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<SEC-DOCUMENT>0001157523-04-010674.txt : 20041112
<SEC-HEADER>0001157523-04-010674.hdr.sgml : 20041111
<ACCEPTANCE-DATETIME>20041112144951
ACCESSION NUMBER:		0001157523-04-010674
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20041112
DATE AS OF CHANGE:		20041112

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INVESTORS TITLE CO
		CENTRAL INDEX KEY:			0000720858
		STANDARD INDUSTRIAL CLASSIFICATION:	TITLE INSURANCE [6361]
		IRS NUMBER:				561110199
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11774
		FILM NUMBER:		041138543

	BUSINESS ADDRESS:	
		STREET 1:		121 N COLUMBIA ST
		STREET 2:		P O DRAWER 2687
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
		BUSINESS PHONE:		9199682200

	MAIL ADDRESS:	
		STREET 1:		121 NORTH COLUMBIA STREET
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d61227_10-q.htm
<DESCRIPTION>INVESTORS TITLE 10-Q
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
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<HEAD>
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     <!-- Project:        X:\JOBS\04-61227\d04-61227.eep                                   -->
     <!-- Control Number: 04-61227                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>10-Q</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Div Style" FSL="Project" -->
<DIV STYLE="WIDTH:600">

<BR>

<!-- MARKER FORMAT-SHEET="Para Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B>UNITED
STATES<BR>SECURITIES AND EXCHANGE COMMISSION</B><BR>Washington, D.C. 20549 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 10-Q</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-Bold" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>|X| </B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the Quarterly Period Ended
September 30, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-Bold" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>|_| </B> </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the transition period from
_______________ to _______________ </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Commission File Number:
0-11774 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B>INVESTORS TITLE COMPANY</B><BR>
(Exact name of registrant as specified in its charter) </FONT></P>

<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="center" valign="bottom">
    <td nowrap><font face="Times New Roman, Times, serif" size="2">North Carolina</font></td>
    <td nowrap width="100%"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2">56-1110199</font></td>
  </tr>
  <tr align="center">
    <td nowrap colspan="3"> <font face="Times New Roman, Times, serif" size="2"></font><font face="Times New Roman, Times, serif" size="2"></font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="top">
    <td nowrap><font face="Times New Roman, Times, serif" size="2">(State of Incorporation)</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2">(I.R.S. Employer
      Identification No.)</font></td>
  </tr>
  <tr align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td nowrap colspan="3"><font face="Times New Roman, Times, serif" size="2"></font><font face="Times New Roman, Times, serif" size="2">121
      North Columbia Street, Chapel Hill, North Carolina 27514</font><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center">
    <td nowrap colspan="3">
      <hr size="1" noshade align="center" width="350">
    </td>
  </tr>
  <tr align="center" valign="top">
    <td nowrap colspan="3"><font face="Times New Roman, Times, serif" size="2"></font><font face="Times New Roman, Times, serif" size="2">(Address
      of Principal Executive Offices) (Zip Code)</font><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td nowrap colspan="3"><font face="Times New Roman, Times, serif" size="2"></font><font face="Times New Roman, Times, serif" size="2">(919)
      968-2200</font><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center">
    <td nowrap colspan="3"><font face="Times New Roman, Times, serif" size="2"></font>
      <hr size="1" noshade align="center" width="300">
    </td>
  </tr>
  <tr align="center" valign="top">
    <td nowrap colspan="3"><font face="Times New Roman, Times, serif" size="2"></font><font face="Times New Roman, Times, serif" size="2">(Registrant&#146;s
      Telephone Number Including Area Code)</font><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 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.&nbsp;&nbsp;Yes&nbsp;|X|&nbsp;&nbsp;No&nbsp;|_| </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule
12b-2 of the Exchange Act).&nbsp;&nbsp;Yes&nbsp;|_|&nbsp;&nbsp;No&nbsp;|X| </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of September 30, 2004, there were 2,855,744 outstanding shares of common stock of
Investors Title Company, including 367,014 shares held by Investors Title Insurance
Company, a wholly owned subsidiary of Investors Title Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INVESTORS
TITLE COMPANY<BR>AND SUBSIDIARIES</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10 Underlined" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>INDEX</U></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">PART
      I.</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">FINANCIAL
      INFORMATION</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a01">Item
      1.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a01">Financial
      Statements:</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT width="100%"><font face="Times New Roman, Times, serif" size="2"><A HREF="#a02">Consolidated
      Balance Sheets as of September 30, 2004 and December 31, 2003</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a02">1</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a03">Consolidated
      Statements of Income</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#a03">For
      the Three and Nine Months Ended September 30, 2004 and 2003</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a03">2</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a04">Consolidated
      Statements of Stockholders&#146; Equity</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#a04">For
      the Nine Months Ended September 30, 2004 and 2003</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a04">3</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a05">Consolidated
      Statements of Cash Flows</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#a05">For
      the Nine Months Ended September 30, 2004 and 2003</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a05">4</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a06">Notes to
      Consolidated Financial Statements</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a06">5</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a07">Item
      2.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a07">Management&#146;s
      Discussion and Analysis of Financial Condition and Results of</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#a07">Operations</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a07">10</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a08">Item
      3.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a08">Quantitative
      and Qualitative Disclosures About Market Risk</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a08">17</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a09">Item
      4.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a09">Controls
      and Procedures</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a09">17</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">PART
      II.</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">OTHER
      INFORMATION</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a10">Item
      2.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a10">Unregistered
      Sales of Equity Securities and Use of Proceeds</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a10">17</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2"><A HREF="#a11">Item
      6.</A></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a11">Exhibits</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a11">18</A></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2"><A HREF="#a12">SIGNATURE</A></font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><A HREF="#a12">19</A></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>PART I.
FINANCIAL INFORMATION</FONT></H2>

<A NAME="a01"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 1. <U>Financial
Statements</U></FONT></H2>

<A NAME="a02"></A>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investors
Title Company and Subsidiaries<BR>Consolidated Balance Sheets<BR><I>As of September 30,
2004 and December 31, 2003</I></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=650>
  <tr valign=Bottom align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">September
      30, 2004</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" nowrap><font face="Times New Roman, Times, serif" size="2">December
      31, 2003</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=top align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">(Unaudited)</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" nowrap><font face="Times New Roman, Times, serif" size="2">(Audited)</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td width=100% align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Assets</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Cash
      and cash equivalents</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 4,498,084</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 5,125,356</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Investments
      in securities:</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed
      maturities:</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity,
      at amortized cost</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,207,241</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,481,353</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale,
      at fair value</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">60,057,395</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">45,100,520</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity
      securities, at fair value</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">6,820,648</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">14,556,785</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term
      investments</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">18,050,084</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">16,747,964</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      investments</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,290,798</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">955,561</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      investments</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">88,426,166</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">79,842,183</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Premiums
      receivable, less allowance for doubtful accounts of</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,360,000
      and $2,474,000 for 2004 and 2003, respectively</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"><b>7,146,604</b></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">8,031,803
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Accrued
      interest and dividends</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">651,848</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">667,147</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Prepaid
      expenses and other assets</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,257,476</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">934,345</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Property
      acquired in settlement of claims</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">286,517</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">286,517</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Property,
      net</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">4,501,458</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">4,099,243</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Deferred
      income taxes, net</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">927,828</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,485,217</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Total
      Assets</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 107,695,981</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 100,471,811</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Liabilities
      and Stockholders&#146; Equity</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Liabilities:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Reserves
      for claims (Note 2)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 31,541,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 30,031,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Accounts
      payable and accrued liabilities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">5,141,775</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">6,243,906</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Commissions
      and reinsurance payables</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">484,508</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">726,191</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Current
      income taxes payable</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">518,323</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">281,968</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">37,685,606</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">37,283,065</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Commitments
      and Contingencies (Note 6)</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Stockholders&#146;
      Equity:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Class
      A Junior Participating preferred stock (shares authorized 100,000;<br>
      &nbsp;&nbsp;&nbsp;&nbsp;no shares issued)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">&#151;</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Common
      stock-no par value (shares authorized 10,000,000;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;2,488,730
      and 2,503,923 shares issued and outstanding 2004 and 2003,</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;respectively,
      excluding 367,014 and 351,821 shares 2004 and 2003,</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;respectively,
      of common stock held by the Company&#146;s subsidiary)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Retained
      earnings</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">66,895,192</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">59,756,927</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Accumulated
      other comprehensive income, net of deferred taxes of</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;$1,602,866
      and $1,768,477 for 2004 and 2003, respectively (Note 3)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">3,115,182</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">3,431,818</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      stockholders&#146; equity</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">70,010,375</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">63,188,746</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Total
      Liabilities and Stockholders&#146; Equity</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 107,695,981</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 100,471,811</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Left - Italics" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>See notes to
consolidated financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<A NAME="a03"></A>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investors Title
Company and Subsidiaries<BR>Consolidated Statements of Income<BR><I>For the Three and Nine Months
Ended September 30, 2004 and 2003<BR>(Unaudited)</I></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=700>
  <tr valign="bottom" align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      the Three<br>
      Months Ended <br>
      September 30</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      the Nine<br>
      Months Ended<br>
      September 30</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign="middle">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td colspan="2" align=center><b><font face="Times New Roman, Times, serif" size="2">&nbsp;2004</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center><font face="Times New Roman, Times, serif" size="2">&nbsp;2003</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" align=center><b><font face="Times New Roman, Times, serif" size="2">&nbsp;2004</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center><font face="Times New Roman, Times, serif" size="2">&nbsp;2003</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT width="100%"><b><font face="Times New Roman, Times, serif" size="2">Revenues:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Underwriting
      income:</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums
      written</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 18,372,069</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 23,583,938</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 55,166,785</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 66,764,869</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
      - premiums for reinsurance ceded</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">37,510</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">114,348</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">200,818</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">304,665</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      premiums written</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">18,334,559</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">23,469,590</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">54,965,967</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">66,460,204</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      income - interest and dividends</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">597,708</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">666,399</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,963,030</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,020,834</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized gain on sales of investments</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">19,280</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,130</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">39,667</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">66,044</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange
      services revenue (Note 5)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">931,446</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">383,094</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,953,644</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">873,995</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">620,331</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">803,026</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,679,072</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,110,248</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">20,503,324</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">25,323,239</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">60,601,380</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">71,531,325</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Operating
      Expenses:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions
      to agents</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">7,372,112</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">11,029,831</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">22,283,907</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">31,885,609</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      for claims (Note 2)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,110,152</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,699,432</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">6,139,555</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">7,470,163</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries,
      employee benefits and payroll taxes (Note 6)</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">4,042,857</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">4,139,980</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">12,219,022</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">11,395,979</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office
      occupancy and operations</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,294,766</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,321,753</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">3,821,520</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">3,784,546</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
      development</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">447,159</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">692,124</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,324,096</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,475,280</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes,
      other than payroll and income</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">42,823</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">101,178</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">341,877</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">276,460</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium
      and retaliatory taxes</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">357,244</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">463,437</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,079,639</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,347,542</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional
      fees</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">336,919</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">324,925</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,144,906</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">783,064</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">84,428</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">87,780</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">138,995</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">287,625</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">16,088,460</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">20,860,440</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">48,493,517</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">58,706,268</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Income
      Before Income Taxes</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">4,414,864</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">4,462,799</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">12,107,863</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">12,825,057</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Provision
      For Income Taxes</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">1,487,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">1,499,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">4,078,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">4,165,245</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Net
      Income</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 2,927,864</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 2,963,799</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 8,029,863</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 8,659,812</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Basic
      Earnings Per Common Share (Note 4)</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 1.17</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 1.18</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 3.21</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 3.46</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Weighted
      Average Shares Outstanding - Basic (Note 4)</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,493,786</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,503,405</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,500,654</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,503,650</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Diluted
      Earnings Per Common Share (Note 4)</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 1.12</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 1.13</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 3.06</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 3.30</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Weighted
      Average Shares Outstanding - Diluted (Note 4)</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,608,160</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,629,026</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">2,621,922</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,621,504</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Dividends
      Paid</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 85,719</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 75,098</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 274,894</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 225,277</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Dividends
      Per Share</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 0.04</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 0.03</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 0.11</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 0.09</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Left - Italics" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>See notes to
consolidated financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<A NAME="a04"></A>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investors Title
Company and Subsidiaries<BR>Consolidated Statements of Stockholders&#146; Equity<BR><I>For the
Nine Months Ended September 30, 2004 and 2003<BR>(Unaudited)</I></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=650>
  <tr align="right" valign="bottom">
    <td nowrap rowspan="3" colspan="2">&nbsp;</td>
    <td nowrap colspan="5" align=center height="48"><b><font face="Times New Roman, Times, serif" size="2">Common
      Stock </font></b></td>
    <td nowrap rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td nowrap colspan="2" rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b><font face="Times New Roman, Times, serif" size="2">Retained<br>
      Earnings<br>
      </font></b></td>
    <td nowrap rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td nowrap colspan="2" rowspan="3"><b><font face="Times New Roman, Times, serif" size="2">Accumulated
      <br>
      Other Comprehensive <br>
      Income (Net <br>
      Unrealized Gain (Loss)<br>
      on Investments)<br>
      </font></b></td>
    <td nowrap rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td nowrap colspan="2" rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b><font face="Times New Roman, Times, serif" size="2">
      Total<br>
      Stockholders&#146;<br>
      Equity<br>
      </font></b></td>
    <td nowrap rowspan="3"><b><font face="Times New Roman, Times, serif" size="2"></font></b><font face="Times New Roman, Times, serif" size="2"></font><b></b></td>
  </tr>
  <tr>
    <td align=RIGHT colspan="5" height="5">
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr align="right">
    <td nowrap valign="bottom" colspan="2"><b><font face="Times New Roman, Times, serif" size="2">Shares</font></b></td>
    <td nowrap>&nbsp;</td>
    <td nowrap valign="bottom" colspan="2"><b><font face="Times New Roman, Times, serif" size="2">Amount</font></b></td>
  </tr>
  <tr>
    <td align=LEFT colspan="16">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width=100% align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Balance,
      December 31, 2002</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">2,515,804</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      1</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      49,613,044</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      3,055,139</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      52,668,184</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Net
      income</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">8,659,812</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">8,659,812</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Dividends
      ($.09 per share)</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(225,277</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(225,277</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Shares
      of common stock repurchased</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(37,015</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(860,316</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(860,316</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Compensation
      expense related to<br>
      issuance of common stock</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">1,981</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">46,215</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">46,215</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Stock
      options exercised</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">23,300</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">337,097</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">337,097</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Net
      unrealized gain on investments</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">391,055</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">391,055</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT colspan="16">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Balance,
      September 30, 2003</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">2,504,070</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      1</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      57,570,575</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      3,446,194</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      61,016,770</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=14 valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT colspan="16">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Balance,
      December 31, 2003</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">2,503,923</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      1</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      59,756,927</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      3,431,818</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      63,188,746</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Net
      income</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">8,029,863</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">8,029,863</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Dividends
      ($.11 per share)</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(274,894</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(274,894</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Shares
      of common stock repurchased</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(26,652</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(807,771</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">(807,771</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Compensation
      expense related to<br>
      issuance of common stock</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">724</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">23,207</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">23,207</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">Stock
      options exercised</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">10,735</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">167,860</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2">167,860</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">Net
      unrealized loss on investments</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">
      </font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(316,636</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
    <td align=left valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">(316,636</font></td>
    <td align=LEFT valign="bottom" bgcolor="#cceeff"><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr>
    <td align=LEFT colspan="16">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">Balance,
      September 30, 2004</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">2,488,730</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">
      1</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">
      66,895,192</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">
      3,115,182</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">
      70,010,375</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=14 valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Left - Italics" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>See notes to
consolidated financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<A NAME="a05"></A>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investors
Title Company and Subsidiaries<BR>Consolidated Statements of Cash Flows<BR><I>For the
Nine Months Ended September 30, 2004 and 2003<BR>(Unaudited)</I></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      2004</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" nowrap><font face="Times New Roman, Times, serif" size="2">2003</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign="middle">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT width="100%"><b><font face="Times New Roman, Times, serif" size="2">Operating
      Activities:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Net income</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 8,029,863</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 8,659,812</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Adjustments
      to reconcile net income to net cash</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided
      by operating activities:</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">684,942</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">615,045</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization,
      net</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">30,518</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">20,297</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance
      of common stock in payment of bonuses and fees</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">23,207</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">46,215</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      (benefit) for losses on premiums receivable</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(114,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">785,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      gain on disposals of property</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(6,394</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(5,972</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized gain on sales of investments</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(39,667</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(66,044</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      for claims</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">6,139,555</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">7,470,163</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      (benefit) for deferred income taxes</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">723,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(246,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Changes
      in assets and liabilities:</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      (increase) in receivables and other assets</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">691,367</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(2,604,614</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in accounts payable and accrued liabilities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(1,102,131</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(435,564</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease)
      increase in commissions and reinsurance payables</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(241,683</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">178,349</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      (decrease) in current income taxes payable</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">236,355</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(452,247</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments
      of claims, net of recoveries</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(4,629,555</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(3,769,163</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by operating activities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">10,425,377</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">10,195,277</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Investing
      Activities:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Purchases
      of available-for-sale securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(40,881,278</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(3,730,034</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Purchases
      of short term securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(4,412,111</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(8,346,379</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Purchases
      of other securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(335,237</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(554,921</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Proceeds
      from sales and maturities of available-for-sale securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">33,159,278</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">5,536,005</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Proceeds
      from maturies of held-to-maturity securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">278,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">642,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Proceeds
      from sales of short term securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">3,134,267</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Proceeds
      from sales of other securities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">&#151;</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">28,757</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Purchases
      of property</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(1,127,490</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(655,318</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Proceeds
      from sales of property</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">46,727</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">16,873</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash used in investing activities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(10,137,844</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(7,063,017</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Financing
      Activities:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Repurchases
      of common stock</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(807,771</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(860,316</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Exercise
      of options</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">167,860</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">337,097</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;Dividends
      paid</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(274,894</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(225,277</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash used in financing activities</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(914,805</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">(748,496</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Net
      Increase (Decrease) in Cash and Cash Equivalents</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">(627,272</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">)</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,383,764</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Cash
      and Cash Equivalents, Beginning of Year</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">5,125,356</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">3,781,961</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Cash
      and Cash Equivalents, End of Period</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 4,498,084</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 6,165,725</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=RIGHT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=LEFT><font size="2" face="Times New Roman, Times, serif"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Supplemental
      Disclosures:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">Cash
      Paid During the Year for:</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Income
      taxes, net of refunds</font></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 3,181,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 4,881,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

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<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>See notes to
consolidated financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INVESTORS TITLE
COMPANY<BR>AND SUBSIDIARIES</FONT></H1>

<A NAME="a06"></A>

<!-- MARKER FORMAT-SHEET="Para Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B><U>Notes to
Consolidated Financial Statements</U></B><BR>September 30, 2004<BR>(Unaudited) </FONT></P>

<!-- MARKER FORMAT-SHEET="Left - Underlined" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Note 1 - Basis of
Presentation</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
should be made to the &#147;Notes to Consolidated Financial Statements&#148; of Investors Title
Company&#146;s (the &#147;Company&#148;) Annual Report to Shareholders for the year ended December 31,
2003 for a complete description of the Company&#146;s significant accounting policies. There
were no material changes in the significant accounting policies during the nine months
ended September 30, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Principles
of Consolidation</I> &#150; The accompanying unaudited condensed consolidated financial statements
include the accounts and operations of Investors Title Company and its subsidiaries
(Investors Title Insurance Company, Northeast Investors Title Insurance Company,
Investors Title Exchange Corporation, Investors Title Accommodation Corporation,
Investors Title Management Services, Inc., Investors Title Commercial Agency, LLC,
Investors Capital Management Company, and Investors Trust Company), and have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and 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 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, 2004 are not
necessarily indicative of the results that may be expected for the year ended December
31, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
further information, refer to the consolidated financial statements and footnotes thereto
included in the Company&#146;s annual report on Form 10-K for the year ended December 31, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Use
of Estimates and Assumptions</I>  &#150;  The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America 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. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reclassification</I>
 &#150;  Certain 2003 amounts have been reclassified to conform to 2004 classifications. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Earnings
Per Share</I>  &#150;  Basic net income per share information is computed using the weighted average
number of shares of common stock outstanding during the period.  Diluted net income per
common share is computed using the weighted average number of shares of common and
dilutive potential common shares outstanding during the period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stock-Based
Compensation</I>  &#150;  The Company accounts for stock-based compensation based on the provisions
of Accounting Principles Board Opinion No. 25, <I>Accounting for Stock Issued to Employees</I>,
which states that, for fixed plans, no compensation expense is recorded for stock options
or other stock-based awards to employees that are granted with an exercise price equal to
or above the estimated fair value per share of the Company&#146;s common stock on the grant
date.  In the event that stock options are granted with an exercise price below the
estimated fair value of the Company&#146;s common stock at the grant date, the difference
between the fair value of the Company&#146;s common stock and the exercise price of the stock
option is recorded as deferred compensation.  Deferred compensation is amortized to
compensation expense over the vesting period of the stock option.  The Company has
adopted the disclosure requirements of Statement of Financial Accounting Standards No.
123, <I>Accounting for Stock-Based Compensation</I> (&#147;SFAS No. 123&#148;), and Statement of Financial
Accounting Standards No. 148, <I>Accounting for Stock-Based Compensation  &#150;  Transition and
Disclosure  &#150;  an Amendment to FASB Statement No. 123</I>, which together require compensation
expense to be disclosed based on the fair value of the options granted at the date of the
grant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Had
compensation cost for the Company&#146;s stock option plan been determined based on the fair
value at the grant dates for awards under the plan consistent with the method required by
SFAS No. 123, the Company&#146;s net income and diluted net income per common share would have
been the pro forma amounts indicated in the following table: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign="bottom" align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 nowrap><font face="Times New Roman, Times, serif" size="2">For
      the Three Months Ended <br>
      September 30</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=5 nowrap><font face="Times New Roman, Times, serif" size="2">For
      the Nine Months Ended<br>
      September 30</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign="middle">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=11 align=left>
      <hr NOSHADE color=#808080 size=1>
      <font face="Times New Roman, Times, serif" size="2"></font> </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td colspan="2" align=center><b><font face="Times New Roman, Times, serif" size="2">&nbsp;2004</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center><font face="Times New Roman, Times, serif" size="2">&nbsp;2003</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" align=center><b><font face="Times New Roman, Times, serif" size="2">&nbsp;2004</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center><font face="Times New Roman, Times, serif" size="2">&nbsp;2003</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=11 align=left>
      <hr NOSHADE color=#808080 size=1>
      <font size="2"></font> <font face="Times New Roman, Times, serif" size="2"></font>
      <font size="2"></font> </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT width="100%"><font face="Times New Roman, Times, Serif" size=2>Net
      income as reported</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 2,927,864</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,963,799</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 8,029,863</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,659,812</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Less: Total
      stock-based</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;employee
      compensation</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expense
      determined under</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fair
      value-based method for</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
      awards, net of related tax</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effects</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(38,642</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(37,349</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(114,162</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(107,796</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=11 align=left>
      <hr NOSHADE color=#808080 size=1>
      <font size="2"></font> <font face="Times New Roman, Times, serif" size="2"></font>
      <font size="2"></font> </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Pro forma
      net income</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 2,889,222</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,926,450</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 7,915,701</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,552,016</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income
      per share:</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      - as reported</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 1.17</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.18</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3.21</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3.46</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      - pro forma</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 1.16</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.17</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3.17</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3.42</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
      - as reported</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 1.12</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.13</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3.06</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3.30</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
      - pro forma</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 1.11</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.11</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3.02</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3.26</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Recent
Accounting Pronouncements &#150; Emerging Issue Task Force (&#147;EITF&#148;) Issue 03-16:</I> In March
2004, the EITF reached a final consensus on Issue 03-16, &#147;Accounting for Investments in
Limited Liability Companies.&#148;  EITF 03-16 requires investors in limited liability
corporations that have specific ownership accounts to follow the equity method of
accounting for investments that are more than minor as prescribed in Statement Of
 Position (&#147;SOP&#148;) 78-9, &#147;Accounting for Investments in Real Estate Ventures&#148; and EITF
Topic No. D-46, &#147;Accounting for Limited Partnership Investments.&#148;  EITF 03-16 was
effective for quarters beginning after June 15, 2004.  The adoption of this standard did
not have a material impact on the Company&#146;s results of operations, financial condition or
liquidity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left - Underlined" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Note 2 - Reserves for
Claims</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
in the reserves for claims for the nine months ended September 30, 2004 and the year
ended December 31, 2003 were as follows: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" nowrap align="right"><b><font face="Times New Roman, Times, serif" size="2">September
      30, 2004</font></b></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" nowrap align="right"><font face="Times New Roman, Times, serif" size="2">December
      31, 2003</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign="middle">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td width=100% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance,
      beginning of year</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 30,031,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 25,630,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Provision,
      charged to operations</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>6,139,555</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,292,739</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Payments
      of claims, net of recoveries</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(4,629,555</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,891,739</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Ending balance</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 31,541,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,031,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><b></b></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total reserve for all reported and unreported losses the Company incurred through
September 30, 2004 is represented by the reserve for claims. The Company&#146;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 incurred claims of policyholders which may be
reported in the future. 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. The Company 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.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims
and losses paid are charged to the 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. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left - Underlined" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Note 3 - Comprehensive
Income</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
income for the three months ended September 30, 2004 and 2003 was $3,235,700 and
$2,784,755, respectively.  Comprehensive income for the nine months ended September 30,
2004 and 2003 was $7,713,227 and $9,050,867, respectively.  Other comprehensive income is
comprised solely of unrealized gains or losses on the Company&#146;s available-for-sale
securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Left - Underlined" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Note 4 - Earnings Per
Common Share</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
stock options are considered outstanding for the diluted earnings per common share
calculation and are computed using the treasury stock method.  The total increase in the
weighted average shares outstanding related to these equivalent shares was 114,374 and
125,621 for the three months ended September 30, 2004 and 2003, respectively, and 121,268
and 117,854 for the nine months ended September 30, 2004 and 2003, respectively.  Options
to purchase 250,506 and 274,241 shares of common stock were outstanding as of September
30, 2004 and 2003, respectively.  Of the total options outstanding, 3,700 and 0 options
were not included in the computation of diluted earnings per share for the three months
ended September 30, 2004 and 2003, respectively; and 3,700 and 36,350 options were not
included in the computation of diluted earnings per share for the nine months ended
September 30, 2004 and 2003, respectively, because the options&#146; exercise prices were
greater than the average market price of the common shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left - Underlined" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Note 5 - Segment
Information</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
with SFAS No. 131, the Company has aggregated its operating segments into two reportable
segments: 1) title insurance services; and 2) tax-free exchange services. </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=700>
  <tr>
    <td align=LEFT valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Three
      Months Ended<br>
      September 30, 2004<br>
      </font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Title <br>
      Insurance<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Exchange<br>
      Services<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      All <br>
      Other<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Intersegment<br>
      Elimination <br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Total</font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td colspan="15" align=LEFT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td width=100% align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      revenues</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      18,553,819</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      931,446</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      540,733</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (139,662</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      19,886,336</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Investment
      income</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>570,174</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>2,109</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>53,937</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(28,512</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>597,708</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Net
      realized gain (loss) on sales</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>of
      investments</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>31,780</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(12,500</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>19,280</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Total
      revenues</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      19,155,773</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      933,555</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      582,170</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (168,174</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      20,503,324</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      expenses</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>15,585,674</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>176,976</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>465,472</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(139,662</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>16,088,460</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income
      before income taxes</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      3,570,099</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      756,579</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      116,698</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (28,512</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      4,414,864</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Assets</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      91,342,012</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,188,218</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      15,165,751</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>       -</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      107,695,981</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Three
      Months Ended<br>
      September 30, 2003<br>
      </font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Title <br>
      Insurance<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Exchange<br>
      Services<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      All <br>
      Other<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Intersegment<br>
      Elimination <br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Total</font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td colspan="15" align=LEFT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      revenues</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      24,029,938</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      383,094</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      384,432</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (141,754</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      24,655,710</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Investment
      income</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>659,323</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>574</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>17,076</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(10,574</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>666,399</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Net
      realized gain on sales of</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>investments</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,130</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,130</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Total
      revenues</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      24,690,391</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      383,668</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      401,508</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (152,328</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      25,323,239</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      expenses</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>20,499,155</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>131,406</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>371,633</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(141,754</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>20,860,440</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income
      before income taxes</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      4,191,236</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      252,262</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      29,875</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (10,574</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      4,462,799</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Assets</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      84,901,946</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      620,958</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      10,454,366</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>       -</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      95,977,270</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<table cellpadding=0 cellspacing=0 border=0 width=700>
  <tr>
    <td align=LEFT valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Nine
      Months Ended<br>
      September 30, 2004<br>
      </font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Title <br>
      Insurance<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Exchange<br>
      Services<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      All <br>
      Other<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Intersegment<br>
      Elimination <br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Total</font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td colspan="15" align=LEFT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom" width="100%"><font face="Times New Roman, Times, Serif" size=2>Operating
      revenues</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      55,661,389</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,953,644</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,406,871</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (423,221</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      58,598,683</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Investment
      income</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,866,260</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>5,246</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>130,762</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(39,238</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,963,030</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Net
      realized gain (loss) on sales</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>of
      investments</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>52,167</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(12,500</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>39,667</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Total
      revenues</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      57,579,816</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,958,890</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,525,133</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (462,459</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      60,601,380</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      expenses</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>46,873,994</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>476,098</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,566,646</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(423,221</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>48,493,517</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income
      (loss) before income</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;taxes</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      10,705,822</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,482,792</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (41,513</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      (39,238</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      12,107,863</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
    <td align=left valign="bottom"><b></b></td>
    <td align=RIGHT valign="bottom"><b></b></td>
    <td align=LEFT valign="bottom"><b></b></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Assets</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      91,342,012</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,188,218</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      15,165,751</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>       -</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      107,695,981</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=RIGHT valign="bottom">&nbsp;</td>
    <td align=LEFT valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Nine
      Months Ended<br>
      September 30, 2003<br>
      </font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Title <br>
      Insurance<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Exchange<br>
      Services<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      All <br>
      Other<br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Intersegment<br>
      Elimination <br>
      </font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">Total</font></b></td>
    <td align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td colspan="15" align=LEFT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      revenues</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      67,996,415</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      873,995</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      1,097,200</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (523,163</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      69,444,447</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Investment
      income</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,988,885</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,955</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>61,733</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(31,739</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>2,020,834</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Net
      realized gain on sales of</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>investments</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>66,044</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>66,044</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Total
      revenues</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>70,051,344</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      875,950</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      1,158,933</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (554,902</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      71,531,325</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Operating
      expenses</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>57,879,936</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>381,188</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>968,307</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(523,163</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>58,706,268</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income
      before income taxes</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      12,171,408</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      494,762</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      190,626</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      (31,739</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      12,825,057</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;&nbsp;</td>
    <td align=left valign="bottom"></td>
    <td align=RIGHT valign="bottom"></td>
    <td align=LEFT valign="bottom"></td>
    <td align=left valign="bottom"></td>
    <td align=RIGHT valign="bottom"></td>
    <td align=LEFT valign="bottom"></td>
    <td align=left valign="bottom"></td>
    <td align=RIGHT valign="bottom"></td>
    <td align=LEFT valign="bottom"></td>
    <td align=left valign="bottom"></td>
    <td align=RIGHT valign="bottom"></td>
    <td align=LEFT valign="bottom"></td>
    <td align=left valign="bottom"></td>
    <td align=RIGHT valign="bottom"></td>
    <td align=LEFT valign="bottom">&nbsp;</td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Assets</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      84,901,946</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      620,958</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      10,454,366</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>       -</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      95,977,270</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Left - Italics" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>Note 6 &#150; Commitments
and Contingencies</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and its subsidiaries are involved in various legal proceedings that are
incidental to their business.  In the Company&#146;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 will not, in the aggregate, be material to the
Company&#146;s consolidated financial condition or operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 17, 2003, Investors Title Insurance Company entered into employment agreements
with key executives that provide for the continuation of certain employee benefits upon
retirement.  The executive employee benefits include health insurance, dental insurance,
vision insurance and life insurance.   The plan is unfunded.  The following sets forth
the net periodic benefits cost for the executive benefits for the three and nine months
ended September 30, 2004: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=center nowrap><b><font face="Times New Roman, Times, serif" size="2">
      For the Three <br>
      Months Ended <br>
      September 30, 2004</font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td colspan=2 align=center nowrap><b><font face="Times New Roman, Times, serif" size="2">
      For the Nine <br>
      Months Ended <br>
      September 30, 2004</font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td width=100% align=LEFT><font face="Times New Roman, Times, serif" size="2">Service
      cost at beginning of period</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">
      28,305</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">
      3,513</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Interest
      cost</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">3,875</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">11,625</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Amortization
      of Unrecognized Prior Service Cost</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">8,521</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">25,563</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Amortization
      of Unrecognized Gains or Losses</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">&#151;</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">&#151;</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Net Periodic
      Benefits Costs</font></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">
      40,701</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left nowrap><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT nowrap><b><font face="Times New Roman, Times, serif" size="2">
      40,701</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan=2 align=left nowrap>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<A NAME="a07"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 2.     Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s 2003 Form 10-K and 2003 Annual Report to Shareholders should be read in
conjunction with the following discussion since they contain important information for
evaluating the Company&#146;s operating results and financial condition. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Underlined" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Overview</U> </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Title
Insurance:</I></B> Investors Title Company (the &#147;Company&#148;) engages primarily in two segments of
business. Its main business activity is the issuance of title insurance through two
subsidiaries, Investors Title Insurance Company (&#147;ITIC&#148;) and Northeast Investors Title
Insurance Company (&#147;NE-ITIC&#148;) and settlement-related services. Through ITIC and NE-ITIC,
the Company underwrites land title insurance for owners and mortgagees as a primary
insurer and as a reinsurer for other title insurance companies. ITIC delivers title
insurance coverage principally through branch offices and issuing agents and NE-ITIC
delivers title insurance through issuing agents. Title insurance protects against loss or
damage resulting from defects that affect the title to real property. The policies issued
are the standard American Land Title Association approved forms. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are two basic types of title insurance policies - one for the mortgage lender and one for
the real estate owner.  A lender often requires property owners to purchase title
insurance to protect its position as a holder of a mortgage loan, but the lender&#146;s title
insurance policy does not protect the property owner.  The property owner has to purchase
a separate owner&#146;s title insurance policy to protect his investment. When real property
is conveyed from one party to another, occasionally there is a hidden defect in the title
or a mistake in a prior deed, will or mortgage that may give a third party a claim
against such property. If a claim is made against real property, title insurance provides
a corporate guarantee against insured defects, pays all legal expenses to eliminate any
title defects, pays any claims arising from errors in title examination and recording,
and pays any losses arising from hidden defects in title and defects that are not of
record.  Title insurance provides an assurance that the insurance holder&#146;s ownership and
use of such property will be defended promptly against claims, at no cost, whether or not
the claim is valid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s profitability in the land title insurance industry is affected by a number of
factors, including the cost and availability of mortgage funds, the level of real estate
and mortgage refinance activity, the cost of real estate, consumer confidence, employment
levels, family income levels and general economic conditions.  Generally, real estate
activity declines as a result of higher interest rates or an economic downturn, thus
leading to a corresponding decline in title insurance premiums written and the revenues
and profitability of the Company.  The cyclical nature of the land title insurance
industry has historically caused fluctuations in revenues and profitability and it is
expected to continue to do so in the future. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volume
is also a key factor in the Company&#146;s profitability because the Company has certain
significant fixed costs such as personnel and occupancy expenses associated with
processing and issuing a title insurance policy.  Most of these costs do not necessarily
increase or decrease depending on the size and type of the policy issued. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2004, premiums have declined principally due to the decline in refinancing activity, as a
result of increased interest rates, which is expected to continue throughout the rest of
the year, partially offset by a rate increase in North Carolina for insured closing
services.  As always, the Company has been monitoring and managing its operating expenses
in light of the expected decline in title insurance revenues. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company strives to offset the cyclical nature of the real estate market by expanding into
new markets primarily by continuing to develop agency relationships and improving market
penetration with existing offices and agents.  In order to maintain and improve profits,
the Company endeavors to identify opportunities to refine operating procedures and
implement programs designed to reduce expenses. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Exchange
Services:</I></B> The Company&#146;s second segment provides tax-free exchange services through its
subsidiaries, Investors Title Exchange Corporation (&#147;ITEC&#148;) and Investors Title
Accommodation Corporation (&#147;ITAC&#148;). ITEC serves as a qualified intermediary in  &sect;1031
like-kind exchanges of real or personal property. In its role as qualified intermediary,
ITEC coordinates the exchange aspects of the real estate transaction with the closing
agents.  ITEC&#146;s duties include drafting standard exchange documents, holding the exchange
funds between the sale of the old property and the purchase of the new property, and
accepting the formal identification of the replacement property within the required
identification period.  ITAC serves as exchange accommodation titleholder in reverse
exchanges.  As exchange accommodation titleholder, ITAC offers a vehicle for
accommodating a reverse exchange when the taxpayer must acquire replacement property
before selling the relinquished property. Factors that influence the title insurance
industry will also generally affect the exchange services industry. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>New
Services:</I></B> Investors Trust Company (&#147;INTC&#148;), wholly owned by the Company, was chartered on
February 17, 2004 by the North Carolina Commissioner of Banks.   INTC serves clients
throughout North Carolina and neighboring states by providing professional portfolio
management services along with trust services.  Activities of this company are not
currently significant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Underlined" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Results of Operations:</U> </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the quarter ended September 30, 2004, net premiums written decreased 22% to $18,334,559,
total revenues decreased 19% to $20,503,324 and net income decreased 1% to $2,927,864,
all compared with the same quarter in 2003.  Both net income per basic and diluted common
share decreased 1%, to $1.17 and $1.12, respectively, as compared with the same quarter
in 2003.  For the quarter ended September 30, 2004, the title insurance segment&#146;s
operating revenues decreased 23% compared with the third quarter of 2003, while the
exchange services segment&#146;s operating revenues increased 143% for the quarter ended
September 30, 2004, compared with the same quarter in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the nine months ended September 30, 2004, net premiums written decreased 17% to
$54,965,967, total revenues decreased 15% to $60,601,380 and net income decreased 7% to
$8,029,863, all compared with the same period in 2003.  Both net income per basic and
diluted common share decreased 7%, to $3.21 and $3.06 as compared with the same
nine-month period ended September 30, 2003.  For the nine months ended September 30,
2004, the title insurance segment&#146;s operating revenues decreased 18% compared with the
same period in 2003, while the exchange services segment&#146;s operating revenues increased
124% for the nine months ended September 30, 2004 compared with the same period in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Operating
revenues:</I></B> Revenues were primarily impacted by the decline in premiums written due to
lower levels of mortgage refinancing compared with the prior year period as a result of
increased interest rates. According to the Freddie Mac Weekly Mortgage Rate Survey, the
monthly average 30-year fixed mortgage interest rates increased to an average of 5.87%
for the nine months ended September 30, 2004, compared with an average of 5.79% for the
nine months ended September 30, 2003.  The volume of business decreased in the first
three quarters of 2004, as the number of policies and commitments issued for the nine
months declined to 220,329, a decrease of 32% compared with 324,417 in the same period in
2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shown
below is a schedule of premiums written for the three and nine months ended September 30,
2004 and 2003 in all states in which the Company&#146;s two insurance subsidiaries, ITIC and
NE-ITIC, currently underwrite insurance: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td colspan="5" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      the Three Months Ended</font></b></td>
    <td align=LEFT valign="bottom">&nbsp;</td>
    <td colspan="5" align=center valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      the Nine Months Ended</font></b></td>
    <td align=LEFT valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align=LEFT>&nbsp;</td>
    <td colspan="5" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="5" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>State</font></b></td>
    <td colspan="2" align=center valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;2004</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font><font face="Times New Roman, Times, Serif" size=2>2003</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td colspan="2" align=center valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;2004</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td colspan="2" align=center valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font><font face="Times New Roman, Times, Serif" size=2>2003</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top">
      <hr NOSHADE color=#808080 size=1 align="left" width="30">
    </td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom" width="600"><font face="Times New Roman, Times, Serif" size=2>Alabama</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      297,717</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      368,624</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      1,011,387</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      1,014,151</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Florida</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>243,128</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>81,997</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>898,616</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>107,147</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Illinois</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>193,245</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>291,780</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>742,367</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,048,229</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Kentucky</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>449,086</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>476,897</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,318,294</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,418,543</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Maryland</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>414,501</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>388,170</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,151,549</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,363,584</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Michigan</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,208,766</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,945,041</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>3,789,193</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>6,339,491</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Minnesota</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>312,912</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>531,522</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>830,496</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,625,270</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Mississippi</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>245,857</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>362,183</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>758,674</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>927,208</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Nebraska</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>153,045</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>442,975</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>608,851</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,606,527</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>New
      York</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>869,203</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,690,477</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>2,701,375</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>4,796,813</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>North
      Carolina</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>8,419,558</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>8,599,131</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>24,988,144</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>23,508,790</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Pennsylvania</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>615,729</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,836,520</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>2,075,304</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>5,134,214</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>South
      Carolina</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,625,811</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>2,014,621</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>4,871,256</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>5,287,003</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Tennessee</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>750,156</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>984,643</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>2,334,355</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>3,014,397</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Virginia</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,860,509</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>2,696,344</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>5,181,109</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>7,305,163</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>West
      Virginia</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>530,463</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>607,529</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>1,393,544</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>1,641,651</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Other
      States</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>182,383</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>265,484</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>512,271</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>620,457</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Direct
      Premiums</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>18,372,069</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>23,583,938</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>55,166,785</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>66,758,638</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Reinsurance
      Assumed</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>6,231</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Reinsurance
      Ceded</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(37,510</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(114,348</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>(200,818</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>(304,665</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Net
      Premiums</font></b></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      18,334,559</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      23,469,590</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      54,965,967</font></b></td>
    <td align=LEFT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      66,460,204</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"><b></b></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decline in total premiums written was due primarily to lower mortgage refinancing
activity compared with the same period in 2003. Premiums written in Nebraska,
Pennsylvania, Minnesota and New York were also impacted by declining business in
individual agencies in those states. Year to date premiums in North Carolina, the Company&#146;s
largest market, were positively impacted by approximately $5.38 million related to the
rate increase filed on October 1, 2003 for insured closing services. The increase in
Florida is due primarily to the increase in agent business.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shown
below is a breakdown of net premiums from branch offices and issuing agents for the three
and nine months ended September 30: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr align="center">
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="11" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      The Three Months Ended</font></b></td>
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="11" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      The Nine Months Ended</font></b></td>
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td align=LEFT>&nbsp;</td>
    <td colspan="11" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="11" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center">
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">2004</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">%</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">2003</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">%</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">2004</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">%</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">2003</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">%</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td width=100% align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Branch</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      8,143,374</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>44</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      8,577,766</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>37</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      24,431,329</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>44</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      23,575,716</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>35</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Agency</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>10,191,185</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>56</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>14,891,824</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>63</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>30,534,638</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>56</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>42,884,488</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>65</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>Total</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      18,334,559</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>100</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      23,469,590</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>100</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>
      54,965,967</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>100</font></b></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left valign="bottom"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>
      66,460,204</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>100</font></td>
    <td align=LEFT valign="bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td valign="top"></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
premiums written from branch operations decreased 5% for the three months ended September
30, 2004 as compared with the same period in the prior year.  For the nine months ended
September 30, 2004, net premiums written from branch operations increased 4% as compared
with the same period in the prior year. Of the Company&#146;s 29 branch locations that
underwrite title insurance policies, 27 are located in North Carolina and, as a result,
branch net premiums written primarily represent North Carolina business.  The increase in
branch premiums relative to total premiums has increased primarily due to the rate
increase filed in North Carolina. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency
net premiums decreased 32% for the three months ended September 30, 2004 as compared with
the same period in the prior year. For the nine months ended September 30, 2004, agency
net premiums decreased 29% as compared with the same prior year period. The majority of
the decrease in agency net premiums written in the third quarter 2004 and for the
nine-month period ended September 30, 2004 can be attributed to the general decline in
business due to the slowdown in refinancing activity as a result of increased interest
rates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decrease in other revenues was primarily attributed to a decline in settlement-related
services. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
increase in exchange services revenue for the three and nine months ended September 30,
2004 was due to both an increase in the volume of transactions resulting from increased
demand for qualified intermediary services, as well as an increase in fees. The Company
believes that this line of business will continue to grow for the reminder of 2004,
although not necessarily at the same rate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Operating
Expenses:</I></B> Total operating expenses decreased 23% and 17% for the three and nine month
periods ended September 30, 2004, respectively, compared with the same periods in 2003.
 This was due primarily to a decrease in commission expense as a result of decreased
business from agent sources. A summary by segment of the Company&#146;s operating expenses,
net of intersegment eliminations, is as follows for the three and nine months ended
September 30: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr align="center">
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="11" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      The Three Months Ended</font></b></td>
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="11" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">For
      The Nine Months Ended</font></b></td>
    <td valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr>
    <td align=LEFT>&nbsp;</td>
    <td colspan="11" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="11" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr align="center">
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr align="center">
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">2004</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">%</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">2003</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">%</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">2004</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><b><font face="Times New Roman, Times, serif" size="2">%</font></b></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">2003</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan="2" valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2">%</font></td>
    <td valign="bottom" nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=left valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
    <td colspan=2 align=RIGHT valign="top">
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td valign="top"></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td width=100% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Title
      Insurance</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 15,446,012</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>96</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 20,357,401</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>98</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 46,450,773</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>96</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 57,356,773</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>98</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Exchange
      Services</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>176,976</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>131,406</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>476,098</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>381,188</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>All Other</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>465,472</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>371,633</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,566,646</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>968,307</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 16,088,460</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>100</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 20,860,440</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>100</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 48,493,517</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>100</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 58,706,268</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>100</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions
to agents decreased 33% for the three months ended September 30, 2004 when compared with
the same quarter in 2003. Commissions to agents decreased 30% for the nine months ended
September 30, 2004 when compared with the same period in 2003.  Commissions decreased due
to the decline in premiums written from agency operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
provision for claims as a percentage of net premiums written was 11.2% for the nine
months ended September 30, 2004, and for the same period in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
salaries, employee benefits and payroll taxes as a percentage of total revenues were 20%
and 16% for the nine months ended September 30, 2004 and 2003, respectively. The increase
in these costs was attributed to several factors, including $513,000 for certain employee
benefits associated with key executive employment agreements entered into in late 2003,
and additional personnel costs related to staff hired by the newly formed Investors Trust
Company and the regulated investment advisory, and various staff additions and salary
adjustments made during the first nine months of 2004.  These increases were partially
offset by a reduction in health insurance expense in the third quarter of 2004 due to
favorable claims experience. The title insurance segment&#146;s total salaries, employee
benefits and payroll taxes accounted for 89% and 93% of the total consolidated amount for
the nine months ended September 30, 2004 and 2003, respectively. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional
fees for the nine months ended September 30, 2004 increased primarily due to the costs
associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002, along with
an increase in various other professional and legal fees. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Provision
for Income Taxes:</I></B> The provision for income taxes was approximately 34% of income before
income taxes for the three months ended September 30, 2004 and 2003. For the nine months
ended September 30, 2004 and 2003, the provision for income taxes was 33.6% and 32.4%,
respectively, of income before income taxes. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Underlined" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Liquidity and Capital
Resources:</U> </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Cash
flows:</I></B> Net cash provided by operating activities for the nine months ended September 30,
2004 was $10,425,377 compared with $10,195,277 for the same nine-month period of 2003.
The slight net increase is primarily the result of a decrease in receivables and other
assets, offset in part by a decrease in provision for claims, a decrease in the provision
for losses on premiums receivable and increased net claim payments. Cash flow from
operations has been the source of financing for additions to the investment portfolio and
expanding operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Payment
of dividends:</I></B> The Company&#146;s ability to pay dividends to its shareholders and operating
expenses is dependent on funds received from the insurance subsidiaries, which are
subject to regulation in the states in which they do business.  These regulations, among
other things, require prior regulatory approval of the payment of dividends and other
intercompany transfers.  The Company believes, however, that amounts available for
transfer from the insurance subsidiaries are adequate to meet the Company&#146;s operating
needs. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidity:</I></B>
Management believes that funds generated from operations will enable the Company to
adequately meet its cash needs and is unaware of any trend or occurrence that is likely
to result in adverse liquidity changes. In addition to operational liquidity, the Company
maintains a high degree of liquidity within its investment portfolio in the form of
short-term investments and other readily marketable securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capital
Expenditures:</I></B> During 2004, the Company has plans for various capital improvement
projects, including an upgrade of certain electronic data processing systems. For the
nine months ended September 30, 2004, the Company purchased electronic data processing
equipment totaling approximately $876,000. Other property additions were approximately
$251,000. The Company anticipates additional capital expenditures of approximately
$150,000 during the remainder of 2004 in connection with these capital improvement
projects. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Off-Balance
Sheet Arrangements and Contractual Obligations:</I></B> It is not the general practice of the
Company to enter into off-balance sheet arrangements nor is it the policy of the Company
to issue guarantees to third parties.  Off-balance sheet arrangements are generally
limited to the future payments under noncancelable operating leases and payments due
under various agreements with third-party service providers and obligations pursuant to
certain executive employment agreements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes the Company&#146;s future estimated cash payments under existing
contractual obligations at September 30, 2004, including payments due by period: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=625>
  <tr valign="bottom" align="center">
    <td nowrap align="left"><b><font face="Times New Roman, Times, serif" size="2">Contractual
      Obligations</font></b></td>
    <td colspan=14 nowrap><font face="Times New Roman, Times, serif" size="2">Payments
      due by period</font></td>
  </tr>
  <tr valign="middle">
    <td>
      <hr NOSHADE color=#808080 size=1 align="left" width="135">
    </td>
    <td colspan=14 align=left>
      <hr NOSHADE color=#808080 size=1 align="center" width="135">
    </td>
  </tr>
  <tr valign="bottom" align="center">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 nowrap><font face="Times New Roman, Times, serif" size="2">Total</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 nowrap><font face="Times New Roman, Times, serif" size="2">Less
      than 1<br>
      year</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 nowrap><font face="Times New Roman, Times, serif" size="2">1
      - 3 years</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 nowrap><font face="Times New Roman, Times, serif" size="2">3
      - 5 years</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 nowrap><font face="Times New Roman, Times, serif" size="2">More
      than 5<br>
      years</font></td>
  </tr>
  <tr valign="top">
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td width=100% align=LEFT><font face="Times New Roman, Times, serif" size="2">Operating
      Lease Obligations</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 1,202,410</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 179,092</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 896,914</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 126,404</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> &#151;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Telecommunications
      Contractual Obligations</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">352,200</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">58,200</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">294,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Other Obligations</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">274,792</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">88,042</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">111,750</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">60,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">15,000</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Executive
      Employment Agreements</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Obligations</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">965,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">965,000</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">Total</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 2,794,402</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 325,334</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 1,302,664</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 186,404</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 980,000</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=2>
    </td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total reserve for all reported and unreported losses the Company incurred through
September 30, 2004 is represented by the reserve for claims. Information regarding the
claims reserve can be found in Note 2 to the consolidated financial statements of this
Form 10-Q.  Further information on contractual obligations related to the reserves for
claims can be found in the Company&#146;s Annual Report on Form 10-K for the year ended
December 31, 2003 as filed with the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equity
Investments:</I></B> The Company&#146;s equity investments are in public companies whose security
prices are subject to volatility.  Should the fair value of these investments fall below
the Company&#146;s cost bases and the financial condition or prospects of these companies
deteriorate, the Company may determine in a future period that this decline in fair value
is other than temporary, requiring that an impairment loss be recognized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Underlined" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Recent Accounting
Pronouncements:</U> </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March 2004, the Emerging Issues Task Force (&#147;EITF&#148;) released EITF Issue 03-01, <I>The
Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments</I>.
The Issue provides guidance for determining whether an investment is
other-than-temporarily impaired and requires certain disclosures with respect to these
investments.  The recognition and measurement guidance for other-than-temporary
impairment has been delayed by the issuance of FASB Staff Position EITF 03-1-1 on
September 30, 2004.  The adoption of this standard is not expected to have a material
impact on the Company&#146;s results of operations, financial condition or liquidity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Underlined" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><U>Safe Harbor Statement</U> </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Quarterly Report on Form 10-Q, as well as information included in future filings by the
Company with the Securities and Exchange Commission (&#147;SEC&#148;) 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 the
Private Securities Litigation Reform Act of 1995 that reflect management&#146;s current
outlook for future periods.  These statements may be identified by the use of words such
as &#147;plan,&#148; &#147;expect,&#148; &#147;aim,&#148; &#147;believe,&#148; &#147;project,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;estimate,&#148;
&#147;will,&#148; &#147;should,&#148; &#147;could&#148; and other expressions that indicate future events and trends.
All statements that address expectations or projections about the future, including
statements about the Company&#146;s strategy for growth, product and service development,
market position, claims, expenditures and financial results, are forward-looking
statements. Forward-looking statements are based on certain assumptions and expectations
of future events that are subject to 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: (1) the demand for title insurance will vary due to factors such as
the cost and availability of mortgage funds, the level of real estate and mortgage
refinance activity, the cost of real estate, consumer confidence, employment levels,
family income levels and general economic conditions; (2) losses from claims may be
greater than anticipated such that reserves for possible claims are inadequate; (3)
unanticipated adverse changes in securities markets could result in material losses on
the Company&#146;s investments; (4) the Company&#146;s dependence on key management personnel, the
loss of whom could have a material adverse effect on the Company&#146;s business; (5) the
Company&#146;s ability to develop and offer products and services that meet changing industry
standards in a timely and cost-effective manner; (6) the costs of producing title
evidence are relatively high, whereas premium revenues are subject to regulatory and
competitive restraints; and (7) state statutes require the Company&#146;s insurance
subsidiaries to maintain minimum levels of capital and surplus and restrict the amount of
dividends that the insurance subsidiaries may pay to the Company without prior regulatory
approval. Other risks and uncertainties may be described from time to time in the
Company&#146;s other reports and filings with the SEC. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<A NAME="a08"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 3.
<U>Quantitative and Qualitative Disclosures About Market Risk</U></FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
material changes in the Company&#146;s market risk or market strategy occurred since December
31, 2003.  A detailed discussion of market risk is provided in the Company&#146;s 2003 Annual
Report on Form 10-K for the period ended December 31, 2003. </FONT></P>

<A NAME="a09"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 4. <U>Controls
and Procedures</U></FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;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 &#147;Act&#148;) was recorded, processed, summarized and
reported within the time periods specified by the Securities and Exchange Commission&#146;s
rules and forms.  An evaluation was performed under the supervision and with the
participation of the Company&#146;s management, including its Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the design and operation of the
Company&#146;s disclosure controls and procedures pursuant to Rule 13a-15(e) under the Act.
Based on that evaluation, the Company&#146;s Chief Executive Officer and Chief Financial
Officer concluded that the Company&#146;s disclosure controls and procedures were effective as
of September 30, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter ended September 30, 2004, there was no change in the Company&#146;s internal
control over financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company&#146;s internal control over financial reporting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>PART II. OTHER
INFORMATION</FONT></H2>

<A NAME="a10"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 2.
<U>Unregistered Sales of Equity Securities and Use of Proceeds</U></FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
following table provides information about purchases by the Company (and all affiliated
purchasers) during the quarter ended September 30, 2004 of equity securities that
           are registered by the Company pursuant to Section 12 of the Exchange Act:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10 Underlined" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Issuer Purchases of
Equity Securities</U></FONT></H1>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom align="center">
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2">Period</font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">Total
      Number of<br>
      Shares <br>
      Purchased <br>
      </font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">Average
      Price <br>
      Paid per Share<br>
      </font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Total Number of <br>
      Shares Purchased as<br>
      Part of Publicly <br>
      Announced Plan <br>
      </font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
    <td colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="2">
      Maximum Number of <br>
      Shares that May Yet <br>
      Be Purchased Under <br>
      the Plan <br>
      </font></b></td>
    <td nowrap><b><font face="Times New Roman, Times, serif" size="2"></font></b></td>
  </tr>
  <tr valign=top>
    <td align=LEFT>
      <hr NOSHADE color=#808080 size=1>
      <font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan="2" align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">Beginning
      of period</font></td>
    <td width=100% align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">393,928</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">07/01/04
      - 07/31/04</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">0</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">N/A</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">0</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">393,928</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">08/01/04
      - 08/31/04</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">10,300</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 30.17</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">10,300</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">383,628</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">09/01/04
      - 09/30/04</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,773</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=left><font face="Times New Roman, Times, serif" size="2">$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2"> 29.42</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">2,773</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size="2">505,855</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td nowrap><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=3 align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
  <tr valign=Bottom bgcolor="#cceeff">
    <td align=LEFT nowrap><font face="Times New Roman, Times, serif" size="2">Total:</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">13,073</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=left><b><font face="Times New Roman, Times, serif" size="2">$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2"> 30.06</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">13,073</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, serif" size="2">505,855</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=3 align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
    <td colspan=2 align=RIGHT><font face="Times New Roman, Times, serif" size="2"></font>
    </td>
    <td><font face="Times New Roman, Times, serif" size="2"></font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
the quarter ended September 30, 2004, ITIC purchased an aggregate of 13,073 shares of the
Company&#146;s common stock pursuant to the purchase plan (the &#147;Plan&#148;) that was
                publicly announced on June 5, 2000.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
June 5, 2000, the Board of Directors of ITIC approved the purchase by ITIC of up to an
aggregate of 500,000 shares of the Company&#146;s common stock pursuant to the Plan.
                Subsequently, the Board of Directors of ITIC approved the purchase of an
additional 125,000 shares of the Company&#146;s common stock pursuant to the Plan.  Unless
terminated                 earlier by resolution of the Board of Directors of ITIC, the
Plan will expire when ITIC has purchased all shares authorized for purchase thereunder.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITIC
intends to make further purchases under this Plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<A NAME="a11"></A>

<!-- MARKER FORMAT-SHEET="Head Minor" FSL="Project" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 6.  <U>Exhibits</U></FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      31(i) </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>      31(ii) </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32 </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certifications
of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18 </FONT></P>
<HR SIZE=5 NOSHADE>

<P STYLE="page-break-after:always"> </P><PAGE>

<BR>


<!-- MARKER FORMAT-SHEET="Para Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><A NAME="a12">SIGNATURE </A></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the  requirements  of the Securities and Exchange Act of 1934,  the  registrant has
duly caused this report to be signed in its behalf by the  undersigned  hereunto duly
authorized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INVESTORS TITLE COMPANY<BR><BR>
<BR>By: /s/ James A. Fine, Jr.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James A. Fine, Jr.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President, Principal Financial Officer and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal Accounting Officer</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: November 12, 2004 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>
<HR SIZE=5 NOSHADE>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>d61227_ex31-i.htm
<DESCRIPTION>EXHIBIT 31(I)
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
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<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61227\d04-61227.eep                                   -->
     <!-- Control Number: 04-61227                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-31(i)</TITLE>
</HEAD>
<BODY>

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<DIV STYLE="WIDTH:600">

<BR>

<!-- MARKER FORMAT-SHEET="Para Right 10" FSL="Project" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B><U>Exhibit 31(i)</U></B> </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, J. Allen Fine, certify that: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Investors Title Company;</FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=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; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;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)) for the registrant and we have: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
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;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)
evaluated the effectiveness of the registrant&#146;s disclosure controls 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  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
c)
disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
that has materially affected, or is reasonably likely to materially affect the registrant&#146;s
internal control over financial reporting; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s
auditors and the audit committee of the registrant&#146;s board of directors: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
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&#146;s ability to record, process, summarize and report financial
information; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)
any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: November 12, 2004 </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ J. Allen Fine<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>J. Allen Fine<BR>
Chief Executive Officer </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<HR SIZE=5 NOSHADE>


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>d61227_ex31-ii.htm
<DESCRIPTION>EXHIBIT 31(II)
<TEXT>


<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
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<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61227\d04-61227.eep                                   -->
     <!-- Control Number: 04-61227                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-31(ii)</TITLE>
</HEAD>
<BODY>

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<DIV STYLE="WIDTH:600">

<BR>

<!-- MARKER FORMAT-SHEET="Para Right 10" FSL="Project" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B><U>Exhibit 31(ii)</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, James A. Fine, Jr., certify that: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Investors Title Company;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=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; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;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)) for the registrant and we have: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
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;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)
evaluated the effectiveness of the registrant&#146;s disclosure controls 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  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
c)
disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
that has materially affected, or is reasonably likely to materially affect the registrant&#146;s
internal control over financial reporting; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s
auditors and the audit committee of the registrant&#146;s board of directors: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
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&#146;s ability to record, process, summarize and report financial
information; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)
any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant&#146;s internal control over financial reporting.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: November 12, 2004 </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ James A. Fine, Jr.<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>James
A. Fine, Jr.<BR>Chief Financial Officer </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<HR SIZE=5 NOSHADE>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>d61227_ex32.htm
<DESCRIPTION>EXHIBIT 32
<TEXT>


<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61227\d04-61227.eep                                   -->
     <!-- Control Number: 04-61227                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-32</TITLE>
</HEAD>
<BODY>

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<DIV STYLE="WIDTH:600">

<BR>

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<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B><U>Exhibit 32</U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certifications<BR>
Pursuant to 18 U.S.C. Section 1350,<BR>As Adopted Pursuant to<BR>
Section 906 of the Sarbanes-Oxley Act of 2002</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section
1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of
Investors Title Company, a North Carolina corporation (the &#147;Company&#148;), does
hereby certify that: </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended, and the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations of
the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Project" -->
<table width=600 cellspacing=0 cellpadding=0 border=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2><br>
      <br>
      <br>
      Dated: November 12, 2004 </font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2><br>
      <br>
      <br>
      /s/ J. Allen Fine<br>
      &#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      J. Allen Fine<br>
      Chief Executive Officer</font></td>
  </tr>
</table>

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<table width=600 cellspacing=0 cellpadding=0 border=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2><br>
      <br>
      <br>
      Dated: November 12, 2004 </font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2><br>
      <br>
      <br>
      /s/ James A. Fine, Jr.<br>
      &#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      James A. Fine, Jr.<br>
      Chief Financial Officer</font></td>
  </tr>
</table>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
<HR SIZE=5 NOSHADE>


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