Company Announcement - Old Republic International Corporation will report its financial results for the second quarter of 2025 before the market opens on July 24, 2025 [1] - A conference call to discuss the results will be held at 3:00 p.m. Eastern time on the same day, accessible via the company's website or by phone [1] Call Access Information - Investors can access a replay of the conference call by dialing 1-800-770-2030, with the passcode 4060501, available until July 31, 2025 [2] - The replay will also be available on Old Republic's website [2] Company Overview - Old Republic is a leading specialty insurer, operating 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 are experts in their fields, providing tailored solutions that differentiate them in the market [3]

2020 Performance Highlights - Operating EPS reached $2.24, a 22% increase compared to 2019[11] - Operating Revenues totaled $7.31 billion, up 7% from 2019[11] - The combined ratio improved to 93.3, a 2-point improvement from 95.3 in 2019[11] - Book Value Per Share increased by 13% to $20.75, inclusive of dividends, from year-end 2019[11] - Shareholders' Equity rose to $6.19 billion, up from $6.00 billion at the end of 2019[11] 1st Quarter 2021 Highlights - Operating EPS increased by 47% to $0.69, from $0.47 in the first quarter of 2020, driven by underwriting strength in both General Insurance & Title[12] - Net Premiums & Fees Earned increased by 18% to $1.83 billion, driven by Title Insurance (up 40%) and General Insurance (up 1%)[12] - The combined ratio decreased by 4.2 points to 90.9, versus 95.1 last year[12] - Book Value Per Share was $21.59, up 5.1% from 4Q20, inclusive of dividends[12] Business Profile - General Insurance accounted for 53% and Title Insurance for 46% of the company's operating revenue in 2020[14] - The General Insurance segment had $3.8 billion in operating revenue with a steady 96 combined ratio over 15 years[14] - The Title Insurance segment had $3.3 billion in operating revenue with low 90's combined ratios[14] Dividend Record - The company has a shareholder-friendly dividend track record, paying dividends for 80 straight years and increasing the annual dividend for 40 straight years[33]

Core Insights - The article discusses Old Republic International (NYSE: ORI), highlighting its above-average yield and strong prospects for future income [1] Group 1 - The author previously analyzed Old Republic International, concluding it offers an attractive investment opportunity due to its yield and income potential [1] - The target audience for the article includes conservative investors, particularly those from Generation X, who are seeking income-generating strategies [1]

Dividend Announcement - Old Republic International Corporation declared a regular quarterly cash dividend of 29 cents per share, payable on June 16, 2025, to shareholders of record on June 6, 2025 [1] - The full year's cash dividend for 2025 will amount to $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 operating diverse property & casualty and title insurance companies [3] - Founded in 1923, the company is a member of the Fortune 500 and is recognized for its underwriting and risk management services across the United States and Canada [3] - The specialized operating companies within Old Republic are experts in their fields, providing tailored solutions that differentiate the company in the market [3]

Financial Performance - Net premiums earned rose to $1,782.9 million for the quarter ended March 31, 2025, compared to $1,574.6 million for the same period in 2024, reflecting an increase of 13.2%[8] - Total operating revenues reached $2,059.0 million for Q1 2025, up from $1,848.8 million in Q1 2024, marking a growth of 11.4%[8] - Net income attributable to shareholders decreased to $245.0 million in Q1 2025 from $316.7 million in Q1 2024, a decline of 22.5%[8] - Total comprehensive income for Q1 2025 was $359.5 million, compared to $243.7 million in Q1 2024, indicating an increase of 47.5%[9] - Total net income for Q1 2025 was $246.1 million, a decrease of 22.2% compared to $316.7 million in Q1 2024[12] - Net income excluding investment gains increased by 9.2% to $201.7 million in Q1 2025 from $184.7 million in Q1 2024[86] - Basic earnings per share for Q1 2025 were $1.01, compared to $1.17 in Q1 2024, reflecting a decline of 13.7%[53] Assets and Liabilities - Total assets increased to $28,028.1 million as of March 31, 2025, up from $27,843.1 million at December 31, 2024, representing a growth of 0.67%[7] - The company's total liabilities decreased slightly to $22,084.5 million as of March 31, 2025, from $22,224.1 million at December 31, 2024, a reduction of 0.63%[7] - Retained earnings increased to $5,721.2 million as of March 31, 2025, compared to $5,519.7 million at the end of Q1 2024, reflecting a growth of 3.6%[11] - The total debt as of March 31, 2025, was $1,589.0 million, compared to $1,588.7 million as of December 31, 2024, showing a slight increase[57] Investment Income - The company reported net investment income of $170.7 million for Q1 2025, compared to $164.1 million in Q1 2024, an increase of 4.0%[8] - The company reported total realized and unrealized investment gains of $55.0 million for the quarter, compared to $167.1 million in the previous year[46] - The company experienced a net change in unrealized investment gains of $111.7 million for the quarter, compared to a loss of $67.6 million in the same quarter of 2024[46] - Net investment income for Q1 2025 was $170.7 million, an increase from $164.1 million in the same quarter of 2024[46] Cash Flow and Capital Management - Cash flows from operating activities totaled $231.7 million, up from $160.4 million in the same quarter last year[12] - Cash flows from investing activities showed a significant increase to $428.4 million, compared to a decrease of $355.2 million in Q1 2024[12] - The company reported a cash balance of $263.7 million at the end of Q1 2025, up from $136.9 million at the end of Q1 2024[12] - Dividends on common shares increased significantly to $567.9 million in Q1 2025, compared to $71.5 million in Q1 2024[12] - Total capital returned to shareholders amounted to $93 million[89] Insurance Operations - Specialty Insurance accounted for 41.9% of the segment's net premiums earned in Q1 2025, with commercial auto being the largest type of coverage[62] - The combined ratio improved slightly to 93.7% in Q1 2025 from 94.3% in Q1 2024[86] - Segment underwriting income for Specialty Insurance was $126.1 million in Q1 2025, compared to $105.8 million in Q1 2024, representing a growth of 19.2%[86] - Specialty Insurance net premiums earned increased by 13.0% to $1.233 billion, driven by premium rate increases and high renewal retention ratios[96] - Title Insurance net premiums and fees earned rose by 10.9% to $605.1 million, with commercial premiums up 27%[101] Reserves and Loss Ratios - Total incurred loss and loss adjustment expenses for Q1 2025 were $772.3 million, compared to $695.1 million in Q1 2024, representing an increase of 11.1%[48] - The consolidated loss ratio for Q1 2025 was 42.2%, slightly improved from 42.5% in Q1 2024, reflecting a favorable development in prior year loss reserves[118] - The loss ratio for Specialty Insurance in Q1 2025 was 61.7%, reflecting a slight improvement from 62.7% in Q1 2024[134] - The total loss and loss adjustment expense reserves included asbestosis and environmental loss reserves of $165.5 million, representing 1.2% of total Specialty Insurance reserves as of March 31, 2025[117] Shareholder Equity and Dividends - Book value per share increased by 5.9% to $24.19, reflecting a 7.2% rise since year-end 2024 when including dividends declared[89] - Shareholders' equity per share increased by 5.9% to $24.19 in Q1 2025 from $22.84 in Q1 2024[110] - The company has consistently paid dividends since 1942 and has increased the annual cash dividend for the past 44 years[162] Market Conditions and Risks - Market competition, economic conditions, and claim frequency can significantly impact the results of Old Republic's Specialty Insurance segment[173] - Title Insurance results are influenced by national and regional housing demand, mortgage loan availability, and employment trends[173] - The adequacy and availability of reinsurance are critical factors affecting the company's financial stability[173] - Historical performance indicators may not predict future results due to the dynamic nature of the insurance business[172]

CHICAGO, April 28, 2025 /PRNewswire/ -- Old Republic International Corporation (NYSE: ORI) — today announced leadership succession at BITCO Insurance Companies (BITCO), an Old Republic Specialty Insurance Group subsidiary.BITCO has named Meyer Lehman (50) President, effective May 1. Vince Lamb (62) will continue as Chief Executive Officer. In making this announcement, Craig R. Smiddy, Old Republic International's President and Chief Executive Officer, noted, "These appointments reflect thoughtful succession ...

Financial Data and Key Metrics Changes - The company reported consolidated pre-tax operating income of $252.7 million for Q1 2025, an increase from $231.5 million in Q1 2024 [7] - Net operating income was $202 million for the quarter, compared to $185 million last year, with a per share increase to $0.81 from $0.67, reflecting a 21% improvement [12][13] - The consolidated combined ratio improved to 93.7% from 94.3% year-over-year [7] Business Line Data and Key Metrics Changes - Specialty insurance net premiums earned grew by 13% in Q1 2025, with pre-tax operating income rising to $260 million from $220 million last year [8] - Title insurance premiums and fees increased by 11% to $605 million, with pre-tax operating income rising to $4 million from $2 million [27][30] - The combined ratio for title insurance was 102.1%, slightly improved from 102.5% in the previous year [9][30] Market Data and Key Metrics Changes - The title insurance segment saw commercial premiums increase by 27%, now representing 24% of earned premiums compared to 21% last year [28] - The average reinvestment rate on corporate bonds was 5.1%, with the total bond portfolio book yield increasing to 4.6% [13][14] Company Strategy and Development Direction - The company continues to focus on profitable growth within specialty insurance and is investing in new specialty underwriting subsidiaries, technology, and talent [10][25] - A strategic partnership with Qualia was announced to enhance technology in title insurance operations, aiming to streamline business processes and improve operational efficiencies [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth and profitability in specialty insurance throughout 2025, despite challenges in the real estate market [25][35] - The company is monitoring economic uncertainties, including potential impacts from tariffs on its business segments, particularly in travel and accident insurance [66][67] Other Important Information - The company returned approximately $500 million in special dividends and $68 million in regular dividends, alongside $25 million in share repurchases [17] - The operating return on equity improved to an annualized rate of 14.4% compared to 11.5% in the previous year [35] Q&A Session Summary Question: Insights on top line performance in specialty insurance - Management noted that top line performance varies by segment, with strong rate increases in commercial auto and general liability, while some segments experienced rate decreases [39][40] Question: Approach to reserving for new business initiatives - The company utilizes industry data and existing business data for reserving, particularly for shorter tail lines, which have less tail risk [44][46] Question: Improvement of expense ratio over the year - Management indicated that expense ratio improvements depend on top line revenue and market conditions, with expectations for gradual improvement as the market stabilizes [53][54] Question: Competitive environment and market softness - Management stated that most of their business is in small and mid-commercial sectors, and they have not observed significant differences in performance between small/mid and large commercial businesses [72] Question: Capital management and stock repurchases - The company is evaluating capital management strategies, including share repurchases and special dividends, based on capital position and business needs [78][80] Question: Corporate expense levels and sustainability - Corporate expenses increased due to higher executive compensation linked to performance, and management expects this trend to continue given the variable nature of these expenses [83][84]

Financial Data and Key Metrics Changes - The company reported consolidated pre-tax operating income of $252.7 million for Q1 2025, an increase from $231.5 million in Q1 2024 [7] - Net operating income was $202 million for the quarter, compared to $185 million last year, with a per share increase to $0.81 from $0.67, representing a 21% improvement [12][13] - The consolidated combined ratio improved to 93.7% from 94.3% year-over-year [7] Business Line Data and Key Metrics Changes - Specialty insurance saw net premiums earned grow by 13% in Q1 2025, with pre-tax operating income rising to $260 million from $220 million [8] - Title insurance premiums and fees increased by 11% to $605 million, with pre-tax operating income rising to $4 million from $2 million [27][30] - The combined ratio for title insurance was 102.1%, slightly improved from 102.5% in the previous year [9][30] Market Data and Key Metrics Changes - The title insurance segment experienced a 27% increase in commercial premiums compared to Q1 2024, with agency premiums making up 78% of revenue [28] - Investment income increased by 4% due to higher yields on the bond portfolio, despite a lower invested asset base [13] Company Strategy and Development Direction - The company continues to focus on profitable growth within specialty insurance and title insurance, with ongoing investments in new specialty underwriting subsidiaries and technology [10][25] - A strategic partnership with Qualia was announced to enhance technological capabilities in title insurance operations [31][34] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by higher mortgage interest rates and a tight real estate market but expressed optimism about growth in both specialty and title insurance segments [9][28] - The company expects solid growth and profitability in specialty insurance to continue throughout 2025, reflecting the success of its operational excellence initiatives [25] Other Important Information - The company returned approximately $500 million in special dividends and $68 million in regular dividends, alongside $25 million in share repurchases [17] - The book value per share increased to $24.19, primarily driven by strong operating earnings and higher investment valuations [17] Q&A Session Summary Question: Insights on top line performance in specialty insurance - Management indicated that top line performance varies by segment, with strong rate increases in commercial auto and general liability, while new underwriting subsidiaries are contributing significantly [38][40] Question: Approach to reserving for new business initiatives - The company uses industry data and its own historical data for reserving, particularly for shorter tail lines, which have less tail risk [42][46] Question: Expense ratio improvement expectations - Management noted that expense ratios are closely tied to top line revenue and expect improvements as market conditions stabilize [48][54] Question: Impact of economic uncertainty on business volumes - Management observed some reductions in Canadian business and travel accident segments, potentially linked to tariff discussions and economic uncertainty [61][65] Question: Competitive environment and market softness - Management stated that most of their business is in small and mid-commercial sectors, and they have not observed significant differences in performance between small/mid and large commercial businesses [70][72] Question: Capital management and stock repurchase outlook - The company is evaluating its capital position and will continue to execute share repurchases as deemed appropriate, balancing between returning capital and funding new initiatives [74][80] Question: Corporate expense levels and sustainability - Management acknowledged higher corporate expenses due to performance-related compensation and indicated that these levels may persist throughout the year [81][84]

NEWS RELEASE OLD REPUBLIC REPORTS RESULTS FOR THE FIRST QUARTER 2025 Dollar amounts (other than per share amounts) are presented in millions, except as otherwise indicated. CHICAGO – April 24, 2025 – Old Republic International Corporation (NYSE: ORI) today reported the following results for the first quarter 2025: OVERALL RESULTS | | | | | Quarters Ended March 31, | | | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | % Change | | Net income | | $ 245.0 | $ | 316.7 | | | Net of tax investment gains ...

MANAGING OLD REPUBLIC FOR THE LONG RUN Investor Presentation 1st Quarter 2025 OLD REPUBLIC Preliminary Matters Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect," "predict," "estimate," "will," "should," "anticipate," "believe," and similar expressions, and the negatives thereof, often identify forward-looking statements, which are not limit ...