In 1999, the PA Bankers Services Corporation (Services Corp.) and Investors Title Insurance Company (Investors Title) joined forces to deliver a multi-bank-owned title insurance program. This program was designed to generate non-interest fee income for participating owner financial institutions. Since that time, these Pennsylvania owner institutions have written over $45 million in title insurance premiums and have distributed over $12.6 million in dividends. Both Pennsylvania agencies were operationally profitable within eight months and returned capital to the original owners within 12-18 months.
Why should my financial institution get involved in the title insurance business through this program?
- Significant fee income opportunity
- Natural extension of real estate lending
- Ability to influence and improve service for the bank and its clients
- Better coverage and claims resolution
- Long-track record for impressive profits and return on investment (ROI) for financial institution owners
- Model capitalizes on economies-of-scales and ensures long-term growth
Why Investors Title Insurance Company?
Investors Title has 45 years of experience working with financial institutions. Investors Title expanded its bank-owned agency program in the early 1990s. Since then, total sales have surpassed $640 million, resulting in commissions for multi-bank agency owners of more than $180 million.
Additionally, its underwriter boasts excellent financial stability ratings, including an “A” rating from A.M. Best Company, reflecting the strength of its financial resources and the soundness of its risk management practices.
Why a multi-owned title insurance agency?
By coming together on a regional basis to form multi-bank-owned agencies, financial institutions are able to better mitigate competitive pressures and add a new level of service through involvement in this distribution channel. By processing accounts for multiple banks, the agency can gain economies-of-scale in operations, reduce incremental production costs per policy processed, and increase the net profit. With the help of the Services Corp., Pennsylvania financial institutions are among the nation’s leaders in establishing their own title insurance agencies.
Currently, there are two multi-bank-owned agencies within the state underwritten by Investors Title Insurance Company, including Bankers Settlement Services Capital Region, LLC in Harrisburg and Bankers Settlement Services Southwest Pennsylvania, LLC in Hollidaysburg.
Management oversight of the agencies is provided by Investors Title Management Services. Outsourcing the agency’s management allows financial institutions to support the agency with referrals without having to perform the administrative and operational oversight of the agency.
Learn more about the program
The Services Corp. partners with Investors Title, which underwrites for 34 agencies in 13 states, in its national affiliated agency program representing more than 400 financial institution charters, real estate industry companies and other financial affiliates. In addition, Investors Title has a 27-branch office network in North Carolina, a 400+ agent network in the southeast regions and a growing number of agents in Texas. Nationally, Investors Title is the fifth largest family of title insurance companies based on policyholder surplus (Demotech Performance of Title Insurance Companies, 2016 Edition).
If your bank is interested in earning additional fee income from title insurance, please contact Wayne Whipple, (717) 255-6925 or firstname.lastname@example.org, or Karen Barnett, (419) 577-5900 or email@example.com.