Accessibility StatementSkip Navigation CHICAGO, Sept. 29, 2025 /PRNewswire/ -- Old Republic International Corporation (NYSE: ORI) – today announced a new underwriting subsidiary to provide environmental insurance products. The new company, Old Republic Environmental, Inc. will deliver customized primary and excess liability solutions to businesses of varying scales and complexities. These products will be distributed through a carefully curated network of wholesale and retail brokers, ensuring that clients ...

Since December 31, 2020, Old Republic has returned over $4.2 billion to shareholders through regular and special cash dividends and share repurchases. The current annualized regular cash dividend rate of $1.16 per share represents a 9.4% increase from 2024, marks the 44th consecutive year that Old Republic has increased its regular cash dividend, and the 84th year of uninterrupted regular cash dividend payments. About Old Republic Old Republic is a leading specialty insurer that operates diverse property & ...

Dividend Announcement - Old Republic International Corporation declared a regular quarterly cash dividend of 29 cents per share, payable on September 15, 2025, to shareholders of record on September 5, 2025 [1] - The full year's cash dividend is projected to be $1.16 per share, representing a 9.4% increase from the $1.06 per share paid in 2024 [1] Dividend History - 2025 marks the 44th consecutive year that Old Republic has increased its regular cash dividend [2] - The company has maintained uninterrupted regular cash dividend payments for 84 years [2] Company Overview - Old Republic is a leading specialty insurer with diverse property & casualty and title insurance companies [3] - Founded in 1923 and a member of the Fortune 500, the company excels in underwriting and risk management services across the United States and Canada [3] - The specialized operating companies within Old Republic provide tailored solutions that distinguish the company in the market [3]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Presents Old Republic's unaudited consolidated financial statements and management's discussion for Q2 and 6M 2025 [ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201%20-%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Details Old Republic's unaudited consolidated financial statements for Q2 and 6M 2025, along with comprehensive accounting notes [CONSOLIDATED BALANCE SHEETS](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Old Republic's consolidated balance sheets, detailing assets, liabilities, and equity for June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Summary | Metric | June 30, 2025 ($ Millions) | December 31, 2024 ($ Millions) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Total Assets | 29,255.7 | 27,843.1 | | Total Liabilities | 23,052.1 | 22,224.1 | | Total Equity | 6,203.5 | 5,618.9 | - Total assets increased by **$1,412.6 million (5.1%)** from December 31, 2024, to June 30, 2025, primarily driven by increases in investments and accounts and notes receivable[7](index=7&type=chunk) - Shareholders' equity increased by **$566.7 million (10.1%)** from December 31, 2024, to June 30, 2025[7](index=7&type=chunk) [CONSOLIDATED STATEMENTS OF INCOME](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Presents Old Republic's consolidated statements of income for Q2 and 6M 2025 and 2024, detailing revenues, expenses, and net income Consolidated Statements of Income Summary | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Total Operating Revenues | 2,215.8 | 2,012.2 | 4,274.9 | 3,861.0 | | Total Net Investment Gains (Losses) | (7.3) | (140.5) | 47.7 | 26.6 | | Total Revenues | 2,208.5 | 1,871.7 | 4,322.6 | 3,887.6 | | Total Expenses | 1,948.3 | 1,758.3 | 3,754.6 | 3,375.5 | | Income Before Income Taxes | 260.1 | 113.3 | 567.9 | 512.1 | | Total Net Income | 208.4 | 91.8 | 454.5 | 408.6 | | Net Income to Shareholders | 204.4 | 91.8 | 449.5 | 408.6 | | Basic EPS | 0.83 | 0.35 | 1.84 | 1.53 | | Diluted EPS | 0.81 | 0.35 | 1.79 | 1.51 | - Net income to shareholders for Q2 2025 increased significantly to **$204.4 million** from **$91.8 million** in Q2 2024, primarily due to improved investment gains/losses[8](index=8&type=chunk) - Diluted EPS for Q2 2025 rose to **$0.81** from **$0.35** in Q2 2024[8](index=8&type=chunk) [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Details Old Republic's consolidated statements of comprehensive income for Q2 and 6M 2025 and 2024 Consolidated Statements of Comprehensive Income Summary | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Total Net Income As Reported | 208.4 | 91.8 | 454.5 | 408.6 | | Net Unrealized Gains (Losses) on Investments | 71.6 | 9.5 | 183.3 | (58.0) | | Foreign Currency Translation Adjustment and Other | 9.2 | (0.7) | 10.8 | (6.1) | | Total Other Comprehensive Income (Loss) | 80.8 | 8.8 | 194.2 | (64.2) | | Total Comprehensive Income | 289.3 | 100.6 | 648.8 | 344.4 | | Comprehensive Income to Shareholders | 285.3 | 100.6 | 643.7 | 344.4 | - Total comprehensive income to shareholders significantly increased to **$285.3 million** in Q2 2025 from **$100.6 million** in Q2 2024, largely driven by net unrealized gains on investments[10](index=10&type=chunk) [CONSOLIDATED STATEMENTS OF EQUITY](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EQUITY) Presents Old Republic's consolidated statements of equity for June 30, 2025, and June 30, 2024, detailing changes in equity components Consolidated Statements of Equity Summary | Equity Component | June 30, 2025 ($ Millions) | June 30, 2024 ($ Millions) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Common Stock | 248.4 | 258.4 | | Additional Paid-in Capital | 32.1 | 105.1 | | Retained Earnings | 5,853.8 | 5,912.3 | | Accumulated Other Comprehensive Income (Loss) | 91.7 | (196.6) | | Unallocated 401(k) Plan Shares | (40.6) | (52.6) | | Total Shareholders' Equity | 6,185.6 | 5,618.9 | - Accumulated Other Comprehensive Income (Loss) shifted from a loss of **$(196.6) million** in Q2 2024 to a gain of **$91.7 million** in Q2 2025, primarily due to net unrealized gains on securities[12](index=12&type=chunk) - Retained earnings increased to **$5,853.8 million** by June 30, 2025, from **$5,519.7 million** at the beginning of the six-month period, reflecting net income partially offset by common share dividends[12](index=12&type=chunk) [CONSOLIDATED STATEMENTS OF CASH FLOWS](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Details Old Republic's consolidated statements of cash flows for 6M 2025 and 2024, categorizing activities into operating, investing, and financing Consolidated Statements of Cash Flows Summary | Cash Flow Activity | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | | Net Cash Provided by Operating Activities | 365.5 | 396.9 | | Net Cash Provided by (Used in) Investing Activities | 287.6 | (72.8) | | Net Cash Used in Financing Activities | (676.9) | (354.3) | | Increase (Decrease) in Cash | (23.7) | (30.2) | | Cash, End of Period | 178.1 | 169.2 | - Cash flows from investing activities significantly improved, moving from a net outflow of **$(72.8) million** in 6M 2024 to a net inflow of **$287.6 million** in 6M 2025, primarily due to changes in investment purchases and sales[13](index=13&type=chunk) - Cash used in financing activities increased to **$(676.9) million** in 6M 2025, largely due to higher dividends on common shares and common stock repurchases[13](index=13&type=chunk) [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](index=8&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanations and disclosures supporting Old Republic's consolidated financial statements [Note 1 - Summary of Significant Accounting Policies](index=8&type=section&id=Note%201%20-%20Summary%20of%20Significant%20Accounting%20Policies) Outlines Old Republic's GAAP adherence, segment structure, and key accounting policies for investments, revenue, loss reserves, and pending FASB updates - The Company operates primarily through two segments: Specialty Insurance and Title Insurance; the RFIG Run-off business was sold on May 31, 2024, and its results are now reflected in Corporate & Other[15](index=15&type=chunk)[65](index=65&type=chunk) - Fixed income securities are classified as available for sale and reported at fair value, with changes reflected in shareholders' equity; equity securities are reported at fair value, with changes reflected as unrealized investment gains/losses in the income statement[21](index=21&type=chunk)[22](index=22&type=chunk) - Revenue recognition for Specialty Insurance premiums is on a pro-rata basis, while Title Insurance premiums and fees from direct operations are recognized at transaction closing; revenues from independent title agents are recognized upon receipt, which can have a lag[26](index=26&type=chunk)[27](index=27&type=chunk) - FASB ASU No. 2023-09 (Improvements to Income Tax Disclosures) is effective for fiscal years beginning after December 15, 2024, requiring further disaggregation of effective tax rate reconciliation and income taxes paid[18](index=18&type=chunk) - FASB ASU No. 2024-03 (Disaggregation of Income Statement Expenses) is effective for fiscal years beginning after December 15, 2026, requiring additional disclosure on the nature of expenses[19](index=19&type=chunk)[20](index=20&type=chunk) [Note 2 - Investments](index=10&type=section&id=Note%202%20-%20Investments) Details Old Republic's investment portfolio, including fair value measurements, net investment income, and gains/losses, with no impairment losses reported Fixed Income Securities by Type (June 30, 2025) | Fixed Income Securities by Type (June 30, 2025) | Amortized Cost ($ Millions) | Fair Value ($ Millions) | | :-------------------------------- | :-------------------------- | :---------------------- | | Government & Agency | 1,839.2 | 1,818.3 | | Municipal | 184.2 | 183.8 | | Corporate | 10,187.4 | 10,355.0 | | Total | 12,210.9 | 12,357.2 | Equity Securities (June 30, 2025) | Equity Securities (June 30, 2025) | Cost ($ Millions) | Fair Value ($ Millions) | | :-------------------------------- | :---------------- | :---------------------- | | Total Equity Securities | 1,422.8 | 2,567.8 | Net Investment Income | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Fixed income securities | 141.2 | 128.3 | 279.8 | 254.7 | | Equity securities | 20.9 | 19.2 | 41.7 | 40.0 | | Short-term investments | 11.8 | 19.6 | 23.8 | 36.8 | | Other investments | 2.8 | 7.8 | 7.6 | 14.9 | | Net investment income | 171.5 | 167.4 | 342.2 | 331.6 | - Net investment income increased by **2.4%** for Q2 2025 and **3.2%** for 6M 2025, primarily from fixed income securities[48](index=48&type=chunk) - Total net investment gains (losses) improved significantly from **$(140.5) million** in Q2 2024 to **$(7.3) million** in Q2 2025, and from **$26.6 million** in 6M 2024 to **$47.7 million** in 6M 2025[48](index=48&type=chunk) [Note 3 - Loss and Loss Adjustment Expenses](index=14&type=section&id=Note%203%20-%20Loss%20and%20Loss%20Adjustment%20Expenses) Details changes in aggregate reserves for loss and loss adjustment expenses, highlighting favorable prior year development for both segments Reserve Summary | Reserve Type | June 30, 2025 ($ Millions) | December 31, 2024 ($ Millions) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Gross reserves at beginning of period | 13,727.7 | 12,538.2 | | Net reserves at beginning of period | 7,920.6 | 7,560.4 | | Total incurred loss and loss adjustment expenses | 1,599.3 | 1,428.1 | | Total payments | 1,399.5 | 1,287.6 | | Gross reserves at end of period | 14,356.4 | 12,957.6 | - For 6M 2025, Specialty Insurance experienced net favorable development from accident years 2011-2020, partially offset by unfavorable development in 2021-2023, predominantly in workers' compensation, property, and commercial auto[50](index=50&type=chunk) - Title Insurance experienced favorable development in 6M 2025 largely within the 2020-2022 years[50](index=50&type=chunk) [Note 4 - Income Taxes](index=15&type=section&id=Note%204%20-%20Income%20Taxes) Discusses Old Republic's income tax positions and the impact of recent tax reform legislation, which is not expected to be material - The 'One Big Beautiful Bill Act' enacted on July 4, 2025, includes permanent extensions for immediate deduction of qualified business property and domestic research and experimental expenditures[54](index=54&type=chunk) - The Company does not expect the new tax legislation to have a material impact on its results of operations[54](index=54&type=chunk) - The Company is not currently under audit by the IRS, and 2021 and subsequent tax years remain open[53](index=53&type=chunk) [Note 5 - Net Income Per Share](index=15&type=section&id=Note%205%20-%20Net%20Income%20Per%20Share) Provides a reconciliation of net income and shares for basic and diluted EPS calculations, showing increases for Q2 and 6M 2025 Net Income Per Share Summary | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income to shareholders ($ Millions) | 204.4 | 91.8 | 449.5 | 408.6 | | Basic weighted-average shares | 244,801,566 | 260,796,757 | 244,343,845 | 266,341,589 | | Diluted adjusted weighted-average shares | 251,075,011 | 265,549,655 | 250,456,276 | 270,538,608 | | Basic EPS | $0.83 | $0.35 | $1.84 | $1.53 | | Diluted EPS | $0.81 | $0.35 | $1.79 | $1.51 | - Basic EPS increased by **137%** in Q2 2025 and **20%** in 6M 2025 compared to the prior year periods[56](index=56&type=chunk) - Diluted EPS increased by **131%** in Q2 2025 and **18.5%** in 6M 2025 compared to the prior year periods[56](index=56&type=chunk) [Note 6 - Credit Losses](index=15&type=section&id=Note%206%20-%20Credit%20Losses) Details Old Republic's recognition of credit losses on financial assets, primarily reinsurance recoverables and accounts receivable, with stable allowances Credit Allowance Summary | Credit Allowance Component | June 30, 2025 ($ Millions) | December 31, 2024 ($ Millions) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Reinsurance recoverables | 22.5 | 22.0 | | Accounts and notes receivable | 31.0 | 30.2 | - The Company's allowance for credit losses on available-for-sale fixed income securities was **$1.6 million** as of both June 30, 2025, and December 31, 2024[40](index=40&type=chunk) - The Company is not exposed to material concentrations of credit risks as to any one issuer of fixed income securities[61](index=61&type=chunk) [Note 7 - Debt](index=17&type=section&id=Note%207%20-%20Debt) Summarizes Old Republic's consolidated debt, consisting of Senior Notes with varying interest rates and maturity dates, and their fair values Senior Notes Summary | Senior Notes | Carrying Amount (June 30, 2025, $ Millions) | Fair Value (June 30, 2025, $ Millions) | | :-------------------------------- | :---------------------------------------- | :------------------------------------- | | 3.875% due 2026 | 549.3 | 546.3 | | 5.750% due 2034 | 396.4 | 412.4 | | 3.850% due 2051 | 643.5 | 463.9 | | Total Debt | 1,589.3 | 1,422.7 | - The total carrying amount of debt remained stable at **$1,589.3 million** as of June 30, 2025, compared to **$1,588.7 million** at December 31, 2024[62](index=62&type=chunk) [Note 8 - Common Stock Repurchases](index=17&type=section&id=Note%208%20-%20Common%20Stock%20Repurchases) Details Old Republic's share repurchase program, including shares repurchased and remaining authorization as of June 30, 2025 - The Board of Directors authorized a **$1.1 billion** share repurchase program on March 1, 2024[63](index=63&type=chunk) - For the first six months of 2025, **0.7 million shares** were repurchased for **$25.2 million** (average price of **$34.11**)[63](index=63&type=chunk) - As of July 31, 2025, **$188.1 million** remained under the current repurchase authorization[63](index=63&type=chunk) [Note 9 - Commitments and Contingent Liabilities](index=17&type=section&id=Note%209%20-%20Commitments%20and%20Contingent%20Liabilities) States that legal proceedings primarily arise from routine claim and related service matters, with no material non-claim litigation exposures - Legal proceedings against the Company are routine and pertain to claim and related service matters associated with insurance policies[64](index=64&type=chunk) - As of June 30, 2025, the Company had no material non-claim and related service litigation exposures[64](index=64&type=chunk) [Note 10 - Segment Information](index=17&type=section&id=Note%2010%20-%20Segment%20Information) Provides detailed financial information for Old Republic's Specialty Insurance and Title Insurance segments, including revenues, expenses, and combined ratios - The Company operates through two primary segments: Specialty Insurance and Title Insurance, managed separately due to differing customer, distribution, and economic perspectives[65](index=65&type=chunk) - Specialty Insurance's largest coverage is commercial auto (**41.7%** of net premiums earned in Q2 2025), followed by workers' compensation, property, and general liability[67](index=67&type=chunk)[143](index=143&type=chunk) - Management uses net operating income (net income excluding net investment gains/losses) as a non-GAAP measure to evaluate periodic and long-term results of insurance operations[71](index=71&type=chunk)[72](index=72&type=chunk) - The combined ratio is the primary performance measure for insurance operations within each segment, assessing overall profitability from underwriting activities[73](index=73&type=chunk) Segment Underwriting Income (Loss) | Segment Underwriting Income (Loss) | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Specialty Insurance | 119.9 | 85.1 | 246.1 | 190.9 | | Title Insurance | 6.9 | 30.2 | (5.2) | 16.7 | | Corporate & Other | (13.3) | (6.6) | (27.4) | (15.1) | | Consolidated | 113.6 | 108.6 | 213.4 | 192.5 | Segment Combined Ratio | Segment Combined Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Specialty Insurance | 90.7 % | 92.4 % | 90.2 % | 91.4 % | | Title Insurance | 99.0 % | 95.4 % | 100.4 % | 98.6 % | | Consolidated | 93.6 % | 93.5 % | 93.7 % | 93.8 % | [Note 11 - Subsequent Events](index=26&type=section&id=Note%2011%20-%20Subsequent%20Events) States that no subsequent events requiring adjustment or disclosure were identified through the financial statement issuance date - No subsequent events were identified that require adjustment or disclosure to the consolidated financial statements[86](index=86&type=chunk) [ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=27&type=section&id=ITEM%202%20-%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion and analysis of Old Republic's financial condition and results for 6M 2025 and 2024, covering consolidated and segment performance, investments, and critical accounting estimates [OVERVIEW](index=27&type=section&id=OVERVIEW) Highlights Old Republic's operations through Specialty and Title Insurance segments, emphasizing a long-term management philosophy for underwriting results and financial stability - Old Republic operates primarily through Specialty Insurance and Title Insurance segments[89](index=89&type=chunk) - The Company's business is managed for the long run, with a primary focus on achieving favorable underwriting results over cycles and maintaining a sound financial condition[92](index=92&type=chunk)[94](index=94&type=chunk) - Investment management aims for stability of income from interest and dividends, capital protection, and sufficient liquidity, rather than securities trading or capital gains[93](index=93&type=chunk) [FINANCIAL HIGHLIGHTS](index=28&type=section&id=FINANCIAL%20HIGHLIGHTS) Presents key consolidated financial results for Q2 and 6M 2025, showing significant increases in net income, net operating income per diluted share, and book value per share Financial Highlights Summary | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | % Change (QoQ) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | % Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :--------------- | :------------------- | :------------------- | :--------------- | | Net income | 204.4 | 91.8 | 122.7% | 449.5 | 408.6 | 10.0% | | Net income excluding investment gains (losses) | 209.2 | 202.4 | 3.3% | 410.9 | 387.2 | 6.1% | | Net operating income per diluted share | 0.83 | 0.76 | 9.2% | 1.64 | 1.43 | 14.7% | | Consolidated net premiums and fees earned | 1,994.6 | 1,797.4 | 11.0% | 3,835.7 | 3,440.1 | 11.5% | | Net investment income | 171.5 | 167.4 | 2.4% | 342.2 | 331.6 | 3.2% | | Consolidated combined ratio | 93.6% | 93.5% | 0.1 ppt | 93.7% | 93.8% | -0.1 ppt | | Book value per share | 25.14 | 22.84 (Dec 31, 2024) | 10.1% | 25.14 | 23.59 (June 30, 2024) | 6.6% | - Book value per share increased by **12.6%** since year-end 2024, inclusive of cash dividends declared[99](index=99&type=chunk) - Total capital returned to shareholders during Q2 2025 was **$71.8 million** in dividends[99](index=99&type=chunk) [DETAILED MANAGEMENT DISCUSSION AND ANALYSIS](index=35&type=section&id=DETAILED%20MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) Provides an in-depth analysis of Old Republic's financial performance, breaking down results by consolidated operations and individual segments [Consolidated Overview](index=35&type=section&id=Consolidated%20Overview) Details Old Republic's consolidated financial performance, highlighting growth in premiums, investment income, and stable combined ratios [Premiums & Fees](index=35&type=section&id=Premiums%20%26%20Fees) Analyzes consolidated net premiums and fees earned, showing growth driven by Specialty Insurance and modest increases in Title Insurance Premiums & Fees by Segment | Segment | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | % Change (QoQ) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | % Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :--------------- | :------------------- | :------------------- | :--------------- | | Specialty Insurance | 1,294.5 | 1,129.6 | 14.6% | 2,528.1 | 2,221.3 | 13.8% | | Title Insurance | 697.8 | 663.4 | 5.2% | 1,302.9 | 1,208.8 | 7.8% | | Corporate & Other | 2.3 | 4.3 | (46.6)% | 4.6 | 9.9 | (53.5)% | | Consolidated | 1,994.6 | 1,797.4 | 11.0% | 3,835.7 | 3,440.1 | 11.5% | - Consolidated net premiums and fees earned increased by **11.0%** in Q2 2025 and **11.5%** in 6M 2025, driven by strong growth in Specialty Insurance and modest growth in Title Insurance[125](index=125&type=chunk) [Net Investment Income](index=35&type=section&id=Net%20Investment%20Income) Examines consolidated net investment income trends, showing increases driven by higher investment yields despite a lower invested asset base Net Investment Income by Segment | Segment | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | % Change (QoQ) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | % Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :--------------- | :------------------- | :------------------- | :--------------- | | Specialty Insurance | 149.9 | 132.9 | 12.8% | 299.9 | 264.0 | 13.6% | | Title Insurance | 17.3 | 15.5 | 11.8% | 34.0 | 31.2 | 9.2% | | Corporate & Other | 4.2 | 19.0 | (77.5)% | 8.2 | 36.4 | (77.4)% | | Consolidated | 171.5 | 167.4 | 2.4% | 342.2 | 331.6 | 3.2% | - Consolidated net investment income increased by **2.4%** in Q2 2025 and **3.2%** in 6M 2025, driven by higher investment yields, partially offset by a lower invested asset base due to capital returns[128](index=128&type=chunk) [Loss and Loss Adjustment Expenses](index=36&type=section&id=Loss%20and%20Loss%20Adjustment%20Expenses) Analyzes consolidated loss ratios, reflecting a stable trend and the impact of business mix shifts and prior year loss reserve development Consolidated Loss Ratios | Loss Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Specialty Insurance | 62.5% | 64.3% | 62.1% | 63.5% | | Title Insurance | 2.9% | 2.3% | 2.8% | 2.3% | | Consolidated loss ratio | 41.6% | 41.3% | 41.9% | 41.8% | | Provision for current year insured events | 43.7% | 43.5% | 44.2% | 44.1% | | Net favorable development (prior years) | (2.1)% | (2.2)% | (2.3)% | (2.3)% | - The consolidated loss ratio remained stable, reflecting a shift in business mix towards Specialty Insurance[131](index=131&type=chunk) - Net favorable prior year loss reserve development remained nearly flat in Q2 and 6M 2025 compared to 2024[131](index=131&type=chunk) [Underwriting, Acquisition, and Other Expenses](index=37&type=section&id=Underwriting%2C%20Acquisition%2C%20and%20Other%20Expenses) Examines consolidated expense ratios, reflecting the changing mix of coverages, business production costs, and investments in new initiatives Consolidated Expense Ratios | Expense Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Specialty Insurance | 28.2% | 28.1% | 28.1% | 27.9% | | Title Insurance | 96.1% | 93.1% | 97.6% | 96.3% | | Consolidated | 52.0% | 52.2% | 51.8% | 52.0% | - Consolidated expense ratios reflect the changing mix of coverages and costs associated with business production[133](index=133&type=chunk) - Expense ratios are in line with expectations, benefiting from scale due to earned premium growth, offset by start-up costs for new underwriting subsidiaries and IT investments[134](index=134&type=chunk) [Combined Ratios](index=38&type=section&id=Combined%20Ratios) Analyzes consolidated combined ratios, indicating consistent underwriting performance across Q2 and 6M 2025 and 2024 Consolidated Combined Ratios | Combined Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Specialty Insurance | 90.7% | 92.4% | 90.2% | 91.4% | | Title Insurance | 99.0% | 95.4% | 100.4% | 98.6% | | Consolidated | 93.6% | 93.5% | 93.7% | 93.8% | - The consolidated combined ratio remained stable at **93.6%** for Q2 2025 and **93.7%** for 6M 2025, indicating consistent underwriting performance[135](index=135&type=chunk) [Net Investment Gains (Losses)](index=38&type=section&id=Net%20Investment%20Gains%20(Losses)) Details consolidated net investment gains and losses, showing significant improvement in Q2 2025 compared to the prior year Net Investment Gains (Losses) Summary | Investment Gains (Losses) | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Realized from actual transactions | (2.4) | (51.7) | 34.9 | 131.7 | | Impairment losses | — | (2.4) | — | (5.4) | | Unrealized from changes in fair value of equity securities | (4.9) | (86.3) | 12.7 | (99.6) | | Total investment gains (losses) | (7.3) | (140.5) | 47.7 | 26.6 | - Total investment gains (losses) significantly improved from a loss of **$(140.5) million** in Q2 2024 to a loss of **$(7.3) million** in Q2 2025[138](index=138&type=chunk) - Realized gain/loss activity in 2025 was primarily related to funding capital returns (share repurchases and special dividends), while 2024 activity was driven by portfolio management and tax planning[138](index=138&type=chunk) [Income Taxes](index=38&type=section&id=Income%20Taxes) Examines the effective consolidated income tax rate, noting its stability due to varying proportions of pretax operating income from tax-preferred investment income Effective Consolidated Income Tax Rate | Effective Consolidated Income Tax Rate | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Effective Tax Rate | 19.9% | 19.0% | 20.0% | 20.2% | - The effective consolidated income tax rate remained stable, primarily reflecting varying proportions of pretax operating income from partially tax-preferred investment income[141](index=141&type=chunk) [Specialty Insurance](index=39&type=section&id=Specialty%20Insurance) Details the Specialty Insurance segment's strong growth and profitability, driven by premium rate increases, high renewal retention, and new underwriting subsidiaries [Summary Underwriting Results](index=39&type=section&id=Summary%20Underwriting%20Results) Presents key underwriting results for Specialty Insurance, showing increased income and an improved combined ratio for Q2 and 6M 2025 Specialty Insurance Underwriting Summary | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | % Change (QoQ) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | % Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :--------------- | :------------------- | :------------------- | :--------------- | | Net premiums written | 1,361.0 | 1,247.2 | 9.1% | 2,633.1 | 2,404.4 | 9.5% | | Net premiums earned | 1,294.5 | 1,129.6 | 14.6% | 2,528.1 | 2,221.3 | 13.8% | | Segment underwriting income | 119.9 | 85.1 | 40.9% | 246.1 | 190.9 | 28.9% | | Combined ratio | 90.7% | 92.4% | -1.7 ppt | 90.2% | 91.4% | -1.2 ppt | - Specialty Insurance's underwriting income increased by **40.9%** in Q2 2025 and **28.9%** in 6M 2025, reflecting successful specialty strategy and operational excellence[142](index=142&type=chunk) - The combined ratio improved to **90.7%** in Q2 2025 and **90.2%** in 6M 2025, nearing the targeted 90-95% range over a full underwriting cycle[109](index=109&type=chunk)[142](index=142&type=chunk) [Premiums & Fees](index=39&type=section&id=Premiums%20%26%20Fees) Analyzes Specialty Insurance's net premiums earned by coverage type, highlighting growth drivers and areas of decline Specialty Insurance Net Earned Premiums by Coverage Type | Coverage Type | Q2 2025 Net Earned Premiums | Q2 2024 Net Earned Premiums | 6M 2025 Net Earned Premiums | 6M 2024 Net Earned Premiums | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Commercial auto | 41.7% | 42.3% | 41.8% | 42.1% | | Workers' compensation | 17.5% | 18.7% | 17.5% | 18.3% | | Property | 13.2% | 12.3% | 13.3% | 12.3% | | General liability | 8.1% | 7.5% | 8.1% | 7.4% | | Financial indemnity | 7.5% | 6.5% | 7.4% | 7.1% | | Home and auto warranty | 6.1% | 6.6% | 6.4% | 6.7% | | Other coverages | 5.9% | 6.1% | 5.5% | 6.1% | - Net premiums earned increased by **14.6%** in Q2 2025 and **13.8%** in 6M 2025, driven by premium rate increases, high renewal retention, and new business production[144](index=144&type=chunk) - Premium growth was most pronounced in commercial auto, property, and general liability, while Canadian coverages, public D&O, and home warranty premiums declined[144](index=144&type=chunk) [Loss and Loss Adjustment Expenses](index=40&type=section&id=Loss%20and%20Loss%20Adjustment%20Expenses) Examines Specialty Insurance's loss ratios by coverage type, reflecting favorable prior year development and improved current year loss ratios Specialty Insurance Loss Ratios by Coverage Type | Coverage Type Loss Ratio | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Commercial auto | 70.3% | 72.3% | 70.3% | 72.1% | | Workers' compensation | 48.5% | 50.7% | 53.5% | 48.9% | | Property | 51.9% | 53.2% | 50.6% | 56.2% | | Financial indemnity | 56.4% | 56.2% | 54.0% | 52.2% | | General liability | 74.0% | 67.6% | 67.4% | 70.7% | | Home and auto warranty | 60.9% | 67.9% | 55.9% | 62.4% | | All coverages | 62.5% | 64.3% | 62.1% | 63.5% | - Overall loss ratios for Specialty Insurance in Q2 and 6M 2025 reflect slightly higher favorable prior year loss reserve development and improved current year loss ratios[146](index=146&type=chunk) - Favorable development came primarily from workers' compensation, commercial auto, and property, while general liability showed net unfavorable development[147](index=147&type=chunk)[149](index=149&type=chunk) [Sales and General Expenses](index=40&type=section&id=Sales%20and%20General%20Expenses) Discusses Specialty Insurance's expense ratios, noting alignment with expectations despite start-up costs and IT investments, offset by earned premium growth - Expense ratios are in line with expectations, including start-up costs for new underwriting subsidiaries and investments in information technology, offset by benefits from earned premium growth[148](index=148&type=chunk) - Specialty Insurance has launched four new underwriting subsidiaries in the last four years and is investing in modernizing core systems and AI initiatives[148](index=148&type=chunk) [Title Insurance](index=41&type=section&id=Title%20Insurance) Details the Title Insurance segment's premium growth but elevated combined ratios due to market conditions, lower favorable loss development, and increased expenses [Summary Underwriting Results](index=41&type=section&id=Summary%20Underwriting%20Results) Presents key underwriting results for Title Insurance, showing decreased income and an increased combined ratio for Q2 and 6M 2025 Title Insurance Underwriting Summary | Metric | Q2 2025 ($ Millions) | Q2 2024 ($ Millions) | % Change (QoQ) | 6M 2025 ($ Millions) | 6M 2024 ($ Millions) | % Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :--------------- | :------------------- | :------------------- | :--------------- | | Total premiums and fees | 697.8 | 663.4 | 5.2% | 1,302.9 | 1,208.8 | 7.8% | | Segment underwriting income (loss) | 6.9 | 30.2 | (77.2)% | (5.2) | 16.7 | (131.1)% | | Combined ratio | 99.0% | 95.4% | 3.6 ppt | 100.4% | 98.6% | 1.8 ppt | - Title Insurance's underwriting income decreased significantly, resulting in a loss for 6M 2025, and the combined ratio increased to **99.0%** in Q2 2025 and **100.4%** in 6M 2025[150](index=150&type=chunk) - The segment targets combined ratios between **90% to 95%** over a full underwriting cycle[113](index=113&type=chunk) [Premiums & Fees](index=41&type=section&id=Premiums%20%26%20Fees) Analyzes Title Insurance's net premiums and fees earned by production source, highlighting growth in agency-produced revenues and commercial premiums Title Insurance Premium & Fee Production by Source | Production Source | Q2 2025 Premium & Fee Production | Q2 2024 Premium & Fee Production | 6M 2025 Premium & Fee Production | 6M 2024 Premium & Fee Production | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Direct Operations | 22.8% | 24.2% | 22.5% | 23.6% | | Independent Title Agents | 77.2% | 75.8% | 77.5% | 76.3% | - Net premiums and fees earned increased by **5.2%** in Q2 2025 and **7.8%** in 6M 2025, with agency-produced revenues growing **7%** and directly produced revenues remaining relatively flat[152](index=152&type=chunk) - Commercial premiums represented **23%** of net premiums earned in Q2 2025, up from **21%** in Q2 2024[152](index=152&type=chunk) [Loss and Loss Adjustment Expenses](index=42&type=section&id=Loss%20and%20Loss%20Adjustment%20Expenses) Examines Title Insurance's loss ratios, noting stable low single-digit figures but a lower level of favorable prior year loss reserve development in 2025 - Title Insurance loss ratios remained in the low single digits, but Q2 and 6M 2025 reflect a lower level of favorable prior year loss reserve development compared to 2024[155](index=155&type=chunk) [Sales and General Expenses](index=42&type=section&id=Sales%20and%20General%20Expenses) Discusses Title Insurance's expense ratios, including the impact of litigation settlement expenses and higher agent commissions due to business mix shifts - Q2 and 6M 2025 expense ratios include approximately **$15 million** in litigation settlement expenses (**2.1 and 1.1 points**, respectively) and higher agent commissions due to a shift in business mix[112](index=112&type=chunk)[156](index=156&type=chunk) [FINANCIAL CONDITION](index=42&type=section&id=FINANCIAL%20CONDITION) Old Republic maintains a strong financial condition, supported by diverse specialty businesses, a conservatively managed balance sheet, and an A+ rating from A.M. Best - ORI's business model is resilient, supported by **17 diverse P&C subsidiary companies** within Specialty and Title Insurance, each specializing in niche markets[158](index=158&type=chunk) - The Company maintains a strong balance sheet, reflected by an **A+ rating** from A.M. Best[158](index=158&type=chunk) Balance Sheet Metrics | Balance Sheet Metric | June 30, 2025 ($ Millions) | December 31, 2024 ($ Millions) | | :-------------------------------- | :-------------------------- | :----------------------------- | | Total investments | 16,169.5 | 16,079.0 | | Total assets | 29,255.7 | 27,843.1 | | Long-term debt | 1,589.3 | 1,588.7 | | Shareholders' equity | 6,185.6 | 5,618.9 | | Book value per share | 25.14 | 22.84 | | Debt to equity ratio | 25.7% | 28.3% | - Total assets increased by **5.1%** since year-end 2024, and shareholders' equity increased by **10.1%**, resulting in an improved debt-to-equity ratio of **25.7%**[159](index=159&type=chunk) - Book value per share increased by **12.6%** during the first six months of 2025, inclusive of cash dividends declared, driven by strong net operating income and higher investment portfolio gains[159](index=159&type=chunk)[160](index=160&type=chunk) Drivers of Growth in Book Value Including Dividends | Drivers of Growth in Book Value Including Dividends | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | | Net operating income | 7.4% | 6.2% | | Realized investment gains | 0.5% | 1.6% | | Unrealized from changes in fair value of equity securities | 3.5% | (2.2)% | | Other | 1.3% | (2.1)% | | Total | 12.6% | 3.5% | - The Company has paid a regular cash dividend without interruption since 1942 and has raised the regular annual cash dividend for each of the past **44 years**[180](index=180&type=chunk) [Investment Portfolio](index=43&type=section&id=Investment%20Portfolio) Describes Old Republic's investment portfolio, primarily consisting of investment-grade, marketable securities, with conservative management practices - The investment portfolio primarily consists of investment-grade, marketable securities, with extremely limited exposure to high-risk or illiquid asset classes[164](index=164&type=chunk) - The Company does not use derivative financial instruments for hedging or enhancing returns, nor does it engage in options or securities lending[166](index=166&type=chunk) Fixed Income Securities Credit Quality | Fixed Income Securities Credit Quality | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Aaa | 1.8% | 18.0% | | Aa | 24.3% | 9.4% | | A | 41.1% | 40.5% | | Baa | 31.5% | 30.7% | | Total investment grade | 98.7% | 98.6% | | Non-investment grade or non-rated | 1.3% | 1.4% | | Total | 100.0% | 100.0% | - The shift in credit quality for fixed income securities is largely due to the downgrade of U.S. Treasury Notes by several major credit rating agencies[170](index=170&type=chunk) - The average maturity of fixed income securities was **4.6 years**, and the duration was **3.9 years** as of June 30, 2025[176](index=176&type=chunk)[177](index=177&type=chunk) [Other Assets](index=46&type=section&id=Other%20Assets) Discusses the Company's other assets, primarily current receivables and reinsurance recoverable balances deemed collectible - Substantially all of the Company's receivables are current[183](index=183&type=chunk) - Reinsurance recoverable balances are deemed recoverable from solvent reinsurers or have allowances for estimated credit losses[183](index=183&type=chunk) [Reinsurance Programs](index=46&type=section&id=Reinsurance%20Programs) Describes Old Republic's reinsurance programs, used to manage capacity and limit maximum losses by ceding premiums and liabilities to other insurers - Old Republic cedes a portion of its premiums and liabilities to other insurers and reinsurers to manage capacity and limit maximum losses, a common practice in the insurance industry[185](index=185&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=46&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) Highlights the establishment of loss and loss adjustment expense reserves as the most critical accounting estimate, acknowledging potential differences between estimates and actual outcomes - The most critical accounting estimate relates to the establishment of reserves for losses and loss adjustment expenses, which is a complex and dynamic process[187](index=187&type=chunk)[188](index=188&type=chunk) - Actual experienced outcomes can differ from estimates, potentially affecting future reported revenues, expenses, net income or loss, and financial condition[187](index=187&type=chunk) - Management believes its overall reserving practices have consistently resulted in reasonable approximations of ultimate net costs, but no guarantee is made that ultimate losses will not differ significantly[132](index=132&type=chunk) [ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=48&type=section&id=ITEM%203%20-%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Identifies Old Republic's primary market risks as interest rate and equity price risk, noting no material changes from prior disclosures - Old Republic's primary market risks are interest rate risk (fixed income securities) and equity price risk (equity securities)[196](index=196&type=chunk) - The Company has no material foreign exchange or commodity risk[196](index=196&type=chunk) - Market risk exposures at June 30, 2025, have not materially changed from those identified in the 2024 Annual Report on Form 10-K[197](index=197&type=chunk) [ITEM 4 - CONTROLS AND PROCEDURES](index=48&type=section&id=ITEM%204%20-%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of Old Republic's disclosure controls and procedures as of June 30, 2025, with no material changes in internal control over financial reporting - The Company's disclosure controls and procedures were evaluated and concluded to be effective as of June 30, 2025[198](index=198&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[199](index=199&type=chunk) [PART II - OTHER INFORMATION](index=49&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Presents other required information, including legal proceedings, risk factors, equity sales, and exhibits [ITEM 1 - LEGAL PROCEEDINGS](index=49&type=section&id=ITEM%201%20-%20LEGAL%20PROCEEDINGS) Incorporates information on commitments and contingent liabilities from Note 9, indicating no material non-claim related litigation exposures - Information on legal proceedings is incorporated from Note 9, which states no material non-claim and related service litigation exposures existed as of June 30, 2025[64](index=64&type=chunk)[202](index=202&type=chunk) [ITEM 1A - RISK FACTORS](index=49&type=section&id=ITEM%201A%20-%20RISK%20FACTORS) States that there have been no material changes to the risk factors previously disclosed in Old Republic's 2024 Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Company's 2024 Annual Report on Form 10-K have occurred[203](index=203&type=chunk) [ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=49&type=section&id=ITEM%202%20-%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Summarizes share repurchase activity for Q2 2025, noting no repurchases during the quarter and remaining authorization under the program Share Repurchase Activity | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares That May Yet be Purchased ($ Millions) | | :-------------------------------- | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------- | | April 1 - April 30, 2025 | — | — | 206.2 | | May 1 - May 31, 2025 | — | — | 206.2 | | June 1 - June 30, 2025 | — | — | 206.2 | | Total | — | — | 206.2 | - No shares were repurchased during the second quarter of 2025 under the **$1.1 billion** share repurchase program[204](index=204&type=chunk) [ITEM 5 - OTHER INFORMATION](index=49&type=section&id=ITEM%205%20-%20OTHER%20INFORMATION) States that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025[205](index=205&type=chunk) [ITEM 6 - EXHIBITS](index=50&type=section&id=ITEM%206%20-%20EXHIBITS) Lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL-related documents - Exhibits include certifications by the CEO and CFO (Craig R. Smiddy and Frank J. Sodaro) pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[206](index=206&type=chunk) - XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, and Presentation Linkbase are also filed as exhibits[206](index=206&type=chunk) [SIGNATURE](index=51&type=section&id=SIGNATURE) Contains the signature of Frank J. Sodaro, Senior Vice President, Chief Financial Officer, and Principal Accounting Officer, certifying the report - The report is signed by Frank J. Sodaro, Senior Vice President, Chief Financial Officer, and Principal Accounting Officer, on August 1, 2025[209](index=209&type=chunk) [EXHIBIT INDEX](index=52&type=section&id=EXHIBIT%20INDEX) Provides a detailed index of all exhibits included in the Form 10-Q, reiterating certifications and XBRL documents - The exhibit index lists certifications by the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and various XBRL taxonomy files (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)[211](index=211&type=chunk)

Old Republic International (ORI) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual ...

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ORI has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.06. Finally, our model also underscores that ORI has a P/CF ratio of 10.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their s ...

Core Insights - Old Republic International Corporation (ORI) has a strong business model that has delivered market-beating returns for decades, operating for over a century in niche commercial insurance offerings [1] Group 1: Company Overview - ORI has maintained a unique position within the commercial insurance sector, which contributes to its strong performance [1] - The company has consistently outperformed the S&P 500 index since 2020, indicating robust portfolio management [1] Group 2: Investment Philosophy - The investment approach focuses on evaluating companies as businesses rather than mere stock tickers, seeking opportunities where the market has significantly mispriced them [1] - The insights gained from renowned investors such as Warren Buffet and Charlie Munger have influenced the investment strategy [1]

Financial Data and Key Metrics Changes - The company reported consolidated pretax operating income of $267.5 million for Q2 2025, an increase from $253.8 million in Q2 2024, reflecting strong growth and profitability [5] - Net operating income for the quarter was $209 million, up from $202 million year-over-year, with a per share increase of 9% from $0.76 to $0.83 [10] - The consolidated combined ratio was 93.6%, slightly up from 93.5% in the same quarter last year [6] Business Line Data and Key Metrics Changes - Specialty insurance net premiums earned grew by 14.6% in Q2 2025, with pretax operating income rising to $253.7 million from $202.5 million in Q2 2024 [6] - Title insurance premiums and fees earned increased by 5.2% year-over-year, but pretax operating income decreased to $24.2 million from $46 million [7][17] - The combined ratio for title insurance rose to 99% from 95.4% in the previous year, primarily due to increased legal settlement costs [18] Market Data and Key Metrics Changes - The title insurance segment faced challenges due to higher mortgage interest rates and a slow real estate market, impacting overall performance [6][17] - The company noted that commercial premiums in title insurance increased to 23% of earned premiums, up from 21% in the previous year [17] Company Strategy and Development Direction - The company continues to invest in new specialty underwriting subsidiaries, technology, and talent to enhance its competitive edge [8] - Management emphasized a focus on profitability in the title insurance segment despite challenging market conditions, aiming to improve the combined ratio [19][62] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth and profitability of the specialty insurance segment, supported by strong renewal retention ratios and rate increases [13][15] - The company is actively exploring AI tools and data analytics to improve decision-making and operational efficiency [58][60] Other Important Information - The company paid $71 million in regular cash dividends during the quarter and has over $200 million remaining in its current share repurchase program [12] - The annualized operating return on beginning equity improved to 14.6% from 12.1% year-over-year, reflecting effective capital management [19] Q&A Session Summary Question: Can you provide more detail about retention across different lines of business? - Management reported strong renewal retention ratios above 85% across all lines of business, attributing this to their value proposition focused on service rather than price [25] Question: How is the competition affecting the larger account business? - Management acknowledged increased competition but noted their focus on non-catastrophic property, which differentiates them from peers heavily involved in large catastrophic exposures [28] Question: What are your views on the title insurance rate decrease in Texas? - Management indicated that the rate decrease has not yet taken effect due to legal challenges and that they believe their rates remain adequate [38] Question: Why was there no stock repurchase in the last quarter? - Management explained that they had recently issued a special dividend and are mindful of market prices relative to book value when considering share repurchases [42][44] Question: What is the investment outlook given current cash flow and yields? - Management expects no dramatic improvements in new money rates compared to existing yields, indicating a tightening trend [46][47] Question: Can you discuss the specialty insurance segment's combined ratios? - Management expects the combined ratio to remain in the 90% to 95% range, primarily due to their focus on casualty business and conservative loss reserving [52][55] Question: How is the company implementing AI in its operations? - Management is exploring various AI tools and has hired an AI leader to enhance decision-making and efficiency through data analytics [58][60] Question: Will mortgage rates need to fall for combined ratios to improve in title insurance? - Management is actively looking for internal efficiencies to improve margins, regardless of market conditions, while aiming to bring the combined ratio below 95% [61][62]

Financial Data and Key Metrics Changes - The company reported consolidated pretax operating income of $267.5 million for Q2 2025, an increase from $253.8 million in Q2 2024, reflecting strong growth and profitability [5] - Net operating income for the quarter was $209 million, up from $202 million year-over-year, with a per-share increase of 9% from $0.76 to $0.83 [10] - The consolidated combined ratio was 93.6%, slightly up from 93.5% in the same quarter last year [6] Business Line Data and Key Metrics Changes - Specialty insurance net premiums earned grew by 14.6% in Q2 2025, with pretax operating income rising to $253.7 million from $202.5 million in the previous year [6] - Title insurance premiums and fees earned increased by 5.2% year-over-year, but pretax operating income decreased to $24.2 million from $46 million [7][18] - The combined ratio for title insurance rose to 99% from 95.4% in Q2 2024, primarily due to increased legal settlement costs [19] Market Data and Key Metrics Changes - The title insurance segment faced challenges due to higher mortgage interest rates and a slow real estate market, impacting overall performance [6][18] - Despite the challenging environment, the company reported a 5% increase in premium revenue from title insurance operations [16] Company Strategy and Development Direction - The company continues to invest in new specialty underwriting subsidiaries and technology to enhance operational efficiency and maintain competitive advantages [7][21] - There is a focus on maintaining strong renewal retention ratios across all lines of business, with retention rates exceeding 85% [24][26] - The company is exploring AI and data analytics to improve decision-making and operational efficiency, with ongoing investments in technology [57][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive landscape, particularly in larger accounts, but emphasized the company's unique value proposition and long-term client relationships [27][30] - The outlook for the title insurance market remains cautious, with expectations that combined ratios may improve only if market conditions change [61][62] Other Important Information - The company paid $71 million in regular cash dividends during the quarter and has over $200 million remaining in its current share repurchase program [12] - The annualized operating return on beginning equity improved to 14.6% from 12.1% year-over-year, reflecting effective capital management [21] Q&A Session Summary Question: Can you provide more detail about retention across your specialty property casualty business? - Management reported strong renewal retention metrics across all lines of business, with rates above 85% attributed to their service-oriented value proposition [24][26] Question: How is the competition affecting your business, particularly in larger accounts? - Management noted a slight uptick in property rates and emphasized their focus on non-catastrophic property, which differentiates them from competitors [28][30] Question: What are your views on the title insurance rates in Texas? - Management indicated that the rate decrease in Texas has not yet taken effect due to ongoing legal challenges, and they believe the current rates remain adequate [34][38] Question: Why was there no stock repurchase in the last quarter? - Management explained that a special dividend was paid in the first quarter, and they are cautious about share repurchases relative to market prices [42][44] Question: What is the investment outlook for the company? - Management expects no dramatic improvements in new money yields, with a tightening yield environment anticipated [46][47] Question: Can you discuss the specialty insurance segment's combined ratios? - Management expects the combined ratio to remain in the 90% to 95% range, primarily due to their focus on casualty lines and conservative reserving practices [52][54] Question: How is the company implementing AI in its operations? - Management is actively exploring AI tools and has hired an AI leader to enhance decision-making and efficiency through data analytics [57][60] Question: Do you need to see mortgage rates fall to improve combined ratios in title insurance? - Management is working to bring down combined ratios through internal efficiencies, regardless of market conditions [61][62]

Financial Performance & Returns - The company's total market return per share for the past 10 years is 16.7%[9] - Since December 31, 2016, the company has distributed $6 billion in dividends and share repurchases[10] - The annualized operating Return on Equity (ROE) is 14.6%[12] - The regular dividend is $1.16, yielding 3.0%[12] - The company repurchased $25 million (740 thousand shares) in 2025[74] - Book value per share increased 12.6% from year-end 2024, adding back dividends[27] Business Segments & Highlights - Net premiums and fees earned increased by 11% in the second quarter of 2025, totaling $1.99 billion, driven by Specialty Insurance (up 15%) and Title Insurance (up 5%)[28] - Operating EPS increased by 9% to $0.83 in the second quarter of 2025, compared to $0.76 in the same quarter of 2024, influenced by a 25% increase in pretax operating income in Specialty Insurance, offset by a 47% decrease in Title Insurance[27] - The combined ratio is 93.6, up 0.1 points from last year's 93.5, with Specialty Insurance at 90.7 (vs 92.4) and Title Insurance at 99.0 (vs 95.4)[29] - Old Republic's Title Insurance business holds a 14.4% market share, ranking it as the 3rd largest in the industry[57]