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<SEC-DOCUMENT>0001169232-05-001699.txt : 20060526
<SEC-HEADER>0001169232-05-001699.hdr.sgml : 20060526

<ACCEPTANCE-DATETIME>20050316172630

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001169232-05-001699

CONFORMED SUBMISSION TYPE:	10-K

PUBLIC DOCUMENT COUNT:		10

CONFORMED PERIOD OF REPORT:	20041231

FILED AS OF DATE:		20050316

DATE AS OF CHANGE:		20050803


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-K

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	000-11774

		FILM NUMBER:		05686633



	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-K
<SEQUENCE>1
<FILENAME>d62961_10-k.htm
<DESCRIPTION>ANNUAL REPORT
<TEXT>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>UNITED STATES<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>SECURITIES AND EXCHANGE COMMISSION<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Washington, D.C. 20549</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>FORM 10-K</B></FONT></P>
</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="12%">&nbsp;</td>
    <td width="8%" align="right" valign="top"><img src="ballotx.jpg" width="14" height="11"></td>
    <td align="center" nowrap><FONT face="Times New Roman, Times, Serif" size=2>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF<br>
    THE SECURITIES EXCHANGE ACT OF 1934 <br>
    for the fiscal year ended December 31, 2004</FONT></td>
    <td width="15%" align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" valign="top">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="right" valign="top"><img src="ballot.jpg" width="11" height="11"></td>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)<br>
    OF THE SECURITIES EXCHANGE ACT OF 1934    </FONT></td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center" valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>Commission file number&nbsp; 0-11774</FONT></td>
  </tr>
  <tr>
    <td align="center" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2><B>INVESTORS TITLE COMPANY</B></FONT></td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>(Exact name of registrant as specified in its charter)</FONT></td>
  </tr>
  <tr>
    <td align="center" valign="bottom">&nbsp;</td>
  </tr>
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  <tr align="center">
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2><B>North Carolina</B> </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>56-1110199</B></FONT></td>
  </tr>
  <tr align="center">
    <td><FONT face="Times New Roman, Times, Serif" size=2>(State or other jurisdiction of&nbsp;<br>
    incorporation or organization)    </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>(I.R.S. Employer<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identification No.)    </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
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<TD vAlign=top>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>121 North Columbia Street<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Chapel Hill, North Carolina&nbsp; 27514<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(919) 968-2200</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities registered pursuant to section 12(b) of the Act:&nbsp;<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>None</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities registered pursuant to section 12(g) of the Act:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Common Stock, no par value</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
or 15(d) 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 <img src="ballotx.jpg" width="14" height="11">&nbsp;&nbsp;&nbsp;No <img src="ballot.jpg" width="11" height="11"></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (&#167;229.405
of this chapter) is not contained herein, and will not be contained, to the best of registrant&#146;s
knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. <img src="ballotx.jpg" width="14" height="11"></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Act).
&nbsp;Yes&nbsp;<img src="ballot.jpg" width="11" height="11">&nbsp;&nbsp;&nbsp;No&nbsp;<img src="ballotx.jpg" width="14" height="11"></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The aggregate market value of the common shares held by non-affiliates was $59,365,278 based on the
closing sales price on the NASDAQ National Market System on the last business day of the registrant&#146;s
most recently completed second fiscal quarter (June 30, 2004). </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>As of February 28, 2005,&nbsp;there were 2,855,744 common shares of the registrant outstanding.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>DOCUMENTS INCORPORATED BY REFERENCE</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Portions of Investors Title Company&#146;s Annual Report to Shareholders for the fiscal year ended
December 31, 2004 are incorporated by reference in Parts I, II and IV hereof and portions of Investors
Title Company&#146;s definitive proxy statement for the Annual Meeting of Shareholders to be held
on&nbsp;May 18, 2005&nbsp;are incorporated by reference in Part III hereof. </FONT></P></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

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<TD>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>SAFE HARBOR FOR FORWARD-LOOKING&nbsp;STATEMENTS </B></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>This Annual Report on Form 10-K, as well as information included in future filings by the Company with
the Securities and Exchange Commission 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 share position, claims, expenditures,
financial results and cash requirements, are forward-looking statements. Forward-looking statements
are based on certain assumptions and expectations of future events that are subject to a number of
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 interest rate fluctuations, the availability of mortgage funds, the level of real estate transactions,
including 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, including interest rates, 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 affect 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 and significant changes or additions to applicable government regulations; and (6) state statutes require the Company&#146;s insurance subsidiaries
to maintain minimum levels of capital, surplus and reserves and restrict the amount of dividends
that the insurance subsidiaries may pay to the Company without prior regulatory approval. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>These and other risks and uncertainties may be described from time to time in the Company&#146;s other
reports and filings with the Securities and Exchange Commission. </FONT></P></TD></TR>
<TR>
  <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>

<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
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<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>INVESTORS TITLE COMPANY AND SUBSIDIARIES</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>TABLE OF CONTENTS</FONT></P>
</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I</FONT></TD>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 1.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a1">BUSINESS</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a2">PROPERTIES</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 3.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a3">LEGAL PROCEEDINGS</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 4.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a4">SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 4A.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a5">EXECUTIVE OFFICERS OF THE COMPANY</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="30" ALIGN=left valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II</FONT></TD>
    <TD height="30" ALIGN=left valign="top">&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
    <TD height="30" ALIGN=right>&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 5.</FONT></TD>
    <TD height="34" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a6">MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</a></FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 6.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a7">SELECTED FINANCIAL DATA</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 7.</FONT></TD>
    <TD height="34" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a8">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</a></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>15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 7A.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><a href="#a9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></a></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 8.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a10">FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 9.</FONT></TD>
    <TD height="34" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a11">CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</a></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>16</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 9A.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a12">CONTROLS AND PROCEDURES</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 9B.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a13">OTHER INFORMATION</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="30" ALIGN=left valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART III</FONT></TD>
    <TD height="30" ALIGN=left valign="top">&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
    <TD height="30" ALIGN=right>&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 10.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a14">DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 11.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a15">EXECUTIVE COMPENSATION</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 12.</FONT></TD>
    <TD height="34" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a16">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</a></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>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
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    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 13.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a17">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 14.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a18">PRINCIPAL ACCOUNTANT FEES AND SERVICES</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD height="30" ALIGN=left valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART IV</FONT></TD>
    <TD height="30" ALIGN=left valign="top">&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
    <TD height="30" ALIGN=right>&nbsp;</TD>
    <TD height="30" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 15.</FONT></TD>
    <TD height="20" ALIGN=left valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a19">EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</a></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="top"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=bottom>
    <TD height="30" colspan="2" ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#a20">SIGNATURES</a></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD height="20" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD height="20" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></TD>
    <TD height="20" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=3></TD>
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<TD><P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART I</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a1"></a>ITEM 1. &nbsp;&nbsp;BUSINESS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>GENERAL</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors
Title Company (the &#147;Company&#148;) is a holding company that operates through its subsidiaries
and was incorporated in the State of North Carolina in February 1973. The Company became operational
on June 24, 1976, when it acquired Investors Title Insurance Company (&#147;ITIC&#148;) as a wholly
owned subsidiary under a plan of exchange of shares of common stock. On September 30, 1983, the Company
acquired Northeast Investors Title Insurance Company (&#147;NE-ITIC&#148;), formerly Investors Title
Insurance Company of South Carolina, as a wholly owned subsidiary under a plan of exchange of shares
of common stock. Investors Capital Management Company (&#147;ICMC&#148;), a wholly owned subsidiary
of the Company, was organized on October 17, 2003. The Company&#146;s most recent subsidiary, Investors
Trust Company (&#147;Investors Trust&#148;), was granted a trust charter by the North Carolina Banking
Commissioner on February 17, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company engages primarily in three lines of business. The main business activity is the issuance
of title insurance through ITIC and NE-ITIC. The second line of business provides tax-deferred exchange
services through its subsidiaries, Investors Title Exchange Corporation&nbsp;(&#147;ITEC&#148;)&nbsp;and
Investors Title Accommodation Corporation&nbsp;(&#147;ITAC&#148;). The Company has also recently
entered into a third line of business, which it added to supplement its traditional lines of business,
providing investment management and trust services to individuals, trusts and other entities. See
Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations and Note
13 of Notes to Consolidated Financial Statements in the 2004 Annual Report to Shareholders incorporated
by reference in this Form 10-K Annual Report for additional information related to the revenues,
income and assets attributable to the Company&#146;s operating segments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s executive offices are located at 121 North Columbia Street, Chapel Hill, North Carolina
27514. The Company&#146;s telephone number is (919) 968-2200, its facsimile number is (919) 968-2235,
and its Internet address is <u>www.invtitle.com</u>, the contents of which are not and shall not be deemed
a part of this document or any other U.S. Securities and Exchange filing. The Company makes available
free of charge on its Internet website its annual report on Form 10-K, its quarterly reports on Form
10-Q, its current reports on Form 8-K, and all amendments to those reports filed or furnished pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after such materials are electronically filed with or furnished to the Securities and Exchange Commission.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Through its two wholly owned subsidiaries, 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.
Title insurance protects against loss or damage resulting from defects that affect the title to real
property. The commitment and policies issued are the standard American Land Title Association approved
forms.</FONT></P></TD></TR></TABLE>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 needs to purchase an owner&#146;s title insurance
policy to protect his investment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 legal 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>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>A title defect is one of any number of things that could jeopardize the property owner&#146;s interest.
It could be an unsatisfied mortgage, lien, judgment or other unrecorded claim against the property.
It could arise through easements, use restrictions or other existing covenants, or it could be a
hidden risk. Title insurance generally protects against four kinds of hidden risks&nbsp;&#151; errors
in the public records such as incorrect information in deeds and mortgages regarding names, signatures
and legal descriptions; judgments, liens and mortgages or any other claims against the property or
the seller which become the new owner&#146;s responsibility after closing, such as unpaid taxes,
assessments and other debts to creditors; claims to ownership by the spouse of a former owner or
by the &#147;missing heir&#148; of a deceased owner who did not receive his share of the estate;
and invalid deeds or other transfers by sellers who did not actually own the property or by previous
owners who were minors or not mentally competent.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company assumes and cedes reinsurance with other insurance companies in the normal course of business.
Ceded reinsurance is comprised of excess of loss treaties, which protects against losses over certain
amounts.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
was incorporated in the State of North Carolina on January 28, 1972, and became licensed to write
title insurance in the State of North Carolina on February 1, 1972. At present, ITIC mainly writes
land title insurance both as a primary insurer and as a reinsurer throughout the eastern and midwestern
United States. ITIC writes title insurance through issuing agents or branch offices in the District
of Columbia and the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana,
Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio,
Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin. In addition to the
states in which ITIC currently writes title insurance, it is also licensed to write title insurance
in 17 additional states. Agents issue policies for ITIC and may provide other services such as search
and settlement services.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NE-ITIC
was incorporated in the State of South Carolina on February 23, 1973, and became licensed to write
title insurance in that state on November 1, 1973. It currently writes title insurance as a primary
insurer and as a reinsurer in the State of New York. NE-ITIC is also licensed to write title insurance
in North Carolina and South Carolina. </FONT></P></TD></TR></TABLE>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
state license authorizing ITIC or NE-ITIC to write title insurance must be renewed annually. These
licenses are necessary for the companies to operate as a title insurer in each state in which they
are held and the loss of a license in any state by either company would prevent the company from
issuing title insurance in that state. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the State of North Carolina, ITIC issues title insurance commitments and policies through its home
office and its 27 branch offices that are located throughout North Carolina. The Company also has
a branch office in South Carolina and Michigan. Title policies are primarily issued through issuing
agents in other states.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the ordinary course of business, ITIC and NE-ITIC reinsure certain risks with other title insurers
for the purpose of limiting their exposure. They also assume reinsurance for certain risks of other
title insurers for which they receive additional income. For the last three years, reinsurance activities
accounted for less than 1% of total premium volume.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2004, ITIC had a risk retention limit of&nbsp;$2,750,000, meaning that it assumed
primary risks up to $2,750,000. It then reinsured the next $250,000 of risk with NE-ITIC, and all
risks above $3,000,000 were reinsured with an unrelated reinsurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2004, NE-ITIC had a risk retention limit of $250,000, meaning that it assumed primary
risks up to $250,000. It then reinsured the next $2,750,000 of risk with ITIC, and all amounts above
$3,000,000 were reinsured with an unrelated reinsurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both
ITIC&#146;s and NE-ITIC&#146;s risk retention limits are self-imposed and are more conservative than
state insurance regulations require. ITIC&#146;s self-imposed retention of $2,750,000 is only 15%
of its statutorily permitted retention of $18,371,349. NE-ITIC&#146;s self-imposed retention of $250,000
is only 12.3% of its statutorily permitted retention of $2,025,024.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
has been recognized by two independent Fannie Mae-approved actuarial firms, Demotech, Inc. and LACE
Financial Corporation, with rating categories of &#147;A Double Prime&#148; and &#147;A.&#148;&nbsp;NE-ITIC&#146;s
financial stability also has been recognized by Demotech, Inc. and LACE Financial Corporation with
rating categories of &#147;A Prime&#148; and &#147;A+.&#148;&nbsp;According to Demotech, title insurance
underwriters earning a financial stability rating of A&#146;&#146; (A Double Prime) or A&#146; (A
Prime) possess unsurpassed financial stability related to maintaining positive surplus as regards
policyholders,&nbsp;regardless of the severity of a general economic downturn or deterioration in
the title insurance cycle. A LACE rating of &#147;A+&#148; or &#147;A&#148; indicates that a title
insurance company has a strong overall financial condition that will allow it to meet its future
claims and that, generally, the company has good operating earnings, is well capitalized and has adequate reserves.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
1988, the Company established Investors Title Exchange Corporation, a wholly owned subsidiary (&#147;ITEC&#148;),
to provide services in connection with tax-deferred exchanges of like-kind property. ITEC acts as
an intermediary in tax-deferred exchanges of property held for productive use in a trade or business
or for investments, and its income is derived from fees for handling exchange transactions.</FONT></P></TD></TR></TABLE>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company established South Carolina Document Preparation Company (&#147;SCDPC&#148;) as a wholly owned
subsidiary in 1994. In the first quarter of 2001, SCDPC changed its name to&nbsp;Investors Title
Accommodation Corporation (&#147;ITAC&#148;) and began serving as an exchange accommodation titleholder,
offering a vehicle for accomplishing a reverse exchange when a taxpayer must acquire replacement
property before selling the relinquished property.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Investment Management and Trust Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company organized ICMC, a wholly owned subsidiary, as a North Carolina corporation on October 17,
2003. ICMC is currently licensed as an investment adviser in North Carolina and South Carolina. Investors
Trust, also a wholly owned subsidiary of the Company, received its North Carolina trust charter on
February 17, 2004. The Company anticipates that ICMC and Investors Trust will work together to provide
investment management and trust services to individuals, companies, banks and trusts. These subsidiaries
did not have significant activities in 2004, and are not currently a reportable segment for which
financial information is presented in the financial statements and there is no assurance that this
business will be successful.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>OPERATIONS OF SUBSIDIARIES</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a description of net premiums written geographically, refer to Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations. See Note 13 of Notes to Consolidated Financial
Statements in the 2004 Annual Report to Shareholders incorporated by reference in this Form 10-K
Annual Report for additional information related to the Company&#146;s operating segments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
and NE-ITIC issues title insurance coverage through its direct operations or through partially owned
or independent title insurance agents. ITIC and NE-ITIC offer primary title insurance coverage to
owners and mortgagees of real estate and reinsurance of title insurance risks to other title insurance
companies. Title insurance premiums written reflect a one-time premium payment, with no recurring
premiums. Premiums are recorded and policies or commitments are issued upon receipt of final certificates
or preliminary reports with respect to titles. Title insurance commissions earned by the Company&#146;s
agents are recognized as expense concurrently with premium recognition. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITEC
and ITAC provide customer&nbsp;services in connection with tax-deferred real property&nbsp;exchanges
pursuant to Section 1031 of the Internal Revenue Code. As a&nbsp;qualified intermediary, ITEC&nbsp;holds
the proceeds from sales&nbsp;of relinquished properties&nbsp;until the&nbsp;acquisition of identified
replacement properties occurs. ITAC facilitates tax-deferred&nbsp;reverse exchanges pursuant to IRS
Revenue Procedure 2000-37. These exchanges require ITAC, using funds borrowed on a non-recourse basis
from the customer or his lender, to acquire the designated replacement property on behalf of the
customer&nbsp;by taking temporary title to the customer&#146;s property until after the disposition
of identified relinquished property occurs.</FONT></P></TD></TR></TABLE>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>SEASONALITY</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title
insurance premiums are closely related to the level of real estate activity and the average price
of real estate sales. The availability of funds to finance purchases directly affects real estate
sales. Other factors include consumer confidence, economic conditions, supply and demand, mortgage
interest rates and family income levels. Historically, the first quarter has the least real estate
activity because fewer real estate transactions occur, while the remaining quarters are more active.
Refinance activity is generally less seasonal, but it is subject to interest rate volatility. Fluctuations
in mortgage interest rates can cause shifts in real estate activity outside of the normal seasonal pattern. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seasonal
factors affecting the level of real estate activity and the volume of title premiums written will
also affect the demand for exchange services.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>MARKETING</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2>ITIC delivers&nbsp;title insurance coverage through a home office, branch offices, and issuing agents.
In North Carolina, ITIC issues policies primarily&nbsp;through a home office and&nbsp;27&nbsp;branch offices.
The Company also has a branch office in South Carolina and Michigan. ITIC also
writes title insurance policies through issuing agents in the District of Columbia and the States
of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota,
Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia,
West Virginia and Wisconsin. Issuing agents are typically real estate attorneys
or subsidiaries of community and regional mortgage lending institutions, depending on local customs
and regulations and the Company&#146;s marketing strategy in a particular territory.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2>NE-ITIC currently operates through agency offices in the State of New York.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
and NE-ITIC strive to provide superior service to their customers and consider this an important
factor in attracting and retaining customers. Branch and corporate personnel strive to develop new
business and agency relationships to increase market share and ITIC&#146;s Commercial Services Division
provides services to commercial clients. The Company&#146;s marketing efforts are also enhanced through
advertising in various periodicals. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing
of exchange services offered by ITEC and ITAC has been increasingly incorporated into the marketing
of the core title products offered by ITIC and NE-ITIC. The Commercial Services Division of ITIC
also markets the services offered by ITEC and ITAC to its clients.</FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2><U>CUSTOMERS</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is not dependent upon any single customer or a few customers, and the loss of any single
customer would not have a material adverse effect on the Company.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>INSURED RISK ON POLICIES IN FORCE</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
the amount of the insured risk on a title insurance policy is equal to the lesser of the purchase
price of the insured property or the fair market value of the property. In the event that a claim
is made against the property, the insurer is also responsible for paying all legal expenses in connection
with defending the insured party and eliminating any title defects affecting the property. The insurer
may, however, choose to pay the policy limits to the insured, at which time the insurer&#146;s duty
to defend the claim is satisfied. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>At any given time, the insurer&#146;s actual financial risk is only a portion of the aggregate insured
risk of all policies in force. The reduction in risk results in part from the reissuance of title
insurance policies by other underwriters when the property is conveyed or refinanced. An owner&#146;s
policy is effective only as long as the insured has an ownership interest in the property or has
liability under warranties of title. Furthermore, the coverage on a lender&#146;s title insurance
policy is reduced and eventually terminated as the loan it secures is paid. Due to the variability
of these factors, the aggregate contingent liability of the Company and its subsidiaries cannot be
determined with any precision.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>ENVIRONMENTAL MATTERS</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
title insurance policies ITIC and NE-ITIC currently issue exclude liability for environmental risks
and contamination. Although policies issued prior to 1992 may not specifically exclude such environmental
risks, they generally do not provide affirmative coverage for such risks. As a result, the Company
does not anticipate that it or its subsidiaries will incur any significant expenses related to environmental
claims.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with effecting tax-deferred exchanges of like-kind property, ITEC and ITAC may temporarily
hold title to property pursuant to an accommodation titleholder agreement. In such situations, the
person or entity for which title is being held must execute an indemnification agreement pursuant
to which it agrees to indemnify ITEC or ITAC, as appropriate, for any environmental or other claims
which may arise as a result of the arrangement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>REGULATIONS</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is an insurance holding company and therefore it is subject to regulation in the states in
which its insurance subsidiaries do business. These regulations, among other things, require insurance
holding companies to register and file certain reports and require prior regulatory approval of the
payment of dividends and other intercompany transfers. </FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2>Title insurance companies are extensively regulated under applicable state laws. All states have requirements
for admission to do business as an insurance company, including minimum levels of capital and surplus.
State regulatory authorities monitor the stability and service of insurance companies and possess
broad powers with respect to the licensing of title insurers and agents, rates, type and amount of&nbsp;investments,
policy forms, financial reporting, reserve requirements, and dividend restrictions, as well as examinations
and audits of title insurers. The Company&#146;s two insurance subsidiaries are subject to examination
at any time by the insurance regulators in the states where they are licensed. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Proposals to change the laws and regulations governing insurance holding companies and the title insurance
industry are often introduced in Congress, in the state legislatures and before the various insurance
regulatory agencies. The Company regularly monitors such proposals and legislation, although the
likelihood and timing of them and the impact they may have on the Company and its subsidiaries cannot
be determined at this time.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U>ITIC
is domiciled in North Carolina and is subject to North Carolina insurance regulations. The North
Carolina Department of Insurance typically schedules financial examinations every five years. ITIC
was last examined by the North Carolina Department of Insurance for the period January 1, 1995 through
December 31, 1999. No material deficiencies were noted in the report. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NE-ITIC
is domiciled in South Carolina and subject to South Carolina insurance regulations. The South Carolina
Department of Insurance periodically schedules financial examinations. NE-ITIC was examined by the
South Carolina Department of Insurance for the period January 1, 1998 through December 31, 2000.
No material deficiencies were noted in the report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U>In
addition to financial examinations, ITIC and NE-ITIC are subject to market conduct examinations by
the North Carolina Department of Insurance and the South Carolina Department of Insurance, respectively.
These audits examine domiciled state activity. ITIC&#146;s last market conduct examination commenced
on May 3, 2004 for the period January 1, 2001 through December 31, 2003, with no material deficiencies
noted. NE-ITIC&#146;s last market conduct examination coincided with its financial examination, which
commenced in November 2001 for the period January 1, 1998 through December 31, 2000. No material
deficiencies were noted for NE-ITIC by the market conduct examiners.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U>Both
ITIC and NE-ITIC meet the statutory premium reserve requirements and the minimum capital and surplus
requirements of the states in which they are licensed.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intermediary
services are not federally regulated and neither ITEC nor ITAC operate in any states that regulate
this industry. ITEC and ITAC both provide services to taxpayers pursuant to Internal Revenue Service
(&#147;IRS&#148;) regulations that&nbsp;provide taxpayers a safe harbor by using a qualified intermediary
to structure tax-deferred exchanges of property and using an exchange accommodation titleholder to
hold property in reverse exchange transactions. Periodically, changes to the tax code provisions
affecting like-kind exchanges are considered, which could possibly eliminate the need for the services
the exchange segment provides. </FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>10</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2><U>COMPETITION</U> &nbsp;&nbsp;&nbsp; </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Title Insurance</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
currently operates primarily in North Carolina, Michigan, Pennsylvania, South Carolina, Tennessee
and Virginia and NE-ITIC currently operates in New York. ITIC&#146;s and NE-ITIC&#146;s major competitors,
which together comprise a majority of the title insurance market on a national level, are Chicago
Title Insurance Company, Commonwealth Land Title Insurance Company, Fidelity National Title Insurance
Company, First American Title Insurance Company, Lawyers Title Insurance Corporation, Old Republic
National Title Insurance Company and Stewart Title Guaranty Company. Key factors that affect competition
in the title insurance industry are price, expertise, timeliness and quality of service and the financial
strength and size of the insurer. Title insurance underwriters also compete for agents based upon
the ratio of premium splits between the underwriter and the agent.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In addition, there are numerous industry-related regulations and statutes that set out conditions and
requirements to conduct business. Changes to or the removal of such regulations and statutes could
result in additional competition from alternative title insurance products or new entrants into the
industry that could materially affect the Company&#146;s business operations and financial condition.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exchange Services</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition
for ITEC and ITAC comes from other title insurance companies as well as some major banks that offer
exchange services. Key elements that affect competition are price, expertise, timeliness and quality
of service and the financial strength and size of the company. Exchange services are not a regulated
industry; therefore, there is no market data available regarding the Company&#146;s market position
in this industry.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>INVESTMENTS</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and its subsidiaries derive a substantial portion of their income from investments in bonds
(municipal and corporate) and equity securities. The investment policy is designed to maintain a
high quality portfolio and maximize income. Some state laws impose restrictions upon the types and
amounts of investments that can be made by the Company&#146;s insurance subsidiaries.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
Note 3 of Notes to Consolidated Financial Statements in the 2004 Annual Report to Shareholders incorporated
by reference in this Form 10-K Annual Report for the major categories of investments, earnings by
investment categories, scheduled maturities, amortized cost, and market values of investment securities.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>EMPLOYEES</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has no paid employees. Officers of the Company are full-time paid employees of ITIC. The
Company&#146;s subsidiaries had 214 full-time employees and 13 part-time employees as of December
31, 2004. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the employees of the Company or its subsidiaries are subject to a collective bargaining agreement.
Management considers its relationship with its employees to be favorable.</FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2><U>INTELLECTUAL PROPERTY</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has registered two service marks with the United States Patent and Trademark Office (the
&#147;USPTO&#148;). The first mark was registered with the USPTO on August 29, 2000 and the second
mark was registered on September 12, 2000. In addition, ITIC registered a service mark with the USPTO
on February 3, 1987. In the Company&#146;s opinion, the loss of these registrations would not materially
affect its business or the business of its subsidiaries.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a2"></a>ITEM 2. &nbsp;&nbsp;PROPERTIES</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company owns two adjacent office buildings and property located on the corner of North Columbia and
West Rosemary Streets in Chapel Hill, North Carolina, which serves as the Company&#146;s corporate
headquarters. The main building contains approximately 23,000 square feet and has on-site parking
facilities. The Company&#146;s principal subsidiary, ITIC, leases office space in 33 locations throughout
North Carolina, South Carolina, Michigan, Nebraska and Tennessee. NE-ITIC leases office space in
one location in New York. Each of the office facilities occupied by the Company and its subsidiaries
are in good condition and adequate for present operations. In September 2004, additional space in
Chapel Hill, North Carolina was leased for ITEC, ITAC, ITIC&#146;s Commercial Services Division and
ITIC&#146;s Settlement Services Division.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a3"></a>ITEM 3. &nbsp;&nbsp;LEGAL PROCEEDINGS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a4"></a>ITEM 4. &nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
matters were submitted to a vote of security holders during the fourth quarter of the fiscal year
ended December 31, 2004. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a5"></a>ITEM 4A.&nbsp; EXECUTIVE OFFICERS OF THE COMPANY&nbsp;&nbsp; </B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
is information regarding the executive officers of the Company as&nbsp;of February 28, 2005. Each
officer is appointed at the annual meeting of the Board of Directors to serve until the next annual
meeting of the Board or until his or her respective successor has been elected and qualified.</FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12</FONT></P>
<HR color=gray noShade SIZE=5>
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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left"><u><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Name</FONT></u></TH>
    <TH><u></u></TH>
    <TH align="left"><u><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Age</FONT></u></TH>
    <TH><u></u></TH>
    <TH align="left"><u><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Position with Registrant</FONT></u></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=left><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="25%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>J. Allen Fine</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70</FONT></TD>
    <TD WIDTH=6% 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>Chief Executive Officer and Chairman of the Board</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=top>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>James A. Fine, Jr.</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>42</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>President, Treasurer, Chief Financial Officer, Chief<br>
    Accounting Officer and Director    </FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>W. Morris Fine</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>38</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>Executive Vice President, Secretary and Director</FONT></TD>
  </TR>
</TABLE>
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<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>J. Allen Fine</U> &nbsp;has been Chief Executive Officer and Chairman of the Board of the Company since its incorporation
in 1973. Mr. Fine also served as President of the Company until May 1997. Mr. Fine is the father
of James A. Fine, Jr., President, Treasurer and Director of the Company, and W. Morris Fine, Executive
Vice President, Secretary and Director of the Company.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>James A. Fine, Jr.</U> &nbsp;was named Vice President of the Company in 1987. In 1997, he was named President and Treasurer
and appointed as a Director of the Company. He is the son of J. Allen Fine, Chief Executive Officer
and Chairman of the Board of the Company, and the brother of W. Morris Fine, Executive Vice President,
Secretary and Director of the Company. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>W. Morris Fine</U> &nbsp;was named Vice President of the Company in 1992. In 1993, he was named Treasurer of the Company
and served in that capacity until 1997. In 1997, he was named Executive Vice President and Secretary
of the Company. In 1999, he was appointed as a Director of the Company. W. Morris Fine is the son
of J. Allen Fine, Chief Executive Officer and Chairman of the Board of the Company, and the brother
of James A. Fine, Jr., President, Treasurer and Director of the Company. </FONT></P></TD></TR></TABLE>
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<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>13</FONT></P>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART II</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a6"></a>ITEM 5. &nbsp;&nbsp;MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES </B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
high and low sales prices for the Company&#146;s common stock, as reported on the NASDAQ National
Market System, the dividends paid per common share for each quarter in the last two fiscal years
and the approximate number of shareholders of record are set forth under the caption &#147;Common
Stock Data&#148; in the 2004 Annual Report to Shareholders and are incorporated by reference in this
Form 10-K Annual Report. For a discussion of factors that may limit the Company&#146;s ability to
pay dividends on its common stock, refer to the subsection of Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations entitled &#147;Liquidity and Capital Resources&#148;
in the 2004 Annual Report to Shareholders, incorporated by reference in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table provides information about the Company&#146;s compensation plans under which equity
securities are authorized for issuance as of December 31, 2004. The Company does not have any equity
compensation plans that have not been approved by its shareholders.</FONT></P>
</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Plan Category</FONT></TH>
    <TH colspan="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number of Securities to<BR>
      be Issued Upon Exercise<BR>
      of Outstanding Options,<BR>
    Warrants and Rights</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted Average<BR>
      Price of Outstanding<BR>
      Options, Warrants<BR>
      and Rights</FONT></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number of Securities<BR>
      Remaining Available<BR>
      for Future Issuance<BR>
      Under Equity<BR>
    Compensation Plans</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><hr align="left" width="60" size="1" noshade></TH>
    <TH colspan="2"><hr align="center" size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr align="center" size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><hr align="center" size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity compensation plans<br>
      approved by shareholders</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>246,781</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> $&nbsp;&nbsp;16.45</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>196,300</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT bgcolor="#EAF9E8">&nbsp;</TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity compensation plans not<br>
      approved by shareholders </FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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=RIGHT>&nbsp;</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=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr align="left" width="100%" size="1" noshade></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>246,781</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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;&nbsp;16.45</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>196,300</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information about purchases by the Company (and all affiliated purchasers) during the quarter ended December 31, 2004 of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act:&nbsp;</FONT></P>
    <P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>Issuer Purchases of Equity Securities</U></FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Period</FONT></TH>
    <TH width="2%">&nbsp;</TH>
    <TH width="18%"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total Number of<BR>
      Shares<br>
      Purchased</FONT></TH>
    <TH width="3%">&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Average Price<BR>
      Paid per Share</FONT></TH>
    <TH width="3%">&nbsp;</TH>
    <TH width="18%"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total Number of<BR>
      Shares Purchased as<BR>
      Part of Publicly<br>
      Announced Plan</FONT></TH>
    <TH width="3%">&nbsp;</TH>
    <TH width="18%"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Maximum Number of<br>
      Shares that May Yet Be<BR>
      Purchased Under the<br>
      Plan</FONT></TH>
    <TH width="2%">&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><hr align="center" width="45" size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH><HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT>
        <HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH><HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH><HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Beginning of period</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="18%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=LEFT>&nbsp;</TD>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="18%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="18%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>505,855</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/01/04 - 10/31/04</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,052</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 31.30</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>2,052</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>503,803</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11/01/04 - 11/30/04</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>236</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 33.87</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>236</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>503,567</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12/01/04 - 12/31/04</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,695</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 34.81</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>8,695</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>494,872</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,983</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>$</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 34.13</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,983</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>494,872</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>14</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>For the quarter ended December 31, 2004, ITIC purchased an aggregate of 10,983 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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>ITIC intends to make further purchases under this Plan.</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a7"></a>ITEM 6. &nbsp;&nbsp;SELECTED FINANCIAL DATA</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selected financial data for the last five fiscal years of the Company and its subsidiaries is set
forth under the caption &#147;Financial Highlights&#148; in the 2004 Annual Report to Shareholders
and is incorporated by reference in this Form 10-K Annual Report. The information should be read
in conjunction with the Consolidated Financial Statements, Notes to Consolidated Financial Statements
and Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations in
the 2004 Annual Report to Shareholders, which are incorporated by reference in this Form 10-K Annual
Report. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a8"></a>ITEM 7. &nbsp;&nbsp;&nbsp;MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations in the 2004 Annual Report
to Shareholders is incorporated by reference in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a9"></a>ITEM 7A. &nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK&nbsp;</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
subsection entitled &#147;Quantitative and Qualitative Disclosures about Market Risk&#148; in Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations in the 2004 Annual Report
to Shareholders is incorporated by reference in this Form 10-K Annual Report. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a10"></a>ITEM 8. &nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements and supplementary data in the 2004 Annual Report to Shareholders are incorporated
by reference in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements meeting the requirements of Regulation S-X are attached hereto as Schedules
I, II, III, IV and V.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
supplementary financial information set forth in the section entitled &#147;Selected Quarterly Financial
Data&#148; in Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations
in the 2004 Annual Report to Shareholders is incorporated by reference in this Form 10-K Annual Report.
</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>15</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a11"></a>ITEM 9. &nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No reportable item. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a12"></a>ITEM 9A. &nbsp;&nbsp;CONTROLS AND PROCEDURES</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
December 31, 2004. In reaching this conclusion, the Company&#146;s Chief Executive Officer and Chief
Financial Officer determined that the Company&#146;s disclosure controls and procedures were effective
in ensuring that such information was accumulated and communicated to the Company&#146;s management
as appropriate to allow timely decisions regarding required disclosure.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter ended December 31, 2004, there was no change in the Company&#146;s internal control over
financial reporting identified in connection with the above-referenced evaluation that has materially
affected, or is reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a13"></a>ITEM 9B. &nbsp;&nbsp;OTHER INFORMATION</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B> There was no information required to be disclosed in a report on Form 8-K during the fourth quarter
of the year that has not been reported.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>16</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART III</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a14"></a>ITEM 10. &nbsp;&nbsp;&nbsp;DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
pertaining to Directors of the Company under the heading &#147;Election of Directors&#148; in the
Company&#146;s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on&nbsp;May
18, 2005&nbsp;is incorporated by reference in this Form 10-K Annual Report. Other information with
respect to executive officers is contained in Part I - Item 4(a) under the caption &#147;Executive
Officers of the Company&#148;. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has adopted a written Code of Business Conduct and Ethics that applies to all officers, directors
and employees of the Company and its subsidiaries. The Code of Business Conduct and Ethics can be
found on the Company&#146;s website at <u>www.invtitle.com</u>. The Company intends to make all required
disclosures concerning any amendments to, or waivers from, the Code of Business Conduct and Ethics
on its website. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a15"></a>ITEM 11. &nbsp;&nbsp;EXECUTIVE COMPENSATION</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
set forth under the headings &#147;Executive Compensation&#148; and &#147;Compensation Committee
Interlocks and Insider Participation&#148; in the Company&#146;s definitive Proxy Statement relating
to the Annual Meeting of Shareholders to be held on&nbsp;May 18, 2005&nbsp;is incorporated by reference
in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a16"></a>ITEM 12. &nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
pertaining to securities ownership of certain beneficial owners and management under the heading
&#147;Stock Ownership of Executive Officers and Certain Beneficial Owners&#148; in the Company&#146;s
definitive Proxy Statement relating to the Annual Meeting of Shareholders to be held on&nbsp;May
18, 2005&nbsp;is incorporated by reference in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a17"></a>ITEM 13. &nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Information set forth under the heading &#147;Executive Employment Agreements&#148; in the Company&#146;s
definitive Proxy Statement relating to the Annual Meeting of Shareholders to be held on&nbsp;May
18, 2005&nbsp;is incorporated by reference in this Form 10-K Annual Report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a18"></a>ITEM 14. &nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
pertaining to principal accountant fees and services under the heading &#147;Independent Auditor
Audit and Non-Audit Fees&#148; in the Company&#146;s definitive Proxy Statement relating to the Annual Meeting of Shareholders
to be held on May 18, 2005&nbsp;is incorporated by reference in this Form 10-K Annual Report.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>17</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART IV</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a19"></a>ITEM 15. &nbsp;&nbsp;EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</B></FONT></P>
</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)(1)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Financial Statements</U>.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following financial statements in the 2004 Annual Report to Shareholders are hereby incorporated </FONT></TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>by reference in this Form 10-K Annual Report:</FONT></TD>
  </TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidated Balance Sheets as of December 31, 2004 and 2003 </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidated Statements of Income for the Years Ended December 31, 2004, 2003 and 2002</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidated Statements of Stockholders&#146; Equity for the Years Ended December 31, 2004, 2003 and
2002</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2004, 2003 and 2002</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidated Statements of Cash Flows for the Years Ended December 31, 2004, 2003 and 2002</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notes to Consolidated Financial Statements</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Report of Independent Auditors</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)(2)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Financial Statement Schedules</U>.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Following is a list of financial statement schedules filed as part of this Form 10-K Annual Report:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><u><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Schedule Number</FONT></u></TH>
    <TH><u></u></TH>
    <TH align="left"><u><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Description</FONT></u></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=8% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=13% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I</FONT></TD>
    <TD WIDTH=3% 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>Summary of Investments - Other Than Investments in Related Parties</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II</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>Condensed Financial Information of Registrant</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>III</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>Supplementary Insurance Information</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IV</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>Reinsurance</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V</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>Valuation and Qualifying Accounts</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>All other schedules are omitted, as the required information either is not applicable, is not required,
or is presented in the consolidated financial statements or the notes thereto.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>(a)(3)&nbsp;&nbsp;&nbsp;&nbsp; <U>Exhibits</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exhibits filed as a part of this report and incorporated herein by reference to other documents are
listed in the Index to Exhibits to this Annual Report on Form 10-K.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>18</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a20"></a>SIGNATURES</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2><B>INVESTORS TITLE COMPANY</B></FONT></td>
  </tr>
  <tr align="center">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2> (Registrant)</FONT></td>
  </tr>
  <tr>
    <td width="35%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ J. Allen Fine</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine, Chairman and Chief Executive </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Officer <I>(Principal Executive Officer)</I></FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>March 16, 2005</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below
by the following persons on behalf of the Registrant and in the capacities indicated on the 16th
day of March, 2005.</FONT></P></TD></TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ J. Allen Fine</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">J. Allen Fine, Chairman of the Board and</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">James R. Morton, Director</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Chief Executive Officer</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"><I>(Principal Executive Officer)</I></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ James A. Fine, Jr.</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ A. Scott Parker III</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">James A. Fine, Jr., President, Treasurer and </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">A. Scott Parker III, Director</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Director <I>(Principal Financial Officer and </I></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"><I>Principal Accounting Officer)</I></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Morris Fine</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ H. Joe King, Jr.</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">W. Morris Fine, Executive Vice President,</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">H. Joe King, Jr., Director</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Secretary and Director</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ David L. Francis</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ William J. Kennedy III </font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">David L. Francis, Director</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">William J. Kennedy III, Director</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;/s/ Loren B. Harrell, Jr.</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Loren B. Harrell, Jr., Director</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>19</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE width="600" border=0 cellPadding=0 cellSpacing=0>
     <TR align="right" vAlign=bottom>
      <td colSpan=11><b><u><font size="2" face="Times New Roman, Times, serif">SCHEDULE I</font></u></b></td>
    </TR>
    <TR align="center" vAlign=bottom>
      <td colSpan=11>&nbsp;</td>
    </TR>
    <TR align="center" vAlign=bottom>
      <td colSpan=11><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY AND SUBSIDIARIES<br>
        SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES<br>
        As of December 31, 2004</font></b></td>
    </TR>
    <TR align="center" vAlign=bottom>
      <td colSpan=11>&nbsp;</td>
    </TR>
    <TR vAlign=bottom>
      <TH colSpan=10> <HR size="1" noshade>
      </TH>
      <TH width="2%">&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TH align=left><FONT face="Times New Roman, Times, Serif" size=1>Type of Investment</FONT></TH>
      <TH align=left width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>Cost(1)</FONT></TH>
      <TH width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=1>Market Value</FONT></TH>
      <TH width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=1>Amount at<BR>
        which shown<BR>
        in the<BR>
        Balance Sheet (2)</FONT></TH>
      <TH width="2%">&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=10><HR size="1" noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif" size=2>Fixed Maturities:</FONT></B></TD>
      <TD width="2%" align=left>&nbsp;</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 width="2%" align=left>&nbsp;</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 width="2%" align=left>&nbsp;</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 width="2%" 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>&nbsp;&nbsp;Bonds:</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;States, municipalities and political<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subdivisions</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD width="1%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="12%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>65,034,361</FONT></TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="12%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>66,617,609</FONT></TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="12%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>66,490,115</FONT></TD>
      <TD width="2%" 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</FONT></B></TD>
      <TD align=left>&nbsp;</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>199,662</FONT></TD>
      <TD align=left>&nbsp;</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>216,346</FONT></TD>
      <TD align=left>&nbsp;</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>216,346</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other corporate bonds</FONT></B></TD>
      <TD align=left>&nbsp;</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>7,339,755</FONT></TD>
      <TD align=left>&nbsp;</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>7,967,940</FONT></TD>
      <TD align=left>&nbsp;</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>7,967,940</FONT></TD>
      <TD width="2%" 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>&nbsp;&nbsp;Short term investments</FONT></B></TD>
      <TD align=left>&nbsp;</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>9,106,643</FONT></TD>
      <TD align=left>&nbsp;</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>9,106,643</FONT></TD>
      <TD align=left>&nbsp;</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>9,106,643</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Certificates of deposit</FONT></B></TD>
      <TD align=left>&nbsp;</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>1,027,678</FONT></TD>
      <TD align=left>&nbsp;</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>1,027,678</FONT></TD>
      <TD align=left>&nbsp;</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>1,027,678</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities</FONT></B></TD>
      <TD align=left>&nbsp;</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>82,708,099</FONT></TD>
      <TD align=left>&nbsp;</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>84,936,216</FONT></TD>
      <TD align=left>&nbsp;</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>84,808,722</FONT></TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif" size=2>Equity Securities:</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD colspan="9" 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>&nbsp;&nbsp;Common Stocks:</FONT></B></TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colspan="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</FONT></B></TD>
      <TD align=left>&nbsp;</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>143,440</FONT></TD>
      <TD align=left>&nbsp;</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>196,350</FONT></TD>
      <TD align=left>&nbsp;</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>196,350</FONT></TD>
      <TD width="2%" 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks, trust and insurance companies</FONT></B></TD>
      <TD align=left>&nbsp;</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>70,991</FONT></TD>
      <TD align=left>&nbsp;</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>442,590</FONT></TD>
      <TD align=left>&nbsp;</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>442,590</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial, miscellaneous and all other</FONT></B></TD>
      <TD align=left>&nbsp;</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>3,334,183</FONT></TD>
      <TD align=left>&nbsp;</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>5,506,916</FONT></TD>
      <TD align=left>&nbsp;</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>5,506,916</FONT></TD>
      <TD width="2%" 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>&nbsp;&nbsp;Nonredeemable preferred stocks</FONT></B></TD>
      <TD align=left>&nbsp;</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>893,690</FONT></TD>
      <TD align=left>&nbsp;</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>1,094,450</FONT></TD>
      <TD align=left>&nbsp;</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>1,094,450</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities</FONT></B></TD>
      <TD align=left>&nbsp;</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>4,442,304</FONT></TD>
      <TD align=left>&nbsp;</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>7,240,306</FONT></TD>
      <TD align=left>&nbsp;</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>7,240,306</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><B><FONT face="Times New Roman, Times, Serif" size=2>Other Investments</FONT></B></TD>
      <TD align=left>&nbsp;</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>1,211,517</FONT></TD>
      <TD align=left>&nbsp;</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=left>&nbsp;</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>1,211,517</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=1 noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><B><FONT face="Times New Roman, Times, Serif" size=2>Total investments per the consolidated balance sheet</FONT></B></TD>
      <TD align=left>&nbsp;</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>88,361,920</FONT></TD>
      <TD align=left>&nbsp;</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=left>&nbsp;</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>93,260,545</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=2 noshade>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2>&nbsp;</TD>
      <TD align=left>&nbsp;</TD>
      <TD align=left colSpan=2><HR SIZE=2 noshade>
      </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>

</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">(1) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Fixed maturities are shown at amortized cost and equity securities are shown at original cost.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">(2) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Bonds of states, municipalities and political subdivisions are shown at amortized cost for held-to-maturity bonds and fair value for available-for-sale bonds. Equity securities are shown at fair value.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE II </u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY (PARENT COMPANY)<br>
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT<br>
        BALANCE SHEETS<br>
        AS OF DECEMBER 31, 2004 AND 2003<br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Assets</b></FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 207,849</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 121,587</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Investments in fixed maturities, available-for-sale</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>8,956,400</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>773,483</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Investments in equity securities</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=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>2,030,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Short term investments</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>1,012,182</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>2,494,742</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;Investments in affiliated companies</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>58,936,521</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>52,597,051</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other investments</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>819,936</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>829,123</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;Other receivables</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>237,798</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>1,756,867</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Deferred income taxes, net</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>33,189</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>62,046</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;Income taxes receivable</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>2,123,917</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>1,327,456</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Prepaid expenses and other assets</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>45,713</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>16,927</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;Property, net</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>2,085,822</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>2,108,948</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Total Assets</b></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 74,459,327</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 64,118,230</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liabilities and Stockholders&#146; Equity<br>
      Liabilities: </FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Accounts payable and accrued liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,952,056</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 929,484</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</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>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Class A Junior Participating preferred stock - no par value<br>
&nbsp;&nbsp;&nbsp;&nbsp;(shares authorized 100,000; no shares issued)</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=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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Common stock-no par (shares authorized 10,000,000; 2,481,024<br>
&nbsp;&nbsp;&nbsp;&nbsp;and 2,503,923 shares issued and outstanding 2004 and 2003,<br>
&nbsp;&nbsp;&nbsp;&nbsp;respectively, excluding 374,720 and 351,821 shares 2004 and<br>
&nbsp;&nbsp;&nbsp;&nbsp;2003, respectively, of common stock held by the Company&#146;s subsidiary)</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>
    <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="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Retained earnings</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>69,272,092</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>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<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(net of deferred taxes: 2004: $1,663,447; 2003: $1,768,477)</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>3,235,178</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>3,431,818</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; equity</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>72,507,271</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>63,188,746</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total Liabilities and Stockholders<FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#146;</FONT> Equity</FONT></strong></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 74,459,327</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 64,118,230</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">See notes to condensed financial statements.</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE II </u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY (PARENT COMPANY)<br>
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT<br>
        STATEMENTS OF INCOME<br>
        FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002<br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2><font size="1">&nbsp;</font></TH>
    <TH><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2><font size="1">&nbsp;</font></TH>
    <TH><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2><font size="1">&nbsp;</font></TH>
    <TH><font size="1">&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues:</FONT></b></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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>Investment income-interest and dividends</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 124,421</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 96,952</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 91,619</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net realized loss on sales of investments</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>(12,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></p>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></p>
    </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rental income</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>519,991</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>503,031</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>516,018</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Miscellaneous income</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>69,274</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>11,000</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>5,017</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</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>701,186</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>610,983</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>612,654</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating Expenses:</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Office occupancy and operations</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>285,903</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>242,861</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>247,244</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Business development</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>42,953</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>31,098</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>24,077</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>Taxes-other than payroll and income</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>75,649</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>65,461</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>61,107</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional fees</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>60,161</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>52,758</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>63,490</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>Other expenses</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>59,738</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>47,635</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>45,332</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</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>524,404</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>439,813</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>441,250</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity in Net Income of Affiliated Cos.*</FONT></b></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>10,583,384</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>10,850,844</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>7,991,438</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Before Income Taxes</FONT></b></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>10,760,166</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>11,022,014</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>8,162,842</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Provision for Income Taxes</FONT></b></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>41,000</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>57,000</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>54,000</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=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Income</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,719,166</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,965,014</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 8,108,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic Earnings per Common Share</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.29</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.38</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.22</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted Average Shares Outstanding-Basic</FONT></b></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>2,496,711</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>2,503,659</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>2,517,328</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted Earnings Per Common Share</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.09</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.18</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.12</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted Average Shares Outstanding-Diluted</FONT></b></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>2,620,916</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>2,624,473</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>2,597,979</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=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">* Eliminated in consolidation</font></td>
  </tr>
  <tr align="left" valign="top">
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">See notes to condensed financial statements.</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE II </u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY (PARENT COMPANY)<br>
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT<br>
        STATEMENTS OF CASH FLOWS<br>
        FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002<br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2002</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th><font size="1">&nbsp;&nbsp;</font></th>
    <th colspan=2><font size="1">&nbsp;</font></th>
    <th><font size="1">&nbsp;</font></th>
    <th colspan=2><font size="1">&nbsp;</font></th>
    <th><font size="1">&nbsp;</font></th>
    <th colspan=2><font size="1">&nbsp;</font></th>
    <th><font size="1">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2><b>Operating
      Activities:</b></font></td>
    <td width=1% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=9% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=3% align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=9% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=3% align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=9% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=2% align=LEFT bgcolor="#EAF9E8"><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;Net
      income</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 10,719,166</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>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 10,965,014</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,108,842</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Adjustments
      to reconcile net income to net cash provided<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by operating activities:</font></td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</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;Equity
      in net earnings of subsidiaries</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>(10,583,384</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>(10,850,843</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>(7,991,439</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>73,452</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>70,944</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>72,467</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></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;Amortization,
      net</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>5,719</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>10,601</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>11,977</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      gain on disposals of property</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(532</font></td>
    <td align=LEFT bgcolor="#EAF9E8">)</td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="16"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized loss on sales of investments</font></td>
    <td align=RIGHT height="16"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT height="16"><font face="Times New Roman, Times, Serif" size=2>12,500</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      (benefit) for deferred income taxes</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>59,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(12,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(6,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></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;(Increase)
      decrease in receivables</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>1,519,069</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>(1,446,089</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>4,567</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      in income taxes receivable-current</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(796,461</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(1,327,456</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></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;(Increase)
      decrease in prepaid expenses</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>(28,786</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>2,714</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>32,884</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      (decrease) in accounts payable and accrued liabilities</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(5,357</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>454,097</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>138,300</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></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;Decrease
      in income taxes payable-current</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=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>(232,325</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>(157,772</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by (used in) operating activities</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>974,918</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(2,365,343</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>213,294</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Investing
      Activities:</font></b></td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Capital
      contribution to subsidiaries</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(1,783,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(325,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><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;Dividends
      received from subsidiaries</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>5,050,819</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>3,782,400</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>3,177,772</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Purchases
      of available-for-sale securities</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(19,518,900</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(2,000,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Purchases
      of short term securities</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>(1,012,182</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>&#151;</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>(3,599,095</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Purchases
      of and net earnings from other investments</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(486,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(385,195</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><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;Proceeds
      from sales and maturities of available-for-sale securities</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>13,267,500</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>250,000</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>597,962</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds
      from sales of short term securities</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>2,494,742</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>1,486,879</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>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds
      from sales and distributions from other investments</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>9,187</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>42,072</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><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;Purchases
      of property</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>(50,326</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>(105,048</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>(8,157</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds
      from sales of property</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>10,000</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Net
      change in pending trades</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>1,027,929</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=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>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by (used in) investing activities</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(514,231</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>2,645,303</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(206,713</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan=2 align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan=2 align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan=2 align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</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>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Dividends
      paid (net dividends paid to subsidiary of $53,936 in &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004
      and $42,278 in 2003)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(374,425</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(300,411</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(300,557</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></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;Net
      cash used in financing activities</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>(374,425</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(300,411</font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align="right"><font face="Times New Roman, Times, Serif" size=2>(300,557</font></td>
    <td><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><b><font face="Times New Roman, Times, Serif" size=2>Net
      Increase (Decrease) in Cash and Cash Equivalents</font></b></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>86,262</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(20,451</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(293,976</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></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=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>121,587</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>142,038</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>436,014</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=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><b><font face="Times New Roman, Times, Serif" size=2>Cash
      and Cash Equivalents, End of Year</font></b></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>
      207,849</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>
      121,587</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>
      142,038</font></td>
    <td align=LEFT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</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>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#EAF9E8"><b><font face="Times New Roman, Times, Serif" size=2>Cash
      Paid During the Year For:</font></b></td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
    <td align=LEFT bgcolor="#EAF9E8">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income
      Taxes</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 781,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1,639,000</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=RIGHT><font face="Times New Roman, Times, Serif" size=2> 218,000</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=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="5">&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">See notes to condensed financial statements.</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<div style='width:600;'>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><u><b><font SIZE=3>SCHEDULE II</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:center;'><b><font SIZE=3>INVESTORS TITLE COMPANY (PARENT COMPANY)<BR>CONDENSED FINANCIAL INFORMATION OF REGISTRANT<BR>NOTES TO CONDENSED FINANCIAL STATEMENTS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table  border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Investors Title Company and Subsidiaries.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table  border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash dividends paid to Investors Title Company by its wholly owned subsidiary were as follows:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="88%" style=' margin-left:37.5pt;border-collapse:collapse'>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Subsidiaries</font></b><b></b></p> </td>
        <td width="97" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2004 </font></b><b></b></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2003 </font></b><b></b></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2002 </font></b><b></b></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investors Title Insurance Company, net  *</font></b><b></b></p> </td>
        <td width="97" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,950,819 </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,307,400 </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$2,857,772 </font></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investors Title Exchange Corporation</font></b><b></b></p> </td>
        <td width="97" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,100,000 </font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>175,000 </font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>160,000 </font></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top bgcolor="#EAF9E8" style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investors Title Accommodation Corporation</font></b><b></b></p> </td>
        <td width="97" valign=top bgcolor="#EAF9E8" style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:66.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8" style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100,000 </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8" style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100,000 </font></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investors Title Management Services, Inc.</font></b><b></b></p> </td>
        <td width="97" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:66.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>200,000 </font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:41.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>60,000 </font></p> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td> </tr>
    <tr style='height:14.75pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;<b></b></p> </td>
        <td width="97" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:14.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.35pt'>
        <td width="269" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>&nbsp;<b></b></p> </td>
        <td width="97" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    5,050,819 </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    3,782,400 </font></p> </td>
        <td width="96" valign=top bgcolor="#EAF9E8"style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    3,177,772 </font></p> </td> </tr>
    <tr style='height:15.35pt'>
        <td width="269" valign=top style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="3"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="3"> </td>
        <td  valign=top style='padding:0in 1.5pt 0in 1.5pt; height:15.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="3"> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>*Total dividends of  $4,004,755 and $3,349,678 paid to the Parent Company in 2004 and 2003, respectively, netted with dividends of $53,936 and $42,278 received from the Parent in 2004 and 2003, respectively.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

</div>

<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE III</u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY AND SUBSIDIARIES<br>
        SUPPLEMENTARY INSURANCE INFORMATION<br>
        For the Years Ended December 31, 2004, 2003 and 2002<br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD colspan="26" ALIGN=LEFT nowrap><HR SIZE="1"  NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Segment</FONT></TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Deferred<BR>
      Policy<BR>
      Acquisition<BR>
    Cost</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Future<BR>
      Policy<BR>
      Benefits,<BR>
      Losses,<BR>
      Claims<BR>
      and Loss<BR>
    Expenses</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unearned<BR>
    Premiums</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Other<BR>
      Policy<BR>
      Claims<BR>
      and<BR>
      Benefits<BR>
    Payable</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Premium<BR>
    Revenue</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net<BR>
      Investment<BR>
    Income</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Benefits<BR>
      Claims,<BR>
      Losses and<BR>
      Settlement<BR>
    Expenses</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Amortization<BR>
      of Deferred<BR>
      Policy<BR>
      Acquisition<BR>
    Costs</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Other<BR>
      Operating<BR>
    Expenses</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Premiums<br>
    Written </FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="26" ALIGN=LEFT nowrap><HR SIZE="1"  NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year Ended</FONT></b></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1><U>December 31, 2004</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 31,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 551,662</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 71,775,157</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,597,355</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 7,984,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 53,456,152</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange Services</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,821</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>640,183</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>All Other</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>147,662</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,258,336</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>31,842,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>551,662</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 71,775,157</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,752,838</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 7,984,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ </FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>56,354,671</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="24" nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year Ended</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1><U>December 31, 2003</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 30,031,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 726,191</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 83,927,312</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,589,228</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 9,292,739</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 63,495,050</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange Services</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,818</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>495,119</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>All Other</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>99,641</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,375,949</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>30,031,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>726,191</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 83,927,312</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,691,687</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 9,292,739</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 65,366,118</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="24" nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year Ended</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1><U>December 31, 2002</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 25,630,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 401,040</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 67,298,617</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,706,887</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 6,871,822</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 52,772,680</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange Services</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>6,114</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>441,386</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT nowrap><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>All Other</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>93,807</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,097,610</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>N/A</FONT></TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>25,630,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>401,040</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 67,298,617</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2,806,808</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 6,871,822</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$ </FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>54,311,676</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap>&nbsp;</TD>
    <TD colspan="23" nowrap><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="24" nowrap>&nbsp;</TD>
    <TD></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE IV</u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY AND SUBSIDIARIES<br>
        REINSURANCE<br>
        For the Years Ended December 31, 2004, 2003 and 2002<br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD colspan="15" ALIGN=LEFT><HR SIZE="1"  NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Gross<BR>
    Amount</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Ceded to<BR>
      Other<BR>
    Companies </FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Assumed from<BR>
      Other<BR>
    Companies</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net<BR>
    Amount</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Percentage of<BR>
      Amount<BR>
    Assumed to Net</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="15" ALIGN=LEFT><HR SIZE="1"  NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YEAR ENDED</FONT></b></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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><U>DECEMBER 31, 2004</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 72,063,833</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 294,639</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,963</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 71,775,157</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>0.01</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YEAR ENDED</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DECEMBER 31, 2003</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 84,359,310</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 438,229</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,231</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 83,927,312</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>0.01</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YEAR ENDED</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DECEMBER 31, 2002</U></FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title Insurance</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 67,626,272</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 348,395</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 20,740</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 67,298,617</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>0.03</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><b><font size="2" face="Times New Roman, Times, serif"><u>SCHEDULE V</u></font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><b><font size="2" face="Times New Roman, Times, serif"> INVESTORS TITLE COMPANY AND SUBSIDIARIES<br>
        VALUATION AND QUALIFYING ACCOUNTS <br>
        For the Years Ended December 31, 2004, 2003 and 2002 <br>
    </font></b></p></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><HR SIZE="1"  NOSHADE></td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Description</FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Balance at<BR>
      Beginning<BR>
      of Period</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Additions<BR>
      Charged to<BR>
      Costs and <br>
      Expenses</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Additions<br>
      Charged<BR>
      to Other<BR>
      Accounts - <br>
      Describe</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Deductions-<BR>
      describe*</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Balance at<BR>
      End of Period</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="16" ALIGN=LEFT><HR SIZE="1"  NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>2004</U></FONT></b></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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>Premiums Receivable<br>
      Valuation Provision</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,474,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,745,114</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (5,979,114</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,240,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reserves for Claims</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</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>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,984,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (6,173,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 31,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>2003</U></FONT></b></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Premiums Receivable<br>
      Valuation Provision</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,800,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,477,324</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (4,803,324</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,474,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reserves for Claims</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</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>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 9,292,739</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (4,891,739</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</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>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>2002</U></FONT></b></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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>Premiums Receivable<br>
      Valuation Provision</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,405,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,600,806</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (4,205,806</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,800,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reserves for Claims</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 21,460,000</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,871,822</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (2,701,822</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><b><font size="2" face="Times New Roman, Times, serif">*Cancelled premiums and change in allowance for bad debts</font></b></td>
  </tr>
  <tr>
    <td><b><font size="2" face="Times New Roman, Times, serif">*Payments of claims, net of recoveries</font></b></td>
  </tr>
  <tr>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always"></P>
<PAGE><BR>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><b><FONT face="Times New Roman, Times, Serif" size=2>INDEX TO EXHIBITS</FONT></b></P>
</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Exhibit<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Number</U></FONT></TD>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2><U>Description</U></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>3(i)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Articles of Incorporation dated January 22, 1973, incorporated by reference to Exhibit 1 to Form 10
dated June 12, 1984</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>3(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Bylaws &#150; Restated and Amended as of May 21, 2003, incorporated by reference to Exhibit 3(ii) to
Form 10-K for the year ended December 31, 2003</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>4<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>Rights Agreement, dated as of November 12, 2002, between Investors Title Company and Central Carolina
Bank, a division of National Bank of Commerce, incorporated by reference to Exhibit 1 to Form 8-A
filed November 15, 2002</FONT></FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>10(i)&nbsp;&nbsp;</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1993 Incentive Stock Option Plan, incorporated by reference to Exhibit 10 to Form 10-K for the year ended December 31, 1993&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Incentive Stock Option Agreement under 1993 Incentive Stock Option Plan, incorporated by reference
to Exhibit 10(v) to Form 10-K for the year&nbsp;ended December 31, 1994&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(iii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1997 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(viii) to Form
10-K for the year ended December 31, 1996</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(iv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Nonqualified Stock Option Agreement to Non-employee Directors dated May 13, 1997 under the
1997 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(ix) to Form
10-Q for the quarter ended June 30, 1997</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(v)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Nonqualified Stock Option Agreement under 1997 Stock Option and Restricted Stock Plan, incorporated
by reference to Exhibit 10(x) to Form 10-K for the year ended December 31, 1997</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(vi)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Incentive Stock Option Agreement under 1997 Stock Option and Restricted Stock Plan, incorporated
by reference to Exhibit 10(xi) to Form 10-K for the year ended December 31, 1997&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(vii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Amendment to Incentive Stock Option Agreement between Investors Title Company and James Allen
Fine, James Allen Fine, Jr., William Morris Fine, George Abbitt Snead, Ralph Nichols Strayhorn, III
and Raeford Wilder Wall, Jr., respectively, incorporated by reference to Exhibit 10(xii) to Form
10-Q for the quarter ended June 30, 2000</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(viii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2001 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(xiii) to Form
10-K for the year ended December 31, 2000</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(ix)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Employment Agreement dated November 17, 2003 with each of J. Allen Fine, James A. Fine, Jr.
and W. Morris Fine, incorporated by reference to Exhibit 10(ix) to Form 10-K for the year ended December
31, 2003&nbsp;</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>

<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(x)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Amended and Restated Employment Agreement dated June 1, 2004 with J. Allen Fine, incorporated by reference
to Exhibit 10(x) to Form 10-Q for the quarter ended June 30, 2004</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(xi)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Form of Amended and Restated Employment Agreement dated June 1, 2004 with each of James A. Fine, Jr.
and W. Morris Fine, incorporated by reference to Exhibit 10(xi) to Form 10-Q for the quarter ended
June 30, 2004</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(xii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Nonqualified Deferred Compensation Plan dated June 1, 2004,
incorporated by reference to Exhibit 10(xii) to Form 10-Q for the quarter ended June 30, 2004</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(xiii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Nonqualified Supplemental Retirement Benefit Plan dated
November 17, 2003, incorporated by reference to Exhibit 10(xiii) to Form 10-Q for the quarter ended
June 30, 2004</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(xiv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Death Benefit Plan Agreement dated April 1, 2004 with J. Allen Fine, incorporated by reference to Exhibit
10(xiv) to Form 10-Q for the quarter ended June 30, 2004</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>10(xv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Death Benefit Plan Agreement dated May 19, 2004 with James A. Fine, Jr., incorporated by reference
to Exhibit 10(xv) to Form 10-Q for the quarter ended June 30, 2004 </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>13</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Portions of 2004 Annual Report to Shareholders incorporated by reference&nbsp;in this report as set
forth in Parts I, II and IV hereof</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>14<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Code of Business Conduct and Ethics, incorporated by reference to Exhibit 14 to Form 10-K for the year
ended December 31, 2003</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>16</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Letter regarding Change in Certifying Accountant, incorporated by reference to Exhibit 16 to Form 8-K dated September 24, 2004</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>21</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Subsidiaries of Registrant, incorporated by reference to Exhibit 21 to Form 10-K for the year<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>ended December 31, 2003&nbsp;&nbsp; </FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>23 (a)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consent of Dixon Hughes PLLC</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>23 (b)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consent of Deloitte &amp; Touche LLP</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>31(i)</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>31(ii)</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>32<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13
<SEQUENCE>5
<FILENAME>d62961_ex13.htm
<DESCRIPTION>PORTIONS OF 2004 ANNUAL REPORT TO SHAREHOLDERS
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD>&nbsp;</TD>
</TR>
<TR>
<TD>
<P align="right"><FONT face="Times New Roman, Times, Serif" size=2>Exhibit 13</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Common Stock Data</B></FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The Common Stock of the Company is traded under the symbol &#147;ITIC&#148; in the over-the-counter
market and is quoted on the National Market System of the National Association of Securities Dealers
Automated Quotation System (&#147;NASDAQ&#148;). The number of record holders of common stock at
December 31, 2004 was 549. The number of record holders is based upon the actual number of holders
registered on the books of the Company at such date and does not include holders of shares in &#147;street
names&#148; or persons, partnerships, associations, corporations or other entities identified in
security position listings maintained by depository trust companies. The following table shows the
high and low sales prices reported on the NASDAQ National Market System.</FONT></P>
</TD></TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><b></b></TH>
    <TH COLSPAN=5><b><font face="Times New Roman, Times, Serif" size=1>2004</font></b></TH>
    <TH><b></b></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><font face="Times New Roman, Times, Serif" size=1>2003</font></b></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=13><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"><b></b></font></TH>
    <TH align="right"><font size="1"></font></TH>
    <TH align="right"><b><font face="Times New Roman, Times, Serif" size=1>High</font></b></TH>
    <TH><font size="1"><b></b></font></TH>
    <TH align="right"><font size="1"></font></TH>
    <TH align="right"><b><font face="Times New Roman, Times, Serif" size=1>Low</font></b></TH>
    <TH><font size="1"><b></b></font></TH>
    <TH align="right"><font size="1"></font></TH>
    <TH align="right"><b><font face="Times New Roman, Times, Serif" size=1>High</font></b></TH>
    <TH><font size="1"><b></b></font></TH>
    <TH align="right"><font size="1"></font></TH>
    <TH align="right"><b><font face="Times New Roman, Times, Serif" size=1>Low</font></b></TH>
    <TH><font size="1"><b></b></font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First Quarter</FONT></TD>
    <TD width="2%" ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="6%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35.30</FONT></TD>
    <TD width="3%" ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="6%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.29 </FONT></TD>
    <TD width="3%" ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="6%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.19 </FONT></TD>
    <TD width="3%" ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="6%" ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.00</FONT></TD>
    <TD width="3%" ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second Quarter</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 32</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.47 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.10 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.00 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.50</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Third Quarter</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 32</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.10 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.01 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.50 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.30</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fourth Quarter</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 37</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.00 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.40 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.17 </FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.55</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>The Company paid cash dividends of $.03 per share during the first quarter of 2004 and $.04 per share during each of the second, third and fourth quarters of 2004. The Company paid cash dividends of $.03 per share in each of the four quarters during 2003.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s current
dividend policy anticipates the payment of quarterly dividends in the future.
The declaration and payment of dividends will be in the discretion of the Board
of Directors and will be dependent upon the Company&#146;s future earnings,
financial condition and capital requirements. The payment of dividends is
subject to the restrictions described in Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations, &#147;Liquidity and Capital Resources.&#148;</FONT></P></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Market Makers for 2004 </FONT></TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Archipelago Exchange</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ferris Baker Watts Inc.</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=31% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Knight Equity Markets, LP</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Boston Stock Exchange</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>GVR Company LLC</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>National Stock Exchange</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conifer Securities LLC</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>Hill, Thompson, Magid and Co.</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>Schwab Capital Markets</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Davenport &amp; Company LLC</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH align="left"><font size="2" face="Times New Roman, Times, serif">Financial Highlights</font></TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="2" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><div align="left"><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For the Year</FONT></b></div></TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2000</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="19" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net premiums written</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 71,775,157</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 83,927,312</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 67,298,617</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 58,800,545</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 37,740,752</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Revenues</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>79,841,176</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>90,829,871</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>72,852,340</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>63,792,445</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>42,279,768</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Investment income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,752,838</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,691,687</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,806,808</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,740,280</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,528,143</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10,719,166</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10,965,014</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>8,108,842</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>6,008,998</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3,140,463</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TH><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>Per Share Data</b></FONT></div></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="19" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Basic earnings per<br>
&nbsp;&nbsp;common share</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD width="11%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4.29</FONT></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="2%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD width="11%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4.38</FONT></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="2%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD width="11%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 3.22</FONT></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="2%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD width="11%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2.35</FONT></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="2%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD width="11%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 1.21</FONT></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="2%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted average shares<br>
&nbsp;&nbsp;outstanding&#151;Basic</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,496,711</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,503,659</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,517,328</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,554,204</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,594,891</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Diluted earnings per<br>
&nbsp;&nbsp;common share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4.09</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4.18</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 3.12</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2.31</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 1.21</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted average shares<br>
&nbsp;&nbsp;outstanding&#151;Diluted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,620,916</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,624,473</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,597,979</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,599,714</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,601,283</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Cash dividends per share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> .15</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> .12</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> .12</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> .12</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> .12</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=4></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TH><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>At Year End</b></FONT></div></TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="19" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Assets</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 113,186,752</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 100,471,811</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 84,637,146</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 70,219,700</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 59,339,007</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Investments in securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>93,260,545</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>79,842,183</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>65,336,439</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>53,471,697</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>45,229,576</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Stockholders&#146; equity</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>72,507,271</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>63,188,746</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>52,668,184</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>44,271,768</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>39,189,649</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Book value/share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>29.22</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>25.24</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>20.93</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>17.59</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>15.27</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>Performance Ratios</b></FONT></div></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
    <TH><font size="1"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="19" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income to:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Average stockholders&#146; equity</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>15.80</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>18.93</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>16.73</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>14.40</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>8.19</FONT></TD>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=1>%</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Total revenues (profit margin)</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>13.43</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>12.07</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>11.13</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>9.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7.43</FONT></TD>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=1>%</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
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<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>The following discussion should be read in conjunction with the consolidated financial statements and
the related notes in this report.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Overview</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Title Insurance:</I> &nbsp;&nbsp;Investors Title Company (the &#147;Company&#148;) engages primarily in two segments of
business. Its dominant 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;), which accounted for 94.5% of the Company&#146;s operating revenues in 2004.
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. Title insurance protects
against loss or damage resulting from defects that affect the title to real property. The commitment
and policies issued are predominantly the standard American Land Title Association approved forms.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 legal 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>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>ITIC delivers title insurance coverage through a home office, branch offices, and issuing agents. In
North Carolina, ITIC issues policies primarily through a home office and 27 branch offices. The Company also
has a branch office in South Carolina and Michigan. Issuing agents are typically real estate attorneys or subsidiaries of community
and regional mortgage lending institutions, depending on local customs and regulations and the Company&#146;s
marketing strategy in a particular territory. The ability to attract and retain issuing agents is
a key determinant of the Company&#146;s growth in premiums written.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s overall level of premiums written&nbsp;is affected by a number of factors, including
the level of interest rates,&nbsp;the availability of mortgage funds, the level of real estate transactions
and mortgage refinance activity, the cost of real estate, 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 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. Revenues for this segment result from refinance activity, purchases
of new and existing residential and commercial real estate and certain other types of mortgage lending
such as home equity lines of credit.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Volume is a key factor in the Company&#146;s profitability due to the existence of significant fixed
costs such as personnel and occupancy expenses associated with the support of the issuance of title
insurance policies and of general corporate operations. These expenses will be incurred by the Company
regardless of the level of premiums written. The resulting operating leverage has historically tended
to amplify the impact of changes in volume on the Company&#146;s profitability. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Exchange Services:</I> &nbsp;The Company&#146;s second segment provides customer services in connection with tax-deferred real property exchanges 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 &#167;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.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Factors that influence the title insurance industry will also generally affect the exchange services
industry. In addition, the services provided by our exchange services are pursuant to provisions
in the Internal Revenue Code. From time to time, these exchange provisions are subject to review
and proposed changes. Any future change in the code could materially impact the exchange segment,
including possibly eliminating the need for the services these subsidiaries offer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>New Services:</I> &nbsp;In 2003, the Company formed two new subsidiaries, Investors Title Commercial Agency, LLC (&#147;ITCA&#148;)
and Investors Capital Management Company (&#147;ICMC&#148;), to supplement its traditional lines
of business. ITCA&nbsp; primarily underwrites large commercial title insurance policies, thus providing
the Company with another vehicle for expanding its presence in the title insurance industry. In conjunction
</FONT></P></TD></TR></TABLE>
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<P><FONT face="Times New Roman, Times, Serif" size=2>with Investors Trust Company, which was chartered on February 17, 2004, ICMC
provides investment
management and trust services to individuals, companies, banks and trusts. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>
<I>Operating Results:</I> &nbsp;As noted above, the title insurance business is closely related to the overall level of real
estate activity, and title insurance volumes generally fluctuate based on the effect changes in interest
rates have on the level of real estate activity. In the first quarter of 2004, operating results
continued to be driven by a relatively low interest rate environment. In the second quarter of 2004,
average mortgage interest rates increased, causing a reduction in the demand for mortgage refinancing.
In the third quarter of 2004, the decline in premiums written can be primarily attributed to the
decreases in mortgage refinance transactions. In the fourth quarter, premiums written continued to
be impacted by the decrease in national mortgage refinance volume from levels set in 2003. According
to data published by Freddie Mac, the annual average thirty-year fixed mortgage interest rates in
the United States were reported to be 5.84 %, 5.83% and 6.54% in 2004, 2003 and 2002, respectively. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>During 2004, the quarterly&nbsp;average thirty-year fixed mortgage interest rates were 5.60%, 6.13%,
5.89% and 5.73% for the first, second, third and fourth quarters, respectively. Total refinancing
volume in the United States for 2004 was approximately $1.26 trillion, which was $1.27 trillion less
than the preceding year according to the Mortgage Bankers Association of America. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In recent years, the Company and the title insurance industry have experienced significant increases
in premiums written related to increases in mortgage refinancing. This refinancing activity has been
driven by declining interest rates. To the extent interest rates stay the same or increase going
forward, mortgage refinancing is generally expected to decline from current levels. Operating results
for the years ended 2003 and 2004, therefore, should not be viewed as indicative of the Company&#146;s
future operating results. The Company continues to monitor and strives to manage operating expenses
such as salaries, employee benefits and other operational expenses with knowledge of the potential
for further declines in title insurance revenues if interest rates continue to rise or the economy slows. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Credit Rating</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>ITIC has been recognized by two independent Fannie Mae-approved actuarial firms, Demotech, Inc. and
LACE Financial Corporation, with rating categories of &#147;A Double Prime&#148; and &#147;A.&#148;&nbsp;NE-ITIC&#146;s
financial stability also has been recognized by Demotech, Inc. and LACE Financial Corporation with
rating categories of &#147;A Prime&#148; and &#147;A+.&#148;&nbsp;According to Demotech, title insurance
underwriters earning a financial stability rating of A&#146;&#146; (A Double Prime) or A&#146; (A
Prime) possess unsurpassed financial stability related to maintaining positive surplus as regards
policyholders,&nbsp;regardless of the severity of a general economic downturn or deterioration in
the title insurance cycle. A LACE rating of &#147;A+&#148; or &#147;A&#148; indicates that a title
insurance company has a strong overall financial condition that will allow it to meet its future
claims and that, generally, the company has good operating earnings, is well capitalized and has
adequate reserves. Since ITIC&#146;s and NE-ITIC&#146;s ratings are either at the highest rank or
next-to-highest rank, any increase in such ratings would have a negligible impact on the business
or finances of the Company. A significant decline in these ratings may, among other things, lead
to a decrease in the Company&#146;s stock price, the loss of certain licenses ITIC and NE-ITIC need
to operate as title insurance companies in various states and the Company&#146;s ability to maintain
strong relationships with its customers and agents.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Results of Operations<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Operating Revenues</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Operating revenues include premiums written and reinsurance assumed, net of reinsurance ceded (net
premiums written) plus fee income as well as gains and losses on the disposal of fixed assets. Investment
income and realized gains/losses&nbsp;are not included in operating revenues for the purpose of this
summary schedule. Following is a summary by segment of the Company&#146;s operating revenues. Intersegment
eliminations have been netted with each segment; therefore, the individual segment amounts will not
agree to Note 13 in the accompanying Consolidated Financial Statements.</FONT></P>
</TD>
</TR></TABLE>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title insurance</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 72,750,874</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94.5</FONT></TD>
    <TD width="1%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 85,505,899</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97.3</FONT></TD>
    <TD width="1%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 68,144,235</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97.7</FONT></TD>
    <TD width="1%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exchange services</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>2,801,888</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>1,245,234</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.4</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>947,426</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All other</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>1,441,920</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.9</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>1,128,333</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>674,570</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.0</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 76,994,682</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 87,879,466</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 69,766,231</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>Title Insurance</FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Net Premiums:</I> Net premiums written decreased 14.5% in 2004 over 2003 and increased 24.7% in 2003 over 2002. During 2004, revenues were primarily impacted by the decline in premiums written due to lower levels of mortgage refinancing activity compared with the prior year, as a result of&nbsp;higher mortgage interest rates. This decrease reflects the decline in the volume of policies and commitments issued in 2004. The </FONT></P></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>increase in premiums written in 2003 from 2002 was due to continued low mortgage interest rates throughout
the year, which led to continued strength in the refinance market as well as expansion through agents
into new markets and greater penetration in existing markets. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Policies and Commitments:</I> &nbsp;The volume of business decreased in 2004, as 283,696 policies and commitments were issued in
2004, which is a decrease of 29% compared with 397,638 policies and commitments issued in 2003. The
decrease in volume was primarily attributable to the decline in refinancing activity from 2003, as
noted above. In 2003, the number of policies and commitments issued increased by 22% compared with
325,918 issued in 2002. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Shown below is a schedule of net premiums written for 2004, 2003 and 2002 in all states where ITIC
and NE-ITIC&nbsp;currently underwrite title insurance:</FONT></P>
</TD>
</TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><div align="left"><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>State</FONT></b></div></TH>
    <TH COLSPAN=3><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></b></TH>
    <TH COLSPAN=3><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></b></TH>
    <TH COLSPAN=2><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></b></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Alabama</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,361,437</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,286,681</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 654,345</FONT></TD>
    <TD WIDTH=2% 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>Florida</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>1,190,399</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>392,602</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>1,745</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Illinois</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>948,022</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>1,219,212</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>57,758</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>Kentucky</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>1,710,387</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>1,800,258</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>1,282,772</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Maryland</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>1,494,686</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>1,707,678</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>1,428,140</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>Michigan</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>4,896,239</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>7,230,906</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>9,492,665</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Minnesota</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>1,063,819</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>2,186,522</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>1,180,153</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>Mississippi</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>990,203</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>1,092,772</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>1,011,538</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nebraska</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>783,398</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>1,777,174</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>1,348,139</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>New York</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>3,495,587</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>5,605,642</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>3,911,191</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>North Carolina</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>32,446,835</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>31,102,294</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>24,112,712</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>Pennsylvania</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>2,634,407</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>5,838,436</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>4,462,864</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>South Carolina</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>6,464,495</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>7,512,259</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>5,638,718</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>Tennessee</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>2,954,957</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>3,686,677</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>3,239,109</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Virginia</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>7,038,474</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>9,101,185</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>7,577,229</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>West Virginia</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>1,864,216</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>2,025,557</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>1,638,306</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other States</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>726,272</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>793,455</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>588,888</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Direct Premiums</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>72,063,833</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>84,359,310</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>67,626,272</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reinsurance Assumed</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>5,963</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>6,231</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>20,740</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>Reinsurance Ceded</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>(294,639</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>(438,229</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>(348,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Premiums Written</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 71,775,157</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 83,927,312</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 67,298,617</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>As noted above, the overall decline in total premiums written was due primarily to lower mortgage refinancing activity compared with 2003. Premiums written in Minnesota, Nebraska, New York and Pennsylvania 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 $6.87 million related to a 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>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Branch Office Net Premiums:</I> &nbsp;Branch office net premiums written as a percentage of total net premiums written were 44%, 37% and 36% in 2004, 2003 and 2002, respectively. Net premiums written from branch operations increased 1.5% in 2004 compared with 2003 and increased 28.2% in 2003 compared with 2002. 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, as noted above.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Agency Net Premiums:</I> &nbsp;Agency net premiums written as a percentage of total net premiums written were 56%, 63% and 64% in 2004, 2003 and 2002, respectively. Net premiums written from agency operations decreased 23.9% in 2004 compared with 2003 and increased 22.7% in 2003 compared with 2002. The majority of the decrease in agency net premiums written in 2004 can be attributed to the general decline in business due to the slowdown in refinancing activity as a result of increased interest rates in 2004. For the year ended December 31, 2003, premiums written in Michigan declined due to a decrease in the number of Michigan issuing agents.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>Exchange Services</FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Operating revenues from the Company&#146;s two subsidiaries that provide tax-deferred exchange services (ITEC and ITAC) increased 125% from 2003 to 2004 and increased 31.4% from 2002 to 2003. The increase in 2004 and 2003 compared with prior year periods was primarily due to increased interest income earned on deposits held by the Company, an increased demand for qualified intermediary services, as well as an increase in the average fee per transaction, and can also be attributed to more favorable economic conditions. </FONT></P></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Seasonality</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Title Insurance</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Title insurance premiums are closely related to the level of real estate activity and the average price
of real estate sales. The availability of funds to finance purchases directly affects real estate
sales. Other factors include mortgage interest rates, consumer confidence, economic conditions, supply
and demand, and family income levels. Historically, the first quarter has the least real estate activity
because fewer real estate transactions occur, while the remaining quarters are more active. Refinance
activity is generally less seasonal, but it is subject to interest rate volatility. Fluctuations
in mortgage interest rates, as well as other economic factors, can cause shifts in real estate activity
outside of the normal seasonal pattern. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Exchange Services</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Seasonal factors affecting the level of real estate activity and the volume of title premiums written
will also affect the demand for exchange services.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Investment Income</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s title insurance subsidiaries are required by statute to maintain minimum levels
of investments in order to protect the interests of policyholders. In formulating its investment
strategy, the Company has emphasized after-tax income. Investments in marketable securities have
increased from funds retained in the Company. The investments are primarily in fixed maturity securities
and, to a lesser extent, equity securities. The effective maturity of the majority of the fixed income
investments is within 15 years.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>As new funds become available, they are invested in accordance with the Company&#146;s investment policy
and corporate goals. Securities purchased may include a combination of taxable fixed-income securities,
tax exempt securities and equities. The Company strives to maintain a high quality investment portfolio.
</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Investment income increased 2.3% from 2003 to 2004 and decreased 4.1% from 2002 to 2003. The increase
in 2004 was primarily attributable to an increase in the average investment portfolio balance. The
decrease in 2003 was primarily due to the decline in interest rates. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Expenses</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Following is a&nbsp;&nbsp;summary by segment of the Company&#146;s operating expenses. Intersegment
eliminations have been netted with each segment therefore the individual segment amounts will not
agree to Note 13 in the accompanying Consolidated Financial Statements.</FONT></P>
</TD>
</TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title insurance</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 61,440,491</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>95</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.5</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 72,787,789</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.5 </FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 59,644,502</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.5 </FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exchange services</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>640,183</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>1</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.0 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>495,119</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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.7 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>441,386</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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.7 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All other</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>2,258,336</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>3</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.5 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>1,375,949</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>1</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.8 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>1,097,610</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>1</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.8 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 64,339,010</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>100</FONT></TD>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>74,658,857</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></TD>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 61,183,498</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>100</FONT></TD>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>On a combined basis, profit margins were 13.4%, 12.1% and 11.1% in 2004, 2003 and 2002, respectively. Although total revenues decreased 12.1% in 2004, operating expenses decreased 13.8%, contributing to more favorable combined profit margins for 2004. The increase of 24.7% in net premiums written&nbsp;coupled with a smaller increase of only 22% in operating expenses contributed to the increase in profit margins for 2003. Due to the fixed nature of certain operating expenses and the increase in premium volume, profit margins improved in 2003. </FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>Title Insurance</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Profit Margins:</I>&nbsp;&nbsp;The Company&#146;s title insurance profit margins vary according to a number of factors, including the volume and type of real estate activity. Profit margins for the title insurance segment were 12.4%, 11.7% and 10.8% in 2004, 2003 and 2002, respectively. In 2004, the percentage decrease in operating expenses, particularly the decrease in commissions paid to agents, offset the percentage decrease in premiums written. In order to maintain and improve margins, the Company strives to identify opportunities to refine operating procedures and to implement processes designed to reduce expenses. The increase in premiums written contributed to the improvement in the profit margin for 2003.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Commissions:</I>&nbsp;&nbsp;Commissions to agents decreased 25.5% from 2003 to 2004 primarily due to decreased premiums from agency operations in 2004 and increased 22.2% from 2002 to 2003 primarily due to increased premiums from agent sources. Commission expense as a percentage of net premiums written by agents was 72.5%, 74% and 74.3% for 2004, 2003 and 2002, respectively. Commission rates vary geographically and may be influenced by state regulations.</FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Provisions for Claims:</I>&nbsp;&nbsp;The provision for claims as a percentage of net premiums written was 11.1% in 2004 and 2003 and 10.2% in 2002. Loss provision rates are subject to variability and are reviewed and adjusted as experience develops. Declining economic conditions and/or declines in transaction volumes have historically been factors in increased claim expenses due to increased mechanics liens, defalcations and other matters which may be discovered during property foreclosures. Title claims are typically reported within the first several years of policy </FONT></P></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>issuance. &nbsp;The provision reflects actual payments of claims, net of recovery amounts, plus adjustments
to the specific and incurred but not reported claims reserves, the latter of which are actuarially
determined based on historical claims experience. Payments of claims, net of recoveries, were $6,173,339,
$4,891,739 and $2,701,822 in 2004, 2003 and 2002, respectively. The increase in 2004 was primarily
attributable to the increase in premiums written in recent years. Claims payments increased in 2003
generally due to the increase in policies written. The lower amount of claims payments in 2002, when
compared with 2004 and 2003, can be attributed to timing issues. Claim payments may trend higher
in 2005 and beyond, given the high levels of premiums written in recent years.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Reserves for Claims:&nbsp;</I> The Company has continued to strengthen its reserves for claims. At December 31, 2004, the total reserves
for claims were $31,842,000. Of that total, $4,262,291 was reserved for specific claims, and $27,579,709
was reserved for claims for which the Company had no notice. Because of the uncertainty of future
claims, changes in economic conditions, and the fact that many claims do not materialize for several
years, reserve estimates are subject to variability. Management analyzes historical claims experience,
mix of business, geographic considerations, industry averages, and current economic conditions in
establishing loss provision rates. Claims reserves are reviewed as to their reasonableness by independent
actuaries annually. The Company&#146;s claims reserves are consistent with the independent actuary&#146;s
claims reserves. Actuarial projections are compared with recorded reserves and any necessary adjustments
are included in current operations. There are no known claims that are expected to have a materially
adverse effect on the Company&#146;s financial position or operating results. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Salaries and Employee Benefits:</I> &nbsp;On a consolidated basis, salaries and employee benefits as a percentage of net premiums written
were 22.7%, 18.6% and 18.7 % in 2004, 2003 and 2002, respectively. The increase in these costs in
2004 was attributable to several factors, including certain employee benefits associated with key
executive employment agreements entered into in late 2003, additional personnel costs related to
staff hired by the newly formed Investors Trust Company and the regulated investment advisory and
various staff additions. The title insurance segment&#146;s total salaries and employee benefits
accounted for 89%, 93% and 93.5% of total salaries for 2004, 2003 and 2002, respectively. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements
with the Chief Executive Officer, Chief Financial Officer and the Chief Operating Officer of ITIC.
These individuals also serve as the Chief Executive Officer, President and Executive Vice President,
respectively, of the Company. The agreements provide compensation and life, health, dental and vision
benefits upon the occurrence of specific events, including death, disability, retirement, termination
without cause or upon a&nbsp;change in control. The agreements also prohibit each of these executives
from competing with ITIC and its parent, subsidiaries and affiliates in the State of North Carolina
while employed by ITIC and for a period of two years following termination of their employment. In
addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation
plan agreements with these executives. The amount accrued for these plans at December 31, 2004 and
2003 was $1,185,000 and $452,000, respectively, and was calculated based on the terms of the contract.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Office Occupancy and Operations:</I> &nbsp;Overall office occupancy and operations as a percentage of net premiums was 7.5%, 6.1% and 7.1%
in 2004, 2003 and 2002, respectively. The increase in office occupancy and operations expense was
primarily due to an increase in depreciation expense, contract labor and office supplies. In addition,
in September 2004, additional office space was leased. The decline in office occupancy and operations
as a percentage of net premiums written during 2003 and 2002 was partially due to a decrease in depreciation
expense of approximately $555,000 and $450,000, respectively, compared with 2001 due to utilizing
certain EDP equipment beyond their depreciable lives. The title insurance segment&#146;s total office
occupancy and operations accounted for 91%, 93.7% and 92.9% in 2004, 2003 and 2002, respectively. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Premium and Retaliatory Taxes: </I>Title insurance companies are generally not subject to state income or franchise taxes. However, in
most states they are subject to premium and retaliatory taxes. Premium and retaliatory taxes as a
percentage of premiums written were 1.95%, 1.99% and 2.04% for the years ended December 31, 2004,
2003 and 2002, respectively.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Professional fees: </I>Professional fees for 2004 and 2003 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>
<P><FONT face="Times New Roman, Times, Serif" size=2>Exchange Services</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The exchange services segment&#146;s total operating expenses as a percentage of the Company&#146;s
total expenses were 1.0%, .7%, and .7% for 2004, 2003 and 2002, respectively. The principal operating
expenses of this segment are salaries, employee benefits and payroll taxes.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Income Taxes</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The provision for income taxes was 30.9%, 32.2% and 30.5% of income before income taxes for the years
ended December 31, 2004, 2003 and 2002, respectively. The decrease in the effective rate for the
year ended December 31, 2004 was primarily due to an increase in tax-exempt investment income and
a reduction in the overall effective tax rate, due to a decrease in taxable income taxed at the highest
marginal rate. The increase in the effective rate for the year ended December 31, 2003 was primarily
due to an increase in taxable income, which placed the Company in a higher tax bracket, and a change
in the ratio of tax-exempt investment income to taxable income. Information regarding the components
of the income tax expense can be found in Note 8 to the accompanying Consolidated Financial Statements. </FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2><B>Net Income</B></FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>A summary by segment of the Company&#146;s net income is as follows:</FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></b></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title insurance</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 9,332,205</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>87.1</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,320,860</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94.1</FONT></TD>
    <TD width="1%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,706,961</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="5%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>95.0</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exchange services</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>1,464,952</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>13.6</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>462,933</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>4.2</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>317,154</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>3.9</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All other</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>(77,991</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>(0.7</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%)</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>181,221</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>1.7</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</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>84,727</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>1.1</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,719,166</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>100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,965,014</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 8,108,842</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>100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="17" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>On a consolidated basis, the Company reported a decrease in net income of 2.2% in 2004 and an increase in net income of 35.2% and 34.9% in 2003 and 2002, respectively. The decrease in 2004 was due to lower premiums written. The increase in 2003 was primarily attributable to increased premium volume and improved operating efficiencies associated with technology enhancements and expense control procedures.</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>Title Insurance</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Net income for the title insurance segment decreased 9.6% from 2003 to 2004, primarily due to the decline in premiums written. Net income for the title insurance segment increased 33.9% from 2002 to 2003. The increase in 2003 was primarily attributable to increased premium volume that resulted from expanding markets through agents and greater penetration of existing agents, as well as another year of reduced mortgage interest rates. </FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>Exchange Services</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Net income of the exchange services segment increased 216% from 2003 to 2004 and 46% from 2002 to 2003. Net income increased in 2004 and 2003 primarily due to an increase in the volume of exchange transactions and an increase in the average fee per exchange.</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2><B>Liquidity and Capital Resources</B></FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Liquidity:</I> &nbsp;&nbsp;Due to the Company&#146;s consistent ability to generate positive cash flows from its operations&nbsp;(primarily underwriting and investment income), management believes that funds generated from operations will enable the Company to adequately meet its operating needs and is unaware of any trend or occurrence that is likely to result in material&nbsp;adverse liquidity changes. The Company&#146;s cash requirements include general operating expenses, taxes, capital expenditures and dividends on its common stock. 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>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Cash Flows:&nbsp;</I> &nbsp;Net&nbsp;cash flows provided by operating activities were $15,685,967,&nbsp;$17,138,683 and $12,843,431 in 2004, 2003 and 2002, respectively. The net&nbsp;decrease in 2004 is primarily the result of the decrease in the provision for claims and an increase in claims payments. The net&nbsp;increase in 2003 is primarily the result of the increase in net income and the accelerated collection of accounts receivable compared with 2002. The principal nonoperating uses of cash and cash equivalents for the three year period ended December 31, 2004, were for additions to the investment portfolio, capital expenditures and repurchases of common stock. The most significant nonoperating sources of cash and cash equivalents were proceeds from the sales and maturities of certain investments. The net effect of all activities on to


















tal cash and cash equivalents was a decrease of $398,913 for 2004 and an increase of $1,343,395 for 2003 and $712,032 for 2002. As of December 31, 2004, the Company held cash and cash equivalents of $4,726,443.</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Payment of Dividends:</I> &nbsp;As of December 31, 2004 and 2003, approximately $58,014,000 and $53,477,000, respectively, of the consolidated stockholders&#146; equity represented net assets of the Company&#146;s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval. The Company&#146;s ability to pay dividends 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 t


















he Company&#146;s operating needs.</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Purchase of Company Stock:&nbsp;</I> On June 5, 2000, the Board of Directors of ITIC approved ITIC&#146;s purchase of 500,000 shares of the Company&#146;s common stock. Pursuant to this approval, ITIC purchased 37,635 shares in the twelve months ended December 31, 2004, 41,175 shares in the twelve months ended December 31, 2003 and 19,134 shares in the twelve months ended December 31, 2002 at an average per share price of $31.42, $23.96 and $18.81, respectively.</FONT></P>
        <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>During the twelve months ended December 31, 2004, ITIC purchased common stock for $1,182,654 and transferred common stock totaling $353,078 in satisfaction of stock option exercises, stock bonuses and other stock transfers. In 2004, retained earnings had a net increase of $9,515,165, after purchases and issuances of common stock for compensation and options exercised reduced retained earnings by $829,576.</FONT></P></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><I>Capital Expenditures: </I>During 2005, the Company has plans for various capital improvement projects, including several software
development projects. The Company anticipates capital expenditures of approximately $900,000 in connection
with these projects and additional purchases of electronic data processing equipment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Quantitative and Qualitative Disclosures About Market Risk</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s primary exposure to market risk relates to the impact of adverse changes in interest
rates and market prices of its investment portfolio. Increases in interest rates diminish the value
of fixed income securities and preferred stock and decreases in stock market values diminish the
value of common stocks held.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Corporate Oversight</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company generates substantial investable funds from its two insurance subsidiaries. In formulating
and implementing policies for investing new and existing funds, the Company has emphasized maximizing
total after-tax return on capital and earnings while ensuring the safety of funds under management
and adequate liquidity. The Company&#146;s Board of Directors oversees investment risk management
processes. The Company seeks to invest premiums and other income to create future cash flows that
will fund future claims, employee benefits and expenses, and earn stable margins across a wide variety
of interest rate and economic scenarios. The Board has established specific investment policies that
define the overall framework for managing market and other investment risks, including the accountabilities
and controls over these activities. The Company may rebalance its existing asset portfolios or change
the character of future investments from time to time to manage its exposure to market risk within
defined tolerance ranges.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Interest Rate Risk</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Interest rate risk is the risk that the Company
will incur economic losses due to adverse changes in interest rates. This risk
arises from the Company&#146;s investments in interest-sensitive debt
securities. These securities are primarily fixed rate municipal bonds and
corporate bonds. The Company does not purchase such securities for trading
purposes. At December 31, 2004, the Company had approximately $45 million in
fixed rate bonds. The Company manages the interest rate risk inherent in its
assets by monitoring its liquidity needs and by targeting a specific range for
the portfolio&#146;s duration or weighted average maturity.</FONT></P>

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>To determine the potential effect of interest rate risk on interest-sensitive assets, the Company calculates
the effect of a 10% change in prevailing interest rates (&#147;rate shock&#148;) on the fair market
value of these securities considering stated interest rates and time to maturity. Based upon the
information and assumptions the Company uses in its calculation, management estimates that a 10%
immediate, parallel increase in prevailing interest rates would decrease the net fair market value
of its fixed rate debt securities by approximately&nbsp;$1.9 million.The selection of a 10% immediate parallel
increase in prevailing interest rates should not be construed as a prediction by the Company&#146;s
management of future market events, but rather, to illustrate the potential impact of such an event.
To the extent that actual results differ from the assumptions utilized, the Company&#146;s rate shock
measures could be significantly impacted. Additionally, the Company&#146;s calculation assumes that
the current relationship between short-term and long-term interest rates (the term structure of interest
rates) will remain constant over time. As a result, these calculations may not fully capture the
impact of nonparallel changes in the term structure of interest rates and/or large changes in interest rates.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Equity Price Risk</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Equity price risk is the risk that the Company will incur economic losses due to adverse changes in
a particular stock or stock index. At December 31, 2004, the Company had approximately $7.2 million
in nonredeemable preferred and common stocks. Equity price risk is addressed in part by varying the
specific allocation of equity investments over time pursuant to management&#146;s assessment of market
and business conditions and ongoing liquidity needs analysis. The Company&#146;s largest equity exposure
is declines in the S&amp;P 500; its portfolio of equity instruments is similar to those that comprise
this index. Based upon the information and assumptions the Company used in its calculation, management
estimates that an immediate decrease in the S&amp;P 500 of 10% would decrease the net fair value
of the Company&#146;s assets identified above by approximately $724,000. The selection of a 10% immediate
decrease in the S&amp;P 500 should not be construed as a prediction by the Company&#146;s management
of future market events, but rather, to illustrate the potential impact of such an event. Since this
calculation is based on historical performance, projecting future price volatility using this method
involves an inherent assumption that historical volatility and correlation relationships will remain
stable. Therefore, the results noted above may not reflect the Company&#146;s actual experience if
future volatility and correlation relationships differ from such historical relationships.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Critical Accounting Policies</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s management makes various estimates when applying policies affecting the preparation
of the consolidated financial statements. Actual results could differ from those estimates. Significant
accounting policies of the Company are discussed in Note 1 to the accompanying Consolidated Financial
Statements. Following are those accounting policies considered critical to the Company:</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Premiums Written and Commissions to Agents</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Title insurance premiums are recorded and recognized as revenue at the time of closing of the related
transaction as the earnings process is considered complete. Policies or commitments are issued upon
receipt of final certificates or preliminary reports with respect to titles. Title insurance commissions
earned by the Company&#146;s agents are recognized as expense concurrently with premium recognition.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Reserves for Claims</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The total reserve for all reported and unreported losses the Company incurred on its income statement
through December 31, 2004 is represented by the reserve for claims on the consolidated&nbsp;balance
sheet. 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 (incurred but not reported claims). </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Because of the uncertainty of future claims, the effect of changes in economic conditions, and the
fact that many claims do not materialize for several years, reserve estimates are subject to variability.
Declining economic conditions may result in an increase in mechanics liens and defalcations, thus
increasing the Company&#146;s claims expenses. Management analyzes historical claims experience,
mix of business, geographic considerations, industry averages and current economic conditions in
establishing loss provision rates. Claims reserves are reviewed as to their reasonableness by an
independent actuarial firm annually. The Company&#146;s claims reserves are consistent with the independent
actuary&#146;s claims reserves. Actuarial projections are compared with recorded reserves and any
necessary adjustments are included in current operations. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Despite the variability of such estimates, management believes based on historical claims experience
and independent actuarial analysis that the reserves are adequate to cover claim losses resulting
from pending and future claims for policies issued through December 31, 2004. The Company continually
reviews and adjusts its reserve estimates to reflect its loss experience and any new information
that becomes available. Currently, there are no known claims that are expected to have a materially
adverse effect on the Company&#146;s financial position or operating results.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investments in Securities</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity
and are reported at cost, adjusted for amortization of premiums or accretion of discounts and other-than-temporary
declines in fair value. Securities held principally for resale in the near term are classified as
trading securities and recorded at fair values. Realized and unrealized gains and losses on trading
securities are included in other income. Securities not classified as either trading or held-to-maturity
are classified as available-for-sale and reported at fair value, adjusted for other-than-temporary
declines in fair value, with unrealized gains and losses reported as accumulated other comprehensive
income. Securities are continually monitored for differences between the cost and estimated fair
value of each security. Fair values of all investments are based on quoted market prices. Realized
gains and losses are determined on the specific identification method. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Deferred Tax Asset</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company recorded net deferred tax assets at December 31, 2004 and 2003 related primarily to reserves
for claims, allowance for doubtful accounts and employee benefits. Based upon the Company&#146;s
historical results of operations, the existing financial condition of the Company and management&#146;s
assessment of all other available information, management believes that it is more likely than not
that the benefit of these assets will be realized. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Off-Balance Sheet Arrangements and Contractual Obligations</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
 <FONT face="Times New Roman, Times, Serif" size=2>As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing
earnest money received under real estate contracts, undisbursed amounts received for settlement of
mortgage loans and indemnities against specific title risks. Cash and other assets held by the Company for these purposes were approximately
$16,621,000 and $6,676,000 as of December 31, 2004 and 2003, respectively. These
amounts are not considered assets of the Company, and therefore, are excluded
from the accompanying consolidated balance sheets. The Company remains contingently liable for the
disposition of these deposits.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, in administering tax-deferred exchanges,
ITEC serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished
property to be used for purchase of replacement property. ITAC serves as exchange accommodation titleholder
and, through LLCs that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse
exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $165,594,000 and $99,186,000 as
of December 31, 2004 and 2003, respectively.&nbsp;
These amounts are not considered assets of the Company and, therefore, are excluded
from the accompanying consolidated balance sheets. The Company remains
contingently liable for the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, payments due under various agreements with third party service providers, and obligations
pursuant to certain executive employment agreements. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The following table summarizes the Company&#146;s future estimated cash payments under existing contractual obligations
at December 31, 2004 including payments due by period:</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>

<HR color=gray noShade SIZE=5>

</TD></TR></TABLE>

<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

<table width=600 border=0 cellpadding=0 cellspacing=0>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th colspan=14 valign="middle"><u><font face="Times New Roman, Times, Serif" size=1><b>Payments
      due by period</b></font></u></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th>
      <div align="left"><font face="Times New Roman, Times, Serif" size=1><b>Contractual
        Obligations</b></font></div>
    </th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Total</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Less than
      1<br>
      year</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>1 - 3 years</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>3 - 5 years</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>More than
      5 years</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td colspan="14" align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating
      lease obligations</font></td>
    <td width="1%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width="9%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      1,082,684</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width="1%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width="9%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      627,763</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width="1%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width="9%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      440,121</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width="1%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width="9%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      14,800</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width="1%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width="12%" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      &#151;</font></td>
    <td width=2% 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>Reserves
      for claims</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>31,842,000</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>3,695,299</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>8,489,115</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>5,590,569</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>14,067,017</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other obligations</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>764,771</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>578,450</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>141,321</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>45,000</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>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Executive
      employment agreements<br>
      &nbsp;&nbsp;&nbsp;&nbsp;obligations</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>1,185,000</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=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=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=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>1,185,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td colspan="14" align=RIGHT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 34,874,455</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>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 4,901,512</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 9,070,557</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>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 5,650,369</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 15,252,017</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Recent Accounting Standards</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2003, the Financial Accounting Standards Board (&#147;FASB&#148;)
issued Interpretation No. 46, <I>Consolidation of Variable Interest Entities </I>(&#147;FIN 46&#148;). FIN 46 amended Accounting Research Bulletin 51, <I>Consolidated Financial Statements, </I>and established standards for determining circumstances under which a variable interest entity (&#147;VIE&#148;)

should be consolidated by its primary beneficiary. FIN 46 also requires disclosures about VIEs
that
the Company is not required to consolidate but in which it has a significant variable interest.
In
December 2003, the FASB issued FIN 46-R, which not only included amendments to FIN 46, but also
required
application of the interpretation to all affected entities no later than March 31, 2004
for calendar-year
reporting companies. Prior to FIN 46-R, however, companies were required to apply
the interpretation
to special-purpose entities by December 31, 2003. The adoption of FIN 46-R as
it relates to special-purpose
entities did not have any effect on the Company&#146;s results of
operations, financial position
or liquidity. The Company did not have a material impact upon
its full adoption of the interpretation
as of March 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 Issue 03-1 did not result in any other-than-temporary

impairment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In December 2004, the FASB issued SFAS No. 123(R), <I>Accounting for Stock-Based Compensation. </I>SFAS No. 123(R) establishes standards for the accounting for transactions in which an entity exchanges
its equity instruments for goods or services. This Statement focuses primarily on accounting for
transactions in which an entity obtains employee services in share-based payment transactions. SFAS
No. 123(R) requires that the fair value of such equity instruments be recognized as an expense in
the historical financial statements as services are performed. Prior to SFAS No. 123(R), only certain
pro forma disclosures of fair value were required. The provisions of this Statement are effective
for the first interim reporting period that begins after June 15, 2005. Accordingly, we will adopt
SFAS No. 123(R) commencing with the quarter ending September 30, 2005. If we had included the cost
of employee stock option compensation in our consolidated financial statements, our net income for
the fiscal years ended December 31, 2004, 2003 and 2002 would have decreased by $153,228, $145,367
and $125,541, respectively. Accordingly, the adoption of SFAS No. 123(R) is not expected to have
a material effect on the Company&#146;s consolidated financial statements.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Selected Quarterly Financial Data</FONT></P>
</TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></div></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>March 31</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>June 30</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>September 30</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="12" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net premiums written</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16,981,756</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 19,649,652</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 18,334,559</FONT></TD>
    <TD WIDTH=2% ALIGN=RIGHT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16,809,190</FONT></TD>
    <TD WIDTH=2% 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=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>2,221,604</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>2,880,395</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>2,927,864</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>2,689,303</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic earnings per common share</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>.89</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.15</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.17</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.08</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>Diluted earnings per common share</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>.84</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.10</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.12</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>1.03</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 size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></div></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>March 31</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>June 30</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>September 30</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="12" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net premiums written</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 19,667,985</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 23,322,629</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 23,469,590</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,467,108</FONT></TD>
    <TD WIDTH=2% 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=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>2,608,561</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>3,087,452</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>2,963,799</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>2,305,202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic earnings per common share</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>1.04</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>1.24</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 bgcolor="#EAF9E8"><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=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>.92</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>Diluted earnings per common share</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>1.00</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>1.18</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>1.13</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>.88</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Balance Sheets</B></FONT></P>
</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
</TR>
</TABLE>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Middle>
    <th align="left" nowrap><font size=1 face="Times New Roman, Times, serif">as
      of December31,</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font></th>
    <th width="3%">&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font></th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan="6" align=LEFT nowrap>
      <hr NOSHADE size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif"><b>Assets</b></font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td width=10% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, serif" size=1></font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td width=10% align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, serif" size=1></font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Cash
      and cash equivalents</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 4,726,443</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td width="8%" align=RIGHT><font face="Times New Roman, Times, serif" size=1>
      5,125,356</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Investments
      in securities (Notes 2 and 3):</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap colspan="7"><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Fixed
      maturities:</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity,
      at amortized cost (fair value: 2004: $2,330,129; 2003: $2,646,869)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,202,635</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,481,353</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale,
      at fair value (amortized cost: 2004: $70,371,143; 2003: $42,172,395)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>72,471,766</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>45,100,520</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Equity
      securities, available-for-sale at fair value (cost: 2004: $4,442,304; 2003:
      $12,289,005)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">7,240,306</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=right><font size="1" face="Times New Roman, Times, serif">14,556,785</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Short
      term investments</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>10,134,321</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>16,747,964</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Other
      investments</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1,211,517</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>955,561</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=1>
    </td>
    <td nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      investments</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>93,260,545</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>79,842,183</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap bgcolor="#EAF9E8"><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Premiums
      receivable (less allowance for doubtful accounts: 2004: $2,240,000; 2003:
      $2,474,000)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>6,679,994</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>8,031,803</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Accrued
      interest and dividends</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>753,638</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>667,147</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Prepaid
      expenses and other assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1,410,584</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>934,345</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Property
      acquired in settlement of claims</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>322,517</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>286,517</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Property,
      net (Note 4)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>4,592,784</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>4,099,243</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Deferred
      income taxes, net (Note 8)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1,440,247</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1,485,217</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=1>
    </td>
    <td nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif"><b>Total
      Assets</b></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 113,186,752</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 100,471,811</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=2>
    </td>
    <td nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font size=1 face="Times New Roman, Times, serif">Liabilities
      and Stockholders&#146; Equity</font></b></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><b><font size=1 face="Times New Roman, Times, serif">Liabilities</font></b></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Reserves
      for claims (Note 6)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 31,842,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 30,031,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Accounts
      payable and accrued liabilities (Note 10)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>7,919,651</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>6,243,906</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Commissions
      and reinsurance payables (Note 5)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>551,662</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>726,191</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Current
      income taxes payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>366,168</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>281,968</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="6" align=LEFT nowrap>
      <hr NOSHADE size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>40,679,481</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>37,283,065</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=1>
    </td>
    <td nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><b><font size=1 face="Times New Roman, Times, serif">Commitments
      and Contingencies (Notes 5, 9, 10 and 11)</font></b></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font size=1 face="Times New Roman, Times, serif">Stockholders&#146;
      Equity (Notes 2, 3, 7, 12 and 14)</font></b></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap bgcolor="#EAF9E8"><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Class
      A Junior Participating preferred stock (shares authorized 100,000; no shares
      issued)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Common
      stock-no par value (shares authorized 10,000,000; 2,481,024 and<br>
      &nbsp;&nbsp;&nbsp;&nbsp;2,503,923 shares issued and outstanding 2004 and
      2003, respectively, excluding<br>
      &nbsp;&nbsp;&nbsp;&nbsp;374,720 and 351,821 shares 2004 and 2003, respectively,
      of common stock<br>
      &nbsp;&nbsp;&nbsp;&nbsp;held by the Company&#146;s subsidiary)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>1</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Retained
      earnings</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>69,272,092</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>59,756,927</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;Accumulated
      other comprehensive income (net unrealized gain on investments)<br>
      &nbsp;&nbsp;&nbsp;(net of deferred taxes: 2004: $1,663,447; 2003: $1,768,477)
      (Note 8)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>3,235,178</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>3,431,818</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=1>
    </td>
    <td nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Total
      stockholders&#146; equity</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>72,507,271</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>63,188,746</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr noshade size=1>
    </td>
    <td nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font size=1 face="Times New Roman, Times, serif"><b>Total
      Liabilities and Stockholders&#146; Equity</b></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 113,186,752</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 100,471,811</font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=6 nowrap>
      <hr NOSHADE size=2>
    </td>
    <td nowrap>&nbsp;</td>
  </tr>
</table>

<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See notes to consolidated financial statements.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Statements of Income</B></FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>for the Years Ended December 31, </FONT></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><HR NOSHADE SIZE=1></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Revenues</b></FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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;Underwriting income:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Premiums written (Note 5)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 72,069,796</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 84,365,541</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 67,647,012</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;Less&#151;premiums for reinsurance ceded (Note 5)</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>294,639</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>438,229</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>348,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Net premiums written</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>71,775,157</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>83,927,312</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>67,298,617</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;Investment income-interest and dividends (Note 3)</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>2,752,838</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>2,691,687</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>2,806,808</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net realized gain on sales of investments (Note 3)</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>93,656</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>258,718</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>279,301</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;Exchange services revenue</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>2,801,888</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>1,245,234</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>947,426</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other</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>2,417,637</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>2,706,920</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>1,520,188</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>79,841,176</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>90,829,871</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>72,852,340</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Operating Expenses</b></FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT colspan="2">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Commissions to agents</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>29,152,645</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>39,113,544</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>32,006,188</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Provision for claims (Note 6)</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>7,984,339</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>9,292,739</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>6,871,822</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;Salaries, employee benefits and payroll taxes (Notes 7 and 10)</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>16,303,351</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>15,644,097</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>12,591,736</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Office occupancy and operations (Note 9)</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>5,384,398</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>5,149,386</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>4,810,283</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;Business development</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>1,899,315</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>1,905,609</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>2,161,928</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Taxes, other than payroll and income</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>453,354</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>347,186</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>387,594</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;Premium and retaliatory taxes</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>1,406,083</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>1,680,952</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>1,378,880</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Professional fees</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>1,540,066</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>1,137,648</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>772,096</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;Other</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>215,459</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>387,696</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>202,971</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>64,339,010</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>74,658,857</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>61,183,498</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Before Income Taxes</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>15,502,166</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>16,171,014</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>11,668,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Provision for Income Taxes (Note 8)</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>4,783,000</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>5,206,000</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>3,560,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,719,166</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,965,014</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 8,108,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic Earnings per Common Share (Note 7)</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.29</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.38</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.22</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted Average Shares Outstanding&#151;Basic</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,496,711</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,503,659</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,517,328</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted Earnings per Common Share (Note 7)</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.09</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.18</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=2></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted Average Shares Outstanding&#151;Diluted</FONT></b></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>2,620,916</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>2,624,473</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>2,597,979</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=2></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See notes to consolidated financial statements.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Statements of Stockholders&#146; Equity</B></FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<table width=600 border=0 cellpadding=0 cellspacing=0>
  <tr valign=Bottom>
    <td colspan="2" rowspan="4" align=LEFT nowrap><font size="1" face="Times New Roman, Times, serif"><b>for
      the Years Ended December 31, 2004, 2003 and 2002 </b> </font></td>
    <td colspan="4" align=RIGHT>&nbsp;</td>
    <td width="3%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font></td>
    <td width="2%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font></td>
    <td width="5%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><b><font size="1" face="Times New Roman, Times, serif">Retained
       </font></b><b><font size="1" face="Times New Roman, Times, serif"><br>
      Earnings  </font></b></td>
    <td width="3%" rowspan="4" align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font></td>
    <td width="1%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font>
    </td>
    <td width="15%" rowspan="4" align=RIGHT><font face="Times New Roman, Times, serif"><b><font size="1">Accumulated
       </font></b><font size="1"><b>Other Comprehensive <br>
      Income (Net<br>
      Unrealized Gain (loss)</b> </font> </font> <font face="Times New Roman, Times, serif"><b><font size="1">on
      Investments)  </font></b> </font></td>
    <td width="2%" rowspan="4" align=left><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font>
    </td>
    <td width="1%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><font size="1">&nbsp; </font></td>
    <td width="5%" rowspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font><b><font size="1" face="Times New Roman, Times, serif">Total<br>
      Stockholders&#146;<br>
      Equity  </font></b></td>
    <td width="3%" rowspan="4" align=LEFT><font size="1">&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="4" align=RIGHT><font size="1" face="Times New Roman, Times, serif"><b>Common
      Stock</b>  </font> </td>
  </tr>
  <tr valign=bottom>
    <td colspan="4" align=RIGHT>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=bottom>
    <td width="5%" align=RIGHT><b><font size="1" face="Times New Roman, Times, serif">Shares
       </font></b></td>
    <td width="2%" align=LEFT><font size="1">&nbsp; </font></td>
    <td width="1%" align=RIGHT><font size="1">&nbsp; </font></td>
    <td width="5%" align=RIGHT><b><font size="1" face="Times New Roman, Times, serif">Amount </font></b></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="15" align=LEFT>
      <hr noshade size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size=1>Balance,<br>
      &nbsp;&nbsp;January 1, 2002 </font></b></td>
    <td width="2%" align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,516,298 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, Serif" size="1">$ </font>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">1 </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1><font face="Times New Roman, Times, Serif" size="1">$ </font>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>41,928,575 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, Serif" size="1">$ </font>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">2,343,192 </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1"><font face="Times New Roman, Times, Serif" size="1">$ </font>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>44,271,768 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      income </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>8,108,842 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>8,108,842 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Dividends
      ($.12 per share) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(300,557 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(300,557 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Shares
      of common stock repurchased </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(19,134 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(359,903 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(359,903 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Issuance
      of common stock in payment of<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bonuses and fees </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>3,036 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>56,757 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>56,757 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Stock
      options exercised </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>15,604 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>179,330 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>179,330 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      unrealized gain on investments </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>711,947 </font></td>
    <td align=left><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">711,947 </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="15" align=LEFT>
      <hr noshade size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size=1>Balance,<br>
      &nbsp;&nbsp;December 31, 2002 </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,515,804 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">1 </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>49,613,044 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">3,055,139
       </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>52,668,184 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      income </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>10,965,014 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>10,965,014 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Dividends
      ($.12 per share) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(300,411 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(300,411 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Shares
      of common stock repurchased </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(41,175 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(986,479 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(986,479 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Issuance
      of common stock in payment of<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bonuses and fees </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,144 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>51,224 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>51,224 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Stock
      options exercised </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>27,150 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>414,535 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>414,535 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      unrealized gain on investments </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>376,679 </font></td>
    <td align=left><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>376,679 </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="15" align=LEFT>
      <hr noshade size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size=1>Balance,<br>
      &nbsp;&nbsp;December 31, 2003 </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,503,923 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">1 </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>59,756,927 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif"> 3,431,818 </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>63,188,746 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      income </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>10,719,166 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>10,719,166 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Dividends
      ($.15 per share) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(374,425 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(374,425 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Shares
      of common stock repurchased </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(37,635 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(1,182,654 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(1,182,654 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Issuance
      of common stock in payment of<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bonuses and fees </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>876 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>28,217 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>28,217 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Stock
      options exercised </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>13,860 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>324,861 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>324,861 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Net
      unrealized loss on investments </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=LEFT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(196,640 </font></td>
    <td align=left><font size="1" face="Times New Roman, Times, serif">) </font></td>
    <td align=RIGHT><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>(196,640 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="15" align=LEFT>
      <hr noshade size=1>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, serif" size=1>Balance,<br>
      &nbsp;&nbsp;&nbsp;December 31, 2004 </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>2,481,024 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">$ </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">1 </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 69,272,092 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">$ </font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">3,235,178
       </font></td>
    <td align=left><font size="1">&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, serif" size=1> 72,507,271 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, serif" size=1>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="15" align=LEFT>
      <hr noshade size=2>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>

<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See notes to consolidated financial statements.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Statements of Comprehensive Income</B></FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Middle>
    <th align="left"><font face="Times New Roman, Times, Serif" size=1>for the
      Years Ended December 31,</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2002</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan="9" align=LEFT>
      <hr NOSHADE size=1>
    </td>
    <td width="2%" align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td width=60% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      income</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      10,719,166</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      10,965,014</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$&nbsp;&nbsp;&nbsp;</font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      8,108,842</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other comprehensive
      income (loss), before tax:</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Unrealized
      gains (losses) on investments arising during the year</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>(204,283</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>829,443</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>1,358,009</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;Less:
      reclassification adjustment for gains realized in net income</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>(93,656</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>(258,718</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>(279,301</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Other
      comprehensive income (loss), before tax</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>(297,939</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>570,725</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>1,078,708</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Income
      tax expense (benefit) related to unrealized gains (losses) <br>
      &nbsp;&nbsp;&nbsp;on investments arising during the year</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>(69,4</font><font face="Times New Roman, Times, Serif" size=2>56</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>282,010</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>461,723</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Income
      tax expense related to reclassification adjustment for<br>
      &nbsp;&nbsp;&nbsp;&nbsp;gains realized in net income</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>(31,843</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>(87,964</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>(94,962</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Net
      income tax expense (benefit) on other comprehensive income</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>(101,299</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>194,046</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>366,761</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#EAF9E8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other comprehensive
      income (loss)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#EAF9E8"><font face="Times New Roman, Times, Serif" size=2>(196,640</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>376,679</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>711,947</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Comprehensive
      income</b></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 10,522,526</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>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 11,341,693</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;$&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,820,789</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=9>
      <hr NOSHADE size=2>
    </td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See notes to consolidated financial statements.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Statements of Cash Flows</B></FONT></P>
</TD>
</TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TH align="left">&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Middle>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>for the Years Ended December 31,</FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD WIDTH=63% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>Operating Activities</b></FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 10,719,166</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 10,965,014</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 8,108,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities:</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>968,914</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>848,552</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>961,872</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Amortization, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>44,303</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>26,409</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>25,022</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock in payment of bonuses and fees</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>28,217</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>51,224</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>56,757</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Provision (benefit) for losses on premiums receivable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(234,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>674,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>395,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Net gain on disposals of property</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4,791</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(15,485</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on sales of investments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(93,656</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(258,718</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(279,301</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Provision for claims</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,984,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>9,292,739</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>6,871,822</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Provision (benefit) for deferred income taxes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>150,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(786,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(906,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;Changes in assets and liabilities:</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables and other assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>987,079</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>270,698</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,806,897</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,399,668</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,232,261</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,265,278</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in commissions and reinsurance payables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(174,529</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>325,151</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>119,079</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in current income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>84,200</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(606,117</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>749,264</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Payments of claims, net of recoveries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(6,173,339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4,891,739</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,701,822</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD COLSPAN=10><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Net cash provided by operating activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>15,685,967</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>17,138,683</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>12,843,431</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1><b>Investing Activities</b></FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Purchases of available-for-sale securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(61,955,609</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(15,748,801</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(8,490,059</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Purchases of short term securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(9,537,040</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(7,712,288</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(10,410,064</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Purchases of and net earnings from other investments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(265,143</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(486,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(499,894</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Proceeds from sales and maturities of available-for-sale securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>41,648,634</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,754,400</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4,574,556</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Proceeds from maturities of held-to-maturity securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>283,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>897,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>880,751</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Proceeds from sales of short term securities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>16,146,292</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,486,879</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3,412,955</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Proceeds from sales and distributions from other investments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>9,187</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>106,100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Purchases of property</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,504,787</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(894,238</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(691,968</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Proceeds from disposals of property</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>46,727</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>61,119</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>69,551</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Net change in pending trades</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>276,077</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(387,104</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(496,097</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(14,852,662</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(14,922,933</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(11,650,269</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1><b>Financing Activities</b></FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Repurchases of common stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,182,654</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(986,479</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(359,903</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Exercise of options</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>324,861</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>414,535</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>179,330</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Dividends paid</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(374,425</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(300,411</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(300,557</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,232,218</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(872,355</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(481,130</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net Increase (Decrease) in Cash and Cash Equivalents</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(398,913</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,343,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>712,032</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><b><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Cash and Cash Equivalents, Beginning of Year</FONT></b></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5,125,356</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3,781,961</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3,069,929</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=1></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>Cash and Cash Equivalents, End of Year</b></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4,726,443</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 5,125,356</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 3,781,961</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=9><HR NOSHADE SIZE=2></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=1>Supplemental Disclosures<br>
      Cash Paid During the Year for</FONT></b></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Income Taxes (net of refunds)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 4,553,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 6,612,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 3,718,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><HR NOSHADE SIZE=2></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See notes to consolidated financial statements.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company and Subsidiaries<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Notes to Consolidated Financial Statements</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>1. Basis of Presentation and Summary of Significant Accounting Policies</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><U>Description of Business</U>&#151;Investors Title Company&#146;s (the &#147;Company&#148;) two primary business segments are title
insurance and exchange services. The Company&#146;s title insurance segment, through its two subsidiaries,
Investors Title Insurance Company (&#147;ITIC&#148;) and Northeast Investors Title Insurance Company
(&#147;NE-ITIC&#148;), is licensed to insure titles to residential, institutional, commercial and
industrial properties. The Company issues title insurance policies primarily through approved attorneys
from underwriting offices in North Carolina and South Carolina, and primarily through independent
issuing agents in the District of Columbia, Alabama, Arkansas, Florida, Georgia, Illinois, Indiana,
Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey,
New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia
and Wisconsin. The majority of the Company&#146;s business is concentrated in Michigan, New York,
North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia. Investors Title Exchange Corporation
(&#147;ITEC&#148;) acts as an intermediary in tax-deferred exchanges of property held for productive
use in a trade or business or for investments, while Investors Title Accommodation Corporation (&#147;ITAC&#148;)
serves as an exchange accommodation titleholder, offering a vehicle for accomplishing a reverse exchange
when a taxpayer must acquire replacement property before selling the relinquished property. Both
ITEC and ITAC derive their income from fees for handling exchange transactions.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><U>Principles of Consolidation and Basis of Presentation</U>&#151;The accompanying consolidated financial statements include the accounts of the Company and its
wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><U>Reclassification</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Certain 2003 and 2002 amounts in the consolidated financial statements have been reclassified to conform
to the&nbsp;2004 classifications. These reclassifications had no effect on stockholders&#146; equity
or net income as previously reported.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2><U>Significant Accounting Policies</U>&#151;The significant accounting policies of the Company are summarized below:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Cash and Cash Equivalents</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>For the purpose of presentation in the Company&#146;s statements of cash flows, cash equivalents are
highly liquid investments with original maturities of three months or less. The carrying amount of
cash and cash equivalents is a reasonable estimate of fair value due to the short term maturity of
these investments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Investments in Securities</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity
and reported at cost, adjusted for amortization of premiums or accretion of discounts and other-than-temporary
declines in fair value. Securities held principally for resale in the near term are classified as
trading securities and recorded at fair values. Realized and unrealized gains and losses on trading
securities are included in other income. Securities not classified as either trading or held-to-maturity
are classified as available-for-sale and reported at fair value, adjusted for other-than-temporary
declines in fair value, with unrealized gains and losses, net of tax, reported as accumulated other
comprehensive income. Securities are continually monitored for differences between the cost and estimated
fair value of each security. Fair values of all investments are based on quoted market prices. Realized
gains and losses are determined on the specific identification method. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><I>Short term investments</I></B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short term investments comprise money market accounts,
time deposits with banks and savings and loan associations and other investments expected to have
maturities or redemptions greater than three months and less than twelve months. The Company did
not identify any events or changes in circumstances that may have had a significant adverse effect
on the fair value of these investments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><I>Other investments</I></B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I> &nbsp;&nbsp;&nbsp;Other investments consist primarily of investments in affiliates, which are accounted
for under the equity or cost method of accounting. The Company did not identify any events or changes
in circumstances that may have had a significant adverse effect on the fair value of these investments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Property Acquired in Settlement of Claims</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Property acquired in settlement of claims are held for sale and&nbsp;valued at the lower of cost or
market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions
are recorded as increases or decreases in claim costs.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Property and Equipment</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Property and equipment are recorded at cost and are depreciated principally under the straight-line
method over the estimated useful lives (3 to 25 years) of the respective assets. Maintenance and
repairs are charged to operating expenses and improvements are capitalized.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Reserves for Claims</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The total reserve for all reported and unreported losses the Company incurred through December 31,
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 resulting from pending and
future claims for policies issued through December 31, 2004. The Company continually reviews and
adjusts its reserve estimates as necessary to reflect its loss experience and any new information
that becomes available. Adjustments resulting from such reviews may be significant.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 acquiring company carries assets at the lower of
cost or estimated realizable value, net of any indebtedness on the property.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Deferred Income Taxes</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company provides for deferred income taxes (benefits) for the tax consequences on future years
on temporary differences between the financial statements&#146; carrying values and the tax bases
of assets and liabilities using currently enacted tax rates.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Premiums Written and Commissions to Agents</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Premiums are recorded and recognized as revenue at the time of closing of the related transaction as
the earnings process is considered complete. Title insurance commissions earned by the Company&#146;s
agents are recognized as expense concurrently with premium recognition.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><b>Fair Values of Financial Instruments</b></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair values for investment securities are based
on quoted market prices. The carrying amounts reported in the balance sheet for short term investments,
premiums receivable, accrued interest and dividends, accounts payable, commissions and reinsurance
payables and current income taxes payable approximates cost, which is what is reflected on the balance
sheet, due to the short term nature of these assets and liabilities.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Comprehensive Income</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s other comprehensive income is solely comprised of unrealized holding gains on available-for-sale
securities, net of tax.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Stock-Based Compensation Disclosure</B></I></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company has adopted Employee Stock Option Purchase Plans (the &#147;Plans&#148;) under which options
to purchase shares (not to exceed 650,000 shares) of the Company&#146;s stock may be granted to key
employees of the Company at a price not less than the market value on the date of grant. All options
are exercisable at 10% to 20% per year beginning on the date of grant or one year from the date of
grant and generally expire in five to ten years. The Company applies the intrinsic value method of
Accounting Principles Board Opinion No. 25, <I>Accounting for Stock Issued to Employees</I>, and related Interpretations in accounting for its employee stock option plans and, accordingly, no
compensation cost has been recognized.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Had compensation cost for the Plans been determined based on the fair value at the grant dates for
awards under those plans consistent with the method of Financial Accounting Standards Board Statement
No. 123, <I>Accounting for Stock-Based Compensation</I>, the Company&#146;s net income and earnings per share would have been reduced to the pro forma amounts
indicated below:</FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>2004</FONT></DIV></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>2003</FONT></DIV></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>2002</FONT></DIV></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>Net income:</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD>
      <TD width=2% align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD>
      <TD width=2% align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD>
      <TD width=2% align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;As reported</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>10,719,166</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>10,965,014</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>8,108,842</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left bgcolor="#EAF9E8"><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;Add back issuance of common stock in payment of bonuses and fees, net of tax</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>18,623</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>33,808</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>37,460</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;Deduct &#150; Total stock-based compensation expense<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under fair value method for all awards, net of tax</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>171,851</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>179,175</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>163,001</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>Pro forma</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>10,565,938</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>10,819,647</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>7,983,301</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
      <TD align=right colSpan=2><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>Basic earnings per common share:</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;As reported</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.29</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.38</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>3.22</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;Pro forma</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.23</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.32</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>3.17</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left bgcolor="#EAF9E8"><FONT face="Times New Roman, Times, serif" size=1>Diluted earnings per common share:</FONT></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;As reported</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.09</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>4.18</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>3.12</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;Pro forma</FONT></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">4.03</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">4.12</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
      <TD align=right bgcolor="#EAF9E8"><font size="1" face="Times New Roman, Times, serif">3.07</font></TD>
      <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The estimated weighted average grant-date fair value of options granted for the years ended December
31 are as follows:</FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2004</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2003</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2002</FONT></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD width="68%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Exercise price equal to market price on date of grant:</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="6%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="6%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="6%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="2%" 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;Weighted average exercise price</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>28.92</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>23.39</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=right><FONT face="Times New Roman, Times, Serif"
      size=2>19.40</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Weighted average grant-date fair value</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>13.47</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>10.78</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>8.83</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>There are no stock options granted where the exercise price is less than the market price on the date of grant.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants&nbsp;in 2004, 2003 and 2002, respectively: dividend yield of .5%, .4% and .6%;&nbsp;expected volatility of&nbsp;31%, 31% and 32%;&nbsp;risk-free interest rates of approximately 4.2%, 4.3% and 3.9%; and expected lives of 10 years.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Escrows
      and Like-Kind Exchanges</B></I></FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>As a service to its
customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts,
undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks.&nbsp;
      Cash held by the Company for these purposes were approximately $16,621,000 and
      $6,676,000 as of December 31, 2004 and 2003, respectively. In addition, in administering tax-deferred exchanges, ITEC serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. ITAC serves as exchange accommodation titleholder and, through LLCs that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions.&nbsp;
      Like-kind exchange deposits and reverse exchange property totaled
      approximately $165,594,000 and $99,186,000 as of December 31, 2004 and 2003
      respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying consolidated balance sheets. The Company remains contingently liable for the disposition of these
      deposits and for the transfers of property, disbursements of proceeds and
      the return on the proceeds at the agreed upon rate.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2><B><I>Recent Accounting Standards</I></B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif"
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In January 2003, the Financial Accounting
Standards Board (&#147;FASB&#148;) issued Interpretation No. 46,
<I>Consolidation of Variable Interest Entities </I>(&#147;FIN 46&#148;). FIN 46
amended Accounting Research Bulletin 51, <I>Consolidated Financial Statements,
</I>and established standards for determining circumstances under which a
variable interest entity (&#147;VIE&#148;) should be consolidated by its primary
beneficiary. FIN 46 also requires disclosures about VIEs that the Company is not
required to consolidate but in which it has a significant variable interest. In
December 2003, the FASB issued FIN 46-R, which not only included amendments to
FIN 46, but also required application of the interpretation to all affected
entities no later than March 31, 2004 for calendar-year reporting companies.
Prior to FIN 46-R, however, companies were required to apply the interpretation
to special-purpose entities by December 31, 2003. The adoption of FIN 46-R as it
relates to special-purpose entities did not have any effect on the
Company&#146;s results of operations, financial position or liquidity. The
Company did not have a material impact upon its full adoption of the
interpretation as of March 31, 2004.</FONT></P>

<P><FONT face="Times New Roman, Times, Serif"
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 Issue 03-1 did not
result in any other-than-temporary impairment.</FONT></P>

<P><FONT face="Times New Roman, Times, Serif"
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In December 2004, the FASB issued SFAS No.
123(R), <I>Accounting for Stock-Based Compensation. </I>SFAS No. 123(R)
establishes standards for the accounting for transactions in which an entity
exchanges its equity instruments for goods or services. This Statement focuses
primarily on accounting for transactions in which an entity obtains employee
services in share-based payment transactions. SFAS No. 123(R) requires that the
fair value of such equity instruments be recognized as an expense in the
historical financial statements as services are performed. Prior to SFAS No.
123(R), only certain pro forma disclosures of fair value were required. The
provisions of this Statement are effective for the first interim reporting
period that begins after June 15, 2005. Accordingly, we will adopt SFAS No.
123(R) commencing with the quarter ending September 30, 2005. If we had
included the cost of employee stock option compensation in our consolidated
financial statements, our net income for the fiscal years ended December 31,
2004, 2003 and 2002 would have decreased by&nbsp; $153,228, $145,367 and
$125,541, respectively. Accordingly, the adoption of SFAS No. 123(R) is not
expected to have a material effect on the Company&#146;s consolidated financial
statements.</FONT></P>

      <P><FONT face="Times New Roman, Times, Serif" size=2><I><B>Use of Estimates and Assumptions</B></I></FONT></P>

    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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 and accompanying notes. Actual results could differ from those estimates and assumptions used.</FONT></P></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>2. Statutory Restrictions on Consolidated Stockholders&#146; Equity and Investments</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company has designated approximately $33,066,000 and $30,223,000 of retained earnings as of December
31, 2004 and 2003, respectively, as appropriated to reflect the required statutory premium reserve.
See Note 8 for the tax treatment of the statutory premium reserve.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>As of December 31, 2004 and 2003, approximately $58,014,000 and $53,477,000, respectively, of consolidated
stockholders&#146; equity represents net assets of the Company&#146;s subsidiaries that cannot be
transferred in the form of dividends, loans or advances to the parent company under statutory regulations
without prior insurance department approval.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Bonds totaling approximately $3,639,000 and $3,235,000 at December 31, 2004 and 2003, respectively,
are deposited with the insurance departments of the states in which business is conducted. These
investments are restricted as to withdrawal as required by law.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>3. Investments in Securities</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The aggregate fair value, gross unrealized holding gains, gross unrealized holding losses, and amortized
cost for securities by major security type at December 31 are as follows:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table cellspacing=0 cellpadding=0 width=600 border=0>
  <tr valign=bottom>
    <th nowrap><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif"
      size=1><br>
      Amortized<br>
      Cost </font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif"
      size=1>Gross<br>
      Unrealized<br>
      Gains</font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif"
      size=1>Gross<br>
      Unrealized<br>
      Losses </font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif"
      size=1>Estimated<br>
      Fair<br>
      Value </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;December 31, 2004</font></td>
    <td width="3%" align=left nowrap><font size="1">&nbsp;</font></td>
    <td width="1%" align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="9%" align=right><font face="Times New Roman, Times, Serif"
      size=1></font></td>
    <td width="3%" align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="1%" align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="9%" align=right><font face="Times New Roman, Times, Serif"
      size=1></font></td>
    <td width="3%" align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="1%" align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="9%" align=right><font face="Times New Roman, Times, Serif"
      size=1></font></td>
    <td width="3%" align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="1%" align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td width="9%" align=right><font face="Times New Roman, Times, Serif"
      size=1></font></td>
    <td width="2%" align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;Fixed maturities&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity, at amortized cost:</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political
      subdivisions</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,202,635</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>127,494</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,330,129</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,202,635</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>127,494</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,330,129</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;Fixed maturities&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td colspan="14" align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;Available-for-sale, at fair value:</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political
      subdivisions</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>62,831,726</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,547,127</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>91,373</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>64,287,480</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>7,539,417</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>644,869</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>8,184,286</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total </font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>70,371,143</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,191,996</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>91,373</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>72,471,766</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan="13" align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Equity
      securities, available for sale at fair value&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;Common stocks and nonredeemable preferred
      stocks</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>4,442,304</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,844,124</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>46,122</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>7,240,306</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>4,442,304</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,844,124</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>46,122</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>7,240,306</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Short
      term investments&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit and other</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,134,321</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,134,321</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,134,321</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,134,321</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>December
      31, 2003</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Fixed
      maturities&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity, at amortized cost:</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political
      subdivisions</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,481,353</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>165,850</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>334</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,646,869</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,481,353</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>165,850</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>334</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,646,869</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Fixed
      maturities&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;Available-for-sale, at fair value:</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations of states and political
      subdivisions</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>29,465,352</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,905,912</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,571</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>31,360,693</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate debt securities</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>12,707,043</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,032,784</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>13,739,827</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>42,172,395</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,938,696</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>10,571</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>45,100,520</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Equity
      securities, available for sale at fair value&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;Common stocks and nonredeemable preferred stocks</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>11,289,005</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,268,786</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,006</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>13,556,785</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redeemable preferred stocks</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,000,000</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,000,000</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>12,289,005</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>2,268,786</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>1,006</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>14,556,785</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif" size=1>Short
      term investments&#151;</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit and other</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>16,743,574</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>4,390</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>16,747,964</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=1>
    </td>
    <td align=left><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom bgcolor="#EAF9E8">
    <td align=left nowrap><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
    <td align=left nowrap><font size="1">&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>16,743,574</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>4,390</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>&#151;</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
    size=1>$</font></td>
    <td align=right><font face="Times New Roman, Times, Serif"
      size=1>16,747,964</font></td>
    <td align=left><font face="Times New Roman, Times, Serif"
      size=1>&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td colspan=13 align=left nowrap>
      <hr noShade size=2>
    </td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap></td>
    <td nowrap></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td nowrap></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td nowrap></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>The scheduled maturities of fixed maturity securities at December 31, 2004 are as follows:</FONT></P>
</TD>
</TR>
<TR>
  <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=5><FONT face="Times New Roman, Times, Serif"
      size=1>Available-for-Sale</FONT><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=5><FONT face="Times New Roman, Times, Serif"
      size=1>Held-to-Maturity</FONT><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TH colSpan=12> <HR noShade SIZE=1>
      </TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>Amortized<BR>
        Cost</FONT></TH>
      <TH width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<BR>
        Value</FONT></TH>
      <TH width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>Amortized<BR>
        Cost </FONT></TH>
      <TH width="2%">&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<BR>
        Value </FONT></TH>
      <TH width="2%">&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=12><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD width="44%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Due in one year or less</FONT></TD>
      <TD width="2%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,001,392</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="2%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,011,687</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="2%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&#151;</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="2%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&#151;</FONT></TD>
      <TD width="2%" 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>Due after one year through five years</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>14,351,610</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>15,022,477</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>64,977</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>67,771</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Due after five years through ten years</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>19,692,200</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>20,629,171</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>464,948</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>495,519</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>Due after ten years</FONT></TD>
      <TD align=right width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>35,325,941</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>35,808,431</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,672,710</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,766,839</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=12><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Total</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>70,371,143</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>72,471,766</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><div align="right"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></div></TD>
      <TD align=right><div align="right"><FONT face="Times New Roman, Times, Serif"
      size=2>2,202,635</FONT></div></TD>
      <TD align=left><div align="right"><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></div></TD>
      <TD align=right><div align="right"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></div></TD>
      <TD align=right><div align="right"><FONT face="Times New Roman, Times, Serif"
      size=2>2,330,129</FONT></div></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=12><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Earnings on investments and net realized gains for the years ended December 31 are as follows:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2004</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2003</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2002</FONT></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD width="56%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Fixed maturities</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>2,396,282</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>2,300,172</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>2,397,307</FONT></TD>
      <TD width="2%" 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>Equity securities</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>220,773</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>223,379</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>225,913</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Invested cash and other
        short term investments</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>128,204</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>158,775</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>166,298</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>Miscellaneous interest</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>7,579</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>9,361</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>17,290</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net realized gain</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>93,656</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>258,718</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>279,301</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Investment income</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>2,846,494</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>2,950,405</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>3,086,109</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><p><font size="2" face="Times New Roman, Times, serif"> </font><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><font size="2" face="Times New Roman, Times, serif">Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31 are summarized as follows: </font></p></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2004</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2003</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2002</FONT></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD width="57%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Gross realized gains:</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="4%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="4%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="9%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2></FONT></TD>
      <TD width="2%" 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;Obligations of states and political subdivisions</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>9,633</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>117,600</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=right><FONT face="Times New Roman, Times, Serif"
      size=2>5,909</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Debt securities of domestic corporations</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>25,994</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=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>6,820</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 stocks and nonredeemable preferred stocks</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>147,042</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>253,753</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>405,449</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>182,669</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>371,353</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>418,178</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Gross realized losses:</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;Obligations of states and political subdivisions</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>(407</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>(2,464</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>(7,672</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;Common stocks and nonredeemable preferred stocks</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>(88,606</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>(110,171</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>(131,205</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>(89,013</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>(112,635</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>(138,877</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net realized gain</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>93,656</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>258,718</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>279,301</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2004 were as follows:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=5> <DIV align=center><FONT face="Times New Roman, Times, Serif" size=1>Less than 12 Months</FONT><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></DIV></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=5> <DIV align=center><FONT face="Times New Roman, Times, Serif" size=1>12 Months or Longer</FONT><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></DIV></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=5><FONT face="Times New Roman, Times, Serif" size=1></FONT> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Total</FONT></DIV></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TD align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <th align=left><FONT face="Times New Roman, Times, Serif" size=1>December 31, 2004</FONT></th>
      <th align=right><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left width="2%"> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right width="3%"> <DIV align=center><font size="1"></font></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left width="2%"> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right width="3%"> <DIV align=center><font size="1"></font></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left width="2%"> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right width="3%"><font size="1"></font></th>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Fixed securities</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>7,093,332</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(85,367</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>498,720</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(6,006</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>7,592,052</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(91,373</FONT></TD>
      <TD width="3%" 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>Equity securities</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>659,999</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>(46,122</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>&#151;</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=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>659,999</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>(46,122</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total temporary impaired &nbsp;securities</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>7,753,331</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(131,489</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>498,720</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(6,006</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>8,252,051</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(137,495</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
</TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TD align=left colSpan=18>&nbsp;</TD>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <th align=left><FONT face="Times New Roman, Times, Serif" size=1>December 31, 2003</FONT></th>
      <th align=right><FONT face="Times New Roman, Times, Serif"
      size=1></FONT></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right> <DIV align=center><font size="1"></font></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right> <DIV align=center><font size="1"></font></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Fair<br>
          Value</FONT></DIV></th>
      <th align=left> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=2><font size="1"></font></FONT></DIV></th>
      <th align=right> <DIV align=center><FONT face="Times New Roman, Times, Serif"
      size=1>Unrealized<br>
          Losses</FONT></DIV></th>
      <th align=right><font size="1"></font></th>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Fixed securities</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>661,341</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(10,571</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>100,345</FONT></TD>
      <TD width="2%" align=right>&nbsp;</TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(334</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>761,686</FONT></TD>
      <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD width="8%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(10,905</FONT></TD>
      <TD width="3%" 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>Equity securities</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>131,275</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>(1,006</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>&#151;</FONT></TD>
      <TD align=right>&nbsp;</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=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>131,275</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>(1,006</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=18><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total temporary impaired &nbsp;securities</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>792,616</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(11,577</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>100,345</FONT></TD>
      <TD align=right>&nbsp;</TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(334</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>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>892,961</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>(11,911</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A total of 17 and 5 securities had unrealized losses at
December 31, 2004 and December 31, 2003, respectively, and the duration of these securities range
from three to more than ten years. The majority of the Company&#146;s unrealized losses relate to
its portfolio of fixed securities. The Company&#146;s unrealized losses on its fixed securities were
caused by interest rate increases. Since the decline in fair value is attributable to changes in
interest rates and not credit quality, and the Company has the intent and ability to hold these securities,
the Company does not consider these investments other-than-temporarily impaired.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>4. Property and Equipment</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Property and equipment and estimated useful lives at December 31 are summarized as follows:&nbsp;</FONT></P>
</TD>
</TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH>&nbsp;</TH>
      <TH colSpan=2>&nbsp;</TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2>&nbsp;</TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2004</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2003</FONT></TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=6><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Land</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,107,582</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>1,107,582</FONT></TD>
      <TD width="2%" 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>Title plant</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>200,000</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>200,000</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Office buildings and improvements (25 years)</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>1,846,288</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>1,730,592</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>Furniture, fixtures and equipment (3 to 10 years)</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>6,837,261</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>5,657,659</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Automobiles (3 years)</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>526,287</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>516,906</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=6><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>10,517,418</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>9,212,739</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Less accumulated depreciation</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>(5,924,634</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>(5,113,496</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=6><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Property and equipment, net</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>4,592,784</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=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 colSpan=6><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2><B>5. Reinsurance</B></FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company assumes and cedes reinsurance with other insurance companies in the normal course of business. Premiums assumed and ceded were approximately&nbsp;$6,000 and $295,000,&nbsp;respectively, for 2004,&nbsp;$6,000 and $438,000, respectively, for 2003, and $21,000 and $348,000, respectively, for 2002. Ceded reinsurance is comprised of excess of loss treaties, which protects against losses over certain amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event that the assuming insurance companies are unable to meet their obligations under these contracts. The Company has not paid or recovered any reinsured losses during the three years ended December 31, 2004.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2><B>6. Reserves for Claims</B></FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Changes in the reserves for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written:</FONT></P>
    </td>
  </tr>
</table>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
    <TR vAlign=bottom>
      <TH>&nbsp;</TH>
      <TH colSpan=2>&nbsp;</TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2>&nbsp;</TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2>&nbsp;</TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2004</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
    size=1>2003</FONT></TH>
      <TH>&nbsp;</TH>
      <TH colSpan=2><FONT face="Times New Roman, Times, Serif"
      size=1>2002</FONT> </TH>
      <TH>&nbsp;</TH>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>Balance, beginning of year</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>30,031,000</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>25,630,000</FONT></TD>
      <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
      <TD width="10%" align=right><FONT face="Times New Roman, Times, Serif"
      size=2>21,460,000</FONT></TD>
      <TD width="3%" 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 related to:</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Current year</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>8,171,579</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>12,995,785</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>9,714,121</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;Prior years</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>(187,240</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>(3,703,046</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>(2,842,299</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision charged to operations</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>7,984,339</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>9,292,739</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>6,871,822</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Claims paid, net of recoveries, related to:</FONT></TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Current year</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>(167,882</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>(680,357</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>(395,688</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;Prior years</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>(6,005,457</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>(4,211,382</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>(2,306,134</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom bgcolor="#EAF9E8">
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total claims paid, net of recoveries</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>(6,173,339</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>(4,891,739</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>(2,701,822</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
    size=2>)</FONT></TD>
    </TR>
    <TR>
      <TD></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
      <TD colSpan=3></TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left colSpan=9><HR noShade SIZE=1>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=bottom>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, end of year</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>31,842,000</FONT></TD>
      <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
      <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
      <TD align=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>
      <TD align=right><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 colSpan=9><HR noShade SIZE=2>
      </TD>
      <TD align=left>&nbsp;</TD>
    </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In management&#146;s opinion, the reserves are adequate to cover claim losses which might result from pending and possible claims.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2><B>7. Earnings Per Share and Stock Options</B></FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The employee stock options are considered outstanding for the diluted earnings per common share calculation. The total increase in the weighted average shares outstanding related to these equivalent shares was 124,205,&nbsp;120,814&nbsp;and 80,651&nbsp;for 2004, 2003 and 2002,&nbsp;respectively.</FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:</FONT></P></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 valign="middle"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH valign="middle">&nbsp;</TH>
    <TH COLSPAN=2 valign="middle"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH valign="middle">&nbsp;</TH>
    <TH COLSPAN=2 valign="middle"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT bgcolor="#EAF9E8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,719,166</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,965,014</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 8,108,842</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted average common shares outstanding - Basic</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>2,496,711</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>2,503,659</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>2,517,328</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Incremental shares outstanding assuming<br>
&nbsp;&nbsp;&nbsp;&nbsp;the exercise of dilutive stock options</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>124,205</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>120,814</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>80,651</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="1" colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="1" colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="1" colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted average common shares outstanding - Diluted</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>2,620,916</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>2,624,473</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>2,597,979</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic earnings per common share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.29</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.38</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.22</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted earnings per common share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.09</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.18</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>All outstanding options during 2004 were included in the computation of diluted earnings per share
because the options&#146; exercise prices were less than or equal to the average market price of
the common shares. Options to purchase 29,600 and 69,386 shares of common stock were outstanding
during 2003 and 2002, respectively, but were not included in the computation of diluted earnings
per share because the options&#146; exercise prices were greater than the average market price of
the common shares.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>A summary of the status of the Company&#146;s plans as of December 31 and changes during the years
ended on those dates is presented below:</FONT></P>
</TD>
</TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=5>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=5>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=5>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=5><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=18><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Exercise<br>
Price</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Exercise<br>
Price</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options</FONT></TH>
    <TH nowrap>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Exercise<br>
Price</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH nowrap><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH nowrap><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH nowrap><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH nowrap><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH nowrap><font size="1">&nbsp;</font></TH>
    <TH COLSPAN=2 nowrap><font size="1">&nbsp;</font></TH>
    <TH><font size="1">&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding at beginning of year</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>264,891</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16.09</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>298,741</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.68</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>291,835</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.08</FONT></TD>
    <TD WIDTH=2% 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>Granted</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>7,200</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>28.92</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>22,500</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>23.39</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>28,650</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>19.40</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercised</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>(13,860</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>16.38</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>(27,150</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>15.27</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>(15,604</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>11.49</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>Forfeited</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>(11,450</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>15.99</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>(29,200</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>18.28</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>(6,140</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>15.04</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=18><hr size="1" noshade></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding at end of year</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>246,781</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16.45</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>264,891</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16.09</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>298,741</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.68</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options exercisable at year-end</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>176,696</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>157,851</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.18</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>145,156</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.22</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The following table summarizes information about fixed stock options outstanding at December 31, 2004:&nbsp;</FONT></td>
  </tr>
</table>
<TABLE WIDTH=600 BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=7>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options Outstanding at Year-End</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options Exercisable at <BR>Year-End</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=6><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH colspan="4"><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Range of Exercise Prices</FONT></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number<BR>
      Outstanding</FONT></TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Remaining<BR>
      Contractual Life</FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Exercise<BR>
      Price</FONT></TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number<BR>
      Exercisable</FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      Average<BR>
      Exercise<BR>
      Price</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="12" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$10.00-$12.00</FONT></TD>
    <TD width="12%" ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57,595</FONT></div></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
    <TD width="12%" ALIGN=LEFT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></div></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.10</FONT></div></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
    <TD width="10%" ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38,520</FONT></div></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="10%" ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10.99</FONT></div></TD>
    <TD width="2%" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;13.06- &nbsp;15.58</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>115,030</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.28</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>106,250</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>13.14</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp;&nbsp;17.25-&nbsp; 19.35</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,690</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.93</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,015</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>19.12</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;20.00-&nbsp; 22.75</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,726</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.15</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,106</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>20.94</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;25.28-&nbsp; 31.27</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45,740</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28.49</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,805</FONT></div></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>28.66</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><div align="center"></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><div align="right"></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;$10.00-$31.27</FONT></TD>
    <TD ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>246,781</FONT></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.45</FONT></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>176,696</FONT></div></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.15</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2><B>8. Income Taxes </B></FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The components of income tax expense for the years ended December 31 are summarized as follows:</FONT></P>
    </td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=9><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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;Federal</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,442,000</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,900,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,425,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;State</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>191,000</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>92,000</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>41,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>4,633,000</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>5,992,000</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>4,466,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#EAF9E8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred expense (benefit)</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>150,000</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>(786,000</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>(906,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,783,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,206,000</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,560,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="9" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>For state income tax purposes, ITIC and NE-ITIC generally pay only a gross premium tax.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>At December 31, the approximate effect on each component of deferred income taxes and liabilities is
summarized as follows:</FONT></P>
</TD>
</TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred income tax assets:</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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;Recorded reserves for claims net of statutory premium reserves</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,482,271</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,795,692</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Accrued benefits and retirement reserves</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,003,020</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>731,048</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;Reinsurance and commissions payable</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>96,586</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>111,767</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Bad debt reserve</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>761,600</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>841,160</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;Net operating loss carryforward</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51,000</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>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>74,650</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>59,224</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,469,127</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>3,538,891</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Deferred income tax liabilities:</FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net unrealized gain on investments</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,663,447</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>1,768,477</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Excess of tax over book depreciation</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>270,864</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>237,974</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;Discount accretion on tax-exempt obligations</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,251</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>27,768</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70,318</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>19,455</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,028,880</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>2,053,674</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net deferred income tax assets</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,440,247</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>At December 31, 2004 and 2003, no valuation allowance was recorded. Based upon the Company&#146;s historical results of operations, the existing financial condition of the Company and management&#146;s assessment of all other available information, management believes that it is more likely than not that the benefit of these net deferred income tax assets will be realized.</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>A reconciliation of income tax as computed for the years ended December 31 at the U.S. federal statutory income tax rate (34%) to income tax expense follows:</FONT></P>
    </td>
  </tr>
</table>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2002</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan="11" align=LEFT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>Anticipated
      income tax expense</font></td>
    <td width=1% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8">
      <p align="left"><font face="Times New Roman, Times, Serif" size=2>$&nbsp;&nbsp;&nbsp;</font></p>
    </td>
    <td width=9% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      5,270,736</font></td>
    <td width=3% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8">
      <p align="left"><font face="Times New Roman, Times, Serif" size=2>$&nbsp;&nbsp;</font></p>
    </td>
    <td width=9% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      5,498,145</font></td>
    <td width=3% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8">
      <p align="left"><font face="Times New Roman, Times, Serif" size=2>$&nbsp;&nbsp;</font></p>
    </td>
    <td width=9% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      3,967,406</font></td>
    <td width=2% align=LEFT bgcolor="#eaf9e8"><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>Increase
      (reduction) related to:</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>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;State
      income taxes, net of the federal income tax benefit</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>126,060</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>55,625</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>25,740</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><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;Tax-exempt
      interest income (net of amortization)</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>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(638,049</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>(441,763</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>(461,300</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Other,
      net</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>24,253</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>93,993</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>28,154</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="11" align=LEFT>
      <hr size="1" noshade>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Provision
      for income taxes</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>$&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 4,783,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT>
      <p align="left"><font face="Times New Roman, Times, Serif" size=2>$</font></p>
    </td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 5,206,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT>
      <p align="left"><font face="Times New Roman, Times, Serif" size=2>$</font></p>
    </td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3,560,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td colspan="11" align=LEFT>
      <hr size="2" noshade>
    </td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P><FONT face="Times New Roman, Times, Serif" size=2><B>9. Leases</B></FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company leases certain office facilities and equipment under operating leases. Rental expense also includes occasional rental of automobiles. Rent expense totaled approximately $746,000, $635,000 and $643,000 in 2004, 2003 and 2002, respectively. The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2004 are summarized as follows:</FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year End:</FONT></div></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD WIDTH=27% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 627,763</FONT></TD>
    <TD WIDTH=2% 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>2006</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>292,933</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2007</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>147,188</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>2008</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,856</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2009</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,944</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="5" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</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>&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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,082,684</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="5" ALIGN=LEFT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>10. Retirement and Other Postretirement Benefit Plans</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>After three years of service, employees are eligible to participate in a Simplified Employee Pension
Plan. Contributions, which are made at the discretion of the Company, are based on the employee&#146;s
salary, but in no case will such contribution exceed $41,000 annually per employee. All contributions
are deposited in Individual Retirement Accounts for participants. Contributions expensed under the
plan were approximately $572,000, $533,000 and $475,000 for 2004, 2003 and 2002, respectively.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
<FONT face="Times New Roman, Times, Serif" size=2>In November 2003, ITIC, a wholly owned subsidiary of
the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial
Officer and the Chief Operating Officer of ITIC. These individuals also serve as the Chief Executive
Officer, President and Executive Vice President, respectively, of the Company. The agreements provide
compensation and life, health, dental and vision benefits upon the occurrence of specific events,
including death, disability, retirement, termination without cause or upon a change in control. The
agreements provide for annual salaries to be fixed by the Compensation Committee and, among other benefits. ITIC shall make
quarterly contributions pursuant to a supplemental executive retirement plan on behalf of each executive equal to 22% of the base
salary and bonus paid to each during such quarter. The agreements also prohibit each of these executives
from competing with ITIC and its parent, subsidiaries and affiliates in the State of North Carolina
while employed by ITIC and for a period of two years following termination of their employment. In
addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation
plan agreements with these executives. The amount accrued for these plans at December 31, 2004 and
2003 was $1,185,000 and $452,000, respectively, which includes post retirement compensation and health
benefits, and was calculated based on the terms of the contract. These executive contracts are accounted
for on an individual contract basis.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>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. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Cost of the Company&#146;s post-retirement benefit plan included the following components:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#eaf9e8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Net periodic benefit cost</b></FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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;Service cost &#150; benefits earned during the year</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 14,051</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 55,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Interest cost on projected benefit obligation</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,499</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Transition obligation</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>&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=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>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Amendment cost</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,485</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Actuarial loss (gain)</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>&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=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>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Net periodic benefit cost at end of year</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 44,035</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 55,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Funded status</b></FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Actuarial present value of future benefits:</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Fully eligible active employee</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (32,710</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (55,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Non-eligible active employees</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(206,044</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>&#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;&nbsp;&nbsp;Fair market value of plan assets</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>&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=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>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Funded status of accumulated pension benefit obligation</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(238,754</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>(55,000</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;&nbsp;Unrecognized transition obligation</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>&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=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>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Unrecognized prior service cost</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>175,515</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Unrecognized gain</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(35,796</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>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated benefit obligation at end of year</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (99,035</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=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (55,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Development of the accumulated post-retirement benefit obligation for the year ended December 31, 2004
includes the following:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated benefit obligation at beginning of year</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 55,000</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD WIDTH=2% 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>Service cost &#150; benefits earned during the year</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,051</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>55,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest cost on projected benefit obligation</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,499</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendment cost</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,485</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated benefit obligation at end of year</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 99,035</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 55,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Weighted-average actuarial assumptions used to determine benefit obligations at December 31 were:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH align="right">&nbsp;</TH>
    <TH COLSPAN=2 align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="8" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discount rate</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.75</FONT></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.00</FONT></TD>
    <TD WIDTH=2% 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>Expected return on plan assets</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>&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;</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>N/A</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expected medical cost increase</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5-12</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>5-10</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>Expected dental and vision cost increase</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>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</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>5</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Assumed health care cost trend rates do have an effect on the amounts reported for the post-retirement
benefit plan. The following illustrates the effects on the net periodic post-retirement benefit cost
(NPPBC) and the accumulated post-retirement benefit obligation (APBO) of a one percentage point increase
and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2004:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1-Percentage<BR>
      point increase</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1-Percentage<BR>
      point decrease</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=6><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. NPPBC</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=2% 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;Effect on the service cost component</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,137</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (3,070</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effect on interest cost</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>3,483</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>(2,619</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="6" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total effect on the net periodic post-retirement benefit cost</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,620</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (5,689</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="6" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. APBO (including active employees who are not fully eligible)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effect on those currently receiving benefits (retirees and spouses)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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 bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effect on actives fully eligible</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>3,008</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>(2,659</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;Effect on actives not yet eligible</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>57,556</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>(42,888</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="6" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total effect on the accumulated post-retirement benefit obligation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 60,564</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (45,547</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="6" ALIGN=LEFT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>11. Commitments and Contingencies</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Company and its subsidiaries are involved in various routine 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>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>12. Statutory Accounting</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The consolidated financial statements have been prepared in conformity with accounting principles generally
accepted in the United States of America which differ in some respects from statutory accounting
practices prescribed or permitted in the preparation of financial statements for submission to insurance
regulatory authorities.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Stockholders&#146; equity on a statutory basis was $66,262,421 and $55,139,781 as of December 31, 2004
and 2003, respectively. Net income on a statutory basis was $9,292,197, $10,344,810 and $8,466,841
for the twelve months ended December 31, 2004, 2003 and 2002, respectively. The Company&#146;s subsidiaries
complied with all applicable state insurance department requirements on December 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>13. Segment Information</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Consistent with SFAS No. 131,
<i>Disclosures about Segments of an Enterprise and Related Information, </i>the Company has aggregated its operating segments into two reportable
segments: 1) title insurance services; and 2) tax-deferred exchange services.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The title insurance segment primarily issues title insurance policies through approved attorneys from
underwriting offices and through independent issuing agents. Title insurance policies insure titles
to residential, institutional, commercial and industrial properties.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The tax-deferred exchange segment acts as an intermediary in tax-deferred exchanges of property held
for productive use in a trade or business or for investments and serves as exchange accommodation
titleholder, holding property for exchangers in reverse exchange transactions. Revenues are derived
from fees for handling exchange transactions.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Provided below is selected financial information about the Company&#146;s operations by segment for
the three years ended December 31, 2004, 2003 and 2002:</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Title<BR>
Insurance</FONT></TH>
     <TH>&nbsp;</TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange<BR>
Services</FONT></TH>
     <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>All<BR>
  Other</FONT></TH>
     <TH>&nbsp;</TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Intersegment<BR>
Elimination</FONT></TH>
     <TH>&nbsp;</TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total</FONT></TH>
     <TH>&nbsp;</TH>
</TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=15>
     <hr size="1" noshade></TD>
     <TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Operating revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   72,874,630</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    2,801,888</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,921,114</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (602,950</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   76,994,682</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Investment income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,651,291</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,821</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>147,662</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(53,936</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,752,838</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Net realized gain on sales of investments</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>106,156</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(12,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>93,656</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;Total revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   75,632,077</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    2,809,709</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    2,056,276</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (656,886</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   79,841,176</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Operating expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>62,035,935</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>646,758</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,259,267</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(602,950</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>64,339,010</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Income (loss) before income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   13,596,142</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    2,162,951</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (202,991</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      (53,936</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   15,502,166</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   96,880,761</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      1,316,413</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 14,989,578</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>  113,186,752</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Operating revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   85,704,635</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,245,234</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,586,529</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (656,932</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   87,879,466</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Investment income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,631,506</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,818</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>99,641</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(42,278</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,691,687</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Net realized gain on sales of investments</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>258,718</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>258,718</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;Total revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   88,594,859</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,248,052</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,686,170</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (699,210</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   90,829,871</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Operating expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>73,444,721</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>495,119</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,375,949</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(656,932</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>74,658,857</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Income (loss) before income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   15,150,138</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      752,933</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      310,221</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      (42,278</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   16,171,014</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   90,844,552</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      626,771</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 9,000,488</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>  100,471,811</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=RIGHT><font size="1">&nbsp;</font></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Operating revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   68,291,735</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      947,426</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,124,530</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (597,460</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   69,766,231</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Investment income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,749,019</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>6,114</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>93,807</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(42,132</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,806,808</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;Net realized gain on sales of investments</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>279,301</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>279,301</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;Total revenues</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   71,320,055</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      953,540</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>    1,218,337</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>     (639,592</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   72,852,340</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Operating expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>60,241,962</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>441,386</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,097,610</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(597,460</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>61,183,498</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="1" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom bgcolor="#eaf9e8">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;Income (loss) before income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   11,078,093</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      512,154</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      120,727</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>      (42,132</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>   11,668,842</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=Bottom>
  <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Assets</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 76,067,241</FONT></TD>
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 386,419</FONT></TD>
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 8,183,486</FONT></TD>
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> &#151;</FONT></TD>
  <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT></TD>
  <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 84,637,146</FONT></TD>
  <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
</TR>
<TR VALIGN=Bottom>
     <TD colspan="15" ALIGN=LEFT><hr size="2" noshade></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
  <TD>&nbsp;</TD>
</TR>
<TR>
<TD>

<P><FONT face="Times New Roman, Times, Serif" size=2><B>14. Stockholders&#146; Equity</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>On November 12, 2002, the Company&#146;s Board of Directors amended the Company&#146;s Articles of
Incorporation, creating a series of Class A Junior Participating Preferred Stock (the &#147;Class
A Preferred Stock&#148;). There are 1,000,000 shares of Preferred Stock authorized and 100,000 of
these shares have been designated Series A Junior Participating Preferred Stock. The Class A Junior
Participating Preferred Stock is senior to common stock in dividends or distributions of assets upon
liquidations, dissolutions or winding up of the Company. Dividends on the Class A Preferred Stock
are cumulative and accrue from the quarterly dividend payment date. Each share of Class A Preferred
Stock entitles the holder thereof to 100 votes on all matters submitted to a vote of shareholders
of the Company. These shares were reserved for issuance under the Shareholder Rights Plan (the &#147;Plan&#148;),
which was adopted on November 21, 2002, by the Company&#146;s Board of Directors. Under the terms
of the Plan, the Company&#146;s common stock acquired by a person or a group buying 15% or more of
the Company&#146;s common stock would be diluted, except in transactions approved by the Board of Directors.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In connection with the Plan, the Company&#146;s Board of Directors declared a dividend distribution
of one right (a &#147;Right&#148;) for each outstanding share of the Company&#146;s common stock
paid on December 16, 2002, to shareholders of record at the close of business on December 2, 2002.
Each Right entitles the registered holder to purchase from the Company a unit (a &#147;Unit&#148;)
consisting of one one-hundredth of a share of Class A Preferred Stock at a purchase price of $80
per Unit. Under the Plan, the Rights detach and become exercisable upon the earlier of (a) ten (10)
days following public announcement that a person or group of affiliated or associated persons has
acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding
shares of the Company&#146;s common stock, or (b) ten (10) business days following the commencement
of, or first public announcement of the intent of a person or group to commence, a tender offer or
exchange offer that would result in a person or group beneficially owning 15% or more of such outstanding
shares of the Company&#146;s common stock. The exercise price, the kind and the number of shares
covered by each right are subject to adjustment upon the occurrence of certain events described in the Plan.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<HR color=gray noShade SIZE=5>
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<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
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<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>If the Company is acquired in a merger or consolidation in which the Company is not the surviving corporation,
or the Company engages in a merger or consolidation in which the Company is the surviving corporation
and the Company&#146;s common stock is changed or exchanged, or more than 50% of the Company&#146;s
assets or earning power is sold or transferred, the Rights entitle a holder (other than the acquiring
person or group) to buy, at the exercise price, stock of the acquiring company having a market value
equal to twice the exercise price. Following an acquisition by such person or group of 50% or more
of the outstanding common stock, the Company&#146;s Board of Directors may exchange the Rights (other
than the Rights owned by such person or group), in whole or in part, at an exchange ratio of one
share of the Company&#146;s common stock, or one one-hundredth of a share of Preferred Stock, per Right.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>The Rights expire on November 11, 2012 and are redeemable upon action by the Board of Directors at
a price of $0.01 per right at any time before they become exercisable. Until the Rights become exercisable,
they are evidenced only by the common stock certificates and are transferred with and only with such
certificates.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>15. Subsequent Events</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>On January 11, 2005, three executives of the Company exercised nonqualified stock options. Shares issued
under these options were immediately purchased by ITIC under the existing Stock Repurchase Plan approved
by the Board of Directors on June 5, 2000. This repurchase resulted in compensation expense totaling
$598,484 during the first quarter of 2005. </FONT></P></TD></TR></TABLE>
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<P><FONT face="Times New Roman, Times, Serif" size=2>Report of Independent Registered Public Accounting Firm</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>To the Board of Directors and Stockholders of<BR>Investors Title Company </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>We have audited the accompanying consolidated balance sheet of Investors Title Company and its subsidiaries
(the &#147;Company&#148;) as of December 31, 2004, and the related consolidated statements of income,
stockholders&#146; equity, comprehensive income and cash flows for the year&nbsp;ended December 31,
2004. These financial statements are the responsibility of the Company&#146;s management. Our responsibility
is to express an opinion on these financial statements based on our audit.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company as of December 31, 2004, and the results of their
operations and their cash flows for the year then&nbsp;ended in conformity with accounting principles
generally accepted in the United States of America.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>/s/ Dixon Hughes PLLC<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>High Point, North Carolina<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>March&nbsp;7, 2005</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Report of Independent Registered Public Accounting Firm</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>To the Board of Directors and Stockholders of<BR> Investors Title Company </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>We have audited the accompanying consolidated balance sheets of Investors Title Company and its subsidiaries
(the &#147;Company&#148;) as of December 31, 2003 and 2002, and the related consolidated statements
of income, comprehensive income, stockholders&#146; equity and cash flows for each of the years then
ended. These financial statements are the responsibility of the Company&#146;s management. Our responsibility
is to express an opinion on these financial statements based on our audits.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>In our opinion, such consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2003 and 2002, and the results of its operations
and its cash flows for the years then ended in conformity with accounting principles generally accepted
in the United States of America.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>/s/ Deloitte &amp; Touche LLP<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Raleigh, North Carolina<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>March 25, 2004</FONT></P>
</TD></TR></TABLE>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.A
<SEQUENCE>6
<FILENAME>d62961_ex23a.htm
<DESCRIPTION>CONSENTS OF EXPERTS AND COUNSEL
<TEXT>
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<P align=right><FONT face="Times New Roman, Times, Serif" size=2><U><B>Exhibit 23 (a)</B></U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>
Consent of Independent Registered Public Accounting Firm
and Report on Schedules
</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>
We consent to the use in Registration  Statement No.  333-33903 of Investors Title Company (the &#147;Company&#148;) and  Subsidiaries on Form
S-8 of our report dated March 7, 2005,  incorporated  by  reference  in this Annual  Report on Form 10-K of the Company for the year
ended December 31, 2004.
</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>
Our audit of the consolidated financial statements referred to in our aforementioned report also included the financial statement
schedules of the Company, listed in Item 15 as of and for the year ended December 31, 2004.  These financial statement schedules
are the responsibility of the Company&#146;s management.  Our responsibility is to express an opinion based on our audit.  In our
opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a
whole, present fairly in all material respects, the information set forth herein.
<BR>
</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>
<B><I>/s/DIXON HUGHES PLLC</I></B><BR>
High Point, North Carolina<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>March 16, 2005</FONT></P>
</TD>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.B
<SEQUENCE>7
<FILENAME>d62961_ex23b.htm
<DESCRIPTION>CONSENT OF DELOITTE & TOUCHE LLP
<TEXT>
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<P align=right><FONT face="Times New Roman, Times, Serif" size=2><U><B>Exhibit 23 (b)</B></U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>Consent of Independent Registered Public Accounting Firm and Report on Schedules</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>We consent to the incorporation by reference in Registration Statement No. 333-33903 on Form S-8 of
our report dated March 25, 2004, appearing in this Annual Report on Form 10-K of Investors Title
Company for the year ended December 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Our audits of the consolidated financial statements referred to in our aforementioned report also included
the financial statement schedules of the Company, listed in Item 15. These financial statement schedules
are the responsibility of the Company&#146;s management. Our responsibility is to express an opinion
based on our audits. In our opinion, such financial statements schedules, when considered in relation
to the basic financial statements taken as a whole, present fairly in all material respects, the
information set forth therein.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>/s/ Deloitte &amp; Touche LLP<BR>Raleigh, North Carolina<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>March 16, 2005</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.I
<SEQUENCE>8
<FILENAME>d62961_ex31i.htm
<DESCRIPTION>CERTIFICATION OF CEO PURSUANT TO SECTION 302
<TEXT>
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<TD><P align=right><FONT face="Times New Roman, Times, Serif" size=2><B><U>Exhibit 31(i)</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Certification</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>I, J. Allen Fine, certify that:</FONT></P>
</TD>
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<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this annual report on Form 10-K of Investors Title Company;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>3.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>4.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a) &nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b)&nbsp;&nbsp;&nbsp;&nbsp;evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures

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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>5.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a) &nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b) &nbsp;&nbsp;&nbsp;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>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Date: March 16, 2005</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>/s/ J. Allen Fine</FONT></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine<BR>
    Chief Executive Officer</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>

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<DOCUMENT>
<TYPE>EX-31.II
<SEQUENCE>9
<FILENAME>d62961_ex31ii.htm
<DESCRIPTION>CERTIFICATION OF CFO PURSUANT TO SECTION 302
<TEXT>
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<TD>
<P align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Exhibit 31(ii)</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Certification</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>I, James A. Fine, Jr., certify that:</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this annual report on Form 10-K of Investors Title Company;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>3.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>4.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a) &nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b)&nbsp;&nbsp;&nbsp;&nbsp;evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures

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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>5.</FONT></TD>
<TD vAlign=top><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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a) &nbsp;&nbsp;&nbsp;&nbsp;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>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b) &nbsp;&nbsp;&nbsp;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>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P><FONT face="Times New Roman, Times, Serif" size=2>Date: March 16, 2005</FONT></P>
</TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>/s/ James A. Fine, Jr.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.<BR>Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>10
<FILENAME>d62961_ex32.htm
<DESCRIPTION>CERTIFICATION OF CEO & CFO PURSUANT TO SECT. 906
<TEXT>
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<TD><P align=right><FONT face="Times New Roman, Times, Serif" size=2><B><U>Exhibit 32</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Certifications<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Pursuant to 18 U.S.C. Section 1350,<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>As Adopted Pursuant to<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 906 of the Sarbanes-Oxley Act of 2002</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
Annual Report on Form 10-K for the year ended December 31, 2004 (the &#147;Form 10-K&#148;) of the
Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 and </FONT></P>

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
information contained in the Form 10-K fairly presents, in all material respects,
the financial condition and results of operations of the Company.</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;March 16, 2005</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">/s/ J. Allen Fine</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2> J. Allen Fine</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Chief Executive Officer</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;March 16, 2005</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">/s/ James A. Fine, Jr.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Chief Financial Officer</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
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<DOCUMENT>
<TYPE>COVER
<SEQUENCE>11
<FILENAME>filename11.htm
<TEXT>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>INVESTORS TITLE COMPANY<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>COVER LETTER</B></FONT></P>
</TD></TR></TABLE>
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    <td colspan="2">&nbsp;</td>
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    <td colspan="2"><P><FONT face="Times New Roman, Times, Serif" size=2>VIA EDGAR</FONT></P>      <P><FONT face="Times New Roman, Times, Serif" size=2>Securities and Exchange Commission<br>
        </FONT><FONT face="Times New Roman, Times, Serif" size=2>450 Fifth Street, N.W.<br>
      </FONT><FONT face="Times New Roman, Times, Serif" size=2>Washington, DC&nbsp; 20549</FONT></P></td>
  </tr>
  <tr>
    <td width="8%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
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    <td><FONT face="Times New Roman, Times, Serif" size=2>Re:&nbsp;</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Form 10-K</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>File No. 0-11774</FONT></td>
  </tr>
</table>
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    <td>&nbsp;</td>
  </tr>
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    <td><P><FONT face="Times New Roman, Times, Serif" size=2>To Whom It May Concern:</FONT></P>
      <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Regulation S-T of the Securities and Exchange Commission, Investors Title Company files herewith via EDGAR its Annual Report on Form 10-K for the fiscal year ended December 31, 2004.</FONT></P>
    <P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please be advised that the financial statements in the Annual Report do not reflect any change from the preceding year in any accounting principles or practices or in the method of applying such principles or practices. </FONT></P></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Sincerely,</FONT></td>
  </tr>
  <tr>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>INVESTORS TITLE COMPANY</FONT></td>
  </tr>
  <tr>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>/s/ James A. Fine, Jr.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>President and Treasurer</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
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