10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________  to ___________________

Commission File Number:  0-11774

INVESTORS TITLE COMPANY

(Exact name of registrant as specified in its charter)

North Carolina	56-1110199
(State of incorporation)	(I.R.S. Employer Identification No.)

121 North Columbia Street, Chapel Hill, North Carolina 27514

(Address of principal executive offices)  (Zip Code)

(919) 968-2200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, no par value	ITIC	The Nasdaq Stock Market LLC
Rights to Purchase Series A Junior Participating Preferred Stock		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 20, 2020, there were 1,892,411 common shares of the registrant outstanding.

INVESTORS TITLE COMPANY

AND SUBSIDIARIES

INDEX

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019	1
	Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2020 and 2019	2
	Consolidated Statements of Comprehensive Income For the Three and Nine Months Ended September 30, 2020 and 2019	3
	Consolidated Statements of Stockholders’ Equity For the Three and Nine Months Ended September 30, 2020 and 2019	4
	Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2020 and 2019	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
SIGNATURE		42

PART I.   FINANCIAL INFORMATION

Item 1.  Financial Statements

Investors Title Company and Subsidiaries

Consolidated Balance Sheets

As of September 30, 2020 and December 31, 2019

(in thousands)

(unaudited)

	September 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	41,534	$	25,949
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost: September 30, 2020: $92,912; December 31, 2019: $100,667)	98,428		104,638
Equity securities, at fair value (cost: September 30, 2020: $34,180; December 31, 2019: $33,570)	58,851		61,108
Short-term investments	22,516		13,134
Other investments	14,829		13,982
Total investments	194,624		192,862
Premium and fees receivable	17,291		12,523
Accrued interest and dividends	1,187		1,033
Prepaid expenses and other receivables	9,185		5,519
Property, net	10,669		9,776
Goodwill and other intangible assets, net	9,897		10,275
Operating lease right-of-use assets	3,798		4,469
Other assets	1,560		1,487
Total Assets	$	289,745	$	263,893
Liabilities and Stockholders’ Equity
Liabilities:
Reserve for claims	$	33,532	$	31,333
Accounts payable and accrued liabilities	31,565		28,318
Operating lease liabilities	3,937		4,502
Current income taxes payable	813		1,340
Deferred income taxes, net	6,971		7,038
Total liabilities	76,818		72,531
Commitments and Contingencies	—		—
Stockholders’ Equity:
Preferred stock (1,000 authorized shares; no shares issued)	—		—
Common stock – no par value (10,000 authorized shares; 1,892 and 1,889 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively, excluding in each period 292 shares of common stock held by the Company)	—		—
Retained earnings	208,647		188,262
Accumulated other comprehensive income	4,280		3,100
Total stockholders' equity	212,927		191,362
Total Liabilities and Stockholders’ Equity	$	289,745	$	263,893

Refer to notes to the Consolidated Financial Statements.

1

Investors Title Company and Subsidiaries

Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
Net premiums written	$	57,205	$	40,169	$	143,311	$	103,942
Escrow and other title-related fees	2,154		2,393		6,014		5,616
Non-title services	1,954		2,539		6,476		7,444
Interest and dividends	1,060		1,156		3,342		3,605
Other investment income	1,270		708		2,236		2,044
Net realized investment gains	186		423		327		1,199
Changes in the estimated fair value of equity security investments	3,619		406		(2,867)		6,218
Other	185		145		443		550
Total Revenues	67,633		47,939		159,282		130,618
Operating Expenses:
Commissions to agents	29,068		19,928		73,344		51,261
Provision for claims	1,552		987		4,452		3,610
Personnel expenses	12,575		11,576		36,632		34,871
Office and technology expenses	2,456		2,350		7,328		6,803
Other expenses	3,125		3,079		9,276		8,821
Total Operating Expenses	48,776		37,920		131,032		105,366
Income before Income Taxes	18,857		10,019		28,250		25,252
Provision for Income Taxes	3,556		2,067		5,465		5,174
Net Income	$	15,301	$	7,952	$	22,785	$	20,078
Basic Earnings per Common Share	$	8.09	$	4.21	$	12.04	$	10.63
Weighted Average Shares Outstanding – Basic	1,892		1,889		1,892		1,888
Diluted Earnings per Common Share	$	8.07	$	4.20	$	12.02	$	10.59
Weighted Average Shares Outstanding – Diluted	1,895		1,895		1,896		1,896

Refer to notes to the Consolidated Financial Statements.

2

Investors Title Company and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income	$	15,301	$	7,952	$	22,785	$	20,078
Other comprehensive income, before tax:
Accumulated postretirement benefit obligation adjustment	—		—		(41)		—
Net unrealized gain on investments arising during the period	61		431		1,093		2,847
Reclassification adjustment for sale of securities included in net income	—		—		(30)		—
Reclassification adjustment for write-down of securities included in net income	—		—		482		—
Other comprehensive income, before tax	61		431		1,504		2,847
Income tax benefit related to postretirement health benefits	—		—		(9)		—
Income tax expense related to net unrealized gain on investments arising during the period	11		90		229		601
Income tax benefit related to reclassification adjustment for sale of securities included in net income	—		—		(6)		—
Income tax expense related to reclassification adjustment for write-down of securities included in net income	—		—		110		—
Net income tax expense on other comprehensive income	11		90		324		601
Other comprehensive income	50		341		1,180		2,246
Comprehensive Income	$	15,351	$	8,293	$	23,965	$	22,324

Refer to notes to the Consolidated Financial Statements.

3

Investors Title Company and Subsidiaries

Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2020 and 2019

(in thousands, except per share amounts)

(unaudited)

	Common Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount
Balance, June 30, 2019	1,889	$	—	$	185,441	$	2,854	$	188,295
Net income				7,952				7,952
Dividends paid ($0.40 per share)				(755)				(755)
Exercise of stock appreciation rights	—			—				—
Share-based compensation expense related to stock appreciation rights				57				57
Net unrealized gain on investments						341		341
Balance, September 30, 2019	1,889	$	—	$	192,695	$	3,195	$	195,890
Balance, June 30, 2020	1,892	$	—	$	194,235	$	4,230	$	198,465
Net income				15,301				15,301
Dividends paid ($0.44 per share)				(833)				(833)
Exercise of stock appreciation rights	—			—				—
Share-based compensation expense related to stock appreciation rights				38				38
Net unrealized gain on investments						50		50
Other				(94)				(94)
Balance, September 30, 2020	1,892	$	—	$	208,647	$	4,280	$	212,927

4

	Common Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2018	1,887	$	—	$	174,690	$	949	$	175,639
Net income				20,078				20,078
Dividends paid ($1.20 per share)				(2,266)				(2,266)
Repurchases of common stock	—			(11)				(11)
Exercise of stock appreciation rights	2			—				—
Share-based compensation expense related to stock appreciation rights				204				204
Net unrealized gain on investments						2,246		2,246
Balance, September 30, 2019	1,889	$	—	$	192,695	$	3,195	$	195,890
Balance, December 31, 2019	1,889	$	—	$	188,262	$	3,100	$	191,362
Net income				22,785				22,785
Dividends paid ($1.32 per share)				(2,497)				(2,497)
Exercise of stock appreciation rights	3			(1)				(1)
Share-based compensation expense related to stock appreciation rights				192				192
Accumulated postretirement benefit obligation adjustment						(32)		(32)
Net unrealized gain on investments						1,212		1,212
Other				(94)				(94)
Balance, September 30, 2020	1,892	$	—	$	208,647	$	4,280	$	212,927

Refer to notes to the Consolidated Financial Statements.

5

Investors Title Company and Subsidiaries

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2020 and 2019

(in thousands)

(unaudited)

	Nine Months Ended September 30,
	2020		2019
Operating Activities
Net income	$	22,785	$	20,078
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,320		1,298
Amortization of investments, net	678		492
Amortization of other intangible assets, net	378		379
Share-based compensation expense related to stock appreciation rights	192		204
Net gain on disposals of property	(26)		(28)
Net realized investment gains	(327)		(1,199)
Net change in estimated fair value of equity security investments	2,867		(6,218)
Net earnings from other investments	(1,764)		(1,286)
Provision for claims	4,452		3,610
(Benefit) provision for deferred income taxes	(391)		1,340
Changes in assets and liabilities:
Increase in premium and fees receivables	(4,768)		(502)
(Increase) decrease in other assets	(3,893)		360
Decrease (increase) in operating lease right-of-use assets	577		(4,619)
Increase (decrease) in accounts payable and accrued liabilities	3,206		(205)
(Decrease) increase in operating lease liabilities	(565)		4,622
Decrease in current income taxes payable	(527)		(4,839)
Payments of claims, net of recoveries	(2,253)		(3,534)
Net cash provided by operating activities	21,941		9,953
Investing Activities
Purchases of fixed maturities	(517)		(1,235)
Purchases of equity securities	(9,270)		(3,921)
Purchases of short-term investments	(13,668)		(89,519)
Purchases of other investments	(1,090)		(1,456)
Proceeds from sales and maturities of fixed maturity securities	7,139		7,280
Proceeds from sales of equity securities	9,412		4,040
Proceeds from sales and maturities of short-term investments	4,291		100,821
Proceeds from sales and distributions of other investments	2,010		2,490
Proceeds from sales of other assets	22		2
Purchases of property	(2,245)		(1,020)
Proceeds from the sale of property	58		140
Net cash (used in) provided by investing activities	(3,858)		17,622
Financing Activities
Repurchases of common stock	—		(11)
Exercise of stock appreciation rights	(1)		—
Dividends paid	(2,497)		(2,266)
Net cash used in financing activities	(2,498)		(2,277)
Net Increase in Cash and Cash Equivalents	15,585		25,298
Cash and Cash Equivalents, Beginning of Period	25,949		18,694
Cash and Cash Equivalents, End of Period	$	41,534	$	43,992

6

Consolidated Statements of Cash Flows, continued
	Nine Months Ended September 30,
	2020		2019
Supplemental Disclosures:
Cash Paid During the Year for:
Income tax payments, net	$	6,889	$	9,150
Non-Cash Investing and Financing Activities:
Non-cash net unrealized gain on investments, net of deferred tax provision of $(333) and $(601) for September 30, 2020 and 2019, respectively	$	(1,212)	$	(2,246)
Adjustments to postretirement benefits obligation, net of deferred tax benefit of $9 and $0 for September 30, 2020 and 2019, respectively	$	32	$	—
Adjustments to operating lease right-of-use assets for September 30, 2020 and 2019, respectively	$	94	$	—

Refer to notes to the Consolidated Financial Statements.

7

INVESTORS TITLE COMPANY

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

September 30, 2020

(unaudited)

Note 1 – Basis of Presentation and Significant Accounting Policies

Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2019 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies.

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three- and nine-month periods ended September 30, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period.

Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used.

Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 updated guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadened the information that an entity must consider in developing its expected credit loss estimates, and was meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amended the accounting for credit losses on available-for-sale fixed maturity securities and purchased financial assets with credit deterioration. The update was effective for the Company for annual periods beginning after December 15, 2019, and interim periods within those fiscal years.  The Company adopted this update on January 1, 2020 with no material impact on the Company's financial position and results of operations. Refer to Note 6 for further information about the Company's investments.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removed the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity is required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and must recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized must not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarified that an entity is required to consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update was effective for the Company for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 with no impact on the Company's financial position and results of operations.

8

Recently Issued Accounting Standards

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to reduce the complexity in accounting for income taxes during interim and annual periods and is expected to provide clarity on income tax situations where a diversity in practice has developed. The update is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for interim or annual periods for which financial statements have not yet been issued. None of these amendments are expected to have a material impact on the Company's financial position or results of operations.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative immediately before applying or upon discontinuing the equity method. In addition, this update clarifies that, when determining the accounting for certain forward contracts and purchased options, a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The update is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.  Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and does not expect it to have a material impact.

Significant Accounting Policies – The Company has updated the following accounting policies due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

Allowance for Credit Losses – Available-for-Sale Securities

For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation.

In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable is excluded from the estimate of credit losses.

Note 2 – Reserve for Claims

Activity in the reserve for claims for the nine-month period ended September 30, 2020 and the year ended December 31, 2019 are summarized as follows:

(in thousands)	September 30, 2020		December 31, 2019
Balance, beginning of period	$	31,333	$	31,729
Provision charged to operations	4,452		3,532
Payments of claims, net of recoveries	(2,253)		(3,928)
Balance, end of period	$	33,532	$	31,333

9

The total reserve for all reported and unreported losses the Company incurred through September 30, 2020 is represented by the reserve for claims on the Consolidated Balance Sheets. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through September 30, 2020. Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant.

A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:

(in thousands, except percentages)	September 30, 2020		%	December 31, 2019		%
Known title claims	$	3,993	11.9	$	3,799	12.1
IBNR	29,539		88.1	27,534		87.9
Total reserve for claims	$	33,532	100.0	$	31,333	100.0

Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated fair value, net of any indebtedness on the property.

Note 3 – 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, as share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted earnings per share for the three- and nine-month periods ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	15,301	$	7,952	$	22,785	$	20,078
Weighted average common shares outstanding – Basic	1,892		1,889		1,892		1,888
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled)	3		6		4		8
Weighted average common shares outstanding – Diluted	1,895		1,895		1,896		1,896
Basic earnings per common share	$	8.09	$	4.21	$	12.04	$	10.63
Diluted earnings per common share	$	8.07	$	4.20	$	12.02	$	10.59

There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended September 30, 2020 and 2019, respectively, due to the out-of-the-money status of the related share-based awards. There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the nine-month periods ended September 30, 2020 and 2019, respectively.

The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company. There is currently one active plan from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares.

10

As of September 30, 2020, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. Most outstanding SARs vest and are exercisable within one year of the date of grant, with the exception of one grant where the SARs vest over five years. All SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.

There was approximately $192 thousand and $205 thousand of compensation expense relating to SARs vesting on or before September 30, 2020 and 2019, respectively, included in personnel expenses in the Consolidated Statements of Operations. As of September 30, 2020, there was $246 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

A summary of share-based award transactions for all share-based award plans follows:

(in thousands, except weighted average exercise price and average remaining contractual term)	Number Of Shares	Weighted Average Exercise Price		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2019	28	$	110.27	3.64	$	2,019
SARs granted	4	162.81
SARs exercised	(2)	50.50
Outstanding as of December 31, 2019	30	$	124.13	3.53	$	1,352
SARs granted	11	135.05
SARs exercised	(8)	75.75
Outstanding as of September 30, 2020	33	$	138.55	4.41	$	496
Exercisable as of September 30, 2020	26	$	140.02	3.83	$	480
Unvested as of September 30, 2020	7	$	133.21	6.52	$	16

During the second quarters of both 2020 and 2019, the Company issued 4 thousand share-settled SARs to directors of the Company. During the first quarter of 2020, the Company also issued 7 thousand share-settled SARs to directors and employees of the Company. There were no such first quarter issuances in 2019, as all 2019 issuances of share-settled SARs were made in the second quarter. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments.  The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions noted in the table shown below. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant.  The weighted average fair value for the SARs issued during 2020 and 2019 were $34.45 and $51.88, respectively, and were estimated using the weighted average assumptions shown in the table below.

	2020			2019
Expected Life in Years	6.2	-	7.0	7.0	-	7.0
Volatility	28.5%			30.2%
Interest Rate	0.7%			2.3%
Yield Rate	1.2%			1.0%

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Note 4 – Segment Information

The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called “All Other.”

The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate.

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	61,809	$	2,176	$	(2,487)	$	61,498
Investment income	5,627		322		—		5,949
Net realized (loss) gain on investments	(263)		449		—		186
Total revenues	$	67,173	$	2,947	$	(2,487)	$	67,633
Operating expenses	49,260		1,858		(2,342)		48,776
Income before income taxes	$	17,913	$	1,089	$	(145)	$	18,857
Total assets	$	213,152	$	76,593	$	—	$	289,745

Three Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	44,079	$	2,851	$	(1,684)	$	45,246
Investment income	1,879		391		—		2,270
Net realized gain on investments	346		77		—		423
Total revenues	$	46,304	$	3,319	$	(1,684)	$	47,939
Operating expenses	37,201		2,269		(1,550)		37,920
Income before income taxes	$	9,103	$	1,050	$	(134)	$	10,019
Total assets	$	191,436	$	74,678	$	—	$	266,114

Nine Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	154,820	$	7,149	$	(5,725)	$	156,244
Investment income	2,525		186		—		2,711
Net realized gain on investments	327		—		—		327
Total revenues	$	157,672	$	7,335	$	(5,725)	$	159,282
Operating expenses	129,777		6,543		(5,288)		131,032
Income before income taxes	$	27,895	$	792	$	(437)	$	28,250
Total assets	$	213,152	$	76,593	$	—	$	289,745

Nine Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	113,999	$	8,373	$	(4,820)	$	117,552
Investment income	9,780		2,087		—		11,867
Net realized gain on investments	1,102		97		—		1,199
Total revenues	$	124,881	$	10,557	$	(4,820)	$	130,618
Operating expenses	102,792		6,991		(4,417)		105,366
Income before income taxes	$	22,089	$	3,566	$	(403)	$	25,252
Total assets	$	191,436	$	74,678	$	—	$	266,114

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Note 5 – Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $12.4 million and $12.2 million as of September 30, 2020 and December 31, 2019, respectively. The executive employee benefits include health, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets. The following sets forth the net periodic benefit cost for the executive benefits for the periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Service cost – benefits earned during the year	$	—	$	—	$	—	$	—
Interest cost on the projected benefit obligation	7		8		23		25
Amortization of unrecognized losses	—		—		—		—
Net periodic benefit cost	$	7	$	8	$	23	$	25

Note 6 – 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 September 30, 2020 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	24,060	$	152	$	—	$	24,212
General obligations of U.S. states, territories and political subdivisions	17,569		1,245		—		18,814
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,305		3,098		3		50,400
Corporate debt securities	3,978		1,024		—		5,002
Total	$	92,912	$	5,519	$	3	$	98,428

As of December 31, 2019 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	25,161	$	6	$	4	$	25,163
General obligations of U.S. states, territories and political subdivisions	18,887		843		—		19,730
Special revenue issuer obligations of U.S. states, territories and political subdivisions	51,188		2,530		20		53,698
Corporate debt securities	5,431		621		5		6,047
Total	$	100,667	$	4,000	$	29	$	104,638

The special revenue category for both periods presented includes approximately 50 individual fixed maturity securities with revenue sources from a variety of industry sectors.

13

The scheduled maturities of fixed maturity securities at September 30, 2020 are as follows:

	Available-for-Sale
(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	31,052	$	31,253
Due one year through five years	42,795		46,050
Due five years through ten years	18,250		19,741
Due after ten years	815		1,384
Total	$	92,912	$	98,428

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 September 30, 2020 and December 31, 2019:

	Less than 12 Months				12 Months or Longer				Total
As of September 30, 2020 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Special revenue issuer obligations of U.S. states, territories and political subdivisions	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)
Total temporarily impaired securities	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)

	Less than 12 Months				12 Months or Longer				Total
As of December 31, 2019 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Government obligations	$	12,045	$	(4)	$	—	$	—	$	12,045	$	(4)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	1,101		(17)		1,118		(3)		2,219		(20)
Corporate debt securities	413		(5)		—		—		413		(5)
Total temporarily impaired securities	$	13,559	$	(26)	$	1,118	$	(3)	$	14,677	$	(29)

The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 1 and 6 fixed maturity securities had unrealized losses without an allowance for credit losses at September 30, 2020 and December 31, 2019, respectively. The Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive income.

14

Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss. The Company recorded $482 thousand and $0 of other-than-temporary impairment charges related to fixed maturity securities for the nine-month periods ended September 30, 2020 and 2019, respectively. Expenses related to other-than-temporary impairments are recorded in net realized investment gains in the Consolidated Statements of Operations when recognized.

Investments in Equity Securities

The cost and estimated fair value of equity securities are as follows:

As of September 30, 2020 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	34,180	$	58,851
Total	$	34,180	$	58,851

As of December 31, 2019 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	33,570	$	61,108
Total	$	33,570	$	61,108

Unrealized holding gains and losses are reported in the Consolidated Statements of Operations as changes in the estimated fair value of equity security investments.

Net Realized Investment Gains

Gross realized gains and losses on sales of investments for the nine-month period ended September 30 are summarized as follows:

(in thousands)	2020		2019
Gross realized gains from securities:
Corporate debt securities	$	30	$	—
Common stocks	2,520		1,385
Total	$	2,550	$	1,385
Gross realized losses from securities:
Common stocks	$	(1,768)	$	(188)
Other-than-temporary impairment of securities	(482)		—
Total	$	(2,250)	$	(188)
Net realized gains from securities	$	300	$	1,197
Gross realized gains (losses) on other investments:
Gains on other investments	$	32	$	2
Losses on other investments	(5)		—
Total	$	27	$	2
Net realized investment gains	$	327	$	1,199

Realized gains and losses are determined on the specific identification method.  

15

Variable Interest Entities

The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of September 30, 2020:

(in thousands)	Balance Sheet Classification	Carrying Value		Estimated Fair Value		Maximum Potential Loss (a)
Tax credit LPs	Other investments	$	267	$	267	$	1,768
Real estate LLCs or LPs	Other investments	5,090		6,680		6,675
Small business investment LPs	Other investments	7,125		6,667		12,955
Total		$	12,482	$	13,614	$	21,398

(a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.

Valuation of Financial Assets

The FASB has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

The Level 1 category includes equity securities and U.S. Treasury securities that are measured at estimated fair value using quoted active market prices.

The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories, and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of September 30, 2020 and December 31, 2019, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data.

In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.

16

In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:

Cash and cash equivalents

The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.

Measurement alternative equity investments

The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments, and plus or minus any changes resulting from observable price changes.  The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.

Accrued interest and dividends

The carrying amount for accrued interest and dividends is a reasonable estimate of fair value due to the short-term maturity of these assets.

The following table presents, by level, fixed maturity securities carried at estimated fair value as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,212	$	69,214	$	—	$	93,426
Corporate debt securities	—		5,002		—		5,002
Total	$	24,212	$	74,216	$	—	$	98,428

As of December 31, 2019 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,160	$	74,431	$	—	$	98,591
Corporate debt securities	—		6,047		—		6,047
Total	$	24,160	$	80,478	$	—	$	104,638

*Denotes fair market value obtained from pricing services.

The following table presents, by level, estimated fair values of equity investments and other financial instruments as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	41,534	$	—	$	—	$	41,534
Accrued interest and dividends	1,187		—		—		1,187
Equity securities, at fair value:
Common stocks	58,851		—		—		58,851
Short-term investments:
Money market funds, Treasury bills and certificates of deposit	22,516		—		—		22,516
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,541		6,541
Equity investments in unconsolidated affiliates, measurement alternative	—		—		8,288		8,288
Total	$	124,088	$	—	$	14,829	$	138,917

17

As of December 31, 2019 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	25,949	$	—	$	—	$	25,949
Accrued interest and dividends	1,033		—		—		1,033
Equity securities, at fair value:
Common stocks	61,108		—		—		61,108
Short-term investments:
Money market funds and certificates of deposit	13,134		—		—		13,134
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,083		6,083
Equity investments in unconsolidated affiliates, measurement alternative	—		—		7,899		7,899
Total	$	101,224	$	—	$	13,982	$	115,206

The Company did not hold any Level 3 category debt or marketable equity investment securities as of September 30, 2020 or December 31, 2019.

There were no transfers into or out of Levels 1, 2 or 3 during the periods presented.

To help ensure that estimated fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and estimated fair values consistent with ASC 820.

Certain equity investments under the measurement alternative are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be other-than-temporarily impaired, an impairment charge is recorded against such investment and reflected in the Consolidated Statements of Operations. There were no impairments of such investments made during the nine-month period ended September 30, 2020 or the twelve-month period ended December 31, 2019. The following table presents a rollforward of equity investments under the measurement alternative as of September 30, 2020 and December 31, 2019:

(in thousands)	Balance, December 31, 2019		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, September 30, 2020
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288
Total	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288

18

(in thousands)	Balance, December 31, 2018		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, December 31, 2019
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899
Total	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899

Note 7 – 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 be, in the aggregate, material to the Company’s consolidated financial condition or operations.

Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits, examinations, and inquiries. It is the opinion of management based on its present expectations that findings from these audits, examinations, and inquiries will not have a material impact on the Company’s consolidated financial condition or results of operations.

Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, escrowed funds received under escrow agreements, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of these deposits.

Like-Kind Exchanges Proceeds – In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $179.5 million and $214.6 million as of September 30, 2020 and December 31, 2019, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon interest rate. Exchange services revenues include earnings on these deposits; therefore, investment income is included as a component of non-title services on the Consolidated Statements of Operations rather than other investment income. Like-kind exchange funds are primarily invested in money market and other short-term investments.

COVID-19 – The U.S. and other countries are experiencing an outbreak of a novel coronavirus which causes a disease designated as COVID-19 and, in March 2020, the World Health Organization declared it a pandemic.  This contagious disease outbreak has continued to spread across the globe, including in U.S. states where the Company conducts business, and is impacting worldwide economic activity and financial markets. In response, the U.S. government and its agencies have taken a number of significant measures to provide fiscal and monetary stimulus. Such actions include an unscheduled cut to the federal funds rate, the introduction of new programs to preserve market liquidity, extended unemployment and sick leave benefits, low-interest loans for working capital access and payroll assistance, and other relief measures for both workers and businesses. The Company is fully operational and has not had any reductions in workforce during 2020. A large portion of the Company's workforce is performing their job functions remotely.  The Company has not taken stimulus relief funding or incurred any other forms of debt.

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Note 8 – Related Party Transactions

The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these limited liability companies. The following tables set forth the approximate values by year found within each financial statement classification:

Financial Statement Classification, Consolidated Balance Sheets (in thousands)	As of September 30, 2020		As of December 31, 2019
Other investments	$	6,541	$	6,083
Premium and fees receivable	$	635	$	410

Financial Statement Classification, Consolidated Statements of Operations (in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net premiums written	$	6,615	$	4,626	$	16,725	$	11,674
Non-title services and other investment income	$	1,104	$	779	$	2,241	$	1,866
Commissions to agents	$	4,486	$	3,056	$	11,279	$	7,702

Note 9 – Intangible Assets, Goodwill and Title Plant

Intangible Assets

The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the nine-month periods ended September 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired.

Identifiable intangible assets consist of the following:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Referral relationships	$	6,416	$	6,416
Non-compete agreements	1,406		1,406
Tradename	560		560
Total	8,382		8,382
Accumulated amortization	(2,835)		(2,456)
Identifiable intangible assets, net	$	5,547	$	5,926

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:

Year Ended (in thousands)
2020	$	126
2021	562
2022	525
2023	525
2024	473
Thereafter	3,336
Total	$	5,547

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Goodwill and Title Plant

As of September 30, 2020, the Company recognized $4.4 million in goodwill and $690 thousand in a title plant, net of impairments, as the result of title insurance agency acquisitions.  The title plant is included with other assets in the Consolidated Balance Sheets. The fair values of goodwill and the title plant as of the date of acquisition, both Level 3 inputs, were principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the nine-month periods ended September 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that there were no goodwill or title plant impairments.

Note 10 – Accumulated Other Comprehensive Income

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	4,294	$	(64)	$	4,230
Other comprehensive income before reclassifications	50		—		50
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	50		—		50
Ending balance	$	4,344	$	(64)	$	4,280

Three Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	2,886	$	(32)	$	2,854
Other comprehensive income before reclassifications	341		—		341
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	341		—		341
Ending balance	$	3,227	$	(32)	$	3,195

Nine Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	3,132	$	(32)	$	3,100
Other comprehensive income (loss) before reclassifications	864		(32)		832
Amounts reclassified from accumulated other comprehensive income	348		—		348
Net current-period other comprehensive income (loss)	1,212		(32)		1,180
Ending balance	$	4,344	$	(64)	$	4,280

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Nine Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	981	$	(32)	$	949
Other comprehensive income before reclassifications	2,246		—		2,246
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	2,246		—		2,246
Ending balance	$	3,227	$	(32)	$	3,195

The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and nine-month periods ended September 30, 2020:

Three Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	—
Other-than-temporary impairments	—
Total	$	—	Net realized investment gains
Tax	—		Provision for income taxes
Net of Tax	$	—
Reclassifications for the period	$	—

Nine Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	30
Other-than-temporary impairments	(482)
Total	$	(452)	Net realized investment gains
Tax	104		Provision for income taxes
Net of Tax	$	(348)
Reclassifications for the period	$	(348)

There were no amounts reclassified out of each component of accumulated other comprehensive income for either the three- or nine-month periods ended September 30, 2019.

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Note 11 – Revenue from Contracts with Customers

ASU 2014-09, Revenue from Contracts with Customers (Topic 606) requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance does not apply to revenue associated with insurance contracts (including title insurance policies), financial instruments and lease contracts; and therefore is primarily applicable to the following Company revenue categories.

Escrow and other title-related fees – The Company’s title segment recognizes commission revenue and fees related to items such as searches, settlements, commitments and other ancillary services. Escrow and other title-related fees are recognized as revenue at the time of the related transactions as the earnings process, or performance obligation, is then considered to be complete.

Non-title services – Through various subsidiaries, the Company offers management services, tax-deferred real property exchange services, investment management and trust services. Nonrefundable exchange fees are recognized as revenue upon receipt of the funds, which is at the time of closing of the initial sale of property. All other non-title service fees are recognized as revenue as performance obligations are completed.

Other – The Company occasionally recognizes revenue from other miscellaneous contracts which can include, but is not limited to seminar and education registration fees and software licensing contracts. These revenue streams are deemed immaterial to the operations of the Company, and revenue is recognized when, or as, performance obligations are completed.

The following table provides a breakdown of the Company’s revenue by major business activity:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Revenue from contracts with customers:
Escrow and other title-related fees	$	2,154	$	2,393	$	6,014	$	5,616
Non-title services	1,954		2,539		6,476		7,444
Total revenue from contracts with customers	4,108		4,932		12,490		13,060
Other sources of revenue:
Net premiums written	57,205		40,169		143,311		103,942
Investment-related revenue	6,135		2,693		3,038		13,066
Other	185		145		443		550
Total revenues	$	67,633	$	47,939	$	159,282	$	130,618

Note 12 – Leases

The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease.

A portion of the Company's current leases include an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The operating lease liability recorded in the Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate was available to the Company.

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Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating leases	$	327	$	312	$	968	$	944
Short-term leases (b)	44		30		110		103
Lease expense	$	371	$	342	$	1,078	$	1,047
Sub-lease income	—		—		—		—
Lease cost	$	371	$	342	$	1,078	$	1,047

(b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

Components of the operating lease liability presented on the Consolidated Balance Sheets are as follows:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Current:
Operating lease liabilities	$	1,097	$	1,048
Non-current:
Operating lease liabilities	2,840		3,454
Total operating lease liabilities	$	3,937	$	4,502

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2020, are summarized as follows:

Year Ended (in thousands)
2020	$	324
2021	1,195
2022	975
2023	685
2024	515
Thereafter	649
Total undiscounted payments	$	4,343
Less: present value adjustment	(406)
Operating lease liabilities	$	3,937

Supplemental lease information is as follows:

	As of September 30, 2020		As of December 31, 2019
Weighted average remaining lease term (years)	4.40		4.84
Weighted average discount rate	4.6	%	4.6	%

The Company does not have any material pending operating or financing lease agreements that become effective in future periods.

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Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company's Annual Report on Form 10-K for the year ended December 31, 2019 should be read in conjunction with the following discussion since it contains information which is important for evaluating the Company's operating results and financial condition.

In addition, the Company may make forward-looking statements in the following discussion and analysis. Forward looking statements are based on certain assumptions and expectations of future events that are subject to a number of risks and uncertainties. Actual results may vary. See "Safe Harbor for Forward-Looking Statements" at the end of this discussion and analysis, as well as the sections titled "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K and Part II, Item 1A of this Quarterly Report on Form 10-Q for factors that could affect forward-looking statements.

Overview

Investors Title Company (the “Company”) is a holding company that engages primarily in issuing title insurance through two subsidiaries, Investors Title Insurance Company (“ITIC”) and National Investors Title Insurance Company (“NITIC”). Total revenues from the title segment accounted for 95.9% of the Company's revenues for the nine-month period ended September 30, 2020. Through ITIC and NITIC, the Company underwrites land title insurance for owners and mortgagees as a primary insurer.

Title insurance protects against loss or damage resulting from title defects that affect real property. When real property is conveyed from one party to another, occasionally there is an undisclosed defect in the title or a mistake or omission in a prior deed, will or mortgage that may give a third party a legal claim against such property.  If a covered claim is made against real property, title insurance provides indemnification against insured defects.

There are two basic types of title insurance policies – one for the mortgage lender and one for the real property owner.  A lender often requires the property owner to purchase a lender’s title insurance policy to protect its position as a holder of a mortgage loan, but the lender’s title insurance policy does not protect the property owner.  The property owner has to purchase a separate owner’s title insurance policy to protect its investment.

The Company issues title insurance policies through its home and branch offices and through a network of agents.  Issuing agents are typically real estate attorneys, independent agents or subsidiaries of community and regional mortgage lending institutions, depending on local customs and regulations and the Company’s marketing strategy in a particular territory.  The ability to attract and retain issuing agents is a key determinant of the Company’s growth in title insurance premiums written.

Revenues for the title insurance segment primarily result from purchases of new and existing residential and commercial real estate, refinance activity and certain other types of mortgage lending such as home equity lines of credit.

Title insurance premiums vary from state to state and are subject to extensive regulation. Statutes generally provide that rates must not be excessive, inadequate or unfairly discriminatory. The process of implementing a rate change in most states involves pre-approval by the applicable state insurance regulator.

Volume is a factor in the Company’s profitability due to fixed operating costs that are incurred by the Company regardless of title insurance premium volume.  The resulting operating leverage tends to amplify the impact of changes in volume on the Company’s profitability.  The Company’s profitability also depends, in part, upon its ability to manage its investment portfolio to maximize investment returns and to minimize risks such as interest rate changes, defaults and impairments of assets.

The Company’s volume of title insurance premiums is affected by the overall level of residential and commercial real estate activity, which includes property sales, mortgage financing and mortgage refinancing.  Real estate activity, home sales and mortgage lending are cyclical in nature. Real estate activity is affected by a number of factors, including the availability of mortgage credit, the cost of real estate, consumer confidence, employment and family income levels, and general United States economic conditions.  Interest rate volatility is also an important factor in the level of residential and commercial real estate activity.

The Company’s title insurance premiums in future periods are likely to fluctuate due to these and other factors which are beyond management’s control.

Historically, the title insurance business tends to be seasonal as well as cyclical. Because home sales are typically strongest in periods of favorable weather, the first calendar quarter tends to have the lowest activity levels, while the spring and summer quarters tend to be more active. Mortgage refinance activity tends to be influenced less by seasonality and more by economic cycles, with activity levels increasing during times of falling interest rates.

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Services other than title insurance provided by operating divisions of the Company are not reported separately, but rather are reported collectively in a category called “All Other”.  These other services include those offered by the Company and by its wholly owned subsidiaries, Investors Title Exchange Corporation (“ITEC”), Investors Title Accommodation Corporation (“ITAC”), Investors Trust Company (“Investors Trust”) and Investors Title Management Services, Inc. (“ITMS”).

The Company’s exchange services division, consisting of the operations of ITEC and ITAC, provides customer services in connection with tax-deferred real property exchanges. ITEC acts as a qualified intermediary in tax-deferred exchanges of property held for productive use in a trade or business or for investment, and its income is derived from fees for handling exchange transactions and interest earned on client deposits held by the Company. In its role as qualified intermediary, ITEC coordinates the exchange aspects of the real estate transaction, and its duties include drafting standard exchange documents, holding the exchange funds between the time the old property is sold and the new property is purchased, and accepting the formal identification of the replacement property within the required identification period. ITAC provides services as an exchange accommodation titleholder for accomplishing “parking transactions” as set forth in the safe harbor contained in Internal Revenue Procedure 2000-37.  These transactions include reverse exchanges when taxpayers decide to acquire replacement property before selling the relinquished property, or “build to suit” exchanges, when improvements must be made to the replacement property before the taxpayer acquires the improved replacement property. The services provided by the Company’s exchange services division, ITEC and ITAC, are pursuant to provisions in the Internal Revenue Code. From time to time, these laws are subject to review and changes, which may negatively affect the demand for tax-deferred exchanges in general, and consequently, the revenues and profitability of the Company’s exchange services division.

The Company’s trust services division, Investors Trust, provides investment management and trust services to individuals, companies, banks and trusts.

ITMS offers various consulting and management services to provide clients with the technical expertise to start and successfully operate a title insurance agency.

Business Trends and Recent Conditions; COVID-19 Pandemic

The housing market is heavily influenced by government policies and overall economic conditions.  Regulatory reform and initiatives by various governmental agencies, including the Federal Reserve's monetary policy and other regulatory changes, could impact lending standards or the processes and procedures used by the Company. The current real estate environment, including interest rates and general economic activity, typically influence the demand for real estate. Changes in either of these areas would likely impact the Company's results of operations.

The U.S. and other countries are experiencing an outbreak of a novel coronavirus which causes a disease designated as COVID-19 and, in March 2020, the World Health Organization declared it a pandemic.  This contagious disease outbreak has continued to spread across the globe, including in U.S. states where the Company conducts business, and is impacting worldwide economic activity and financial markets. In response, the U.S. government and its agencies have taken a number of significant measures to provide fiscal and monetary stimulus. Such actions include an unscheduled cut to the federal funds rate, the introduction of new programs to preserve market liquidity, extended unemployment and sick leave benefits, low-interest loans for working capital access and payroll assistance, and other relief measures for both workers and businesses. The Company is fully operational and has not had any reductions in workforce during 2020. A large portion of the Company's workforce is performing their job functions remotely.  The Company has not taken stimulus relief funding or incurred any other forms of debt.

The primary impact of the COVID-19 pandemic on the Company’s first quarter results of operations was a reduction in value of the investment portfolio. In the second and third quarters, the Company recognized income from changes in the estimated fair value of equity securities as the Company's equity holdings partially rebounded. Purchase volume and refinance activity were strong in the third quarter, as lower average mortgage interest rates, a tight real estate supply and pent-up demand spurred real estate activity and prices. It is unclear if real estate activity will remain as resilient in future periods. It is possible that net premiums written could decline in the future due to the pandemic and the economic disruption it is causing. Because of the inherent uncertainty regarding the duration and severity of the COVID-19 pandemic and its effects on the economy, as well as uncertainty regarding the effects of government measures already taken, and which may be taken or continued in the future, to combat the spread of the virus, the Company is currently unable to predict what the ultimate impact of the pandemic on its business will be.

The Company has implemented a number of measures to protect the health of its employees and to provide for the continuity of its business during this unpredictable time of crisis, including moving portions of its workforce to telecommuting and restricting business travel. To help get mortgage transactions closed during the pandemic, temporary guidelines have been issued by several entities allowing certain technologies to be used to facilitate what would otherwise be traditional, in-person paper-based closings. Businesses involved in the real estate industry, including the Company, are expected to continue to evaluate the evolving COVID-19 situation and may take additional measures to adapt as the situation developments.

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Regulatory Environment

The Federal Open Market Committee (“FOMC”) of the Federal Reserve issues disclosures on a periodic basis that include projections of the federal funds rate and expected actions. Starting in December 2015, the FOMC has voted on several occasions to increase the federal funds rate, most recently at the December 2018 meeting to a target range between 2.25% and 2.50%. However, due to developments impacting the economic outlook, as well as muted inflation pressures, at the July 2019 meeting, the FOMC reversed course and decided to lower the target range for the federal funds rate to between 2.00% and 2.25%. The FOMC has elected to lower rates at subsequent meetings. In normal economic situations, future adjustments to the rate are expected to be based on realized and expected economic developments to achieve maximum employment and inflation near the FOMC's symmetric long-term 2.0% objective. However, in response to risk posed to economic activity by COVID-19, on March 15, 2020, the FOMC lowered the target range between 0.00% and 0.25%. The FOMC has maintained this target range, and expects to continue to do so until it is confident that the U.S. economy has weathered recent events and is on track to meet its goals.

In 2008, the federal government took control of the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) in an effort to keep these government-sponsored entities from failing. The primary functions of Fannie Mae and Freddie Mac are to provide liquidity to the nation's mortgage finance system by purchasing mortgages on the secondary market, pooling them and selling them as mortgage-backed securities. In order to securitize, Fannie Mae and Freddie Mac typically require the purchase of title insurance for loans they acquire. Since the federal takeover, there have been various discussions and proposals regarding their reform. Changes to these entities could impact the entire mortgage loan process and, as a result, could affect the demand for title insurance. The timing and results of reform are currently unknown; however, any changes to these entities could affect the Company and its results of operations.

In recent years, the Consumer Financial Protection Bureau (“CFPB”), Office of the Comptroller of Currency and the Federal Reserve have issued memorandums to banks that communicated those agencies’ heightened focus on vetting third-party providers. Such increased regulatory involvement may affect the Company's agents and approved providers. Further proposals to change regulations governing insurance holding companies and the title insurance industry are often introduced in Congress, in state legislatures and before various insurance regulatory agencies. Although the Company regularly monitors such proposals, the likelihood and timing of passage of any such regulation, and the possible effects of any such regulation on the Company and its subsidiaries, cannot be determined at this time.

In recent periods, both the President and certain members of Congress have indicated a desire for reform of the CFPB. The Supreme Court of the United States has ruled that the structure of the CFPB is unconstitutional, but has allowed the work of the agency to continue. The timing and nature of any reforms are currently unknown; however, any changes to the CFPB could affect the Company and its results of operations.

Real Estate Environment

The Mortgage Bankers Association's ("MBA") October 21, 2020 Mortgage Finance Forecast (“MBA Forecast”), which includes COVID-19 considerations, projects 2020 purchase activity to increase 15.8% to $1,418 billion and mortgage refinance activity to increase 70.9% to $1,757 billion, resulting in a net increase in total mortgage originations of 40.9% to $3,175 billion, all from 2019 levels. In 2019, purchase activity accounted for 54.4% of all mortgage originations and is projected in the MBA Forecast to represent 44.7% of all mortgage originations in 2020. The MBA Forecast is, however, projecting decreases in mortgage originations for 2021 and 2022. Due to the rapidly changing environment brought on by COVID-19, these projections and the impact of actual future developments on the Company could be subject to material change.

According to data published by Freddie Mac, the average 30-year fixed mortgage interest rates in the United States were 3.2% and 4.0% for the nine-month periods ended September 30, 2020 and 2019, respectively. Per the MBA Forecast, mortgage interest rates are projected to be 3.0% in the fourth quarter of 2020, and then increase to 3.6% by 2022.

Historically, activity in real estate markets has varied over the course of market cycles by geographic region and in response to evolving economic factors. Operating results can vary from year to year based on cyclical market conditions and do not necessarily indicate the Company's future operating results and cash flows.

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Critical Accounting Estimates and Policies

The preparation of the Company's Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of certain assets, liabilities, revenues, expenses and related disclosures regarding contingencies and commitments. Actual results could differ from these estimates. During the nine-month period ended September 30, 2020, the Company made the following changes to its critical accounting policies as previously disclosed in Management's Discussion and Analysis in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission.

The Company has updated the following accounting policies due to the adoption of Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326):

Allowance for Credit Losses – Available-for-Sale Securities

For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation.

In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable is excluded from the estimate of credit losses.

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Results of Operations

The following table presents certain Consolidated Statements of Operations data for the three- and nine-month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Revenues:
Net premiums written	$	57,205	$	40,169	$	143,311	$	103,942
Escrow and other title-related fees	2,154		2,393		6,014		5,616
Non-title services	1,954		2,539		6,476		7,444
Interest and dividends	1,060		1,156		3,342		3,605
Other investment income	1,270		708		2,236		2,044
Net realized investment gains	186		423		327		1,199
Changes in the estimated fair value of equity security investments	3,619		406		(2,867)		6,218
Other	185		145		443		550
Total Revenues	67,633		47,939		159,282		130,618
Operating Expenses:
Commissions to agents	29,068		19,928		73,344		51,261
Provision for claims	1,552		987		4,452		3,610
Personnel expenses	12,575		11,576		36,632		34,871
Office and technology expenses	2,456		2,350		7,328		6,803
Other expenses	3,125		3,079		9,276		8,821
Total Operating Expenses	48,776		37,920		131,032		105,366
Income before Income Taxes	18,857		10,019		28,250		25,252
Provision for Income Taxes	3,556		2,067		5,465		5,174
Net Income	$	15,301	$	7,952	$	22,785	$	20,078

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Insurance Revenues

Insurance revenues include net premiums written and escrow and other title-related income that includes escrow fees, commissions and settlement fees. Non-title services revenue, investment-related revenues and other revenues are discussed separately below.

Net Premiums Written

Net premiums written increased 42.4% and 37.9% for the three- and nine-month periods ended September 30, 2020 to $57.2 million and $143.3 million, compared with $40.2 million and $103.9 million for the same prior year periods. The increases for the three- and nine-month periods ended September 30, 2020 were primarily driven by increased refinance activity and strong purchase volume, as lower average mortgage interest rates continued to spur real estate activity.

Title insurance companies typically issue title insurance policies directly through home and branch offices or through title agencies. Following is a breakdown of premiums generated by branch and agency operations for the three- and nine-month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except percentages)	2020		%	2019		%	2020		%	2019		%
Home and Branch	$	15,496	27.1	$	11,557	28.8	$	38,364	26.8	$	29,111	28.0
Agency	41,709		72.9	28,612		71.2	104,947		73.2	74,831		72.0
Total	$	57,205	100.0	$	40,169	100.0	$	143,311	100.0	$	103,942	100.0

Home and Branch Office Net Premiums – In the Company's home and branch operations, the Company issues a title insurance policy and retains the entire premium, as no commissions are paid in connection with these policies. Net premiums written from home and branch operations increased 34.1% and 31.8% for the three- and nine-month periods ended September 30, 2020, compared with the same prior year periods. The increases for the three- and nine-month periods ended September 30, 2020 were primarily attributable to increased refinance activity and strong purchase volume, as lower average mortgage interest rates continued to spur real estate activity.

All of the Company's home office operations and the majority of branch offices are located in North Carolina; as a result, the home and branch office net premiums written are primarily for North Carolina title insurance policies.

Agency Net Premiums – When a policy is written through a title agency, the premium is shared between the agency and the underwriter. Total premiums include an estimate of premiums for policies that have been issued by agents, but not reported to the Company as of the balance sheet date. To determine the estimated premiums, the Company uses historical experience, as well as other factors, to make certain assumptions about the average elapsed time between the policy effective date and the date the policies are reported. From time to time, the Company adjusts the inputs to the estimation process as agents report transactions and new information becomes available. In addition to estimating revenues, the Company also estimates and accrues agent commissions, claims provision, premium taxes, income taxes, and other expenses associated with the estimated revenues that have been accrued. The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available.

Agency net premiums written increased 45.8% and 40.2% for the three- and nine-month periods ended September 30, 2020, compared with the same prior year periods. The increases for the three- and nine-month periods ended September 30, 2020 were primarily attributable to increased refinance activity and strong purchase volume, as lower average mortgage interest rates continued to spur real estate activity.

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Following is a schedule of net premiums written for the three- and nine-month periods ended September 30, 2020 and 2019 in select states in which the Company's two insurance subsidiaries, ITIC and NITIC, currently underwrite title insurance:

	Three Months Ended September 30,				Nine Months Ended September 30,
State (in thousands)	2020		2019		2020		2019
North Carolina	$	21,524	$	16,129	$	53,565	$	40,790
Texas	10,956		7,579		26,935		19,929
Georgia	6,347		4,535		15,751		11,306
South Carolina	4,646		3,212		12,285		9,551
Virginia	2,122		1,686		5,725		4,316
All Others	11,782		7,113		29,421		18,385
Premiums Written	57,377		40,254		143,682		104,277
Reinsurance Assumed	—		—		3		—
Reinsurance Ceded	(172)		(85)		(374)		(335)
Net Premiums Written	$	57,205	$	40,169	$	143,311	$	103,942

Escrow and Other Title-Related Fees

Escrow and other title-related fees consists primarily of commission income, escrow and other various fees associated with the issuance of a title insurance policy including settlement, examination and closing fees. Escrow and other title-related fee revenues were $2.2 million and $6.0 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $2.4 million and $5.6 million for the same prior year periods. The decrease for the three-month period ended September 30, 2020 primarily related to lower commission income. The increase for the nine-month period ended September 30, 2020 primarily related to higher fee income.

Revenue from Non-Title Services

Revenue from non-title services includes trust services, agency management services and exchange services income. Non-title service revenues were $2.0 million and $6.5 million for the three- and nine-month periods ended September 30, 2020, compared with $2.5 million and $7.4 million for the same prior year periods. The decreases in 2020 primarily related to decreased exchange services income due to the impact of changes in the interest rate environment.

Investment-Related Revenues

Investment-related revenues include interest and dividends, other investment income, net realized investment gains and changes in the estimated fair value of equity security investments.

Interest and Dividends

The Company derives a substantial portion of its income from investments in fixed maturity securities, which are primarily municipal and corporate fixed maturity securities, and equity securities. The Company’s investment policy is designed to comply with regulatory requirements and to balance the competing objectives of asset quality and investment returns.  The Company's title insurance subsidiaries are required by statute to maintain minimum levels of investments in order to protect the interests of policyholders.

The Company’s investment strategy emphasizes after-tax income and principal preservation.  The Company’s investments are primarily in fixed maturity securities and, to a lesser extent, equity securities.  The average effective maturity of the majority of the fixed maturity securities is less than 10 years.  The Company’s invested assets are managed to fund its obligations and evaluated to ensure long term stability of capital accounts.

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As the Company generates cash from operations, it is invested in accordance with the Company’s investment policy and corporate goals.  The Company’s investment policy has been designed to balance multiple goals, including the assurance of a stable source of income from interest and dividends, the preservation of principal, and the provision of liquidity sufficient to meet insurance underwriting and other obligations as they become payable in the future.  Securities purchased may include a combination of taxable or tax-exempt fixed maturity securities and equity securities.  The Company also invests in short-term investments that include money market funds, certificates of deposit and Treasury bills. The Company strives to maintain a high quality investment portfolio.  Interest and investment income levels are primarily a function of general market performance, interest rates and the amount of cash available for investment.

Interest and dividends were $1.1 million and $3.3 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $1.2 million and $3.6 million for the same prior year periods. The decreases in 2020 were primarily related to lower interest rates on fixed maturity securities.

Other Investment Income

Other investment income consists primarily of income related to investments in unconsolidated affiliates, typically structured as limited liability companies ("LLC's"), accounted for under either the equity method of accounting or the measurement alternative for investments that do not have readily determinable fair values. 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.

Other investment income was $1.3 million and $2.2 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $708 thousand and $2.0 million for the same prior year periods. Changes in other investment income are impacted by fluctuations in the carrying value of the underlying investment and or distributions received.

Net Realized Investment Gains

Dispositions of equity securities at a realized gain or loss reflect such factors as industry sector allocation decisions, ongoing assessments of issuers’ business prospects and tax planning considerations.  Additionally, the amounts included in net realized investment gains are affected by assessments of securities’ valuation for other-than-temporary impairment.  As a result of the interaction of these factors and considerations, the net realized investment gain or loss can vary significantly from period to period.

The net realized investment gains were $186 thousand and $327 thousand for the three- and nine-month periods ended September 30, 2020, respectively, compared with $423 thousand and $1.2 million for the same prior year periods. The net realized investment gains for the nine-month period ended September 30, 2020 included impairment charges of $482 thousand for certain fixed maturity securities the Company determined were other-than-temporarily impaired. There were no impairment charges recorded in 2019. Management believes unrealized losses on the remaining fixed maturity securities at September 30, 2020 are temporary in nature.

The securities in the Company’s investment portfolio are subject to economic conditions and market risks.  The Company considers relevant facts and circumstances in evaluating whether a credit or interest-related impairment of a fixed maturity security is other-than-temporary.  Relevant facts and circumstances include the extent and length of time the fair value of an investment has been below cost.

There are a number of risks and uncertainties inherent in the process of monitoring impairments and determining if an impairment is other-than-temporary. These risks and uncertainties include the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the characteristics of that issuer; the risk that information obtained by the Company or changes in other facts and circumstances leads management to change its intent to sell the fixed maturity security; and the risk that management is making decisions based on misstated information in the financial statements provided by issuers.

Changes in the Estimated Fair Value of Equity Security Investments

Changes in the estimated fair value of equity security investments were $3.6 million and $(2.9) million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $406 thousand and $6.2 million for the same prior year periods. Such fluctuations are the result of changes in general market conditions during the respective periods. In the first quarter of 2020, all major U.S. stock market indices substantially declined due to economic slowdowns and uncertainty resulting from COVID-19. The major stock market indices partially recovered the first quarter losses during the second and third quarters of 2020.

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Other Revenues

Other revenues primarily include state tax credit income, gains and losses on the disposal of fixed assets and miscellaneous revenues. Other revenues were $185 thousand and $443 thousand for the three- and nine-month periods ended September 30, 2020, respectively, compared with $145 thousand and $550 thousand for the same prior year periods. The decrease for the nine-month period ended September 30, 2020 primarily related to a decline in state tax credit income.

Expenses

The Company's operating expenses consist primarily of commissions to agents, personnel expenses, office and technology expenses and the provision for claims. Operating expenses increased 28.6% and 24.4% for the three- and nine-month periods ended September 30, 2020, respectively, compared with the same prior year periods. The increases for the three- and nine-month periods ended September 30, 2020 were primarily due to increases in commissions to agents, claims expense and personnel expenses.

Following is a summary of the Company's operating expenses for the three- and nine-month periods ended September 30, 2020 and 2019. Inter-segment eliminations have been netted; therefore, the individual segment amounts will not agree to Note 4 in the accompanying Consolidated Financial Statements.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except percentages)	2020		%	2019		%	2020		%	2019		%
Title Insurance	$	46,951	96.3	$	35,682	94.1	$	124,588	95.1	$	98,468	93.5
All Other	1,825		3.7	2,238		5.9	6,444		4.9	6,898		6.5
Total	$	48,776	100.0	$	37,920	100.0	$	131,032	100.0	$	105,366	100.0

On a combined basis, after-tax profit margins were 22.6% and 14.3% for the three- and nine-month periods ended September 30, 2020, respectively, compared with 16.6% and 15.4% for the same prior year periods. The Company continually strives to enhance its competitive strengths and market position, including ongoing initiatives to manage its operating expenses.

Total Company

Personnel Expenses – Personnel expenses include base salaries, benefits and payroll taxes, bonuses paid to employees and contract labor expenses. Personnel expenses were $12.6 million and $36.6 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $11.6 million and $34.9 million for the same prior year periods. On a consolidated basis, personnel expenses as a percentage of total revenues were 18.6% and 23.0% for the three- and nine-month periods ended September 30, 2020, respectively, compared with 24.1% and 26.7% for the same prior year period. The increases in personnel expenses for the three- and nine-month periods ended September 30, 2020 were primarily related to normal inflationary increases in salaries, benefits and higher staffing levels to accommodate volume growth and targeted staffing increases to support growth initiatives.

Office and Technology Expenses – Office and technology expenses primarily include facilities expenses, software and hardware expenses, depreciation expense, telecommunications expenses, and business insurance. Office and technology expenses were $2.5 million and $7.3 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $2.4 million and $6.8 million for the same prior year periods. The increases for the three- and nine-month periods ended September 30, 2020 were primarily related to ongoing investments in software and technology related initiatives.

Other Expenses – Other expenses primarily include business development expenses, premium-related taxes and licensing, professional services, title and service fees, amortization of intangible assets and other general expenses. Other expenses were $3.1 million and $9.3 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $3.1 million and $8.8 million for the same prior year periods. The increase for the nine-month period ended September 30, 2020 was primarily related to increases in premium-related taxes and licensing and professional services, partially offset by a decline in business development expenses.

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Title Insurance

Commissions to Agents – Agent commissions represent the portion of premiums retained by agents pursuant to the terms of their respective agency contracts. Commissions to agents increased 45.9% and 43.1% for the three- and nine-month periods ended September 30, 2020, respectively, compared with the same prior year periods. Commission expense as a percentage of net premiums written by agents was 69.7% and 69.9% for the three- and nine-month periods ended September 30, 2020, respectively, compared with 69.6% and 68.5% for the same prior year periods. The changes in commission expense, and commission expense as a percentage of net premiums written, were primarily related to increased premiums written by agents and changes in geographic mix for the three- and nine-month periods ended September 30, 2020. Commission rates vary by market due to local practice, competition and state regulations.

Provision for Claims – The provision for claims increased 57.2% and 23.3% for the three- and nine-month periods ended September 30, 2020, respectively, compared with the same prior year periods. The provision for claims as a percentage of net premiums written was 2.7% and 3.1% for the three- and nine-month periods ended September 30, 2020, respectively, compared with 2.5% and 3.5% for the same prior year periods. The increases in the provision for claims expenses for the three- and nine-month periods ended September 30, 2020 were primarily due to additional underwriting risks caused by the increase in premiums written. A reduction in favorable loss development, compared to the prior year period, also impacted the nine-month period ended September 30, 2020.

Title claims are typically reported and paid within the first several years of policy issuance. The provision for claims reflects actual payments of claims, net of recovery amounts, plus adjustments to the specific and incurred but not reported claims reserves, the latter of which are actuarially determined based on historical claims experience. Actual payments of claims, net of recoveries, were $2.3 million and $3.5 million for the nine-month periods ended September 30, 2020 and 2019, respectively.

At September 30, 2020, the total reserve for claims was $33.5 million. Of that total, approximately $4.0 million was reserved for specific claims, and approximately $29.5 million was reserved for claims for which the Company had no notice. Because of the uncertainty of future claims, changes in economic conditions and the fact that claims may not materialize for several years, reserve estimates are subject to variability.

Changes from prior periods in the expected liability for claims reflect the uncertainty of the claims environment, as well as the limited predictive power of historical data. The Company continually updates and refines its reserve estimates as current experience develops and credible data emerges. Such data includes payments on claims closed during the quarter, new details that emerge on open cases that cause claims adjusters to increase or decrease the case reserves, and the impact that these types of changes have on the Company’s total loss provision. Adjustments may be required as new information develops, which often varies from past experience.

Income Taxes

The provision for income taxes was $3.6 million and $5.5 million for the three- and nine-month periods ended September 30, 2020, respectively, compared with $2.1 million and $5.2 million for the same prior year periods. Income tax expense, including federal and state taxes, as a percentage of income before income taxes was 18.9% and 19.3% for the three- and nine-month periods ended September 30, 2020, compared with 20.6% and 20.5% for the same prior year periods. The effective income tax rates for both 2020 and 2019 differ from the U.S. federal statutory income tax rate of 21% primarily due to the effect of tax-exempt income. Tax-exempt income lowers the effective tax rate.

The Company believes it is more likely than not that the tax benefits associated with recognized impairments and unrecognized losses recorded through September 30, 2020 will be realized. However, this judgment could be impacted by further market fluctuations.

Liquidity and Capital Resources

The Company’s current cash requirements primarily include general operating expenses (including the payment of title claims), income taxes, capital expenditures and dividends on its common stock. Cash flows from operations have historically been the primary source of financing for expanding operations, whether through organic growth or outside investments.

The Company evaluates nonorganic growth opportunities, such as mergers and acquisitions, from time to time in the ordinary course of business. Because of the episodic nature of these events, related incremental liquidity and capital resource needs can be difficult to predict.

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The Company’s operating results and cash flows are heavily dependent on the real estate market. The Company’s business has certain fixed costs such as personnel; therefore, changes in the real estate market are monitored closely, and operating expenses such as staffing levels are managed and adjusted accordingly. The Company believes that its significant working capital position and management of operating expenses will aid its ability to manage cash resources through fluctuations in the real estate market.

The extent to which COVID-19 impacts the Company's future operations will depend on future developments which cannot be predicted with certainty at this time, including the duration and severity of the pandemic, actions taken to contain the spread of the virus, and regulatory actions taken as a result of the outbreak.  Currently, the Company is fully operational and has not had any reductions in workforce during 2020. A large portion of the Company's workforce is performing their job functions remotely.  The Company has not taken stimulus relief funding or incurred any other forms of debt.

Cash Flows – Net cash flows provided by operating activities were $21.9 million and $10.0 million for the nine-month periods ended September 30, 2020 and 2019, respectively. Cash flows provided by operating activities increased in 2020 from 2019, primarily due to net income increasing when adjusted for non-cash items, such as changes in the estimated fair value of equity security investments, and the timing of tax and payable disbursements. This was partially offset by changes in other assets and the timing of the collection of receivables.

Cash flows from non-operating activities have historically consisted of purchases and proceeds from investing activities and the payment of dividends. Net cash was used in investing activities in 2020, compared with net cash being provided by investing activities in the prior year period, due to purchase activity of investments outpacing proceeds received from investments.

The Company maintains a high degree of liquidity within its investment portfolio in the form of cash, short-term investments and other readily marketable securities. As of September 30, 2020, the Company held cash and cash equivalents of $41.5 million, short-term investments of $22.5 million, available-for-sale fixed maturity securities of $98.4 million and equity securities of $58.9 million. The net effect of all activities on total cash and cash equivalents was an increase of $15.6 million in 2020.

Capital Resources – The amount of capital resources the Company maintains is influenced by state regulation, the need to maintain superior financial ratings from third-party rating agencies and other marketing and operational considerations.

The Company's significant sources of funds are dividends and distributions from its subsidiaries, primarily its two title insurance subsidiaries. Cash is received from its subsidiaries in the form of dividends and as reimbursements for operating and other administrative expenses that it incurs. The reimbursements are executed within the guidelines of management agreements between the Company and its subsidiaries.

The ability of the Company's title insurance subsidiaries to pay dividends to the Company is subject to state regulation from their respective states of domicile. Each state regulates the extent to which title underwriters can pay dividends or make distributions and requires prior regulatory approval of the payment of dividends and other intercompany transfers. The maximum dividend permitted by law is not necessarily indicative of an insurer’s actual ability to pay dividends. Depending on regulatory conditions, the Company may in the future need to retain cash in its title insurance subsidiaries in order to maintain their statutory capital position. As of September 30, 2020, both ITIC and NITIC met the minimum capital, surplus and reserve requirements for each state in which they are licensed.

While state regulations and the need to cover risks may set a minimum level for capital requirements, other factors necessitate maintaining capital resources in excess of the required minimum amounts. For instance, the Company’s capital resources help it maintain high ratings from insurance company rating agencies. Superior ratings strengthen the Company's ability to compete with larger, well known title insurers with national footprints.

A strong financial position provides the necessary flexibility to fund potential acquisition activity, to invest in the Company's core business, and to minimize the financial impact of potential adverse developments. Adverse developments that generally require additional capital include adverse financial results, changes in statutory accounting requirements by regulators, reserve charges, investment losses or costs incurred to adapt to a changing regulatory environment, including costs related to CFPB regulation of the real estate industry.

The Company bases its capitalization levels, in part, on net coverage retained. Since the Company’s geographical focus has been and continues to be concentrated in states with average premium rates typically lower than the national average, capitalization relative to premiums will usually appear higher than industry averages.

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Due to the Company’s historical ability to consistently generate positive cash flows from its consolidated operations and investment income, management believes that funds generated from operations will enable the Company to adequately meet its current operating needs for the foreseeable future. However, especially with the onset and continued spread of COVID-19, there can be no assurance that future experience will be similar to historical experience, since it is influenced by such factors as the interest rate environment, real estate activity, the Company’s claims-paying ability and its financial strength ratings. In addition to operational and investment considerations, taking advantage of opportunistic external growth opportunities may necessitate obtaining additional capital resources. The Company is carefully monitoring the COVID-19 situation and any other trends that are likely to result in material adverse liquidity changes, and will continually assess its capital allocation strategy, including decisions relating to payment of dividends, repurchasing the Company’s stock and/or conserving cash.

Purchase of Company Stock – On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company’s repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval.  Unless terminated earlier by resolution of the Board of Directors, the plan will expire when all shares authorized for purchase under the plan have been purchased.  Pursuant to the Company’s ongoing purchase program, the Company purchased 0 and 66 shares for the nine-month periods ended September 30, 2020 and 2019, respectively.  The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and then existing alternative uses for such cash.

Capital Expenditures – Capital expenditures were approximately $2.2 million for the nine-month period ended September 30, 2020. In 2020, the Company has plans for various capital improvement projects, including increased investment in a number of technology and system development initiatives and hardware purchases which are anticipated to be funded via cash flows from operations. All material anticipated capital expenditures are subject to periodic review and revision and may vary depending on a number of factors.

Off-Balance Sheet Arrangements

As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.

In addition, in administering tax-deferred property exchanges, ITEC serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. ITAC serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property held by the Company for the purpose of completing such transactions totaled approximately $179.5 million and $214.6 million as of September 30, 2020 and December 31, 2019, respectively. These exchange deposits are held at third-party financial institutions. Exchange deposits 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 non-title services rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments.

External assets under management of Investors Trust Company are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets.

It is not the general practice of the Company to enter into off-balance sheet arrangements or issue guarantees to third parties. The Company does not have any material source of liquidity or financing that involves off-balance sheet arrangements. Other than items noted above, off-balance sheet arrangements are generally limited to the future payments due under various agreements with third-party service providers.

Recent Accounting Standards

For a description of recent accounting pronouncements, please refer to Note 1 in Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

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Safe Harbor for Forward-Looking Statements

This Quarterly Report on Form 10-Q, as well as information included in future filings by the Company with the Securities and Exchange Commission (the "SEC") and information contained in written material, press releases and oral statements issued by or on behalf of the Company, contains, or may contain, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that reflect management’s current outlook for future periods. These statements may be identified by the use of words such as “plan,” “expect,” “aim,” “believe,” “project,” “anticipate,” “intend,” “estimate,” “should,” “could,” “would” and other expressions that indicate future events and trends. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product and service development, market share position, claims, expenditures, financial results and cash requirements, are forward-looking statements. Without limitation, projected developments in mortgage interest rates and the overall economic environment set forth in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Business Trends and Recent Conditions; COVID-19 Pandemic” constitute forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to a number of risks and uncertainties. Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors, including, but not limited to, the following:

•the impact of COVID-19, or other pandemics;

•changes in interest rates and real estate values;

•changes in general economic, business, and political conditions, including the performance of the financial and real estate markets and the impact of the 2020 U.S. presidential election;

•potential reform of government sponsored entities;

•the level of real estate transaction volumes, the level of mortgage origination volumes (including refinancing), the mix of title insurance between markets with varying real estate values, changes to the insurance requirements of the participants in the secondary mortgage market, and the effect of these factors on the demand for title insurance;

•the possible inadequacy of the provision for claims to cover actual claim losses;

•the incidence of fraud-related losses;

•unanticipated adverse changes in securities markets could result in material losses to the Company's investments;

•significant competition that the Company’s operating subsidiaries face, including the Company’s ability to develop and offer products and services that meet changing industry standards in a timely and cost-effective manner and expansion into new geographic locations;

•the Company’s reliance upon the North Carolina, Texas and Georgia markets for a significant portion of its premiums;

•compliance with government regulation, including pricing regulation, and significant changes to applicable regulations or in their application by regulators;

•the impact of governmental oversight of compliance of the Company's service providers, including the application of financial regulation designed to protect consumers;

•possible downgrades from a rating agency, which could result in a loss of underwriting business;

•the inability of the Company to manage, develop and implement technological advancements and prevent system interruptions or unauthorized system intrusions;

•statutory requirements applicable to the Company’s insurance subsidiaries that require them to maintain minimum levels of capital, surplus and reserves and that restrict the amount of dividends they may pay to the Company without prior regulatory approval;

•the desire to maintain capital above statutory minimum requirements for competitive, marketing and other reasons;

•heightened regulatory scrutiny and investigations of the title insurance industry;

•the Company’s dependence on key management and marketing personnel, the loss of whom could have a material adverse effect on the Company’s business;

•difficulty managing growth, whether organic or through acquisitions;

•unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets;

•policies and procedures for the mitigation of risks may be insufficient to prevent losses;

•the shareholder rights plan could discourage transactions involving actual or potential changes of control; and

•other risks detailed elsewhere in this document and in the Company’s other filings with the SEC.

These and other risks and uncertainties may be described from time to time in the Company's other reports and filings with the SEC. For more details on factors that could affect expectations, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, including under the heading "Risk Factors", as well as the further updated risk factor set forth in Part II, Item 1A of this Quarterly Report. The Company is not under any obligation (and expressly disclaims any such obligation) and does not undertake to update or alter any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. You should consider the possibility that actual results may differ materially from our forward-looking statements.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

For the quarter ended September 30, 2020, there were no material changes in the Company’s market risks as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Item 4.  Controls and Procedures

Disclosure Controls and Procedures

The Company's disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in such reports is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system of controls are met, and no evaluation of controls can provide absolute assurance that the system of controls has operated effectively in all cases. The Company’s disclosure controls and procedures, however, are designed to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

Pursuant to Rule 13a-15(b) under the Exchange Act, an evaluation was performed under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2020 to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

Changes in Internal Control Over Financial Reporting

During the quarter ended September 30, 2020, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

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PART II.   OTHER INFORMATION

Item 1.  Legal Proceedings

See discussion of legal proceedings in Note 7 to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report, which is incorporated by reference into this Part II, Item 1.

Item 1A. Risk Factors

The following updates the risk factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The COVID-19 pandemic has impacted the Company's business, and the duration and extent to which this will impact our future results of operations and financial condition remains uncertain.

The U.S. and other countries are experiencing an outbreak of a novel coronavirus which causes a disease designated as COVID-19 and, in March 2020, the World Health Organization declared it a pandemic. This contagious disease outbreak has continued to spread across the globe, including in U.S. states where the Company conducts business, and is impacting worldwide economic activity and financial markets. The extent to which COVID-19 impacts the Company's future operations will depend on uncertain developments; including the duration and severity of the pandemic, actions taken to contain the spread of the virus, regulatory actions taken as a result of the outbreak and any deterioration in economic conditions. COVID-19 could impact the availability of key Company personnel and cause disruptions to the real estate environment, financial markets or the Company's information technology systems. In addition, this situation is continually changing, and additional impacts may arise that the Company is not aware of currently. This pandemic has already had a negative impact on the value of marketable securities, including those held by the Company, and could continue to do so in future periods. It has also impacted the real estate market and could impair the process for showing homes, purchasing and closing on the sale of homes for the foreseeable future. It is not currently possible to predict the extent that COVID-19 will impact the Company's financial position or results of operation, although it is possible that it could have a material adverse effect on the Company's business.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about purchases by the Company (and all affiliated purchasers), during the quarter ended September 30, 2020, of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act:

	Issuer Purchases of Equity Securities (unrounded)
Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Number of Shares that May Yet Be Purchased Under the Plan (1)
Beginning of period					428,186
July 1 through July 31, 2020	—	$	—	—	428,186
August 1 through August 31, 2020	—	—		—	428,186
September 1 through September 30, 2020	—	—		—	428,186
Total	—	$	—	—	428,186

(1) For the quarter ended September 30, 2020, the Company purchased no shares of the Company’s common stock pursuant to the Company’s ongoing purchase program that was initially announced on June 5, 2000.  On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company’s repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval.  Unless terminated earlier by resolution of the Board of Directors, the plan will expire when all shares authorized for purchase under the plan (as such number may be amended by the Board) have been purchased.  The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and then existing alternative uses for such cash.

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Item 3.     Defaults Upon Senior Securities

None.

Item 4.     Mine Safety Disclosures

Not Applicable.

Item 5.     Other Information

On November 9, 2020, the Company’s Board of Directors (the “Board”) approved amendments to the Company’s Amended and Restated Bylaws (as amended and restated, the “Restated Bylaws”), effective November 9, 2020.

The Restated Bylaws include certain technical, stylistic, and conforming changes, among other things:

•Updating and clarifying provisions relating to the conduct of shareholder meetings, including the means of providing and waiving notice, the posting of shareholder lists, expanding who may preside over such meetings, the role of voting inspectors at the meeting, and the individuals authorized to call a special meeting of shareholders on behalf of the Company; and

•Updating and clarifying provisions related to the operations of the Board, including the term of office for directors who have filled vacancies on the Board, the process for establishing an executive committee of the Board, the method for informal action by the Board, and certain operational flexibility permitted in the event of emergencies.

The Restated Bylaws also enhance the Company’s existing exclusive forum provision, including by (i) clarifying that the provision will not apply to suits brought to enforce any liability or duty created by the Securities Exchange Act of 1934, as amended, or any other claim for which the federal courts have exclusive jurisdiction, (ii) unless the Company consents in writing to the selection of an alternative forum, establishing the federal district courts as the exclusive forum for the resolution of any cause of action against the Company or any director, officer, employee or agent of the Company and arising under the Securities Act of 1933, as amended, (iii) providing that, to the fullest extent permitted by applicable law, any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Company shall be deemed to have notice of and consented to the exclusive forum provision, and (iv) adding a severability clause.

The foregoing description of the amendments in the Restated Bylaws is qualified in its entirety by reference to the full text of the Restated Bylaws, which is filed as Exhibit 3.1 and incorporated by reference herein.

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Item 6.  Exhibits

3.1	Amended and Restated Bylaws, dated November 9, 2020
31(i)	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31(ii)	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document*
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
* - The instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document

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SIGNATURE

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

INVESTORS TITLE COMPANY
By:	/s/ James A. Fine, Jr.
	James A. Fine, Jr., President, Treasurer, Chief
	Financial Officer, Chief Accounting Officer and
	Director (Principal Financial Officer and
	Principal Accounting Officer)

Dated:  November 9, 2020

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EX-3.1

Exhibit 3.1

BYLAWS

OF

INVESTORS TITLE COMPANY

AMENDED AND RESTATED AS OF NOVEMBER 9, 2020

ARTICLE I.

OFFICES

Section 1.    Principal Office: The principal office of the Corporation shall be located at 121 North Columbia Street, Chapel Hill, North Carolina.

Section 2.    Registered Office: The registered office of the Corporation required by law to be maintained in the State of North Carolina may be, but need not be, identical with the principal office.

Section 3.    Other Offices: The Corporation may have offices at such other places, either within or without the State of North Carolina, as the Board of Directors may from time to time determine, or as the affairs of the Corporation may require.

ARTICLE II.

MEETING OF SHAREHOLDERS

Section 1.    Time and Place of Meetings: All meetings of shareholders shall be held at the principal office of the Corporation, or at such other place, either within or without the State of North Carolina, and on such date and at such time as may be determined from time to time by the Board of Directors.

Section 2.    Annual Meetings: The annual meeting of shareholders shall be held within the time period prescribed by applicable law for the election of directors and to transact such other business as may properly be brought before the meeting.

Section 3.    Special Meetings: Special meetings of the shareholders may be called by any of the following: (a) the Chairman of the Board of Directors; (b) the President of the Corporation; (c) the Board of Directors upon the affirmative vote of at least seventy-five percent (75%) of the entire Board of Directors; or (d) the shareholders upon written request of those persons holding of record not less than eighty percent (80%) of the total voting power of the shares entitled to vote thereon.

Section 4.    Notice of Meetings: Written or printed notice stating the date, time and place of the meeting shall be delivered no fewer than 10 nor more than 60 days before the date thereof, either personally, by electronic means, or by mail or private carrier, by or at the direction of the President or the other person calling the meeting, to each shareholder of record entitled to vote at such meeting and to each nonvoting shareholder entitled to notice of the meeting. If the corporation is required by law to give notice of proposed action to nonvoting shareholders and the action is to be taken without a meeting pursuant to Section 10 of this Article II, written notice of such proposed action shall be delivered to such shareholders not less than 10 days before such action is taken. If these forms of personal notice are impracticable as to one or more persons, notice may be communicated to such persons by publishing notice in a newspaper in the county where the Corporation has its principal place of business in North Carolina or by radio, television or other broadcast communication.

If notice is mailed, such notice shall be effective when deposited in the United States mail with postage thereon prepaid and correctly addressed to the shareholder's address shown in the corporation's current record of shareholders.

In the case of an annual meeting, the notice of meeting need not specifically state the business to be transacted thereat unless it is a matter with respect to which specific notice to the shareholders is expressly required by the provisions of the North Carolina Business Corporation Act. In the case of a special meeting, the notice of meeting shall specifically state the purpose or purposes for which the meeting is called.

If an annual or special shareholders’ meeting is adjourned to a different date, time, or place, notice need not be given of the new date, time or place if the new date, time, or place is announced at the meeting before the adjournment. If a new record date for the adjourned meeting is or must be fixed under the provisions of the North Carolina Business Corporation Act, notice of the adjourned meeting must be given to persons who are shareholders as of the new record date.

The record date for determining the shareholders entitled to notice of and to vote at an annual or special meeting shall be fixed as provided in Section 3 of Article VII.

Section 5.    Waiver of Notice: A shareholder may waive notice of any meeting either before or after such meeting. Such waiver shall be in writing, signed by the shareholder, and filed with the minutes or corporate records. A shareholder's attendance at a meeting in person or by proxy: (i) waives objection to lack of notice or defective notice of the meeting, unless the shareholder or his proxy at the beginning of the meeting objects to holding the meeting or transacting business at the meeting; and (ii) waives objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder or his proxy objects to considering the matter before it is voted upon.

Section 6.    Voting Lists: Commencing two business days after notice of a meeting of shareholders is given and continuing through such meeting, the secretary of the Corporation shall maintain at the principal office of the Corporation, or at a place identified in the meeting notice in the city where the meeting will be held, an alphabetical list of the shareholders entitled to vote at such meeting, arranged by voting group, with the address of and number of shares held by each. This list shall be subject to inspection by any shareholder or his agent or attorney at any time during usual business hours and, subject to the requirements of North Carolina General Statute 55-16-02(c), may be copied at the shareholder's expense. This list shall be made available at the meeting and any shareholder, or his representative, may inspect the list at any time during the meeting or any adjournment thereof.

Section 7.    Quorum; Adjournment; Postponement:

(a)    The holders of a majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum at meetings of shareholders. If there is no quorum at the opening of a meeting of shareholders, such meeting may be adjourned or recessed from time to time by the Presiding Officer (as defined in Section 8(a) of this Article II) or by the vote of a majority of the shares voting on the motion to adjourn or recess; and, at any adjourned or recessed meeting at which a quorum is present, any business may be transacted which might have been transacted at the original meeting.

The shareholders at a meeting at which a quorum is present may continue to do business until adjournment or recess, notwithstanding the withdrawal of enough shareholders to leave less than a quorum.

(b)    Whether or not a quorum is present, the Presiding Officer may adjourn or recess any meeting of shareholders at any time and for any reason to reconvene at a different date, time or place, consistent with the notice provisions above. At the adjourned or recessed meeting, the Corporation may transact any business which might have been transacted at the original meeting.

(c)    The Board of Directors may, at any time prior to the holding of a meeting of shareholders, and for any reason, cancel, postpone or reschedule such meeting upon public notice given prior to the time previously scheduled for such meeting of shareholders. The meeting may be postponed or rescheduled to such time and place as is specified in the notice of postponement or rescheduling of such meeting, which notice shall be given in accordance with Section 4 of this Article II.

Section 8.    Manner of Conducting Meetings:

(a)    At each meeting of shareholders, the Chairman, or in the Chairman’s absence, the director or officer designated by the Chairman or the Board of Directors, shall act as the “Presiding Officer.” The Secretary shall act as secretary of the meeting, but in the absence of the Secretary, the Presiding Officer may appoint any person to act as secretary of the meeting.

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(b)    The date and time of the opening and the closing of the polls for each matter upon which the shareholders will vote at a meeting shall be announced at the meeting by the Presiding Officer. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of shareholders as it shall deem appropriate and which do not conflict with applicable provisions of law, the articles of incorporation of the Corporation or any amendment thereto and these bylaws. Except to the extent inconsistent with applicable provisions of law or this Corporation’s articles of incorporation, these bylaws and such rules and regulations as adopted by the Board of Directors, the Presiding Officer may prescribe such rules, regulations and procedures and do all such acts as, in the judgment of such Presiding Officer, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the Presiding Officer, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to shareholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the Presiding Officer shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; (v) restrictions on the use of audio or video recording devices at the meeting and (vi) limitations on the time allotted to questions or comments by participants.

Section 9.    Voting of Shares: Each outstanding share having voting rights shall be entitled to one vote on each matter submitted to a vote at a meeting of shareholders.

Except in the election of directors, the vote of a majority of the shares voted on any matter at a meeting of shareholders at which a quorum is present shall be the act of the shareholders on that matter, unless the vote of a greater number is required by law or by the articles of incorporation or bylaws of this Corporation.

Either the Board of Directors or the Chairman of the meeting may appoint one or more voting inspectors, each of whom shall take an oath to execute his duties impartially and to the best of his or her ability. The voting inspectors shall, by majority vote, resolve all questions regarding voting of shares, including the number of shares outstanding, the voting power of each, the shares represented at the meeting, the qualification of voters, the validity of proxies, the existence of a quorum as to any voting group, and the acceptance, rejection and tabulation of votes.

Section 10.    Informal Action by Shareholders: Any action which may be taken at a meeting of the shareholders may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the persons who would be entitled to vote upon such action at a meeting, and delivered to the Corporation for inclusion in the minutes or filing with the corporate records.

Section 11.    Advance Notice of Shareholder Nominations and Proposals:

(a)    At any meeting of the shareholders, no nomination for election to the Board of Directors or other business shall be brought before the meeting, or considered or acted upon at the meeting, unless such nomination, or the proposal for such other business, as the case may be, either (i) was specifically set forth in the notice of meeting given by the Corporation or by the other person or persons duly calling the meeting (or was referred to in such notice of meeting and specifically set forth in an accompanying proxy statement, information statement or other document), (ii) is otherwise made by or at the direction of the Board of Directors or a duly authorized committee thereof, or (iii) is made by or on behalf of a shareholder of the Corporation who was a shareholder of record at the time the notice provided for in this Article II. Section 11 is received by the Secretary and at the time of the meeting, who is entitled to vote at the meeting and who complies with the requirements of this Section 11 with respect to such nomination or proposal.

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(b)    For nominations or other business to be properly brought before a meeting by a shareholder in compliance with the requirements of this Section 11, the shareholder must have given timely notice in writing to the Secretary of the Corporation of such shareholder’s intent to make a nomination or to bring any other business before the meeting, which notice shall include the applicable information required by subsection (c) below. In the case of an annual meeting, such notice, to be timely, shall be received by the Secretary at the principal executive offices of the Corporation not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the actual date of the annual meeting as to which the notice is provided is more than 30 days before or more than 60 days after such anniversary date, notice by the shareholder must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or, if the first public announcement of the date of such annual meeting is less than 90 days prior to the date of such annual meeting, the tenth day following the day on which public announcement of the date of such meeting is first made by the Corporation. In the case of a special meeting at which directors are to be elected, the shareholder may nominate a person or persons for election as director if the shareholder’s notice is so delivered to the Secretary of the Corporation not earlier than the earlier of the date on which a public announcement of the date of such meeting is first made by the Corporation or the date on which notice of the special meeting is first sent to shareholders, and not later than the close of business on the 15th day following the earlier of such date of first public announcement or the date on which notice of the special meeting was first sent unless the date of such special meeting is more than 105 days after the earlier of such dates, in which case such notice may be delivered no later than the 90th day preceding the date of such special meeting. In the case of a special meeting at which directors are not to be elected, the only business that may be conducted at such a meeting is that within the purpose or purposes described in the meeting notice, and consequently a shareholder shall not have the right to make a proposal pursuant to clause (iii) of subsection (a) above. In no event shall any adjournment, recess or postponement of any meeting of shareholders or the announcement thereof commence a new time period for the giving of a shareholder’s notice as described above.

(c)    The notice by a shareholder pursuant to subsection (b) above shall set forth the following information, as applicable:

(i)    as to the shareholder giving the notice and the Shareholder Associated Person (as defined in subsection (j) below, if any, on whose behalf the nomination or proposal is made (including any affiliate or associate) of such shareholder or Shareholder Associated Person): (A) the name and address of such shareholder (as they appear on the Corporation’s books) and of any such Shareholder Associated Person; (B) a representation that the shareholder is a holder of record of stock entitled to vote at such meeting, will continue to be a holder of record of stock entitled to vote at such meeting through the date of such meeting and intends to appear in person or by proxy at the meeting to make the nomination, proposal or other business specified in the notice; (C) the class or series and number of shares of capital stock of the Corporation which are, directly or indirectly, held of record or are beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by such shareholder or by any such Shareholder Associated Person (except that such shareholder and any such Shareholder Associated Person shall in all events be deemed to beneficially own any shares of any class or series of the Corporation as to which such shareholder or Shareholder Associated Person has a right to acquire beneficial ownership at any time in the future); (D) a complete and accurate description of any agreement, arrangement or understanding between or among such shareholder and any such Shareholder Associated Person, any of their respective affiliates or associates, and any other person or persons (including their names) in connection with the proposal of such nomination, proposal or other business; (E) a complete and accurate description and the amounts of any options, warrants, convertible securities, stock appreciation rights or other rights with an exercise or conversion privilege or a settlement payment or mechanism at a price related to that of any class or series of shares of the Corporation or with a value derived in whole or in part from the price or value, or volatility of prices or values, of shares of any class or series of the Corporation, whether or not such instrument or right shall be subject to settlement in the underlying shares of the Corporation or otherwise and whether or not the shareholder or Shareholder Associated Person may have entered into any hedge or other transaction to mitigate the economic effect of such rights, directly or indirectly owned beneficially by such shareholder or Shareholder Associated Person, and any other direct or indirect opportunity of such shareholder or Shareholder Associated Person, through a derivative instrument, swap, or other transaction, series of transactions, or arrangement, to profit or share in any profit derived from any increase or decrease in the price or value of the shares of the Corporation (“Derivative Rights”); (F) a complete and accurate description of any rights to dividends on the shares of any class or series of the Corporation owned beneficially by such shareholder or such Shareholder Associated Person that are separated or separable from the underlying shares of the Corporation (G) a complete and accurate description of any proxy, contract, event, arrangement, understanding, or relationship pursuant to which such shareholder and such Shareholder Associated Person, if any, has a right to vote any shares or any other security of the Corporation; (H) a complete and accurate description of any short interest of such shareholder or Shareholder Associated Person in any shares or other security of the Corporation (for purposes of these bylaws, a person shall be deemed to have a short interest in a security if such person directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit derived from any decrease in the value of the subject security); (I) a complete and accurate description of any proportionate interest in shares of the Corporation or Derivative Rights held, directly or indirectly, by a general or limited partnership in which such shareholder or such Shareholder Associated Person is a general partner or, directly or indirectly, beneficially owns an interest in a general partner; and (J) a complete and accurate description of any performance-related fees that such shareholder or Shareholder Associated Person is entitled to receive, either directly or indirectly, based on any increase or decrease in the value of shares of the Corporation or Derivative Rights; (K) the name of each person with whom such shareholder, or Shareholder Associated Person, or nominee has any agreement, arrangement or

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understanding (whether written or oral) (1) for the purposes of acquiring, holding, voting (except pursuant to a revocable proxy given to such person in response to a public proxy made generally by such person to all holders of shares of the Corporation) or disposing of any shares of capital stock of the Corporation, (2) to cooperate in obtaining, changing or influencing the control of the Corporation (except independent financial, legal and other advisors acting in the ordinary course of their respective businesses), (3) with the effect or intent of increasing or decreasing the voting power of, or that contemplates any person voting together with, any such shareholder or Shareholder Associated Person with respect to any shares of the capital stock of the Corporation, any business proposed by a shareholder and a description of each such agreement, arrangement or understanding; (L) a list of all transactions by such shareholder and any Shareholder Associated Person involving any securities of the Corporation or any Derivative Rights within the six-month period prior to the date of the notice; (M) to the extent not disclosed in clause E above, the principal amount of any indebtedness of the Corporation or any of its subsidiaries beneficially owned by such shareholder or by any such Shareholder Associated Person, together with the title of the instrument under which such indebtedness was issued and a description of any Derivative Right entered into by or on behalf of such shareholder or such Shareholder Associated Person relating to the value or payment of any indebtedness of the Corporation or any such subsidiary; (N) any other information relating to such shareholder and any Shareholder Associated Person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the proposal pursuant to Regulation 14A of the Exchange Act; and (O) a representation as to whether such shareholder or any such Shareholder Associated Person intends or is part of a group that intends to (1) deliver a proxy statement and/or form of proxy to holders of at least the percentage of the voting power of the Corporation’s outstanding capital stock required to approve or adopt the proposal or to elect each such nominee and/or (2) otherwise to solicit proxies from shareholders in support of such proposal or nomination;

(ii)    as to each person whom the shareholder proposes to nominate for election or reelection as a director: (A) the name, age, business address and residence address of such person; (B) the principal occupation or employment of such person (present and for the past five (5) years); (C) the class or series and number of shares of capital stock of the Corporation which are owned beneficially and of record by such person; (D) a complete and accurate description of all arrangements or understandings between or among any of the shareholder, any Shareholder Associated Person, each nominee, and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the shareholder; (E) all information regarding each nominee that would be required to be obtained or disclosed in solicitations of proxies for election of directors in an election contest pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”), including without limitation such person’s written consent to being named as a nominee and to serving as a director, if elected; (F) a complete and accurate description of all direct and indirect compensation and other material monetary agreements, arrangements and undertakings during the past three years, and other material relationships, between such shareholder and any Shareholder Associated Person, if any, on the one hand, and each proposed nominee, and his or her respective affiliates and associates or others acting in concert with such nominee on the other hand, including, without limitation all information that would be required to be disclosed pursuant to Item 404 promulgated under Regulation S-K if such shareholder or Shareholder Associated Person were the “registrant” pursuant to Regulation S-K of the U.S. Securities and Exchange Commission (the “Commission”) and such proposed nominee were a director or executive officer of such registrant; (G) a completed and signed questionnaire and written representation and agreement, each as required by Article II.Section 11(i); and (H) an undertaking by each proposed nominee to promptly furnish such information (1) as may reasonably be requested by the Corporation to determine the eligibility of such proposed nominee to serve as an independent director of the Corporation in accordance with the Corporation’s internal governance guidelines or (2) that could be material to a reasonable shareholder’s understanding of the independence, or lack thereof, or such nominee, and any other information of the type requested from and provided by persons nominated by the Board of Directors or a committee thereof; and

(iii)    as to any other business (other than the nomination of directors) that the shareholder proposes to bring before the meeting, (A) a brief description of the business desired to be brought before the meeting; (B) the text of the proposal or business (including the complete text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these bylaws, the text of the proposed amendment); (C) a complete and accurate description of all agreements, arrangements and understandings between or among such shareholder and such Shareholder Associated Person, if any, and any other person or persons (including their names and addresses) in connection with the proposal of such business; (D) the reasons for conducting such business at the meeting; and (E) a complete and accurate description of any material interest in such business of such shareholder and the Shareholder Associated Person, if any, on whose behalf the proposal is made.

(d)    A shareholder providing notice of business or any nomination proposed to be brought before a meeting shall further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 11 shall be true and correct (i) as of the record date for the meeting and (ii) as of the date that is ten (10) business days prior to the meeting or any adjournment, recess, rescheduling or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the secretary of the Corporation not later than five (5) business days after the record date for the meeting (in the case of the update and supplement required to be made as of the record date) and not later than seven (7) business days prior to the date for the meeting, if practicable (or, if not practicable, on the first practicable date prior to) or any adjournment, recess, rescheduling or postponement thereof (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment, recess, rescheduling or postponement thereof).

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(e)    Except as otherwise required by applicable law, the Presiding Officer at any meeting of the shareholders shall have the power and duty to determine whether any nomination or proposal made by or on behalf of a shareholder is made in compliance with the requirements set forth in this Section 11 and applicable law and, if in accordance with the Presiding Officer’s determination any proposed nomination or proposal is not in compliance with this Section 11 or applicable law, to declare that such defective nomination or proposal is out of order or that a matter or business was not properly brought before the meeting and shall not be considered or acted upon. Notwithstanding the foregoing provisions of this Section 11, unless otherwise required by applicable law, if the shareholder (or a qualified representative of the shareholder) does not appear at the annual or special meeting of shareholders of the Corporation to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this Article II.Section 11(e), to be considered a qualified representative of the shareholder, a person must be a duly authorized officer, manager or partner of such shareholder or must be authorized by a writing executed by such shareholder or an electronic transmission delivered by such shareholder to act for such shareholder as proxy at the meeting of shareholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of shareholders. This Section 11 has been adopted to provide shareholders with the reasonable opportunity to bring nominations or other business before meetings of the shareholders, consistent with the interests of the Corporation in promoting the orderly, deliberate and informed presentation, consideration and conduct of business at meetings of the shareholders of the Corporation, and shall be construed accordingly.

(f)    Nothing in this Section 11 shall impair, or be affected by, any right of any shareholder to request that a proposal be included in the Corporation’s notice of meeting and proxy statement to the extent that such right is provided under the Exchange Act, including without limitation Rule 14a-8 under the Exchange Act or any other rules then applicable; but nothing in this Section 11 is intended to in any way enlarge any such right of a shareholder thereunder or to in any way limit the Corporation’s right, if any, thereunder to exclude any such proposal from its notice of meeting or proxy statement, it being intended that the provisions of this Section 11 operate independently of the operation of the Exchange Act thereunder.

(g)    Nothing in this Section 11 shall confer upon any shareholder the right to bring before any meeting of shareholders any proposal or other matter that, under applicable law, may be brought before such meeting only by action of the Board of Directors, or that otherwise may not be properly brought before a meeting of shareholders.

(h)    Nothing in this Section 11 shall affect any right of any shareholder to make recommendations to the Board of Directors or any committee thereof as to nominations for directors or any other matter in accordance with policies and procedures therefor from time to time adopted by the Board of Directors or any committee thereof.

(i)    To be eligible to be a nominee for election or reelection as a director of the Corporation, a proposed nominee must deliver (in accordance with the time periods prescribed for delivery of notice under Section 11 of these bylaws and applicable law) to the secretary of the Corporation at the principal executive offices of the Corporation a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the secretary of the Corporation upon written request) and a written representation and agreement (in the form provided by the secretary of the Corporation upon written request) that such person (i) is not and will not become a party to (A) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Corporation or (B) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Corporation, with such person’s fiduciary duties under applicable law, (ii) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation that has not been disclosed to the Corporation, and (iii) in such person’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and other guidelines of the Corporation.

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(j)    As used in this Section 11, (i) “Shareholder Associated Person” shall mean, with respect to a shareholder, (A) any beneficial owner of shares of stock of the Corporation, including interests held by members of such shareholder’s immediate family sharing the same household, on whose behalf any proposal or nomination is made by such shareholder; (B) any affiliates or associates of such shareholder or any beneficial owner described in clause (A) hereof; and (C) each other person with whom any of the persons described in the foregoing clauses (A) and (B) either is acting in concert with such shareholder with respect to the Corporation or has any agreement, arrangement or understanding (whether written or oral) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy given to such person in response to a public proxy solicitation made generally by such person to all shareholders entitled to vote at the meeting) or disposing of any capital stock of the Corporation or to cooperate in obtaining, changing or influencing the control of the Corporation (except independent financial, legal and other advisors acting in the ordinary course of their respective businesses); (ii) the term “person” includes an entity as well as an individual; (iii) “public announcement” shall mean disclosure (A) in a press release reported by the Dow Jones News Service, the Associated Press or any comparable national news service, (B) in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act or (C) in a notice of meeting (or any supplement) pursuant to Article II, Section 4 of these bylaws and (iv) “affiliate” and “associate” shall have the respective meanings set forth in Rule 12b-2 of the Exchange Act (or any successor provision thereto).

ARTICLE III.

DIRECTORS

Section 1.    General Powers: All corporate powers shall be exercised by or under the authority of, and the business and affairs of the Corporation shall be managed by or under the direction of, the Board of Directors or, subject to the authority and direction of the full Board of Directors, by such Executive Committees as the Board of Directors may establish pursuant to these bylaws.

Section 2.    Number, Term and Qualifications: The number of directors of the Corporation shall not be less than nine nor more than twelve, as determined from time to time by the shareholders. The Board of Directors shall be divided into three classes, having staggered terms of three years each. Each director shall hold office until his death, resignation, retirement, removal, disqualification, or his successor is elected and qualified. Directors need not be residents of the State of North Carolina or shareholders of the Corporation.

Section 3.    Election of Directors: Except as provided in Section 5 of this Article III, the directors shall be elected at the annual meeting of shareholders; and those persons who receive the highest number of votes shall be deemed to have been elected.

Section 4.    Removal: Neither the entire Board of Directors nor any individual director of the corporation shall be removed from office by shareholders, with or without cause, unless a meeting of the shareholders of the corporation is held to act thereon and there is obtained the approval of a percentage of all votes entitled to be cast thereon of at least eighty percent (80%); provided, however, that if any such removal shall have been recommended to the shareholders of the corporation by a resolution of the Board of Directors adopted by the affirmative vote of seventy-five percent (75%) of the entire Board of Directors, then such removal may be effected if a meeting of the shareholders of the corporation is held to act thereon and there is obtained the approval of a percentage of all votes entitled to be cast thereon equal to a majority of all votes entitled to be cast thereon. provided, further, that any such removal may be effected without a meeting or vote of the shareholders of the corporation if a resolution determining that cause exists for such removal shall be adopted by the affirmative vote of seventy-five percent (75%) of the entire Board of Directors.

Section 5.    Vacancies: Unless otherwise provided by the articles of incorporation of the Corporation, any newly created directorship or any vacancy occurring in the Board of Directors for any cause may be filled either by the shareholders or by the Board of Directors, and if the directors remaining in office constitute fewer than a quorum of the Board of Directors, the vacancy may be filled by the affirmative vote of a majority of the directors remaining in office or by the sole remaining director. Each director so elected shall hold office until the next shareholders’ meeting at which directors are elected, subject to such director’s earlier death, resignation, disqualification or removal.

Section 6.    Chairman: There may be a Chairman of the Board of Directors elected by the directors from their number at any meeting of the Board of Directors. The Chairman shall preside at all meetings of the Board of Directors and perform such other duties as may be directed by the Board of Directors.

Section 7.    Compensation: The Board of Directors may compensate directors for their services.

Section 8.    Executive Committee: The Board of Directors may, by resolution adopted by a majority of the number of directors in office at the time of such resolution, designate two or more directors to constitute an Executive Committee, which committee, to the extent provided in such resolution and subject to the authority and direction of the full Board of Directors, shall have and may exercise all of the authority of the Board of Directors in the management of the Corporation.

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Section 9.    Confidentiality: Each director shall hold all Confidential Information (as defined below) in the strictest confidence and shall take all appropriate measures to ensure that no other person shall have access to the Confidential Information. No director shall disclose any Confidential Information to any person outside the Corporation, either during or after his or her service as a director, except with authorization of the Board of Directors or as may be required by law. For the avoidance of doubt, the foregoing shall also apply to any director who serves on the Board of Directors as the designee or nominee of a shareholder of the Corporation, and such director shall not disclose any Confidential Information to such shareholder or any of its officers, directors, managers, members, partners, employees, attorneys, accountants, advisors, agents, consultants or other representatives without the approval of the Board of Directors. “Confidential Information” shall mean all non-public information (whether or not material to the Corporation) entrusted to or obtained by a director by reason of his or her position as a director of the Corporation.

Section 10.    Indemnification: Any person who at any time serves or has served as a director of the Corporation, or who, while serving as a director of the Corporation, serves or has served as an officer, employee or agent of the Corporation or, at the request of the Corporation, as a director, officer, partner, trustee, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, or as a trustee or administrator under an employee benefit plan, shall have a right to be indemnified by the Corporation to the fullest extent permitted by law against (a) all expenses, including but not limited to attorneys’ fees, the cost of any investigation, experts and similar expenses incurred by him in connection with any threatened, pending, or completed civil, criminal, administrative, investigative, or arbitrative action, suit or proceeding (and any appeal therein), whether or not brought by or on behalf of the Corporation, seeking to hold him liable by reason of the fact that he is or was acting in such capacity, and (b) all payments made by him in satisfaction of any judgment, money decree, fine (including an excise tax assessed with respect to an employee benefit plan), penalty, or settlement for which he may have become liable in any such action, suit or proceeding.

The Board of Directors of the Corporation shall take all such action as may be necessary and appropriate to authorize the Corporation to pay the indemnification required by this bylaw.

To the fullest extent from time to time permitted by law, the Corporation shall pay as incurred all the expenses, including but not limited to attorneys’ fees and expenses of any person indemnified hereunder, incurred in defending any action, proceeding, suit or investigation and in advance of the final disposition of such action, proceeding, suit or investigation.

Any person who at any time after the adoption of this bylaw serves or has served in the aforesaid capacity for or on behalf of the Corporation shall be deemed to be doing or to have done so in reliance upon, and as consideration for, the right of indemnification provided herein. Such right shall inure to the benefit of the legal representatives of any such person and shall not be exclusive of any other rights to which such person may be entitled apart from the provision of this bylaw.

ARTICLE IV.

MEETING OF DIRECTORS

Section 1.    Regular Meetings: A regular meeting of the Board of Directors shall be held immediately after, and at the same place as, the annual meeting of shareholders. In addition, the Board of Directors may provide, by resolution, the time and place, either within or without the State of North Carolina, for the holding of additional regular meetings.

Section 2.    Special Meetings: Special Meetings of the Board of Directors may be called by or at the request of the Chief Executive Officer, Chairman of the Board of Directors, President or any two directors. Such meetings may be held either within or without the State of North Carolina.

Section 3.    Notice of Meetings: Regular meetings of the Board of Directors may be held without notice.

The person or persons calling a special meeting of the Board of Directors shall, at least two days before the meeting, give notice thereof by the usual means of communication. Such notice need not specify the purpose for which the meeting is called.

Section 4.    Waiver of Notice: A director may waive any required notice of a meeting before or after the date and time stated in the notice in a writing that is signed by the director and filed with the minutes or corporate records. Additionally, attendance at or participation by a director at a meeting shall constitute a waiver of notice of such meeting, except where the director at the beginning of the meeting (or promptly upon the director’s arrival) objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.

Section 5.    Quorum: A majority of the directors in office immediately before the meeting begins shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.

Section 6.    Manner of Acting: Manner of Acting. Unless the articles of incorporation or bylaws of the Corporation require the vote of a greater number of directors, the affirmative vote of the majority of the directors present at a meeting at which a quorum is present when the vote is taken shall be the act of the Board of Directors.

8

Section 7.    Informal Action by Directors: Action taken by all of the directors without a meeting is nevertheless action by the Board of Directors if it is evidenced by one or more unrevoked written consents signed by each director before or after such action, describing the action taken, and included in the minutes or filed with the corporate records. A director’s consent to action taken without a meeting or revocation thereof may be in electronic form and delivered by electronic means. Such action is effective when the last director provides written consent, unless the consent specifies a different effective date.

Section 8.    Bonds: The Board of Directors may by resolution require any or all officers, agents and employees of the Corporation to give bond to the Corporation, with sufficient sureties, conditioned on the faithful performance of the duties of their respective offices or positions, and to comply with such other conditions as may from time to time be required by the Board of Directors.

ARTICLE V.

OFFICERS

Section 1.    Number: The officers of the Corporation shall consist of a Chief Executive Officer, a President, a Secretary, a Treasurer, and such Vice-Presidents, Assistant Secretaries, Assistant Treasurers and other officers as the Board of Directors may from time to time elect. Any two or more offices may be held by the same person, except the offices of President and Secretary.

Section 2.    Election and Term: The officers of the Corporation shall be elected by the Board of Directors. Such elections may be held at any regular or special meeting of the Board of Directors. Each officer shall hold office until his death, resignation, retirement, removal, disqualification, or his successor is elected and qualified.

Section 3.    Removal: Any officer or agent elected or appointed by the Board of Directors may be removed by the Board of Directors with or without cause; but such removal shall be without prejudice to the contract rights, if any, of the person so removed.

Section 4.    Compensation: The compensation of all officers of the Corporation shall be fixed by the Board of Directors.

Section 5.    Chief Executive Officer: The Chief Executive Officer shall be the principal executive and administrative officer of the Corporation and, subject to the control of the Board of Directors, shall supervise and control the management of the Corporation in accordance with these bylaws.

He shall, when present, preside at all meetings of shareholders. At the request of the Chairman of the Board, or in case of his absence or inability to act, the Chief Executive Officer may act in his place. He shall sign, with any other proper officer, any deeds, mortgages, bonds, contracts, or other instruments which may be lawfully executed on behalf of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be delegated by the Board of Directors to some other officer or agent. The Chief Executive Officer shall perform all duties incident to his office and such other duties as may be prescribed by the Board of Directors from time to time.

Section 6.    President: The President shall be a principal administrative officer of the Corporation and, subject to the control of the Chief Executive Officer, shall assist the Chief Executive Officer in supervising and controlling the management of the Corporation in accordance with these bylaws.

At the request of the Chief Executive Officer, or in case of his absence or inability to act, the President may act in his place. Furthermore, at the request of the Chairman of the Board, or in case of the absence or inability to act of both the Chairman of the Board and the Chief Executive Officer, the President may act in the Chairman's place. He shall sign, with any other proper officer, certificates for shares of the Corporation and any deeds, mortgages, bonds, contracts, or other instruments which may be lawfully executed on behalf of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be delegated by the Board of Directors to some other officer or agent. The President shall perform all duties incident to his office and such other duties as may be prescribed by the Board of Directors from time to time.

Section 7.    Vice-Presidents: The Vice-Presidents in the order of their election, unless otherwise determined by the Board of Directors, shall, in the absence or disability of the President, perform the duties and exercise the powers of that office, subject to the restrictions applicable to such office. In addition, they shall perform such other duties and have such other powers as the Board of Directors shall prescribe.

9

Section 8.    Secretary: The Secretary shall keep accurate records of the acts and proceedings of all meetings of shareholders and directors. He shall give all notices required by law and by these bylaws. He shall have general charge of the corporate books and records and of the corporate seal, and he shall affix the corporate seal to any lawfully executed instrument requiring it. He shall have general charge of the stock transfer books of the Corporation and shall keep, at the registered or principal office of the Corporation, a record of shareholders showing the name and address of each shareholder and the number and class of the shares held by each. He shall sign such instruments as may require his signature, and, in general, shall perform all duties incident to the office of Secretary and such other duties as may be assigned to him from time to time by the Chief Executive Officer, President or the Board of Directors.

Section 9.    Treasurer: The Treasurer shall have custody of all funds and securities belonging to the Corporation and shall receive, deposit or disburse the same under the direction of the Board of Directors. He shall keep full and accurate accounts of the finances of the Corporation in books especially provided for that purpose; and he shall cause a true statement of its assets and liabilities as of the close of each fiscal year and of the results of its operations and of changes in surplus for such fiscal year, all in reasonable detail, including particulars as to convertible securities then outstanding, to be made and filed at the registered or principal office of the Corporation within four months after the end of such fiscal year. The statement so filed shall be kept available for inspection by any shareholder for a period of ten years; and the Treasurer shall mail or otherwise deliver a copy of the latest such statement to any shareholder upon his written request thereof. The Treasurer shall, in general perform all duties incident to his office and such other duties as may be assigned to him from time to time by the Chief Executive Officer, President or the Board of Directors.

Section 10.    Assistant Secretaries and Treasurers: The Assistant Secretaries and Assistant Treasurers shall, in the absence or disability of the Secretary or the Treasurer, respectively, perform the duties and exercise the powers of those offices, and they shall, in general, perform such other duties as shall be assigned to them by the Secretary or the Treasurer, respectively, or by the Chief Executive Officer, President or the Board of Directors.

ARTICLE VI.

CONTRACTS, LOANS AND DEPOSITS

Section 1.    Contracts: The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument on behalf of the Corporation, and such authority may be general or confined to specific instances.

Section 2.    Loans: No loans to or from the Corporation shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors. Such authority may be general or confined to specific instances.

Section 3.    Checks and Drafts: All checks, drafts or other orders for the payment of money issued in the name of the Corporation shall be signed by such officer or officers, agent or agents of the Corporation and in such manner as shall from time to time be determined by resolution of the Board of Directors.

Section 4.    Deposits: All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such depositories as the Board of Directors shall direct.

ARTICLE VII.

SHARES AND THEIR TRANSFER

Section 1.    Certificates for Shares; Uncertificated Shares: Shares of the capital stock of the Corporation may be certificated or uncertificated, as provided under the North Carolina Business Corporation Act. Certificates representing shares of the Corporation shall be issued in such form as the Board of Directors shall determine and shall be signed by the President or any Vice-President and the Secretary, Assistant Secretary, Treasurer or Assistant Treasurer. At a minimum, each certificate shall set forth the name of the Corporation, that the Corporation is organized under the laws of the State of North Carolina, the name of the shareholder and the number and class (and the designation of the series, if any) of the shares represented. Such certificates shall be consecutively numbered or otherwise identified; and the name and address of the persons, corporations, firms or organizations to whom they are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the Corporation.

Within a reasonable time after the issue or transfer of shares without certificates, the Corporation shall send the shareholder a written statement that shall set forth the name of the Corporation, that the Corporation is organized under the laws of the State of North Carolina, the name of the shareholder and the number and class (and the designation of the series, if any) of the shares represented.

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Section 2.    Transfer of Shares: Transfers of certificated shares shall be made on the stock transfer books of the Corporation only upon surrender of the certificates for the shares sought to be transferred by the record holder thereof or by his duly authorized agent, transferee or legal representative. All certificates surrendered for transfer shall be cancelled before new certificates or uncertificated shares for the transferred shares shall be issued.

Upon the receipt of proper transfer instructions from the registered owner of uncertificated shares, such uncertificated shares shall be cancelled, new equivalent uncertificated shares or certificated shares shall be issued to the shareholder entitled thereto and the transaction shall be recorded upon the stock transfer books of the Corporation.

Section 3.    Fixing Record Date: For the purpose of determining the shareholders entitled to notice of a meeting of shareholders, to demand a special meeting, to vote, to take any other action, or to receive a dividend with respect to their shares, the Board of Directors may fix in advance a date as the record date for any such determination of shareholders. Such record date fixed by the Board of Directors under this Section 3 shall not be more than 70 days before the meeting or action requiring a determination of shareholders.

If no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to a dividend, the close of the business day before the first notice is delivered to shareholders or the date on which the Board of Directors authorizes the dividend, as the case may be, shall be the record date for such determination of shareholders.

When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this Section 3, such determination shall apply to any adjournment, recess or postponement thereof unless the Board of Directors fixes a new record date, which it must do if the meeting is adjourned, recessed or postponed to a date more than 120 days after the date fixed for the original meeting.

Section 4.    Lost Certificates: The Board of Directors may authorize the issuance of a new share certificate or uncertificated shares in place of a certificate claimed to have been lost or destroyed, upon receipt of an affidavit of such fact from the person claiming the loss or destruction. When authorizing such issuance of a new certificate or uncertificated shares, the Board of Directors may require the claimant to give the Corporation a bond in such sum as it may direct to indemnify the Corporation against loss from any claim with respect to the certificate claimed to have been lost or destroyed; or the Board of Directors may, by resolution reciting that the circumstances justify such action, authorize the issuance of the new certificate or uncertificated shares without requiring such a bond.

ARTICLE VIII.

GENERAL PROVISIONS

Section 1.    Dividends: The Board of Directors may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and by its articles of incorporation.

Section 2.    Seal: The corporate seal of the Corporation shall consist of two concentric circles between which is the name of the Corporation and in the center of which is inscribed SEAL; and such seal, as impressed on the margin hereof, is hereby adopted as the corporate seal of the Corporation.

Section 3.    Emergencies: If the Board of Directors cannot readily be assembled because of some catastrophic event (an “Emergency”), the Board of Directors may (i) modify lines of succession to accommodate the incapacity of any director, officer, employee, or agent; and (ii) relocate the principal office or designate alternative principal offices, or authorize the officers to do so. During an Emergency: (i) notice of a meeting of the Board of Directors need be given only to those directors whom it is practicable to reach and may be given in any practicable manner, including by publication and radio; and (ii) one or more officers present at a meeting of the Board of Directors may be deemed to be directors for the meeting, in order of rank and within the same rank in order of seniority, as necessary to achieve a quorum.

Section 4.    Gender Neutrality: The terms “he,” “him,” and “his,” where used in these bylaws, shall refer to both the masculine and feminine genders, as may be appropriate.

Section 5.    Fiscal Year: Unless otherwise ordered by the Board of Directors, the fiscal year of the Corporation shall be from January 1 to December 31.

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Section 6.    Severability: Whenever possible, each provision or portion of any provision of these bylaws will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of these bylaws is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such provision or portion of any provision shall be severable and the invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and these bylaws will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

Section 7.    Exclusive Forum:

(a)    To the fullest extent permitted by law, and unless the Corporation consents in writing to the selection of an alternative forum, the state courts of North Carolina in and for Orange County, North Carolina, subject to designation or assignment to the North Carolina Business Court (or, if no state court located within the State of North Carolina has jurisdiction, the United States District Court for the Middle District of North Carolina). shall be the sole and exclusive forum for: (i) any derivative action or proceeding brought in the name or right of the Corporation or on its behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the shareholders of the Corporation, (iii) any action asserting a claim arising pursuant to any provision of the North Carolina Business Corporation Act, the Corporation’s articles of incorporation or these bylaws (as each may be amended from time to time), (iv) any action to interpret, apply, enforce or determine the validity of the Corporation’s articles of incorporation or these bylaws, or (v) any action asserting a claim governed by the internal affairs doctrine, including, without limitation, any action to interpret, apply, enforce or determine the validity of the Corporation’s articles of incorporation or these bylaws (each as may be amended from time to time) (collectively, the “Actions”).

(b)    Notwithstanding the foregoing, (i) the provisions of Section 7 of this Article VIII will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction, and (ii) unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America, shall to the fullest extent permitted by law, be the exclusive forum for the resolution of any complaint asserting a cause of action against the Corporation or any director, officer, employee or agent of the Corporation and arising under the Securities Act of 1933, as amended.

(c)    To the fullest extent permitted by applicable law, any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Section 7 of Article VIII.

(d)    If any Action is filed in a court other than pursuant to this Section 7 of Article VIII (a “Foreign Action”) in the name of any current or former shareholder, such shareholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of North Carolina in connection with any action brought in any such court to enforce Section 5(a) above (an “Enforcement Action”) and (ii) having service of process made upon such shareholder in any such Enforcement Action by service upon such shareholder’s counsel in the Foreign Action as agent for such shareholder.

(e)    If any provision or provisions of Section 7 of this Article VIII shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Section 7 (including, without limitation, each portion of any sentence of this Section 7 containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby.

Section 8.    Amendments: Except as otherwise provided herein, these bylaws may be amended or repealed and new bylaws may be adopted by the affirmative vote of a majority of the directors then holding office at any regular or special meeting of the Board of Directors.

The Board of Directors shall have no power to adopt a bylaw: (1) requiring more than a majority of the voting shares for a quorum at a meeting of shareholders or more than a majority of the votes cast to constitute action by the shareholders, except where higher percentages are required by law; (2) providing for the management of the Corporation otherwise than by the Board of Directors or its Executive Committees; (3) increasing or decreasing the number of directors; (4) classifying and staggering the election of directors. No bylaw adopted, amended or repealed by the shareholders shall be readopted, amended or repealed by the Board of Directors if neither the articles of incorporation of the Corporation nor a bylaw adopted by the shareholders authorizes the Board of Directors to alter or repeal that particular bylaw or the bylaws generally.

No provision of these bylaws may be amended, altered or repealed by the shareholders of the corporation unless a meeting of the shareholders is held to act thereon and there is obtained the approval of a percentage of all the votes entitled to be cast on at least eighty percent (80%); provided, however, that the approval of the majority of all the votes entitled to be cast shall be sufficient to approve any such amendment, alteration or repeal that has been favorably recommended to the shareholders by resolution adopted by the affirmative vote of at least seventy-five percent (75%) of the entire Board of Directors.

12

EX-31.1

Exhibit 31(i)

Certification

I, J. Allen Fine, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Investors Title Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2020	/s/ J. Allen Fine
		J. Allen Fine
		Chief Executive Officer

EX-31.2

Exhibit 31(ii)

Certification

I, James A. Fine, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Investors Title Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2020	/s/ James A. Fine, Jr.
		James A. Fine, Jr.
		Chief Financial Officer

EX-32

Exhibit 32

Certifications

Pursuant to 18 U.S.C. Section 1350,

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Investors Title Company, a North Carolina corporation (the "Company") for the quarter ended September 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

(ii)    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 9, 2020	/s/ J. Allen Fine
		J. Allen Fine
		Chief Executive Officer
Dated:	November 9, 2020	/s/ James A. Fine, Jr.
		James A. Fine, Jr.
		Chief Financial Officer

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 20, 2020
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	0-11774
Entity Central Index Key	0000720858
Entity Registrant Name	INVESTORS TITLE CO
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-1110199
Entity Address, Address Line One	121 North Columbia Street
Entity Address, City or Town	Chapel Hill
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27514
City Area Code	919
Local Phone Number	968-2200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,892,411
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	ITIC
Security Exchange Name	NASDAQ
RightsToPurchaseSeriesAJuniorParticipatingPreferredStock [Member]
Entity Information [Line Items]
No Trading Symbol Flag	true
Title of 12(b) Security	Rights to Purchase Series A Junior Participating Preferred Stock
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 41,534	$ 25,949
Investments in securities:
Fixed maturity securities, available-for-sale, at fair value (amortized cost: September 30, 2020: $92,912; December 31, 2019: $100,667)	98,428	104,638
Equity securities, at fair value (cost: September 30, 2020: $34,180; December 31, 2019: $33,570)	58,851	61,108
Short-term investments	22,516	13,134
Other investments	14,829	13,982
Total investments	194,624	192,862
Premium and fees receivable	17,291	12,523
Accrued interest and dividends	1,187	1,033
Prepaid expenses and other receivables	9,185	5,519
Property, net	10,669	9,776
Goodwill and other intangible assets, net	9,897	10,275
Operating lease right-of-use assets	3,798	4,469
Other assets	1,560	1,487
Total Assets	289,745	263,893
Liabilities:
Reserve for claims	33,532	31,333
Accounts payable and accrued liabilities	31,565	28,318
Operating lease liabilities	3,937	4,502
Current income taxes payable	813	1,340
Deferred income taxes, net	6,971	7,038
Total liabilities	76,818	72,531
Commitments and Contingencies	0	0
Stockholders' Equity:
Preferred stock (1,000 authorized shares; no shares issued)	0	0
Common stock – no par value (10,000 authorized shares; 1,892 and 1,889 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively, excluding in each period 292 shares of common stock held by the Company)	0	0
Retained earnings	208,647	188,262
Accumulated other comprehensive income	4,280	3,100
Total stockholders' equity	212,927	191,362
Total Liabilities and Stockholders’ Equity	$ 289,745	$ 263,893

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Fixed maturities, available-for-sale, amortized cost	$ 92,912	$ 100,667
Equity securities, cost	$ 34,180	$ 33,570
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	1,892	1,889
Common stock, shares outstanding	1,892	1,889
Common stock, held by Company's subsidiary	292	292

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Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Net premiums written	$ 57,205	$ 40,169	$ 143,311	$ 103,942
Escrow and other title-related fees	2,154	2,393	6,014	5,616
Non-title services	1,954	2,539	6,476	7,444
Interest and dividends	1,060	1,156	3,342	3,605
Other investment income	1,270	708	2,236	2,044
Net realized investment gains	186	423	327	1,199
Changes in the estimated fair value of equity security investments	3,619	406	(2,867)	6,218
Other	185	145	443	550
Total Revenues	67,633	47,939	159,282	130,618
Operating Expenses:
Commissions to agents	29,068	19,928	73,344	51,261
Provision for claims	1,552	987	4,452	3,610
Personnel expenses	12,575	11,576	36,632	34,871
Office and technology expenses	2,456	2,350	7,328	6,803
Other expenses	3,125	3,079	9,276	8,821
Total Operating Expenses	48,776	37,920	131,032	105,366
Income before Income Taxes	18,857	10,019	28,250	25,252
Provision for Income Taxes	3,556	2,067	5,465	5,174
Net Income	$ 15,301	$ 7,952	$ 22,785	$ 20,078
Basic Earnings per Common Share	$ 8.09	$ 4.21	$ 12.04	$ 10.63
Weighted Average Shares Outstanding – Basic	1,892	1,889	1,892	1,888
Diluted Earnings per Common Share	$ 8.07	$ 4.20	$ 12.02	$ 10.59
Weighted Average Shares Outstanding – Diluted	1,895	1,895	1,896	1,896

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Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ (15,301)	$ (7,952)	$ (22,785)	$ (20,078)
Other comprehensive income, before tax:
Accumulated postretirement benefit obligation adjustment	0	0	(41)	0
Net unrealized gain on investments arising during the period	61	431	1,093	2,847
Reclassification adjustment for sale of securities included in net income	0	0	(30)	0
Reclassification adjustment for write-down of securities included in net income	0	0	482	0
Other comprehensive income, before tax	61	431	1,504	2,847
Income tax benefit related to postretirement health benefits	0	0	(9)	0
Income tax expense related to net unrealized gain on investments arising during the period	11	90	229	601
Income tax benefit related to reclassification adjustment for sale of securities included in net income	0	0	(6)	0
Income tax expense related to reclassification adjustment for write-down of securities included in net income	0	0	110	0
Net income tax expense on other comprehensive income	11	90	324	601
Other comprehensive income	50	341	1,180	2,246
Comprehensive Income	$ 15,351	$ 8,293	$ 23,965	$ 22,324

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Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income
Balance, beginning of year, shares at Dec. 31, 2018		1,887
Balance, beginning of year at Dec. 31, 2018	$ 175,639	$ 0	$ 174,690	$ 949
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,078		20,078
Dividends paid	(2,266)		(2,266)
Shares of common stock repurchased and retired (in shares)		0
Shares of common stock repurchased and retired	(11)		(11)
Stock options and stock appreciation rights exercised (in shares)		2
Stock options and stock appreciation rights exercised	0		0
Share-based compensation expense related to stock appreciation rights	204		204
Accumulated postretirement benefit obligation adjustment	0
Net unrealized gain on investments	2,246			2,246
Other	0
Balance, end of year, shares at Sep. 30, 2019		1,889
Balance, end of year at Sep. 30, 2019	$ 195,890	$ 0	192,695	3,195
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 1.20
Balance, beginning of year, shares at Jun. 30, 2019		1,889
Balance, beginning of year at Jun. 30, 2019	$ 188,295	$ 0	185,441	2,854
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,952		7,952
Dividends paid	(755)		(755)
Stock options and stock appreciation rights exercised (in shares)		0
Stock options and stock appreciation rights exercised	0		0
Share-based compensation expense related to stock appreciation rights	57		57
Net unrealized gain on investments	341			341
Balance, end of year, shares at Sep. 30, 2019		1,889
Balance, end of year at Sep. 30, 2019	$ 195,890	$ 0	192,695	3,195
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.40
Balance, beginning of year, shares at Dec. 31, 2019		1,889
Balance, beginning of year at Dec. 31, 2019	$ 191,362	$ 0	188,262	3,100
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,785		22,785
Dividends paid	(2,497)		(2,497)
Stock options and stock appreciation rights exercised (in shares)		3
Stock options and stock appreciation rights exercised	(1)		(1)
Share-based compensation expense related to stock appreciation rights	192		192
Accumulated postretirement benefit obligation adjustment	(32)			(32)
Net unrealized gain on investments	1,212			1,212
Other	(94)		(94)
Balance, end of year, shares at Sep. 30, 2020		1,892
Balance, end of year at Sep. 30, 2020	$ 212,927	$ 0	208,647	4,280
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 1.32
Balance, beginning of year, shares at Jun. 30, 2020		1,892
Balance, beginning of year at Jun. 30, 2020	$ 198,465	$ 0	194,235	4,230
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,301		15,301
Dividends paid	(833)		(833)
Stock options and stock appreciation rights exercised (in shares)		0
Stock options and stock appreciation rights exercised	0		0
Share-based compensation expense related to stock appreciation rights	38		38
Net unrealized gain on investments	50			50
Other	(94)		(94)
Balance, end of year, shares at Sep. 30, 2020		1,892
Balance, end of year at Sep. 30, 2020	$ 212,927	$ 0	$ 208,647	$ 4,280
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.44

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Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.44	$ 0.40	$ 1.32	$ 1.20

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating Activities
Net income	$ 22,785	$ 20,078
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,320	1,298
Amortization of investments, net	678	492
Amortization of other intangible assets, net	378	379
Share-based compensation expense related to stock appreciation rights	192	204
Net gain on disposals of property	(26)	(28)
Net realized investment gains	(327)	(1,199)
Net change in estimated fair value of equity security investments	2,867	(6,218)
Net earnings from other investments	(1,764)	(1,286)
Provision for claims	4,452	3,610
(Benefit) provision for deferred income taxes	(391)	1,340
Changes in assets and liabilities:
Increase in premium and fees receivables	(4,768)	(502)
(Increase) decrease in other assets	(3,893)	360
Decrease (increase) in operating lease right-of-use assets	577	(4,619)
Increase (decrease) in accounts payable and accrued liabilities	3,206	(205)
(Decrease) increase in operating lease liabilities	(565)	4,622
Decrease in current income taxes payable	(527)	(4,839)
Payments of claims, net of recoveries	(2,253)	(3,534)
Net cash provided by operating activities	21,941	9,953
Investing Activities
Purchases of fixed maturities	(517)	(1,235)
Purchases of equity securities	(9,270)	(3,921)
Purchases of short-term investments	(13,668)	(89,519)
Purchases of other investments	(1,090)	(1,456)
Proceeds from sales and maturities of fixed maturity securities	7,139	7,280
Proceeds from sales of equity securities	9,412	4,040
Proceeds from sales and maturities of short-term investments	4,291	100,821
Proceeds from sales and distributions of other investments	2,010	2,490
Proceeds from sales of other assets	22	2
Purchases of property	(2,245)	(1,020)
Proceeds from the sale of property	58	140
Net cash (used in) provided by investing activities	(3,858)	17,622
Financing Activities
Repurchases of common stock	0	(11)
Exercise of stock appreciation rights	(1)	0
Dividends paid	(2,497)	(2,266)
Net cash used in financing activities	(2,498)	(2,277)
Net Increase in Cash and Cash Equivalents	15,585	25,298
Cash and Cash Equivalents, Beginning of Period	25,949	18,694
Cash and Cash Equivalents, End of Period	41,534	43,992
Cash Paid During the Year for:
Income tax payments, net	6,889	9,150
Non-cash net unrealized gain on investments, net of deferred tax provision of $(333) and $(601) for September 30, 2020 and 2019, respectively	(1,212)	(2,246)
Adjustments to postretirement benefits obligation, net of deferred tax benefit of $9 and $0 for September 30, 2020 and 2019, respectively	32	0
Adjustments to operating lease right-of-use assets for September 30, 2020 and 2019, respectively	$ 94	$ 0

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Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Cash Flows [Abstract]
Deferred tax provision related to unrealized gain (loss) on investments	$ (333)	$ (601)
Adjustments to postretirement benefits obligation, net of deferred tax benefit provision	$ 9	$ 0

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Basis Of Presentation And Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation And Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2019 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies.

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three- and nine-month periods ended September 30, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period.

Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used.

Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 updated guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadened the information that an entity must consider in developing its expected credit loss estimates, and was meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amended the accounting for credit losses on available-for-sale fixed maturity securities and purchased financial assets with credit deterioration. The update was effective for the Company for annual periods beginning after December 15, 2019, and interim periods within those fiscal years.  The Company adopted this update on January 1, 2020 with no material impact on the Company's financial position and results of operations. Refer to Note 6 for further information about the Company's investments.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removed the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity is required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and must recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized must not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarified that an entity is required to consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update was effective for the Company for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 with no impact on the Company's financial position and results of operations.

Recently Issued Accounting Standards

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to reduce the complexity in accounting for income taxes during interim and annual periods and is expected to provide clarity on income tax situations where a diversity in practice has developed. The update is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for interim or annual periods for which financial statements have not yet been issued. None of these amendments are expected to have a material impact on the Company's financial position or results of operations.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative immediately before applying or upon discontinuing the equity method. In addition, this update clarifies that, when determining the accounting for certain forward contracts and purchased options, a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The update is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.  Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and does not expect it to have a material impact.

Significant Accounting Policies – The Company has updated the following accounting policies due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

Allowance for Credit Losses – Available-for-Sale Securities

For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation.

In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable is excluded from the estimate of credit losses.

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Reserves For Claims

9 Months Ended

Sep. 30, 2020

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserves For Claims

Reserve for Claims

Activity in the reserve for claims for the nine-month period ended September 30, 2020 and the year ended December 31, 2019 are summarized as follows:

(in thousands)	September 30, 2020		December 31, 2019
Balance, beginning of period	$	31,333	$	31,729
Provision charged to operations	4,452		3,532
Payments of claims, net of recoveries	(2,253)		(3,928)
Balance, end of period	$	33,532	$	31,333

The total reserve for all reported and unreported losses the Company incurred through September 30, 2020 is represented by the reserve for claims on the Consolidated Balance Sheets. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through September 30, 2020. Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant.

A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:

(in thousands, except percentages)	September 30, 2020		%	December 31, 2019		%
Known title claims	$	3,993	11.9	$	3,799	12.1
IBNR	29,539		88.1	27,534		87.9
Total reserve for claims	$	33,532	100.0	$	31,333	100.0

Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated fair value, net of any indebtedness on the property.

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Earnings Per Common Share And Share Awards

9 Months Ended

Sep. 30, 2020

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, as share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted earnings per share for the three- and nine-month periods ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	15,301	$	7,952	$	22,785	$	20,078
Weighted average common shares outstanding – Basic	1,892		1,889		1,892		1,888
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled)	3		6		4		8
Weighted average common shares outstanding – Diluted	1,895		1,895		1,896		1,896
Basic earnings per common share	$	8.09	$	4.21	$	12.04	$	10.63
Diluted earnings per common share	$	8.07	$	4.20	$	12.02	$	10.59

There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended September 30, 2020 and 2019, respectively, due to the out-of-the-money status of the related share-based awards. There were 20 thousand and 14 thousand potential shares excluded from the computation of diluted earnings per share for the nine-month periods ended September 30, 2020 and 2019, respectively.

The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company. There is currently one active plan from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares.

As of September 30, 2020, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. Most outstanding SARs vest and are exercisable within one year of the date of grant, with the exception of one grant where the SARs vest over five years. All SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.

There was approximately $192 thousand and $205 thousand of compensation expense relating to SARs vesting on or before September 30, 2020 and 2019, respectively, included in personnel expenses in the Consolidated Statements of Operations. As of September 30, 2020, there was $246 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

A summary of share-based award transactions for all share-based award plans follows:

(in thousands, except weighted average exercise price and average remaining contractual term)	Number Of Shares	Weighted Average Exercise Price		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2019	28	$	110.27	3.64	$	2,019
SARs granted	4	162.81
SARs exercised	(2)	50.50
Outstanding as of December 31, 2019	30	$	124.13	3.53	$	1,352
SARs granted	11	135.05
SARs exercised	(8)	75.75
Outstanding as of September 30, 2020	33	$	138.55	4.41	$	496
Exercisable as of September 30, 2020	26	$	140.02	3.83	$	480
Unvested as of September 30, 2020	7	$	133.21	6.52	$	16

During the second quarters of both 2020 and 2019, the Company issued 4 thousand share-settled SARs to directors of the Company. During the first quarter of 2020, the Company also issued 7 thousand share-settled SARs to directors and employees of the Company. There were no such first quarter issuances in 2019, as all 2019 issuances of share-settled SARs were made in the second quarter. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments.  The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions noted in the table shown below. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant.  The weighted average fair value for the SARs issued during 2020 and 2019 were $34.45 and $51.88, respectively, and were estimated using the weighted average assumptions shown in the table below.

	2020			2019
Expected Life in Years	6.2	-	7.0	7.0	-	7.0
Volatility	28.5%			30.2%
Interest Rate	0.7%			2.3%
Yield Rate	1.2%			1.0%

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Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called “All Other.”

The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate.

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	61,809	$	2,176	$	(2,487)	$	61,498
Investment income	5,627		322		—		5,949
Net realized (loss) gain on investments	(263)		449		—		186
Total revenues	$	67,173	$	2,947	$	(2,487)	$	67,633
Operating expenses	49,260		1,858		(2,342)		48,776
Income before income taxes	$	17,913	$	1,089	$	(145)	$	18,857
Total assets	$	213,152	$	76,593	$	—	$	289,745

Three Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	44,079	$	2,851	$	(1,684)	$	45,246
Investment income	1,879		391		—		2,270
Net realized gain on investments	346		77		—		423
Total revenues	$	46,304	$	3,319	$	(1,684)	$	47,939
Operating expenses	37,201		2,269		(1,550)		37,920
Income before income taxes	$	9,103	$	1,050	$	(134)	$	10,019
Total assets	$	191,436	$	74,678	$	—	$	266,114

Nine Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	154,820	$	7,149	$	(5,725)	$	156,244
Investment income	2,525		186		—		2,711
Net realized gain on investments	327		—		—		327
Total revenues	$	157,672	$	7,335	$	(5,725)	$	159,282
Operating expenses	129,777		6,543		(5,288)		131,032
Income before income taxes	$	27,895	$	792	$	(437)	$	28,250
Total assets	$	213,152	$	76,593	$	—	$	289,745

Nine Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	113,999	$	8,373	$	(4,820)	$	117,552
Investment income	9,780		2,087		—		11,867
Net realized gain on investments	1,102		97		—		1,199
Total revenues	$	124,881	$	10,557	$	(4,820)	$	130,618
Operating expenses	102,792		6,991		(4,417)		105,366
Income before income taxes	$	22,089	$	3,566	$	(403)	$	25,252
Total assets	$	191,436	$	74,678	$	—	$	266,114

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Retirement Agreements And Other Postretirement Benefits

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Retirement Agreements And Other Postretirement Benefits

Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $12.4 million and $12.2 million as of September 30, 2020 and December 31, 2019, respectively. The executive employee benefits include health, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets. The following sets forth the net periodic benefit cost for the executive benefits for the periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Service cost – benefits earned during the year	$	—	$	—	$	—	$	—
Interest cost on the projected benefit obligation	7		8		23		25
Amortization of unrecognized losses	—		—		—		—
Net periodic benefit cost	$	7	$	8	$	23	$	25

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Investments In Securities and Fair Value

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments In Securities and Fair Value

Investments and Estimated Fair Value

Investments in Fixed Maturity Securities

The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows:

As of September 30, 2020 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	24,060	$	152	$	—	$	24,212
General obligations of U.S. states, territories and political subdivisions	17,569		1,245		—		18,814
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,305		3,098		3		50,400
Corporate debt securities	3,978		1,024		—		5,002
Total	$	92,912	$	5,519	$	3	$	98,428

As of December 31, 2019 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	25,161	$	6	$	4	$	25,163
General obligations of U.S. states, territories and political subdivisions	18,887		843		—		19,730
Special revenue issuer obligations of U.S. states, territories and political subdivisions	51,188		2,530		20		53,698
Corporate debt securities	5,431		621		5		6,047
Total	$	100,667	$	4,000	$	29	$	104,638

The special revenue category for both periods presented includes approximately 50 individual fixed maturity securities with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at September 30, 2020 are as follows:

	Available-for-Sale
(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	31,052	$	31,253
Due one year through five years	42,795		46,050
Due five years through ten years	18,250		19,741
Due after ten years	815		1,384
Total	$	92,912	$	98,428

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 September 30, 2020 and December 31, 2019:

	Less than 12 Months				12 Months or Longer				Total
As of September 30, 2020 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Special revenue issuer obligations of U.S. states, territories and political subdivisions	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)
Total temporarily impaired securities	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)

	Less than 12 Months				12 Months or Longer				Total
As of December 31, 2019 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Government obligations	$	12,045	$	(4)	$	—	$	—	$	12,045	$	(4)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	1,101		(17)		1,118		(3)		2,219		(20)
Corporate debt securities	413		(5)		—		—		413		(5)
Total temporarily impaired securities	$	13,559	$	(26)	$	1,118	$	(3)	$	14,677	$	(29)

The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 1 and 6 fixed maturity securities had unrealized losses without an allowance for credit losses at September 30, 2020 and December 31, 2019, respectively. The Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive income.

Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss. The Company recorded $482 thousand and $0 of other-than-temporary impairment charges related to fixed maturity securities for the nine-month periods ended September 30, 2020 and 2019, respectively. Expenses related to other-than-temporary impairments are recorded in net realized investment gains in the Consolidated Statements of Operations when recognized.

Investments in Equity Securities

The cost and estimated fair value of equity securities are as follows:

As of September 30, 2020 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	34,180	$	58,851
Total	$	34,180	$	58,851

As of December 31, 2019 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	33,570	$	61,108
Total	$	33,570	$	61,108

Unrealized holding gains and losses are reported in the Consolidated Statements of Operations as changes in the estimated fair value of equity security investments.

Net Realized Investment Gains

Gross realized gains and losses on sales of investments for the nine-month period ended September 30 are summarized as follows:

(in thousands)	2020		2019
Gross realized gains from securities:
Corporate debt securities	$	30	$	—
Common stocks	2,520		1,385
Total	$	2,550	$	1,385
Gross realized losses from securities:
Common stocks	$	(1,768)	$	(188)
Other-than-temporary impairment of securities	(482)		—
Total	$	(2,250)	$	(188)
Net realized gains from securities	$	300	$	1,197
Gross realized gains (losses) on other investments:
Gains on other investments	$	32	$	2
Losses on other investments	(5)		—
Total	$	27	$	2
Net realized investment gains	$	327	$	1,199

Realized gains and losses are determined on the specific identification method.  

Variable Interest Entities

The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of September 30, 2020:

(in thousands)	Balance Sheet Classification	Carrying Value		Estimated Fair Value		Maximum Potential Loss (a)
Tax credit LPs	Other investments	$	267	$	267	$	1,768
Real estate LLCs or LPs	Other investments	5,090		6,680		6,675
Small business investment LPs	Other investments	7,125		6,667		12,955
Total		$	12,482	$	13,614	$	21,398

(a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.

Valuation of Financial Assets

The FASB has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

The Level 1 category includes equity securities and U.S. Treasury securities that are measured at estimated fair value using quoted active market prices.

The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories, and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of September 30, 2020 and December 31, 2019, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data.

In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.

In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:

Cash and cash equivalents

The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.

Measurement alternative equity investments

The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments, and plus or minus any changes resulting from observable price changes.  The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.

Accrued interest and dividends

The carrying amount for accrued interest and dividends is a reasonable estimate of fair value due to the short-term maturity of these assets.

The following table presents, by level, fixed maturity securities carried at estimated fair value as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,212	$	69,214	$	—	$	93,426
Corporate debt securities	—		5,002		—		5,002
Total	$	24,212	$	74,216	$	—	$	98,428

As of December 31, 2019 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,160	$	74,431	$	—	$	98,591
Corporate debt securities	—		6,047		—		6,047
Total	$	24,160	$	80,478	$	—	$	104,638

*Denotes fair market value obtained from pricing services.

The following table presents, by level, estimated fair values of equity investments and other financial instruments as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	41,534	$	—	$	—	$	41,534
Accrued interest and dividends	1,187		—		—		1,187
Equity securities, at fair value:
Common stocks	58,851		—		—		58,851
Short-term investments:
Money market funds, Treasury bills and certificates of deposit	22,516		—		—		22,516
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,541		6,541
Equity investments in unconsolidated affiliates, measurement alternative	—		—		8,288		8,288
Total	$	124,088	$	—	$	14,829	$	138,917

As of December 31, 2019 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	25,949	$	—	$	—	$	25,949
Accrued interest and dividends	1,033		—		—		1,033
Equity securities, at fair value:
Common stocks	61,108		—		—		61,108
Short-term investments:
Money market funds and certificates of deposit	13,134		—		—		13,134
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,083		6,083
Equity investments in unconsolidated affiliates, measurement alternative	—		—		7,899		7,899
Total	$	101,224	$	—	$	13,982	$	115,206

The Company did not hold any Level 3 category debt or marketable equity investment securities as of September 30, 2020 or December 31, 2019.

There were no transfers into or out of Levels 1, 2 or 3 during the periods presented.

To help ensure that estimated fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and estimated fair values consistent with ASC 820.

Certain equity investments under the measurement alternative are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be other-than-temporarily impaired, an impairment charge is recorded against such investment and reflected in the Consolidated Statements of Operations. There were no impairments of such investments made during the nine-month period ended September 30, 2020 or the twelve-month period ended December 31, 2019. The following table presents a rollforward of equity investments under the measurement alternative as of September 30, 2020 and December 31, 2019:

(in thousands)	Balance, December 31, 2019		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, September 30, 2020
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288
Total	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288

(in thousands)	Balance, December 31, 2018		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, December 31, 2019
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899
Total	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899

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Commitments And Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Legal Proceedings – The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, is not expected to be, in the aggregate, material to the Company’s consolidated financial condition or operations.

Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits, examinations, and inquiries. It is the opinion of management based on its present expectations that findings from these audits, examinations, and inquiries will not have a material impact on the Company’s consolidated financial condition or results of operations.

Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, escrowed funds received under escrow agreements, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of these deposits.

Like-Kind Exchanges Proceeds – In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $179.5 million and $214.6 million as of September 30, 2020 and December 31, 2019, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon interest rate. Exchange services revenues include earnings on these deposits; therefore, investment income is included as a component of non-title services on the Consolidated Statements of Operations rather than other investment income. Like-kind exchange funds are primarily invested in money market and other short-term investments.

COVID-19 – The U.S. and other countries are experiencing an outbreak of a novel coronavirus which causes a disease designated as COVID-19 and, in March 2020, the World Health Organization declared it a pandemic.  This contagious disease outbreak has continued to spread across the globe, including in U.S. states where the Company conducts business, and is impacting worldwide economic activity and financial markets. In response, the U.S. government and its agencies have taken a number of significant measures to provide fiscal and monetary stimulus. Such actions include an unscheduled cut to the federal funds rate, the introduction of new programs to preserve market liquidity, extended unemployment and sick leave benefits, low-interest loans for working capital access and payroll assistance, and other relief measures for both workers and businesses. The Company is fully operational and has not had any reductions in workforce during 2020. A large portion of the Company's workforce is performing their job functions remotely.  The Company has not taken stimulus relief funding or incurred any other forms of debt.

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Related Party Transactions

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these limited liability companies. The following tables set forth the approximate values by year found within each financial statement classification:

Financial Statement Classification, Consolidated Balance Sheets (in thousands)	As of September 30, 2020		As of December 31, 2019
Other investments	$	6,541	$	6,083
Premium and fees receivable	$	635	$	410

Financial Statement Classification, Consolidated Statements of Operations (in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net premiums written	$	6,615	$	4,626	$	16,725	$	11,674
Non-title services and other investment income	$	1,104	$	779	$	2,241	$	1,866
Commissions to agents	$	4,486	$	3,056	$	11,279	$	7,702

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Intangible Assets, Goodwill and Title Plant

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Business Combinations, Intangible Assets and Goodwill

Intangible Assets, Goodwill and Title Plant

Intangible Assets

The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the nine-month periods ended September 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired.

Identifiable intangible assets consist of the following:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Referral relationships	$	6,416	$	6,416
Non-compete agreements	1,406		1,406
Tradename	560		560
Total	8,382		8,382
Accumulated amortization	(2,835)		(2,456)
Identifiable intangible assets, net	$	5,547	$	5,926

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:

Year Ended (in thousands)
2020	$	126
2021	562
2022	525
2023	525
2024	473
Thereafter	3,336
Total	$	5,547

Goodwill and Title Plant

As of September 30, 2020, the Company recognized $4.4 million in goodwill and $690 thousand in a title plant, net of impairments, as the result of title insurance agency acquisitions.  The title plant is included with other assets in the Consolidated Balance Sheets. The fair values of goodwill and the title plant as of the date of acquisition, both Level 3 inputs, were principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the nine-month periods ended September 30, 2020 and 2019 that would indicate the carrying amounts may not be recoverable, and therefore determined that there were no goodwill or title plant impairments.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2020

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	4,294	$	(64)	$	4,230
Other comprehensive income before reclassifications	50		—		50
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	50		—		50
Ending balance	$	4,344	$	(64)	$	4,280

Three Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	2,886	$	(32)	$	2,854
Other comprehensive income before reclassifications	341		—		341
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	341		—		341
Ending balance	$	3,227	$	(32)	$	3,195

Nine Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	3,132	$	(32)	$	3,100
Other comprehensive income (loss) before reclassifications	864		(32)		832
Amounts reclassified from accumulated other comprehensive income	348		—		348
Net current-period other comprehensive income (loss)	1,212		(32)		1,180
Ending balance	$	4,344	$	(64)	$	4,280

Nine Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	981	$	(32)	$	949
Other comprehensive income before reclassifications	2,246		—		2,246
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	2,246		—		2,246
Ending balance	$	3,227	$	(32)	$	3,195

The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and nine-month periods ended September 30, 2020:

Three Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	—
Other-than-temporary impairments	—
Total	$	—	Net realized investment gains
Tax	—		Provision for income taxes
Net of Tax	$	—
Reclassifications for the period	$	—

Nine Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	30
Other-than-temporary impairments	(482)
Total	$	(452)	Net realized investment gains
Tax	104		Provision for income taxes
Net of Tax	$	(348)
Reclassifications for the period	$	(348)

There were no amounts reclassified out of each component of accumulated other comprehensive income for either the three- or nine-month periods ended September 30, 2019.

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Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue from Contracts with Customers

ASU 2014-09, Revenue from Contracts with Customers (Topic 606) requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance does not apply to revenue associated with insurance contracts (including title insurance policies), financial instruments and lease contracts; and therefore is primarily applicable to the following Company revenue categories.

Escrow and other title-related fees – The Company’s title segment recognizes commission revenue and fees related to items such as searches, settlements, commitments and other ancillary services. Escrow and other title-related fees are recognized as revenue at the time of the related transactions as the earnings process, or performance obligation, is then considered to be complete.

Non-title services – Through various subsidiaries, the Company offers management services, tax-deferred real property exchange services, investment management and trust services. Nonrefundable exchange fees are recognized as revenue upon receipt of the funds, which is at the time of closing of the initial sale of property. All other non-title service fees are recognized as revenue as performance obligations are completed.

Other – The Company occasionally recognizes revenue from other miscellaneous contracts which can include, but is not limited to seminar and education registration fees and software licensing contracts. These revenue streams are deemed immaterial to the operations of the Company, and revenue is recognized when, or as, performance obligations are completed.

The following table provides a breakdown of the Company’s revenue by major business activity:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Revenue from contracts with customers:
Escrow and other title-related fees	$	2,154	$	2,393	$	6,014	$	5,616
Non-title services	1,954		2,539		6,476		7,444
Total revenue from contracts with customers	4,108		4,932		12,490		13,060
Other sources of revenue:
Net premiums written	57,205		40,169		143,311		103,942
Investment-related revenue	6,135		2,693		3,038		13,066
Other	185		145		443		550
Total revenues	$	67,633	$	47,939	$	159,282	$	130,618

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Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Lessee, Operating Leases

Leases

The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease.

A portion of the Company's current leases include an option to extend or cancel the lease term. The exercise of such an option is solely at the Company's discretion. The operating lease liability recorded in the Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the date of adoption that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus no incremental borrowing rate was available to the Company.

Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating leases	$	327	$	312	$	968	$	944
Short-term leases (b)	44		30		110		103
Lease expense	$	371	$	342	$	1,078	$	1,047
Sub-lease income	—		—		—		—
Lease cost	$	371	$	342	$	1,078	$	1,047

(b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

Components of the operating lease liability presented on the Consolidated Balance Sheets are as follows:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Current:
Operating lease liabilities	$	1,097	$	1,048
Non-current:
Operating lease liabilities	2,840		3,454
Total operating lease liabilities	$	3,937	$	4,502

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2020, are summarized as follows:

Year Ended (in thousands)
2020	$	324
2021	1,195
2022	975
2023	685
2024	515
Thereafter	649
Total undiscounted payments	$	4,343
Less: present value adjustment	(406)
Operating lease liabilities	$	3,937

Supplemental lease information is as follows:

	As of September 30, 2020		As of December 31, 2019
Weighted average remaining lease term (years)	4.40		4.84
Weighted average discount rate	4.6	%	4.6	%

The Company does not have any material pending operating or financing lease agreements that become effective in future periods.

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Basis Of Presentation And Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles Of Consolidation

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three- and nine-month periods ended September 30, 2020 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2020 or any other interim period.

Use Of Estimates And Assumptions

Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used.

Subsequent Events, Policy

Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 updated guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadened the information that an entity must consider in developing its expected credit loss estimates, and was meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amended the accounting for credit losses on available-for-sale fixed maturity securities and purchased financial assets with credit deterioration. The update was effective for the Company for annual periods beginning after December 15, 2019, and interim periods within those fiscal years.  The Company adopted this update on January 1, 2020 with no material impact on the Company's financial position and results of operations. Refer to Note 6 for further information about the Company's investments.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removed the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity is required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and must recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized must not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarified that an entity is required to consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update was effective for the Company for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 with no impact on the Company's financial position and results of operations.

Recently Issued Accounting Standards

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to reduce the complexity in accounting for income taxes during interim and annual periods and is expected to provide clarity on income tax situations where a diversity in practice has developed. The update is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for interim or annual periods for which financial statements have not yet been issued. None of these amendments are expected to have a material impact on the Company's financial position or results of operations.

In January 2020, the FASB issued ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). This update clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative immediately before applying or upon discontinuing the equity method. In addition, this update clarifies that, when determining the accounting for certain forward contracts and purchased options, a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The update is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.  Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and does not expect it to have a material impact.

Significant Accounting Policies – The Company has updated the following accounting policies due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

Allowance for Credit Losses – Available-for-Sale Securities

For available-for-sale fixed maturity securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the estimated fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the Consolidated Balance Sheets, limited to the amount by which the amortized cost basis exceeds the estimated fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to the Consolidated Statements of Operations may be reversed if conditions change. However, if the Company intends to sell an impaired available-for-sale fixed maturity security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to estimated fair value, there is no ACL in this situation.

In evaluating available-for-sale fixed maturity securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which estimated fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available-for-sale fixed maturity security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable is excluded from the estimate of credit losses.

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Reserves For Claims (Tables)

9 Months Ended

Sep. 30, 2020

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Summary Of Transactions In Reserves For Claims

Activity in the reserve for claims for the nine-month period ended September 30, 2020 and the year ended December 31, 2019 are summarized as follows:

(in thousands)	September 30, 2020		December 31, 2019
Balance, beginning of period	$	31,333	$	31,729
Provision charged to operations	4,452		3,532
Payments of claims, net of recoveries	(2,253)		(3,928)
Balance, end of period	$	33,532	$	31,333

Summary of the Company's Loss Reserves

A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:

(in thousands, except percentages)	September 30, 2020		%	December 31, 2019		%
Known title claims	$	3,993	11.9	$	3,799	12.1
IBNR	29,539		88.1	27,534		87.9
Total reserve for claims	$	33,532	100.0	$	31,333	100.0

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Earnings Per Common Share And Share Awards (Tables)

9 Months Ended

Sep. 30, 2020

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 three- and nine-month periods ended September 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	15,301	$	7,952	$	22,785	$	20,078
Weighted average common shares outstanding – Basic	1,892		1,889		1,892		1,888
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled)	3		6		4		8
Weighted average common shares outstanding – Diluted	1,895		1,895		1,896		1,896
Basic earnings per common share	$	8.09	$	4.21	$	12.04	$	10.63
Diluted earnings per common share	$	8.07	$	4.20	$	12.02	$	10.59

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 Of Shares	Weighted Average Exercise Price		Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2019	28	$	110.27	3.64	$	2,019
SARs granted	4	162.81
SARs exercised	(2)	50.50
Outstanding as of December 31, 2019	30	$	124.13	3.53	$	1,352
SARs granted	11	135.05
SARs exercised	(8)	75.75
Outstanding as of September 30, 2020	33	$	138.55	4.41	$	496
Exercisable as of September 30, 2020	26	$	140.02	3.83	$	480
Unvested as of September 30, 2020	7	$	133.21	6.52	$	16

Share-Based Valuation Assumptions

The weighted average fair value for the SARs issued during 2020 and 2019 were $34.45 and $51.88, respectively, and were estimated using the weighted average assumptions shown in the table below.

	2020			2019
Expected Life in Years	6.2	-	7.0	7.0	-	7.0
Volatility	28.5%			30.2%
Interest Rate	0.7%			2.3%
Yield Rate	1.2%			1.0%

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Selected Financial Information About The Company's Operations By Segment

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	61,809	$	2,176	$	(2,487)	$	61,498
Investment income	5,627		322		—		5,949
Net realized (loss) gain on investments	(263)		449		—		186
Total revenues	$	67,173	$	2,947	$	(2,487)	$	67,633
Operating expenses	49,260		1,858		(2,342)		48,776
Income before income taxes	$	17,913	$	1,089	$	(145)	$	18,857
Total assets	$	213,152	$	76,593	$	—	$	289,745

Three Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	44,079	$	2,851	$	(1,684)	$	45,246
Investment income	1,879		391		—		2,270
Net realized gain on investments	346		77		—		423
Total revenues	$	46,304	$	3,319	$	(1,684)	$	47,939
Operating expenses	37,201		2,269		(1,550)		37,920
Income before income taxes	$	9,103	$	1,050	$	(134)	$	10,019
Total assets	$	191,436	$	74,678	$	—	$	266,114

Nine Months Ended September 30, 2020 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	154,820	$	7,149	$	(5,725)	$	156,244
Investment income	2,525		186		—		2,711
Net realized gain on investments	327		—		—		327
Total revenues	$	157,672	$	7,335	$	(5,725)	$	159,282
Operating expenses	129,777		6,543		(5,288)		131,032
Income before income taxes	$	27,895	$	792	$	(437)	$	28,250
Total assets	$	213,152	$	76,593	$	—	$	289,745

Nine Months Ended September 30, 2019 (in thousands)	Title Insurance		All Other		Intersegment Eliminations		Total
Insurance and other services revenues	$	113,999	$	8,373	$	(4,820)	$	117,552
Investment income	9,780		2,087		—		11,867
Net realized gain on investments	1,102		97		—		1,199
Total revenues	$	124,881	$	10,557	$	(4,820)	$	130,618
Operating expenses	102,792		6,991		(4,417)		105,366
Income before income taxes	$	22,089	$	3,566	$	(403)	$	25,252
Total assets	$	191,436	$	74,678	$	—	$	266,114

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Retirement Agreements And Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Components Of Net Periodic Benefits Cost

The following sets forth the net periodic benefit cost for the executive benefits for the periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Service cost – benefits earned during the year	$	—	$	—	$	—	$	—
Interest cost on the projected benefit obligation	7		8		23		25
Amortization of unrecognized losses	—		—		—		—
Net periodic benefit cost	$	7	$	8	$	23	$	25

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Investments In Securities and Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	24,060	$	152	$	—	$	24,212
General obligations of U.S. states, territories and political subdivisions	17,569		1,245		—		18,814
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,305		3,098		3		50,400
Corporate debt securities	3,978		1,024		—		5,002
Total	$	92,912	$	5,519	$	3	$	98,428

As of December 31, 2019 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations	$	25,161	$	6	$	4	$	25,163
General obligations of U.S. states, territories and political subdivisions	18,887		843		—		19,730
Special revenue issuer obligations of U.S. states, territories and political subdivisions	51,188		2,530		20		53,698
Corporate debt securities	5,431		621		5		6,047
Total	$	100,667	$	4,000	$	29	$	104,638

The cost and estimated fair value of equity securities are as follows:

As of September 30, 2020 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	34,180	$	58,851
Total	$	34,180	$	58,851

As of December 31, 2019 (in thousands)	Cost		Estimated Fair Value
Equity securities, at fair value:
Common stocks	$	33,570	$	61,108
Total	$	33,570	$	61,108

Schedule Of Fixed Maturity Securities

The scheduled maturities of fixed maturity securities at September 30, 2020 are as follows:

	Available-for-Sale
(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	31,052	$	31,253
Due one year through five years	42,795		46,050
Due five years through ten years	18,250		19,741
Due after ten years	815		1,384
Total	$	92,912	$	98,428

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 September 30, 2020 and December 31, 2019:

	Less than 12 Months				12 Months or Longer				Total
As of September 30, 2020 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Special revenue issuer obligations of U.S. states, territories and political subdivisions	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)
Total temporarily impaired securities	$	—	$	—	$	1,103	$	(3)	$	1,103	$	(3)

	Less than 12 Months				12 Months or Longer				Total
As of December 31, 2019 (in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
Government obligations	$	12,045	$	(4)	$	—	$	—	$	12,045	$	(4)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	1,101		(17)		1,118		(3)		2,219		(20)
Corporate debt securities	413		(5)		—		—		413		(5)
Total temporarily impaired securities	$	13,559	$	(26)	$	1,118	$	(3)	$	14,677	$	(29)

Schedule Of Gross Realized Gains And Losses On Securities

Gross realized gains and losses on sales of investments for the nine-month period ended September 30 are summarized as follows:

(in thousands)	2020		2019
Gross realized gains from securities:
Corporate debt securities	$	30	$	—
Common stocks	2,520		1,385
Total	$	2,550	$	1,385
Gross realized losses from securities:
Common stocks	$	(1,768)	$	(188)
Other-than-temporary impairment of securities	(482)		—
Total	$	(2,250)	$	(188)
Net realized gains from securities	$	300	$	1,197
Gross realized gains (losses) on other investments:
Gains on other investments	$	32	$	2
Losses on other investments	(5)		—
Total	$	27	$	2
Net realized investment gains	$	327	$	1,199

Schedule of Variable Interest Entities

The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of September 30, 2020:

(in thousands)	Balance Sheet Classification	Carrying Value		Estimated Fair Value		Maximum Potential Loss (a)
Tax credit LPs	Other investments	$	267	$	267	$	1,768
Real estate LLCs or LPs	Other investments	5,090		6,680		6,675
Small business investment LPs	Other investments	7,125		6,667		12,955
Total		$	12,482	$	13,614	$	21,398

(a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.

Schedule Of Fair Value Assets Measured On Recurring Basis

The following table presents, by level, fixed maturity securities carried at estimated fair value as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,212	$	69,214	$	—	$	93,426
Corporate debt securities	—		5,002		—		5,002
Total	$	24,212	$	74,216	$	—	$	98,428

As of December 31, 2019 (in thousands)	Level 1		Level 2 *		Level 3		Total
Fixed maturity securities:
Obligations of U.S. states, territories and political subdivisions	$	24,160	$	74,431	$	—	$	98,591
Corporate debt securities	—		6,047		—		6,047
Total	$	24,160	$	80,478	$	—	$	104,638

Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed

The following table presents, by level, estimated fair values of equity investments and other financial instruments as of September 30, 2020 and December 31, 2019:

As of September 30, 2020 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	41,534	$	—	$	—	$	41,534
Accrued interest and dividends	1,187		—		—		1,187
Equity securities, at fair value:
Common stocks	58,851		—		—		58,851
Short-term investments:
Money market funds, Treasury bills and certificates of deposit	22,516		—		—		22,516
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,541		6,541
Equity investments in unconsolidated affiliates, measurement alternative	—		—		8,288		8,288
Total	$	124,088	$	—	$	14,829	$	138,917

As of December 31, 2019 (in thousands)	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	25,949	$	—	$	—	$	25,949
Accrued interest and dividends	1,033		—		—		1,033
Equity securities, at fair value:
Common stocks	61,108		—		—		61,108
Short-term investments:
Money market funds and certificates of deposit	13,134		—		—		13,134
Other investments:
Equity investments in unconsolidated affiliates, equity method	—		—		6,083		6,083
Equity investments in unconsolidated affiliates, measurement alternative	—		—		7,899		7,899
Total	$	101,224	$	—	$	13,982	$	115,206

Schedule of Cost Method Investments

The following table presents a rollforward of equity investments under the measurement alternative as of September 30, 2020 and December 31, 2019:

(in thousands)	Balance, December 31, 2019		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, September 30, 2020
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288
Total	$	7,899	$	—	$	—	$	642	$	(253)	$	8,288

(in thousands)	Balance, December 31, 2018		Amounts Impaired		Observable Changes		Purchases and Additional Commitments Paid		Sales, Returns of Capital and Other Reductions		Balance, December 31, 2019
Other investments:
Equity investments in unconsolidated affiliates, measurement alternative	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899
Total	$	6,589	$	—	$	—	$	2,241	$	(931)	$	7,899

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets

The following tables set forth the approximate values by year found within each financial statement classification:

Financial Statement Classification, Consolidated Balance Sheets (in thousands)	As of September 30, 2020		As of December 31, 2019
Other investments	$	6,541	$	6,083
Premium and fees receivable	$	635	$	410

Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income

Financial Statement Classification, Consolidated Statements of Operations (in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net premiums written	$	6,615	$	4,626	$	16,725	$	11,674
Non-title services and other investment income	$	1,104	$	779	$	2,241	$	1,866
Commissions to agents	$	4,486	$	3,056	$	11,279	$	7,702

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Intangible Assets, Goodwill and Title Plant (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Schedule of Finite-Lived Intangible Assets

Identifiable intangible assets consist of the following:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Referral relationships	$	6,416	$	6,416
Non-compete agreements	1,406		1,406
Tradename	560		560
Total	8,382		8,382
Accumulated amortization	(2,835)		(2,456)
Identifiable intangible assets, net	$	5,547	$	5,926

Schedule Of Aggregate Amortization Expense for Intangible Assets

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:

Year Ended (in thousands)
2020	$	126
2021	562
2022	525
2023	525
2024	473
Thereafter	3,336
Total	$	5,547

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2020

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule Of Changes In Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2020 and 2019:

Three Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	4,294	$	(64)	$	4,230
Other comprehensive income before reclassifications	50		—		50
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	50		—		50
Ending balance	$	4,344	$	(64)	$	4,280

Three Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at June 30	$	2,886	$	(32)	$	2,854
Other comprehensive income before reclassifications	341		—		341
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	341		—		341
Ending balance	$	3,227	$	(32)	$	3,195

Nine Months Ended September 30, 2020 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	3,132	$	(32)	$	3,100
Other comprehensive income (loss) before reclassifications	864		(32)		832
Amounts reclassified from accumulated other comprehensive income	348		—		348
Net current-period other comprehensive income (loss)	1,212		(32)		1,180
Ending balance	$	4,344	$	(64)	$	4,280

Nine Months Ended September 30, 2019 (in thousands)	Unrealized Gains and Losses On Available-for-Sale Securities		Postretirement Benefits Plans		Total
Beginning balance at January 1	$	981	$	(32)	$	949
Other comprehensive income before reclassifications	2,246		—		2,246
Amounts reclassified from accumulated other comprehensive income	—		—		—
Net current-period other comprehensive income	2,246		—		2,246
Ending balance	$	3,227	$	(32)	$	3,195

Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income

The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and nine-month periods ended September 30, 2020:

Three Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	—
Other-than-temporary impairments	—
Total	$	—	Net realized investment gains
Tax	—		Provision for income taxes
Net of Tax	$	—
Reclassifications for the period	$	—

Nine Months Ended September 30, 2020 (in thousands)
Details about Accumulated Other Comprehensive Income Components (in thousands)	Amount Reclassified from Accumulated Other Comprehensive Income		Affected Line Item in the Consolidated Statements of Operations
Unrealized gains (losses) on available-for-sale securities:
Net realized gain on investments	$	30
Other-than-temporary impairments	(482)
Total	$	(452)	Net realized investment gains
Tax	104		Provision for income taxes
Net of Tax	$	(348)
Reclassifications for the period	$	(348)

There were no amounts reclassified out of each component of accumulated other comprehensive income for either the three- or nine-month periods ended September 30, 2019.

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Revenue from contracts with customers:
Escrow and other title-related fees	$	2,154	$	2,393	$	6,014	$	5,616
Non-title services	1,954		2,539		6,476		7,444
Total revenue from contracts with customers	4,108		4,932		12,490		13,060
Other sources of revenue:
Net premiums written	57,205		40,169		143,311		103,942
Investment-related revenue	6,135		2,693		3,038		13,066
Other	185		145		443		550
Total revenues	$	67,633	$	47,939	$	159,282	$	130,618

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Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Lease, Cost

Lease expense is included in office and technology expenses in the Consolidated Statements of Operations. Information regarding the Company’s operating leases follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating leases	$	327	$	312	$	968	$	944
Short-term leases (b)	44		30		110		103
Lease expense	$	371	$	342	$	1,078	$	1,047
Sub-lease income	—		—		—		—
Lease cost	$	371	$	342	$	1,078	$	1,047

(b) Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.

Lessee, Operating Lease Liability, Current and Non-current

Components of the operating lease liability presented on the Consolidated Balance Sheets are as follows:

(in thousands)	As of September 30, 2020		As of December 31, 2019
Current:
Operating lease liabilities	$	1,097	$	1,048
Non-current:
Operating lease liabilities	2,840		3,454
Total operating lease liabilities	$	3,937	$	4,502

Lessee, Operating Lease, Liability, Maturity

The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 2020, are summarized as follows:

Year Ended (in thousands)
2020	$	324
2021	1,195
2022	975
2023	685
2024	515
Thereafter	649
Total undiscounted payments	$	4,343
Less: present value adjustment	(406)
Operating lease liabilities	$	3,937

Operating Lease Other Information

Supplemental lease information is as follows:

	As of September 30, 2020		As of December 31, 2019
Weighted average remaining lease term (years)	4.40		4.84
Weighted average discount rate	4.6	%	4.6	%

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Reserves For Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Liability for title claims and claims adjustment expense	$ 33,532	$ 31,333	$ 31,729
Provision charged to operations	4,452	3,532
Payments of claims, net of recoveries	$ (2,253)	$ (3,928)

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Reserves For Claims Summary Of The Company's Loss Reserves (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]
Known title claims	$ 3,993	$ 3,799
IBNR	29,539	27,534
Total reserve for claims	$ 33,532	$ 31,333	$ 31,729
% of known title reserves	11.90%	12.10%
% of IBNR	88.10%	87.90%
% of total loss reserves	100.00%	100.00%

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Earnings Per Common Share And Share Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Earnings Per Common Share And Share Awards [Line Items]
Anti-dilutive shares excluded from computation of diluted earnings per share	20			14			20	14
Number of SARs granted where exercise price was less than market price on date of grant							0	0
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Net of Forfeitures		4	7		4
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Weighted Average Grant Date Fair Value							$ 34.45	$ 51.88
SARs
Earnings Per Common Share And Share Awards [Line Items]
SARs expiration period							7 years
Share-based Payment Arrangement, Expense							$ 192	$ 205
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 246						$ 246
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Net of Forfeitures						0	11		4
Minimum | SARs
Earnings Per Common Share And Share Awards [Line Items]
SARs vesting period							1 year
Maximum | SARs
Earnings Per Common Share And Share Awards [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award							250
SARs vesting period							5 years

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Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 15,301	$ 7,952	$ 22,785	$ 20,078
Weighted average common shares outstanding - Basic	1,892	1,889	1,892	1,888
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled)	3	6	4	8
Weighted average common shares outstanding - Diluted	1,895	1,895	1,896	1,896
Basic Earnings per Common Share	$ 8.09	$ 4.21	$ 12.04	$ 10.63
Diluted Earnings per Common Share	$ 8.07	$ 4.20	$ 12.02	$ 10.59

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Earnings Per Common Share And Share Awards Summary Of Share-Based Award Transactions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended	12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, SARS, Outstanding [Roll Forward]
Number Of Shares, SARs granted	4	7	4
SARs
Share-based Compensation Arrangement by Share-based Payment Award, SARS, Outstanding [Roll Forward]
Number Of Shares, Outstanding Beginning Balance		30		28	30	28
Number Of Shares, SARs granted				0	11	4
Number Of Shares, SARS exercised					(8)	(2)
Number Of Shares, Outstanding Ending Balance					33	30	28
Number Of Shares, Exercisable as of September 30, 2020					26
Number Of Shares, Unvested as of September 30, 2020					7
Share-based Compensation Arrangement by Share-based Payment Award, SARs, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Outstanding Beginning Balance		$ 124.13		$ 110.27	$ 124.13	$ 110.27
Weighted Average Exercise Price, SARs granted					135.05	162.81
Weighted Average Exercise Price, SARS exercised					75.75	50.50
Weighted Average Exercise Price, Outstanding Ending Balance					138.55	$ 124.13	$ 110.27
Weighted Average Exercise Price, Exercisable as of September 30, 2020					140.02
Weighted Average Exercise Price, Unvested as of September 30, 2020					$ 133.21
Average Remaining Contractual Term, Outstanding Beginning Balance					4 years 4 months 28 days	3 years 6 months 10 days	3 years 7 months 20 days
Average Remaining Contractual Term, Outstanding Ending Balance					4 years 4 months 28 days	3 years 6 months 10 days	3 years 7 months 20 days
Average Remaining Contractual Term, Exercisable as of September 30, 2020					3 years 9 months 29 days
Average Remaining Contractual Term, Unvested as of September 30, 2020					6 years 6 months 7 days
Aggregate Intrinsic Value, Outstanding Beginning Balance		$ 1,352		$ 2,019	$ 1,352	$ 2,019
Aggregate Intrinsic Value, Outstanding Ending Balance					496	$ 1,352	$ 2,019
Aggregate Intrinsic Value, Exercisable as of September 30, 2020					480
Aggregate Intrinsic Value, Unvested as of September 30, 2020					$ 16

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Earnings Per Common Share And Share Awards Share-Based Valuation Assumptions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	28.50%	30.20%
Interest rate	0.70%	2.30%
Yield rate	1.20%	1.00%
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Weighted Average Grant Date Fair Value	$ 34.45	$ 51.88
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	7 years

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Segment Information Selected Financial Information By Segment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) segment	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			1
Insurance And Other Services Revenue	$ 61,498	$ 45,246	$ 156,244	$ 117,552
Investment income	5,949	2,270	2,711	11,867
Net realized gain (loss) on investments	186	423	327	1,199
Total Revenues	67,633	47,939	159,282	130,618
Operating expenses	48,776	37,920	131,032	105,366
Income (loss) before income taxes	18,857	10,019	28,250	25,252
Total assets	289,745	266,114	289,745	266,114	$ 263,893
Title Insurance
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	61,809	44,079	154,820	113,999
Investment income	5,627	1,879	2,525	9,780
Net realized gain (loss) on investments	(263)	346	327	1,102
Total Revenues	67,173	46,304	157,672	124,881
Operating expenses	49,260	37,201	129,777	102,792
Income (loss) before income taxes	17,913	9,103	27,895	22,089
Total assets	213,152	191,436	213,152	191,436
All Other
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	2,176	2,851	7,149	8,373
Investment income	322	391	186	2,087
Net realized gain (loss) on investments	449	77	0	97
Total Revenues	2,947	3,319	7,335	10,557
Operating expenses	1,858	2,269	6,543	6,991
Income (loss) before income taxes	1,089	1,050	792	3,566
Total assets	76,593	74,678	76,593	74,678
Intersegment Eliminations
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	(2,487)	(1,684)	(5,725)	(4,820)
Investment income	0	0	0	0
Net realized gain (loss) on investments	0	0	0	0
Total Revenues	(2,487)	(1,684)	(5,725)	(4,820)
Operating expenses	(2,342)	(1,550)	(5,288)	(4,417)
Income (loss) before income taxes	(145)	(134)	(437)	(403)
Total assets	$ 0	$ 0	$ 0	$ 0

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Retirement Agreements And Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Retirement Benefits [Abstract]
Liability for employee benefits and other payments	$ 12,400		$ 12,400		$ 12,200
Defined Benefit Plan Disclosure [Line Items]
Service cost - benefits earned during the year	0	$ 0	0	$ 0
Interest cost on the projected benefit obligation	7	8	23	25
Amortization of unrecognized losses	0	0	0	0
Net periodic benefits costs	$ 7	$ 8	$ 23	$ 25

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Investments In Securities and Fair Value (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1		6
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities	$ 482	$ 0
Impaired amount for measurement alternative investments	$ 0		$ 0

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Investments In Securities and Fair Value (Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities) (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	$ 92,912		$ 100,667
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities	482	$ 0
Impairment amount for cost-method investments	0		0
Government obligations
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	24,060		25,161
Available-for-sale, at fair value, Gross Unrealized Gains	152		6
Available-for-sale, at fair value, Gross Unrealized Losses	0		4
Available-for-sale, at fair value, Estimated Fair Value	24,212		25,163
General obligations of U.S. states, territories and political subdivisions
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	17,569		18,887
Available-for-sale, at fair value, Gross Unrealized Gains	1,245		843
Available-for-sale, at fair value, Gross Unrealized Losses	0		0
Available-for-sale, at fair value, Estimated Fair Value	18,814		19,730
Special revenue issuer obligations of U.S. states, territories and political subdivisions
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	47,305		51,188
Available-for-sale, at fair value, Gross Unrealized Gains	3,098		2,530
Available-for-sale, at fair value, Gross Unrealized Losses	3		20
Available-for-sale, at fair value, Estimated Fair Value	$ 50,400		$ 53,698
Number of Special Revenue Bonds	50		50
Corporate debt securities
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	$ 3,978		$ 5,431
Available-for-sale, at fair value, Gross Unrealized Gains	1,024		621
Available-for-sale, at fair value, Gross Unrealized Losses	0		5
Available-for-sale, at fair value, Estimated Fair Value	5,002		6,047
Total fixed maturities
Debt and Equity Securities, FV-NI [Line Items]
Fixed maturities, available-for-sale, amortized cost	92,912		100,667
Available-for-sale, at fair value, Gross Unrealized Gains	5,519		4,000
Available-for-sale, at fair value, Gross Unrealized Losses	3		29
Available-for-sale, at fair value, Estimated Fair Value	$ 98,428		$ 104,638

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Investments In Securities and Fair Value (Schedule Of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 31,052
Due after one year through five years, Amortized Cost	42,795
Due five years through ten years, Amortized Cost	18,250
Due after ten years, Amortized Cost	815
Total, Amortized Cost	92,912
Due in one year or less, Fair Value	31,253
Due after one year through five years, Fair Value	46,050
Due five years through ten years, Fair Value	19,741
Due after ten years, Fair Value	1,384
Total, Fair Value	$ 98,428	$ 104,638

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Investments In Securities and Fair Value (Schedule Of Unrealized Losses On Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Government obligations
Debt Securities, Available-for-sale [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value		$ 12,045
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses		(4)
Total temporarily impaired securities, 12 Months or Longer, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Total temporarily impaired securities, Total Fair Value		12,045
Total temporarily impaired securities, Unrealized Losses		(4)
Special revenue issuer obligations of U.S. states, territories and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	$ 0	1,101
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	0	(17)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	1,103	1,118
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(3)	(3)
Total temporarily impaired securities, Total Fair Value	1,103	2,219
Total temporarily impaired securities, Unrealized Losses	(3)	(20)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value		413
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses		(5)
Total temporarily impaired securities, 12 Months or Longer, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Total temporarily impaired securities, Total Fair Value		413
Total temporarily impaired securities, Unrealized Losses		(5)
Total temporarily impaired securities
Debt Securities, Available-for-sale [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	0	13,559
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	0	(26)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	1,103	1,118
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(3)	(3)
Total temporarily impaired securities, Total Fair Value	1,103	14,677
Total temporarily impaired securities, Unrealized Losses	$ (3)	$ (29)

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Investments In Securities and Fair Value (Schedule of Equity Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities, Cost	$ 34,180	$ 33,570
Equity Securities, Estimated Fair Value	58,851	61,108
Common stocks
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Securities, Cost	34,180	33,570
Equity Securities, Estimated Fair Value	$ 58,851	$ 61,108

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Investments In Securities and Fair Value (Schedule Of Gross Realized Gains And Losses On Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Securities, Available-for-sale [Line Items]
Total, gross realized gains			$ 2,550	$ 1,385
Total, gross realized losses			(2,250)	(188)
Net realized gains from securities			300	1,197
Gain on other investments			32	2
Losses on Other Assets and Investments			(5)	0
Total			27	2
Net realized investment gains	$ 186	$ 423	327	1,199
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total, gross realized gains			30	0
Common stocks
Debt Securities, Available-for-sale [Line Items]
Equity securities, realized gain			2,520	1,385
Equity securities, realized loss			(1,768)	(188)
Other-than-temporary impairment of securities
Debt Securities, Available-for-sale [Line Items]
Total, gross realized losses			$ (482)	$ 0

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Investments In Securities and Fair Value (Schedule of Variable Interest Entities) (Details) - Other investments $ in Thousands	Sep. 30, 2020 USD ($)
Variable Interest Entity, Not Primary Beneficiary [Line Items]
Carrying Value	$ 12,482
Estimated Fair Value	13,614
Maximum Potential Loss (a)	21,398
Tax Credit LPs
Variable Interest Entity, Not Primary Beneficiary [Line Items]
Carrying Value	267
Estimated Fair Value	267
Maximum Potential Loss (a)	1,768
Real Estate LLCs or LPs
Variable Interest Entity, Not Primary Beneficiary [Line Items]
Carrying Value	5,090
Estimated Fair Value	6,680
Maximum Potential Loss (a)	6,675
Small Business Investment LPs
Variable Interest Entity, Not Primary Beneficiary [Line Items]
Carrying Value	7,125
Estimated Fair Value	6,667
Maximum Potential Loss (a)	$ 12,955

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Investments In Securities and Fair Value (Schedule Of Fair Value Assets Measured On Recurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 98,428	$ 104,638
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	24,212	24,160
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	74,216	80,478
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
General obligations of U.S. states, territories and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	93,426	98,591
General obligations of U.S. states, territories and political subdivisions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	24,212	24,160
General obligations of U.S. states, territories and political subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	69,214	74,431
General obligations of U.S. states, territories and political subdivisions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	5,002	6,047
Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	0	0
Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	5,002	6,047
Corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 0	$ 0

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Investments in Securities and Fair Value (Schedule of Carrying Value and Fair Value of Financial Assets Disclosed) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 41,534	$ 25,949
Accrued interest and dividends	1,187	1,033
Equity Securities, Estimated Fair Value	58,851	61,108
Money market funds, Treasury bills and certificates of deposit	22,516	13,134
Equity investments in unconsolidated affiliates, equity method	6,541	6,083
Equity investments in unconsolidated affiliates, measurement alternative	8,288	7,899	$ 6,589
Assets, fair value disclosure	138,917	115,206
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	41,534	25,949
Accrued interest and dividends	1,187	1,033
Equity Securities, Estimated Fair Value	58,851	61,108
Money market funds, Treasury bills and certificates of deposit	22,516	13,134
Equity investments in unconsolidated affiliates, equity method	0	0
Equity investments in unconsolidated affiliates, measurement alternative	0	0
Assets, fair value disclosure	124,088	101,224
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Accrued interest and dividends	0	0
Equity Securities, Estimated Fair Value	0	0
Money market funds, Treasury bills and certificates of deposit	0	0
Equity investments in unconsolidated affiliates, equity method	0	0
Equity investments in unconsolidated affiliates, measurement alternative	0	0
Assets, fair value disclosure	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Accrued interest and dividends	0	0
Equity Securities, Estimated Fair Value	0	0
Money market funds, Treasury bills and certificates of deposit	0	0
Equity investments in unconsolidated affiliates, equity method	6,541	6,083
Equity investments in unconsolidated affiliates, measurement alternative	8,288	7,899
Assets, fair value disclosure	$ 14,829	$ 13,982

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Investments In Securities and Fair Value (Schedule of Measurement Alternative Investments) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Measurement Alternative Investments
Beginning of Period	$ 7,899	$ 6,589
Amounts Impaired	0	0
Observable Changes	0	0
Purchases and Additional Commitments Paid	642	2,241
Sales, Returns of Capital and Other Reductions	(253)	(931)
End of Period	$ 8,288	$ 7,899

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Commitments And Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Like-kind exchange deposits and reverse exchange property	$ 179.5	$ 214.6

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Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Other investments	$ 14,829	$ 13,982
Premiums and fees receivable	17,291	12,523
Title Insurance Agencies
Related Party Transaction [Line Items]
Other investments	6,541	6,083
Premiums and fees receivable	$ 635	$ 410

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Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Related Party Transaction [Line Items]
Net premiums written	$ 57,205	$ 40,169	$ 143,311	$ 103,942
Other	185	145	443	550
Commissions to agents	29,068	19,928	73,344	51,261
Title Insurance Agencies
Related Party Transaction [Line Items]
Net premiums written	6,615	4,626	16,725	11,674
Other	1,104	779	2,241	1,866
Commissions to agents	$ 4,486	$ 3,056	$ 11,279	$ 7,702

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Intangible Assets, Goodwill and Title Plant (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Business Combinations [Abstract]
Impairment of Intangible Assets (Excluding Goodwill)	$ 0	$ 0
Goodwill	4,400
Title Plants	690
Goodwill, Impairment Loss	$ 0	$ 0

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Intangible Assets, Goodwill and Title Plant Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule of Finite-Lived Intangible Assets [Abstract]
Referral Relationships	$ 6,416	$ 6,416
Non-compete Agreements	1,406	1,406
Tradename	560	560
Identifiable Intangible Assets, Gross	8,382	8,382
Accumulated Amortization	(2,835)	(2,456)
Identifiable Intangible Assets, Net	$ 5,547	$ 5,926

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Business Combinations, Intangible Assets and Goodwill, Schedule of Aggregate Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Business Combinations [Abstract]
2020	$ 126
2021	562
2022	525
2023	525
2024	473
Thereafter	3,336
Identifiable Intangible Assets, Net	$ 5,547	$ 5,926

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Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ 3,100
Other comprehensive income	$ 50	$ 341	1,180	$ 2,246
Ending balance	4,280		4,280
Unrealized Gains and Losses On Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	4,294	2,886	3,132	981
Other comprehensive income before reclassifications	50	341	864	2,246
Amounts reclassified from accumulated other comprehensive income	0	0	348	0
Other comprehensive income	50	341	1,212	2,246
Ending balance	4,344	3,227	4,344	3,227
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(64)	(32)	(32)	(32)
Other comprehensive income before reclassifications	0	0	(32)	0
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Other comprehensive income	0	0	(32)	0
Ending balance	(64)	(32)	(64)	(32)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	4,230	2,854	3,100	949
Other comprehensive income before reclassifications	50	341	832	2,246
Amounts reclassified from accumulated other comprehensive income	0	0	348	0
Other comprehensive income	50	341	1,180	2,246
Ending balance	$ 4,280	$ 3,195	$ 4,280	$ 3,195

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Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized gain (loss) on investments	$ 186	$ 423	$ 327	$ 1,199
Income (loss) before income taxes	(18,857)	(10,019)	(28,250)	(25,252)
Tax	3,556	2,067	5,465	5,174
Net Income	(15,301)	(7,952)	(22,785)	(20,078)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net Income	0	$ 0	(348)	$ 0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-For-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized gain (loss) on investments	0		30
Other-than-temporary impairments	0		(482)
Income (loss) before income taxes	0		(452)
Tax	0		104
Net Income	$ 0		$ (348)

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Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 4,108	$ 4,932	$ 12,490	$ 13,060
Total Revenues	67,633	47,939	159,282	130,618
Escrow and other title-related fees
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	2,154	2,393	6,014	5,616
Non-title services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,954	2,539	6,476	7,444
Net premiums written
Disaggregation of Revenue [Line Items]
Other sources of revenue	57,205	40,169	143,311	103,942
Investment-related revenue
Disaggregation of Revenue [Line Items]
Other sources of revenue	6,135	2,693	3,038	13,066
Other
Disaggregation of Revenue [Line Items]
Other sources of revenue	$ 185	$ 145	$ 443	$ 550

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Leases Operating Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Lease expense	$ 327	$ 312	$ 968	$ 944
Short-term leases	44	30	110	103
Sub-lease income	0	0	0	0
Lease cost	$ 371	$ 342	$ 1,078	$ 1,047

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Leases Current and Noncurrent Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease, liability, current	$ 1,097	$ 1,048
Operating lease, liability, noncurrent	2,840	3,454
Operating lease, liability	$ 3,937	$ 4,502

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Leases Schedule of Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
2020	$ 324
2021	1,195
2022	975
2023	685
2024	515
Thereafter	649
Total undiscounted payments	4,343
Less: present value adjustment	(406)
Operating lease, liability	$ 3,937	$ 4,502

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Leases Other Information (Details)	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted average remaining lease term (years)	4 years 4 months 24 days	4 years 10 months 2 days
Weighted average discount rate	4.60%	4.60%