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]

OVERALL RESULTS [Summary of First Quarter 2025 Performance](index=1&type=section&id=Summary%20of%20First%20Quarter%202025%20Performance) Q1 2025 net income decreased due to lower investment gains, while net operating income and diluted per share significantly increased, driven by strong operational performance and substantial growth in consolidated net premiums and fees earned | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------- | :----------------- | :----------------- | :------- | | Net income | $245.0 | $316.7 | -22.7% | | Net of tax investment gains | $43.2 | $132.0 | -67.3% | | Net income excluding investment gains | $201.7 | $184.7 | 9.2% | | Consolidated net premiums and fees earned | >$1,800.0 | $1,642.7 | 12.1% | | Net investment income | $170.7 | $164.1 | 4.0% | | Consolidated combined ratio | 93.7% | 94.3% | -0.6 pts | | Favorable loss reserve development | 2.6 pts | 2.3 pts | +0.3 pts | | Total capital returned to shareholders | $93.0 | N/A | N/A | | Metric | Q1 2025 | Q1 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Net income per diluted share | $0.98 | $1.15 | -14.8% | | Net of tax investment gains per diluted share | $0.17 | $0.48 | -64.6% | | Net income excluding investment gains per diluted share | $0.81 | $0.67 | 20.9% | | Book value per common share (Mar 31) | $24.19 | $22.84 | 5.9% | | Book value per common share (Dec 31) | N/A | $22.84 | N/A | - Book value per share of **$24.19**, which inclusive of dividends declared was up **7.2%** since year-end 2024[3](index=3&type=chunk) MANAGEMENT'S PERSPECTIVE ON FINANCIAL REPORTING [Focus on Operating Income](index=2&type=section&id=Focus%20on%20Operating%20Income) Management emphasizes evaluating results by excluding investment gains (losses) to focus on operating income, providing clearer analysis of insurance operations as investment realizations can be discretionary and distort trends - Management's key objectives are to achieve highly profitable operating results over the long term and ensure balance sheet strength for insurance underwriting subsidiaries' obligations[4](index=4&type=chunk) - The evaluation of periodic and long-term results excludes consideration of all investment gains (losses) to better analyze and establish accountability for insurance operations[4](index=4&type=chunk)[5](index=5&type=chunk) - The inclusion of realized and unrealized investment gains (losses) in net income can mask trends in operating results due to their discretionary nature and significant period-to-period fluctuations[5](index=5&type=chunk) FINANCIAL HIGHLIGHTS [Summary Income Statements](index=2&type=section&id=Summary%20Income%20Statements) Total operating revenues increased by **11.4%** in Q1 2025, driven by growth in net premiums, fees, and investment income, though total net investment gains significantly decreased, leading to lower total net income compared to the prior year | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------------- | :----------------- | :----------------- | :------- | | Net premiums and fees earned | $1,841.0 | $1,642.7 | 12.1% | | Net investment income | $170.7 | $164.1 | 4.0% | | Other income | $47.2 | $41.9 | 12.6% | | Total operating revenues | $2,059.0 | $1,848.8 | 11.4% | | Total net investment gains | $55.0 | $167.1 | -67.1% | | Total revenues | $2,114.0 | $2,015.9 | 4.9% | | Total expenses | $1,806.3 | $1,617.2 | 11.7% | | Pretax income | $307.7 | $398.7 | -22.8% | | Total net income | $246.1 | $316.7 | -22.3% | | Net income to shareholders | $245.0 | $316.7 | -22.7% | [Common Stock Statistics](index=2&type=section&id=Common%20Stock%20Statistics) Diluted net income per share, excluding investment gains, increased by **20.9%** in Q1 2025, while total diluted net income per share decreased due to a significant reduction in net investment gains | Metric | Q1 2025 | Q1 2024 | % Change | | :------------------------------------------------- | :------ | :------ | :------- | | Basic net income excluding investment gains (losses) | $0.83 | $0.68 | 22.1% | | Basic net income | $1.01 | $1.17 | -13.7% | | Diluted net income excluding investment gains (losses) | $0.81 | $0.67 | 20.9% | | Diluted net income | $0.98 | $1.15 | -14.8% | | Cash dividends declared on common stock | $0.290 | $0.265 | 9.4% | SOURCES OF CONSOLIDATED INCOME BY SEGMENT [Consolidated Income Overview](index=3&type=section&id=Consolidated%20Income%20Overview) Consolidated net premiums and fees earned increased by **12.1%**, driven by strong growth in Specialty and Title Insurance, with underwriting income up **19.0%** and an improved consolidated combined ratio of **93.7%** | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------------- | :----------------- | :----------------- | :------- | | **Net premiums and fees earned:** | | | | | Specialty Insurance | $1,233.6 | $1,091.6 | 13.0% | | Title Insurance | $605.1 | $545.4 | 10.9% | | Corporate & Other | $2.2 | $5.5 | -58.8% | | Consolidated | $1,841.0 | $1,642.7 | 12.1% | | **Underwriting income (loss):** | | | | | Specialty Insurance | $126.1 | $105.8 | 19.2% | | Title Insurance | ($12.2) | ($13.5) | 9.4% | | Corporate & Other | ($14.0) | ($8.4) | -66.9% | | Consolidated | $99.8 | $83.8 | 19.0% | | **Consolidated combined ratio:** | | | | | Loss ratio (Total) | 42.2% | 42.5% | -0.3 pts | | Expense ratio | 51.5% | 51.8% | -0.3 pts | | Combined ratio | 93.7% | 94.3% | -0.6 pts | | **Net investment income:** | | | | | Specialty Insurance | $150.0 | $131.1 | 14.4% | | Title Insurance | $16.7 | $15.7 | 6.6% | | Corporate & Other | $3.9 | $17.3 | -77.3% | | Consolidated | $170.7 | $164.1 | 4.0% | | **Pretax income excluding investment gains (losses):** | | | | | Specialty Insurance | $260.1 | $220.4 | 18.0% | | Title Insurance | $4.3 | $2.3 | 84.4% | | Corporate & Other | ($11.8) | $8.8 | N/M | | Consolidated | $252.7 | $231.5 | 9.1% | - Net income excluding investment gains (losses) increased by **9.8%** to **$202.8 million**[8](index=8&type=chunk) [Specialty Insurance Segment Operating Results](index=4&type=section&id=Specialty%20Insurance%20Segment%20Operating%20Results) The Specialty Insurance segment demonstrated strong Q1 2025 performance, with net premiums earned increasing by **13.0%** and pretax operating income rising by **18.0%**, driven by premium rate increases and new business, resulting in an improved combined ratio of **89.8%** | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------------- | :----------------- | :----------------- | :------- | | Net premiums written | $1,272.0 | $1,157.1 | 9.9% | | Net premiums earned | $1,233.6 | $1,091.6 | 13.0% | | Net investment income | $150.0 | $131.1 | 14.4% | | Operating revenues | $1,430.7 | $1,264.5 | 13.1% | | Segment pretax operating income | $260.1 | $220.4 | 18.0% | | Combined ratio | 89.8% | 90.3% | -0.5 pts | | Loss ratio (Total) | 61.7% | 62.7% | -1.0 pts | | Expense ratio | 28.1% | 27.6% | +0.5 pts | - Premium growth was most pronounced within commercial auto, property, and general liability, with strong rate increases in these lines[10](index=10&type=chunk) - Net investment income increase was primarily driven by higher investment yields and a higher invested asset base[11](index=11&type=chunk) - The 2025 loss ratio reflects higher levels of favorable prior year loss reserve development, mainly from workers' compensation, commercial auto, and property coverages[12](index=12&type=chunk) [Title Insurance Segment Operating Results](index=5&type=section&id=Title%20Insurance%20Segment%20Operating%20Results) The Title Insurance segment experienced a **10.9%** increase in net premiums and fees earned in Q1 2025, with significant growth in commercial and residential premiums, leading to an **84.4%** surge in pretax operating income and an improved expense ratio despite a higher loss ratio | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------------- | :----------------- | :----------------- | :------- | | Net premiums and fees earned | $605.1 | $545.4 | 10.9% | | Net investment income | $16.7 | $15.7 | 6.6% | | Operating revenues | $622.0 | $561.3 | 10.8% | | Segment pretax operating income | $4.3 | $2.3 | 84.4% | | Combined ratio | 102.1% | 102.5% | -0.4 pts | | Loss ratio (Total) | 2.7% | 2.2% | +0.5 pts | | Expense ratio | 99.4% | 100.3% | -0.9 pts | - Growth in agency produced revenues was **12%** and directly produced revenues was **6%**, with commercial premiums representing nearly **24%** of net premiums earned, up from **21%** last year[14](index=14&type=chunk) - The Title Insurance loss ratio increased primarily due to a lower level of favorable prior year loss reserve development compared to 2024[15](index=15&type=chunk) [Corporate & Other Operating Results](index=6&type=section&id=Corporate%20%26%20Other%20Operating%20Results) The Corporate & Other segment reported an **$11.8 million** pretax operating loss in Q1 2025, a significant decline from the prior year, primarily due to decreased net premiums earned and net investment income, increased operating expenses, and the segment's inherent variability | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------------------------- | :----------------- | :----------------- | :------- | | Net premiums earned | $2.2 | $5.5 | -58.8% | | Net investment income | $3.9 | $17.3 | -77.3% | | Operating revenues | $6.2 | $22.9 | -72.9% | | Operating expenses | $18.0 | $14.0 | 27.9% | | Corporate & Other pretax operating income (loss) | ($11.8) | $8.8 | N/M | - Net investment income was significantly impacted by a lower invested asset base due to capital returns to shareholders (including a special cash dividend) and the sale of the RFIG Run-off business[18](index=18&type=chunk) - The increase in corporate operating expenses was driven by higher personnel costs[18](index=18&type=chunk) SUMMARY CONSOLIDATED BALANCE SHEET [Consolidated Balance Sheet Overview](index=6&type=section&id=Consolidated%20Balance%20Sheet%20Overview) As of March 31, 2025, Old Republic's total assets increased slightly to **$28,028.1 million** from year-end 2024, with total equity also rising due to unrealized investment gains and net income | Metric | Mar. 31, 2025 (Millions) | Dec. 31, 2024 (Millions) | | :-------------------------------------- | :----------------------- | :----------------------- | | **Assets:** | | | | Fixed income securities (at fair value) | $12,248.1 | $12,091.5 | | Short-term investments | $1,036.4 | $1,403.7 | | Equity securities (at fair value) | $2,592.5 | $2,540.7 | | Total assets | $28,028.1 | $27,843.1 | | **Liabilities and Equity:** | | | | Loss and loss adjustment expense reserves | $13,950.9 | $13,727.7 | | Unearned premiums | $3,658.6 | $3,505.4 | | Total liabilities | $22,084.5 | $22,224.1 | | Total equity | $5,943.5 | $5,618.9 | | Total liabilities and equity | $28,028.1 | $27,843.1 | | Metric | Mar. 31, 2025 | Dec. 31, 2024 | | :------------------------------------------------- | :------------ | :------------ | | Composition of shareholders' equity per share: | | | | Equity before items below | $20.46 | $19.65 | | Unrealized investment gains (losses) and other accumulated comprehensive income (loss) | $3.73 | $3.19 | | Total | $24.19 | $22.84 | INVESTMENTS [Investment Portfolio and Strategy](index=7&type=section&id=Investment%20Portfolio%20and%20Strategy) Old Republic's consolidated investment portfolio is primarily allocated to fixed income (**84%**) and equity securities (**16%**), focusing on quality investments for consistent income and long-term capital stability, with limited exposure to high-risk assets and regular stress tests - Investment portfolio allocation: approximately **84%** to fixed income securities and short-term investments, and **16%** to equity securities[20](index=20&type=chunk) - Investment management focuses on retaining quality investments for consistent income streams and monitoring concentration limits[20](index=20&type=chunk) - The company has extremely limited exposure to high-risk or illiquid asset classes (e.g., limited partnerships, derivatives, hedge funds, private equity) and does not engage in hedging or securities lending[21](index=21&type=chunk) - Regular stress tests are performed on the investment portfolio to ensure financial strength against market downdrafts[21](index=21&type=chunk) SHAREHOLDERS' EQUITY [Shareholders' Equity Per Share Analysis](index=7&type=section&id=Shareholders'%20Equity%20Per%20Share%20Analysis) Shareholders' equity per share increased by **5.9%** for the quarter, or **7.2%** inclusive of cash dividends, driven by net income (excluding investment gains) and positive net of tax realized and unrealized investment gains, partially offset by cash dividends | Metric | Q1 2025 | Q1 2024 | | :------------------------------------------------- | :------ | :------ | | Beginning balance | $22.84 | $23.31 | | Net income excluding net investment gains | $0.83 | $0.68 | | Net of tax realized investment gains | $0.12 | $0.53 | | Net of tax unrealized investment gains (losses): | | | | Fixed income securities | $0.46 | ($0.25) | | Equity securities | $0.06 | ($0.04) | | Total net of tax realized and unrealized investment gains | $0.64 | $0.24 | | Cash dividends declared | ($0.290) | ($0.265) | | Net change | $1.35 | $0.52 | | Ending balance | $24.19 | $23.83 | | Change for the period | 5.9% | 2.2% | | Change for the period, inclusive of cash dividends declared | 7.2% | 3.4% | - Total capital returned to shareholders during the quarter was **$93 million**, comprising **$68 million** in dividends and **$25 million** in share repurchases[23](index=23&type=chunk) COMPANY STRATEGY AND INFORMATION [Managing Insurance Business for the Long-Run](index=8&type=section&id=Managing%20Insurance%20Business%20for%20the%20Long-Run) Old Republic manages its insurance business with a long-term perspective, prioritizing favorable underwriting results over cycles and maintaining a sound financial condition, with results best evaluated over 10-year intervals to account for economic and underwriting cycles and quantify loss costs with greater certainty - The insurance business is managed for the long run, with a primary focus on achieving favorable underwriting results over cycles and maintaining sound financial condition[24](index=24&type=chunk) - Management believes results are best evaluated over 10-year intervals to account for economic and underwriting cycles and to quantify reserved loss costs with greater certainty[25](index=25&type=chunk) [About Old Republic](index=8&type=section&id=About%20Old%20Republic) Old Republic International Corporation, founded in 1923 and a Fortune 500 company, is a leading specialty insurer operating diverse property & casualty and title insurance companies across the United States and Canada, specializing in underwriting and risk management services - Old Republic is a leading specialty insurer, operating diverse property & casualty and title insurance companies[26](index=26&type=chunk) - Founded in 1923 and a Fortune 500 member, the company provides underwriting and risk management services in the U.S. and Canada[26](index=26&type=chunk) [Conference Call and Investor Contacts](index=8&type=section&id=Conference%20Call%20and%20Investor%20Contacts) Old Republic held a conference call on April 24, 2025, to discuss its first quarter performance, with details provided for accessing the live call, replay, and investor relations contact information for further inquiries - A conference call was scheduled for April 24, 2025, at 3:00 p.m. ET to discuss Q1 2025 performance[27](index=27&type=chunk) - Access to the conference call was available via Old Republic's website or by dialing 1-888-596-4144 (passcode 4060501); a replay was available through May 1, 2025[27](index=27&type=chunk) - Investor Relations contact: Old Republic International Corporation, 307 North Michigan Avenue, Chicago, IL 60601, (312) 346-8100[33](index=33&type=chunk) SAFE HARBOR STATEMENT [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report includes a safe harbor statement regarding forward-looking statements, cautioning that historical data is not indicative of future results and outlining various assumptions, uncertainties, and risks that may affect future performance across Specialty, Title, and Life and Accident insurance segments - Historical data is not necessarily indicative of future operating results due to the long-term nature of insurance, seasonal patterns, investment yields, government policies, and legal changes[29](index=29&type=chunk) - Forward-looking statements involve assumptions, uncertainties, and risks, including market competition, economic conditions, claim frequency/severity, reinsurance, underwriting risks, and technology breaches[30](index=30&type=chunk) - Specific risk factors for Specialty Insurance include market competition, economic considerations, claim development, and reinsurance; Title Insurance risks include housing demand, mortgage costs, and employment trends; Life and accident insurance earnings are affected by employment, consumer spending, mortality/health trends, and policy lapsation rates[30](index=30&type=chunk) - A more detailed listing of risks is available in Part I, Item 1A - Risk Factors, of the Company's 2024 Form 10-K[31](index=31&type=chunk)

Financial Performance & Returns - Old Republic's total market return per share for the past 10 years is 16.7%[7] - The company has raised its annual cash dividend for the past 44 years[8] - As of March 31, 2025, the market capitalization was $9.74 billion and the stock price was $39.22[10] - The trailing 4 quarter operating income was $814 million, resulting in an EPS of $3.18[10] - The annualized operating ROE is 14.4%[10] - Book Value Per Share increased 7.2% from year-end 2024, adding back dividends[20] Business Segments - Specialty Insurance net premiums & fees earned increased by 13% in the 1st quarter of 2025[19] - Title Insurance net premiums & fees earned increased by 11% in the 1st quarter of 2025[19] - Title Insurance holds a 14.4% market share, ranking it 3 in the nation[7, 54] Capital Management - $6 billion of dividends & share repurchases since 12/31/16[8] - $25 million in share repurchases were made in 1Q25, with just over $200 million remaining authorized on the current $1.1 billion share repurchase program[22] - The company has paid cash dividends for 84 consecutive years[8]