logo
  Join        Login             Stock Quote

An Undervalued, Profitable Insurance Company – Investors Title (ITIC)

 April 08, 2011 01:00 PM


Whopper is a deep value investor and the founder of whopperinvestments.com. He can be reached at whopper@whopperinvestments.com

Currently trading for 70% of tangible book despite a history of consistent profitability and relatively strong ROE, Investors Title Company (ITIC) is a potentially significantly undervalued insurance company.

I first stumbled upon ITIC from when it was posted on the rational walk (see here for the initial write up andhere for a quick follow up on some potentially hidden assets that could (slightly) increase value). Insurance is much more his forte than mine, so I encourage you to read his write ups. This post is very much my attempt at starting to get familiar with the insurance industry and valuing insurancecompanies by writing up a company that I think has interesting value characteristics, so take everything with a grain of salt.

Anyway, ITIC sells title insurance. The are a bit player in this industry, which is dominated by four large players. Most (between 40-50%) of their business comes from North Carolina. I like this for a couple of reasons- 1) NC was not one of the "centers" of the housing bubble like California, Florida, etc, so while business is down in the recession, it hasn't been absolutely crushed and should recover to normal levels as the economy continues to recover. 2) it gives them something of a niche in that they should know the market and be able to price/understand the risks in it better than the giant players.

As you might expect, business has been hard hit by the recession and housing crisis.


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageHow Apple Could Send This Emerging Market Into Overdrive

Don't get distracted by the alphabet soup of emerging market investing -- there are other areas to get read on...

article imageJobless Claims Fell Last Week, Underlining Bullish Trend

New filings for unemployment benefits fell 2,000 to a seasonally adjusted 291,000 for the week through read on...

article image26.25% Annual Return With Lobbying Stocks?

I found an interesting portfolio investing idea: Invest into stocks that spend a huge amount of money to read on...

article imageGlobal Economic Picture Worsens Further.

The Markit PMI Indexes for November are out for a number of countries this morning, and almost all were read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Jacob Wolinsky
More Articles on: Finance



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.