CHICAGO, Oct. 27, 2016 /PRNewswire/ -- Old Republic
International Corporation (NYSE: ORI) today reported improved
consolidated results for the latest quarter and year-to-date
periods. Pretax operating earnings rose 9.4 and 5.7 percent in the
third quarter and first nine months, respectively, while net
operating income per share for these respective periods was up 5.7
and 5.1 percent. In each of these periods Old Republic's General
Insurance segment posted lower operating earnings due to lessened
underwriting profitability, most pronouncedly in this year's third
quarter. The better performances registered by Title Insurance and
the RFIG Run-Off segment, however, more than offset the lower
general insurance results. As the table immediately below
indicates, realized net investment gains enhanced pretax and net
income to different extents in each of the respective periods of
2016 and 2015.
|
Financial
Highlights (a)
|
|
|
|
Quarters
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
$
|
836.5
|
|
$
|
855.4
|
|
$
|
2,507.1
|
|
$
|
2,468.5
|
|
|
Title
insurance
|
|
597.7
|
|
|
575.9
|
|
|
1,615.2
|
|
|
1,523.7
|
|
|
Corporate and
other
|
|
8.1
|
|
|
10.5
|
|
|
22.7
|
|
|
27.1
|
|
|
Subtotal
|
|
1,442.4
|
|
|
1,442.0
|
|
|
4,145.0
|
|
|
4,019.5
|
|
|
RFIG run-off
business
|
|
46.2
|
|
|
62.2
|
|
|
148.5
|
|
|
189.4
|
|
|
Total
|
$
|
1,488.7
|
|
$
|
1,504.2
|
|
$
|
4,293.6
|
|
$
|
4,208.9
|
|
|
Pretax operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
$
|
75.9
|
|
$
|
97.0
|
|
$
|
243.1
|
|
$
|
264.1
|
|
|
Title
insurance
|
|
58.5
|
|
|
55.0
|
|
|
124.5
|
|
|
118.7
|
|
|
Corporate and
other
|
|
3.9
|
|
|
3.7
|
|
|
8.8
|
|
|
7.9
|
|
|
Subtotal
|
|
138.3
|
|
|
155.8
|
|
|
376.6
|
|
|
390.8
|
|
|
RFIG run-off
business
|
|
18.4
|
|
|
(12.5)
|
|
|
60.4
|
|
|
22.4
|
|
|
Total
|
|
156.7
|
|
|
143.3
|
|
|
437.0
|
|
|
413.3
|
|
|
Realized
investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From sales
|
|
12.2
|
|
|
41.4
|
|
|
63.1
|
|
|
77.0
|
|
|
From
impairments
|
|
(4.9)
|
|
|
-
|
|
|
(4.9)
|
|
|
-
|
|
|
Net realized
investment gains (losses)
|
|
7.2
|
|
|
41.4
|
|
|
58.1
|
|
|
77.0
|
|
|
Consolidated
pretax income (loss)
|
|
164.0
|
|
|
184.7
|
|
|
495.2
|
|
|
490.3
|
|
|
Income taxes
(credits)
|
|
53.1
|
|
|
58.8
|
|
|
160.2
|
|
|
158.8
|
|
|
Net income
(loss)
|
$
|
110.9
|
|
$
|
125.9
|
|
$
|
335.0
|
|
$
|
331.4
|
|
|
Components of
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
$
|
0.18
|
|
$
|
0.23
|
|
$
|
0.57
|
|
$
|
0.61
|
|
|
Title
insurance
|
|
0.13
|
|
|
0.12
|
|
|
0.27
|
|
|
0.26
|
|
|
Corporate and
other
|
|
0.02
|
|
|
0.03
|
|
|
0.07
|
|
|
0.07
|
|
|
Subtotal
|
|
0.33
|
|
|
0.38
|
|
|
0.91
|
|
|
0.94
|
|
|
RFIG run-off
business
|
|
0.04
|
|
|
(0.03)
|
|
|
0.13
|
|
|
0.05
|
|
|
Total
|
|
0.37
|
|
|
0.35
|
|
|
1.04
|
|
|
0.99
|
|
|
Net realized
investment gains (losses)
|
|
0.02
|
|
|
0.09
|
|
|
0.13
|
|
|
0.17
|
|
|
Net income
(loss)
|
$
|
0.39
|
|
$
|
0.44
|
|
$
|
1.17
|
|
$
|
1.16
|
|
|
Cash dividends
paid per share
|
$
|
0.1875
|
|
$
|
0.1850
|
|
$
|
0.5625
|
|
$
|
0.5550
|
|
|
Ending book value
per share
|
|
|
|
|
|
|
$
|
17.13
|
|
$
|
14.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Unaudited; All amounts in this report are stated in millions except
per share data and percentages.
|
|
The preceding table shows both operating and net income to
highlight the effects of realized investment gains or losses on
period-to-period earnings comparisons. Management uses operating
income, a non-GAAP financial measure, to evaluate and better
explain operating performance, believing that the measure enhances
an understanding of Old Republic's core business results. Operating
income, however, does not replace net income determined in
accordance with GAAP as a measure of total profitability.
The recognition of realized investment gains or losses can be
highly discretionary due to such factors as the timing of
individual securities sales, the recording of estimated losses from
write-downs of impaired securities, tax-planning considerations,
and changes in investment management judgments regarding the
direction of securities markets or the future prospects of
individual investees or industry sectors. Since 2013, asset
management operations have in part been oriented toward an
enhancement of income from interest and dividends. To some extent
this strategy has led to a minimization of non-income producing or
low-yielding securities. Proceeds from such securities' sales and
maturities, as well as newly investable funds have largely been
directed to purchases of higher yielding common shares of American
companies with distinguished long-term records of earnings and
dividend growth. More recently the Company has allotted greater
investable funds to tax exempt issues which tend to generate pretax
yields lower than those of fully taxable corporate or U.S.
Government fixed maturity securities.
General Insurance
Results – The table below shows the major elements affecting
this segment's performance for each of the periods reported
upon.
|
|
|
|
General Insurance
Group
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Net premiums
earned
|
$
|
732.0
|
|
$
|
744.5
|
|
-1.7%
|
|
$
|
2,192.8
|
|
$
|
2,157.2
|
|
1.7%
|
Net investment
income
|
|
77.2
|
|
|
83.1
|
|
-7.0
|
|
|
233.6
|
|
|
231.6
|
|
0.9
|
Other
income
|
|
27.2
|
|
|
27.8
|
|
-2.1
|
|
|
80.6
|
|
|
79.7
|
|
1.1
|
Operating
revenues
|
|
836.5
|
|
|
855.4
|
|
-2.2
|
|
|
2,507.1
|
|
|
2,468.5
|
|
1.6
|
Benefits and claim
costs
|
|
538.3
|
|
|
549.4
|
|
-2.0
|
|
|
1,595.5
|
|
|
1,588.5
|
|
0.4
|
Sales and general
expenses
|
|
207.5
|
|
|
197.1
|
|
5.3
|
|
|
625.5
|
|
|
581.5
|
|
7.6
|
Interest and other
costs
|
|
14.6
|
|
|
11.8
|
|
23.9
|
|
|
42.8
|
|
|
34.3
|
|
24.9
|
Total operating
expenses
|
|
760.5
|
|
|
758.4
|
|
0.3
|
|
|
2,263.9
|
|
|
2,204.3
|
|
2.7
|
Pretax operating
income (loss)(*)
|
$
|
75.9
|
|
$
|
97.0
|
|
-21.7%
|
|
$
|
243.1
|
|
$
|
264.1
|
|
-8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit and claim
ratio
|
|
73.5%
|
|
|
73.8%
|
|
|
|
|
72.8%
|
|
|
73.6%
|
|
|
Expense
ratio
|
|
24.6
|
|
|
22.7
|
|
|
|
|
24.9
|
|
|
23.3
|
|
|
Composite underwriting
ratio
|
|
98.1%
|
|
|
96.5%
|
|
|
|
|
97.7%
|
|
|
96.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) In connection
with the run-off mortgage guaranty ("MI") and consumer credit
indemnity ("CCI") combination, $5.1 and $26.3 of pretax operating
losses for the third quarter and first nine months of 2016, and
$12.4 and $37.4 of pretax operating losses for the respective
periods of 2015, are retained by certain general insurance
companies pursuant to various quota share and stop loss reinsurance
agreements. All of these amounts, however, have been reclassified
such that 100% of the CCI run-off business is reported in the RFIG
run-off segment.
|
General Insurance pretax operating earnings in this year's
latest quarter and first nine months were most affected by lower
underwriting profitability. This outcome was largely caused by
relatively higher operating expenses. Net investment income, though
less additive than in more recent times, counterbalanced the
lessened underwriting results in some degree.
Earned premium levels were basically flat year-over-year. For
both 2016 periods, premium income was affected positively by gains
in commercial automobile (trucking), in certain other coverages
such as home and auto warranty, and by emerging premium production
from a new underwriting facility established in early 2015. In
total, however, premium growth in this year's interim periods was
hindered by lower volume in a large account construction book of
business facing a particularly competitive environment, and by
reduced volume for various other products including those sold in
the energy services field.
Consolidated General Insurance benefit and claim costs were
reasonably stable for the respective quarterly and nine month
periods of 2016 with such costs and related ratios largely
unaffected by developments of prior years' reserves. By contrast,
claim ratios for the corresponding periods of 2015 were inclusive
of a 1.0 percentage point addition arising from unfavorable
developments of previously established reserves. Relatively higher
expense ratios in 2016's periods resulted mostly from greater costs
incurred for a start-up business, additional litigation cost
provisions in this year's second quarter, and by a slightly
different premium mix and attendant costs of production driven by
the business' responses to insurance market conditions as they
occur throughout the year.
In management's opinion, quarterly or year-to-date fluctuations
in reported benefit and claim ratios are not particularly
meaningful in evaluating long-term trends in Old Republic's
liability insurance-oriented mix of business. Absent significant
economic and insurance industry dislocations in the future,
management currently anticipates that recent years' uptrends in
these ratios should abate and revert gradually to long-term
targeted annual averages in the high 60%s to low 70%s.
Title Insurance
Results – Year-over-year earnings edged up in this year's third
quarter and first nine months continuing along the generally
positive path set in recent years.
|
|
|
|
Title Insurance
Group
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Net premiums and fees
earned
|
$
|
588.4
|
|
$
|
566.7
|
|
3.8%
|
|
$
|
1,587.2
|
|
$
|
1,497.8
|
|
6.0%
|
Net investment
income
|
|
8.9
|
|
|
8.9
|
|
-
|
|
|
27.0
|
|
|
24.8
|
|
8.5
|
Other
income
|
|
0.2
|
|
|
0.2
|
|
19.3
|
|
|
1.0
|
|
|
1.0
|
|
-3.3
|
Operating
revenues
|
|
597.7
|
|
|
575.9
|
|
3.8
|
|
|
1,615.2
|
|
|
1,523.7
|
|
6.0
|
Claim
costs
|
|
30.5
|
|
|
31.9
|
|
-4.4
|
|
|
81.8
|
|
|
80.9
|
|
1.1
|
Sales and general
expenses
|
|
506.8
|
|
|
487.3
|
|
4.0
|
|
|
1,403.0
|
|
|
1,318.4
|
|
6.4
|
Interest and other
costs
|
|
1.7
|
|
|
1.6
|
|
8.1
|
|
|
5.7
|
|
|
5.6
|
|
1.8
|
Total operating
expenses
|
|
539.2
|
|
|
520.9
|
|
3.5
|
|
|
1,490.6
|
|
|
1,405.0
|
|
6.1
|
Pretax operating
income (loss)
|
$
|
58.5
|
|
$
|
55.0
|
|
6.3%
|
|
$
|
124.5
|
|
$
|
118.7
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
5.2%
|
|
|
5.6%
|
|
|
|
|
5.2%
|
|
|
5.4%
|
|
|
Expense
ratio
|
|
86.1
|
|
|
85.9
|
|
|
|
|
88.3
|
|
|
88.0
|
|
|
Composite underwriting
ratio
|
|
91.3%
|
|
|
91.5%
|
|
|
|
|
93.5%
|
|
|
93.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The continuation of a favorable mortgage rate environment and
improving housing and commercial property markets have led to
higher revenues from title premiums and fees in 2016. The
improvements have been achieved in spite of the adverse effects
that recently implemented government-imposed mortgage disclosure
rules have had on the consummation of real estate transactions
nationally.
As the above table shows, 2016 underwriting margins remained at
healthy levels for the periods reported upon. Both claim and
expense ratios were aligned with management expectations set early
in the year. While a smaller component of title profitability, net
investment income rose in both 2016 periods albeit at a slower pace
than prevailed in the past two years or so.
(See next page for discussion of RFIG Run-off
Business)
RFIG Run-off
Business Results – The table below shows the operating
components of this run-off book of business and their contributions
to combined results.
|
|
|
|
RFIG Run-off
Business
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
A. MORTGAGE
INSURANCE (MI)
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
36.7
|
|
$
|
49.4
|
|
-25.8%
|
|
$
|
119.8
|
|
$
|
152.2
|
|
-21.3%
|
Net investment
income
|
|
5.4
|
|
|
6.2
|
|
-11.4
|
|
|
16.7
|
|
|
18.4
|
|
-9.4
|
Claim
costs
|
|
14.1
|
|
|
50.6
|
|
-72.0%
|
|
|
34.1
|
|
|
94.7
|
|
-64.0
|
Pretax operating
income (loss)
|
$
|
23.8
|
|
$
|
0.3
|
|
N/M
|
|
$
|
87.9
|
|
$
|
61.2
|
|
43.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
38.6%
|
|
|
102.3%
|
|
|
|
|
28.5%
|
|
|
62.2%
|
|
|
Expense
ratio
|
|
11.4
|
|
|
9.4
|
|
|
|
|
12.1
|
|
|
9.6
|
|
|
Composite underwriting
ratio
|
|
50.0%
|
|
|
111.7%
|
|
|
|
|
40.6%
|
|
|
71.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. CONSUMER CREDIT
INSURANCE (CCI)
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
3.7
|
|
$
|
6.3
|
|
-40.7%
|
|
$
|
11.2
|
|
$
|
18.0
|
|
-37.9%
|
Net investment
income
|
|
0.2
|
|
|
0.2
|
|
33.3
|
|
|
0.8
|
|
|
0.6
|
|
30.9
|
Benefits and claim
costs
|
|
8.9
|
|
|
18.9
|
|
-52.8
|
|
|
37.8
|
|
|
55.8
|
|
-32.3
|
Pretax operating
income (loss)(*)
|
$
|
(5.4)
|
|
$
|
(12.9)
|
|
57.9%
|
|
$
|
(27.4)
|
|
$
|
(38.7)
|
|
29.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
238.1%
|
|
|
298.8%
|
|
|
|
|
337.3%
|
|
|
309.4%
|
|
|
Expense
ratio
|
|
14.5
|
|
|
8.5
|
|
|
|
|
14.7
|
|
|
9.0
|
|
|
Composite underwriting
ratio
|
|
252.6%
|
|
|
307.3%
|
|
|
|
|
352.0%
|
|
|
318.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Total MI and
CCI run-off business:
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
40.4
|
|
$
|
55.8
|
|
-27.5%
|
|
$
|
131.0
|
|
$
|
170.3
|
|
-23.1%
|
Net investment
income
|
|
5.7
|
|
|
6.4
|
|
-9.8
|
|
|
17.5
|
|
|
19.0
|
|
-8.1
|
Benefits and claim
costs
|
|
23.1
|
|
|
69.6
|
|
-66.8
|
|
|
71.9
|
|
|
150.6
|
|
-52.2
|
Pretax operating
income (loss)
|
$
|
18.4
|
|
$
|
(12.5)
|
|
246.5%
|
|
$
|
60.4
|
|
$
|
22.4
|
|
168.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
57.2%
|
|
|
124.7%
|
|
|
|
|
54.9%
|
|
|
88.4%
|
|
|
Expense
ratio
|
|
11.7
|
|
|
9.3
|
|
|
|
|
12.3
|
|
|
9.6
|
|
|
Composite underwriting
ratio
|
|
68.9%
|
|
|
134.0%
|
|
|
|
|
67.2%
|
|
|
98.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) In connection
with the run-off mortgage guaranty ("MI") and consumer credit
indemnity ("CCI") combination, $5.1 and $26.3 of pretax operating
losses for the third quarter and first nine months of 2016, and
$12.4 and $37.4 of pretax operating losses for the respective
periods of 2015, are retained by certain general insurance
companies pursuant to various quota share and stop loss reinsurance
agreements. All of these amounts, however, have been reclassified
such that 100% of the CCI run-off business is reported in the RFIG
run-off segment.
|
Consistent with a run-off operating mode, further declines in
earned premiums were posted by the MI and CCI lines. Investment
income for MI was also lower as reduced premium volumes and ongoing
claim payments affected downward pressures on the invested asset
base.
Year-over-year comparisons of the MI claim ratio were positive.
The lower ratios for both 2016 periods were attributable to
continued declines in reported delinquencies and higher rates at
which reported defaults are cured or otherwise resolved without
payment. Moreover, 2016 MI claim costs were less affected by
litigation expense provisions that impacted adversely the 2015
claim ratio. Favorable developments of previously established claim
reserves lowered claim ratios by 52.2 and 44.0 percentage points in
the third quarter and first nine months of 2016, respectively. The
reductions amounted to 56.5 and 72.7 percentage points for the
respective periods of 2015.
The much smaller CCI run-off line reflected greater volatility
in claim costs and resultant claim ratios. The latter were
particularly impacted by ongoing costs pertaining to a
near-eight-year long commercial dispute in litigation with Bank of
America and its Countrywide mortgage banking subsidiaries.
Corporate and
Other Operations – The combination of a small life and
accident insurance business and the net costs associated with
operations of the parent holding company and its internal services
subsidiaries usually produce highly variable results. Earnings
variations posted by these relatively minor elements of Old
Republic's business stem from volatility inherent to the small
scale of life and accident insurance operations, and net interest
costs pertaining to external and intra-system financing
arrangements. The interplay of these various operating elements is
summarized in the following table:
|
|
|
|
Corporate and
Other Operations
|
|
Quarters
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net premiums
earned
|
$
|
4.4
|
|
$
|
5.0
|
|
$
|
14.0
|
|
$
|
14.7
|
Net investment
income
|
|
3.7
|
|
|
5.7
|
|
|
8.8
|
|
|
13.3
|
Other
income
|
|
-
|
|
|
(0.2)
|
|
|
(0.1)
|
|
|
(0.8)
|
Operating
revenues
|
|
8.1
|
|
|
10.5
|
|
|
22.7
|
|
|
27.1
|
Benefits and claim
costs
|
|
3.1
|
|
|
5.7
|
|
|
12.7
|
|
|
14.9
|
Insurance
expenses
|
|
2.3
|
|
|
1.2
|
|
|
6.6
|
|
|
4.6
|
Corporate, interest
and other expenses - net
|
|
(1.2)
|
|
|
(0.2)
|
|
|
(5.6)
|
|
|
(0.3)
|
Total operating
expenses
|
|
4.2
|
|
|
6.8
|
|
|
13.8
|
|
|
19.2
|
Pretax operating
income (loss)
|
$
|
3.9
|
|
$
|
3.7
|
|
$
|
8.8
|
|
$
|
7.9
|
Consolidated
Results – The consolidated changes and occurrences in Old
Republic's segmented business for the most recent interim periods
are shown in the following table:
|
|
|
|
ORI
Consolidated
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Net premiums and fees
earned
|
$
|
1,365.4
|
|
$
|
1,372.1
|
|
-0.5%
|
|
$
|
3,925.1
|
|
$
|
3,840.1
|
|
2.2%
|
Net investment
income
|
|
95.7
|
|
|
104.2
|
|
-8.1
|
|
|
287.0
|
|
|
288.9
|
|
-0.6
|
Other
income
|
|
27.5
|
|
|
27.8
|
|
-1.2
|
|
|
81.4
|
|
|
79.8
|
|
2.0
|
Operating
revenues
|
|
1,488.7
|
|
|
1,504.2
|
|
-1.0
|
|
|
4,293.6
|
|
|
4,208.9
|
|
2.0
|
Benefits and claim
costs
|
|
595.2
|
|
|
656.7
|
|
-9.4
|
|
|
1,762.1
|
|
|
1,835.0
|
|
-4.0
|
Sales and general
expenses
|
|
724.0
|
|
|
693.9
|
|
4.3
|
|
|
2,060.3
|
|
|
1,929.5
|
|
6.8
|
Interest and other
costs
|
|
12.6
|
|
|
10.2
|
|
23.4
|
|
|
34.0
|
|
|
31.0
|
|
9.7
|
Total operating
expenses
|
|
1,331.9
|
|
|
1,360.9
|
|
-2.1
|
|
|
3,856.5
|
|
|
3,795.5
|
|
1.6
|
Pretax operating
income (loss)
|
|
156.7
|
|
|
143.3
|
|
9.4
|
|
|
437.0
|
|
|
413.3
|
|
5.7
|
Income taxes
(credits)
|
|
50.5
|
|
|
44.2
|
|
14.1
|
|
|
139.8
|
|
|
131.9
|
|
6.0
|
Net operating income
(loss)
|
|
106.2
|
|
|
99.0
|
|
7.3
|
|
|
297.2
|
|
|
281.4
|
|
5.6
|
Realized investment
gains (losses)
|
|
7.2
|
|
|
41.4
|
|
-82.4
|
|
|
58.1
|
|
|
77.0
|
|
-24.5
|
Income taxes
(credits) on realized investment gains (losses)
|
|
2.5
|
|
|
14.5
|
|
-82.4
|
|
|
20.3
|
|
|
26.9
|
|
-24.5
|
Net realized
investment gains (losses)
|
|
4.7
|
|
|
26.9
|
|
-82.4
|
|
|
37.7
|
|
|
50.0
|
|
-24.5
|
Net income
(loss)
|
$
|
110.9
|
|
$
|
125.9
|
|
-11.9%
|
|
$
|
335.0
|
|
$
|
331.4
|
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
43.6%
|
|
|
47.9%
|
|
|
|
|
44.9%
|
|
|
47.8%
|
|
|
Expense
ratio
|
|
50.8
|
|
|
48.3
|
|
|
|
|
50.2
|
|
|
47.9
|
|
|
Composite underwriting
ratio
|
|
94.4%
|
|
|
96.2%
|
|
|
|
|
95.1%
|
|
|
95.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
operating cash flow
|
|
|
|
|
|
|
|
|
$
|
401.9
|
|
$
|
566.5
|
|
-29.0%
|
Consolidated operating cash flow was additive to investable
funds and other operating management needs in the amount of
$401.9 and $566.5 for the first nine months of 2016 and
2015, respectively. Excluding the inherently negative MI and CCI
operating cash flows, these amounts would be $488.3 and $671.9,
respectively.
The sum-total of Old Republic's segmented results is represented
by the following major components of pretax consolidated
income:
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
Pretax operating
income:
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Underwriting and
related services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All segments except
RFIG
|
$
|
61.0
|
|
$
|
68.2
|
|
-10.6%
|
|
$
|
141.1
|
|
$
|
152.0
|
|
-7.2%
|
RFIG
run-off
|
|
12.6
|
|
|
(18.9)
|
|
166.4
|
|
|
42.9
|
|
|
3.4
|
|
N/M
|
Subtotal
|
|
73.6
|
|
|
49.2
|
|
49.4
|
|
|
184.0
|
|
|
155.4
|
|
18.4
|
Net investment
income
|
|
95.7
|
|
|
104.2
|
|
-8.1
|
|
|
287.0
|
|
|
288.9
|
|
-0.6
|
Interest and other
costs
|
|
(12.6)
|
|
|
(10.2)
|
|
23.4
|
|
|
(34.0)
|
|
|
(31.0)
|
|
9.7
|
Total
|
|
156.7
|
|
|
143.3
|
|
9.4
|
|
|
437.0
|
|
|
413.3
|
|
5.7
|
Realized investment
gains(losses)
|
|
7.2
|
|
|
41.4
|
|
-82.4
|
|
|
58.1
|
|
|
77.0
|
|
-24.5
|
Consolidated pretax
income
|
$
|
164.0
|
|
$
|
184.7
|
|
-11.2%
|
|
$
|
495.2
|
|
$
|
490.3
|
|
1.0%
|
Cash, Invested
Assets, and Shareholders' Equity – The table below reflects Old
Republic's consolidated cash and invested asset balances as well as
the shareholders' equity account at the dates shown.
|
|
|
|
|
|
Cash, Invested
Assets, and Shareholders' Equity
|
|
|
|
|
|
|
|
|
% Change
|
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. '16/
|
|
Sept. '16/
|
|
|
2016
|
|
2015
|
|
2015
|
|
Dec. '15
|
|
Sept. '15
|
Cash and invested
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried at fair
value
|
|
$
|
12,121.9
|
|
$
|
11,119.6
|
|
$
|
11,192.9
|
|
9.0%
|
|
8.3%
|
|
Carried at amortized
cost
|
|
|
748.5
|
|
|
355.8
|
|
|
195.6
|
|
110.4
|
|
282.7
|
|
Total per balance
sheet
|
|
$
|
12,870.5
|
|
$
|
11,475.5
|
|
$
|
11,388.6
|
|
12.2%
|
|
13.0%
|
|
Original cost basis of
all
|
|
$
|
12,146.1
|
|
$
|
11,284.5
|
|
$
|
11,157.1
|
|
7.6%
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
Total
|
|
$
|
4,446.1
|
|
$
|
3,880.8
|
|
$
|
3,853.8
|
|
14.6%
|
|
15.4%
|
|
Per common
share
|
|
$
|
17.13
|
|
$
|
15.02
|
|
$
|
14.95
|
|
14.0%
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
shareholders' equity per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity before items
below
|
|
$
|
15.64
|
|
$
|
14.91
|
|
$
|
14.73
|
|
4.9%
|
|
6.2%
|
Unrealized investment gains (losses) and other
accumulated comprehensive income
(loss)
|
|
|
1.49
|
|
|
0.11
|
|
|
0.22
|
|
|
|
|
Total
|
|
$
|
17.13
|
|
$
|
15.02
|
|
$
|
14.95
|
|
14.0%
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmented
composition of shareholders' equity per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding run-off
segment
|
|
$
|
15.87
|
|
$
|
14.06
|
|
$
|
14.04
|
|
12.9%
|
|
13.0%
|
RFIG run-off
segment
|
|
|
1.26
|
|
|
0.96
|
|
|
0.91
|
|
|
|
|
Total
|
|
$
|
17.13
|
|
$
|
15.02
|
|
$
|
14.95
|
|
14.0%
|
|
14.6%
|
Old Republic's invested assets are managed in consideration of
enterprise-wide risk management objectives. Most importantly, these
are intended to ensure solid funding of insurance subsidiaries'
long-term obligations to policyholders and other beneficiaries, and
the resulting long-term stability of the subsidiaries' capital
accounts. To this end, the investment portfolio contains no
significant insurance risk-correlated asset exposures to real
estate, mortgage-backed securities, collateralized debt obligations
("CDO's"), derivatives, hybrid securities, or illiquid private
equity investments. Moreover, the Company does not engage in
hedging or securities lending transactions, nor does it invest in
securities whose values are predicated on non-regulated financial
instruments exhibiting amorphous or unfunded counter-party risk
attributes.
As of September 30, 2016, the
consolidated investment portfolio reflected an allocation of
approximately 78 percent to fixed-maturity and short-term
investments, and 22 percent to equities. Investments in high
quality, dividend-paying equity securities have been singularly
emphasized since 2013, and the asset quality of the fixed maturity
portfolio has remained at high levels.
Changes in shareholders' equity per share are shown in the
following table. As indicated, these changes resulted mostly from
net income, increased dividend payments to shareholders, and
changes in the value of invested assets carried at fair value in
the periods reported upon.
|
|
Shareholders'
Equity Per Share
|
|
|
Quarter
|
|
|
|
Year
|
|
|
Ended
|
|
Nine Months
Ended
|
|
Ended
|
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Beginning
balance
|
|
$
|
16.89
|
|
$
|
15.02
|
|
$
|
15.15
|
|
$
|
15.15
|
Changes in
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(loss)
|
|
|
0.41
|
|
|
1.15
|
|
|
1.09
|
|
|
1.40
|
Net realized
investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
From sales
|
|
|
0.03
|
|
|
0.15
|
|
|
0.19
|
|
|
0.23
|
From
impairments
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
-
|
|
|
-
|
Subtotal
|
|
|
0.02
|
|
|
0.14
|
|
|
0.19
|
|
|
0.23
|
Net unrealized
investment gains (losses)
|
|
|
-
|
|
|
1.35
|
|
|
(0.86)
|
|
|
(0.96)
|
Total realized and
unrealized investment gains (losses)
|
|
|
0.02
|
|
|
1.49
|
|
|
(0.67)
|
|
|
(0.73)
|
Cash
dividends
|
|
|
(0.19)
|
|
|
(0.56)
|
|
|
(0.56)
|
|
|
(0.74)
|
Stock issuance,
foreign exchange, and other transactions
|
|
|
-
|
|
|
0.03
|
|
|
(0.06)
|
|
|
(0.06)
|
Net change
|
|
|
0.24
|
|
|
2.11
|
|
|
(0.20)
|
|
|
(0.13)
|
Ending
balance
|
|
$
|
17.13
|
|
$
|
17.13
|
|
$
|
14.95
|
|
$
|
15.02
|
Percentage change for
the period
|
|
|
1.4%
|
|
|
14.0%
|
|
|
-1.3%
|
|
|
-0.9%
|
Capitalization
– As the table below indicates, the 23.6% increase in Old
Republic's capitalization for the nine months ended September 30,
2016 consisted of a 14.6% increase in the common shareholders'
account and a 60.4% increase in total debt resulting from this
year's third quarter successful issuance of a $550 million,
ten-year senior debt security in the public markets.
|
|
|
|
|
|
Capitalization
(*)
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2015
|
Debt:
|
|
|
|
|
|
|
|
|
|
3.75% Convertible
Senior Notes due 2018
|
|
$
|
547.3
|
|
$
|
546.0
|
|
$
|
545.5
|
4.875% Senior Notes
due 2024
|
|
|
395.5
|
|
|
395.1
|
|
|
395.0
|
3.875% Senior Notes
due 2026
|
|
|
544.4
|
|
|
-
|
|
|
-
|
ESSOP debt with an
average yield of 4.0%
|
|
|
8.1
|
|
|
11.7
|
|
|
11.7
|
Other miscellaneous
debt with an average yield of 1.8%
|
|
|
32.4
|
|
|
-
|
|
|
-
|
Total debt
|
|
|
1,528.0
|
|
|
952.8
|
|
|
952.2
|
Common shareholders'
equity
|
|
|
4,446.1
|
|
|
3,880.8
|
|
|
3,853.8
|
Total
capitalization
|
|
$
|
5,974.1
|
|
$
|
4,833.7
|
|
$
|
4,806.1
|
|
|
|
|
|
|
|
|
|
|
Capitalization
ratios:
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
25.6%
|
|
|
19.7%
|
|
|
19.8%
|
Common shareholders'
equity
|
|
|
74.4
|
|
|
80.3
|
|
|
80.2
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Certain debt
amounts have been reduced due to the reclassification of relatively
immaterial debt issuance costs previously classified as deferred
assets, in order to comply with a 2015 pronouncement by the
Financial Accounting Standards Board.
|
Managing Old
Republic's Insurance Business for the Long-Run
|
The insurance business is distinguished from most others in that
the prices (premiums) charged for various insurance products are
set without certainty of the ultimate benefit and claim costs that
will emerge or be incurred, often many years after issuance and
expiration of a policy. Old Republic's business is therefore
conducted with a primary focus on achieving favorable underwriting
results over cycles, and on the maintenance of financial soundness
in support of its insurance subsidiaries' long-term obligations to
insurance beneficiaries.
In this light, the Company's affairs are managed for the long
run and without significant regard to the arbitrary strictures of
quarterly or even annual reporting periods that American industry
must observe. In Old Republic's view, such short reporting time
frames do not comport well with the long-term nature of much of its
business. Management therefore believes that the Company's
operating results and financial condition can best be evaluated by
observing underwriting and overall operating performance trends
over succeeding five- or preferably ten-year intervals. A ten-year
period in particular can likely encompass at least one economic
and/or underwriting cycle and thereby provide an appropriate time
frame for such cycle to run its course, for premium rate changes to
emerge in financial results, and for reserved claim costs to be
quantified with greater finality and effect.
Accompanying Financial Data:
- Summary Financial Statements and Common Stock Statistics
- About Old Republic
- Safe Harbor Statement
Financial Supplement
A financial supplement to
this news release is available on the Company's website.
Old Republic
International Corporation
|
SummaryFinancial Statements and Common
Stock Statistics (Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
SUMMARY BALANCE
SHEETS:
|
|
2016
|
|
2015
|
|
2015
|
Assets:
|
|
|
|
|
|
|
|
|
|
Cash and fixed maturity
securities
|
|
$
|
9,955.1
|
|
$
|
9,366.7
|
|
$
|
9,289.7
|
Equity
securities
|
|
|
2,787.4
|
|
|
1,987.8
|
|
|
1,976.2
|
Other invested
assets
|
|
|
127.9
|
|
|
120.9
|
|
|
122.6
|
Cash and invested
assets
|
|
|
12,870.5
|
|
|
11,475.5
|
|
|
11,388.6
|
Accounts and premiums
receivable
|
|
|
1,508.6
|
|
|
1,310.2
|
|
|
1,433.4
|
Federal income tax
recoverable:
|
Current
|
|
|
27.2
|
|
|
26.5
|
|
|
-
|
|
Deferred
|
|
|
-
|
|
|
154.5
|
|
|
159.0
|
Prepaid federal income
taxes
|
|
|
82.4
|
|
|
63.3
|
|
|
63.3
|
Reinsurance balances
recoverable
|
|
|
3,423.6
|
|
|
3,183.6
|
|
|
3,387.0
|
Sundry
assets
|
|
|
898.0
|
|
|
887.8
|
|
|
886.8
|
Total
|
|
$
|
18,810.6
|
|
$
|
17,101.6
|
|
$
|
17,318.3
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
|
$
|
2,162.0
|
|
$
|
1,945.1
|
|
$
|
2,085.3
|
Benefit and claim
reserves
|
|
|
9,247.0
|
|
|
9,120.2
|
|
|
9,159.2
|
Federal income tax
payable:
|
Current
|
|
|
-
|
|
|
-
|
|
|
7.2
|
|
Deferred
|
|
|
52.3
|
|
|
-
|
|
|
-
|
Debt
|
|
|
1,528.0
|
|
|
952.8
|
|
|
952.2
|
Sundry
liabilities
|
|
|
1,375.0
|
|
|
1,202.5
|
|
|
1,260.5
|
Shareholders'
equity
|
|
|
4,446.1
|
|
|
3,880.8
|
|
|
3,853.8
|
Total
|
|
$
|
18,810.6
|
|
$
|
17,101.6
|
|
$
|
17,318.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Nine Months
Ended
|
|
Fiscal Twelve
Months Ended
|
SUMMARY INCOME
STATEMENTS:
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net premiums and fees
earned
|
|
$
|
1,365.4
|
|
$
|
1,372.1
|
|
$
|
3,925.1
|
|
$
|
3,840.1
|
|
$
|
5,264.3
|
|
$
|
5,089.3
|
Net investment
income
|
|
|
95.7
|
|
|
104.2
|
|
|
287.0
|
|
|
288.9
|
|
|
386.8
|
|
|
380.0
|
Other income
|
|
|
27.5
|
|
|
27.8
|
|
|
81.4
|
|
|
79.8
|
|
|
108.3
|
|
|
105.0
|
Net realized investment
gains (losses)
|
|
|
7.2
|
|
|
41.4
|
|
|
58.1
|
|
|
77.0
|
|
|
72.4
|
|
|
86.6
|
Total
revenues
|
|
|
1,496.0
|
|
|
1,545.7
|
|
|
4,351.7
|
|
|
4,285.9
|
|
|
5,832.0
|
|
|
5,661.0
|
Benefits and
claims
|
|
|
595.2
|
|
|
656.7
|
|
|
1,762.1
|
|
|
1,835.0
|
|
|
2,386.4
|
|
|
2,487.8
|
Sales and general
expenses
|
|
|
724.0
|
|
|
693.9
|
|
|
2,060.3
|
|
|
1,929.5
|
|
|
2,763.9
|
|
|
2,551.1
|
Interest and other
costs
|
|
|
12.6
|
|
|
10.2
|
|
|
34.0
|
|
|
31.0
|
|
|
44.9
|
|
|
40.2
|
Total
expenses
|
|
|
1,331.9
|
|
|
1,360.9
|
|
|
3,856.5
|
|
|
3,795.5
|
|
|
5,195.3
|
|
|
5,079.2
|
Pretax income
(loss)
|
|
|
164.0
|
|
|
184.7
|
|
|
495.2
|
|
|
490.3
|
|
|
636.6
|
|
|
581.8
|
Income taxes
(credits)
|
|
|
53.1
|
|
|
58.8
|
|
|
160.2
|
|
|
158.8
|
|
|
211.0
|
|
|
186.9
|
Net income
(loss)
|
|
$
|
110.9
|
|
$
|
125.9
|
|
$
|
335.0
|
|
$
|
331.4
|
|
$
|
425.6
|
|
$
|
394.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss):
|
Basic
|
|
$
|
0.43
|
|
$
|
0.48
|
|
$
|
1.29
|
|
$
|
1.28
|
|
$
|
1.64
|
|
$
|
1.52
|
|
Diluted
|
|
$
|
0.39
|
|
$
|
0.44
|
|
$
|
1.17
|
|
$
|
1.16
|
|
$
|
1.49
|
|
$
|
1.38
|
Components of earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, net operating
income (loss)
|
|
$
|
0.41
|
|
$
|
0.38
|
|
$
|
1.15
|
|
$
|
1.09
|
|
$
|
1.46
|
|
$
|
1.31
|
Realized investment
gains (losses)
|
|
|
0.02
|
|
|
0.10
|
|
|
0.14
|
|
|
0.19
|
|
|
0.18
|
|
|
0.21
|
Basic net income
(loss)
|
|
$
|
0.43
|
|
$
|
0.48
|
|
$
|
1.29
|
|
$
|
1.28
|
|
$
|
1.64
|
|
$
|
1.52
|
Diluted, net operating
income (loss)
|
|
$
|
0.37
|
|
$
|
0.35
|
|
$
|
1.04
|
|
$
|
0.99
|
|
$
|
1.33
|
|
$
|
1.19
|
Realized investment
gains (losses)
|
|
|
0.02
|
|
|
0.09
|
|
|
0.13
|
|
|
0.17
|
|
|
0.16
|
|
|
0.19
|
Diluted net income
(loss)
|
|
$
|
0.39
|
|
$
|
0.44
|
|
$
|
1.17
|
|
$
|
1.16
|
|
$
|
1.49
|
|
$
|
1.38
|
Cash dividends on
common stock
|
|
$
|
0.1875
|
|
$
|
0.1850
|
|
$
|
0.5625
|
|
$
|
0.5550
|
|
$
|
0.7475
|
|
$
|
0.7375
|
Book value per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17.13
|
|
$
|
14.95
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
|
259,414,230
|
|
|
259,266,696
|
|
|
259,227,605
|
|
|
259,411,347
|
|
|
259,112,587
|
|
|
259,363,903
|
Average
diluted
|
|
|
296,444,432
|
|
|
295,868,117
|
|
|
296,193,090
|
|
|
295,930,527
|
|
|
296,104,442
|
|
|
295,837,982
|
Actual, end of
period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259,613,011
|
|
|
257,772,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY STATEMENTS
OF COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as
reported
|
|
$
|
110.9
|
|
$
|
125.9
|
|
$
|
335.0
|
|
$
|
331.4
|
|
$
|
425.6
|
|
$
|
394.8
|
Post-tax net unrealized
gains (losses)
|
|
|
0.1
|
|
|
(123.7)
|
|
|
350.1
|
|
|
(222.5)
|
|
|
323.7
|
|
|
(182.6)
|
Other
adjustments
|
|
|
(0.4)
|
|
|
(8.3)
|
|
|
7.4
|
|
|
(14.0)
|
|
|
7.2
|
|
|
(72.2)
|
Net
adjustments
|
|
|
(0.2)
|
|
|
(132.1)
|
|
|
357.5
|
|
|
(236.5)
|
|
|
331.0
|
|
|
(254.9)
|
Comprehensive income
(loss)
|
|
$
|
110.7
|
|
$
|
(6.1)
|
|
$
|
692.5
|
|
$
|
94.9
|
|
$
|
756.6
|
|
$
|
139.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Old Republic
Chicago-based Old Republic
International Corporation is one of the nation's 50 largest
publicly held insurance organizations. Its most recent financial
statements reflect consolidated assets of approximately
$18.81 billion and common
shareholders' equity of $4.44
billion, or $17.13 per share.
Its current stock market valuation is approximately $4.78 billion, or $18.45 per share.
The Company is organized as an insurance holding company whose
subsidiaries actively market, underwrite, and provide risk
management services for a wide variety of coverages mostly in the
general and title insurance fields. A long-term interest in
mortgage guaranty and consumer credit indemnity lines has devolved
to a run-off operating mode in recent years.
The nature of Old Republic's business requires that it be
managed for the long run. For the 25 years ended in 2015, the
Company's total market return, with dividends reinvested, has grown
at a compounded annual rate of 12.2 percent per share. For the same
period, the total market return, with dividends reinvested, for the
S&P 500 Index has grown at a 9.8 percent annual compound rate.
During those years, Old Republic's shareholders' equity account,
inclusive of cash dividends, has risen at an average annual rate of
9.4 percent per share, and the regular cash dividend has grown at a
9.3 percent annual compound rate. According to the most recent
edition of Mergent's Dividend Achievers, Old Republic is one of
just 98 qualifying companies, out of thousands considered, that
have posted at least 25 consecutive years of annual dividend
growth.
Conference Call Information
Old Republic has scheduled a conference call at 3:00 p.m. ET (2:00 p.m.
CT) today, to discuss its third quarter 2016 performance and
to review major operating trends and business developments. To
access this call live in listen-only mode:
- Log on to the Company's website at www.oldrepublic.com
15 minutes before the call to download the necessary software,
or, alternatively
- The call can also be accessed by phone at
888-329-8877.
Interested parties may also listen to a replay of the
call through November 3, 2016 by
dialing 844-512-2921, passcode 1759253, or by accessing it on Old
Republic International's website through November 27, 2016.
Safe Harbor Statement
Historical data pertaining to the operating results, liquidity,
and other performance indicators applicable to an insurance
enterprise such as Old Republic are not necessarily indicative of
results to be achieved in succeeding years. In addition to the
factors cited below, the long-term nature of the insurance
business, seasonal and annual patterns in premium production and
incidence of claims, changes in yields obtained on invested assets,
changes in government policies and free markets affecting inflation
rates and general economic conditions, and changes in legal
precedents or the application of law affecting the settlement of
disputed and other claims can have a bearing on period-to-period
comparisons and future operating results.
Some of the oral or written statements made in the Company's
reports, press releases, and conference calls following earnings
releases, can constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Of
necessity, any such forward-looking statements involve assumptions,
uncertainties, and risks that may affect the Company's future
performance. With regard to Old Republic's General Insurance
segment, its results can be affected, in particular, by the level
of market competition, which is typically a function of available
capital and expected returns on such capital among competitors, the
levels of interest and inflation rates, and periodic changes in
claim frequency and severity patterns caused by natural disasters,
weather conditions, accidents, illnesses, work-related injuries,
and unanticipated external events. Title Insurance and RFIG run-off
results can be affected by similar factors, and by changes in
national and regional housing demand and values, the availability
and cost of mortgage loans, employment trends, and default rates on
mortgage loans. Life and accident insurance earnings can be
affected by the levels of employment and consumer spending,
variations in mortality and health trends, and changes in policy
lapsation rates. At the parent holding company level, operating
earnings or losses are generally reflective of the amount of debt
outstanding and its cost, interest income on temporary holdings of
short-term investments, and period-to-period variations in the
costs of administering the Company's widespread operations.
A more detailed listing and discussion of the risks and other
factors which affect the Company's risk-taking insurance business
are included in Part I, Item 1A - Risk Factors, of the Company's
2015 Form 10-K Annual Report and Part II, Item 1A - Risk Factors,
of the Company's recent Form 10-Q filings to the Securities and
Exchange Commission, which Items are specifically incorporated
herein by reference.
Any forward-looking statements or commentaries speak only as of
their dates. Old Republic undertakes no obligation to publicly
update or revise any and all such comments, whether as a result of
new information, future events or otherwise, and accordingly they
may not be unduly relied upon.
For the latest news releases and other
corporate documents on Old Republic, please write to:
Investor Relations
Old Republic International
Corporation
307 North Michigan Avenue • Chicago, IL 60601
312-346-8100
or visit us at www.oldrepublic.com
Further
Information Contacts:
|
AT OLD
REPUBLIC:
|
AT FINANCIAL
RELATIONS BOARD:
|
A. C. Zucaro:
Chairman & CEO
|
Analysts/Investors:
Marilynn Meek
|
(312)
346-8100
|
(212)
827-3773
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/old-republic-reports-results-for-the-third-quarter-and-first-nine-months-of-2016-300352495.html
SOURCE Old Republic International Corp.