Investors Title (ITIC) risk factors, FY2024 10-K

RISKS RELATED TO THE COMPANY’S BUSINESS

1. 01Adverse changes in economic conditions, especially those related to real estate activity, may negatively impact the Company’s results of operations and financial condition
2. 02Demand for title insurance also depends in part upon the requirement by mortgage lenders and other participants in the secondary mortgage market that title insurance policies be obtained on residential and commercial real property
3. 03The Company may experience material losses resulting from fraud, defalcation or misconduct
4. 04The Company relies upon the North Carolina, Texas, South Carolina, Georgia and Florida markets for a significant portion of its premiums. Changes in the economic or regulatory environments in these states could have an adverse impact on the Company
5. 05Adverse deviation of actual claims experience from expected claims experience will result in lower net earnings
6. 06Competition affects the Company’s results of operations
7. 07The Company may encounter difficulties managing growth, which could adversely affect its operating results
8. 08The Company depends on its ability to attract and retain key personnel and agents, and its inability to do so could adversely affect its business
9. 09Mortgage lending is highly concentrated and changes in relationships with lenders or reform of government-sponsored entities could adversely affect the Company
10. 10Unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets

RISKS RELATED TO REGULATORY AND COMPLIANCE MATTERS

1. 11The Company’s title insurance subsidiaries are subject to extensive regulations that are intended to protect policyholders and consumers
2. 12The Company’s other businesses also operate within state and federal guidelines. Any changes in the regulatory environment could restrict its existing or future operations and could possibly make it more burdensome and costly to conduct them
3. 13A downgrade from a rating agency could result in a loss of underwriting business
4. 14Title insurance rate regulation could have an adverse impact on the Company’s results of operations
5. 15Regulatory investigations of the title insurance industry by governmental entities could adversely impact the Company’s results of operations
6. 16The Company relies on distributions from its subsidiaries

RISKS RELATED TO INVESTMENTS AND DEPOSITS

1. 17Deterioration in financial markets may cause a decline in the performance of the Company’s investments and could have a material adverse impact on net income
2. 18Financial institution failures could adversely affect the Company

RISKS RELATED TO CYBERSECURITY, TECHNOLOGY AND RISK MANAGEMENT

1. 19Breaches and failures of, and other disruptions to, information technology systems of the Company or its service providers may disrupt the Company’s operations, result in monetary losses and harm the Company’s reputation
2. 20Any of these events could disrupt operations both internally and externally, which may result in the loss of revenues. These events could also result in the unauthorized release of proprietary and/or non-public information, or even defalcation of corporate or client funds
3. 21Additionally, future or past business transactions (such as acquisitions or integrations) could expose the Company to additional cybersecurity risks and vulnerabilities, as the Company’s systems could be negatively affected by vulnerabilities present in acquired or integrated entities’ systems and technologies
4. 22Errors and fraud involving the transfer of funds may adversely affect the Company
5. 23The Company may encounter difficulties managing system or technological changes, which could adversely affect its financial and operating results
6. 24Policies and procedures for the mitigation of risk may not be sufficient
7. 25Our business could be adversely affected by climate change, severe weather conditions, potential pandemics, health crises, or the occurrence of another catastrophic event

RISKS RELATED TO OWNING THE COMPANY’S COMMON STOCK

1. 26Certain provisions in the Company’s organizational law, North Carolina law, organizational documents, and the Company’s shareholder rights plan may deter or discourage a takeover of the Company
2. 27The Company’s Bylaws provide that, unless the Company consents in writing to the selection of an alternative forum, the state courts of North Carolina will be the sole and exclusive forum for substantially all disputes between the Company’s and its shareholders