CHICAGO, Oct. 26, 2017 /PRNewswire/ -- Old Republic
International Corporation (NYSE: ORI) today reported much lower
consolidated operating earnings for the third quarter and nine
months ended September 30, 2017. The
less favorable results were affected by previously announced pretax
operating charges aggregating $150.0
million (or $97.5 million
after tax or $0.33 per diluted
share). The charges stem from: (a) estimated General Insurance
claim provisions ($20.0 million)
associated with a current evaluation of exposures from hurricanes
Harvey and Irma, and (b) additional claim and related expense
provisions ($130.0 million)
applicable to final settlements and probable dispositions of all
known litigated and other claim costs incurred by the Company's
run-off Financial Indemnity business during the Great Recession
years and their aftermath. The comparisons shown in the following
table and related footnotes reflect the impact of these charges on
segmented and consolidated results.
|
Financial
Highlights (a)
|
|
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
$
|
901.8
|
|
$
|
836.5
|
|
7.8%
|
|
$
|
2,627.6
|
|
$
|
2,507.1
|
|
4.8%
|
|
|
Title
insurance
|
|
606.1
|
|
|
597.7
|
|
1.4
|
|
|
1,699.0
|
|
|
1,615.2
|
|
5.2
|
|
|
Corporate and
other
|
|
13.5
|
|
|
8.1
|
|
66.3
|
|
|
37.6
|
|
|
22.7
|
|
65.5
|
|
|
Subtotal
|
|
1,521.5
|
|
|
1,442.4
|
|
5.5
|
|
|
4,364.2
|
|
|
4,145.0
|
|
5.3
|
|
|
RFIG run-off
business
|
|
35.6
|
|
|
46.2
|
|
-22.9
|
|
|
115.1
|
|
|
148.5
|
|
-22.5
|
|
|
Total
|
$
|
1,557.2
|
|
$
|
1,488.7
|
|
4.6%
|
|
$
|
4,479.4
|
|
$
|
4,293.6
|
|
4.3%
|
|
|
Pretax operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
(b)
|
$
|
59.7
|
|
$
|
75.9
|
|
-21.3%
|
|
$
|
216.2
|
|
$
|
243.1
|
|
-11.1%
|
|
|
Title
insurance
|
|
67.3
|
|
|
58.5
|
|
15.0
|
|
|
172.8
|
|
|
124.5
|
|
38.7
|
|
|
Corporate and
other
|
|
6.5
|
|
|
3.9
|
|
67.0
|
|
|
12.4
|
|
|
8.8
|
|
40.7
|
|
|
Subtotal
|
|
133.5
|
|
|
138.3
|
|
-3.5
|
|
|
401.5
|
|
|
376.6
|
|
6.6
|
|
|
RFIG run-off
business
|
(c)
|
|
(109.7)
|
|
|
18.4
|
|
N/M
|
|
|
(88.3)
|
|
|
60.4
|
|
-246.1
|
|
|
Total
|
|
23.8
|
|
|
156.7
|
|
-84.8
|
|
|
313.1
|
|
|
437.0
|
|
-28.3
|
|
|
Realized
investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From sales
|
|
35.8
|
|
|
12.2
|
|
193.4
|
|
|
57.5
|
|
|
63.1
|
|
-8.8
|
|
|
From
impairments
|
|
-
|
|
|
(4.9)
|
|
100.0
|
|
|
-
|
|
|
(4.9)
|
|
100.0
|
|
|
Net realized
investment gains (losses)
|
|
35.8
|
|
|
7.2
|
|
N/M
|
|
|
57.5
|
|
|
58.1
|
|
-1.1
|
|
|
Consolidated
pretax income (loss)
|
|
59.6
|
|
|
164.0
|
|
-63.6
|
|
|
370.7
|
|
|
495.2
|
|
-25.1
|
|
|
Income taxes
(credits)
|
|
13.4
|
|
|
53.1
|
|
-74.6
|
|
|
109.7
|
|
|
160.2
|
|
-31.5
|
|
|
Net income
(loss)
|
$
|
46.1
|
|
$
|
110.9
|
|
-58.4%
|
|
$
|
260.9
|
|
$
|
335.0
|
|
-22.1%
|
|
|
Components of
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
insurance
|
(b)
|
$
|
0.15
|
|
$
|
0.18
|
|
-16.7%
|
|
$
|
0.52
|
|
$
|
0.57
|
|
-8.8%
|
|
|
Title
insurance
|
|
0.15
|
|
|
0.13
|
|
15.4
|
|
|
0.38
|
|
|
0.27
|
|
40.7
|
|
|
Corporate and
other
|
|
0.03
|
|
|
0.02
|
|
50.0
|
|
|
0.08
|
|
|
0.07
|
|
14.3
|
|
|
Subtotal
|
|
0.33
|
|
|
0.33
|
|
-
|
|
|
0.98
|
|
|
0.91
|
|
7.7
|
|
|
RFIG run-off
business
|
(c)
|
|
(0.24)
|
|
|
0.04
|
|
N/M
|
|
|
(0.19)
|
|
|
0.13
|
|
-246.2
|
|
|
Total
|
|
0.09
|
|
|
0.37
|
|
-75.7
|
|
|
0.79
|
|
|
1.04
|
|
-24.0
|
|
|
Net realized
investment gains (losses)
|
|
0.08
|
|
|
0.02
|
|
N/M
|
|
|
0.12
|
|
|
0.13
|
|
-7.7
|
|
|
Net income
(loss)
|
$
|
0.17
|
|
$
|
0.39
|
|
-56.4%
|
|
$
|
0.91
|
|
$
|
1.17
|
|
-22.2%
|
|
|
Cash dividends
paid per share
|
$
|
0.1900
|
|
$
|
0.1875
|
|
1.3%
|
|
$
|
0.5700
|
|
$
|
0.5625
|
|
1.3%
|
|
|
Ending book value
per share
|
|
|
|
|
|
|
|
|
$
|
18.09
|
|
$
|
17.13
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not
meaningful
|
|
(a)
|
Unaudited; All
amounts in this report are stated in millions except per share data
and percentages.
|
(b)
|
General
insurance pretax results for the quarter and nine months ended
September 30, 2017 include hurricane-related claim costs of $20.0
(accounting for a post-tax effect of $0.05 per diluted
share).
|
(c)
|
RFIG
Run-off pretax results for the quarter and nine months ended
September 30, 2017 include additional claim and related expense
provisions of $130.0 (accounting for a post-tax effect of $0.28 per
diluted share), applicable to the final settlements and probable
dispositions of all known litigated and other claim costs incurred
by the Company's run-off Financial Indemnity business during the
Great Recession years and their aftermath.
|
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. In recent years, asset
management operations have to a large extent been oriented toward
an enhancement of income from interest and dividends to counter a
perniciously low yield environment. The 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 generally provide pretax yields lower than
those of fully taxable corporate or U.S. Government fixed maturity
securities but tend to generate better post-tax yields.
General Insurance
Results – The table below shows the major elements effecting
this segment's performance for each of the periods reported
upon.
|
|
|
General Insurance
Group
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Net premiums
earned
|
$
|
801.3
|
|
$
|
732.0
|
|
9.5%
|
|
$
|
2,313.7
|
|
$
|
2,192.8
|
|
5.5%
|
Net investment
income
|
|
80.0
|
|
|
77.2
|
|
3.6
|
|
|
238.0
|
|
|
233.6
|
|
1.9
|
Other
income
|
|
20.4
|
|
|
27.2
|
|
-25.1
|
|
|
75.8
|
|
|
80.6
|
|
-5.9
|
Operating
revenues
|
|
901.8
|
|
|
836.5
|
|
7.8
|
|
|
2,627.6
|
|
|
2,507.1
|
|
4.8
|
Benefits and claim
costs
|
(a)
|
|
608.7
|
|
|
538.3
|
|
13.1
|
|
|
1,709.5
|
|
|
1,595.5
|
|
7.1
|
Sales and general
expenses
|
|
217.4
|
|
|
207.5
|
|
4.7
|
|
|
654.5
|
|
|
625.5
|
|
4.6
|
Interest and other
costs
|
|
15.8
|
|
|
14.6
|
|
8.2
|
|
|
47.2
|
|
|
42.8
|
|
10.4
|
Total operating
expenses
|
|
842.0
|
|
|
760.5
|
|
10.7
|
|
|
2,411.3
|
|
|
2,263.9
|
|
6.5
|
Pretax operating
income (loss)
|
(b)
|
$
|
59.7
|
|
$
|
75.9
|
|
-21.3%
|
|
$
|
216.2
|
|
$
|
243.1
|
|
-11.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit and claim
ratio
|
|
76.0%
|
|
|
73.5%
|
|
|
|
|
73.9%
|
|
|
72.8%
|
|
|
Expense
ratio
|
|
24.6
|
|
|
24.6
|
|
|
|
|
25.0
|
|
|
24.9
|
|
|
Composite underwriting
ratio
|
|
100.6%
|
|
|
98.1%
|
|
|
|
|
98.9%
|
|
|
97.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
___________
|
(a)
|
General insurance
pretax results for the quarter and nine months ended September 30,
2017 include hurricane-related claim costs of $20.0.
|
(b)
|
In connection with
the run-off mortgage guaranty ("MI") and consumer credit indemnity
("CCI") combination, $106.3 and $123.0 of pretax operating losses
for the third quarter and first nine months of 2017, and $5.1 and
$26.3 of pretax operating losses for the third quarter and first
nine months of 2016, respectively, 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.
|
Positive general insurance earned premiums trends for 2017 were
unevenly distributed among various insurance coverages and sources
of business. Gains continued to be registered most prominently in
commercial automobile (trucking), national accounts, home and auto
warranty, and in a new underwriting facility established in early
2015. On the other hand, premium growth continued to be constrained
by low volume in a large account contractors book of business faced
with a particularly competitive market place, and by reduced
opportunities in the gas and oil energy services field.
Net investment income rose modestly in both periods of 2017 even
though the yield environment continued to exhibit low returns on
both fixed maturity and high quality equity securities.
The ratio of claims and related settlement costs to earned
premiums rose for 2017 in comparison with the same periods of 2016.
Substantially all of the increase stemmed from the aforementioned
provision for hurricane-related claims. While current accident year
claim ratios reflected moderate year-over-year declines, these were
offset by unfavorable developments of prior years' reserves of 1.7
and 1.8 percentage points in this year's third quarter and first
nine months, respectively. This year's unfavorable developments
were concentrated in the Company's largest insurance coverages of
workers' compensation, commercial automobile (trucking), and
general liability. 2016 claim and related settlement costs were
reasonably stable for the quarterly and nine month periods with
such costs and related ratios largely unaffected by developments of
prior years' reserves. Expense ratios for both years' interim
periods were within range of the expected long-term operating
objective of 23 to 25 percent.
Quarterly and even annual claim provisions and the trends they
display may not be particularly meaningful in Old Republic's
long-term liability insurance mix of business. Absent significant
economic and insurance industry dislocations in the foreseeable
future, it is currently anticipated that reported claim ratios
could range within targeted averages in the high 60 percent to low
70 percent levels. The current mix of business should result in
expense ratios within the aforementioned range.
Title Insurance
Results – Pretax operating income for this year's interim
periods improved as both revenues and claim costs extended the
favorable trends of recent years.
|
|
|
|
Title Insurance
Group
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Net premiums and fees
earned
|
$
|
596.8
|
|
$
|
588.4
|
|
1.4%
|
|
$
|
1,670.5
|
|
$
|
1,587.2
|
|
5.3%
|
Net investment
income
|
|
9.1
|
|
|
8.9
|
|
2.9
|
|
|
27.9
|
|
|
27.0
|
|
3.5
|
Other
income
|
|
0.1
|
|
|
0.2
|
|
-63.4
|
|
|
0.5
|
|
|
1.0
|
|
-49.4
|
Operating
revenues
|
|
606.1
|
|
|
597.7
|
|
1.4
|
|
|
1,699.0
|
|
|
1,615.2
|
|
5.2
|
Claim
costs
|
|
12.3
|
|
|
30.5
|
|
-59.5
|
|
|
34.6
|
|
|
81.8
|
|
-57.7
|
Sales and general
expenses
|
|
524.9
|
|
|
506.8
|
|
3.6
|
|
|
1,485.6
|
|
|
1,403.0
|
|
5.9
|
Interest and other
costs
|
|
1.5
|
|
|
1.7
|
|
-11.3
|
|
|
5.8
|
|
|
5.7
|
|
0.9
|
Total operating
expenses
|
|
538.8
|
|
|
539.2
|
|
-0.1
|
|
|
1,526.1
|
|
|
1,490.6
|
|
2.4
|
Pretax operating
income (loss)
|
$
|
67.3
|
|
$
|
58.5
|
|
15.0%
|
|
$
|
172.8
|
|
$
|
124.5
|
|
38.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
|
2.1%
|
|
|
5.2%
|
|
|
|
|
2.1%
|
|
|
5.2%
|
|
|
Expense
ratio
|
|
87.9
|
|
|
86.1
|
|
|
|
|
88.9
|
|
|
88.3
|
|
|
Composite underwriting
ratio
|
|
90.0%
|
|
|
91.3%
|
|
|
|
|
91.0%
|
|
|
93.5%
|
|
|
The continuation of a generally positive mortgage rate
environment and reasonably strong housing and commercial property
markets were major factors in the year-over-year gain in premiums
and fees for 2017.
On the expense side of the ledger, claim costs were lower in the
face of declining claims activity since the Great Recession years.
Favorable developments of reserves established in prior years
further reduced the claim ratio by 2.1 percentage points in this
year's third quarter and first nine months. The ratio for last
year's related periods was unaffected by such developments. The
expense ratio for the periods reported upon remained generally
aligned with premiums and fees levels.
RFIG Run-off
Business Results – As summarized below, overall pretax
operating results for this year's interim periods were mostly
effected by additional claim and related expense provisions ($130.0
million) applicable to final settlements and probable dispositions
of all known litigated and other claim costs incurred during the
Great Recession years and their aftermath.
|
|
|
RFIG Run-off
Business
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
A. Mortgage
Insurance (MI)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
25.6
|
|
$
|
36.7
|
|
-30.2%
|
|
$
|
86.1
|
|
$
|
119.8
|
|
-28.1%
|
Net investment
income
|
|
5.1
|
|
|
5.4
|
|
-7.2
|
|
|
15.4
|
|
|
16.7
|
|
-7.8
|
Claim
costs
|
(a)
|
|
29.9
|
|
|
14.1
|
|
111.0
|
|
|
51.2
|
|
|
34.1
|
|
50.0
|
Pretax operating
income (loss)
|
$
|
(3.0)
|
|
$
|
23.8
|
|
-112.7%
|
|
$
|
35.7
|
|
$
|
87.9
|
|
-59.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
(a)
|
|
116.8%
|
|
|
38.6%
|
|
|
|
|
59.5%
|
|
|
28.5%
|
|
|
Expense
ratio
|
|
14.9
|
|
|
11.4
|
|
|
|
|
16.9
|
|
|
12.1
|
|
|
Composite underwriting
ratio
|
|
131.7%
|
|
|
50.0%
|
|
|
|
|
76.4%
|
|
|
40.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. Consumer Credit
Indemnity (CCI) (b)
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
4.5
|
|
$
|
3.7
|
|
22.0%
|
|
$
|
12.5
|
|
$
|
11.2
|
|
12.2%
|
Net investment
income
|
|
0.3
|
|
|
0.2
|
|
20.9%
|
|
|
1.0
|
|
|
0.8
|
|
23.6%
|
Benefits and claim
costs
|
(a)
|
|
111.1
|
|
|
8.9
|
|
N/M
|
|
|
135.9
|
|
|
37.8
|
|
N/M
|
Pretax operating
income (loss)
|
$
|
(106.7)
|
|
$
|
(5.4)
|
|
N/M
|
|
$
|
(124.1)
|
|
$
|
(27.4)
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
(a)
|
|
N/M
|
|
|
238.1%
|
|
|
|
|
N/M
|
|
|
337.3%
|
|
|
Expense
ratio
|
|
N/M
|
|
|
14.5
|
|
|
|
|
N/M
|
|
|
14.7
|
|
|
Composite underwriting
ratio
|
|
N/M
|
|
|
252.6%
|
|
|
|
|
N/M
|
|
|
352.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Total MI and
CCI run-off business:
|
|
|
|
|
|
|
|
|
Net premiums
earned
|
$
|
30.2
|
|
$
|
40.4
|
|
-25.3%
|
|
$
|
98.7
|
|
$
|
131.0
|
|
-24.7%
|
Net investment
income
|
|
5.4
|
|
|
5.7
|
|
-5.8%
|
|
|
16.4
|
|
|
17.5
|
|
-6.3
|
Benefits and claim
costs
|
(a)
|
|
141.0
|
|
|
23.1
|
|
N/M
|
|
|
187.1
|
|
|
71.9
|
|
160.0
|
Pretax operating
income (loss)
|
$
|
(109.7)
|
|
$
|
18.4
|
|
N/M
|
|
$
|
(88.3)
|
|
$
|
60.4
|
|
-246.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claim
ratio
|
(a)
|
|
N/M
|
|
|
57.2%
|
|
|
|
|
189.6%
|
|
|
54.9%
|
|
|
Expense
ratio
|
|
14.5%
|
|
|
11.7
|
|
|
|
|
16.6
|
|
|
12.3
|
|
|
Composite underwriting
ratio
|
|
N/M
|
|
|
68.9%
|
|
|
|
|
206.2%
|
|
|
67.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________
|
(a)
|
RFIG run-off
pretax results for the quarter and nine months ended September 30,
2017 include additional claim and related expense provisions of
$130.0 applicable to the final settlements and probable
dispositions of all known litigated and other claim costs incurred
by the Company's run-off Financial Indemnity business during the
Great Recession years and their aftermath. Of the total charge,
$23.0 related to mortgage guaranty claim costs, and $107.0 was
attributable to additional claim provisions in the consumer credit
indemnity run-off business.
|
(b)
|
In connection with
the run-off mortgage guaranty ("MI") and consumer credit indemnity
("CCI") combination, $106.3 and $123.0 of pretax operating losses
for the third quarter and first nine months of 2017, and $5.1 and
$26.3 of pretax operating losses for the third quarter and first
nine months of 2016, respectively, 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 of
earned premiums were posted by the combined MI and CCI lines. MI
investment income was also lower as reduced premium volume and
on-going claim payments effected downward pressures on the invested
asset base.
The declining premium base led to a higher claim ratio for 2017
though reported current accident year claim costs, absent the
charges referred to below for MI, were relatively level in
comparison to the related periods of 2016. Reductions in the
provision for current year losses emanating from a continuing drop
in newly reported delinquencies as well as improving cure rates
resulted in favorable developments of previously established claim
reserves. The developments led to reductions of the claim ratios by
60.2 and 39.8 percentage points in the third quarter and first nine
months of 2017, respectively. In the same respective periods of
2016, the claim ratio reductions amounted to 52.2 and 44.0
percentage points. As already indicated, however, MI claim costs
for 2017's interim periods rose most significantly due to the
$23.0 additional claim provision
which added 89.8 and 26.7 percentage points to the claim ratios for
the third quarter and first nine months of 2017.
MI operating costs and the related expense ratios were
negatively impacted in 2017's first nine months by charges related
to the partial termination of a facility lease.
2017 year-over-year operating performance comparisons for the
CCI portion of the Run-off business were most significantly
effected by the additional $107.0
claim provision. Excluding this charge, CCI's pretax operating
results would have reflected a minor gain in this year's third
quarter and a smaller loss of $17.1
for the first nine months of 2017.
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 corporate
services subsidiaries usually produce highly variable results.
Earnings variations posted by these elements of Old Republic's
business stem from volatility inherent to the small scale of the
life and accident insurance line, changes in net investment income,
and net interest charges pertaining to external and intra-system
financing arrangements. The dynamic period-to-period 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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net premiums
earned
|
$
|
5.0
|
|
$
|
4.4
|
|
$
|
14.4
|
|
$
|
14.0
|
Net investment
income
|
|
8.6
|
|
|
3.7
|
|
|
23.2
|
|
|
8.8
|
Other
income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1)
|
Operating
revenues
|
|
13.5
|
|
|
8.1
|
|
|
37.6
|
|
|
22.7
|
Benefits and claim
costs
|
|
4.2
|
|
|
3.1
|
|
|
13.5
|
|
|
12.7
|
Insurance
expenses
|
|
1.3
|
|
|
2.3
|
|
|
6.9
|
|
|
6.6
|
Corporate, interest
and other expenses - net
|
|
1.5
|
|
|
(1.2)
|
|
|
4.7
|
|
|
(5.6)
|
Total operating
expenses
|
|
7.0
|
|
|
4.2
|
|
|
25.1
|
|
|
13.8
|
Pretax operating
income (loss)
|
$
|
6.5
|
|
$
|
3.9
|
|
$
|
12.4
|
|
$
|
8.8
|
|
Consolidated
Results – The above summarized operating results of Old
Republic's segmented business are reflected in the following
consolidation.
|
|
|
ORI
Consolidated
|
|
Quarters Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Net premiums and fees
earned
|
$
|
1,433.4
|
|
$
|
1,365.4
|
|
5.0%
|
|
$
|
4,097.3
|
|
$
|
3,925.1
|
|
4.4%
|
Net investment
income
|
|
103.3
|
|
|
95.7
|
|
7.9
|
|
|
305.7
|
|
|
287.0
|
|
6.5
|
Other
income
|
|
20.4
|
|
|
27.5
|
|
-25.6
|
|
|
76.3
|
|
|
81.4
|
|
-6.3
|
Operating
revenues
|
|
1,557.2
|
|
|
1,488.7
|
|
4.6
|
|
|
4,479.4
|
|
|
4,293.6
|
|
4.3
|
Benefits and claim
costs
|
|
766.4
|
|
|
595.2
|
|
28.8
|
|
|
1,944.7
|
|
|
1,762.1
|
|
10.4
|
Sales and general
expenses
|
|
751.1
|
|
|
724.0
|
|
3.7
|
|
|
2,173.1
|
|
|
2,060.3
|
|
5.5
|
Interest and other
costs
|
|
15.8
|
|
|
12.6
|
|
25.1
|
|
|
48.3
|
|
|
34.0
|
|
42.0
|
Total operating
expenses
|
|
1,533.3
|
|
|
1,331.9
|
|
15.1
|
|
|
4,166.2
|
|
|
3,856.5
|
|
8.0
|
Pretax operating
income (loss)
|
|
23.8
|
|
|
156.7
|
|
-84.8
|
|
|
313.1
|
|
|
437.0
|
|
-28.3
|
Income taxes
(credits)
|
|
0.9
|
|
|
50.5
|
|
-98.1
|
|
|
89.6
|
|
|
139.8
|
|
-35.9
|
Net operating income
(loss)
|
|
22.8
|
|
|
106.2
|
|
-78.4
|
|
|
223.5
|
|
|
297.2
|
|
-24.8
|
Realized investment
gains (losses)
|
|
35.8
|
|
|
7.2
|
|
N/M
|
|
|
57.5
|
|
|
58.1
|
|
-1.1
|
Income taxes (credits)
on realized investment gains (losses)
|
|
12.5
|
|
|
2.5
|
|
N/M
|
|
|
20.1
|
|
|
20.3
|
|
-1.1
|
Net realized investment
gains (losses)
|
|
23.2
|
|
|
4.7
|
|
N/M
|
|
|
37.3
|
|
|
37.7
|
|
-1.1
|
Net income
(loss)
|
$
|
46.1
|
|
$
|
110.9
|
|
-58.4%
|
|
$
|
260.9
|
|
$
|
335.0
|
|
-22.1%
|
Benefit and claim
ratio
|
|
53.5%
|
|
|
43.6%
|
|
|
|
|
47.5%
|
|
|
44.9%
|
|
|
Expense
ratio
|
|
50.8
|
|
|
50.8
|
|
|
|
|
50.9
|
|
|
50.2
|
|
|
Composite underwriting
ratio
|
|
104.3%
|
|
|
94.4%
|
|
|
|
|
98.4%
|
|
|
95.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
operating cash flow
|
|
|
|
|
|
|
|
|
$
|
522.1
|
|
$
|
401.9
|
|
29.9%
|
Consolidated operating cash flow was additive to investable
funds and operating needs in the amount of $522.1 and $401.9
for the first nine months of 2017 and 2016, respectively. Excluding
inherently negative operating cash flows in the MI and CCI run-off
business, these amounts would be $598.6 and $488.3,
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:
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
Underwriting and
related services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All segments except
RFIG
|
$
|
51.5
|
|
$
|
61.0
|
|
-15.6%
|
|
$
|
160.6
|
|
$
|
141.1
|
|
13.8%
|
RFIG
run-off
|
|
(115.1)
|
|
|
12.6
|
|
N/M
|
|
|
(104.8)
|
|
|
42.9
|
|
N/M
|
Subtotal
|
|
(63.6)
|
|
|
73.6
|
|
-186.5
|
|
|
55.8
|
|
|
184.0
|
|
-69.7
|
Net investment
income
|
|
103.3
|
|
|
95.7
|
|
7.9
|
|
|
305.7
|
|
|
287.0
|
|
6.5
|
Interest and other
costs
|
|
(15.8)
|
|
|
(12.6)
|
|
25.1
|
|
|
(48.3)
|
|
|
(34.0)
|
|
42.0
|
Total
|
|
23.8
|
|
|
156.7
|
|
-84.8
|
|
|
313.1
|
|
|
437.0
|
|
-28.3
|
Realized investment
gains(losses)
|
|
35.8
|
|
|
7.2
|
|
N/M
|
|
|
57.5
|
|
|
58.1
|
|
-1.1
|
Consolidated pretax
income
|
$
|
59.6
|
|
$
|
164.0
|
|
-63.6%
|
|
$
|
370.7
|
|
$
|
495.2
|
|
-25.1%
|
|
Cash, Invested
Assets, and Shareholders' Equity – The table below shows Old
Republic's consolidated cash and invested assets as well as the
shareholders' equity balance at the dates shown.
|
|
|
|
Cash, Invested
Assets, and Shareholders' Equity
|
|
|
|
|
% Change
|
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Sept. '17/
|
|
Sept. '17/
|
|
|
2017
|
|
2016
|
|
2016
|
|
Dec. '16
|
|
Sept. '16
|
Cash and invested
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale
carried at fair value
|
|
$
|
12,493.2
|
|
$
|
12,021.0
|
|
$
|
12,121.9
|
|
3.9%
|
|
3.1%
|
Held to maturity
carried at amortized cost
|
|
|
1,073.0
|
|
|
974.8
|
|
|
748.5
|
|
10.1
|
|
43.4
|
Total per balance
sheet
|
|
$
|
13,566.3
|
|
$
|
12,995.8
|
|
$
|
12,870.5
|
|
4.4%
|
|
5.4%
|
Original cost basis of
all
|
|
$
|
12,764.3
|
|
$
|
12,360.3
|
|
$
|
12,146.1
|
|
3.3%
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
Total
|
|
$
|
4,730.0
|
|
$
|
4,471.6
|
|
$
|
4,446.1
|
|
5.8%
|
|
6.4%
|
|
Per common
share
|
|
$
|
18.09
|
|
$
|
17.20
|
|
$
|
17.13
|
|
5.2%
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
shareholders' equity per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity before items
below
|
|
$
|
16.40
|
|
$
|
15.96
|
|
$
|
15.64
|
|
2.8%
|
|
4.9%
|
Unrealized investment
gains (losses) and other accumulated comprehensive income
(loss)
|
|
|
1.69
|
|
|
1.24
|
|
|
1.49
|
|
|
|
|
Total
|
|
$
|
18.09
|
|
$
|
17.20
|
|
$
|
17.13
|
|
5.2%
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmented
composition of shareholders' equity per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding run-off
segment
|
|
$
|
16.71
|
|
$
|
15.93
|
|
$
|
15.87
|
|
4.9%
|
|
5.3%
|
RFIG run-off
segment
|
|
|
1.38
|
|
|
1.27
|
|
|
1.26
|
|
|
|
|
Consolidated
total
|
|
$
|
18.09
|
|
$
|
17.20
|
|
$
|
17.13
|
|
5.2%
|
|
5.6%
|
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 the insurance subsidiaries'
long-term obligations to policyholders and other beneficiaries, as
well as the 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 and hedge fund 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, 2017, the
consolidated investment portfolio reflected an allocation of
approximately 76 percent to fixed-maturity and short-term
investments, and 24 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 reflected in the
following table. As shown, these resulted mostly from net income,
dividend payments to shareholders, and changes in the value of
invested assets carried at fair value.
|
|
Shareholders'
Equity Per Share
|
|
|
Quarter
|
|
|
|
Year
|
|
|
Ended
|
|
Nine Months
Ended
|
|
Ended
|
|
|
Sept. 30,
|
|
September
30,
|
|
Dec. 31,
|
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
Beginning
balance
|
|
$
|
17.85
|
|
$
|
17.20
|
|
$
|
15.02
|
|
$
|
15.02
|
Changes in
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
(loss)
|
|
|
0.09
|
|
|
0.86
|
|
|
1.15
|
|
|
1.62
|
Net realized
investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
From sales
|
|
|
0.09
|
|
|
0.14
|
|
|
0.15
|
|
|
0.19
|
From
impairments
|
|
|
-
|
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
Subtotal
|
|
|
0.09
|
|
|
0.14
|
|
|
0.14
|
|
|
0.18
|
Net unrealized
investment gains (losses)
|
|
|
0.22
|
|
|
0.40
|
|
|
1.35
|
|
|
1.12
|
Total realized and
unrealized investment gains (losses)
|
|
|
0.31
|
|
|
0.54
|
|
|
1.49
|
|
|
1.30
|
Cash
dividends
|
|
|
(0.1900)
|
|
|
(0.5700)
|
|
|
(0.5625)
|
|
|
(0.7500)
|
Stock issuance,
foreign exchange, and other transactions
|
|
|
0.03
|
|
|
0.06
|
|
|
0.03
|
|
|
0.01
|
Net change
|
|
|
0.24
|
|
|
0.89
|
|
|
2.11
|
|
|
2.18
|
Ending
balance
|
|
$
|
18.09
|
|
$
|
18.09
|
|
$
|
17.13
|
|
$
|
17.20
|
Percentage change for
the period
|
|
|
1.3%
|
|
|
5.2%
|
|
|
14.0%
|
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization
– The following table indicates that Old Republic's
capitalization has risen since September 30, 2016 due to the
growing equity in the shareholders' account.
|
|
|
|
Capitalization
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2016
|
Debt:
|
|
|
|
|
|
|
|
|
|
3.75% Convertible
Senior Notes due 2018
|
|
$
|
549.1
|
|
$
|
547.8
|
|
$
|
547.3
|
4.875% Senior Notes
due 2024
|
|
|
396.1
|
|
|
395.6
|
|
|
395.5
|
3.875% Senior Notes
due 2026
|
|
|
545.0
|
|
|
544.6
|
|
|
544.4
|
ESSOP debt with an
average yield of 4.5%
|
|
|
4.2
|
|
|
8.1
|
|
|
8.1
|
Other miscellaneous
debt with an average yield of 2.4%
|
|
|
32.4
|
|
|
32.4
|
|
|
32.4
|
Total debt
|
|
|
1,526.9
|
|
|
1,528.7
|
|
|
1,528.0
|
Common shareholders'
equity
|
|
|
4,730.0
|
|
|
4,471.6
|
|
|
4,446.1
|
Total
capitalization
|
|
$
|
6,256.9
|
|
$
|
6,000.4
|
|
$
|
5,974.1
|
|
|
|
|
|
|
|
|
|
|
Capitalization
ratios:
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
24.4%
|
|
|
25.5%
|
|
|
25.6%
|
Common shareholders'
equity
|
|
|
75.6
|
|
|
74.5
|
|
|
74.4
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
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, 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, and for premium rate
changes and reserved claim costs to be quantified and emerge in
financial results with greater finality and effect.
Accompanying Financial Data and Other Information:
- 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: www.oldrepublic.com
Old Republic
International Corporation
|
SummaryFinancial Statements and Common
Stock Statistics (Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
September
30,
|
SUMMARY BALANCE
SHEETS:
|
|
2017
|
|
2016
|
|
2016
|
Assets:
|
|
|
|
|
|
|
|
|
|
Cash and fixed maturity
securities
|
|
$
|
10,297.2
|
|
$
|
9,973.1
|
|
$
|
9,955.1
|
Equity
securities
|
|
|
3,140.2
|
|
|
2,896.1
|
|
|
2,787.4
|
Other invested
assets
|
|
|
128.8
|
|
|
126.5
|
|
|
127.9
|
Cash and invested
assets
|
|
|
13,566.3
|
|
|
12,995.8
|
|
|
12,870.5
|
Accounts and premiums
receivable
|
|
|
1,589.8
|
|
|
1,390.2
|
|
|
1,508.6
|
Federal income tax
recoverable:
|
Current
|
|
|
-
|
|
|
14.9
|
|
|
27.2
|
Prepaid federal income
taxes
|
|
|
114.3
|
|
|
82.4
|
|
|
82.4
|
Reinsurance balances
recoverable
|
|
|
3,568.9
|
|
|
3,231.5
|
|
|
3,423.6
|
Sundry
assets
|
|
|
907.9
|
|
|
876.5
|
|
|
898.0
|
Total
|
|
$
|
19,747.4
|
|
$
|
18,591.6
|
|
$
|
18,810.6
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
|
$
|
2,308.6
|
|
$
|
2,035.0
|
|
$
|
2,162.0
|
Benefit and claim
reserves
|
|
|
9,694.4
|
|
|
9,206.0
|
|
|
9,247.0
|
Federal income tax
payable:
|
Current
|
|
|
25.2
|
|
|
-
|
|
|
-
|
|
Deferred
|
|
|
71.4
|
|
|
42.6
|
|
|
52.3
|
Debt
|
|
|
1,526.9
|
|
|
1,528.7
|
|
|
1,528.0
|
Sundry
liabilities
|
|
|
1,390.5
|
|
|
1,307.4
|
|
|
1,375.0
|
Shareholders'
equity
|
|
|
4,730.0
|
|
|
4,471.6
|
|
|
4,446.1
|
Total
|
|
$
|
19,747.4
|
|
$
|
18,591.6
|
|
$
|
18,810.6
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Nine Months
Ended
|
|
Fiscal Twelve Months
Ended
|
SUMMARY INCOME
STATEMENTS:
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net premiums and fees
earned
|
|
$
|
1,433.4
|
|
$
|
1,365.4
|
|
$
|
4,097.3
|
|
$
|
3,925.1
|
|
$
|
5,505.5
|
|
$
|
5,264.3
|
Net investment
income
|
|
|
103.3
|
|
|
95.7
|
|
|
305.7
|
|
|
287.0
|
|
|
405.7
|
|
|
386.8
|
Other income
|
|
|
20.4
|
|
|
27.5
|
|
|
76.3
|
|
|
81.4
|
|
|
102.1
|
|
|
108.3
|
Net realized investment
gains (losses)
|
|
|
35.8
|
|
|
7.2
|
|
|
57.5
|
|
|
58.1
|
|
|
72.2
|
|
|
72.4
|
Total
revenues
|
|
|
1,593.0
|
|
|
1,496.0
|
|
|
4,536.9
|
|
|
4,351.7
|
|
|
6,085.6
|
|
|
5,832.0
|
Benefits and
claims
|
|
|
766.4
|
|
|
595.2
|
|
|
1,944.7
|
|
|
1,762.1
|
|
|
2,530.4
|
|
|
2,386.4
|
Sales and general
expenses
|
|
|
751.1
|
|
|
724.0
|
|
|
2,173.1
|
|
|
2,060.3
|
|
|
2,929.1
|
|
|
2,763.9
|
Interest and other
costs
|
|
|
15.8
|
|
|
12.6
|
|
|
48.3
|
|
|
34.0
|
|
|
64.5
|
|
|
44.9
|
Total
expenses
|
|
|
1,533.3
|
|
|
1,331.9
|
|
|
4,166.2
|
|
|
3,856.5
|
|
|
5,524.1
|
|
|
5,195.3
|
Pretax income
(loss)
|
|
|
59.6
|
|
|
164.0
|
|
|
370.7
|
|
|
495.2
|
|
|
561.4
|
|
|
636.6
|
Income taxes
(credits)
|
|
|
13.4
|
|
|
53.1
|
|
|
109.7
|
|
|
160.2
|
|
|
168.5
|
|
|
211.0
|
Net income
(loss)
|
|
$
|
46.1
|
|
$
|
110.9
|
|
$
|
260.9
|
|
$
|
335.0
|
|
$
|
392.8
|
|
$
|
425.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss):
|
Basic
|
|
$
|
0.18
|
|
$
|
0.43
|
|
$
|
1.00
|
|
$
|
1.29
|
|
$
|
1.50
|
|
$
|
1.64
|
|
Diluted
|
|
$
|
0.17
|
|
$
|
0.39
|
|
$
|
0.91
|
|
$
|
1.17
|
|
$
|
1.37
|
|
$
|
1.49
|
Components of earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic, net operating
income (loss)
|
|
$
|
0.09
|
|
$
|
0.41
|
|
$
|
0.86
|
|
$
|
1.15
|
|
$
|
1.32
|
|
$
|
1.46
|
Realized investment
gains (losses)
|
|
|
0.09
|
|
|
0.02
|
|
|
0.14
|
|
|
0.14
|
|
|
0.18
|
|
|
0.18
|
Basic net income
(loss)
|
|
$
|
0.18
|
|
$
|
0.43
|
|
$
|
1.00
|
|
$
|
1.29
|
|
$
|
1.50
|
|
$
|
1.64
|
Diluted, net operating
income (loss)
|
|
$
|
0.09
|
|
$
|
0.37
|
|
$
|
0.79
|
|
$
|
1.04
|
|
$
|
1.21
|
|
$
|
1.33
|
Realized investment
gains (losses)
|
|
|
0.08
|
|
|
0.02
|
|
|
0.12
|
|
|
0.13
|
|
|
0.16
|
|
|
0.16
|
Diluted net income
(loss)
|
|
$
|
0.17
|
|
$
|
0.39
|
|
$
|
0.91
|
|
$
|
1.17
|
|
$
|
1.37
|
|
$
|
1.49
|
Cash dividends on
common stock
|
|
$
|
0.1900
|
|
$
|
0.1875
|
|
$
|
0.5700
|
|
$
|
0.5625
|
|
$
|
0.7575
|
|
$
|
0.7475
|
Book value per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18.09
|
|
$
|
17.13
|
Common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
|
261,380,896
|
|
|
259,414,230
|
|
|
261,181,220
|
|
|
259,227,605
|
|
|
261,076,356
|
|
|
259,112,587
|
Average
diluted
|
|
|
298,529,626
|
|
|
296,444,432
|
|
|
298,559,757
|
|
|
296,193,090
|
|
|
298,359,736
|
|
|
296,104,442
|
Actual, end of
period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
261,530,266
|
|
|
259,613,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY STATEMENTS
OF COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
Net income (loss) as
reported
|
|
$
|
46.1
|
|
$
|
110.9
|
|
$
|
260.9
|
|
$
|
335.0
|
|
$
|
392.8
|
|
$
|
425.6
|
Post-tax net unrealized
gains (losses)
|
|
|
57.3
|
|
|
0.1
|
|
|
105.5
|
|
|
350.1
|
|
|
47.6
|
|
|
323.7
|
Other
adjustments
|
|
|
8.7
|
|
|
(0.4)
|
|
|
12.2
|
|
|
7.4
|
|
|
6.9
|
|
|
7.2
|
Net
adjustments
|
|
|
66.1
|
|
|
(0.2)
|
|
|
117.7
|
|
|
357.5
|
|
|
54.6
|
|
|
331.0
|
Comprehensive income
(loss)
|
|
$
|
112.2
|
|
$
|
110.7
|
|
$
|
378.7
|
|
$
|
692.5
|
|
$
|
447.5
|
|
$
|
756.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
$19.74 billion and common
shareholders' equity of $4.73
billion, or $18.09 per share.
Its current stock market valuation is approximately $5.12 billion, or $19.43 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 coverages 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 2016, the
Company's total market return, with dividends reinvested, has grown
at a compounded annual rate of 10.0 percent per share. For the same
period, the total market return, with dividends reinvested, for the
S&P 500 Index has grown at a 9.2 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
9.5 percent per share, and the regular cash dividend has grown at a
9.0 percent annual compound rate. According to the most recent
edition of Mergent's Dividend Achievers, Old Republic is one of
just 96 qualifying companies, out of thousands considered, that
have posted at least 25 consecutive years of annual dividend
growth.
Special Conference Call Information
Old Republic has scheduled a special conference call at
3:00 p.m. ET (2:00 p.m. CT) today, to discuss its third quarter
2017 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
877-440-5788.
Interested parties may also listen to a replay of the
call through November 2, 2017 by
dialing 844-512-2921, passcode 6205089, or by accessing it on Old
Republic International's website through November 26, 2017.
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
2016 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 Old Republic's latest news releases and
other corporate documents:
Please visit us at
www.oldrepublic.com
Alternatively, please write or
call:
Investor Relations
Old Republic
International Corporation
307 North Michigan Avenue •
Chicago, IL
60601
312-346-8100
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
|
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content:http://www.prnewswire.com/news-releases/old-republic-reports-results-for-the-third-quarter-and-first-nine-months-of-2017-300543643.html
SOURCE Old Republic International Corporation