-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TGvprlIz43bw/0KfSArsAJ1BQcCsJZiSUnyDOIAGproP5c5iQrC/NMO4/kSNWp97
 wanBlL6ERYK/sVX9CUh/mg==

<SEC-DOCUMENT>0001157523-05-004698.txt : 20050512
<SEC-HEADER>0001157523-05-004698.hdr.sgml : 20050512
<ACCEPTANCE-DATETIME>20050512162635
ACCESSION NUMBER:		0001157523-05-004698
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20050331
FILED AS OF DATE:		20050512
DATE AS OF CHANGE:		20050512

FILER:

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

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11774
		FILM NUMBER:		05824823

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

	MAIL ADDRESS:	
		STREET 1:		121 NORTH COLUMBIA STREET
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d63822_10-q.htm
<DESCRIPTION>INVESTORS TITLE 10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD colspan="2" align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>UNITED STATES<br>
    SECURITIES AND EXCHANGE COMMISSION <br>
  </B>Washington, D.C. 20549<B>    </B></FONT></TD>
</TR>
<TR>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>FORM 10-Q</B></FONT></TD>
</TR>
<TR>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD width="7%" valign="top"><FONT face="wingdings" size=2><B>x</B></FONT></TD>
  <TD><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></div></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2"><FONT face="Times New Roman, Times, Serif" size=2>For the quarterly period ended March 31, 2005</FONT></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR align="center">
  <TD colspan="2"><FONT face="Times New Roman, Times, Serif" size=2>OR</FONT></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD valign="top"><FONT face="wingdings" size=2><B>o</B></FONT></TD>
  <TD><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></div></TD>
</TR>
<TR>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>For the transition period from ____________________&nbsp;to &nbsp;</FONT></TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><P align=center><FONT face="Times New Roman, Times, Serif" size=2>Commission File Number:&nbsp; 0-11774</FONT></P>
    <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>(Exact name of registrant as specified in its charter)</FONT></P>
    </TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
<TD vAlign=top>&nbsp;</TD>
</TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td width="22%"><FONT face="Times New Roman, Times, serif" size=2>North Carolina</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="35%"><FONT face="Times New Roman, Times, serif" size=2>56-1110199</FONT></td>
  </tr>
  <tr align="center">
    <td colspan="3"><hr size="1" noshade></td>
  </tr>
  <tr align="center">
    <td><FONT face="Times New Roman, Times, serif" size=2>(State of incorporation)</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>&nbsp;(I.R.S. Employer Identification No.)</FONT></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2>121 North Columbia Street, Chapel Hill, North Carolina 27514&nbsp;</FONT></td>
  </tr>
  <tr>
    <td><hr align="center" width="340" size="1" noshade></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2>(Address of principal executive offices)&nbsp;&nbsp;&nbsp;(Zip Code)</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2> (919) 968-2200</FONT></td>
  </tr>
  <tr>
    <td><hr align="center" width="85" size="1" noshade></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2>(Registrant&#146;s telephone number, including area code)</FONT></td>
  </tr>
</table>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD vAlign=top>
<P align=left><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 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 <font face="wingdings">x</font>&nbsp; No <font face="wingdings">o</font></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 </FONT><FONT face="Times New Roman, Times, Serif" size=2>12b-2 of the Exchange Act).
&nbsp;Yes <FONT face="Times New Roman, Times, Serif" size=2><font face="wingdings">o</font></FONT>&nbsp;&nbsp;No <font face="wingdings">x</font></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 March 31, 2005, there were 2,855,744 outstanding shares of common stock of Investors Title Company,
including 293,881 shares held by Investors Title Insurance Company, a wholly owned subsidiary of
Investors Title 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 width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><b> INVESTORS TITLE COMPANY <br>
      AND SUBSIDIARIES</b></font></td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><u><font size="2" face="Times New Roman, Times, serif"><b> INDEX</b></font></u></td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="12%"><font size="2" face="Times New Roman, Times, serif"><b>PART I.</b></font></td>
    <td><font size="2" face="Times New Roman, Times, serif"><b> FINANCIAL INFORMATION</b></font></td>
    <td width="3%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 1.</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"><a href="#a1">Financial Statements:</a></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr 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 valign="bottom">
    <td>&nbsp;</td>
    <td><a href="#a2"><font size="2" face="Times New Roman, Times, serif">Consolidated Balance Sheets as of March 31, 2005 and December 31, 2004</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">1</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><a href="#a3"><font size="2" face="Times New Roman, Times, serif">Consolidated Statements of Income <br>
</font></a><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp; <a href="#a3"><font size="2" face="Times New Roman, Times, serif">For the Three Months Ended </font> March 31, 2005 and 2004</a></font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">2</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><a href="#a4"><font size="2" face="Times New Roman, Times, serif">Consolidated Statements of Stockholders&#146; Equity <br>
</font></a><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp; <a href="#a4"><font size="2" face="Times New Roman, Times, serif">For the Three Months Ended </font>March 31, 2005 and 2004</a></font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">3</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><a href="#a5"><font size="2" face="Times New Roman, Times, serif">Consolidated Statements of Cash Flows <br>
</font></a><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp; <a href="#a5"><font size="2" face="Times New Roman, Times, serif">For the Three Months Ended </font>March 31, 2005 and 2004</a></font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">4</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><a href="#a6"><font size="2" face="Times New Roman, Times, serif">Notes to Consolidated Financial Statements</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">5</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 2.</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> <a href="#a7">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a></font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">10</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 3.</font></td>
    <td><a href="#a8"><font size="2" face="Times New Roman, Times, serif"> Quantitative and Qualitative Disclosures About Market Risk</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">16</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 4.</font></td>
    <td><a href="#a9"><font size="2" face="Times New Roman, Times, serif"> Controls and Procedures</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">16</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif"><b>PART II.</b></font></td>
    <td><font size="2" face="Times New Roman, Times, serif"><b> OTHER INFORMATION</b></font></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 2.</font></td>
    <td><a href="#a10"><font size="2" face="Times New Roman, Times, serif"> Unregistered Sales of Equity and Use of Proceeds</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">17</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 6.</font></td>
    <td><a href="#a11"><font size="2" face="Times New Roman, Times, serif"> Exhibits</font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">17</font></td>
  </tr>
  <tr 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 align="right"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td colspan="2"><a href="#a12"><font size="2" face="Times New Roman, Times, serif"><b>SIGNATURES</b></font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif">18</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 width="9%"><b><font size="2" face="Times New Roman, Times, serif"><a name="a1"></a>Item 1. </font></b></td>
    <td><u><b><font size="2" face="Times New Roman, Times, serif">Financial Statements</font></b></u></td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><b><font size="2" face="Times New Roman, Times, serif"> Investors Title Company and Subsidiaries <br>
          <a name="a2"></a>Consolidated Balance Sheets <br>
      <i>As of March 31, 2005 and December 31, 2004</i></font></b></td>
  </tr>
</table>
<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 nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=1>March 31, 2005</FONT>
    <HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=1>December 31, 2004</FONT>
    <HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE=1>(Unaudited)</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <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=13% 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=13% 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;Cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2> 4,838,159</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 4,726,443</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Investments in securities:</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;&nbsp;&nbsp;&nbsp;Fixed maturities:</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity, at amortized cost</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>2,203,026</FONT></b></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 FACE="Times New Roman, Times, serif" SIZE=2>2,202,635</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale, at fair value</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>72,253,978</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities, available-for-sale, at fair value</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>7,296,885</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>7,240,306</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>8,833,528</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>10,134,321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,342,747</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,211,517</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>91,930,164</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>93,260,545</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Premiums receivable, less allowance for doubtful accounts of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,240,000 for 2005 and 2004</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>6,473,197</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>6,679,994</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Accrued interest and dividends</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>794,995</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>753,638</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;Prepaid expenses and other assets</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,674,056</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,410,584</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Property acquired in settlement of claims</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>278,550</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>322,517</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 size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>4,514,530</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Deferred income taxes, net</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,566,179</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</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>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="7"><font size="2" 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>Total Assets</FONT></b></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> 112,069,830</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 113,186,752</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" 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>Liabilities and Stockholders&#146; Equity</FONT></b></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><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>Liabilities:</FONT></b></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;Reserves for claims (Note 2)</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> 32,098,000</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=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><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Accounts payable and accrued liabilities</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>5,369,145</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>7,919,651</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Commissions and reinsurance payables</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>432,638</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>551,662</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;Current income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>556,807</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>366,168</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>38,456,590</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>40,679,481</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" 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>Commitments and Contingencies&nbsp;&nbsp; (Note&nbsp;&nbsp;7)</FONT></b></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><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>Stockholders&#146; Equity:</FONT></b></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;Class A Junior Participating preferred stock (shares authorized <br>
&nbsp;&nbsp;&nbsp; 100,000; no shares issued)</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&#151;</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&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 nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Common stock-no par value (shares authorized 10,000,000;<br>
&nbsp;&nbsp;&nbsp;&nbsp;2,561,863 and 2,481,024 shares issued and outstanding 2005 and 2004,<br>
&nbsp;&nbsp;&nbsp;&nbsp;respectively, excluding 293,881 and 374,720 shares 2005 and 2004,<br>
&nbsp;&nbsp;&nbsp;&nbsp;respectively, of common stock held by the Company<b>&#146;</b>s subsidiary)</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>1</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Retained earnings</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>70,890,920</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;Accumulated other comprehensive income, net of deferred taxes of<br>
    &nbsp;&nbsp;&nbsp;&nbsp;$1,400,420 and $1,663,447 for 2005 and 2004, respectively (Note 3)</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>2,722,319</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&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>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders<b>&#146;</b> equity</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>73,613,240</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&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>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="7"><font size="2" 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>Total Liabilities and Stockholders&#146; Equity</FONT></b></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> 112,069,830</FONT></b></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 113,186,752</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE width="600" border="0" cellspacing="0" cellpadding="0">
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><I>See notes to Consolidated Financial Statements.</I></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>1</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" cellspacing="0" cellpadding="0">
  <TR>
    <TD align="center"><FONT size="2" face="Times New Roman, Times, serif"><B>Investors Title Company and Subsidiaries<BR>
          <a name="a3"></a>Consolidated Statements of Income<BR>
      <I>For the Three Months Ended March 31, 2005 and 2004<BR>
      (Unaudited)</I></B> </FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellspacing=0 cellpadding=0 width=600 border=0>
  <TR valign=bottom>
    <TD nowrap align="CENTER"><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align="CENTER" colspan=2><FONT face="Times New Roman, Times, Serif" size=1><B>2005</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align="CENTER" colspan=2><FONT face="Times New Roman, Times, Serif" size=1><B>2004</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Revenues:</B></FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting income:</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><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;&nbsp;Premiums written</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>17,222,198</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>17,051,282</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><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;&nbsp;Less-premiums for reinsurance ceded</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>139,079</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>69,526</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><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;&nbsp;Net premiums written</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>17,083,119</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>16,981,756</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income - interest and dividends</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>752,765</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>656,375</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) on sales of investments</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(10,894</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>3,431</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange services revenue (Note 5)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>809,639</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>479,894</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>694,950</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>495,113</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><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;&nbsp;Total</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>19,329,579</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>18,616,569</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Operating Expenses:</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions to agents</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>6,991,749</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>6,998,595</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for claims (Note 2)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>1,899,005</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>1,844,379</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries, employee benefits and payroll taxes (Note 6)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>5,367,312</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>3,847,905</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office occupancy and operations</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>1,512,090</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>1,203,798</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business development</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>427,473</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>353,414</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes, other than payroll and income</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>110,754</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>201,114</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium and retaliatory taxes</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>399,545</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>333,004</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>275,046</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>410,675</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>45,111</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>37,874</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><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;&nbsp;Total</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>17,028,085</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>15,230,758</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Income Before Income Taxes</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>2,301,494</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>3,385,811</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Provision For Income Taxes</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>721,000</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>1,164,207</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Net Income</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>1,580,494</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>2,221,604</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Basic Earnings Per Common Share (Note 4)</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>0.62</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>0.89</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Weighted Average Shares Outstanding - Basic (Note 4)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>2,564,490</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>2,505,368</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Diluted Earnings Per Common Share (Note 4)</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>0.60</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>0.84</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD align=left></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>Weighted Average Shares Outstanding - Diluted (Note 4)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2><B>2,625,447</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=2>2,638,264</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE width="600" border="0" cellspacing="0" cellpadding="0">
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><I>See notes to Consolidated Financial Statements.</I></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>2</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" cellspacing="0" cellpadding="0">
  <TR>
    <TD align="center"><FONT size="2" face="Times New Roman, Times, serif"><B>Investors Title Company and Subsidiaries<BR>
            <B><a name="a4"></a>Consolidated Statements of Stockholders&#146; Equity</B><BR>
            <I>For the Three Months Ended March 31, 2005 and 2004<BR>
      (Unaudited)</I></B> </FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellspacing=0 cellpadding=0 width=600 border=0>
  <TR valign=bottom>
    <TD align="CENTER" nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align="CENTER" colspan=4>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2 rowspan="4" align="right" nowrap><B><FONT face="Times New Roman, Times, Serif" size=1><B>Retained</B></FONT><FONT face="Times New Roman, Times, serif" size=1><BR>
      Earnings</FONT></B></TD>
    <TD width="3%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2 rowspan="4" align="right" nowrap><B><FONT face="Times New Roman, Times, Serif" size=1><B>Accumulated<BR>
      Other Comprehensive<BR>
      Income (Net<BR>
      Unrealized Gain (Loss)</B></FONT><FONT face="Times New Roman, Times, serif" size=1><BR>
      on Investments)</FONT></B></TD>
    <TD width="3%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=2 rowspan="4" align="right" nowrap><B><FONT face="Times New Roman, Times, Serif" size=1><B>Total<BR>
      Stockholders&#146;</B></FONT><FONT face="Times New Roman, Times, serif" size=1><BR>
      Equity</FONT></B></TD>
    <TD width="2%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD align="CENTER" nowrap>&nbsp;</TD>
    <TD colspan=4 align="center" valign="bottom"><FONT face="Times New Roman, Times, Serif" size=1><B>Common Stock</B></FONT> </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" align="right">&nbsp;</TD>
    <TD width="3%" align="right">&nbsp;</TD>
    <TD width="2%" align="right">&nbsp;</TD>
  </TR>
  <TR align="center" valign=bottom>
    <TD rowspan="2" align="CENTER" nowrap><FONT size="1" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD colspan="4" nowrap>    <HR noshade size=1>      </TD>
    <TD width="3%" rowspan="2"><FONT face="Times New Roman, Times, serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" rowspan="2" align="right">&nbsp;</TD>
    <TD width="3%" rowspan="2" align="right">&nbsp;</TD>
    <TD width="2%" rowspan="2" align="right">&nbsp;</TD>
  </TR>
  <TR align="center" valign=bottom>
    <TD nowrap><B><FONT face="Times New Roman, Times, serif" size=1>Shares</FONT></B></TD>
    <TD width="3%"><font size="1">&nbsp;</font></TD>
    <TD colspan="2"><B><FONT face="Times New Roman, Times, serif" size=1>Amount</FONT></B></TD>
  </TR>
  <TR>
    <TD colspan="14"><HR noshade size=1></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="9%" align=right nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="9%" align=right nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="11%" align=right nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="13%" align=right nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="3%" align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="1%" align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="10%" align=right nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD width="2%" align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Balance, January 1, 2004</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>1</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1>$</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>3,431,818</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1>$</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Net income</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>2,221,604</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>2,221,604</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Dividends ($.03 per share)</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(75,187</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(75,187</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1>)</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Shares of common stock repurchased</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(5,823</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(197,150</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(197,150</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1>)</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Issuance of common stock in payment of<BR>
&nbsp;&nbsp;&nbsp;&nbsp; bonuses and fees</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>370</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>12,281</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>12,281</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Stock options exercised</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>7,345</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>122,814</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>122,814</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Net unrealized gain on investments</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>78,015</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>78,015</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD colspan=13><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Balance, March 31, 2004</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>2,505,815</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>61,841,289</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>3,509,833</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1>$</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>65,351,123</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=13><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Balance, December 31, 2004</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap 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;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Net income</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>1,580,494</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>1,580,494</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Dividends ($.04 per share)</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(102,717</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(102,717</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1>)</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Shares of common stock repurchased</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(67,295</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(2,058,747</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(2,058,747</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1>)</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Issuance of common stock in payment of<BR>
&nbsp;&nbsp;&nbsp;&nbsp; bonuses and fees</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>169</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>6,594</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>6,594</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Stock options exercised</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>147,965</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>2,193,204</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>2,193,204</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1>Net unrealized loss on investments</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(512,859</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;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1>(512,859</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1>
    </TD>
    <TD colspan=13><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD nowrap><FONT face="Times New Roman, Times, serif" size=1><B>Balance, March 31, 2005</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1><B>2,561,863</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1><B>1</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1><B>70,890,920</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1><B>2,722,319</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=1><B>$</B></FONT></TD>
    <TD nowrap align=right><FONT face="Times New Roman, Times, serif" size=1><B>73,613,240</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=1><B></B></FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
    <TD colspan=13><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE width="600" border="0" cellspacing="0" cellpadding="0">
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><I>See notes to Consolidated Financial Statements.</I></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>3</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" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><b><font size="2" face="Times New Roman, Times, serif"> Investors Title Company and Subsidiaries <br>
          <a name="a5"></a>Consolidated Statements of Cash Flows <br>
      <i>For the Three Months Ended March 31, 2005 and 2004<br>
      (Unaudited) </i></font></b></td>
  </tr>
</table>
<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>2005</FONT>
        <HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT>
        <HR NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating Activities:</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=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><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,580,494</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,221,604</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;Adjustments to reconcile net income to net cash<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>318,555</FONT></b></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>229,816</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization, net</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,173</FONT></b></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>9,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock in payment of bonuses and fees</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,594</FONT></b></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>12,281</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit for losses on premiums receivable</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></b></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>(110,000</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on disposals of property</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(18,800</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>&#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;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on sales of investments</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,894</FONT></b></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>(3,431</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for claims</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,899,005</FONT></b></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>1,844,379</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for deferred income taxes</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>137,095</FONT></b></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>319,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Changes in assets and liabilities:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables and other assets</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(54,065</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>863,963</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued liabilities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(520,936</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(1,794,336</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in commissions and reinsurance payables</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(119,024</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(335,292</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in current income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>190,639</FONT></b></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>496,402</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of claims, net of recoveries</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,643,005</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(1,375,379</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,804,619</FONT></b></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>2,378,507</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>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></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>Investing Activities:</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Purchases of available-for-sale securities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,053,851</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(7,958,134</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Purchases of short-term securities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(758,764</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(8,409,352</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Purchases of and net earnings (loss) from other investments</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(180,570</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(211,402</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proceeds from sales and maturities of available-for-sale securities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,410,716</FONT></b></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>11,625,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proceeds from sales of held-to-maturity securities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></b></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>168,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proceeds from short-term securities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,059,557</FONT></b></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>3,012,475</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proceeds from sales and distributions from other investments</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49,340</FONT></b></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>&#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;Purchases of property</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(244,301</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(94,322</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proceeds from sales of property</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,800</FONT></b></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>&#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;Net change in pending trades</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,029,570</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(725,564</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,724,643</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(2,593,299</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>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></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>Financing Activities:</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Repurchases of common stock, net</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,058,747</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(197,150</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Exercise of options</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,193,204</FONT></b></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>122,814</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;Dividends paid</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(102,717</FONT></b></TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>(75,187</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31,740</FONT></b></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>(149,523</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>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></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><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Increase (Decrease) in Cash and Cash Equivalents</FONT></b></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>111,716</FONT></b></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>(364,315</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and Cash Equivalents, Beginning of Year</FONT></b></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,726,443</FONT></b></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>5,125,356</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><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and Cash Equivalents, End of Period</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,838,159</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,761,041</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Supplemental Disclosures:</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash Paid During the Year for:</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes, net of refunds</FONT></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></b></TD>
    <TD ALIGN=RIGHT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 405,000</FONT></b></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 351,000</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>
  </TR>
</TABLE>
<TABLE width="600" border="0" cellspacing="0" cellpadding="0">
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><I>See notes to Consolidated Financial Statements.</I></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>4</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 align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>INVESTORS TITLE COMPANY<br>
    AND SUBSIDIARIES <br>
  </B><U><B><a name="a6"></a>Notes to Consolidated Financial Statements</B></U><B> <br>
  </B>March 31, 2005<B> <br>
  </B>(Unaudited)<B>  </B></FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
</TR>
<TR>
<TD>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 1 - Basis of Presentation</U></FONT></P>
<P align=left><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 face="Times New Roman, Times, Serif" size=2>Reference
should be made to the &#147;Notes to Consolidated Financial Statements&#148; of
Investors Title Company&#146;s
(&#147;the Company&#148;) Annual Report to Shareholders for the year ended December 31, 2004 for
a complete description of the Company&#146;s significant accounting policies. There were no material
changes in the significant accounting policies during the three months ended March 31, 2005.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&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><I>Principles of Consolidation </I>&#150; The accompanying unaudited consolidated financial statements include the accounts and operations
of Investors Title Company and its subsidiaries (Investors Title Insurance Company, Northeast Investors
Title Insurance Company, Investors Title Exchange Corporation, Investors Title Accommodation Corporation,
Investors Title Management Services, Inc., Investors Title Commercial Agency, LLC, Investors Capital
Management Company, and Investors Trust Company), and have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures
normally included in annual financial statements have been condensed or omitted. All intercompany
balances and transactions have been eliminated in consolidation. In the opinion of management, all
adjustments considered necessary for a fair presentation of the financial position,
results of operations and cash flows in the accompanying unaudited consolidated financial statements
have been included. All such adjustments are of a normal recurring nature. Operating results for
the quarter ended March 31, 2005 are not necessarily indicative of the results that may be expected
for the year ended December 31, 2005.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&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>For further information, refer to the consolidated financial statements and footnotes thereto included
in the Company&#146;s annual report on Form 10-K for the year ended December 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&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><I>Use of Estimates and Assumptions</I> &#150; The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates and assumptions used. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&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><I>Reclassification - </I>Certain 2004 amounts have been reclassified to conform to 2005 classifications. These reclassifications
had no effect on net income or stockholders&#146; equity as previously reported.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&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><I>Stock-Based Compensation -</I> &nbsp;The Company accounts for stock-based compensation based on the provisions of Accounting Principles
Board Opinion No. 25, <I>Accounting for Stock Issued to Employees </I>(&#147;APB No. 25&#148;), which states that, for fixed plans, no compensation expense is </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>5</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>recorded for stock options or other stock-based awards to employees that are granted with an exercise
price equal to or above the estimated fair value per share of the Company&#146;s common stock on
the grant date. In the event that stock options are granted with an exercise price below the estimated
fair value of the Company&#146;s common stock at the grant date, the difference between the fair
value of the Company&#146;s common stock and the exercise price of the stock option is recorded as
deferred compensation. Deferred compensation is amortized to compensation expense over the vesting
period of the stock option. The Company has adopted the disclosure requirements of Statement of Financial
Accounting Standards No. 123, <I>Accounting for Stock-Based Compensation (&#147;SFAS No. 123&#148;)</I>, and Statement of Financial Accounting Standards No. 148, <I>Accounting for Stock-Based Compensation &#150; Transition and Disclosure &#150; an Amendment to FASB
Statement No. 123, </I>which together require compensation expense to be disclosed based on the fair value of the options
granted at the date of the grant.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Had compensation cost for the Company&#146;s stock option plan been determined based on the fair value
at the grant dates for awards under the plan consistent with the method required by SFAS No. 123,
the Company&#146;s net income and diluted net income per common share would have been the pro forma
amounts indicated in the following table:</FONT></P></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 size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=5><font size="1" face="Times New Roman, Times, serif">For the Three Months Ended <br>
      March 31,</font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=5><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <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>2005</FONT></TH>
    <TH valign="middle"><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2 valign="middle"><FONT FACE="Times New Roman, Times, serif" SIZE=1>2004</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=5><HR NOSHADE SIZE=1></TD>
    <TD><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>Net income as reported</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=12% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,580,494</FONT></strong></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,221,604</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>Add back issuance of common stock in payment of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bonuses and fees, net of tax</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,352</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,105</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>Deduct - total stock-based employee<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation expense determined<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under fair value method for<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all awards, net of tax</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(40,633</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><strong>)</strong></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(45,720</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=5><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pro forma net income</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,544,213</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,183,989</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><FONT FACE="Times New Roman, Times, serif" SIZE=2>Net income per share:</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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic - as reported</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.62</FONT></strong></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.89</FONT></TD>
    <TD ALIGN=RIGHT><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic - pro forma</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.60</FONT></strong></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.87</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="7" 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted - as reported</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.60</FONT></strong></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font face="Times New Roman, Times, serif" size=2>$</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.84</FONT></TD>
    <TD ALIGN=RIGHT><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted - pro forma</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.59</FONT></strong></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 0.83</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&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>&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;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>Recently Issued Accounting Standards -&nbsp;</I> In December 2004, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of
Financial Accounting SFAS No. 123(R), which revises SFAS No. 123 and supersedes APB 25. SFAS No.
123(R) eliminates an entity&#146;s ability to account for share-based payments using APB 25 and requires
all such transactions be accounted for using a fair value based method. In addition, although it
does not require use of a binomial lattice model, SFAS No. 123(R) indicates that a binomial lattice
model may be more effective in valuing employee stock options than the Black-Scholes model, which
was primarily developed to value publicly traded options. In April 2005, the Securities and Exchange
Commission deferred the effective date of SFAS No. 123(R) from the first interim or annual period
beginning after June 15, 2005 to the next fiscal year beginning after June 15, 2005. SFAS No. 123(R)
is not expected to have a material impact on the Company&#146;s consolidated statements </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>6</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>of income or balance sheets. If the Company had included the cost of employee stock option compensation
in its consolidated financial statements, its net income in the first quarters of 2005 and 2004 would
have been lower by $36,281 and $37,615, respectively, using a Black-Scholes model. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Note 2 - Reserves for Claims</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
in the reserves for claims for the three months ended March 31, 2005 and the twelve months ended
December 31, 2004 were as follows:&nbsp;</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=1>March 31, 2005</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=1>December 31, 2004</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Balance, beginning of year</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=14% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 31,842,000</FONT></strong></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=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2> 30,031,000</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>Provision, charged to operations</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>1,899,005</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Payments of claims, net of recoveries</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>(1,643,005</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><strong>)</strong></FONT></TD>
    <TD ALIGN=RIGHT><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>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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>Ending balance</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, serif" SIZE=2> 32,098,000</FONT></strong></TD>
    <TD ALIGN=LEFT><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> 31,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></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>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=left><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
total reserve for all reported and unreported losses the Company incurred through March 31, 2005
is represented by the reserve for claims. The Company&#146;s reserves for unpaid losses and loss
adjustment expenses are established using estimated amounts required to settle claims for which notice
has been received (reported) and the amount estimated to be required to satisfy incurred claims of
policyholders which may be reported in the future. Despite the variability of such estimates, management
believes that the reserves are adequate to cover claim losses which might result from pending and
future claims for policies issued through March 31, 2005. The Company continually reviews and adjusts
its reserve estimates to reflect its loss experience and any new information that becomes available.
Adjustments resulting from such reviews may be significant.</FONT></P>
<P align=left><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;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 align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 3 - Comprehensive Income</U></FONT></P>
<P align=left><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;Total
comprehensive income for the three months ended March 31, 2005 and 2004 was $1,067,635 and $2,299,619,
respectively. Other comprehensive income is comprised solely of unrealized gains or losses on the
Company&#146;s available-for-sale securities. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 4 - Earnings Per Common Share</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;Employee
stock options are considered outstanding for the diluted earnings per common share calculation and
are computed using the treasury stock method. The total increase in the weighted average shares outstanding
related to these equivalent shares was 60,957 and 132,896 for the three months ended March 31, 2005
and 2004, respectively. Options to purchase 98,816 and 253,646 shares of common stock were outstanding
for the three months ended March 31, 2005 and 2004, respectively. Of the total options outstanding,
all options were included in the computation of diluted earnings per share for the three months ended
March 31, 2005 and 2004, </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>7</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>respectively because the options&#146; exercise prices were less than the average market price of the
common shares.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 5 &#150; Segment Information</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;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></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>
    <TD align="CENTER"><FONT face="Times New Roman, Times, serif" size=1><B>Three Months Ended<BR>
      March 31, 2005</B></FONT></TD>
    <TD align="CENTER"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Title<BR>
      Insurance</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Exchange<BR>
      Services</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>All<BR>
      Other</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Intersegment<BR>
      Eliminations</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Total</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <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>
    <TD colspan=2><HR noshade size=1></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="25"><FONT face="Times New Roman, Times, Serif" size=2><B>Operating revenues</B></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2><B>17,405,948</B></FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right width="9%"><FONT face="Times New Roman, Times, Serif" size=2><B>809,639</B></FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2><B>534,182</B></FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right width="9%"><FONT face="Times New Roman, Times, Serif" size=2><B>(162,061</B></FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2><B>18,587,708</B></FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD width="2%"><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><B>Investment income</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>698,406</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>3,452</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>62,420</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(11,513</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>752,765</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><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><B>Net realized loss on</B><BR>
          <B>&nbsp;&nbsp;&nbsp;&nbsp; sales of investments</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(10,894</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(10,894</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=18><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><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><B>Total revenues</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>18,093,460</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>813,091</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>596,602</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(173,574</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>19,329,579</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="28" align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Operating expenses</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>16,401,407</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>190,389</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>598,349</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(162,060</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>17,028,085</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><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><B>Income (loss) before</B><BR>
          <B>&nbsp;&nbsp;&nbsp;&nbsp; income taxes</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>1,692,053</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>622,702</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(1,747</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>(11,514</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B>)</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>2,301,494</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="28" align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Assets</B></FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>95,715,075</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>1,256,760</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>15,097,995</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>&#151;</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>$</B></FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>112,069,830</B></FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD align="CENTER">&nbsp;</TD>
    <TD align="CENTER">&nbsp;</TD>
    <TD align="CENTER" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="CENTER" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign=bottom>
    <TD align="CENTER"><FONT face="Times New Roman, Times, serif" size=1><B>Three Months Ended<BR>
      March 31, 2004</B></FONT></TD>
    <TD align="CENTER"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Title<BR>
      Insurance</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Exchange<BR>
      Services</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>All<BR>
      Other</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Intersegment<BR>
      Eliminations</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD align="CENTER" colspan=2><FONT face="Times New Roman, Times, serif" size=1><B>Total</B></FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan=2><HR noshade size=1>
    </TD>
    <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>
    <TD colspan=2><HR noshade size=1></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
    <TD colspan="2" align=right><HR noshade size=1></TD>
    <TD align=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><FONT face="Times New Roman, Times, serif" size=1>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="28"><FONT face="Times New Roman, Times, Serif" size=2>Operating revenues</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>17,215,837</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>479,894</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>401,709</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width="9%"><FONT face="Times New Roman, Times, Serif" size=2>(140,677</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>17,956,763</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD width="2%"><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</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>641,805</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>1,201</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>23,855</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>(10,486</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD><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>656,375</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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 realized gain on<BR>
&nbsp;&nbsp;&nbsp;&nbsp; sales of investments</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>3,431</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left></TD>
    <TD><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>3,431</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><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>Total revenues</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>17,861,073</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>481,095</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>425,564</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(151,163</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>18,616,569</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="28" align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating expenses</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>14,667,022</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>145,478</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>558,936</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><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>(140,678</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD><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>15,230,758</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=1>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><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>Income (loss) before<BR>
&nbsp;&nbsp;&nbsp;&nbsp; income taxes</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,194,051</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>335,617</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(133,372</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(10,485</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,385,811</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=bottom>
    <TD height="25" align=left><FONT face="Times New Roman, Times, Serif" size=2>Assets</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>88,415,497</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>857,484</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,471,417</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100,744,398</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan=18><HR noshade size=2>
    </TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><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>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating revenues represent net premiums written and other revenues.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 6 &#150; Retirement and Other Postretirement Benefit Plans</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 17, 2003, Investors Title Insurance Company
entered into employment agreements with key executives that provide for the continuation of certain
employee benefits upon retirement. The executive employee benefits include health insurance, dental
insurance, vision insurance and life insurance. The plan is unfunded. The following sets forth the
net periodic benefits cost for the executive benefits for the quarter ended March 31, 2005:</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>8</FONT></P>
<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>For the Three <br>
      Months Ended <br>
      March 31, 2005 </FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For the Three Months Ended <br>
      March 31, 2004 </FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=5 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <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;Service
        cost at beginning of quarter</FONT></p>
    </TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=13% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,592</FONT></strong></TD>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=13% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,513</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>
      <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;Interest cost for the
        quarter</FONT></p>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,419</FONT></strong></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>3,875</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <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;Amortization of unrecognized
        prior service cost</FONT></p>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,096</FONT></strong></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>8,521</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>
      <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;Amortization of unrecognized
        gains or losses</FONT></p>
    </TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></strong></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>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=5 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefits costs</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 12,107</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15,909</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=5 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></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 align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Note 7 &#150; Commitments and Contingencies</U></FONT></P>
<P align=left><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;&nbsp;&nbsp;&nbsp;The
Company and its subsidiaries are involved in various&nbsp;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, results
of operations or liquidity.</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>9</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 valign="top">
  <TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a7"></a>Item 2.</B></FONT></TD>
  <TD><FONT face="Times New Roman, Times, Serif" size=2><B><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</U></B></FONT></TD>
</TR>
<TR>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
<TD colspan="2">
<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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The
Company&#146;s 2004 Annual Report on Form 10-K and 2004 Annual Report to Shareholders should be read
in conjunction with the following discussion since they contain important information for evaluating
the Company&#146;s operating results and financial condition.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Overview</U></FONT></P></TD></TR>
<TR>
<TD colspan="2" 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>&nbsp;&nbsp;&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>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>Title Insurance:</I> &nbsp;Investors Title Company (the &#147;Company&#148;) engages primarily in two segments of business.
Its main business activity is the issuance of title insurance through two subsidiaries, Investors
Title Insurance Company (&#147;ITIC&#148;) and Northeast Investors Title Insurance Company (&#147;NE-ITIC&#148;)
and settlement-related services. Through ITIC and NE-ITIC, the Company underwrites land title insurance
for owners and mortgagees as a primary insurer and as a reinsurer for other title insurance companies.
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></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&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 latent
defect in the title or a mistake or omission 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></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 align=left><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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></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 branch offices in South Carolina, Michigan and Nebraska. 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.
NE-ITIC currently operates through agents in the State of New York.</FONT></P>
<P align=left><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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s overall level of premiums written and profitability in the land title insurance
industry is affected by a number of factors, including the level of interest rates, 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. </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>10</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=left><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;&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 align=left><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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>First quarter results continued to benefit from low interest rates. However, any substantial increases
in interest rates will likely have a negative impact on mortgage originations. Operating results
for the quarter ended March 31, 2005, therefore, should not be viewed as indicative of the Company&#146;s
future operating results. </FONT></P>
<P align=left><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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Company continues to monitor and strives to manage operating expenses to offset the cyclical nature
of the real estate market and with knowledge of the potential for 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>&nbsp;&nbsp;&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><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;&nbsp;&nbsp;&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 the Company&#146;s 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 potentially have a material negative
impact on the exchange segment&#146;s revenue and profitability.</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;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>New Services:</I> &nbsp;Investors Trust Company (&#147;INTC&#148;), wholly owned by the Company, was chartered on February
17, 2004 by the North Carolina Commissioner of Banks. INTC provides investment management and trust
services to individuals, companies, banks and trusts. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><U>Critical Accounting Policies</U></FONT></P>
<P align=left><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 March 31, 2005, the Company made no material changes in its critical accounting
policies as previously disclosed in Management&#146;s Discussion and Analysis in the Company&#146;s
Annual Report on Form 10-K for the year ended December 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Results of Operations</U></FONT></P>
<P align=left><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
the quarter ended March 31, 2005, net premiums written increased 0.6% to $17,083,119, investment
income increased 14.7% to $752,765, total revenues increased 3.8% to $19,329,579 and net income decreased
28.9% to $1,580,494, all compared with the same quarter in </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>11</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=left><FONT face="Times New Roman, Times, Serif" size=2>2004. &nbsp;Net
income per basic and diluted common share decreased 30.3% and 28.6%, respectively, to $.62
and $.60, respectively, as compared with the same prior year period. </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>Operating revenues: </I>Operating revenues include premiums written and reinsurance assumed, net of reinsurance ceded (net
premiums written) plus other income as well as gains and losses on the disposal of fixed assets.
Investment income and realized gains/losses are not included in operating revenues. </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;According
to the Freddie Mac Weekly Mortgage Rate Survey, the quarterly average 30-year fixed mortgage interest
rates in the United States increased to an average of 5.76% for the quarter ended March 31, 2005,
compared with 5.60% for the quarter ended March 31, 2004. The total number of policies and commitments
issued declined in the first quarter of 2005 to 61,997, a decrease of 13.8% compared with 71,896
policies and commitments issued in the same period in 2004. Although net premiums increased slightly,
volume declined due to the slowdown in refinance activity, which typically has lower premiums per
transaction compared with other rates. </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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
is a schedule of premiums written for the three months ended March 31, 2005 and 2004 in all states
in which the Company&#146;s two insurance subsidiaries, ITIC and NE-ITIC, currently underwrite insurance:</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2005</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2004</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR>
    <TD></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 width="15%" ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Alabama</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=13% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 350,730</FONT></strong></TD>
    <TD WIDTH=5% ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=13% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 328,316</FONT></TD>
    <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Florida</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>309,609</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>355,604</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Illinois</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>212,780</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>263,728</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kentucky</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>438,967</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>400,030</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Maryland</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>372,646</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>334,860</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Michigan</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,111,407</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,222,800</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Minnesota</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>268,800</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>246,360</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mississippi</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>263,351</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>246,275</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nebraska</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>205,318</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>218,924</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>New York</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>586,005</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>816,340</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>North Carolina</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,734,940</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,588,636</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pennsylvania</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>378,825</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>574,826</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>South Carolina</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,047,893</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,773,897</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tennessee</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>567,848</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>710,915</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Virginia</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,742,852</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,448,438</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">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>West Virginia</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>429,554</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>374,928</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other States</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>186,627</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>146,405</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Direct Premiums</FONT></strong></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,208,152</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,051,282</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">&nbsp;</font></TD>
    <TD height="22" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reinsurance Assumed</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,046</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><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 size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reinsurance Ceded</FONT></TD>
    <TD ALIGN=RIGHT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(139,079</FONT></strong></TD>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></strong></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(69,526</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2">&nbsp;</font></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="2">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Net Premiums</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,083,119</FONT></strong></TD>
    <TD ALIGN=LEFT><font size="2">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16,981,756</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></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 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 align=left><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 a breakdown of branch and agency premiums for the quarter ended March 31:</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>12</FONT></P>
<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 size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>2005</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>%</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>2004</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>%</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </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>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <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 VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Branch</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=12% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,225,990</FONT></strong></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=6% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></strong></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,459,411</FONT></TD>
    <TD WIDTH=5% 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>44</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Agency</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,857,129</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,522,345</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR>
    <TD></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>
    <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></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,083,119</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16,981,756</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR>
    <TD></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>
    <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></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 align=left><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;Net
premiums written from branch operations decreased 3% and increased 7% for the quarters ended March
31, 2005 and 2004, respectively, as compared with the same period in the prior year. Of the Company&#146;s
30 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. </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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency
net premiums written increased 4% and decreased 25% for the three months ended March 31, 2005 and
2004, respectively, as compared with the same period in the prior year. </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 align=left><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;Operating
revenues from the Company&#146;s two subsidiaries that provide tax-deferred exchange services (ITEC
and ITAC) increased 68.7% compared with the first quarter of 2004. The increase in 2005 was primarily
due to an increased demand for qualified intermediary services and an increase in fee income. The
Company has focused on increased marketing and education efforts.</FONT></P>
<P align=left><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;Other
revenues include management and closing fee income and investment management fee income. Other revenues
increased 40% in 2005 compared with the first quarter of the prior year, partially due to the formation
of the Investors Trust Company. </FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses:&nbsp;</I> Total operating expenses increased 11.8% for the three-month period ended March 31, 2005 compared
with the same period in 2004. This increase was due primarily to an increase in salaries, employee
benefits and payroll taxes and an increase in office occupancy and operations. A summary by segment
of the Company&#146;s operating expenses is as follows for the three months ended March 31:</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>2005</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2 align="center"><FONT FACE="Times New Roman, Times, serif" SIZE=1>%</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>2004</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>%</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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>Title insurance</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD WIDTH=12% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 16,247,644</FONT></strong></TD>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=6% ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>95</FONT></strong></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 14,526,343</FONT></TD>
    <TD WIDTH=5% 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>95</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>Exchange services</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>183,105</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>145,478</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All other</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>597,336</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>558,937</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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</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>
    <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;</FONT></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,028,085</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15,230,758</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>100</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>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></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 align=left><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;Commissions
as a percentage of agency premiums remained relatively stable in the first quarter 2005 when compared
with the quarter ended March 31, 2004. </FONT></P>
<P align=left><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
provision for claims as a percentage of net premiums written was 11.1% for the three months ended
March 31, 2005, versus 10.9% for the same period in 2004. </FONT></P>
<P align=left><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;On
a consolidated basis, salaries, employee benefits and payroll taxes as a percentage of total revenues
were 27.8% and 20.7% for the three months ended March 31, 2005 and 2004, respectively. The increase
in salaries, employee benefits and payroll taxes was partially attributed to compensation expense
totaling $598,484 resulting from shares purchased by ITIC pursuant to the exercise
of nonqualified stock options by three related parties. In addition, salaries and employee
benefits increased compared with the prior quarter due to </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>13</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=left><FONT face="Times New Roman, Times, Serif" size=2>increases in expenses associated with
executive contracts, merit increases, the addition of staff and increases in health insurance
costs. The title insurance segment&#146;s total salaries, employee benefits
and payroll taxes accounted for 90% and 89% of the total consolidated amount for the three months
ended March 31, 2005 and 2004, respectively.</FONT></P>
<P align=left><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;Overall
office occupancy and operations as a percentage of total revenues was 7.8% and 6.5% for the three
months ended March 31, 2005 and 2004, respectively. The increase in office occupancy and operations
expense was due to an increase in various items, including depreciation expense, contract labor costs
for infrastructure upgrades, office rent, printing and office supplies. </FONT></P>
<P align=left><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>Income Taxes:&nbsp;</I> The provision for income taxes was 31% and 34% of income before income taxes for the quarters ended
March 31, 2005 and 2004, respectively. The decrease in the effective rate for the quarter ended March
31, 2005 was primarily due to an increase in tax-exempt investment income relative to total taxable
income.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Liquidity and Capital Resources</U></FONT></P>
<P align=left><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>Cash flows: </I>Net cash provided by operating activities for the three months ended March 31, 2005, amounted to $1,804,619
compared with $2,378,507 for the same three-month period of 2004. The decrease is primarily the result
of an increase in accounts receivable compared with the first quarter of 2004 and the reduction in
net income, offset by the acceleration of accounts payable and accrued liabilities compared with
the first quarter of 2004.</FONT></P>
<P align=left><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>Payment of dividends: </I>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 the Company&#146;s operating needs.</FONT></P>
<P align=left><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>Liquidity:&nbsp;</I> Management believes that funds generated from operations will enable the Company to adequately meet
its cash needs and is unaware of any trend or occurrence that is likely to result in adverse liquidity
changes. In addition to operational liquidity, the Company maintains a high degree of liquidity within
its investment portfolio in the form of short-term investments and other readily marketable securities.</FONT></P>
<P align=left><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></I><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 $800,000 in connection
with these projects and additional purchases of electronic data processing equipment.</FONT></P>
<P align=left><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></I><I>Off-Balance Sheet Arrangements and Contractual Obligations: </I>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 non-cancelable operating leases, payments due under
various agreements with third-party service providers, and obligations pursuant to certain executive
employment agreements. </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>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>
<P align=left><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></I>The
following table summarizes the Company&#146;s future estimated cash payments under existing contractual
obligations at March 31, 2005, including payments due by period:</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>
    <TD valign="top"><u><font size="2" face="Times New Roman, Times, serif">Contractual Obligations </font></u></TD>
    <TD height="25" COLSPAN=14 ALIGN=center valign="top"><u><font size="2" face="Times New Roman, Times, serif">Payments due by period </font></u></TD>
    <TD></TD>
  </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>Total</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Less than 1<br>
      year </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>1 - 3 years</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>3 - 5 years</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>More than 5<br>
      years </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><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>Operating Lease Obligations</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,024,312</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 502,271</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>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 517,097</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,944</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> &#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>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>725,935</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>526,669</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>184,266</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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>
      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>1,630,000</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>&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>1,630,000</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>
    <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 height="25" 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> 3,380,247</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>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,028,940</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 701,363</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 19,944</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,630,000</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>
    <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 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 align=left><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
total reserve for all reported and unreported losses the Company incurred through March 31, 2005
is represented by the reserve for claims. Information regarding the claims reserve can be found in
Note 2 to the consolidated financial statements of this Form 10-Q. Further information on contractual
obligations related to the reserves for claims can be found in the Company&#146;s Annual Report on
Form 10-K for the year ended December 31, 2004 as filed with the Securities and Exchange Commission.</FONT></P>
<P align=left><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>Equity Investments</I>: The Company&#146;s equity investments are in public companies whose security prices are subject to
volatility. Should the fair value of these investments fall below the Company&#146;s cost bases and
the financial condition or prospects of these companies deteriorate, the Company may determine in
a future period that this decline in fair value is other than temporary, requiring that an impairment
loss be recognized.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Safe Harbor Statement</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;This
Quarterly Report on Form 10-Q, 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 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 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 </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>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 effect on the Company&#146;s business; (5) the Company&#146;s ability to
develop and offer products and services that meet changing industry standards in a timely and cost-effective
manner 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,&nbsp;surplus
and reserves and restrict the amount of dividends that the insurance subsidiaries may pay to the
Company without prior regulatory approval. 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>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a8"></a>Item 3. &nbsp;<U>Quantitative and Qualitative Disclosures About Market Risk</U></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
material changes in the Company&#146;s market risk or market strategy occurred during the current
period. A detailed discussion of market risk is provided in the Company&#146;s 2004 Annual Report
on Form 10-K for the period ended December 31, 2004.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B><a name="a9"></a>Item 4.&nbsp; <U>Controls and Procedures</U></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
March 31, 2005. 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 first quarter 2005, there was no change in the Company&#146;s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company&#146;s
internal control over financial reporting. </FONT></P></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 height="25">
<P><FONT face="Times New Roman, Times, Serif" size=2><B>PART II. &nbsp; OTHER INFORMATION</B></FONT></P>
</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><B><a name="a10"></a>Item 2. </B></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><u>Unregistered Sales of Equity and Use of Proceeds</u></B></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>(a)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>None</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>(b)&nbsp;</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>None</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following table provides information about purchases by the Company (and all affiliated purchasers)
during the quarter ended March 31, 2005 of equity securities that are registered by the Company pursuant
to Section 12 of the Exchange Act:&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>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>Issuer Purchases of Equity Securities</B></U></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>Period</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1>Total Number of Shares Purchased </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Average Price <br>
      Paid per Share </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH><font face="Times New Roman, Times, serif" size=1> Total Number of Shares Purchased as<br>
      Part of Publicly Announced Plan </font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH nowrap><font face="Times New Roman, Times, serif" size=1> Maximum <br>
      Number of Shares <br>
      that May Yet Be<br>
      Purchased Under <br>
      the
    Plan </font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><HR align="left" width="35"  SIZE=1 NOSHADE></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><HR NOSHADE  SIZE=1></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE  SIZE=1></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><HR NOSHADE  SIZE=1></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><HR NOSHADE  SIZE=1></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>Beginning of</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=15% 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=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=15% 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><u>period</u></FONT></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=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>494,872</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>01/01/05 &#150;</FONT></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=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>01/31/05</FONT></u></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59,591</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> $&nbsp;39</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.71</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59,591</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>435,281</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/01/05 &#150;</FONT></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=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/28/05</FONT></u></TD>
    <TD ALIGN=RIGHT>&nbsp;</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>N/A</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>435,281</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>03/01/05 &#150;</FONT></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=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>03/31/05</FONT></u></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,704</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> $&nbsp;37</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.76</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,704</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>427,577</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE  SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE  SIZE=1></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>Total:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>67,295</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong></strong></TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2> $&nbsp;39.49</FONT></strong></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><font face="Times New Roman, Times, Serif" size=2>67,295</font></strong></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>427,577</FONT></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<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 March 31, 2005, ITIC purchased an aggregate of 67,295 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
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="a11"></a>Item 6.&nbsp;&nbsp; <U>Exhibits </U></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 width=24></TD>
<TD vAlign=top width=72><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></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=72><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></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=72><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></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 vAlign=top width=24>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><a name="a12"></a>SIGNATURES</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 align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities
and Exchange Act of 1934, the registrant has duly caused this report to be signed 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>
    <td width="48%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><FONT face="Times New Roman, Times, serif" size=2>INVESTORS TITLE COMPANY</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="5%"><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>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>By:</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2> /s/ James A. Fine, Jr. </FONT></td>
  </tr>
  <tr>
    <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><hr align="left" width="115" size="1" noshade></td>
  </tr>
  <tr>
    <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 face="Times New Roman, Times, serif" size=2>James A. Fine, Jr.<br>
        President, Principal Financial Officer and<br>
      Principal Accounting Officer&nbsp; </FONT></td>
  </tr>
  <tr>
    <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>
    <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>
    <td><FONT face="Times New Roman, Times, serif" size=2>Dated: May 12, 2005</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>18</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>d63822_ex31-1.htm
<DESCRIPTION>INVESTORS TITLE EXHIBIT 31.1
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font face="Times New Roman, Times, Serif" size=2><u><b>Exhibit 31(i)</b></u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font face="Times New Roman, Times, Serif" size=2><b>Certification</b></font></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P><FONT face="Times New Roman, Times, Serif" size=2>I, J. Allen Fine, 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></font></font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>I have reviewed this quarterly report on Form 10-Q of Investors Title Company;</font></TD>
</TR>
<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 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>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>Date: May 12, 2005</font></td>
  </tr>
  <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>/s/ J. Allen Fine</font></td>
  </tr>
  <tr>
    <td><hr align="left" width="85" size="1" noshade></td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>J. Allen Fine</font></td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>Chief Executive Officer</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>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>d63822_ex31-2.htm
<DESCRIPTION>INVESTORS TITLE EXHIBIT 31.2
<TEXT>
<html>
<head>
<title></title>
</head>

<body>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font face="Times New Roman, Times, Serif" size=2><b><u>Exhibit 31(ii)</u></b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><font face="Times New Roman, Times, Serif" size=2><b>Certification</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD><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></font></font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>I have reviewed this quarterly report on Form 10-Q of Investors Title Company;</font></TD>
  </TR>
  <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 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>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>Date: May 12, 2005</font></td>
  </tr>
  <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>/s/ James A. Fine, Jr.</font></td>
  </tr>
  <tr>
    <td><hr align="left" width="110" size="1" noshade></td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>James A. Fine, Jr.</font></td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, serif" size=2>Chief Financial Officer</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>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>d63822_ex32.htm
<DESCRIPTION>INVESTORS TITLE EXHIBIT 32
<TEXT>
<html>
<head>
<title></title>
</head>

<body>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font face="Times New Roman, Times, Serif" size=2><u><b>Exhibit 32</b></u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD><P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Certification<br>
        Pursuant to 18 U.S.C. Section 1350</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;The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></P></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="40%"><font face="Times New Roman, Times, serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;May 12, 2005</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>/s/ J. Allen Fine&nbsp;</font></td>
  </tr>
  <tr>
    <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><hr align="left" width="150" size="1" noshade></td>
  </tr>
  <tr>
    <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 face="Times New Roman, Times, serif" size=2>J. Allen Fine<br>
    Chief Executive Officer    </font></td>
  </tr>
  <tr>
    <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>
    <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>
    <td><font face="Times New Roman, Times, serif" size=2>Dated:&nbsp;&nbsp;&nbsp;&nbsp;May 12, 2005</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>/s/ James A. Fine, Jr.</font></td>
  </tr>
  <tr>
    <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><hr align="left" width="150" size="1" noshade></td>
  </tr>
  <tr>
    <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 face="Times New Roman, Times, serif" size=2>James A. Fine, Jr.<br>
    Chief Financial Officer    </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>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
