Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-11774 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 206,377,716 | ||
Entity Common Stock, Shares Outstanding | 1,890,623 | ||
Documents Incorporated by Reference | Portions of Investors Title Company’s definitive proxy statement for the Annual Meeting of Shareholders to be held May 15, 2024 are incorporated by reference in Part III hereof. | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0000720858 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | ITIC | ||
Security Exchange Name | NASDAQ | ||
Rights To Purchase Series A Junior Participating Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Rights to Purchase Series A Junior Participating Preferred Stock | ||
Security Exchange Name | NASDAQ | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Informaton [Abstract] | |
Auditor Name | FORVIS, LLP |
Auditor Firm ID | 686 |
Auditor Location | High Point, NC |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 24,031 | $ 35,311 |
Investments in securities: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2023: $63,106; December 31, 2022: $53,775) | 63,847 | 53,989 |
Equity securities, at fair value (cost: December 31, 2023: $22,981; December 31, 2022: $25,278) | 37,212 | 51,691 |
Short-term investments | 110,224 | 103,649 |
Other investments | 17,385 | 18,368 |
Total investments | 228,668 | 227,697 |
Premium and fees receivable | 13,338 | 19,047 |
Accrued interest and dividends | 978 | 872 |
Prepaid expenses and other receivables | 13,525 | 11,095 |
Property, net | 23,886 | 17,785 |
Goodwill and other intangible assets, net | 16,249 | 17,611 |
Lease assets | 6,303 | 6,707 |
Other assets | 2,500 | 2,458 |
Current income taxes receivable | 1,081 | 1,174 |
Total Assets | 330,559 | 339,757 |
Liabilities: | ||
Reserve for claims | 37,147 | 37,192 |
Accounts payable and accrued liabilities | 31,864 | 47,050 |
Lease liabilities | 6,449 | 6,839 |
Deferred income taxes, net | 3,546 | 7,665 |
Total liabilities | 79,006 | 98,746 |
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 1,897 shares issued and outstanding as of December 31, 2023 and 2022, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 |
Retained earnings | 250,915 | 240,811 |
Accumulated other comprehensive income | 638 | 200 |
Total shareholders’ equity | 251,553 | 241,011 |
Total Liabilities and Shareholders’ Equity | $ 330,559 | $ 339,757 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 63,106 | $ 53,775 |
Equity securities, cost | $ 22,981 | $ 25,278 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 1,891 | 1,897 |
Common stock, shares outstanding | 1,891 | 1,897 |
Common stock, held by Company's subsidiary | 292 | 292 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||
Net premiums written | $ 171,158 | $ 248,632 |
Escrow and other title-related fees | 17,109 | 22,314 |
Non-title services | 19,237 | 13,931 |
Interest and dividends | 9,055 | 4,704 |
Other investment income | 3,752 | 3,896 |
Net realized investment gains (losses) | 3,448 | (11,226) |
Other | 991 | 1,141 |
Total Revenues | 224,750 | 283,392 |
Operating Expenses: | ||
Commissions to agents | 83,374 | 121,566 |
Provision for claims | 4,762 | 4,255 |
Personnel expenses | 76,706 | 85,331 |
Office and technology expenses | 17,359 | 17,323 |
Other expenses | 16,319 | 24,809 |
Total Operating Expenses | 198,520 | 253,284 |
Income before Income Taxes | 26,230 | 30,108 |
Provision for Income Taxes | 4,544 | 6,205 |
Net Income | $ 21,686 | $ 23,903 |
Basic Earnings per Common Share | $ 11.45 | $ 12.60 |
Weighted Average Shares Outstanding – Basic | 1,893 | 1,897 |
Diluted Earnings per Common Share | $ 11.45 | $ 12.59 |
Weighted Average Shares Outstanding – Diluted | 1,893 | 1,898 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 21,686 | $ 23,903 |
Other comprehensive income (loss), before income tax: | ||
Accumulated postretirement benefit obligation adjustment | 24 | 228 |
Unrealized gains (losses) on investments arising during the period | 320 | (4,342) |
Reclassification adjustment for sale of securities included in net income | 0 | 104 |
Reclassification adjustment for write-down of securities included in net income | 208 | 172 |
Other comprehensive income (loss), before income tax | 552 | (3,838) |
Income tax expense related to postretirement health benefits | 5 | 48 |
Income tax expense (benefit) related to net unrealized gains (losses) on investments arising during the year | 61 | (921) |
Income tax expense related to reclassification adjustment for sale of securities included in net income | 0 | 22 |
Income tax expense related to reclassification adjustment for write-down of securities included in net income | 48 | 39 |
Net income tax expense (benefit) on other comprehensive income (loss) | 114 | (812) |
Other comprehensive income (loss) | 438 | (3,026) |
Comprehensive Income | $ 22,124 | $ 20,877 |
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, 2021 | 1,895 | |||
Balance, beginning of year at Dec. 31, 2021 | $ 229,087 | $ 0 | $ 225,861 | $ 3,226 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income (Loss) | 23,903 | 23,903 | ||
Dividends | (9,181) | (9,181) | ||
Shares of common stock repurchased and retired (in shares) | (1) | |||
Shares of common stock repurchased and retired | (133) | (133) | ||
Exercise of stock appreciation rights (in shares) | 3 | |||
Exercise of stock appreciation rights | (1) | (1) | ||
Share-based compensation expense related to stock appreciation rights | 362 | 362 | ||
Accumulated postretirement benefit obligation adjustment | 180 | 180 | ||
Net unrealized gain (loss) on investments | (3,206) | (3,206) | ||
Balance, end of year, shares at Dec. 31, 2022 | 1,897 | |||
Balance, end of year at Dec. 31, 2022 | 241,011 | $ 0 | 240,811 | 200 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income (Loss) | 21,686 | 21,686 | ||
Dividends | (11,048) | (11,048) | ||
Shares of common stock repurchased and retired (in shares) | (7) | |||
Shares of common stock repurchased and retired | (959) | (959) | ||
Exercise of stock appreciation rights (in shares) | 1 | |||
Exercise of stock appreciation rights | 0 | 0 | ||
Share-based compensation expense related to stock appreciation rights | 425 | 425 | ||
Accumulated postretirement benefit obligation adjustment | 19 | 19 | ||
Net unrealized gain (loss) on investments | 419 | 419 | ||
Balance, end of year, shares at Dec. 31, 2023 | 1,891 | |||
Balance, end of year at Dec. 31, 2023 | $ 251,553 | $ 0 | $ 250,915 | $ 638 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend declared per share | $ 5.84 | $ 4.84 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities | ||
Net Income (Loss) | $ 21,686 | $ 23,903 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,760 | 2,298 |
(Accretion) amortization of investments, net | (3,698) | 271 |
Amortization of other intangible assets, net | 1,361 | 1,282 |
Share-based compensation expense related to stock appreciation rights | 425 | 362 |
Net gains on disposals of property | (204) | (58) |
Net investment (gains) losses on securities | (3,448) | 11,226 |
Net earnings from other investments | (3,206) | (2,224) |
Provision for claims | 4,762 | 4,255 |
Benefit for deferred income taxes | (4,234) | (4,644) |
Changes in assets and liabilities: | ||
Decrease in premium and fees receivable | 5,709 | 3,906 |
Decrease in other assets | 621 | 532 |
Decrease (increase) in lease assets | 404 | (1,505) |
Decrease (increase) in current income taxes receivable | 93 | (1,174) |
(Decrease) increase in lease liabilities | (390) | 1,510 |
(Decrease) increase in accounts payable and accrued liabilities | (10,408) | 3,410 |
Decrease in current income taxes payable | 0 | (3,329) |
Payments of claims, net of recoveries | (4,807) | (3,817) |
Net cash provided by (used in) operating activities | 7,426 | 36,204 |
Investing Activities | ||
Purchases of fixed maturity securities | (20,339) | (10,704) |
Purchases of equity securities | (11,969) | (5,855) |
Purchases of short-term investments | (174,742) | (101,718) |
Purchase of subsidiary | 0 | (4,927) |
Purchases of other investments | (3,006) | (1,574) |
Proceeds from sales and maturities of fixed maturity securities | 10,937 | 31,305 |
Proceeds from the sale of equity securities | 30,216 | 20,785 |
Proceeds from sales and maturities of short-term investments | 166,362 | 44,236 |
Proceeds from sales and distributions of other investments | 4,499 | 5,332 |
Proceeds from sales of other assets | 0 | 29 |
Purchases of property, equipment and software | (9,186) | (5,681) |
Proceeds from disposals of property | 529 | 26 |
Net cash provided by (used in) investing activities | (6,699) | (28,746) |
Financing Activities | ||
Repurchases of common stock | (959) | (133) |
Exercise of stock appreciation rights | 0 | (1) |
Dividends paid | (11,048) | (9,181) |
Net cash provided by (used in) financing activities | (12,007) | (9,315) |
Net Increase (Decrease) in Cash and Cash Equivalents | (11,280) | (1,857) |
Cash and Cash Equivalents, Beginning of Period | 35,311 | 37,168 |
Cash and Cash Equivalents, End of Period | 24,031 | 35,311 |
Cash Paid During the Year for: | ||
Income tax payments, net | 8,688 | 15,363 |
Non cash net unrealized (gain) loss on investments, net of deferred tax (expense) benefit of $(109) and $860 for December 31, 2023 and 2022, respectively | (419) | 3,206 |
Adjustments to postretirement benefits obligation, net of deferred tax expense of $(5) and $(48) for December 31, 2023 and 2022, respectively | (19) | (180) |
Non cash 1031 exchange proceeds | 2,589 | 0 |
Goodwill and other intangibles acquired | 0 | (2,832) |
Title plant acquired | 0 | (637) |
Prepaid and other assets acquired | 0 | (121) |
Fixed assets acquired | 0 | (1,337) |
Purchase of subsidiary, net of cash received | $ 0 | $ (4,927) |
Consolidated Statements Of Ca_2
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Non cash net unrealized (gain) loss on investments, net of deferred tax (expense) benefit of $(109) and $860 for December 31, 2023 and 2022, respectively | $ (109) | $ 860 |
Adjustments to postretirement benefits obligation, net of deferred tax expense of $(5) and $(48) for December 31, 2023 and 2022, respectively | $ (5) | $ (48) |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business: Investors Title Company’s (the “Company”) two primary business segments are title insurance and exchange services. The title insurance segment, through its two subsidiaries, Investors Title Insurance Company (“ITIC”) and National Investors Title Insurance Company (“NITIC”), is licensed to insure titles to residential, institutional, commercial and industrial properties. The Company issues title insurance policies directly and through a network of agents in 22 states and the District of Columbia, primarily in the eastern half of the United States. The majority of the Company’s title insurance business is concentrated in North Carolina, Texas, South Carolina and Georgia. Investors Title Exchange Corporation (“ITEC”) acts as an intermediary in tax-deferred exchanges of property held for productive use in a trade or business or for investments, while Investors Title Accommodation Corporation (“ITAC”) provides services for accomplishing reverse exchanges when taxpayers decide to acquire replacement property before selling the relinquished property. Principles of Consolidation and Basis of Presentation: The accompanying 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”). All intercompany balances and transactions have been eliminated in consolidation. Reclassifications: Certain amounts have been reclassified for consistency with the current period presentation. The reclassifications were between revenue lines of the Consolidated Statements of Operations. These reclassifications are not considered an accounting change and had no effect on the reported results of operations. Significant Accounting Policies: The significant accounting policies of the Company are summarized below. Cash and Cash Equivalents For the purpose of presentation in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. Investments in Securities Investments in Fixed Maturity Securities : Fixed maturity securities are classified as available-for-sale and reported at estimated fair value with unrealized gains and losses, net of tax and adjusted for recognized impairment, and reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is impaired. 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. If the Company intends to sell an available-for-sale security in an unrealized loss position, or determines that it is more likely than not that the Company will be required to sell the security before it recovers its amortized cost basis, the security is impaired and it is written down to estimated fair value with all losses recognized in earnings. For available-for-sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security, 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 (loss), net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) in 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. The ACL may be reversed if conditions change through an adjustment to the Consolidated Statements of Operations. Changes in the ACL 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. Impairment reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information about the Company’s investments in fixed maturity securities. Investments in Equity Securities: Equity securities represent ownership interests held by the Company in entities for investment purposes. Changes in the estimated fair value of equity security investments are reported in the Consolidated Statements of Operations. Realized investment gains and losses from sales are recorded on the trade date and are determined using the specific identification method. Refer to Note 3 for further information about the Company’s investments in equity securities. Other Investments Other investments consist of investments in real estate and unconsolidated affiliated entities, typically structured as limited liability companies ("LLCs"), without readily determinable fair values. As of December 31, 2023, the Company had investments in real estate of $2.5 million and investments in unconsolidated affiliated entities of $14.9 million. As of December 31, 2022, the Company had investments in real estate of $5.0 million and investments in unconsolidated affiliated entities of $13.3 million. Real estate investments are reported at amortized cost. Depreciation and other related expenses are recorded as an offset to the related rental income. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of real estate investments and makes any necessary adjustments, with any reductions in the carrying amount of these investments recorded in net investment gains (losses) in the Consolidated Statement of Operations when recognized. Lease rental income earned by the Company, which does not have a material impact on the Company's results of operations, is included with other revenues in the Consolidated Statements of Operations. Investments in unconsolidated affiliated entities are accounted for under either the equity method or the measurement alternative method. The measurement alternative method is used when an investment does not qualify for either the equity method or an estimated fair value using the net asset value per share. Under the measurement alternative method, investments are recorded at cost, less any impairment and plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. 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. Short-Term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, U.S. Treasury bills, commercial paper, certificates of deposit, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or estimated realizable value, net of any indebtedness on the property. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in other assets in the Consolidated Balance Sheets. Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. Reserve for Claims The total reserve for all reported and unreported losses the Company incurred through December 31, 2023 is represented by the reserve for claims. The Company’s reserve for unpaid losses and loss adjustment expenses is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). Despite the variability of such estimates, management believes that the reserve is adequate to cover claims losses resulting from pending and future claims for policies issued through December 31, 2023. The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Management records a provision for future claim payments at the time the related premium revenue is recognized by applying a loss provision rate against net premiums written. Management determines its loss provision rate through the consideration of factors such as the Company’s historical claim experience, case reserve estimates on reported claims, large claims, actuarial projections, and other relevant factors. The Company’s specialist utilizes accepted actuarial methodologies when performing the actuarial projections. Management’s assumptions include assumed comparability to its historical claims experience unless factors, such as loss experience and charged premium rates, change significantly, as well as assumptions around large losses related to fraud and defalcation. Claims 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 acquiring company carries the assets as property acquired in the settlement of claims. Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of settlement of the related real estate transaction, as the earnings process is then considered complete, irrespective of the timing of issuance of a title insurance policy or commitment. Expenses typically associated with premiums, including agent commissions, premium taxes, and a provision for future claims are recognized concurrent with recognition of related premium revenue. Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable over the term of the receivables. On a quarterly basis, the Company considers its historical loss experience as well as current conditions and reasonable and supportable forecasts to determine the allowance for doubtful accounts. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Operations. Receivables deemed uncollectible have not been material to the Company. Exchange Services Revenue Fees are recognized at the signing of a binding agreement, as the earnings process, or performance obligation, is then considered to be complete. Investment earnings are recognized as they are earned. Exchange services revenue is included in non-title services in the Consolidated Statements of Operations. Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Refer to Note 3 for further information regarding investments in securities and fair value. Accumulated Other Comprehensive Income The Company’s accumulated other comprehensive income is comprised of unrealized holding gains or losses on available-for-sale securities, net of tax, and unrealized gains or losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2023 consists of $583 thousand of unrealized holding gains on available-for-sale securities and $55 thousand of unrecognized actuarial gains associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2022 consists of $164 thousand of unrealized holding gains on available-for-sale securities and $36 thousand of unrecognized actuarial gains associated with postretirement benefit liabilities. Refer to Note 18 for further information regarding accumulated other comprehensive income. Share-Based Compensation Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. The fair value of the Company’s goodwill at acquisition is principally based on values obtained from an independent third-party valuation service. Goodwill was reviewed for impairment as of December 31, 2023, and is reviewed at least annually, or when events or changes in circumstances indicate the carrying value may not be recoverable. When evaluating whether goodwill is impaired, the Company determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired as of the testing date. If the qualitative analysis does not indicate that an impairment of goodwill is more likely than not, then no other specific quantitative impairment testing is required. If it is determined that it is more likely than not that an impairment exists, the Company performs a quantitative assessment whereby a discounted cash flow analysis is utilized to determine an estimated fair value. The estimated fair value is compared to the carrying value of goodwill as of the measurement date. The discounted cash flows used in estimating fair value are dependent on a number of significant assumptions, and therefore estimated fair value measurements are subject to change given the inherent uncertainty in predicting future results and cash flows. Other Intangible Assets The Company’s other intangible assets consist of non-compete agreements, referral relationships and a tradename resulting from agency acquisitions; all of which are recorded at the acquisition date fair value. The fair value of the Company’s other intangible assets is principally based on values obtained from an independent third-party valuation service. Assets with remaining useful lives will be amortized on a straight-line basis over those useful lives, which range from 3 months to 23 years as of December 31, 2023. Other intangible assets are reviewed for impairment at least annually or when events or changes in circumstances indicate the carrying value may not be recoverable. Title Plants Title plants represent a historical record of matters affecting title to parcels of land in a particular geographic area. Title plants are recorded at the cost incurred to construct or obtain and organize historical title information to the point it can be used to perform title searches. Costs incurred to maintain, update and operate title plants are expensed as incurred. Title plants are not amortized as they are considered to have an indefinite life with no diminishment of value if properly maintained; but are subject to impairment evaluation, which the Company performs on at least an annual basis. Leases At inception, the Company determines if an arrangement is a lease. The Company enters into lease agreements that are primarily used for office space, and the majority of current leases are accounted for as operating leases. Amounts related to leases are included in lease assets and lease liabilities in the Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the stated lease term. Lease liabilities represent the Company’s obligation to make lease payments arising from a lease. Lease assets and liabilities are recognized at the date of the lease commencement, and are based on the present value of lease payments over the lease term. The Company's current leases do not provide an implicit interest rate, thus the Company utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields in determining the present value of lease payments. A portion of the Company's current leases includes an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The 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. A lease expense is recognized on a straight-line basis over the lease term. Adjustments for straight-line rental expense for the periods presented are not material and as such, the lease expense recognized was reflected in cash used in operating activities for the respective periods. Refer to Note 9 for further information about the Company's leases. Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. Use of Estimates and Assumptions The preparation of the 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 and the accompanying Notes to Consolidated Financial Statements. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims: The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported. A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of net premiums written. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining its loss provision rates and the aggregate recorded expected liability for claims. In establishing the reserve, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in the current period’s statements of operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to the reserve in the results of operations in the period in which new information (principally claims experience) becomes available. Premiums written: Premium revenues issued directly and by agency operations include accruals for transactions which have settled but have not been reported as of the balance sheet date. These accruals are based on estimates of the typical lag time between settlement of real estate transactions and the reporting of these transactions to the Company. Reporting lag times vary by market. In certain markets, the lag time may be very short, but in others, can be as high as 3 months. The Company reviews and adjusts lag time estimates periodically, using historical experience and other factors, and reflects any adjustments in the result of operations in the period in which new information becomes available. Impairments: Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is an impairment. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be an impairment, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is an impairment include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the impairment analysis. Such reviews 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 estimated fair values of the majority of the Company’s investments are based on quoted market prices from independent pricing services. |
Statutory Restrictions on Conso
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | Statutory Accounting and Restrictions on Consolidated Shareholders’ Equity and Investments The Consolidated Financial Statements have been prepared in conformity with GAAP, which differ in some respects from statutory accounting practices prescribed or permitted in the preparation of financial statements for submission to insurance regulatory authorities. Combined capital and surplus on a statutory basis was $243.3 million and $235.6 million as of December 31, 2023 and 2022, respectively. Net income on a statutory basis was $31.6 million and $35.6 million and for the years ended December 31, 2023 and 2022, respectively. The Company has designated approximately $52.1 million and $53.3 million of retained earnings as of December 31, 2023 and 2022, respectively, as appropriated to reflect the required statutory premium and supplemental reserves. Refer to Note 8 for the tax treatment of the statutory premium reserve. As of December 31, 2023 and 2022, approximately $113.0 million and $110.3 million, respectively, of consolidated shareholders’ equity represents net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval. During 2024, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators total approximately $17.5 million. Fixed maturity securities with fair market values totaling approximately $6.7 million at December 31, 2023 and 2022, are deposited with the insurance departments of the states in which business is conducted. |
Investments in Securities and F
Investments in Securities and Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 (in thousands) Amortized Gross Gross Estimated Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 2,220 $ 2 $ (2) $ 2,220 General obligations of U.S. states, territories and political subdivisions 9,419 64 (24) 9,459 Special revenue issuer obligations of U.S. states, territories and political subdivisions 24,908 145 (66) 24,987 Corporate debt securities 26,559 655 (33) 27,181 Total $ 63,106 $ 866 $ (125) $ 63,847 As of December 31, 2022 (in thousands) Amortized Gross Gross Estimated Fixed maturity securities, available-for-sale, at fair value: Governmental obligations $ 4,329 $ — $ (7) $ 4,322 General obligations of U.S. states, territories and political subdivisions 8,561 21 (36) 8,546 Special revenue issuer obligations of U.S. states, territories and political subdivisions 30,123 106 (219) 30,010 Corporate debt securities 10,762 417 (68) 11,111 Total $ 53,775 $ 544 $ (330) $ 53,989 The special revenue category for both periods presented includes approximately 30 individual fixed maturity securities with revenue sources from a variety of industry sectors. The scheduled maturities of fixed maturity securities at December 31, 2023 are as follows: Available-for-Sale (in thousands) Amortized Fair Due in one year or less $ 24,328 $ 24,430 Due after one year through five years 27,348 27,530 Due after five years through ten years 10,597 10,785 Due after ten years 833 1,102 Total $ 63,106 $ 63,847 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 December 31, 2023 and 2022, respectively: Less than 12 Months 12 Months or Longer Total As of December 31, 2023 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,488 $ (2) $ — $ — $ 1,488 $ (2) General obligations of U.S. states, territories and political subdivisions 5,925 (23) 101 (1) 6,026 (24) Special revenue issuer obligations of U.S. states, territories and political subdivisions 7,124 (16) 3,085 (50) 10,209 (66) Corporate debt securities 6,052 (29) 296 (4) 6,348 (33) Total $ 20,589 $ (70) $ 3,482 $ (55) $ 24,071 $ (125) Less than 12 Months 12 Months or Longer Total As of December 31, 2022 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 4,322 $ (7) $ — $ — $ 4,322 $ (7) General obligations of U.S. states, territories and political subdivisions 3,221 (36) — — 3,221 (36) Special revenue issuer obligations of U.S. states, territories and political subdivisions 12,568 (216) 1,100 (3) 13,668 (219) Corporate debt securities 6,498 (68) — — 6,498 (68) Total $ 26,609 $ (327) $ 1,100 $ (3) $ 27,709 $ (330) 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. 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. Factors considered in determining whether a loss is credit-related include the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 52 and 51 fixed maturity securities had unrealized losses at December 31, 2023 and 2022, respectively. The Company does not intend 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 market 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 $201 thousand and $172 thousand of impairment charges related to fixed maturity securities for the twelve-month periods ended December 31, 2023 and 2022, respectively. Expenses related to impairments are recorded in net realized investment gains (losses) 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 December 31, 2023 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 22,981 $ 37,212 Total $ 22,981 $ 37,212 As of December 31, 2022 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 25,278 $ 51,691 Total $ 25,278 $ 51,691 Unrealized holding gains and losses are recorded in net investment gains (losses) in the Consolidated Statements of Operations. Interest and Dividends Earnings on investments for the years ended December 31 are as follows: (in thousands) 2023 2022 Fixed maturity securities $ 2,317 $ 1,902 Equity securities 1,078 1,425 Invested cash and other short-term investments 5,659 1,375 Miscellaneous interest 1 2 Interest and dividends $ 9,055 $ 4,704 Net Investment Gains (Losses) Gross realized gains and losses on sales of investments and unrealized holding gains and losses for the years ended December 31 are summarized as follows: (in thousands) 2023 2022 Gross realized gains from securities: Corporate debt securities $ — $ — Common stocks 16,350 11,020 Total $ 16,350 $ 11,020 Gross realized losses from securities: General obligations of U.S. states, territories and political subdivisions $ — $ (353) Corporate debt securities — (104) Common stocks (400) (290) Impairment of securities (201) (172) Total $ (601) $ (919) Net realized gains from securities $ 15,749 $ 10,101 Net realized other investment gains (losses): Gains on other investments $ 5 $ — Losses on other investments (123) (366) Total $ (118) $ (366) Net realized investment gains $ 15,631 $ 9,735 Changes in the estimated fair value of equity security investments $ (12,183) $ (20,961) Net investment gains (losses) $ 3,448 $ (11,226) 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 consolidated 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 and no participation rights exist. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or LLCs, as of December 31, 2023: Type of Investment (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss * Real estate LLCs or LPs Other investments $ 13,310 $ 14,166 $ 18,060 Small business investment LLCs or LPs Other investments 200 200 80 Total $ 13,510 $ 14,366 $ 18,140 * 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 Financial Accounting Standards Board (“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 intended to represent market participant 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 GAAP. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of December 31, 2023 and 2022, 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, certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments are excluded from the scope of disclosures. 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. Notes receivable Notes receivable are recorded at amortized cost and are included in prepaid expenses and other receivables in the Consolidated Balance Sheets. The amortized cost is the amount at which a receivable is originated and adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments. 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 December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ 2,220 $ 34,446 $ — $ 36,666 Corporate debt securities — 27,181 — 27,181 Total $ 2,220 $ 61,627 $ — $ 63,847 As of December 31, 2022 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ 4,322 $ 38,556 $ — $ 42,878 Corporate debt securities — 11,111 — 11,111 Total $ 4,322 $ 49,667 $ — $ 53,989 *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 December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 24,031 $ — $ — $ 24,031 Accrued interest and dividends 978 — — 978 Equity securities, at fair value: Common stocks 37,212 — — 37,212 Short-term investments: Money market funds and U.S. Treasury bills 110,224 — — 110,224 Total $ 172,445 $ — $ — $ 172,445 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 35,311 $ — $ — $ 35,311 Accrued interest and dividends 872 — — 872 Equity securities, at fair value: Common stocks 51,691 — — 51,691 Short-term investments: Money market funds and U.S. Treasury bills 103,649 — — 103,649 Total $ 191,523 $ — $ — $ 191,523 The Company did not hold any Level 3 category debt or marketable equity investment securities as of December 31, 2023 or 2022. 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 GAAP, 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. Certain equity investments under the measurement alternative and notes receivable 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 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 twelve-month periods ended December 31, 2023 or 2022. The following table presents assets measured at fair value on a non-recurring basis as of December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 9,300 $ 9,300 Notes receivable — — 2,201 2,201 Total $ — $ — $ 11,501 $ 11,501 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Financials assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 8,915 $ 8,915 Notes receivable — — 1,921 1,921 Total $ — $ — $ 10,836 $ 10,836 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment and estimated useful lives at December 31 are summarized as follows: (in thousands) 2023 2022 Land $ 805 $ 805 Office buildings and improvements (25 years) 6,168 6,460 Furniture, fixtures and equipment (3 to 10 years) 33,966 25,202 Automobiles (3 years) 1,405 1,367 Total 42,344 33,834 Less accumulated depreciation (18,458) (16,049) Property and equipment, net $ 23,886 $ 17,785 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company assumes and cedes reinsurance with other insurance companies in the normal course of business. There were no premiums assumed for 2023 and 2022. Ceded premiums were approximately $354 thousand and $818 thousand for 2023 and 2022, respectively. Ceded reinsurance is comprised of excess of loss treaties, which outline the conditions in which the reinsurance company will pay claims and protect against losses over certain agreed upon amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event the assuming insurance companies are unable to meet their obligations under these contracts. The Company did not pay or recover any reinsured losses during 2023 and 2022. |
Reserves for Claims
Reserves for Claims | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Reserves for Claims | Reserve for Claims Changes in the reserve for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: (in thousands) 2023 2022 Balance, beginning of period $ 37,192 $ 36,754 Provision related to: Current year 7,547 9,817 Prior years (2,785) (5,562) Total provision charged to operations 4,762 4,255 Claims paid, net of recoveries, related to: Current year (428) (333) Prior years (4,379) (3,484) Total claims paid, net of recoveries (4,807) (3,817) Balance, end of year $ 37,147 $ 37,192 The Company continually refines its reserve estimates as current loss experience develops and more credible data emerges. Movements in the reserve related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The increase in the provision for claims in 2023, compared to 2022, is primarily related to less favorable loss development and higher incurred claims in the current period. Due to variances between actual and expected loss payments, loss development is subject to significant variability. The Company does not recognize claim recoveries until an actual payment has been received by the Company. The Company realized claim recoveries of approximately $597 thousand and $1.0 million during 2023 and 2022, respectively. The provision for claims as a percentage of net premiums written was 2.8% and 1.7% in 2023 and 2022, respectively. A large claim is defined as a claim with incurred losses exceeding $500 thousand. Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops. 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) 2023 % 2022 % Known title claims $ 2,855 7.7 $ 3,250 8.7 IBNR 34,292 92.3 33,942 91.3 Total reserve for claims $ 37,147 100.0 $ 37,192 100.0 In management’s opinion, the reserve for claims is adequate to cover claims losses which might result from pending and future claims. |
Earnings Per Common Share and S
Earnings Per Common Share and Share Awards | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share and Share Awards | Earnings Per Common Share and Share Awards Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net 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, when share-based awards are assumed to be 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 earnings per share for the years ended December 31: (in thousands, except per share amounts) 2023 2022 Net Income $ 21,686 $ 23,903 Weighted average common shares outstanding – Basic 1,893 1,897 Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) — 1 Weighted average common shares outstanding – Diluted 1,893 1,898 Basic earnings per common share $ 11.45 $ 12.60 Diluted earnings per common share $ 11.45 $ 12.59 There were 24 thousand and 18 thousand potential shares excluded from the computation of diluted earnings per share in 2023 and 2022, respectively, due to the out-of-the-money status of the related share-based awards rendering them anti-dilutive. 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. As of December 31, 2023 there was one active plan from which the Company may grant share-based awards and one legacy plan under which equity awards remain outstanding. 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 December 31, 2023, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. All outstanding SARs vest and are exercisable within five years or less from the date of grant, and 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. During both 2023 and 2022, the Company issued share-settled SARs to directors of the Company. During 2022, the Company also issued share-settled SARs to certain non-executive employees of the Company. 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. 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 Weighted Average Aggregate Outstanding as of January 1, 2022 35 $ 150.36 3.96 $ 1,643 SARs granted 10 155.16 SARs exercised (6) 94.44 Outstanding as of December 31, 2022 39 $ 159.39 4.10 $ 243 SARs granted 5 142.88 SARs exercised (2) 93.87 Outstanding as of December 31, 2023 42 $ 160.83 3.69 $ 428 Exercisable as of December 31, 2023 34 $ 165.33 3.38 $ 265 Unvested as of December 31, 2023 8 $ 142.58 4.93 $ 163 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock at December 31. The intrinsic values of SARs exercised during 2023 and 2022 were approximately $156 thousand and $496 thousand, respectively. There were no options outstanding at December 31, 2023. The following table summarizes information about SARs outstanding at December 31, 2023: (in thousands, except exercise prices and average remaining contractual term) SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Weighted Weighted Number Weighted $ 60.00 — $ 99.99 — 0.00 $ — — $ — 100.00 — 149.99 18 4.79 139.11 10 136.27 150.00 — 199.99 24 2.82 177.84 24 177.84 $ 60.00 — $ 199.99 42 3.69 $ 160.83 34 $ 165.33 In 2023, 8 thousand SARs vested with a fair value of approximately $425 thousand. The fair value of each SAR 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 values for the SARs issued during 2023 and 2022 were $55.52 and $62.60, respectively, and were estimated using the weighted average assumptions shown in the table below: 2023 2022 Expected life in years 6.2 - 7.0 7.0 Volatility 36.6% 35.6% Interest rate 3.7% 3.2% Yield rate 1.2% 0.6% There was approximately $425 thousand and $362 thousand of compensation expense relating to SARs vesting on or before December 31, 2023 and 2022, respectively, included in personnel expenses in the Consolidated Statements of Operations. As of December 31, 2023, there was approximately $407 thousand of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock award plans. That cost is expected to be recognized over a weighted average period of approximately one year. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31 are summarized as follows: (in thousands) 2023 2022 Current: Federal $ 8,389 $ 10,685 State 389 164 Total current 8,778 10,849 Deferred: Federal (4,150) (4,510) State (84) (134) Total deferred (4,234) (4,644) Total $ 4,544 $ 6,205 For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in other expenses in the Consolidated Statements of Operations. At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: (in thousands) 2023 2022 Deferred income tax assets: Accrued benefits and retirement services $ 3,990 $ 3,860 Net operating loss carryforward 246 202 Impairment of assets 186 185 Reinsurance and commission payable 62 28 Allowance for doubtful accounts 29 59 Lease assets 1,354 1,280 Other 563 519 Total 6,430 6,133 Deferred income tax liabilities: Net unrealized gain on investments 3,157 5,615 Recorded statutory premium reserve, net of reserves for claims 2,223 2,497 Intangible assets 797 885 Excess of tax over book depreciation 657 1,551 Lease liabilities 1,324 1,252 1031 gain 935 912 Other 883 1,086 Total 9,976 13,798 Net deferred income tax liabilities $ (3,546) $ (7,665) At December 31, 2023 and 2022, there were no valuation allowances recorded. Based upon the Company’s historical results of operations, the existing financial condition of the Company and management’s assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized. A reconciliation of the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2023 and 2022, to income tax expense, is as follows: (in thousands) 2023 2022 Anticipated income tax expense $ 5,508 $ 6,323 Increase (decrease) related to: State income taxes, net of federal income tax benefit 307 130 Tax-exempt interest income, net of amortization (525) (577) Other, net (746) 329 Provision for income taxes $ 4,544 $ 6,205 In accounting for uncertainty in income taxes, the Company is required to recognize in its Consolidated Financial Statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position. In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. There were no unrecognized tax benefits or liabilities as of December 31, 2023. The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions. The Company’s policy is to report interest and penalties related to income taxes in the other expenses line item in the Consolidated Statements of Operations. The Company files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal or state and local examinations by taxing authorities for years before 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases, Lease Cost | Leases The Company enters into lease agreements that are primarily 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. The Company occasionally assumes equipment lease agreements through business acquisitions. These leases are accounted for as finance leases. Included in a portion of the Company's current leases is an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The 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 inception date 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 is available to the Company. Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s leases for the years ended December 31 is as follows: (in thousands) 2023 2022 Operating leases $ 2,591 $ 2,518 Finance leases: Amortization of lease assets 237 168 Interest on lease liabilities 22 24 Short-term leases (a) 141 214 Lease expense $ 2,991 $ 2,924 Sub-lease income (14) — Lease cost $ 2,977 $ 2,924 (a) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. Components of the lease liability presented in the Consolidated Balance Sheets for the years ended December 31 are as follows: (in thousands) 2023 2022 Current: Operating lease liabilities $ 2,201 $ 1,693 Finance lease liabilities 170 218 Non-current: Operating lease liabilities 3,792 4,401 Finance lease liabilities 286 527 Total lease liabilities $ 6,449 $ 6,839 The future minimum payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2023, are summarized as follows: Year Ended (in thousands) Operating Leases Finance Leases Total 2024 $ 2,385 $ 183 $ 2,568 2025 2,045 147 2,192 2026 1,265 109 1,374 2027 366 41 407 2028 135 — 135 Thereafter 151 — 151 Total undiscounted payments $ 6,347 $ 480 $ 6,827 Less: present value adjustment (354) (24) (378) Lease liabilities $ 5,993 $ 456 $ 6,449 Supplemental lease information for the years ended December 31 is as follows: 2023 2022 Weighted average remaining lease term (years) Operating leases 3.07 3.43 Finance leases 2.93 3.80 Weighted average discount rate Operating leases 3.8 % 3.9 % Finance leases 3.7 % 3.7 % The Company does not have any material pending operating or financing lease agreements that become effective in future periods. |
Retirement Agreements and Other
Retirement Agreements and Other Postretirement Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Agreements and Other Postretirement Benefit Plan | Retirement Agreements and Other Postretirement Benefit Plan The Company has a 401(k) savings plan. In order to participate in the plan, employees must be 21 years old. In order to be eligible for employer contributions, individuals must be employed for a period of one year and work at least 1,000 hours annually. The Company makes a 3% Safe Harbor contribution and also has the option annually to make a discretionary profit share contribution. Individuals may elect to make contributions up to the maximum deductible amount as determined by the Internal Revenue Code of 1986, as amended (the “IRC”). Expenses related to the 401(k) plan were approximately $1.6 million and $1.7 million for 2023 and 2022, respectively. In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of ITIC. These individuals also serve as the Chairman, President and Executive Vice President, respectively, of the Company. The agreements provide compensation and life, health, dental and vision benefits upon the occurrence of specific events, including death, disability, retirement, termination without cause or upon a change in control. The employment agreements also prohibit each of these executives from competing with ITIC and its parent, subsidiaries and affiliates in North Carolina while employed by ITIC and for a period of two years following termination of their employment. In addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation plan agreements with these executives. The amounts accrued for all agreements at December 31, 2023 and 2022 were approximately $15.2 million and $15.0 million, respectively, which includes postretirement compensation and health benefits, and was calculated based on the terms of the contract. Both the 2023 and 2022 accruals are included in the accounts payable and accrued liabilities line item of the Consolidated Balance Sheets. These executive contracts are accounted for on an individual contract basis. On December 24, 2008, the executive contracts were amended effective January 1, 2009 to bring them into compliance with Section 409A of the IRC, and were amended and restated to provide for an annual cash payment to the officers equal to the amounts the Company would have contributed to their accounts under its 401(k) plan if such contributions were not limited by the federal tax laws, less the amount of any contributions that the Company actually makes to their accounts under the Company’s 401(k) plan. On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement, which were most recently amended and restated on May 4, 2022. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $24 thousand in 2024, $36 thousand in 2025, $44 thousand in 2026, $58 thousand in 2027, $83 thousand in 2028 and $297 thousand in the next five years thereafter. Cost of the Company’s postretirement benefits included the following components and is presented in the personnel expenses (in thousands) 2023 2022 Net periodic benefit cost Service cost – benefits earned during the year $ — $ — Interest cost on the projected benefit obligation 65 26 Amortization of unrecognized prior service cost — — Amortization of unrecognized (gain) loss (37) 12 Net periodic benefits cost at end of year $ 28 $ 38 The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $68 thousand, $55 thousand net of tax, for December 31, 2023, and $44 thousand, $36 thousand net of tax, for December 31, 2022, and represents the net unrecognized actuarial gains and unrecognized prior service costs. The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2023 and 2022 are presented in the following table: (in thousands) 2023 2022 Funded status Actuarial present value of future benefits: Fully eligible active employees $ (906) $ (928) Non-eligible active employees — — Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in accounts payable and accrued liabilities $ (906) $ (928) Development of the accumulated postretirement benefit obligation for the years ended December 31, 2023 and 2022 includes the following: (in thousands) 2023 2022 Accrued postretirement benefit obligation at beginning of year $ (928) $ (1,118) Service cost – benefits earned during the year — — Interest cost on projected benefit obligation (65) (26) Actuarial gain 87 216 Accrued postretirement benefit obligation at end of year $ (906) $ (928) The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: (in thousands) 2023 2022 Balance at beginning of year $ 44 $ (184) Components of accumulated other comprehensive income: Unrecognized prior service cost — — Amortization of gain (loss), net (37) 12 Actuarial gain 61 216 Balance at end of year $ 68 $ 44 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 is not expected to, 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 and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or 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. Cash administered by the Company for these purposes was approximately $28.2 million and $24.2 million as of December 31, 2023 and 2022, 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 the disposition of these deposits. Like-Kind Exchange Proceeds: In administering tax-deferred like-kind exchanges pursuant to § 1031 of the IRC, the Company’s wholly owned subsidiary, ITEC, serves as a qualified intermediary, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company wholly owned subsidiary, ITAC, serves as exchange accommodation titleholder and, through LLCs that are wholly owned subsidiaries of ITAC, holds property in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $263.7 million and $432.0 million as of December 31, 2023 and 2022, 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 the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenue includes earnings on these deposits; therefore, investment income is shown as other revenues rather than investment income. These like-kind exchange funds are primarily invested in money market funds and other short-term investments. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments, title insurance and exchange 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. The tax-deferred exchange services segment acts as an intermediary in tax-deferred exchanges of property held for productive use in a trade or business or for investments and serves as exchange accommodation titleholder, holding property for exchangers in reverse exchange transactions. Provided below is selected financial information about the Company’s operations by segment for the periods ended December 31, 2023 and 2022: 2023 (in thousands) Title Exchange All Intersegment Total Insurance and other services revenues $ 207,140 $ 13,270 $ 7,800 $ (19,715) $ 208,495 Net investment income 12,303 196 3,756 — 16,255 Total revenues $ 219,443 $ 13,466 $ 11,556 $ (19,715) $ 224,750 Operating expenses 204,979 2,518 8,885 (17,862) 198,520 Income before income taxes $ 14,464 $ 10,948 $ 2,671 $ (1,853) $ 26,230 Total assets $ 216,622 $ 5,534 $ 108,403 $ — $ 330,559 2022 (in thousands) Title Exchange All Intersegment Total Insurance and other services revenues $ 294,851 $ 8,038 $ 7,502 $ (24,373) $ 286,018 Net investment (loss) income (2,678) 43 9 — (2,626) Total revenues $ 292,173 $ 8,081 $ 7,511 $ (24,373) $ 283,392 Operating expenses 264,952 2,666 8,557 (22,891) 253,284 Income (loss) before income taxes $ 27,221 $ 5,415 $ (1,046) $ (1,482) $ 30,108 Total assets $ 244,399 $ 3,101 $ 92,257 $ — $ 339,757 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity On November 12, 2002, the Company’s Board of Directors amended the Company’s Articles of Incorporation, creating a series of preferred stock designated Series A Junior Participating Preferred Stock (the “Series A Preferred Stock”). The Series A Preferred Stock is senior to common stock in dividends or distributions of assets upon liquidation, dissolution or winding up of the Company. Dividends on the Series A Preferred Stock are cumulative and accrue from the quarterly dividend payment date. Each share of Series A Preferred Stock entitles the holder thereof to 100 votes on all matters submitted to a vote of shareholders of the Company. These shares were reserved for issuance under the Shareholder Rights Plan, which was originally adopted on November 21, 2002 by the Company’s Board of Directors and most recently amended and restated on September 30, 2022 (as amended and restated, the “Plan”). Under the terms of the Plan, the Company’s common stock acquired by a person or a group buying 15% or more of the Company’s common stock would be diluted, except in transactions approved by the Board of Directors. The Plan expires on September 30, 2032. In connection with the adoption of the Plan, the Company’s Board of Directors declared a dividend distribution of one right (a “Right”) for each outstanding share of the Company’s common stock paid on December 16, 2002, to shareholders of record at the close of business on December 2, 2002. Each Right entitles the registered holder to purchase from the Company a unit (a “Unit”) consisting of one one-hundredth of a share of Series A Preferred Stock. Under the Plan, the Rights detach and become exercisable upon the earlier of (a) 10 days following public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of the Company’s common stock, or (b) 10 business days following the commencement of, or first public announcement of the intent of a person or group to commence, a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of such outstanding shares of the Company’s common stock. The current price to exercise one Right is $525 per Unit. The exercise price, the kind and the number of shares covered by each Right are subject to adjustment upon the occurrence of certain events described in the Plan. If any person or group of affiliated or associated persons acquires beneficial ownership of 15% or more of the outstanding common stock, each holder of a Right (other than the acquiring person or group) will have the right to buy, at the exercise price, common stock of the Company having a market value of twice the exercise price. If the Company is acquired in a merger or consolidation in which the Company is not the surviving corporation, or the Company engages in a merger or consolidation in which the Company is the surviving corporation and the Company’s common stock is changed or exchanged, or more than 50% of the Company’s assets or earning power is sold or transferred, the Rights entitle a holder (other than the acquiring person or group) to buy, at the exercise price, stock of the acquiring company having a market value equal to twice the exercise price. At any time after a person or group of affiliated or associated persons has acquired beneficial ownership of 15% or more of the outstanding common stock and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Company’s Board of Directors may exchange the Rights (other than the Rights owned by such person or group), in whole or in part, at an exchange ratio of one share of the Company’s common stock, or one one-hundredth of a share of Series A Preferred Stock, per Right. The Rights are redeemable upon action by the Board of Directors at a price of $0.01 per Right at any time before they become exercisable. Until the Rights become exercisable, they are evidenced only by the common stock certificates and are transferred with and only with such certificates. There were 1.0 million shares of Preferred Stock authorized as of December 31, 2023 and 2022, with 200,000 being designated Series A Preferred Stock. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company invests its cash and cash equivalents into high credit quality security instruments. Deposits which exceed $250 thousand at each institution are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Of the $24.0 million in cash and cash equivalents at December 31, 2023, $22.3 million was not insured by the FDIC. Of the $35.3 million in cash and cash equivalents at December 31, 2022, $33.8 million was not insured by the FDIC. The Company mitigates the risk of having cash and cash equivalents not insured by the FDIC by monitoring the credit quality of the financial institutions in which the funds are held. |
Business Concentration
Business Concentration | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Business Concentration | Business Concentration The Company generates a significant amount of title insurance premiums in North Carolina, Texas, South Carolina and Georgia. In 2023 and 2022, these states generated the following percentage of total premiums written: State 2023 2022 North Carolina 37.4 % 35.6 % Texas 27.0 % 29.0 % South Carolina 9.3 % 9.4 % Georgia 6.8 % 9.2 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company does business with, and has investments in, unconsolidated LLCs that are primarily title insurance agencies. The Company utilizes the equity method to account for its investments in these LLCs. The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) 2023 2022 Other investments $ 5,561 $ 4,420 Premium and fees receivable $ 627 $ 735 Financial Statement Classification, Consolidated Statements of Operations (in thousands) 2023 2022 Net premiums written $ 22,131 $ 26,666 Non-title services and other investment income $ 4,062 $ 2,935 Commissions to agents $ 15,115 $ 18,798 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Title Plants | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisition | Intangible Assets The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions are principally based on values obtained from an independent third-party valuation service and are all Level 3 inputs. Management determined that no events or changes in circumstances occurred during the periods ended December 31, 2023 and 2022 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 as of December 31: Year Ended (in thousands) 2023 2022 Referral relationships $ 8,898 $ 8,898 Non-compete agreements 3,155 3,155 Tradename 747 747 Total 12,800 12,800 Accumulated amortization (6,176) (4,814) Identifiable intangible assets, net $ 6,624 $ 7,986 The following table provides the estimated aggregate amortization expense, as of December 31, 2023 for each of the five succeeding fiscal years: Year Ended (in thousands) 2024 $ 1,178 2025 1,095 2026 1,095 2027 679 2028 650 Thereafter 1,740 Total $ 6,437 Goodwill and Title Plants |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | The following table provides changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2023 and 2022: 2023 (in thousands) Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 164 $ 36 $ 200 Other comprehensive income before calculations 259 19 278 Amounts reclassified from accumulated other comprehensive income 160 — 160 Net current-period other comprehensive income 419 19 438 Ending balance $ 583 $ 55 $ 638 2022 (in thousands) Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 3,370 $ (144) $ 3,226 Other comprehensive (loss) income before calculations (3,421) 180 (3,241) Amounts reclassified from accumulated other comprehensive income 215 — 215 Net current-period other comprehensive (loss) income (3,206) 180 (3,026) Ending balance $ 164 $ 36 $ 200 The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended December 31, 2023 and 2022: 2023 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized losses on investments $ — Impairments (208) Total $ (208) Net investment gains (losses) Tax 48 Provision for Income Taxes Net of Tax $ (160) Reclassifications for the period $ (160) 2022 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains and losses on available-for-sale securities: Net realized losses on investments $ (104) Impairments (172) Total $ (276) Net investment gains (losses) Tax 61 Provision for Income Taxes Net of Tax $ (215) Reclassifications for the period $ (215) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue from Contracts with Customers ASC 606, Revenue from Contracts with Customers , 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: (in thousands) 2023 2022 Revenue from contracts with customers: Escrow and other title-related fees $ 17,109 $ 22,314 Non-title services 19,237 13,931 Total revenue from contracts with customers 36,346 36,245 Other sources of revenue: Net premiums written 171,158 248,632 Investment-related revenue (loss) 16,255 (2,626) Other 991 1,141 Total revenues $ 224,750 $ 283,392 |
Schedule I
Schedule I | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties | SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2023 Type of Investment (in thousands) Cost (1) Market Value Amount at which shown in the Balance Sheet (3) Fixed maturity securities: Government obligations $ 2,220 $ 2,220 $ 2,220 General obligations of U.S. states, territories and political subdivisions 9,419 9,459 9,459 Special revenue issuer obligations of U.S. states, territories and political subdivisions 18,514 18,525 18,525 Public utilities 6,394 6,462 6,462 Corporate debt securities 26,559 27,181 27,181 Total fixed maturity securities 63,106 63,847 63,847 Equity securities: Common stocks: Public utilities 176 301 301 Banks, trusts and insurance companies 1,441 2,385 2,385 Industrial, miscellaneous and all other 19,738 29,539 29,539 Technology 1,626 4,987 4,987 Total equity securities 22,981 37,212 37,212 Other investments: Short-term investments 110,224 110,224 110,224 Other investments (2) 14,170 14,170 14,170 Total other investments 124,394 124,394 124,394 Total investments (2) $ 210,481 $ 225,453 $ 225,453 (1) Fixed maturity securities are shown at amortized cost and equity securities are shown at original cost. (2) The above summary of investments does not include investments in related parties accounted for under the equity method or the measurement alternative methods of accounting in the amount of $3,215. (3) All fixed maturity securities presented are classified as available-for-sale and shown at estimated fair value. Equity securities are shown at fair value. |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS AS OF DECEMBER 31, 2023 AND 2022 (in thousands) 2023 2022 Assets Cash and cash equivalents $ 4,409 $ 3,450 Fixed maturity securities, available-for-sale, at fair value 4,287 5,900 Equity securities, at fair value 188 325 Short-term investments 83,095 64,832 Investments in affiliated companies 148,934 159,700 Other investments 4,172 6,703 Prepaid expenses and other receivables 5,516 3,864 Current income taxes receivable 1,293 2,799 Accrued interest and dividends 192 185 Property, net 1,562 1,691 Total Assets $ 253,648 $ 249,449 Liabilities and Shareholders’ Equity Liabilities: Accounts payable and accrued liabilities $ 1,842 $ 7,726 Deferred income taxes, net 253 712 Total liabilities 2,095 8,438 Shareholders’ Equity: Preferred stock (1,000 authorized shares; no shares issued) — — Common stock – no par value (10,000 authorized shares; 1,891 and 1,897 shares issued and outstanding as of December 31, 2023 and 2022, respectively, excluding in each period 292 shares of common stock held by the Company) — — Retained earnings 250,915 240,811 Accumulated other comprehensive income 638 200 Total shareholders’ equity 251,553 241,011 Total Liabilities and Shareholders’ Equity $ 253,648 $ 249,449 Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (in thousands, except per share amounts) 2023 2022 Revenues: Interest and dividends $ 3,671 $ 990 Net investment losses (142) (739) Rental income 922 869 Gain on disposals of property 194 — Miscellaneous (loss) income (36) 305 Total Revenues 4,609 1,425 Operating Expenses: Personnel expenses 874 947 Office and technology expenses 628 447 Other expenses 979 936 Total Operating Expenses 2,481 2,330 Equity in Net Income of Affiliated Companies 19,670 24,584 Income before Income Taxes 21,798 23,679 Provision (Benefit) for Income Taxes 112 (224) Net Income $ 21,686 $ 23,903 Basic Earnings per Common Share $ 11.45 $ 12.60 Weighted Average Shares Outstanding – Basic 1,893 1,897 Diluted Earnings per Common Share $ 11.45 $ 12.59 Weighted Average Shares Outstanding – Diluted 1,893 1,898 Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (in thousands) 2023 2022 Operating Activities Net income $ 21,686 $ 23,903 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net earnings of subsidiaries (19,670) (24,584) Depreciation 126 115 Amortization, net (2,924) (272) Share-based compensation expense related to stock appreciation rights 425 362 Net gains on disposal of property (194) — Net investment losses on securities 142 343 Net realized losses on other investments — 396 Net losses from other investments 21 11 Benefit for deferred income taxes (433) (927) (Increase) decrease in receivables (1,652) 1,249 Decrease (increase) in current income taxes receivable 1,506 (2,799) Decrease (increase) in other assets 3,204 (153) Decrease in current income taxes payable — (433) (Decrease) increase in accounts payable and accrued liabilities (1,326) 3,212 Net cash provided by operating activities 911 423 Investing Activities Dividends received from subsidiaries 32,478 55,643 Purchases of fixed maturity and equity securities (1,203) (3,851) Purchases of short-term securities (127,789) (64,513) Purchases of and net earnings from other investments (81) (46) Proceeds from sales and maturities of fixed maturity and equity securities 2,892 5,278 Proceeds from sales and maturities of short-term securities 107,083 23,487 Proceeds from sales and distributions of other investments 2 776 Proceeds from sales of other assets — — Purchases of property (9) (201) Proceeds from disposals of property 206 60 Net cash provided by investing activities 13,579 16,633 Financing Activities Repurchases of common stock (959) (133) Exercise of stock appreciation rights — (1) Capital contribution to subsidiaries (1,524) (4,875) Dividends paid (11,048) (9,181) Net cash used in financing activities (13,531) (14,190) Net Increase in Cash and Cash Equivalents 959 2,866 Cash and Cash Equivalents, Beginning of Period 3,450 584 Cash and Cash Equivalents, End of Period $ 4,409 $ 3,450 Supplemental Disclosures: Income tax payments, net $ 8,320 $ 15,186 Non cash 1031 exchange proceeds receivable $ (2,589) $ — Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (in thousands) 1. The accompanying Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto of Investors Title Company and Subsidiaries. 2. Cash dividends paid to Investors Title Company by its wholly owned subsidiaries were as follows: Subsidiaries 2023 2022 Investors Title Insurance Company, net* $ 25,478 $ 48,243 Investors Title Exchange Corporation 5,800 4,300 Investors Title Accommodation Corporation — 100 Investors Trust Company 500 400 Investors Title Commercial Agency, LLC — 2,600 National Investors Holdings, LLC 700 — Total $ 32,478 $ 55,643 |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | SUPPLEMENTARY INSURANCE INFORMATION FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 Segment Deferred Policy Acquisition Cost Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written Year Ended December 31, 2023 (in thousands) Title $ — $ 37,147 $ — $ 804 $ 171,158 $ (2,926) $ 4,762 $ — $ 182,571 N/A All Other — — — — — 3,550 — — 11,187 N/A $ — $ 37,147 $ — $ 804 $ 171,158 $ 624 $ 4,762 $ — $ 193,758 N/A Year Ended December 31, 2022 (in thousands) Title $ — $ 37,192 $ — $ 1,491 $ 248,632 $ (9,333) $ 4,255 $ — $ 238,025 N/A All Other — — — — — (3,028) — — 11,004 N/A $ — $ 37,192 $ — $ 1,491 $ 248,632 $ (12,361) $ 4,255 $ — $ 249,029 N/A |
Schedule IV
Schedule IV | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | REINSURANCE FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentages of Amount Assumed to Net Year Ended December 31, 2023 (in thousands) Title Insurance $ 171,512 $ 354 $ — $ 171,158 — % Year Ended December 31, 2022 (in thousands) Title Insurance $ 249,450 $ 818 $ — $ 248,632 — % |
Schedule V
Schedule V | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 Description Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Charged to Other Accounts – Describe Deductions – Describe Balance at End of Period 2023 (in thousands) Premiums receivable: Valuation provision $ 159 $ 773 $ — $ (844) (a) $ 88 Reserves for claims $ 37,192 $ 4,762 $ — $ (4,807) (b) $ 37,147 2022 (in thousands) Premiums receivable: Valuation provision $ 190 $ 508 $ — $ (539) (a) $ 159 Reserves for claims $ 36,754 $ 4,255 $ — $ (3,817) (b) $ 37,192 (a) Canceled premiums (b) Payments of claims, net of recoveries |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 21,686 | $ 23,903 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis Of Presentation and Sig_2
Basis Of Presentation and Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation: The accompanying 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”). All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications: Certain amounts have been reclassified for consistency with the current period presentation. The reclassifications were between revenue lines of the Consolidated Statements of Operations. These reclassifications are not considered an accounting change and had no effect on the reported results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. |
Investments in Securities | Investments in Securities Investments in Fixed Maturity Securities : Fixed maturity securities are classified as available-for-sale and reported at estimated fair value with unrealized gains and losses, net of tax and adjusted for recognized impairment, and reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is impaired. 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. If the Company intends to sell an available-for-sale security in an unrealized loss position, or determines that it is more likely than not that the Company will be required to sell the security before it recovers its amortized cost basis, the security is impaired and it is written down to estimated fair value with all losses recognized in earnings. For available-for-sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security, 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 (loss), net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) in 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. The ACL may be reversed if conditions change through an adjustment to the Consolidated Statements of Operations. Changes in the ACL 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. Impairment reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information about the Company’s investments in fixed maturity securities. Investments in Equity Securities: Equity securities represent ownership interests held by the Company in entities for investment purposes. Changes in the estimated fair value of equity security investments are reported in the Consolidated Statements of Operations. Realized investment gains and losses from sales are recorded on the trade date and are determined using the specific identification method. Refer to Note 3 for further information about the Company’s investments in equity securities. |
Other Investments | Other Investments Other investments consist of investments in real estate and unconsolidated affiliated entities, typically structured as limited liability companies ("LLCs"), without readily determinable fair values. As of December 31, 2023, the Company had investments in real estate of $2.5 million and investments in unconsolidated affiliated entities of $14.9 million. As of December 31, 2022, the Company had investments in real estate of $5.0 million and investments in unconsolidated affiliated entities of $13.3 million. Real estate investments are reported at amortized cost. Depreciation and other related expenses are recorded as an offset to the related rental income. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of real estate investments and makes any necessary adjustments, with any reductions in the carrying amount of these investments recorded in net investment gains (losses) in the Consolidated Statement of Operations when recognized. Lease rental income earned by the Company, which does not have a material impact on the Company's results of operations, is included with other revenues in the Consolidated Statements of Operations. Investments in unconsolidated affiliated entities are accounted for under either the equity method or the measurement alternative method. The measurement alternative method is used when an investment does not qualify for either the equity method or an estimated fair value using the net asset value per share. Under the measurement alternative method, investments are recorded at cost, less any impairment and plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. 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. |
Short-term Investments | Short-Term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, U.S. Treasury bills, commercial paper, certificates of deposit, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. |
Property Acquired in Settlement of Claims | Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or estimated realizable value, net of any indebtedness on the property. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in other assets in the Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. |
Reserves for Claims | Reserve for Claims The total reserve for all reported and unreported losses the Company incurred through December 31, 2023 is represented by the reserve for claims. The Company’s reserve for unpaid losses and loss adjustment expenses is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). Despite the variability of such estimates, management believes that the reserve is adequate to cover claims losses resulting from pending and future claims for policies issued through December 31, 2023. The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Management records a provision for future claim payments at the time the related premium revenue is recognized by applying a loss provision rate against net premiums written. Management determines its loss provision rate through the consideration of factors such as the Company’s historical claim experience, case reserve estimates on reported claims, large claims, actuarial projections, and other relevant factors. The Company’s specialist utilizes accepted actuarial methodologies when performing the actuarial projections. Management’s assumptions include assumed comparability to its historical claims experience unless factors, such as loss experience and charged premium rates, change significantly, as well as assumptions around large losses related to fraud and defalcation. Claims 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 acquiring company carries the assets as property acquired in the settlement of claims. |
Income Taxes | Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. |
Premiums Written and Commissions to Agents | Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of settlement of the related real estate transaction, as the earnings process is then considered complete, irrespective of the timing of issuance of a title insurance policy or commitment. Expenses typically associated with premiums, including agent commissions, premium taxes, and a provision for future claims are recognized concurrent with recognition of related premium revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable over the term of the receivables. On a quarterly basis, the Company considers its historical loss experience as well as current conditions and reasonable and supportable forecasts to determine the allowance for doubtful accounts. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Operations. Receivables deemed uncollectible have not been material to the Company. |
Exchange Services Revenue | Exchange Services Revenue Fees are recognized at the signing of a binding agreement, as the earnings process, or performance obligation, is then considered to be complete. Investment earnings are recognized as they are earned. Exchange services revenue is included in non-title services in the Consolidated Statements of Operations. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Refer to Note 3 for further information regarding investments in securities and fair value. |
Comprehensive Income | The Company’s accumulated other comprehensive income is comprised of unrealized holding gains or losses on available-for-sale securities, net of tax, and unrealized gains or losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2023 consists of $583 thousand of unrealized holding gains on available-for-sale securities and $55 thousand of unrecognized actuarial gains associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2022 consists of $164 thousand of unrealized holding gains on available-for-sale securities and $36 thousand of unrecognized actuarial gains associated with postretirement benefit liabilities. Refer to Note 18 for further information regarding accumulated other comprehensive income. |
Share-Based Compensation | Share-Based Compensation Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Goodwill and Other Intangible Assets | Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. The fair value of the Company’s goodwill at acquisition is principally based on values obtained from an independent third-party valuation service. Goodwill was reviewed for impairment as of December 31, 2023, and is reviewed at least annually, or when events or changes in circumstances indicate the carrying value may not be recoverable. When evaluating whether goodwill is impaired, the Company determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired as of the testing date. If the qualitative analysis does not indicate that an impairment of goodwill is more likely than not, then no other specific quantitative impairment testing is required. If it is determined that it is more likely than not that an impairment exists, the Company performs a quantitative assessment whereby a discounted cash flow analysis is utilized to determine an estimated fair value. The estimated fair value is compared to the carrying value of goodwill as of the measurement date. The discounted cash flows used in estimating fair value are dependent on a number of significant assumptions, and therefore estimated fair value measurements are subject to change given the inherent uncertainty in predicting future results and cash flows. Other Intangible Assets The Company’s other intangible assets consist of non-compete agreements, referral relationships and a tradename resulting from agency acquisitions; all of which are recorded at the acquisition date fair value. The fair value of the Company’s other intangible assets is principally based on values obtained from an independent third-party valuation service. Assets with remaining useful lives will be amortized on a straight-line basis over those useful lives, which range from 3 months to 23 years as of December 31, 2023. Other intangible assets are reviewed for impairment at least annually or when events or changes in circumstances indicate the carrying value may not be recoverable. |
Title Plant | Title Plants Title plants represent a historical record of matters affecting title to parcels of land in a particular geographic area. Title plants are recorded at the cost incurred to construct or obtain and organize historical title information to the point it can be used to perform title searches. Costs incurred to maintain, update and operate title plants are expensed as incurred. Title plants are not amortized as they are considered to have an indefinite life with no diminishment of value if properly maintained; but are subject to impairment evaluation, which the Company performs on at least an annual basis. |
Leases | Leases At inception, the Company determines if an arrangement is a lease. The Company enters into lease agreements that are primarily used for office space, and the majority of current leases are accounted for as operating leases. Amounts related to leases are included in lease assets and lease liabilities in the Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the stated lease term. Lease liabilities represent the Company’s obligation to make lease payments arising from a lease. Lease assets and liabilities are recognized at the date of the lease commencement, and are based on the present value of lease payments over the lease term. The Company's current leases do not provide an implicit interest rate, thus the Company utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields in determining the present value of lease payments. A portion of the Company's current leases includes an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The 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. A lease expense is recognized on a straight-line basis over the lease term. Adjustments for straight-line rental expense for the periods presented are not material and as such, the lease expense recognized was reflected in cash used in operating activities for the respective periods. Refer to Note 9 for further information about the Company's leases. |
Subsequent Events | Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. |
Use Of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of the 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 and the accompanying Notes to Consolidated Financial Statements. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims: The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported. A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of net premiums written. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining its loss provision rates and the aggregate recorded expected liability for claims. In establishing the reserve, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in the current period’s statements of operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to the reserve in the results of operations in the period in which new information (principally claims experience) becomes available. Premiums written: Premium revenues issued directly and by agency operations include accruals for transactions which have settled but have not been reported as of the balance sheet date. These accruals are based on estimates of the typical lag time between settlement of real estate transactions and the reporting of these transactions to the Company. Reporting lag times vary by market. In certain markets, the lag time may be very short, but in others, can be as high as 3 months. The Company reviews and adjusts lag time estimates periodically, using historical experience and other factors, and reflects any adjustments in the result of operations in the period in which new information becomes available. Impairments: Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is an impairment. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be an impairment, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is an impairment include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the impairment analysis. Such reviews 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 estimated fair values of the majority of the Company’s investments are based on quoted market prices from independent pricing services. |
Investments in Securities and_2
Investments in Securities and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gains (Losses) and Amortized Cost for 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 December 31, 2023 (in thousands) Amortized Gross Gross Estimated Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 2,220 $ 2 $ (2) $ 2,220 General obligations of U.S. states, territories and political subdivisions 9,419 64 (24) 9,459 Special revenue issuer obligations of U.S. states, territories and political subdivisions 24,908 145 (66) 24,987 Corporate debt securities 26,559 655 (33) 27,181 Total $ 63,106 $ 866 $ (125) $ 63,847 As of December 31, 2022 (in thousands) Amortized Gross Gross Estimated Fixed maturity securities, available-for-sale, at fair value: Governmental obligations $ 4,329 $ — $ (7) $ 4,322 General obligations of U.S. states, territories and political subdivisions 8,561 21 (36) 8,546 Special revenue issuer obligations of U.S. states, territories and political subdivisions 30,123 106 (219) 30,010 Corporate debt securities 10,762 417 (68) 11,111 Total $ 53,775 $ 544 $ (330) $ 53,989 The cost and estimated fair value of equity securities are as follows: As of December 31, 2023 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 22,981 $ 37,212 Total $ 22,981 $ 37,212 As of December 31, 2022 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 25,278 $ 51,691 Total $ 25,278 $ 51,691 |
Schedule Of Fixed Maturity Securities | The scheduled maturities of fixed maturity securities at December 31, 2023 are as follows: Available-for-Sale (in thousands) Amortized Fair Due in one year or less $ 24,328 $ 24,430 Due after one year through five years 27,348 27,530 Due after five years through ten years 10,597 10,785 Due after ten years 833 1,102 Total $ 63,106 $ 63,847 |
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 December 31, 2023 and 2022, respectively: Less than 12 Months 12 Months or Longer Total As of December 31, 2023 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,488 $ (2) $ — $ — $ 1,488 $ (2) General obligations of U.S. states, territories and political subdivisions 5,925 (23) 101 (1) 6,026 (24) Special revenue issuer obligations of U.S. states, territories and political subdivisions 7,124 (16) 3,085 (50) 10,209 (66) Corporate debt securities 6,052 (29) 296 (4) 6,348 (33) Total $ 20,589 $ (70) $ 3,482 $ (55) $ 24,071 $ (125) Less than 12 Months 12 Months or Longer Total As of December 31, 2022 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 4,322 $ (7) $ — $ — $ 4,322 $ (7) General obligations of U.S. states, territories and political subdivisions 3,221 (36) — — 3,221 (36) Special revenue issuer obligations of U.S. states, territories and political subdivisions 12,568 (216) 1,100 (3) 13,668 (219) Corporate debt securities 6,498 (68) — — 6,498 (68) Total $ 26,609 $ (327) $ 1,100 $ (3) $ 27,709 $ (330) |
Schedule of Earnings on Investments | Earnings on investments for the years ended December 31 are as follows: (in thousands) 2023 2022 Fixed maturity securities $ 2,317 $ 1,902 Equity securities 1,078 1,425 Invested cash and other short-term investments 5,659 1,375 Miscellaneous interest 1 2 Interest and dividends $ 9,055 $ 4,704 |
Schedule of Gross Realized Gain (Loss) on Securities | Gross realized gains and losses on sales of investments and unrealized holding gains and losses for the years ended December 31 are summarized as follows: (in thousands) 2023 2022 Gross realized gains from securities: Corporate debt securities $ — $ — Common stocks 16,350 11,020 Total $ 16,350 $ 11,020 Gross realized losses from securities: General obligations of U.S. states, territories and political subdivisions $ — $ (353) Corporate debt securities — (104) Common stocks (400) (290) Impairment of securities (201) (172) Total $ (601) $ (919) Net realized gains from securities $ 15,749 $ 10,101 Net realized other investment gains (losses): Gains on other investments $ 5 $ — Losses on other investments (123) (366) Total $ (118) $ (366) Net realized investment gains $ 15,631 $ 9,735 Changes in the estimated fair value of equity security investments $ (12,183) $ (20,961) Net investment gains (losses) $ 3,448 $ (11,226) |
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 LLCs, as of December 31, 2023: Type of Investment (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss * Real estate LLCs or LPs Other investments $ 13,310 $ 14,166 $ 18,060 Small business investment LLCs or LPs Other investments 200 200 80 Total $ 13,510 $ 14,366 $ 18,140 * 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 December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ 2,220 $ 34,446 $ — $ 36,666 Corporate debt securities — 27,181 — 27,181 Total $ 2,220 $ 61,627 $ — $ 63,847 As of December 31, 2022 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ 4,322 $ 38,556 $ — $ 42,878 Corporate debt securities — 11,111 — 11,111 Total $ 4,322 $ 49,667 $ — $ 53,989 *Denotes fair market value obtained from pricing services. |
Schedule of Carrying Value and Fair Value of Financial Assets | The following table presents, by level, estimated fair values of equity investments and other financial instruments as of December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 24,031 $ — $ — $ 24,031 Accrued interest and dividends 978 — — 978 Equity securities, at fair value: Common stocks 37,212 — — 37,212 Short-term investments: Money market funds and U.S. Treasury bills 110,224 — — 110,224 Total $ 172,445 $ — $ — $ 172,445 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 35,311 $ — $ — $ 35,311 Accrued interest and dividends 872 — — 872 Equity securities, at fair value: Common stocks 51,691 — — 51,691 Short-term investments: Money market funds and U.S. Treasury bills 103,649 — — 103,649 Total $ 191,523 $ — $ — $ 191,523 |
Fair Value Measurements, Nonrecurring | The following table presents assets measured at fair value on a non-recurring basis as of December 31, 2023 and 2022: As of December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 9,300 $ 9,300 Notes receivable — — 2,201 2,201 Total $ — $ — $ 11,501 $ 11,501 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Financials assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 8,915 $ 8,915 Notes receivable — — 1,921 1,921 Total $ — $ — $ 10,836 $ 10,836 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment and estimated useful lives at December 31 are summarized as follows: (in thousands) 2023 2022 Land $ 805 $ 805 Office buildings and improvements (25 years) 6,168 6,460 Furniture, fixtures and equipment (3 to 10 years) 33,966 25,202 Automobiles (3 years) 1,405 1,367 Total 42,344 33,834 Less accumulated depreciation (18,458) (16,049) Property and equipment, net $ 23,886 $ 17,785 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reserves for Claims (Tables)
Reserves for Claims (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Summary Of Transactions In Reserves For Claims | Changes in the reserve for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: (in thousands) 2023 2022 Balance, beginning of period $ 37,192 $ 36,754 Provision related to: Current year 7,547 9,817 Prior years (2,785) (5,562) Total provision charged to operations 4,762 4,255 Claims paid, net of recoveries, related to: Current year (428) (333) Prior years (4,379) (3,484) Total claims paid, net of recoveries (4,807) (3,817) Balance, end of year $ 37,147 $ 37,192 |
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) 2023 % 2022 % Known title claims $ 2,855 7.7 $ 3,250 8.7 IBNR 34,292 92.3 33,942 91.3 Total reserve for claims $ 37,147 100.0 $ 37,192 100.0 |
Earnings Per Common Share and_2
Earnings Per Common Share and Share Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: (in thousands, except per share amounts) 2023 2022 Net Income $ 21,686 $ 23,903 Weighted average common shares outstanding – Basic 1,893 1,897 Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) — 1 Weighted average common shares outstanding – Diluted 1,893 1,898 Basic earnings per common share $ 11.45 $ 12.60 Diluted earnings per common share $ 11.45 $ 12.59 |
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 Weighted Average Aggregate Outstanding as of January 1, 2022 35 $ 150.36 3.96 $ 1,643 SARs granted 10 155.16 SARs exercised (6) 94.44 Outstanding as of December 31, 2022 39 $ 159.39 4.10 $ 243 SARs granted 5 142.88 SARs exercised (2) 93.87 Outstanding as of December 31, 2023 42 $ 160.83 3.69 $ 428 Exercisable as of December 31, 2023 34 $ 165.33 3.38 $ 265 Unvested as of December 31, 2023 8 $ 142.58 4.93 $ 163 |
Summary of Information of Fixed Stock Options | The following table summarizes information about SARs outstanding at December 31, 2023: (in thousands, except exercise prices and average remaining contractual term) SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Weighted Weighted Number Weighted $ 60.00 — $ 99.99 — 0.00 $ — — $ — 100.00 — 149.99 18 4.79 139.11 10 136.27 150.00 — 199.99 24 2.82 177.84 24 177.84 $ 60.00 — $ 199.99 42 3.69 $ 160.83 34 $ 165.33 |
Share-Based Valuation Assumptions | The weighted average fair values for the SARs issued during 2023 and 2022 were $55.52 and $62.60, respectively, and were estimated using the weighted average assumptions shown in the table below: 2023 2022 Expected life in years 6.2 - 7.0 7.0 Volatility 36.6% 35.6% Interest rate 3.7% 3.2% Yield rate 1.2% 0.6% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense for the years ended December 31 are summarized as follows: (in thousands) 2023 2022 Current: Federal $ 8,389 $ 10,685 State 389 164 Total current 8,778 10,849 Deferred: Federal (4,150) (4,510) State (84) (134) Total deferred (4,234) (4,644) Total $ 4,544 $ 6,205 |
Schedule of Deferred Tax Assets and Liabilities | At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: (in thousands) 2023 2022 Deferred income tax assets: Accrued benefits and retirement services $ 3,990 $ 3,860 Net operating loss carryforward 246 202 Impairment of assets 186 185 Reinsurance and commission payable 62 28 Allowance for doubtful accounts 29 59 Lease assets 1,354 1,280 Other 563 519 Total 6,430 6,133 Deferred income tax liabilities: Net unrealized gain on investments 3,157 5,615 Recorded statutory premium reserve, net of reserves for claims 2,223 2,497 Intangible assets 797 885 Excess of tax over book depreciation 657 1,551 Lease liabilities 1,324 1,252 1031 gain 935 912 Other 883 1,086 Total 9,976 13,798 Net deferred income tax liabilities $ (3,546) $ (7,665) |
Schedule of Reconciliation of Income Tax | A reconciliation of the U.S. federal statutory income tax rate of 21.0% for the years ended December 31, 2023 and 2022, to income tax expense, is as follows: (in thousands) 2023 2022 Anticipated income tax expense $ 5,508 $ 6,323 Increase (decrease) related to: State income taxes, net of federal income tax benefit 307 130 Tax-exempt interest income, net of amortization (525) (577) Other, net (746) 329 Provision for income taxes $ 4,544 $ 6,205 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | Information regarding the Company’s leases for the years ended December 31 is as follows: (in thousands) 2023 2022 Operating leases $ 2,591 $ 2,518 Finance leases: Amortization of lease assets 237 168 Interest on lease liabilities 22 24 Short-term leases (a) 141 214 Lease expense $ 2,991 $ 2,924 Sub-lease income (14) — Lease cost $ 2,977 $ 2,924 (a) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. |
Lessee Lease Liability Current Noncurrent | Components of the lease liability presented in the Consolidated Balance Sheets for the years ended December 31 are as follows: (in thousands) 2023 2022 Current: Operating lease liabilities $ 2,201 $ 1,693 Finance lease liabilities 170 218 Non-current: Operating lease liabilities 3,792 4,401 Finance lease liabilities 286 527 Total lease liabilities $ 6,449 $ 6,839 |
Lessee Lease Liability Maturity Table | The future minimum payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2023, are summarized as follows: Year Ended (in thousands) Operating Leases Finance Leases Total 2024 $ 2,385 $ 183 $ 2,568 2025 2,045 147 2,192 2026 1,265 109 1,374 2027 366 41 407 2028 135 — 135 Thereafter 151 — 151 Total undiscounted payments $ 6,347 $ 480 $ 6,827 Less: present value adjustment (354) (24) (378) Lease liabilities $ 5,993 $ 456 $ 6,449 |
Lease Other Information | Supplemental lease information for the years ended December 31 is as follows: 2023 2022 Weighted average remaining lease term (years) Operating leases 3.07 3.43 Finance leases 2.93 3.80 Weighted average discount rate Operating leases 3.8 % 3.9 % Finance leases 3.7 % 3.7 % |
Retirement Agreements and Oth_2
Retirement Agreements and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Benefits Cost | Cost of the Company’s postretirement benefits included the following components and is presented in the personnel expenses (in thousands) 2023 2022 Net periodic benefit cost Service cost – benefits earned during the year $ — $ — Interest cost on the projected benefit obligation 65 26 Amortization of unrecognized prior service cost — — Amortization of unrecognized (gain) loss (37) 12 Net periodic benefits cost at end of year $ 28 $ 38 |
Schedule of Net Funded Status On The Balance Sheet | The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2023 and 2022 are presented in the following table: (in thousands) 2023 2022 Funded status Actuarial present value of future benefits: Fully eligible active employees $ (906) $ (928) Non-eligible active employees — — Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in accounts payable and accrued liabilities $ (906) $ (928) |
Development Of The Accumulated Postretirement Benefit Obligation | Development of the accumulated postretirement benefit obligation for the years ended December 31, 2023 and 2022 includes the following: (in thousands) 2023 2022 Accrued postretirement benefit obligation at beginning of year $ (928) $ (1,118) Service cost – benefits earned during the year — — Interest cost on projected benefit obligation (65) (26) Actuarial gain 87 216 Accrued postretirement benefit obligation at end of year $ (906) $ (928) |
Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-Tax | The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: (in thousands) 2023 2022 Balance at beginning of year $ 44 $ (184) Components of accumulated other comprehensive income: Unrecognized prior service cost — — Amortization of gain (loss), net (37) 12 Actuarial gain 61 216 Balance at end of year $ 68 $ 44 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and 2022: 2023 (in thousands) Title Exchange All Intersegment Total Insurance and other services revenues $ 207,140 $ 13,270 $ 7,800 $ (19,715) $ 208,495 Net investment income 12,303 196 3,756 — 16,255 Total revenues $ 219,443 $ 13,466 $ 11,556 $ (19,715) $ 224,750 Operating expenses 204,979 2,518 8,885 (17,862) 198,520 Income before income taxes $ 14,464 $ 10,948 $ 2,671 $ (1,853) $ 26,230 Total assets $ 216,622 $ 5,534 $ 108,403 $ — $ 330,559 2022 (in thousands) Title Exchange All Intersegment Total Insurance and other services revenues $ 294,851 $ 8,038 $ 7,502 $ (24,373) $ 286,018 Net investment (loss) income (2,678) 43 9 — (2,626) Total revenues $ 292,173 $ 8,081 $ 7,511 $ (24,373) $ 283,392 Operating expenses 264,952 2,666 8,557 (22,891) 253,284 Income (loss) before income taxes $ 27,221 $ 5,415 $ (1,046) $ (1,482) $ 30,108 Total assets $ 244,399 $ 3,101 $ 92,257 $ — $ 339,757 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets | The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) 2023 2022 Other investments $ 5,561 $ 4,420 Premium and fees receivable $ 627 $ 735 |
Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income | Financial Statement Classification, Consolidated Statements of Operations (in thousands) 2023 2022 Net premiums written $ 22,131 $ 26,666 Non-title services and other investment income $ 4,062 $ 2,935 Commissions to agents $ 15,115 $ 18,798 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Title Plants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consist of the following as of December 31: Year Ended (in thousands) 2023 2022 Referral relationships $ 8,898 $ 8,898 Non-compete agreements 3,155 3,155 Tradename 747 747 Total 12,800 12,800 Accumulated amortization (6,176) (4,814) Identifiable intangible assets, net $ 6,624 $ 7,986 |
Schedule Of Aggregate Amortization Expense for Intangible Assets | The following table provides the estimated aggregate amortization expense, as of December 31, 2023 for each of the five succeeding fiscal years: Year Ended (in thousands) 2024 $ 1,178 2025 1,095 2026 1,095 2027 679 2028 650 Thereafter 1,740 Total $ 6,437 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 table provides changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2023 and 2022: 2023 (in thousands) Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 164 $ 36 $ 200 Other comprehensive income before calculations 259 19 278 Amounts reclassified from accumulated other comprehensive income 160 — 160 Net current-period other comprehensive income 419 19 438 Ending balance $ 583 $ 55 $ 638 2022 (in thousands) Unrealized Gains and Losses Postretirement Total Beginning balance at January 1 $ 3,370 $ (144) $ 3,226 Other comprehensive (loss) income before calculations (3,421) 180 (3,241) Amounts reclassified from accumulated other comprehensive income 215 — 215 Net current-period other comprehensive (loss) income (3,206) 180 (3,026) Ending balance $ 164 $ 36 $ 200 |
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 periods ended December 31, 2023 and 2022: 2023 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized losses on investments $ — Impairments (208) Total $ (208) Net investment gains (losses) Tax 48 Provision for Income Taxes Net of Tax $ (160) Reclassifications for the period $ (160) 2022 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains and losses on available-for-sale securities: Net realized losses on investments $ (104) Impairments (172) Total $ (276) Net investment gains (losses) Tax 61 Provision for Income Taxes Net of Tax $ (215) Reclassifications for the period $ (215) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides a breakdown of the Company’s revenue by major business activity: (in thousands) 2023 2022 Revenue from contracts with customers: Escrow and other title-related fees $ 17,109 $ 22,314 Non-title services 19,237 13,931 Total revenue from contracts with customers 36,346 36,245 Other sources of revenue: Net premiums written 171,158 248,632 Investment-related revenue (loss) 16,255 (2,626) Other 991 1,141 Total revenues $ 224,750 $ 283,392 |
Basis Of Presentation and Sig_3
Basis Of Presentation and Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Subsidiary State | Dec. 31, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of title insurance subsidiaries | Subsidiary | 2 | |
Number of States in which Entity operates | State | 22 | |
Real Estate Investments, Net | $ 2,500 | $ 5,000 |
Unconsolidated Affiliated Entities | 14,900 | 13,300 |
Unrealized holding gains on available-for-sale securities | 583 | 164 |
Unrecognized prior service cost and unrecognized actuarial gains associated with postretirement benefit liabilities | $ 55 | $ 36 |
Potential claim payment period after policy issuance | 20 years | |
Minimum | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Property and equipment useful life | 3 years | |
Finite-Lived Intangible Asset, Useful Life | 3 months | |
Maximum | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Property and equipment useful life | 25 years | |
Finite-Lived Intangible Asset, Useful Life | 23 years | |
Lag time between policy effective dates and transaction reporting dates | 3 months |
Statutory Restrictions on Con_2
Statutory Restrictions on Consolidated Stockholders' Equity and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | ||
Combined capital and surplus on statutory basis | $ 243.3 | $ 235.6 |
Net income statutory basis | 31.6 | 35.6 |
Statutory accounting statutory premium and supplemental reserves | 52.1 | 53.3 |
Amount available for dividend distribution with approval from regulatory agencies | 113 | 110.3 |
Statutory accounting practices, statutory amount available for dividend payments | 17.5 | |
Investments on deposit with state insurance departments | $ 6.7 | $ 6.7 |
Investments in Securities and_3
Investments in Securities and Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairments, gross realized losses | $ 201 | $ 172 |
Impaired amount for measurement alternative investments | $ 0 | $ 0 |
Investments in Securities and_4
Investments in Securities and Fair Value Investments in Securities (Schedule of Gross Unrealized Gains and Losses and Amortized Cost for Securities) (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | $ 63,106 | $ 53,775 |
Fixed maturity securities, available-for-sale, at fair value | 63,847 | 53,989 |
Government obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | 2,220 | 4,329 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2) | (7) |
Fixed maturity securities, available-for-sale, at fair value | 2,220 | 4,322 |
General obligations of U.S. states, territories and political subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | 9,419 | 8,561 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 64 | 21 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (24) | (36) |
Fixed maturity securities, available-for-sale, at fair value | 9,459 | 8,546 |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | 24,908 | 30,123 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 145 | 106 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (66) | (219) |
Fixed maturity securities, available-for-sale, at fair value | $ 24,987 | $ 30,010 |
Number of Special Revenue Bonds | 30 | 30 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | $ 26,559 | $ 10,762 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 655 | 417 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (33) | (68) |
Fixed maturity securities, available-for-sale, at fair value | 27,181 | 11,111 |
Total fixed maturity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total, amortized cost | 63,106 | 53,775 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 866 | 544 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (125) | (330) |
Fixed maturity securities, available-for-sale, at fair value | $ 63,847 | $ 53,989 |
Investments in Securities and_5
Investments in Securities and Fair Value Investments in Securities (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | $ 24,328 | |
Due after one year through five years | 27,348 | |
Due after five years through ten years | 10,597 | |
Due after ten years | 833 | |
Total, amortized cost | 63,106 | $ 53,775 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 24,430 | |
Due after one year through five years | 27,530 | |
Due after five years through ten years | 10,785 | |
Due after ten years | 1,102 | |
Total | $ 63,847 |
Investments in Securities and_6
Investments in Securities and Fair Value Investments in Securities (Schedule of Unrealized Losses on Investments) (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 52 | 51 |
Government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 1,488 | $ 4,322 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | (7) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 1,488 | 4,322 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (2) | (7) |
General obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 5,925 | 3,221 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (23) | (36) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 101 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 6,026 | 3,221 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (24) | (36) |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 7,124 | 12,568 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | (216) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,085 | 1,100 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (50) | (3) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 10,209 | 13,668 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (66) | (219) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 6,052 | 6,498 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (29) | (68) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 296 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4) | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 6,348 | 6,498 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (33) | (68) |
Total fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 20,589 | 26,609 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (70) | (327) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,482 | 1,100 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (55) | (3) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 24,071 | 27,709 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (125) | $ (330) |
Investments in Securities and_7
Investments in Securities and Fair Value Investments in Securities (Schedule of Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, cost | $ 22,981 | $ 25,278 |
Common stocks | 37,212 | 51,691 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, cost | 22,981 | 25,278 |
Common stocks | $ 37,212 | $ 51,691 |
Investments in Securities and_8
Investments in Securities and Fair Value Investments in Securities (Schedule of Earnings on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Interest and dividends | $ 9,055 | $ 4,704 |
Fixed maturity securities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Interest and dividends | 2,317 | 1,902 |
Equity securities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Interest and dividends | 1,078 | 1,425 |
Invested cash and other short-term investments | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Interest and dividends | 5,659 | 1,375 |
Miscellaneous interest | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Interest and dividends | $ 1 | $ 2 |
Investments in Securities and_9
Investments in Securities and Fair Value Investments in Securities (Schedule of Gross Realized Gains and Losses on Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt and equity securities, realized gains | $ 16,350 | $ 11,020 |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings | (201) | (172) |
Debt and equity securities, realized losses | (601) | (919) |
Debt and equity securities, net realized gain (loss) | 15,749 | 10,101 |
Gains on other assets and investments | 5 | 0 |
Losses on other assets and investments | (123) | (366) |
Net gains (losses) on sales of other investments | (118) | (366) |
Net realized investment gains (losses) | 15,631 | 9,735 |
Unrealized Gain (Loss) on Investments | (12,183) | (20,961) |
Net investment gains (losses) | 3,448 | (11,226) |
General obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, realized losses | 0 | (353) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, realized gains | 0 | 0 |
Debt securities, realized losses | 0 | (104) |
Common stocks and nonredeemable preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, realized gains | 16,350 | 11,020 |
Equity Securities, FV-NI, Realized Loss | $ (400) | $ (290) |
Investments in Securities an_10
Investments in Securities and Fair Value Investments in Securities (Schedule of Variable Interest Entities) (Details) - Other Investments $ in Thousands | Dec. 31, 2023 USD ($) |
Variable Interest Entity [Line Items] | |
Variable Interest Entity Nonconsolidated Carrying Amount | $ 13,510 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 14,366 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | 18,140 |
Real estate LLCs or LPs | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity Nonconsolidated Carrying Amount | 13,310 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 14,166 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | 18,060 |
Small business investment LLCs or LPs | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity Nonconsolidated Carrying Amount | 200 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 200 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | $ 80 |
Investments in Securities an_11
Investments in Securities and Fair Value Investments in Securities (Schedule of Fair Value Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | $ 63,847 | $ 53,989 |
Equity securities, at fair value (cost: December 31, 2023: $22,981; December 31, 2022: $25,278) | 37,212 | 51,691 |
Money market funds and U.S. Treasury bills | 110,224 | 103,649 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 2,220 | 4,322 |
Equity securities, at fair value (cost: December 31, 2023: $22,981; December 31, 2022: $25,278) | 37,212 | 51,691 |
Money market funds and U.S. Treasury bills | 110,224 | 103,649 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 61,627 | 49,667 |
Equity securities, at fair value (cost: December 31, 2023: $22,981; December 31, 2022: $25,278) | 0 | 0 |
Money market funds and U.S. Treasury bills | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Equity securities, at fair value (cost: December 31, 2023: $22,981; December 31, 2022: $25,278) | 0 | 0 |
Money market funds and U.S. Treasury bills | 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] | ||
Fixed maturity securities, available-for-sale, at fair value | 36,666 | 42,878 |
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] | ||
Fixed maturity securities, available-for-sale, at fair value | 2,220 | 4,322 |
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] | ||
Fixed maturity securities, available-for-sale, at fair value | 34,446 | 38,556 |
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] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 27,181 | 11,111 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 27,181 | 11,111 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | $ 0 | $ 0 |
Investments in Securities an_12
Investments in Securities and Fair Value Investments in Securities (Schedule of Carrying Value and Fair Value of Financial Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Cash | $ 24,031 | $ 35,311 |
Accrued interest and dividends | 978 | 872 |
Common stocks | 37,212 | 51,691 |
Money market funds and U.S. Treasury bills | 110,224 | 103,649 |
Assets, Fair Value Disclosure | 172,445 | 191,523 |
Level 1 | ||
Financial Assets | ||
Cash | 24,031 | 35,311 |
Accrued interest and dividends | 978 | 872 |
Common stocks | 37,212 | 51,691 |
Money market funds and U.S. Treasury bills | 110,224 | 103,649 |
Assets, Fair Value Disclosure | 172,445 | 191,523 |
Level 2 | ||
Financial Assets | ||
Cash | 0 | 0 |
Accrued interest and dividends | 0 | 0 |
Common stocks | 0 | 0 |
Money market funds and U.S. Treasury bills | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Financial Assets | ||
Cash | 0 | 0 |
Accrued interest and dividends | 0 | 0 |
Common stocks | 0 | 0 |
Money market funds and U.S. Treasury bills | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Investments in Securities an_13
Investments in Securities and Fair Value Investments in Securities (Schedule of Cost-method Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FairValueAssetsMeasuredOnNonrecurringBasisReconciliationCalculationRollForward [Line Items] | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | $ 9,300 | $ 8,915 |
Notes Receivable, Fair Value Disclosure | 2,201 | 1,921 |
Other Assets, Fair Value Disclosure | 11,501 | 10,836 |
Level 1 | ||
FairValueAssetsMeasuredOnNonrecurringBasisReconciliationCalculationRollForward [Line Items] | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 0 | 0 |
Notes Receivable, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Level 2 | ||
FairValueAssetsMeasuredOnNonrecurringBasisReconciliationCalculationRollForward [Line Items] | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 0 | 0 |
Notes Receivable, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
FairValueAssetsMeasuredOnNonrecurringBasisReconciliationCalculationRollForward [Line Items] | ||
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 9,300 | 8,915 |
Notes Receivable, Fair Value Disclosure | 2,201 | 1,921 |
Other Assets, Fair Value Disclosure | $ 11,501 | $ 10,836 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 42,344 | $ 33,834 |
Less accumulated depreciation | (18,458) | (16,049) |
Property and equipment, net | $ 23,886 | 17,785 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 25 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 805 | 805 |
Office buildings and improvements (25 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,168 | 6,460 |
Property and equipment useful life | 25 years | |
Furniture, fixtures and equipment (3 to 10 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,966 | 25,202 |
Furniture, fixtures and equipment (3 to 10 years) | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Furniture, fixtures and equipment (3 to 10 years) | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 10 years | |
Automobiles (3 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,405 | $ 1,367 |
Property and equipment useful life | 3 years |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Assumed premiums written | $ 0 | $ 0 |
Ceded premiums written | 354 | 818 |
Policyholder Benefits and Claims Incurred, Assumed and Ceded | $ 0 | $ 0 |
Reserves for Claims Summary Of
Reserves for Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Balance, beginning of period | $ 37,192 | $ 36,754 |
Provisions related to: Current year | 7,547 | 9,817 |
Provisions related to: Prior years | (2,785) | (5,562) |
Total provision charged to operations | 4,762 | 4,255 |
Claims paid, net of recoveries, related to: Current year | (428) | (333) |
Claims paid, net of recoveries, related to: Prior years | (4,379) | (3,484) |
Total claims paid, net of recoveries | (4,807) | (3,817) |
Balance, end of year | $ 37,147 | $ 37,192 |
Reserves for Claims Summary O_2
Reserves for Claims Summary Of The Company's Loss Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||
Known title claims | $ 2,855 | $ 3,250 | |
IBNR | 34,292 | 33,942 | |
Total reserve for claims | $ 37,147 | $ 37,192 | $ 36,754 |
% of Known title claims | 7.70% | 8.70% | |
% of IBNR | 92.30% | 91.30% | |
% of Total reserve for claims | 100% | 100% |
Reserves for Claims Narrative (
Reserves for Claims Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Realized claim recoveries | $ 597 | $ 1,000 |
Provision rate for title insurance claims | 2.80% | 1.70% |
Minimum | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Large claim threshold | $ 500 |
Earnings Per Common Share and_3
Earnings Per Common Share and Share Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Common Share And Share Awards [Line Items] | ||
Anti-dilutive shares excluded from computation of diluted earnings per share | 24 | 18 |
Number of stock options or SARs granted where exercise price was less than market price on date of grant | 0 | 0 |
Options and SARs vested | 8 | |
Fair value of options and SARs vested | $ 425 | |
Weighted-average fair values for SARs issued (dollars per share) | $ 55.52 | $ 62.60 |
Compensation expense relating to SARs or options vesting | $ 425 | $ 362 |
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans | $ 407 | |
Maximum | ||
Earnings Per Common Share And Share Awards [Line Items] | ||
Maximum shares of Company stock to be granted to key employees or directors | 250 | |
SARs | ||
Earnings Per Common Share And Share Awards [Line Items] | ||
Intrinsic values of options exercised | $ 156 | $ 496 |
SARs | Maximum | ||
Earnings Per Common Share And Share Awards [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Earnings Per Common Share and_4
Earnings Per Common Share and Share Awards Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 21,686 | $ 23,903 |
Weighted Average Shares Outstanding – Basic | 1,893 | 1,897 |
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) | 0 | 1 |
Weighted average common shares outstanding – Diluted | 1,893 | 1,898 |
Basic Earnings per Common Share | $ 11.45 | $ 12.60 |
Diluted Earnings per Common Share | $ 11.45 | $ 12.59 |
Earnings Per Common Share and_5
Earnings Per Common Share and Summary of Share-Based Award Transactions (Details) - SARs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, SARS, Outstanding [Roll Forward] | |||
Number Of Shares, Outstanding Beginning Balance | 39 | 35 | |
Number Of Shares, SARs granted | 5 | 10 | |
Number Of Shares, SARs exercised | (2) | (6) | |
Number Of Shares, Outstanding Ending Balance | 42 | 39 | 35 |
Number Of Shares, Exercisable as of December 31, 2023 | 34 | ||
Number Of Shares, Unvested as of December 31, 2023 | 8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, SARS, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 159.39 | $ 150.36 | |
Weighted Average Exercise Price, SARs granted | 142.88 | 155.16 | |
Weighted Average Exercise Price, SARs exercised | 93.87 | 94.44 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 160.83 | $ 159.39 | $ 150.36 |
Weighted Average Exercise Price, Exercisable as of December 31, 2023 | 165.33 | ||
Weighted Average Exercise Price, Unvested as of December 31, 2023 | $ 142.58 | ||
Average Remaining Contractual Term, Outstanding Beginning Balance | 3 years 8 months 8 days | 4 years 1 month 6 days | 3 years 11 months 15 days |
Average Remaining Contractual Term, Exercisable as of December 31, 2023 | 3 years 4 months 17 days | ||
Average Remaining Contractual Term, Unvested as of December 31, 2023 | 4 years 11 months 4 days | ||
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 243 | $ 1,643 | |
Aggregate Intrinsic Value, Outstanding Ending Balance | 428 | $ 243 | $ 1,643 |
Aggregate Intrinsic Value, Exercisable as of December 31, 2023 | 265 | ||
Aggregate Intrinsic Value, Unvested as of December 31, 2023 | $ 163 |
Earnings Per Common Share and_6
Earnings Per Common Share and Share Awards Summary of Share-based Award Transactions (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding - Number Outstanding | shares | 0 |
$60.00 - $99.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | $ 60 |
SARs exercise price, upper limit | $ 99.99 |
SARs Outstanding - As of December 31, 2023 | shares | 0 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 0 years |
SARs Outstanding - Weighted Average Exercise Price | $ 0 |
SARs Exercisable - Number Exercisable | shares | 0 |
SARs Exercisable - Weighted Average Exercise Price | $ 0 |
$100.00 - $149.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 100 |
SARs exercise price, upper limit | $ 149.99 |
SARs Outstanding - As of December 31, 2023 | shares | 18 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 4 years 9 months 14 days |
SARs Outstanding - Weighted Average Exercise Price | $ 139.11 |
SARs Exercisable - Number Exercisable | shares | 10 |
SARs Exercisable - Weighted Average Exercise Price | $ 136.27 |
$150.00 - $199.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 150 |
SARs exercise price, upper limit | $ 199.99 |
SARs Outstanding - As of December 31, 2023 | shares | 24 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 2 years 9 months 25 days |
SARs Outstanding - Weighted Average Exercise Price | $ 177.84 |
SARs Exercisable - Number Exercisable | shares | 24 |
SARs Exercisable - Weighted Average Exercise Price | $ 177.84 |
$60.00 - $199.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 60 |
SARs exercise price, upper limit | $ 199.99 |
SARs Outstanding - As of December 31, 2023 | shares | 42 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 3 years 8 months 8 days |
SARs Outstanding - Weighted Average Exercise Price | $ 160.83 |
SARs Exercisable - Number Exercisable | shares | 34 |
SARs Exercisable - Weighted Average Exercise Price | $ 165.33 |
Earnings Per Common Share and_7
Earnings Per Common Share and Share Awards Share-Based Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 36.60% | 35.60% |
Interest rate | 3.70% | 3.20% |
Yield rate | 1.20% | 0.60% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 6 years 2 months 12 days | 7 years |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 7 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, valuation allowance | $ 0 | $ 0 |
U.S. Federal statutory income tax rate | 21% | 21% |
Unrecognized Tax Benefits | $ 0 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ 8,389 | $ 10,685 |
State | 389 | 164 |
Total current | 8,778 | 10,849 |
Federal | (4,150) | (4,510) |
State | (84) | (134) |
Total deferred | (4,234) | (4,644) |
Provision for income taxes | $ 4,544 | $ 6,205 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Accrued benefits and retirement services | $ 3,990 | $ 3,860 |
Net operating loss carryforward | 246 | 202 |
Impairment of assets | 186 | 185 |
Reinsurance and commission payable | 62 | 28 |
Allowance for doubtful accounts | 29 | 59 |
Leased assets | 1,354 | 1,280 |
Other | 563 | 519 |
Total deferred income tax assets | 6,430 | 6,133 |
Deferred income tax liabilities: | ||
Net unrealized gain on investments | 3,157 | 5,615 |
Recorded statutory premium reserve, net of reserves for claims | 2,223 | 2,497 |
Intangible assets | 797 | 885 |
Excess of tax over book depreciation | 657 | 1,551 |
Leased liabilities | 1,324 | 1,252 |
1031 gain | 935 | 912 |
Other | 883 | 1,086 |
Total deferred income tax liabilities | 9,976 | 13,798 |
Net deferred income tax liabilities | $ (3,546) | $ (7,665) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Anticipated income tax expense | $ 5,508 | $ 6,323 |
State income taxes, net of federal income tax benefit | 307 | 130 |
Tax-exempt interest income, net of amortization | (525) | (577) |
Other, net | (746) | 329 |
Provision for income taxes | $ 4,544 | $ 6,205 |
U.S. Federal statutory income tax rate | 21% | 21% |
Leases Operating Lease Cost (De
Leases Operating Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Lease expense | $ 2,591 | $ 2,518 |
Finance Lease, Right-of-Use Asset, Amortization | 237 | 168 |
Finance Lease, Interest Expense | 22 | 24 |
Short-term leases | 141 | 214 |
Lease expense before sub-lease income | 2,991 | 2,924 |
Sub-lease income | (14) | 0 |
Lease cost | $ 2,977 | $ 2,924 |
Leases Current and Noncurrent L
Leases Current and Noncurrent Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease Liability | Lease Liability |
Operating lease, liability, current | $ 2,201 | $ 1,693 |
Finance Lease, Liability, Current | $ 170 | $ 218 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease Liability | Lease Liability |
Operating lease, liability, noncurrent | $ 3,792 | $ 4,401 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease Liability | Lease Liability |
Finance Lease, Liability, Noncurrent | $ 286 | $ 527 |
Lease Liability | $ 6,449 | $ 6,839 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease Liability | Lease Liability |
Leases Schedule of Lease Paymen
Leases Schedule of Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 2,385 | |
2025 | 2,045 | |
2026 | 1,265 | |
2027 | 366 | |
2028 | 135 | |
Thereafter | 151 | |
Total undiscounted payments | 6,347 | |
Less: present value adjustment | (354) | |
Operating lease, liabilities | 5,993 | |
Finance Lease, Liability, to be Paid, Year One | 183 | |
Finance Lease, Liability, to be Paid, Year Two | 147 | |
Finance Lease, Liability, to be Paid, Year Three | 109 | |
Finance Lease, Liability, to be Paid, Year Four | 41 | |
Finance Lease, Liability, to be Paid, Year Five | 0 | |
Finance Lease, Liability, to be Paid, after Year Five | 0 | |
Finance Lease, Liability, Payment, Due, Total | 480 | |
Less: present value adjustment | (24) | |
Finance Lease, Liability | 456 | |
Lessee Operating Lease Liability Payments Due Next Twelve Months | 2,568 | |
Lessee Operating Lease Liability Payments Due Year Two | 2,192 | |
Lessee Operating Lease Liability Payments Due Year Three | 1,374 | |
Lessee Lease Liability Payments Due Year Four | 407 | |
Lessee Lease Liability Payments Due Year Five | 135 | |
Lessee Lease Liability Payments Due After Year Five | 151 | |
Total undiscounted payments | 6,827 | |
Less: present value adjustment | $ (378) | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities | Lease liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities | Lease liabilities |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities | Lease liabilities |
Lease liabilities | $ 6,449 | $ 6,839 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities | Lease liabilities |
Leases Other (Details)
Leases Other (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 3 years 25 days | 3 years 5 months 4 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 11 months 4 days | 3 years 9 months 18 days |
Weighted average discount rate | 3.80% | 3.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.70% | 3.70% |
Retirement Agreements and Oth_3
Retirement Agreements and Other Postretirement Benefit Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) h | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan minimum age eligibility | 21 years | ||
Minimum number of years employed in order to participate in the 401(k) plan | 1 year | ||
Minimum number of hours worked annually in order to participate in the 401(k) plan | h | 1,000 | ||
Defined contribution plan contribution percent | 3% | ||
Expenses related to the 401(k) plan | $ 1,600 | $ 1,700 | |
Amount accrued for all deferred compensation plan agreements | 15,200 | 15,000 | |
Amount recognized in accumulated other comprehensive income, before tax | 68 | 44 | $ (184) |
Amount recognized in accumulated other comprehensive income, net of tax | 55 | $ 36 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2024 | 24 | ||
2025 | 36 | ||
2026 | 44 | ||
2027 | 58 | ||
2028 | 83 | ||
Next 5 years thereafter | $ 297 | ||
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Noncompete period following employment | 2 years |
Retirement Agreements and Oth_4
Retirement Agreements and Other Postretirement Benefit Plan Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Personnel expenses | Personnel expenses |
Service cost – benefits earned during the year | $ 0 | $ 0 |
Interest cost on the projected benefit obligation | 65 | 26 |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized (gain) loss | (37) | 12 |
Net periodic benefits cost at end of year | $ 28 | $ 38 |
Retirement Agreements and Oth_5
Retirement Agreements and Other Postretirement Benefit Plan Effected of the Funded Status on the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Fully eligible active employees | $ (906) | $ (928) |
Non-eligible active employees | 0 | 0 |
Plan assets | 0 | 0 |
Funded status of accumulated postretirement benefit obligation, recognized in accounts payable and accrued liabilities | $ (906) | $ (928) |
Retirement Agreements and Oth_6
Retirement Agreements and Other Postretirement Benefit Plan Development of the Accumulated Postretirement Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Accrued postretirement benefit obligation at beginning of year | $ (928) | $ (1,118) |
Service cost – benefits earned during the year | 0 | 0 |
Interest cost on projected benefit obligation | (65) | (26) |
Actuarial gain | 87 | 216 |
Accrued postretirement benefit obligation at end of year | $ (906) | $ (928) |
Retirement Agreements and Oth_7
Retirement Agreements and Other Postretirement Benefit Plan Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 44 | $ (184) |
Unrecognized prior service cost | 0 | 0 |
Amortization of gain (loss), net | (37) | 12 |
Actuarial loss (gain) | 61 | 216 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 68 | $ 44 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash held for escrow and trust deposits | $ 28.2 | $ 24.2 |
Like-kind exchange deposits and reverse exchange property | $ 263.7 | $ 432 |
Segment Information Selected Fi
Segment Information Selected Financial Information By Segment (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Insurance and other services revenues | $ 208,495 | $ 286,018 |
Investment Income | 16,255 | (2,626) |
Total Revenues | 224,750 | 283,392 |
Operating Expenses | 198,520 | 253,284 |
Income before income taxes | 26,230 | 30,108 |
Total assets | 330,559 | 339,757 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Insurance and other services revenues | (19,715) | (24,373) |
Investment Income | 0 | 0 |
Total Revenues | (19,715) | (24,373) |
Operating Expenses | (17,862) | (22,891) |
Income before income taxes | (1,853) | (1,482) |
Total assets | 0 | 0 |
Title Insurance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Insurance and other services revenues | 207,140 | 294,851 |
Investment Income | 12,303 | (2,678) |
Total Revenues | 219,443 | 292,173 |
Operating Expenses | 204,979 | 264,952 |
Income before income taxes | 14,464 | 27,221 |
Total assets | 216,622 | 244,399 |
Exchange services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Insurance and other services revenues | 13,270 | 8,038 |
Investment Income | 196 | 43 |
Total Revenues | 13,466 | 8,081 |
Operating Expenses | 2,518 | 2,666 |
Income before income taxes | 10,948 | 5,415 |
Total assets | 5,534 | 3,101 |
All Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Insurance and other services revenues | 7,800 | 7,502 |
Investment Income | 3,756 | 9 |
Total Revenues | 11,556 | 7,511 |
Operating Expenses | 8,885 | 8,557 |
Income before income taxes | 2,671 | (1,046) |
Total assets | $ 108,403 | $ 92,257 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | ||
Dec. 31, 2023 Vote $ / shares $ / Right shares | Dec. 31, 2022 shares | Sep. 30, 2022 shares | |
Class of Stock [Line Items] | |||
Number of votes | Vote | 100 | ||
Shares of Class A Preferred Stock Available Per Right | 0.01 | ||
Threshold of days following requirements for exercise rights | 10 days | ||
Redemption price per right | $ / Right | 0.01 | ||
Purchase price of preferred stock per Unit | $ / shares | $ 525 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 |
Minimum | |||
Class of Stock [Line Items] | |||
Threshold of common stock percentage for common stock diluted | 15% | ||
Threshold of beneficial ownership of outstanding common stock for the Rights exchanging | 15% | ||
Threshold of percentage of assets or earning power sold or transferred for merger | 50% | ||
Threshold of prior acquisition common stock percentage for the Right exchanging | 50% | ||
Minimum | Person or Group of Affiliated or Associated Persons | |||
Class of Stock [Line Items] | |||
Ownership percentage of common stock | 15% | ||
Plan Amendment [Member] | Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 200,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Risks and Uncertainties [Abstract] | ||
Threshold of not insured deposits by FDIC | $ 250 | |
Cash and cash equivalents | 24,031 | $ 35,311 |
Cash and cash equivalents uninsured amount | $ 22,300 | $ 33,800 |
Business Concentration (Details
Business Concentration (Details) - Geographic Concentration Risk - Revenue Benchmark | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
North Carolina | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 37.40% | 35.60% |
Texas | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 27% | 29% |
South Carolina | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 9.30% | 9.40% |
Georgia | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 6.80% | 9.20% |
Related Party Transactions Summ
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Other investments | $ 17,385 | $ 18,368 |
Premium and fees receivable | 13,338 | 19,047 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Other investments | 5,561 | 4,420 |
Premium and fees receivable | $ 627 | $ 735 |
Related Party Transactions Su_2
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Net premiums written | $ 171,158 | $ 248,632 |
Commissions to agents | 83,374 | 121,566 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Net premiums written | 22,131 | 26,666 |
Non-title services and other investment income | 4,062 | 2,935 |
Commissions to agents | $ 15,115 | $ 18,798 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Business Combinations [Abstract] | |
Goodwill | $ 9,600 |
Title Plants | $ 1,500 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Referral relationships | $ 8,898 | $ 8,898 |
Non-compete agreements | 3,155 | 3,155 |
Tradename | 747 | 747 |
Identifiable intangible assets, gross | 12,800 | 12,800 |
Accumulated amortization | (6,176) | (4,814) |
Identifiable intangible assets, net | $ 6,624 | $ 7,986 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill Schedule of Aggregate Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Business Combinations [Abstract] | |
2024 | $ 1,178 |
2025 | 1,095 |
2026 | 1,095 |
2027 | 679 |
2028 | 650 |
Thereafter | 1,740 |
Identifiable intangible assets, net | $ 6,437 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance at January 1 | $ 200 | $ 3,226 |
Other comprehensive income before calculations | 278 | (3,241) |
Amounts reclassified from accumulated other comprehensive income | 160 | 215 |
Net current-period other comprehensive income | 438 | (3,026) |
Ending balance | 638 | 200 |
Unrealized Gains and Losses On Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance at January 1 | 164 | 3,370 |
Other comprehensive income before calculations | 259 | (3,421) |
Amounts reclassified from accumulated other comprehensive income | 160 | 215 |
Net current-period other comprehensive income | 419 | (3,206) |
Ending balance | 583 | 164 |
Postretirement Benefits Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance at January 1 | 36 | (144) |
Other comprehensive income before calculations | 19 | 180 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income | 19 | 180 |
Ending balance | $ 55 | $ 36 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gain (loss) on investment | $ 3,448 | $ (11,226) |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings | (201) | (172) |
Income before Income Taxes | 26,230 | 30,108 |
Tax | (4,544) | (6,205) |
Net Income (Loss) | 21,686 | 23,903 |
Reclassification Out Of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income (Loss) | (160) | (215) |
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 investment | 0 | (104) |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings | (208) | (172) |
Income before Income Taxes | (208) | (276) |
Tax | 48 | 61 |
Net Income (Loss) | $ (160) | $ (215) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 36,346 | $ 36,245 |
Total revenues | 224,750 | 283,392 |
Escrow and other title-related fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 17,109 | 22,314 |
Non-title services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 19,237 | 13,931 |
Net premiums written | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | 171,158 | 248,632 |
Investment-related revenue (loss) | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | 16,255 | (2,626) |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Other sources of revenue | $ 991 | $ 1,141 |
Schedule I (Details)
Schedule I (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | $ 210,481 | [1],[2] |
Market Value | 225,453 | [2] |
Amount at which shown in the Balance Sheet | 225,453 | [2],[3] |
Fixed maturity securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 63,106 | [1] |
Market Value | 63,847 | |
Amount at which shown in the Balance Sheet | 63,847 | [3] |
Government obligations | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 2,220 | [1] |
Market Value | 2,220 | |
Amount at which shown in the Balance Sheet | 2,220 | [3] |
General obligations of U.S. states, territories and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 9,419 | [1] |
Market Value | 9,459 | |
Amount at which shown in the Balance Sheet | 9,459 | [3] |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 18,514 | [1] |
Market Value | 18,525 | |
Amount at which shown in the Balance Sheet | 18,525 | [3] |
Public utilities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 6,394 | [1] |
Market Value | 6,462 | |
Amount at which shown in the Balance Sheet | 6,462 | [3] |
Corporate debt securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 26,559 | [1] |
Market Value | 27,181 | |
Amount at which shown in the Balance Sheet | 27,181 | [3] |
Equity securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 22,981 | [1] |
Market Value | 37,212 | |
Amount at which shown in the Balance Sheet | 37,212 | [3] |
Public utilities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 176 | [1] |
Market Value | 301 | |
Amount at which shown in the Balance Sheet | 301 | [3] |
Banks, trusts and insurance companies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 1,441 | [1] |
Market Value | 2,385 | |
Amount at which shown in the Balance Sheet | 2,385 | [3] |
Industrial, miscellaneous and all other | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 19,738 | [1] |
Market Value | 29,539 | |
Amount at which shown in the Balance Sheet | 29,539 | [3] |
Technology | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 1,626 | [1] |
Market Value | 4,987 | |
Amount at which shown in the Balance Sheet | 4,987 | [3] |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 110,224 | [1] |
Market Value | 110,224 | |
Amount at which shown in the Balance Sheet | 110,224 | [3] |
Other investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 14,170 | [2] |
Market Value | 14,170 | [2] |
Amount at which shown in the Balance Sheet | 14,170 | [2],[3] |
Total other investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 124,394 | [1] |
Market Value | 124,394 | |
Amount at which shown in the Balance Sheet | 124,394 | [3] |
Other Affiliates | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amount at which shown in the Balance Sheet | $ 3,215 | |
[1] Fixed maturity securities are shown at amortized cost and equity securities are shown at original cost. The above summary of investments does not include investments in related parties accounted for under the equity method or the measurement alternative methods of accounting in the amount of $3,215. All fixed maturity securities presented are classified as available-for-sale and shown at estimated fair value. Equity securities are shown at fair value. |
Schedule II - Condensed Balance
Schedule II - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $ 24,031 | $ 35,311 | |
Fixed maturity securities, available-for-sale, at fair value | 63,847 | 53,989 | |
Common stocks | 37,212 | 51,691 | |
Short-term investments | 110,224 | 103,649 | |
Other investments | 17,385 | 18,368 | |
Prepaid expenses and other receivables | 13,525 | 11,095 | |
Current income taxes receivable | 1,081 | 1,174 | |
Accrued interest and dividends | 978 | 872 | |
Property, net | 23,886 | 17,785 | |
Total Assets | 330,559 | 339,757 | |
Accounts payable and accrued liabilities | 31,864 | 47,050 | |
Deferred income taxes, net | 3,546 | 7,665 | |
Total liabilities | 79,006 | 98,746 | |
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 | |
Common stock – no par value (10,000 authorized shares; 1,891 and 1,897 shares issued and outstanding as of December 31, 2023 and 2022, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 | |
Retained earnings | 250,915 | 240,811 | |
Accumulated other comprehensive income | 638 | 200 | $ 3,226 |
Total shareholders’ equity | 251,553 | 241,011 | 229,087 |
Total Liabilities and Shareholders’ Equity | $ 330,559 | $ 339,757 | |
Preferred stock, shares authorized | 1,000 | 1,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, no par value | $ 0 | $ 0 | |
Common stock, shares authorized | 10,000 | 10,000 | |
Common stock, shares issued | 1,891 | 1,897 | |
Common stock, shares outstanding | 1,891 | 1,897 | |
Common stock, held by Company's subsidiary | 292 | 292 | |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $ 4,409 | $ 3,450 | $ 584 |
Fixed maturity securities, available-for-sale, at fair value | 4,287 | 5,900 | |
Common stocks | 188 | 325 | |
Short-term investments | 83,095 | 64,832 | |
Investments in affiliated companies | 148,934 | 159,700 | |
Other investments | 4,172 | 6,703 | |
Prepaid expenses and other receivables | 5,516 | 3,864 | |
Current income taxes receivable | 1,293 | 2,799 | |
Accrued interest and dividends | 192 | 185 | |
Property, net | 1,562 | 1,691 | |
Total Assets | 253,648 | 249,449 | |
Accounts payable and accrued liabilities | 1,842 | 7,726 | |
Deferred income taxes, net | 253 | 712 | |
Total liabilities | 2,095 | 8,438 | |
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 | |
Common stock – no par value (10,000 authorized shares; 1,891 and 1,897 shares issued and outstanding as of December 31, 2023 and 2022, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 | |
Retained earnings | 250,915 | 240,811 | |
Accumulated other comprehensive income | 638 | 200 | |
Total shareholders’ equity | 251,553 | 241,011 | |
Total Liabilities and Shareholders’ Equity | $ 253,648 | $ 249,449 | |
Preferred stock, shares authorized | 1,000 | 1,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, no par value | $ 0 | $ 0 | |
Common stock, shares authorized | 10,000 | 10,000 | |
Common stock, shares issued | 1,891 | 1,897 | |
Common stock, shares outstanding | 1,891 | 1,897 | |
Common stock, held by Company's subsidiary | 292 | 292 |
Schedule II - Condensed Stateme
Schedule II - Condensed Statement of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest and dividends | $ 9,055 | $ 4,704 |
Unrealized Gain (Loss) on Investments | (12,183) | (20,961) |
Gain on disposals of property | 204 | 58 |
Other | 991 | 1,141 |
Total Revenues | 224,750 | 283,392 |
Personnel expenses | 76,706 | 85,331 |
Office and technology expenses | 17,359 | 17,323 |
Other expenses | 16,319 | 24,809 |
Operating Expenses | 198,520 | 253,284 |
Income before Income Taxes | 26,230 | 30,108 |
Provision (Benefit) for Income Taxes | 4,544 | 6,205 |
Net Income | $ 21,686 | $ 23,903 |
Basic Earnings per Common Share | $ 11.45 | $ 12.60 |
Weighted Average Shares Outstanding – Basic | 1,893 | 1,897 |
Diluted Earnings per Common Share | $ 11.45 | $ 12.59 |
Weighted Average Shares Outstanding – Diluted | 1,893 | 1,898 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest and dividends | $ 3,671 | $ 990 |
Net realized investment gains (losses) | (142) | (739) |
Rental income | 922 | 869 |
Gain on disposals of property | 194 | 0 |
Other | (36) | 305 |
Total Revenues | 4,609 | 1,425 |
Personnel expenses | 874 | 947 |
Office and technology expenses | 628 | 447 |
Other expenses | 979 | 936 |
Operating Expenses | 2,481 | 2,330 |
Equity in Net Income of Affiliated Companies | 19,670 | 24,584 |
Income before Income Taxes | 21,798 | 23,679 |
Provision (Benefit) for Income Taxes | 112 | (224) |
Net Income | $ 21,686 | $ 23,903 |
Basic Earnings per Common Share | $ 11.45 | $ 12.60 |
Weighted Average Shares Outstanding – Basic | 1,893 | 1,897 |
Diluted Earnings per Common Share | $ 11.45 | $ 12.59 |
Weighted Average Shares Outstanding – Diluted | 1,893 | 1,898 |
Schedule II - Condensed State_2
Schedule II - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities | ||
Net Income (Loss) | $ 21,686 | $ 23,903 |
Depreciation | 2,760 | 2,298 |
Share-based compensation expense related to stock appreciation rights | 425 | 362 |
Net gains on disposal of property | (204) | (58) |
Net investment (gains) losses on securities | (3,448) | 11,226 |
Net realized losses on other investments | 118 | 366 |
Net losses from other investments | (3,206) | (2,224) |
Benefit for deferred income taxes | (4,234) | (4,644) |
Decrease (increase) in current income taxes receivable | 93 | (1,174) |
Decrease (increase) in other assets | 621 | 532 |
Decrease in current income taxes payable | 0 | (3,329) |
(Decrease) increase in accounts payable and accrued liabilities | (10,408) | 3,410 |
Net cash provided by (used in) operating activities | 7,426 | 36,204 |
Investing Activities | ||
Purchases of short-term securities | (174,742) | (101,718) |
Purchases of and net earnings from other investments | (3,006) | (1,574) |
Proceeds from sales and maturities of short-term investments | 166,362 | 44,236 |
Proceeds from sales and distributions of other investments | 4,499 | 5,332 |
Proceeds from sales of other assets | 0 | 29 |
Purchases of property | (9,186) | (5,681) |
Proceeds from disposals of property | 529 | 26 |
Net cash provided by (used in) investing activities | (6,699) | (28,746) |
Financing Activities | ||
Repurchases of common stock | (959) | (133) |
Exercise of stock appreciation rights | 0 | (1) |
Dividends paid | (11,048) | (9,181) |
Net cash provided by (used in) financing activities | (12,007) | (9,315) |
Net Increase (Decrease) in Cash and Cash Equivalents | (11,280) | (1,857) |
Cash and Cash Equivalents, Beginning of Period | 35,311 | |
Cash and Cash Equivalents, End of Period | 24,031 | 35,311 |
Supplemental Disclosures: | ||
Receivables From Delayed Tax Exempt Exchange | (2,589) | 0 |
Parent Company | ||
Operating Activities | ||
Net Income (Loss) | 21,686 | 23,903 |
Equity in net earnings of subsidiaries | (19,670) | (24,584) |
Depreciation | 126 | 115 |
(Accretion) amortization of investments, net | (2,924) | (272) |
Share-based compensation expense related to stock appreciation rights | 425 | 362 |
Net gains on disposal of property | (194) | 0 |
Net investment (gains) losses on securities | 142 | 343 |
Net realized losses on other investments | 0 | 396 |
Net losses from other investments | 21 | 11 |
Benefit for deferred income taxes | (433) | (927) |
(Increase) decrease in receivables | (1,652) | 1,249 |
Decrease (increase) in current income taxes receivable | 1,506 | (2,799) |
Decrease (increase) in other assets | 3,204 | (153) |
Decrease in current income taxes payable | 0 | (433) |
(Decrease) increase in accounts payable and accrued liabilities | (1,326) | 3,212 |
Net cash provided by (used in) operating activities | 911 | 423 |
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | 32,478 | 55,643 |
Investing Activities | ||
Purchases of fixed maturity and equity securities | (1,203) | (3,851) |
Purchases of short-term securities | (127,789) | (64,513) |
Purchases of and net earnings from other investments | (81) | (46) |
Proceeds from sales and maturities of fixed maturity and equity securities | 2,892 | 5,278 |
Proceeds from sales and maturities of short-term investments | 107,083 | 23,487 |
Proceeds from sales and distributions of other investments | 2 | 776 |
Proceeds from sales of other assets | 0 | 0 |
Purchases of property | (9) | (201) |
Proceeds from disposals of property | 206 | 60 |
Net cash provided by (used in) investing activities | 13,579 | 16,633 |
Financing Activities | ||
Repurchases of common stock | (959) | (133) |
Exercise of stock appreciation rights | 0 | (1) |
Capital contribution to subsidiaries | (1,524) | (4,875) |
Dividends paid | (11,048) | (9,181) |
Net cash provided by (used in) financing activities | (13,531) | (14,190) |
Net Increase (Decrease) in Cash and Cash Equivalents | 959 | 2,866 |
Cash and Cash Equivalents, Beginning of Period | 3,450 | 584 |
Cash and Cash Equivalents, End of Period | 4,409 | 3,450 |
Supplemental Disclosures: | ||
Income tax payments, net | 8,320 | 15,186 |
Receivables From Delayed Tax Exempt Exchange | $ (2,589) | $ 0 |
Schedule II - Notes to Condense
Schedule II - Notes to Condensed Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | $ 32,478 | $ 55,643 | |
Investors Title Insurance Company, net* | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to and received from parent company, net | 25,478 | [1] | 48,243 |
Cash dividends paid to parent by wholly owned subsidiaries | 27,181 | 49,655 | |
Dividend received from parent company | 1,703 | 1,412 | |
Investors Title Exchange Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | 5,800 | 4,300 | |
Investors Title Accommodation Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | 0 | 100 | |
Investors Trust Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | 500 | 400 | |
Investors Title Commercial Agency, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | 0 | 2,600 | |
National Investors Holdings, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends paid to parent by wholly owned subsidiaries | $ 700 | $ 0 | |
[1]Total dividends of $27,181 and $49,655 paid to the Parent Company in 2023 and 2022, respectively, netted with dividends of $1,703 and $1,412 received from the Parent Company in 2023 and 2022, respectively. |
Schedule III (Details)
Schedule III (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Deferred Policy Acquisition Cost | $ 0 | $ 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 37,147 | 37,192 |
Unearned Premiums | 0 | 0 |
Other Policy Claims and Benefits Payable | 804 | 1,491 |
Premium Revenue | 171,158 | 248,632 |
Net Investment Income | 624 | (12,361) |
Benefits, Claims, Losses and Settlement Expenses | 4,762 | 4,255 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 |
Other Operating Expenses | 193,758 | 249,029 |
Title Insurance | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Deferred Policy Acquisition Cost | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 37,147 | 37,192 |
Unearned Premiums | 0 | 0 |
Other Policy Claims and Benefits Payable | 804 | 1,491 |
Premium Revenue | 171,158 | 248,632 |
Net Investment Income | (2,926) | (9,333) |
Benefits, Claims, Losses and Settlement Expenses | 4,762 | 4,255 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 |
Other Operating Expenses | 182,571 | 238,025 |
All Other | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
Deferred Policy Acquisition Cost | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 0 | 0 |
Unearned Premiums | 0 | 0 |
Other Policy Claims and Benefits Payable | 0 | 0 |
Premium Revenue | 0 | 0 |
Net Investment Income | 3,550 | (3,028) |
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 |
Other Operating Expenses | $ 11,187 | $ 11,004 |
Schedule IV (Details)
Schedule IV (Details) - Title Insurance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Direct Premiums Earned | $ 171,512 | $ 249,450 |
Ceded Premiums Earned | 354 | 818 |
Assumed Premiums Earned | 0 | 0 |
Net Amount | $ 171,158 | $ 248,632 |
Percentages of Amount Assumed to Net | 0% | 0% |
Schedule V (Details)
Schedule V (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Valuation provision | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 159 | $ 190 | |
Additions Charged to Costs and Expenses | 773 | 508 | |
Additions Charged to Other Accounts – Describe | 0 | 0 | |
Deductions – Describe | [1] | (844) | (539) |
Balance at End of Period | 88 | 159 | |
Reserves for claims | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 37,192 | 36,754 | |
Additions Charged to Costs and Expenses | 4,762 | 4,255 | |
Additions Charged to Other Accounts – Describe | 0 | 0 | |
Deductions – Describe | [2] | (4,807) | (3,817) |
Balance at End of Period | $ 37,147 | $ 37,192 | |
[1] Canceled premiums Payments of claims, net of recoveries |