8-K

INVESTORS TITLE COMPANY

COVER LETTER

VIA EDGAR

Securities and Exchange Commission

450 Fifth Street, N.W.

Washington, DC 20549

Re: Investors Title CompanyForm 8-K File No. 0-11774

To Whom It May Concern:

Pursuant to applicable Securities and Exchange Commission rules and regulations, Investors Title Company furnishes herewith via EDGAR a Current Report on Form 8-K.

INVESTORS TITLE COMPANY
Sincerely,
By:	/s/ James A. Fine, Jr.
	James A. Fine, Jr.
	President, Treasurer and Chief Financial Officer

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

Date of Report (Date of earliest event reported): February 15, 2007

INVESTORS TITLE COMPANY 

(Exact name of registrant as specified in its charter)

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

121 North Columbia Street Chapel Hill, North Carolina	27514
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (919) 968-2200

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 February 15, 2007, reporting Investors Title Company's financial results for the fiscal quarter and the fiscal year ended December 31, 2006.

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 accompanies this Report:

Exhibit 99.1 - Press Release of Investors Title Company dated February 15, 2007.

SIGNATURE

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: February 15, 2007	By: /s/ James A. Fine, Jr.
	James A. Fine, Jr.
	President, Treasurer and
	Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release issued by Investors Title Company on February 15, 2007

EX-99.1

INVESTORS TITLE COMPANY ANNOUNCES FOURTH QUARTER 2006 RESULTS

Contact: Elizabeth B. Lewter

February 15, 2007

Telephone: (919) 968-2200

NASDAQ Symbol: ITIC

: ITIC

FOR IMMEDIATE RELEASE:

Chapel Hill, NC - J. Allen Fine, Chairman of Investors Title Company, announced that for the fourth quarter ended December 31 2006, the Company reported net income of $2,322,887, a decrease of 34.0% compared with $3,520,902 for the prior year period. Net income per diluted share equaled $0.91, a decrease of 33.1% compared with $1.36 per diluted share in the same period last year. Net premiums written decreased 12.1% to $16,198,574 and revenues decreased 9.3% to $19,633,913 compared with the prior year period.

For the year ended December 31, 2006, the Company reported net income of $13,185,434, a decrease of 0.8%, compared with $13,292,923 for the same period in 2005. Diluted earnings per share were $5.14, an increase of 0.8% compared with $5.10 for the same period in 2005. Net premiums written decreased 8.3% to $70,196,467 and revenues decreased 3.6% to $84,661,716 compared with the prior year.

Operating results in the fourth quarter are primarily a reflection of downward trends in home sales and mortgage lending. The decline in premiums written was partly offset by increases in investment income and revenue in the 1031 exchange services segment. Operating expenses decreased 1.8% to $16,688,026 for the quarter compared with the prior year period primarily due to a decline in commissions paid to agents and a lower claims provision amount. Partially offsetting these decreases were higher compensation expenses and increases in office occupancy and operations expenses and professional and contract labor fees.

Chairman Fine added,“Overall we are pleased with our financial results for the final quarter and for the year as a whole. Revenues in our primary business are sensitive to the level of home sales and mortgage lending, which are highly cyclical businesses. After a five-year housing boom, the market was widely expected to slow during 2006. Although the market was down in most areas, our premium volume held up sufficiently during the year to allow us to continue to make investments in staff, infrastructure and technology in order to better position ourselves for growth over the market cycles of our industry.”

Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property as well as investment management services to individuals, companies, banks and trusts.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include any predictions regarding activity in the U.S. real estate market. 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 risks, 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, 2005, as filed with the Securities and Exchange Commission.

# # # #

Investors Title Company and Subsidiaries

Consolidated Statements of Income

December 31, 2006 and 2005

(Unaudited)

	For The Three Months Ended December 31				For The Twelve Months Ended December 31
	2006		2005		2006		2005
Revenues:
Underwriting income:
Premiums written		16,322,263		18,504,712		70,638,049		76,838,399
Less-premiums for reinsurance ceded		123,689		81,899		441,582		316,133
Net premiums written		16,198,574		18,422,813		70,196,467		76,522,266
Investment income-interest and dividends		1,261,430		961,784		4,326,335		3,335,767
Net realized gain on sales of investments		62,531		29,511		551,058		119,015
Exchange services revenue		1,438,946		1,271,015		5,980,027		4,543,049
Other		672,432		961,791		3,607,829		3,343,781
Total		19,633,913		21,646,914		84,661,716		87,863,878
Operating Expenses:
Commissions to agents		6,345,920		7,259,076		26,714,784		30,309,405
Provision for claims		1,526,619		1,810,298		7,405,211		8,164,783
Salaries, employee benefits and payroll taxes		5,156,870		4,815,158		19,981,166		19,136,098
Office occupancy and operations		1,693,621		1,358,190		5,672,275		5,080,829
Business development		680,594		590,151		2,302,739		2,073,518
Filing fees and taxes, other than payroll and income		83,134		136,246		576,733		523,464
Premium and retaliatory taxes		281,389		352,130		1,348,850		1,556,529
Professional and contract labor fees		754,305		475,755		2,633,948		1,937,233
Other		165,574		201,008		696,576		499,096
Total		16,688,026		16,998,012		67,332,282		69,280,955
Income Before Income Taxes		2,945,887		4,648,902		17,329,434		18,582,923
Provision For Income Taxes		623,000		1,128,000		4,144,000		5,290,000
Net Income		2,322,887		3,520,902		13,185,434		13,292,923
Basic Earnings Per Common Share		0.93		1.38		5.22		5.19
Weighted Average Shares Outstanding - Basic		2,507,062		2,554,935		2,527,927		2,560,418
Diluted Earnings Per Common Share		0.91		1.36		5.14		5.10
Weighted Average Shares Outstanding - Diluted		2,546,638		2,596,541		2,564,216		2,607,633

Investors Title Company and Subsidiaries

Consolidated Balance Sheets

As of December 31, 2006 and 2005

(Unaudited)

	December 31, 2006		December 31, 2005
Assets
Cash and cash equivalents	$	3,458,432	$	14,608,481
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost		1,195,617		1,648,708
Available-for-sale, at fair value		101,954,292		75,472,342
Equity securities, available-for-sale at fair value		12,495,923		9,437,678
Short term investments		4,460,911		7,257,734
Other investments		1,473,303		1,336,111
Total investments		121,580,046		95,152,573
Premiums and fees receivable, net		6,582,237		7,818,558
Accrued interest and dividends		1,336,790		1,010,198
Prepaid expenses and other assets		1,590,835		1,592,326
Property acquired in settlement of claims		303,538		359,980
Property, net		6,134,304		5,466,765
Deferred income taxes, net		2,530,196		2,462,647
Total Assets	$	143,516,378	$	128,471,528
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	36,906,000	$	34,857,000
Accounts payable and accrued liabilities		10,537,992		7,928,384
Commissions and reinsurance payables		470,468		442,098
Current income taxes payable		326,255		946,790
Total liabilities		48,240,715		44,174,272
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,507,325 and 2,549,434 shares issued and outstanding 2006 and 2005,
respectively, excluding 291,676 and 297,783 shares 2006 and 2005,
respectively, of common stock held by the Company's subsidiary)		1		1
Retained earnings		92,134,608		81,477,022
Accumulated other comprehensive income		3,141,054		2,820,233
Total stockholders' equity		95,275,663		84,297,256
Total Liabilities and Stockholders' Equity	$	143,516,378	$	128,471,528

Investors Title Company and Subsidiaries

Net Premiums Written By State

December 31, 2006 and 2005

(Unaudited)

	For the Three Months Ended						For the Twelve Months Ended
	December 31						December 31
State	2006			2005			2006			2005
Illinois		296,172			264,832			1,115,890			1,000,273
Kentucky		516,328			513,753			2,292,194			2,115,579
Maryland		406,643			422,875			1,532,915			1,754,867
Michigan		904,443			976,655			3,488,984			4,591,639
Minnesota		212,676			319,513			1,055,214			1,076,155
New York		621,105			889,671			2,436,563			3,248,635
North Carolina		7,800,561			8,792,267			35,200,769			36,269,649
Pennsylvania		372,610			399,762			1,472,615			1,687,410
South Carolina		2,193,201			1,874,160			7,177,871			7,011,099
Tennessee		499,367			701,180			2,466,956			2,767,576
Virginia		1,647,374			1,708,028			6,734,698			7,740,671
West Virginia		458,605			505,804			2,132,330			2,246,142
Other States		379,179			1,129,282			3,508,892			5,307,728
Direct Premiums		16,308,264			18,497,782			70,615,891			76,817,423
Reinsurance Assumed		13,999			6,930			22,158			20,976
Reinsurance Ceded		(123,689	)		(81,899	)		(441,582	)		(316,133	)
Net Premiums Written	$	16,198,574		$	18,422,813		$	70,196,467		$	76,522,266

Investors Title Company and Subsidiaries

Net Premiums Written By Branch and Agency

December 31, 2006 and 2005

(Unaudited)

	For The Three Months Ended				For The Twelve Months Ended
	December 31				December 31
	2006	%	2005	%	2006	%	2005	%
Branch	$ 7,033,319	43	$ 8,090,934	44	$ 32,366,365	46	$ 34,108,923	45
Agency	$ 9,165,255	57	10,331,879	56	37,830,102	54	42,413,343	55
Total	$ 16,198,574	100	$ 18,422,813	100	$ 70,196,467	100	$ 76,522,266	100