NET INCOME A summary by segment of the Company’ s net income is as follows:  On a consolidated basis, the Company reported a decrease in net income of 29% and 19% in  2000 and 1999, respectively and an increase in net income of 20.5% in 1998. The decreases in  2000 and 1999 were primarily due to decreases in net premiums written of 14% and 3.4%,  partially offset by increases in net income of the exchange services segment and increases in  investment income. The increase in 1998 was primarily attributable to increased revenues and  improved operating efficiencies resulting from expense control procedures.  $^{ }$Title Insurance:  Net income for the title insurance segment decreased 37.5%, 22.1% and  increased 16.8% in 2000, 1999 and 1998, respectively. Decreases in net premiums written,  coupled with the fixed nature of certain operating expenses contributed to the decreases in net  income for 2000 and 1999.  $^{ }$Exchange Services:  The exchange services segment saw net income increases of 51.3%, 8.9%  and 21.8% in 2000, 1999 and 1998, respectively. The increased marketing efforts of ITEC' s and  ITAC' s services contributed to the growth in net income.  Cash flows provided by operating activities were $7,135,956, $7,738,524 and $8,887,438 in  2000, 1999 and 1998, respectively. The decrease in 2000 is primarily the result of the decrease in  net income compared with 1999. As of December 31, 2000, 1999 and 1998, approximately  $36,792,000, $33,322,000 and $31,219,000 respectively, of the consolidated stockholders'  equity  represent net assets of the Company' s subsidiaries that cannot be transferred in the form of  dividends, loans or advances to the parent company under statutory regulations without prior  insurance department approval. The parent company' s ability to pay dividends and operating  expenses is dependent on funds received from the insurance subsidiaries. The Company believes  amounts available for transfer from the insurance subsidiaries are adequate to meet the parent  company' s operating needs.  On December 9, 1996, the Board of Directors approved the repurchase by the Company of up to  150,000 shares of the Company' s common stock from time to time at prevailing market prices. A  portion of the repurchases is to avoid dilution to existing shareholders as a result of issuances of  stock in connection with stock options and stock bonuses. Pursuant to this approval, the  Company repurchased all 150,000 shares at an average price of $19.37 per share including 6,211  shares purchased at an average purchase price of $17.58 during 2000, 99,645 shares at an  average purchase price of $19.05 per share during 1999 and 22,010 shares at an average  15 © Investors Title Company  $^{ }$LIQUIDITY AND CAPITAL RESOURCES 2000 Title Insurance $ 2,434,088 Exchange Services 514,921 All Other 191,454 $ 3,140,463 1999 77.5% $ 3,894,681 16.4% 340 265 6.1% 155 450 100.0% $ 4,420,394 1995 66.1% $ 4,999,099 7.2% 312,578 4.2% 147 832 100.0% $ 5,459,509 91.6% 5,7% 2.7% 100.0%