v2.4.1.9
Document And Entity Information
3 Months Ended
Mar. 31, 2015
Apr. 15, 2015
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2015  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2015  
Entity Registrant Name INVESTORS TITLE CO  
Entity Central Index Key 0000720858  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   2,007,895dei_EntityCommonStockSharesOutstanding
v2.4.1.9
Consolidated Balance Sheets (USD $)
Mar. 31, 2015
Dec. 31, 2014
Investments in securities:    
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015: $101,229,832; 2014: $104,421,050) $ 106,134,445us-gaap_AvailableForSaleSecuritiesDebtSecurities $ 109,048,290us-gaap_AvailableForSaleSecuritiesDebtSecurities
Equity securities, available-for-sale, at fair value (cost: 2015: $24,349,105; 2014: $24,128,753) 39,476,921us-gaap_AvailableForSaleSecuritiesEquitySecurities 39,254,981us-gaap_AvailableForSaleSecuritiesEquitySecurities
Short-term investments 4,400,330us-gaap_OtherShortTermInvestments 2,576,993us-gaap_OtherShortTermInvestments
Other investments 7,818,850us-gaap_OtherInvestments 8,530,929us-gaap_OtherInvestments
Total investments 157,830,546us-gaap_Investments 159,411,193us-gaap_Investments
Cash and cash equivalents 15,639,072us-gaap_CashAndCashEquivalentsAtCarryingValue 15,826,515us-gaap_CashAndCashEquivalentsAtCarryingValue
Premium and fees receivable 8,239,189us-gaap_PremiumsAndOtherReceivablesNet 8,544,183us-gaap_PremiumsAndOtherReceivablesNet
Accrued interest and dividends 1,313,255us-gaap_AccruedInvestmentIncomeReceivable 1,063,837us-gaap_AccruedInvestmentIncomeReceivable
Prepaid expenses and other assets 8,130,547us-gaap_PrepaidExpenseAndOtherAssets 7,732,677us-gaap_PrepaidExpenseAndOtherAssets
Property, net 5,844,301us-gaap_PropertyPlantAndEquipmentNet 5,460,805us-gaap_PropertyPlantAndEquipmentNet
Total Assets 196,996,910us-gaap_Assets 198,039,210us-gaap_Assets
Liabilities:    
Reserves for claims 37,063,000us-gaap_LiabilityForTitleClaimsAndClaimsAdjustmentExpense 36,677,000us-gaap_LiabilityForTitleClaimsAndClaimsAdjustmentExpense
Accounts payable and accrued liabilities 15,480,067us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent 18,290,819us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Current income taxes payable 287,261us-gaap_AccruedIncomeTaxes 92,192us-gaap_AccruedIncomeTaxes
Deferred income taxes, net 5,812,694us-gaap_DeferredTaxLiabilities 5,415,493us-gaap_DeferredTaxLiabilities
Total liabilities 58,643,022us-gaap_Liabilities 60,475,504us-gaap_Liabilities
Commitments and Contingencies 0us-gaap_CommitmentsAndContingencies 0us-gaap_CommitmentsAndContingencies
Stockholders' Equity:    
Preferred stock (1,000,000 authorized shares; no shares issued) 0us-gaap_PreferredStockValue 0us-gaap_PreferredStockValue
Common stock - no par value (10,000,000 authorized shares; 2,010,426 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company's subsidiary) 1us-gaap_CommonStockValue 1us-gaap_CommonStockValue
Retained earnings 125,317,641us-gaap_RetainedEarningsAccumulatedDeficit 124,707,196us-gaap_RetainedEarningsAccumulatedDeficit
Accumulated other comprehensive income 13,036,246us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax 12,856,509us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
Total stockholders' equity 138,353,888us-gaap_StockholdersEquity 137,563,706us-gaap_StockholdersEquity
Total Liabilities and Stockholders' Equity $ 196,996,910us-gaap_LiabilitiesAndStockholdersEquity $ 198,039,210us-gaap_LiabilitiesAndStockholdersEquity
v2.4.1.9
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]    
Fixed maturities, available-for-sale, amortized cost $ 101,229,832us-gaap_AvailableForSaleSecuritiesAmortizedCost $ 104,421,050us-gaap_AvailableForSaleSecuritiesAmortizedCost
Equity securities, available-for-sale, cost $ 24,349,105us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis $ 24,128,753us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis
Preferred stock, shares authorized 1,000,000us-gaap_PreferredStockSharesAuthorized 1,000,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, shares issued 0us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Common stock, no par value $ 0us-gaap_CommonStockNoParValue $ 0us-gaap_CommonStockNoParValue
Common stock, shares authorized 10,000,000us-gaap_CommonStockSharesAuthorized 10,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued 2,010,426us-gaap_CommonStockSharesIssued 2,023,270us-gaap_CommonStockSharesIssued
Common stock, shares outstanding 2,010,426us-gaap_CommonStockSharesOutstanding 2,023,270us-gaap_CommonStockSharesOutstanding
Common stock, held by Company's subsidiary 291,676itic_CommonStockHeldByCompanysSubsidiary 291,676itic_CommonStockHeldByCompanysSubsidiary
v2.4.1.9
Consolidated Statements Of Income (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenues:    
Net premiums written $ 24,962,041us-gaap_PremiumsWrittenNet $ 24,909,252us-gaap_PremiumsWrittenNet
Investment income - interest and dividends 1,178,039us-gaap_InvestmentIncomeInterestAndDividend 1,026,416us-gaap_InvestmentIncomeInterestAndDividend
Net realized gain on investments 14,803us-gaap_GainLossOnInvestments 492,137us-gaap_GainLossOnInvestments
Other 2,146,926us-gaap_OtherIncome 2,026,269us-gaap_OtherIncome
Total Revenues 28,301,809us-gaap_Revenues 28,454,074us-gaap_Revenues
Operating Expenses:    
Commissions to agents 14,596,539us-gaap_InsuranceCommissions 15,456,278us-gaap_InsuranceCommissions
Provision for claims 786,612us-gaap_PolicyholderBenefitsAndClaimsIncurredNet 2,375,383us-gaap_PolicyholderBenefitsAndClaimsIncurredNet
Salaries, employee benefits and payroll taxes 7,277,449us-gaap_LaborAndRelatedExpense 6,185,761us-gaap_LaborAndRelatedExpense
Office occupancy and operations 1,304,221itic_OfficeOccupancyAndOperations 1,180,327itic_OfficeOccupancyAndOperations
Business development 486,975us-gaap_BusinessDevelopment 517,894us-gaap_BusinessDevelopment
Filing fees, franchise and local taxes 216,643itic_FilingFeesFranchiseAndLocalTaxes 189,600itic_FilingFeesFranchiseAndLocalTaxes
Premium and retaliatory taxes 476,591itic_PremiumAndRetaliatoryTaxes 294,474itic_PremiumAndRetaliatoryTaxes
Professional and contract labor fees 584,107us-gaap_ProfessionalFees 688,058us-gaap_ProfessionalFees
Other 203,548us-gaap_OtherCostAndExpenseOperating 209,784us-gaap_OtherCostAndExpenseOperating
Total Operating Expenses 25,932,685us-gaap_BenefitsLossesAndExpenses 27,097,559us-gaap_BenefitsLossesAndExpenses
Income before Income Taxes 2,369,124us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 1,356,515us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
Provision for Income Taxes 643,000us-gaap_IncomeTaxExpenseBenefit 371,000us-gaap_IncomeTaxExpenseBenefit
Net Income 1,726,124us-gaap_ProfitLoss 985,515us-gaap_ProfitLoss
Net Loss Attributable to Redeemable Noncontrolling Interest 0us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 923us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest
Net Income Attributable to the Company $ 1,726,124us-gaap_NetIncomeLoss $ 986,438us-gaap_NetIncomeLoss
Basic Earnings per Common Share $ 0.86us-gaap_EarningsPerShareBasic $ 0.48us-gaap_EarningsPerShareBasic
Weighted Average Shares Outstanding – Basic 2,012,738us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 2,037,164us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
Diluted Earnings per Common Share $ 0.86us-gaap_EarningsPerShareDiluted $ 0.48us-gaap_EarningsPerShareDiluted
Weighted Average Shares Outstanding – Diluted 2,018,504us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 2,043,759us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding
Cash Dividends Paid per Common Share $ 0.08us-gaap_CommonStockDividendsPerShareCashPaid $ 0.08us-gaap_CommonStockDividendsPerShareCashPaid
v2.4.1.9
Consolidated Statements Of Comprehensive Income (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Statement of Comprehensive Income [Abstract]    
Net income $ 1,726,124us-gaap_ProfitLoss $ 985,515us-gaap_ProfitLoss
Other comprehensive income, before tax:    
Amortization related to prior year service cost 1,097us-gaap_OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax 554us-gaap_OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax
Amortization of unrecognized loss 879us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax
Unrealized gains on investments arising during the period 287,765us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax 775,640us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
Reclassification adjustment for sales of securities included in net income (8,803)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax (765,272)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
Reclassification adjustment for write-downs of securities included in net income 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesBeforeTax 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesBeforeTax
Other comprehensive income, before tax 280,938us-gaap_OtherComprehensiveIncomeLossBeforeTax 10,922us-gaap_OtherComprehensiveIncomeLossBeforeTax
Income tax expense related to postretirement health benefits 672us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax 188us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax
Income tax expense related to unrealized gains on investments arising during the period 103,538us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax 269,804us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
Income tax benefit related to reclassification adjustment for sales of securities included in net income (3,009)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax (262,537)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
Income tax expense related to reclassification adjustment for write-downs of securities included in net income 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesTax 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesTax
Net income tax expense on other comprehensive income 101,201us-gaap_OtherComprehensiveIncomeLossTax 7,455us-gaap_OtherComprehensiveIncomeLossTax
Other comprehensive income 179,737us-gaap_OtherComprehensiveIncomeLossNetOfTax 3,467us-gaap_OtherComprehensiveIncomeLossNetOfTax
Comprehensive Income 1,905,861us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest 988,982us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
Comprehensive income attributable to redeemable noncontrolling interest 0us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest 923us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
Comprehensive Income Attributable to the Company $ 1,905,861us-gaap_ComprehensiveIncomeNetOfTax $ 989,905us-gaap_ComprehensiveIncomeNetOfTax
v2.4.1.9
Consolidated Statements Of Stockholders' Equity (USD $)
Total
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income
Balance, beginning of year at Dec. 31, 2013 $ 128,062,154us-gaap_StockholdersEquity $ 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 116,714,749us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 11,347,404us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, beginning of year, shares at Dec. 31, 2013   2,037,135us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income attributable to the Company 986,438us-gaap_NetIncomeLoss   986,438us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Dividends (162,946)us-gaap_DividendsCommonStockCash   (162,946)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Shares of common stock repurchased and retired (in shares)   (500)us-gaap_TreasuryStockSharesAcquired
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Shares of common stock repurchased and retired (39,825)us-gaap_TreasuryStockValueAcquiredCostMethod   (39,825)us-gaap_TreasuryStockValueAcquiredCostMethod
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Stock options and stock appreciation rights exercised (in shares)   196us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Stock options and stock appreciation rights exercised (19)us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross   (19)us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Share-based compensation expense 21,572us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue   21,572us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Amortization related to postretirement health benefits 366itic_AmortizationRelatedToPostretirementHealthBenefits     366itic_AmortizationRelatedToPostretirementHealthBenefits
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Net unrealized gain on investments 3,101us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax     3,101us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Income tax benefit from share-based compensation 2,889us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation   2,889us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Balance, end of year at Mar. 31, 2014 128,873,730us-gaap_StockholdersEquity 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
117,522,858us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
11,350,871us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year, shares at Mar. 31, 2014   2,036,831us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Balance, beginning of year at Dec. 31, 2014 137,563,706us-gaap_StockholdersEquity 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
124,707,196us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
12,856,509us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, beginning of year, shares at Dec. 31, 2014   2,023,270us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income attributable to the Company 1,726,124us-gaap_NetIncomeLoss   1,726,124us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Dividends (160,957)us-gaap_DividendsCommonStockCash   (160,957)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Shares of common stock repurchased and retired (in shares)   (15,036)us-gaap_TreasuryStockSharesAcquired
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Shares of common stock repurchased and retired (1,069,185)us-gaap_TreasuryStockValueAcquiredCostMethod   (1,069,185)us-gaap_TreasuryStockValueAcquiredCostMethod
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Stock options and stock appreciation rights exercised (in shares)   2,192us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Stock options and stock appreciation rights exercised 54,988us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross   54,988us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Share-based compensation expense 32,600us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue   32,600us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Amortization related to postretirement health benefits 1,304itic_AmortizationRelatedToPostretirementHealthBenefits     1,304itic_AmortizationRelatedToPostretirementHealthBenefits
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Net unrealized gain on investments 178,433us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax     178,433us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Income tax benefit from share-based compensation 26,875us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation   26,875us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Balance, end of year at Mar. 31, 2015 $ 138,353,888us-gaap_StockholdersEquity $ 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 125,317,641us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 13,036,246us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year, shares at Mar. 31, 2015   2,010,426us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
v2.4.1.9
Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Statement of Stockholders' Equity [Abstract]    
Common Stock, Dividends, Per Share, Cash Paid $ 0.08us-gaap_CommonStockDividendsPerShareCashPaid $ 0.08us-gaap_CommonStockDividendsPerShareCashPaid
v2.4.1.9
Consolidated Statements Of Cash Flows (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Operating Activities    
Net income $ 1,726,124us-gaap_ProfitLoss $ 985,515us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 220,321us-gaap_Depreciation 202,843us-gaap_Depreciation
Amortization, net 182,230us-gaap_AdjustmentForAmortization 272,617us-gaap_AdjustmentForAmortization
Amortization related to postretirement benefits obligation 1,976itic_CashFlowAmortizationRelatedToPostretirementHealthBenefits 554itic_CashFlowAmortizationRelatedToPostretirementHealthBenefits
Share-based compensation expense related to stock options 32,600us-gaap_ShareBasedCompensation 21,572us-gaap_ShareBasedCompensation
Gain on the disposals of property (18,891)us-gaap_GainLossOnSaleOfPropertyPlantEquipment 0us-gaap_GainLossOnSaleOfPropertyPlantEquipment
Net realized gain on investments (14,803)us-gaap_GainLossOnInvestments (492,137)us-gaap_GainLossOnInvestments
Net earnings from other investments (246,105)itic_EarningsFromOtherInvestments (196,406)itic_EarningsFromOtherInvestments
Provision for claims 786,612us-gaap_PolicyholderBenefitsAndClaimsIncurredNet 2,375,383us-gaap_PolicyholderBenefitsAndClaimsIncurredNet
Provision (benefit) for deferred income taxes 296,000us-gaap_DeferredIncomeTaxExpenseBenefit (4,000)us-gaap_DeferredIncomeTaxExpenseBenefit
Changes in assets and liabilities:    
Decrease in receivables 304,994us-gaap_IncreaseDecreaseInReceivables 1,269,453us-gaap_IncreaseDecreaseInReceivables
(Increase) decrease in other assets (664,709)us-gaap_IncreaseDecreaseInOtherOperatingAssets 46,072us-gaap_IncreaseDecreaseInOtherOperatingAssets
Increase in current income taxes recoverable 0us-gaap_IncreaseDecreaseInIncomeTaxesReceivable (309,273)us-gaap_IncreaseDecreaseInIncomeTaxesReceivable
Decrease in accounts payable and accrued liabilities (2,810,752)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (4,833,772)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Increase in current income taxes payable 195,069us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable 0us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable
Payments of claims, net of recoveries (400,612)itic_PaymentsOfClaimsNetRecoveries (1,270,383)itic_PaymentsOfClaimsNetRecoveries
Net cash used in operating activities (409,946)us-gaap_NetCashProvidedByUsedInOperatingActivities (1,931,962)us-gaap_NetCashProvidedByUsedInOperatingActivities
Investing Activities    
Purchases of available-for-sale securities (241,882)us-gaap_PaymentsToAcquireAvailableForSaleSecurities (2,242,850)us-gaap_PaymentsToAcquireAvailableForSaleSecurities
Purchases of short-term investments (2,184,144)us-gaap_PaymentsToAcquireShortTermInvestments (3,117,062)us-gaap_PaymentsToAcquireShortTermInvestments
Purchases of other investments (346,693)us-gaap_PaymentsToAcquireOtherInvestments (556,563)us-gaap_PaymentsToAcquireOtherInvestments
Proceeds from sales and maturities of available-for-sale securities 3,056,743us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities 3,328,386us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
Proceeds from sales and maturities of short-term investments 360,807us-gaap_ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments 2,102,435us-gaap_ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments
Proceeds from sales and distributions of other investments 1,304,877us-gaap_ProceedsFromSaleOfOtherInvestments 241,977us-gaap_ProceedsFromSaleOfOtherInvestments
Proceeds from sales of other assets 6,000us-gaap_ProceedsFromSaleOfOtherProductiveAssets 0us-gaap_ProceedsFromSaleOfOtherProductiveAssets
Purchases of property (610,926)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (594,507)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Proceeds from sale of property 26,000us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 0us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment
Net cash provided by (used in) investing activities 1,370,782us-gaap_NetCashProvidedByUsedInInvestingActivities (838,184)us-gaap_NetCashProvidedByUsedInInvestingActivities
Financing Activities    
Repurchases of common stock (1,069,185)us-gaap_PaymentsForRepurchaseOfCommonStock (39,825)us-gaap_PaymentsForRepurchaseOfCommonStock
Exercises of stock options and SARs 54,988us-gaap_ProceedsFromStockOptionsExercised (19)us-gaap_ProceedsFromStockOptionsExercised
Distributions to noncontrolling interest 0us-gaap_PaymentsOfDividendsMinorityInterest (64,020)us-gaap_PaymentsOfDividendsMinorityInterest
Excess tax benefits related to exercise of stock options and SARS 26,875us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 2,889us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
Dividends paid (160,957)us-gaap_PaymentsOfDividends (162,946)us-gaap_PaymentsOfDividends
Net cash used in financing activities (1,148,279)us-gaap_NetCashProvidedByUsedInFinancingActivities (263,921)us-gaap_NetCashProvidedByUsedInFinancingActivities
Net Decrease in Cash and Cash Equivalents (187,443)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (3,034,067)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and Cash Equivalents, Beginning of Period 15,826,515us-gaap_CashAndCashEquivalentsAtCarryingValue 23,626,761us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and Cash Equivalents, End of Period 15,639,072us-gaap_CashAndCashEquivalentsAtCarryingValue 20,592,694us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash Paid During the Year for:    
Income tax payments, net 125,000us-gaap_IncomeTaxesPaidNet 681,700us-gaap_IncomeTaxesPaidNet
Non cash net unrealized gain on investments, net of deferred tax provision of $(100,529) and $(7,267) for 2015 and 2014, respectively $ (178,433)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax $ (3,101)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
v2.4.1.9
Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Statement of Cash Flows [Abstract]    
Non cash net unrealized gain on investments, deferred tax provision $ (100,529)itic_DeferredTaxProvisionRelatedToUnrealizedGainLossOnInvestments $ (7,267)itic_DeferredTaxProvisionRelatedToUnrealizedGainLossOnInvestments
v2.4.1.9
Basis Of Presentation And Significant Accounting Policies
3 Months Ended
Mar. 31, 2015
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, 2014 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 generally accepted accounting principles 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. Earnings attributable to the Company's redeemable noncontrolling interest in a majority-owned insurance agency are recorded in the Consolidated Statements of Income. 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 quarter ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Immaterial Classification Correction During the three months ended March 31, 2014, the Company mistakenly included a transaction within unrealized gains on the Consolidated Statements of Comprehensive Income.  Accordingly, the Consolidated Statements of Comprehensive Income have been corrected.  The inclusion of this transaction within the Statements of Comprehensive Income was offsetting by line item, and had no impact on the total comprehensive income attributable to the Company for the three months ended March 31, 2014. The correction did result in an increase to previously reported unrealized gains on investments arising during the period of $179,904, net of tax, a decrease to the reclassification adjustment for sales of securities included in net income of $173,628, net of tax, and a decrease to the reclassification adjustment for write-downs of securities included in net income of $6,276, net of tax. There was no impact to the Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or to the Company’s cash position.

Allowance for Doubtful Accounts – Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable. 

Use of Estimates and Assumptions – The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“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 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 concluded that there were no material subsequent events requiring adjustment to or disclosure in its Consolidated Financial Statements.

Recently Issued Accounting Standards – In February 2015, the Financial Accounting Standards Board (“FASB”) updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. 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 but does not expect it to have a material impact.

In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should 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. For public entities, this update becomes effective for interim and annual reporting periods beginning after December 15, 2016.  The FASB has issued for public comment a proposal that would defer the effective date of the standard by one year. Early adoption is not permitted, although if the FASB proposal passes, public entities are permitted to elect to adopt the amendments on the original effective date. 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 but does not expect it to have a material impact.
v2.4.1.9
Reserves For Claims
3 Months Ended
Mar. 31, 2015
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Reserves For Claims
Reserves for Claims

Transactions in the reserves for claims for the three months ended March 31, 2015 and the year ended December 31, 2014 are summarized as follows:
 
March 31, 2015
 
December 31, 2014
Balance, beginning of period
$
36,677,000

 
$
35,360,000

Provision, charged to operations
786,612

 
5,229,716

Payments of claims, net of recoveries
(400,612
)
 
(3,912,716
)
Ending balance
$
37,063,000

 
$
36,677,000



The total reserve for all reported and unreported losses the Company incurred through March 31, 2015 is represented by the reserves for claims. 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 reserves are adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through March 31, 2015.  Management continually reviews and adjusts its reserve estimates to reflect its loss experience and any new information that becomes available.  Adjustments resulting from such reviews may be significant.

A summary of the Company’s loss reserves, broken down into its components of known title claims and IBNR, follows:
 
March 31, 2015
 
%
 
December 31, 2014
 
%
Known title claims
$
5,412,246

 
14.6
 
$
5,364,645

 
14.6
IBNR
31,650,754

 
85.4
 
31,312,355

 
85.4
Total loss reserves
$
37,063,000

 
100.0
 
$
36,677,000

 
100.0


Claims and losses paid are charged against reserves 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 realizable value, net of any indebtedness on the property.
v2.4.1.9
Earnings Per Common Share And Share Awards
3 Months Ended
Mar. 31, 2015
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 attributable to the Company by the weighted average number of common shares outstanding during the reporting period.  Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans and the weighted average number of common shares outstanding during the reporting period.  Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method.  Under the treasury stock method, when share-based awards are exercised, (a) the exercise price of a share-based award; (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in retained earnings, if any, are assumed to be used to repurchase shares in the current period.  The number of incremental dilutive potential common shares, calculated using the treasury stock method, was 5,766 and 6,595 for the three months ended March 31, 2015 and 2014, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31:
 
Three Months Ended March 31,
 
2015
 
2014
Net income attributable to the Company
$
1,726,124

 
$
986,438

Weighted average common shares outstanding – Basic
2,012,738

 
2,037,164

Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled)
5,766

 
6,595

Weighted average common shares outstanding – Diluted
2,018,504

 
2,043,759

Basic earnings per common share
$
0.86

 
$
0.48

Diluted earnings per common share
$
0.86

 
$
0.48



There were no potential shares excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014, as all share-based awards were "in-the-money."
 
The Company has adopted employee stock award plans under which restricted stock, and options or SARs to acquire shares (not to exceed 500,000 shares) of the Company's stock, may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant.  SARs and options (which have predominantly been incentive stock options) awarded under the plans thus far generally expire in five to ten years from the date of grant and are exercisable and vest: immediately; within one year; or at 10% to 20% per year beginning on the date of grant.  All SARs issued to date have been share-settled only.

A summary of share-based award transactions for all share-based award plans follows:
 
Number
Of Shares
 
Weighted
Average
Exercise
Price
 
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic
Value
Outstanding as of January 1, 2014
19,000

 
$
45.74

 
3.43
 
$
669,610

SARs granted
4,500

 
68.70

 
 
 
 

SARs exercised
(1,500
)
 
49.04

 
 
 
 

Options exercised
(1,000
)
 
27.21

 
 
 
 

Options/SARs canceled/forfeited/expired

 

 
 
 
 

Outstanding as of December 31, 2014
21,000

 
$
51.30

 
3.64
 
$
453,510

SARs granted

 

 
 
 
 

SARs exercised
(2,000
)
 
47.88

 
 
 
 

Options exercised
(1,500
)
 
36.79

 
 
 
 

Options/SARs canceled/forfeited/expired

 

 
 
 
 

Outstanding as of March 31, 2015
17,500

 
$
52.94

 
4.05
 
$
369,255

 
 
 
 
 
 
 
 
Exercisable as of March 31, 2015
17,500

 
$
52.94

 
4.05
 
$
369,255



There was approximately $33,000 and $22,000 of compensation expense relating to SARs or options vesting on or before March 31, 2015 and 2014, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of March 31, 2015, there was no unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock award plans.

There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.
v2.4.1.9
Segment Information
3 Months Ended
Mar. 31, 2015
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 March 31, 2015 and 2014:
Three Months Ended March 31, 2015
Title
Insurance
 
All
Other
 
Intersegment
Eliminations
 
Total
Insurance and other services revenues
$
25,995,525

 
$
1,464,157

 
$
(350,715
)
 
$
27,108,967

Investment income
1,050,775

 
150,598

 
(23,334
)
 
1,178,039

Net realized gain on investments
14,379

 
424

 

 
14,803

Total revenues
$
27,060,679

 
$
1,615,179

 
$
(374,049
)
 
$
28,301,809

Operating expenses
24,597,471

 
1,668,508

 
(333,294
)
 
25,932,685

Income (loss) before income taxes
$
2,463,208

 
$
(53,329
)
 
$
(40,755
)
 
$
2,369,124

Total assets
$
150,689,425

 
$
46,307,485

 
$

 
$
196,996,910

Three Months Ended March 31, 2014
Title
Insurance
 
All
Other
 
Intersegment
Eliminations
 
Total
Insurance and other services revenues
$
25,807,450

 
$
1,453,301

 
$
(325,230
)
 
$
26,935,521

Investment income
928,512

 
121,238

 
(23,334
)
 
1,026,416

Net realized gain on investments
437,608

 
54,529

 

 
492,137

Total revenues
$
27,173,570

 
$
1,629,068

 
$
(348,564
)
 
$
28,454,074

Operating expenses
25,724,928

 
1,680,440

 
(307,809
)
 
27,097,559

Income (loss) before income taxes
$
1,448,642

 
$
(51,372
)
 
$
(40,755
)
 
$
1,356,515

Total assets
$
143,241,843

 
$
42,085,290

 
$

 
$
185,327,133

v2.4.1.9
Retirement Agreements And Other Postretirement Benefits
3 Months Ended
Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Retirement Agreements And Other Postretirement Benefits
Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is 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 $7,570,000 and $7,111,000 as of March 31, 2015 and December 31, 2014, respectively.  The executive employee benefits include health insurance, 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 benefits cost for the executive benefits for the periods ended March 31, 2015 and 2014:
 
Three Months Ended March 31,
 
2015
 
2014
Service cost – benefits earned during the year
$
4,187

 
$
3,667

Interest cost on the projected benefit obligation
7,693

 
7,618

Amortization of unrecognized prior service cost
1,097

 
554

Amortization of unrecognized losses
879

 

Net periodic benefits costs
$
13,856

 
$
11,839

v2.4.1.9
Fair Value Measurement
3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurement
Fair Value Measurement
 
Valuation of Financial Assets and Liabilities
 
The FASB has established a valuation hierarchy for disclosure of the inputs used to measure 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.

Debt and Equity Securities

The Level 1 category includes equity securities that are measured at fair value using quoted active market prices.

The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds.  Fair value is principally based on market values obtained from a third party pricing service.  Factors that are used in determining 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 March 31, 2015 and December 31, 2014, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate bonds 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 fair values for these instruments uses valuation models which 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.

The Level 3 category only includes the Company’s investments in student loan auction rate securities (“ARS”) because quoted prices are unavailable due to the failure of auctions.  The Company’s ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of these securities was $1,000,000 as of March 31, 2015 and December 31, 2014,  with approximately 97.0% as of March 31, 2015 and December 31, 2014, guaranteed by the U.S. Department of Education.

Some of the inputs to ARS valuation are unobservable in the market and are significant – therefore, the Company utilizes another third party pricing service to assist in the determination of the fair market value of these securities.  This service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates.  The following table summarizes some key assumptions the service used to determine fair value as of March 31, 2015 and December 31, 2014:
 
2015
 
2014
Cumulative probability of earning maximum rate until maturity
—%
 
—%
Cumulative probability of principal returned prior to maturity
95.2%
 
95.2%
Cumulative probability of default at some future point
4.8%
 
4.8%


Significant increases or decreases in any of the inputs in isolation could result in significant changes to the fair value measurement.  Generally, increases in default probabilities and liquidity risk premiums lower the fair market value while increases in principal being returned and earning maximum rates increase fair market values.

Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS.  The Company records the fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value.  In 2015 and 2014, the difference in the low and high values of the ranges was approximately zero to four percent of the carrying value of the Company’s ARS.

The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of March 31, 2015 and December 31, 2014.  The table does not include cash on hand and also does not include assets which are measured at historical cost or any basis other than fair value.  Level 3 assets are comprised solely of ARS.

As of March 31, 2015
Level 1
 
Level 2
 
Level 3
 
Total
Short-term investments
$
4,400,330

 
$

 
$

 
$
4,400,330

Equity securities:
 

 
 

 
 

 
 

Common stock and nonredeemable preferred stock
39,476,921

 

 

 
39,476,921

Fixed maturities:
 

 
 

 
 

 
 

Obligations of U.S. states, territories and political subdivisions*

 
83,180,466

 

 
83,180,466

Corporate debt securities*

 
22,012,779

 
941,200

 
22,953,979

Total
$
43,877,251

 
$
105,193,245

 
$
941,200

 
$
150,011,696

As of December 31, 2014
Level 1
 
Level 2
 
Level 3
 
Total
Short-term investments
$
2,576,993

 
$

 
$

 
$
2,576,993

Equity securities:
 
 
 
 
 
 
 
Common stock and nonredeemable preferred stock
39,254,981

 

 

 
39,254,981

Fixed maturities:
 
 
 
 
 
 
 
Obligations of U.S. states, territories and political subdivisions*

 
85,780,755

 

 
85,780,755

Corporate debt securities*

 
22,328,435

 
939,100

 
23,267,535

Total
$
41,831,974

 
$
108,109,190

 
$
939,100

 
$
150,880,264


*Denotes fair market value obtained from pricing services.

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

To help ensure that fair value determinations are consistent with FASB 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 fair values consistent with ASC 820.

Other Financial Instruments

The Company uses various financial instruments in the normal course of its business. In the measurement of the 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.
 
Cost-basis investments
 
The estimated fair value of cost-basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair value of the underlying entity. These items are included in other investments in the Consolidated Balance Sheets.
 
Accrued dividends and interest
 
The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets.
 
The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of March 31, 2015 and December 31, 2014 are presented in the following table:
As of March 31, 2015
Carrying Value
 
Estimated Fair
Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash
$
15,639,072

 
$
15,639,072

 
$
15,639,072

 
$

 
$

Cost-basis investments
2,502,468

 
2,881,597

 

 

 
2,881,597

Accrued dividends and interest
1,313,255

 
1,313,255

 
1,313,255

 

 

Total Financial Assets
$
19,454,795

 
$
19,833,924

 
$
16,952,327

 
$

 
$
2,881,597

As of December 31, 2014
Carrying Value
 
Estimated Fair
Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash
$
15,826,515

 
$
15,826,515

 
$
15,826,515

 
$

 
$

Cost-basis investments
2,516,608

 
2,675,817

 

 

 
2,675,817

Accrued dividends and interest
1,063,837

 
1,063,837

 
1,063,837

 

 

Total Financial Assets
$
19,406,960

 
$
19,566,169

 
$
16,890,352

 
$

 
$
2,675,817


 
The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the period ended March 31, 2015 and the year ended December 31, 2014:
Changes in fair value during the period ended:
2015
 
2014
Beginning balance at January 1
$
939,100

 
$
935,700

Redemptions and sales

 

Realized gain – included in net realized gain on investments

 

Unrealized gain - included in other comprehensive income
2,100

 
3,400

Ending balance, net
$
941,200

 
$
939,100



Certain cost method investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of March 31, 2015 and December 31, 2014. The following table summarizes the corresponding estimated fair value hierarchy of such investments at March 31, 2015 and December 31, 2014 and the related impairments recognized:
As of March 31, 2015
Valuation
Method
 
Impaired
 
Level 1
 
Level 2
 
Level 3
 
Total at
Estimated
Fair
Value
 
Impairment
Losses
Cost-basis investments
Fair Value
 
Yes
 
$

 
$

 
$

 
$

 
$

Total cost-basis investments
 
 
 
 
$

 
$

 
$

 
$

 
$

As of December 31, 2014
Valuation
Method
 
Impaired
 
Level 1
 
Level 2
 
Level 3
 
Total at
Estimated
Fair
Value
 
Impairment
Losses
Cost-basis investments
Fair Value
 
Yes
 
$

 
$

 
$
22,682

 
$
22,682

 
$
(10,062
)
Total cost-basis investments
 
 
 
 
$

 
$

 
$
22,682

 
$
22,682

 
$
(10,062
)
v2.4.1.9
Investments In Securities
3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments In Securities
Investments in Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:
As of March 31, 2015
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
 
 
 
 
 
 
 
General obligations of U.S. states, territories and political subdivisions
$
33,121,352

 
$
1,472,862

 
$
25,389

 
$
34,568,825

Issuer obligations of U.S. states, territories and political subdivisions revenue
46,113,735

 
2,527,991

 
30,085

 
48,611,641

Corporate debt securities
21,072,010

 
940,769

 

 
22,012,779

Auction rate securities
922,735

 
18,465

 

 
941,200

Total
$
101,229,832

 
$
4,960,087

 
$
55,474

 
$
106,134,445

Equity securities, available-for-sale, at fair value:
 

 
 

 
 

 
 

Common stocks and nonredeemable preferred stocks
$
24,349,105

 
$
15,255,747

 
$
127,931

 
$
39,476,921

Total
$
24,349,105

 
$
15,255,747

 
$
127,931

 
$
39,476,921

Short-term investments:
 

 
 

 
 

 
 

Money market funds and certificates of deposit
$
4,400,330

 
$

 
$

 
$
4,400,330

Total
$
4,400,330

 
$

 
$

 
$
4,400,330

As of December 31, 2014
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
 
 
 
 
 
 
 
General obligations of U.S. states, territories and political subdivisions
$
35,215,247

 
$
1,527,794

 
$
19,542

 
$
36,723,499

Issuer obligations of U.S. states, territories and political subdivisions special revenue
46,707,033

 
2,405,725

 
55,502

 
49,057,256

Corporate debt securities
21,576,641

 
823,133

 
71,339

 
22,328,435

Auction rate securities
922,129

 
16,971

 

 
939,100

Total
$
104,421,050

 
$
4,773,623

 
$
146,383

 
$
109,048,290

Equity securities, available-for-sale, at fair value:
 

 
 

 
 

 
 

Common stocks and nonredeemable preferred stocks
$
24,128,753

 
$
15,225,459

 
$
99,231

 
$
39,254,981

Total
$
24,128,753

 
$
15,225,459

 
$
99,231

 
$
39,254,981

Short-term investments:
 

 
 

 
 

 
 

Money market funds and certificates of deposits
$
2,576,993

 
$

 
$

 
$
2,576,993

Total
$
2,576,993

 
$

 
$

 
$
2,576,993



The special revenue category for both periods presented includes at least 50 individual bonds with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at March 31, 2015 were as follows: