired securities, Unrealized Losses | (33) | (5) |
Total temporarily impaired securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 2,213 | 13,559 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (43) | (26) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 1,114 | 1,118 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (3) |
Total temporarily impaired securities, Total Fair Value | 3,327 | 14,677 |
Total temporarily impaired securities, Unrealized Losses | $ (45) | $ (29) |
Investments In Securities and_7
Investments In Securities and Fair Value (Schedule of Equity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, Cost | $ 34,903 | $ 33,570 |
Equity Securities, Estimated Fair Value | 47,983 | 61,108 |
Common stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, Cost | 34,903 | 33,570 |
Equity Securities, Estimated Fair Value | $ 47,983 | $ 61,108 |
Investments In Securities and_8
Investments In Securities and Fair Value (Schedule Of Gross Realized Gains And Losses On Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total, gross realized gains | $ 777 | $ 831 |
Total, gross realized losses | (1,204) | (41) |
Net realized (losses) gains from securities | (427) | 790 |
Gain on other investments | 20 | 0 |
Losses on Other Assets and Investments | (5) | 0 |
Total | 15 | 0 |
Net realized investment (losses) gains | (412) | 790 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, gross realized gains | 30 | 0 |
Common stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, realized gain | 747 | 831 |
Equity securities, realized loss | (722) | (41) |
Other-than-temporary impairment of securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, gross realized losses | $ (482) | $ 0 |
Investments In Securities and_9
Investments In Securities and Fair Value (Schedule of Variable Interest Entities) (Details) - Other investments $ in Thousands | Mar. 31, 2020USD ($) |
Variable Interest Entity, Not Primary Beneficiary [Line Items] | |
Carrying Value | $ 12,129 |
Estimated Fair Value | 12,765 |
Maximum Potential Loss | 17,398 |
Tax Credit LPs | |
Variable Interest Entity, Not Primary Beneficiary [Line Items] | |
Carrying Value | 223 |
Estimated Fair Value | 223 |
Maximum Potential Loss | 1,768 |
Real Estate LLCs or LPs | |
Variable Interest Entity, Not Primary Beneficiary [Line Items] | |
Carrying Value | 5,390 |
Estimated Fair Value | 6,231 |
Maximum Potential Loss | 6,675 |
Small Business Investment LPs | |
Variable Interest Entity, Not Primary Beneficiary [Line Items] | |
Carrying Value | 6,516 |
Estimated Fair Value | 6,311 |
Maximum Potential Loss | $ 8,955 |
Investments In Securities an_10
Investments In Securities and Fair Value (Schedule Of Fair Value Assets Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 101,421 | $ 104,638 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 24,461 | 24,160 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 76,960 | 80,478 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
General obligations of U.S. states, territories and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 97,062 | 98,591 |
General obligations of U.S. states, territories and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 24,461 | 24,160 |
General obligations of U.S. states, territories and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 72,601 | 74,431 |
General obligations of U.S. states, territories and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 4,359 | 6,047 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 4,359 | 6,047 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 0 | $ 0 |
Investments in Securities an_11
Investments in Securities and Fair Value (Schedule of Carrying Value and Fair Value of Financial Assets Disclosed) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 25,324 | $ 25,949 | |
Accrued interest and dividends | 1,243 | 1,033 | |
Equity Securities, Estimated Fair Value | 47,983 | 61,108 | |
Money market funds and certificates of deposit | 15,641 | 13,134 | |
Equity investments in unconsolidated affiliates, equity method | 6,080 | 6,083 | |
Equity investments in unconsolidated affiliates, measurement alternative | 8,149 | 7,899 | $ 6,589 |
Assets, fair value disclosure | 104,420 | 115,206 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 25,324 | 25,949 | |
Accrued interest and dividends | 1,243 | 1,033 | |
Equity Securities, Estimated Fair Value | 47,983 | 61,108 | |
Money market funds and certificates of deposit | 15,641 | 13,134 | |
Equity investments in unconsolidated affiliates, equity method | 0 | 0 | |
Equity investments in unconsolidated affiliates, measurement alternative | 0 | 0 | |
Assets, fair value disclosure | 90,191 | 101,224 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Accrued interest and dividends | 0 | 0 | |
Equity Securities, Estimated Fair Value | 0 | 0 | |
Money market funds and certificates of deposit | 0 | 0 | |
Equity investments in unconsolidated affiliates, equity method | 0 | 0 | |
Equity investments in unconsolidated affiliates, measurement alternative | 0 | 0 | |
Assets, fair value disclosure | 0 | 0 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Accrued interest and dividends | 0 | 0 | |
Equity Securities, Estimated Fair Value | 0 | 0 | |
Money market funds and certificates of deposit | 0 | 0 | |
Equity investments in unconsolidated affiliates, equity method | 6,080 | 6,083 | |
Equity investments in unconsolidated affiliates, measurement alternative | 8,149 | 7,899 | |
Assets, fair value disclosure | $ 14,229 | $ 13,982 |
Investments In Securities an_12
Investments In Securities and Fair Value (Schedule of Measurement Alternative Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Measurement Alternative Investments | ||
Beginning of Period | $ 7,899 | $ 6,589 |
Amounts Impaired | 0 | 0 |
Observable Changes | 0 | 0 |
Purchases and Additional Commitments Paid | 250 | 2,241 |
Sales, Returns of Capital and Other Reductions | 0 | (931) |
End of Period | $ 8,149 | $ 7,899 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Like-kind exchange deposits and reverse exchange property | $ 223.6 | $ 214.6 |
Related Party Transactions Summ
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Other investments | $ 14,229 | $ 13,982 |
Premiums and fees receivable | 12,330 | 12,523 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Other investments | 6,080 | 6,083 |
Premiums and fees receivable | $ 434 | $ 410 |
Related Party Transactions Su_2
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Net premiums written | $ 38,627 | $ 28,795 |
Other | 138 | 315 |
Commissions to agents | 20,187 | 15,058 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Net premiums written | 4,057 | 3,119 |
Other | 502 | 473 |
Commissions to agents | $ 2,679 | $ 2,073 |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Title Plant (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combinations [Abstract] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 |
Goodwill | 4,400 | |
Title Plants | 690 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Intangible Assets, Goodwill a_4
Intangible Assets, Goodwill and Title Plant Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Finite-Lived Intangible Assets [Abstract] | ||
Referral Relationships | $ 6,416 | $ 6,416 |
Non-compete Agreements | 1,406 | 1,406 |
Tradename | 560 | 560 |
Identifiable Intangible Assets, Gross | 8,382 | 8,382 |
Accumulated Amortization | (2,583) | (2,456) |
Identifiable Intangible Assets, Net | $ 5,799 | $ 5,926 |
Business Combinations, Intangib
Business Combinations, Intangible Assets and Goodwill, Schedule of Aggregate Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Business Combinations [Abstract] | ||
2020 | $ 378 | |
2021 | 562 | |
2022 | 525 | |
2023 | 525 | |
2024 | 473 | |
Thereafter | 3,336 | |
Identifiable Intangible Assets, Net | $ 5,799 | $ 5,926 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 3,100 | |
Other comprehensive income | 12 | $ 1,143 |
Ending balance | 3,112 | |
Unrealized Gains and Losses On Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 3,132 | 981 |
Other comprehensive income before reclassifications | (304) | 1,143 |
Amounts reclassified from accumulated other comprehensive income | 348 | 0 |
Other comprehensive income | 44 | 1,143 |
Ending balance | 3,176 | 2,124 |
Postretirement Benefits Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (32) | (32) |
Other comprehensive income before reclassifications | (32) | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive income | (32) | 0 |
Ending balance | (64) | (32) |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 3,100 | 949 |
Other comprehensive income before reclassifications | (336) | 1,143 |
Amounts reclassified from accumulated other comprehensive income | 348 | 0 |
Other comprehensive income | 12 | 1,143 |
Ending balance | $ 3,112 | $ 2,092 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gain (loss) on investments | $ (412,000) | $ 790,000 |
Income (loss) before income taxes | 8,529,000 | (8,313,000) |
Tax | (1,518,000) | 1,687,000 |
Net income (loss) | (7,011,000) | 6,626,000 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 348,000 | $ 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-For-Sale Securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gain (loss) on investments | 30,000 | |
Other-than-temporary impairments | (482,000) | |
Income (loss) before income taxes | (452,000) | |
Tax | 104,000 | |
Net income (loss) | $ 348,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 4,389 | $ 3,710 |
Total Revenues | 29,901 | 39,946 |
Escrow and other title-related fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 1,842 | 1,322 |
Non-title services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,547 | 2,388 |
Net premiums written | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | 38,627 | 28,795 |
Investment-related (loss) revenue | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | (13,253) | 7,126 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | $ 138 | $ 315 |
Leases Operating Lease Cost (De
Leases Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Lease expense | $ 320 | $ 314 |
Short-term leases | 30 | 34 |
Sub-lease income | 0 | 0 |
Lease cost | $ 350 | $ 348 |
Leases Current and Noncurrent L
Leases Current and Noncurrent Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, liability, current | $ 1,071 | $ 1,048 |
Operating lease, liability, noncurrent | 3,266 | 3,454 |
Operating lease, liability | $ 4,337 | $ 4,502 |
Leases Schedule of Lease Paymen
Leases Schedule of Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 940 | |
2020 | 1,166 | |
2021 | 955 | |
2022 | 666 | |
2023 | 495 | |
Thereafter | 596 | |
Total undiscounted payments | 4,818 | |
Less: present value adjustment | (481) | |
Operating lease, liability | $ 4,337 | $ 4,502 |
Leases Other Information (Detai
Leases Other Information (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 4 years 8 months 1 day | 4 years 10 months 2 days |
Weighted average discount rate | 4.60% | 4.60% |