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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

|X|	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2004

OR

|_|	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________ to

Commission File Number:  0-11774

INVESTORS TITLE COMPANY
(Exact name of registrant as specified in its charter)

North Carolina		56-1110199
(State of Incorporation)		(I.R.S. Employer Identification No.)
121 North Columbia Street, Chapel Hill, North Carolina 27514
(Address of Principal Executive Offices)  (Zip Code)
(919) 968-2200
(Registrant’s Telephone Number Including Area Code)

          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.   Yes   |X|     No     

          Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes |_|     No |X|

          As of June 30, 2004, there were 2,855,744 outstanding shares of common stock of Investors Title Company, including 354,380 shares held by Investors Title Insurance Company, a wholly owned subsidiary of Investors Title Company.

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INVESTORS TITLE COMPANY
AND SUBSIDIARIES

INDEX

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of June 30, 2004 and December 31, 2003	1
	Consolidated Statements of Income For the Three and Six Months Ended June 30, 2004 and 2003	2
	Consolidated Statements of Stockholders’ Equity  For the Six Months Ended June 30, 2004 and 2003	3
	Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2004 and 2003	4
	Notes to Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17
PART II.	OTHER INFORMATION
Item 2.	Changes in Securities, Use of Proceeds & Issuer Purchases of Equity Securities	18
Item 4.	Submission of Matters to a Vote of Security Holders	19
Item 6.	Exhibits and Reports on Form 8-K	20
SIGNATURE		21

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PART I.  FINANCIAL INFORMATION

Item 1.    Financial Statements

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2004 and December 31, 2003

					June 30, 2004			December 31, 2003
					(Unaudited)			(Audited)
Assets
	Cash and cash equivalents				$	5,013,645		$	5,125,356
	Investments in securities:
		Fixed maturities:
			Held-to-maturity, at amortized cost			3,341,240			3,526,030
			Available-for-sale, at fair value			71,188,047			60,803,807
		Equity securities, at fair value				6,628,712			14,556,785
		Other investments				1,280,494			955,561
			Total investments			82,438,493			79,842,183
	Premiums receivable, less allowance for doubtful accounts of $2,360,000 and $2,474,000 for 2004 and 2003, respectively					7,995,639			8,031,803
	Accrued interest and dividends					679,458			667,147
	Prepaid expenses and other assets					1,488,550			934,345
	Property acquired in settlement of claims					286,517			286,517
	Property, net					4,143,845			4,099,243
	Deferred income taxes, net					1,172,598			1,485,217
Total Assets					$	103,218,745		$	100,471,811
Liabilities and Stockholders’ Equity
Liabilities:
	Reserves for claims (Note 2)				$	30,476,000		$	30,031,000
	Accounts payable and accrued liabilities					4,653,737			5,782,470
	Commissions and reinsurance payables					489,598			726,191
	Premium taxes payable					—			461,436
	Current income taxes payable					356,278			281,968
		Total liabilities				35,975,613			37,283,065
Commitments and Contingencies (Note 6)
Stockholders’ Equity:
	Class A Junior Participating preferred stock (shares authorized 100,000; no shares issued)					—			—
	Common stock-no par value (shares authorized 10,000,000; 2,501,364 and 2,503,923 shares issued and outstanding 2004 and 2003, respectively, excluding 354,380 and 351,821 shares 2004 and 2003, respectively, of common stock held by the Company’s subsidiary)					1			1
	Retained earnings					64,435,785			59,756,927
	Accumulated other comprehensive income, net of deferred taxes of $1,447,096 and $1,768,477 for 2004 and 2003, respectively (Note 3)					2,807,346			3,431,818
		Total stockholders’ equity				67,243,132			63,188,746
Total Liabilities and Stockholders’ Equity					$	103,218,745		$	100,471,811

See notes to consolidated financial statements.

1

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Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three and Six Months Ended June 30, 2004 and 2003
(Unaudited)

					For The Three Months Ended June 30						For The Six Months Ended June 30
					2004			2003			2004			2003
Revenues:
	Underwriting income:
		Premiums written			$	19,743,434		$	23,415,757		$	36,794,716		$	43,180,931
		Less - premiums for reinsurance ceded				93,782			93,128			163,308			190,317
			Net premiums written			19,649,652			23,322,629			36,631,408			42,990,614
	Investment income - interest and dividends					691,996			679,857			1,365,322			1,354,435
	Net realized gain on sales of investments					16,956			41,867			20,387			64,914
	Exchange services revenue (Note 5)					542,304			389,812			1,022,198			490,901
	Other					580,579			745,478			1,058,741			1,307,222
			Total			21,481,487			25,179,643			40,098,056			46,208,086
Operating Expenses:
	Commissions to agents					7,913,200			11,462,988			14,911,795			20,855,778
	Provision for claims (Note 2)					2,185,024			2,687,693			4,029,403			4,770,731
	Salaries, employee benefits and payroll taxes (Note 6)					4,328,260			3,708,942			8,176,165			7,255,999
	Office occupancy and operations					1,322,957			1,365,677			2,533,255			2,462,793
	Business development					523,523			402,204			876,937			783,156
	Taxes, other than payroll and income					97,940			121,159			299,054			175,282
	Premium and retaliatory taxes					389,391			462,819			722,395			884,105
	Professional fees					408,871			250,795			819,546			458,139
	Other					5,133			147,914			36,507			199,845
			Total			17,174,299			20,610,191			32,405,057			37,845,828
Income Before Income Taxes						4,307,188			4,569,452			7,692,999			8,362,258
Provision For Income Taxes						1,426,793			1,482,000			2,591,000			2,666,245
Net Income					$	2,880,395		$	3,087,452		$	5,101,999		$	5,696,013
Basic Earnings Per Common Share (Note 4)					$	1.15		$	1.24		$	2.04		$	2.27
Weighted Average Shares Outstanding - Basic (Note 4)						2,502,807			2,494,036			2,504,088			2,503,773