Executive Summary

Q1 2025 revenue rose 5.8% year over year to $56.6M, driven by a 15.3% increase in net premiums written; however, diluted EPS declined to $1.67 from $2.40 as operating expenses rose and net investment results turned negative .
Mix and volume drove higher agent commissions, while fixed overhead declined; management highlighted cost reduction initiatives and continued market expansion as positives .
On a non-GAAP basis, adjusted income before income taxes increased to $5.2M vs. $3.4M in the prior-year quarter, reflecting stronger core operations excluding investment volatility .
The Board maintained the quarterly dividend at $0.46 per share (Mar 10 and May 21 declarations), underscoring steady capital return despite investment-driven earnings variability .

What Went Well and What Went Wrong

Premium growth: Net premiums written increased 15.3% YoY, reflecting “higher activity levels across our key markets” and ongoing share gains; revenues rose 5.8% YoY to $56.6M .
Core profitability ex-investments: Adjusted income before income taxes rose to $5.2M from $3.4M YoY (non-GAAP), signaling improved operating performance despite investment headwinds .
Cost discipline and claims: Management noted fixed overhead was down YoY and provision for claims declined due to favorable development on known claims; personnel expense also declined slightly YoY .

Investment volatility: Net investment swung to a $1.2M loss (vs. +$2.4M YoY), driven by declines in the fair value of equity securities, weighing on EPS (to $1.67 from $2.40 YoY) .
Higher commissions with mix and volume: Operating expenses rose 10.2% YoY to $52.5M, largely from higher agent commissions tied to agent business growth; commissions reached $24.9M .
Sequential slowdown from seasonally strong Q4: Revenue fell from $70.6M in Q4 2024 to $56.6M, and diluted EPS declined from $4.41 to $1.67, reflecting seasonal volume and less favorable investment results .

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	53.459	68.829	70.628	56.565
Net Income ($M)	4.525	9.315	8.362	3.171
Diluted EPS ($)	2.40	4.92	4.41	1.67
Operating Expenses ($M)	47.662	57.241	59.817	52.512
Net Investment (Losses)/Gains ($M)	2.422	0.976	0.043	(1.179)
Adjusted Revenues (non-GAAP) ($M)	51.037	67.853	70.585	57.744
Adjusted Income Before Income Taxes (non-GAAP) ($M)	3.375	10.612	10.768	5.232
Net Income Margin (%)	8.5%	13.5%	11.8%	5.6%

Segment breakdown – Net Premiums Written (NPW)

Period	Direct ($M)	Direct (%)	Agency ($M)	Agency (%)	Total NPW ($M)
Q1 2024	13.321	33.2%	26.859	66.8%	40.180
Q3 2024	16.267	29.7%	38.588	70.3%	54.855
Q4 2024	15.507	26.8%	42.306	73.2%	57.813
Q1 2025	13.534	29.2%	32.811	70.8%	46.345

KPIs

KPI	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Commissions to Agents ($M)	19.870	29.089	31.834	24.857
Commission Rate (% of NPW)	49.5%	53.0%	55.1%	53.6%
Provision for Claims ($M)	0.910	1.668	1.047	0.323
Claims Ratio (% of NPW)	2.3%	3.0%	1.8%	0.7%

Estimates (S&P Global)

Metric	Q1 2025 Consensus	Q1 2025 Actual
Revenue	N/A (no consensus available)*	$56.565M
Diluted EPS	N/A (no consensus available)*	$1.67

*Values retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	FY 2025	None provided	None provided	N/A
Dividend per share	Q1 2025 distribution cycle	$0.46 (prior declaration)	$0.46 (declared May 21, 2025)	Maintained

No earnings call transcript was found for Q1 2025; analysis reflects management’s press releases.

Topic	Q3 2024 (Prev-2)	Q4 2024 (Prev-1)	Q1 2025 (Current)	Trend
Market activity & rates	Activity “stabilized”; volumes higher vs Q2; Fed began easing	Lower mortgage rates aided activity; revenue highest in 2+ years	“Modest improvement” in market conditions; higher activity in key markets	Improving activity from trough
Expense control/overhead	Overhead down YoY from cost-saving measures	Overhead flat YoY aided profitability	Fixed overhead down YoY; cost reductions ongoing	Sustained discipline
Investment gains/losses	Positive change in fair value drove gains	Net investment gains minimal; yoy decline vs prior-year Q4	Net investment losses on equity fair value declines	Volatile; negative in Q1
Expansion in key markets	Texas/Florida expansion boosted NPW	Ongoing expansion initiatives	“Expand our market presence in key markets”	Continuing
Claims/reserving	Provision moderate; YoY comp manageable	Provision modest; stable	Provision down on favorable development	Favorable in Q1

“We were pleased to see an increase in premiums written for the quarter, reflecting modest improvement in market conditions, as well as the results of ongoing efforts to expand our market presence in key markets. Expenses were up in total due to higher commissions resulting from an increase in volume, but fixed overhead costs were down from the prior year period due to the effects of ongoing cost-saving measures.” — Chairman J. Allen Fine .
“Positive changes in the estimated fair value of equity security investments resulted in higher net investment gains compared to the prior year period.” (FY 2024 summary, Q4 release) .

No earnings call transcript was available; no Q&A highlights to report (company disclosures reviewed were 8-K/press releases) .

S&P Global consensus estimates for Q1 2025 EPS and revenue were not available for ITIC; therefore, a formal beat/miss vs. estimates cannot be determined. Values retrieved from S&P Global.
Reported results: revenue $56.565M and diluted EPS $1.67 for Q1 2025 .

Core operations improved YoY ex-investment volatility: adjusted pre-tax income rose to $5.2M vs. $3.4M, supported by 15.3% NPW growth and cost controls .
Investment portfolio marks were a headwind this quarter (−$1.179M), a known swing factor for quarterly EPS; monitor equity market sensitivity given historical volatility across recent quarters .
Commission intensity remains elevated with the agent channel at ~71% of NPW; commission rate was ~54% of NPW in Q1 (vs. ~50% in Q1 2024), highlighting the importance of mix and pricing .
Claims environment was favorable (claims ratio ~0.7%) with positive development; if sustained, this supports margin resilience even in mixed top-line quarters .
Sequential step-down from seasonally strong Q4 was expected; watch for volume normalization through the spring/summer selling season and interest rate path as catalysts for NPW trajectory .
Dividend maintained at $0.46 per share, signaling confidence in capital strength and cash flow through cycles .
With no Street estimates, stock reactions may hinge on disclosed operating cadence (premium growth, mix, claims, expenses) and external market marks; quarters with favorable investment results have shown stronger reported EPS in prior periods .

Sources: Q1 2025 press release and 8-K with Exhibit 99.1, prior Q3/Q4 2024 press releases, and dividend announcements .