8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

May 9, 2005

Date of Report   (Date of earliest event reported)

INVESTORS TITLE COMPANY

(Exact name of Registrant as specified in its charter)

North Carolina	0-11774	56-1110199
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

121 North Columbia Street 
Chapel Hill, North Carolina 27514 

(Address of principal executive offices) 

(919) 968-2200

(Registrant’s telephone number, including area code)

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

        Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release of Investors Title Company, dated May 9, 2005, reporting Investors Title Company’s financial results for the fiscal quarter ended March 31, 2005.

        The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

    (c)        Exhibits. The following exhibit is furnished as part of this Report:

Exhibit 99.1 — Press Release of Investors Title Company dated May 9, 2005.

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

INVESTORS TITLE COMPANY

Date: May 9, 2005 By: /s/ James A. Fine, Jr.
    James A. Fine, Jr.
    President, Treasuer and Chief
    Officer

EXHIBIT INDEX

Exhibit No.         Description

99.1                     Press release issued by Investors Title Company on May 9, 2005.

EX-99.1

Exhibit 99.1

INVESTORS TITLE COMPANY ANNOUNCES FIRST QUARTER 2005 RESULTS

Contact: Elizabeth B. Lewter
May 9, 2005
Telephone: (919) 968-2200
NASDAQ Symbol: ITIC

FOR IMMEDIATE RELEASE:

        Chapel Hill, NC – J. Allen Fine, Chairman of Investors Title Company, announced that for the quarter ended March 31, 2005, the Company reported net income of $1,580,494, a decrease of 29% compared with $2,221,604 for the prior year period. Net income per diluted share equaled $.60 versus $.84 per diluted share in the same period last year. Net premiums written increased 1% to $17,083,119 and revenues increased 4% to $19,329,579 compared with the prior year period.

        Operating expenses increased from 82% to 88% of revenue from the prior year period, primarily as a result of an increase in compensation expense of approximately $600,000 related to the Company’s purchases of large blocks of shares acquired upon exercise of option agreements, increases in employee benefit expenses, and an increase in office occupancy and operations.

        Chairman Fine added, “Overall we are pleased with the first quarter results as premiums written remained strong in a seasonally slow period of the year and we had strong growth in revenue in our like-kind exchange subsidiary.”

        Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. Title insurance is typically sold when real estate is purchased and upon refinancing of loans secured by real estate. Policies are issued through 30 branch offices and a network of agents in 23 states and the District of Columbia. The Company also provides services in connection with tax-deferred exchanges of like-kind property as well as investment management services to individuals, trusts, foundations and businesses.

        Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. For more details on risk, uncertainties and other factors that could affect expectations, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, as filed with the Securities and Exchange Commission.

####

Investors Title Company and Subsidiaries
Consolidated Statements of Income
March 31, 2005 and 2004
(Unaudited)

	For The Three Months Ended March 31
	2005			2004
Revenues:
Underwriting income:
Premiums Written	$	17,222,198		$	17,051,282
Less-premiums for reinsurance ceded		139,079			69,526
Net premiums written		17,083,119			16,981,756
Investment income-interest and dividends		752,765			656,375
Net realized gain (loss) on sales of investments		(10,894	)		3,431
Exchange services revenue		809,639			479,894
Other		694,950			495,113
Total		19,329,579			18,616,569
Operating Expenses:
Commissions to agents		6,991,749			6,998,595
Provision for claims		1,899,005			1,844,379
Salaries, employee benefits and payroll taxes		5,367,312			3,847,905
Office occupancy and operations		1,512,090			1,203,798
Business development		427,473			353,414
Taxes, other than payroll and income		110,754			201,114
Premium and retaliatory taxes		399,545			333,004
Professional fees		275,046			410,675
Other		45,111			37,874
Total		17,028,085			15,230,758
Income Before Income Taxes		2,301,494			3,385,811
Provision For Income Taxes		721,000			1,164,207
Net Income	$	1,580,494		$	2,221,604
Basic Earnings Per Common Share	$	0.62		$	0.89
Weighted Average Shares Outstanding - Basic		2,564,490			2,505,368
Diluted Earnings Per Common Share	$	0.60		$	0.84
Weighted Average Shares Outstanding - Diluted		2,625,447			2,638,264

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2005 and December 31, 2004
(Unaudited)

	March 31, 2005		December 31, 2004
Assets
Cash and cash equivalents	$	4,838,159	$	4,726,443
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost		2,203,026		2,202,635
Available-for-sale, at fair value		72,253,978		72,471,766
Equity securities, available-for-sale at fair value		7,296,885		7,240,306
Short-term investments		8,833,528		10,134,321
Other investments		1,342,747		1,211,517
Total investments		91,930,164		93,260,545
Premiums receivable, net		6,473,197		6,679,994
Accrued interest and dividends		794,995		753,638
Prepaid expenses and other assets		1,674,056		1,410,584
Property acquired in settlement of claims		278,550		322,517
Property, net		4,514,530		4,592,784
Deferred income taxes, net		1,566,179		1,440,247
Total Assets	$	112,069,830	$	113,186,752
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	32,098,000	$	31,842,000
Accounts payable and accrued liabilities		5,369,145		7,919,651
Commissions and reinsurance payables		432,638		551,662
Current income taxes payable		556,807		366,168
Total liabilities		38,456,590		40,679,481
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,561,863 and 2,481,024 shares issued and outstanding 2005 and 2004,
respectively, excluding 293,881 and 374,720 shares 2005 and 2004,
respectively, of common stock held by the Company's subsidiary)		1		1
Retained earnings		70,890,920		69,272,092
Accumulated other comprehensive income (net unrealized gain on investments)		2,722,319		3,235,178
Total stockholders' equity		73,613,240		72,507,271
Total Liabilities and Stockholders' Equity	$	112,069,830	$	113,186,752

Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three Months Ended March 31, 2005 and 2004
(Unaudited)

	2005			2004
Alabama	$	350,730		$	328,316
Florida		309,609			355,604
Illinois		212,780			263,728
Kentucky		438,967			400,030
Maryland		372,646			334,860
Michigan		1,111,407			1,222,800
Minnesota		268,800			246,360
Mississippi		263,351			246,275
Nebraska		205,318			218,924
New York		586,005			816,340
North Carolina		7,734,940			7,588,636
Pennsylvania		378,825			574,826
South Carolina		2,047,893			1,773,897
Tennessee		567,848			710,915
Virginia		1,742,852			1,448,438
West Virginia		429,554			374,928
Other States		186,627			146,405
Direct Premiums		17,208,152			17,051,282
Reinsurance Assumed		14,046			--
Reinsurance Ceded		(139,079	)		(69,526	)
Net Premiums Written	$	17,083,119		$	16,981,756

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
March 31, 2005 and 2004
(Unaudited)

	For The Three Months Ended March 31
	2005		%		2004		%
Branch	$	7,225,990		42	$	7,459,411		44
Agency		9,857,129		58		9,522,345		56
Total	$	17,083,119		100	$	16,981,756		100