The Kentucky Bankers Association and its wholly owned subsidiary, KBA Services, Inc. (KBAS), are offering Kentucky banks an excellent opportunity to participate in title insurance referrals. In the coming years, delivery channels for these products will evolve rapidly, and the KBA is committed to helping our members enter and engage in these markets. We aim to help you capitalize on this exciting opportunity for increased profits, all without the challenges of managing the agency's administrative tasks.

Title Insurance Overview

Title insurance is a highly profitable source of fee income when it is structured and organized effectively. The Kentucky Bankers Association (KBA) and KBA Services have partnered with Investors Title Insurance Company, based in Chapel Hill, North Carolina. With over fifty years of experience in collaborating with lender-owned title agencies, Investors Title Insurance Company currently works with 28 multi-owned agencies across several states, including Illinois, Indiana, Kentucky, Michigan, Nebraska, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.

Multi-owned agencies are typically owned by 10 to 25 banks and are structured as limited liability companies. Banks are offered ownership based on their asset size and loan volume compared with peers investing in the same agency. Generally, a bank's ownership stake in an agency ranges from 2% to 18%. The total startup capital required for these agencies has varied from $150,000 to $400,000. Therefore, with a 15% ownership stake, each participating bank's initial capital investment would be between $22,500 and $60,000. Historically, new agencies have achieved cash-basis profitability within the first year of operation. Within the first 18-24 months, owners typically recoup their initial capital, and dividends in the following year often double the original investment.""

Affiliated Agency Program
National Market