CHICAGO, Jan. 28 /PRNewswire-FirstCall/ -- Old Republic
International Corporation (NYSE:ORI), today reported the following
results for the fourth quarter and full year 2009: Financial
Highlights (Millions, except per share data and percentages in all
tables) Quarters Ended December 31, Years Ended December 31, 2009
2008 Change 2009 2008 Change Operating Revenues $965.2 $899.7 7.3%
$3,797.2 $3,724.2 2.0% Net Operating Income (Loss) (41.2) (73.1)
43.6 (157.2) (188.1) 16.4 Net Income (Loss) $(36.7) $(126.5) 70.9%
$(99.1) $(558.3) 82.2% Diluted Earnings Per Share: Net Operating
Income (Loss) $(0.17) $(0.31) 45.2% $(0.67) $(0.81) 17.3% Net
Income (Loss) $(0.15) $(0.54) 72.2% $(0.42) $(2.41) 82.6% Cash
Dividends Per Share $0.17 $0.17 -% $0.68 $0.67 1.5% Ending Book
Value Per Share $16.49 $15.91 3.6% Old Republic experienced further
operating difficulties in the quarter and year ended December 31,
2009. Since mid-year 2007, the most significant declines in
operating income have been due to the Company's mortgage guaranty
and other insurance coverages linked to the housing and consumer
credit fields. Full year 2009 mortgage guaranty and consolidated
operating results benefited from a GAAP accounting requirement that
premiums received for certain, largely non-recurring reinsurance
contract terminations ("commutations"), be recognized immediately
as income. As a consequence, 2009 pretax operating earnings
benefited by $76.3 million ($49.6 million after tax or $0.21 per
share) from such premiums. Substantially all of these premiums will
likely be absorbed by loss costs related to the future years' risk
exposures they are designed to cover. General insurance performance
declined due to a reduction of underwriting profitability among
several coverages. At the same time, title operations returned to
profitability due to an increase in real estate transactions,
growth in market share, and expense control management. The net
loss for 2009's final quarter was reduced by post-tax realized
investment gains of $4.4 million ($0.02 per share). For all of
2009, these investment gains, amounting to $58.1 million ($0.25 per
share), are related principally to tax credits which could not be
recognized previously due to the application of certain accounting
rules. Those rules pertain to the tax treatment of losses from
other-than-temporary impairments of investments, most of which
originated in the second quarter of 2008. Consolidated Results -
The major components of Old Republic's consolidated results and
other data for the periods reported upon are shown below: Quarters
Ended December 31, Years Ended December 31, 2009 2008 Change 2009
2008 Change Operating revenues: General insurance $507.4 $547.2
-7.3% $2,052.7 $2,255.9 -9.0% Mortgage guaranty 161.0 171.1 -5.9
746.1 690.0 8.1 Title insurance 275.0 160.1 71.8 914.1 681.3 34.2
Corporate and other 21.7 21.1 2.6 84.3 96.8 -12.9 Total $965.2
$899.7 7.3% $3,797.2 $3,724.2 2.0% Pretax operating income (loss):
General insurance $51.7 $71.1 -27.2% $200.1 $294.3 -32.0% Mortgage
guaranty (125.9) (178.3) 29.4 (486.4) (594.3) 18.2 Title insurance
1.5 (19.3) 108.1 2.1 (46.3) 104.7 Corporate and other (.2) 2.1
-112.9 4.0 13.5 -70.1 Sub-total (72.9) (124.4) 41.4 (279.9) (332.7)
15.9 Realized investment gains (losses): From sales 14.9 (30.2)
15.9 (4.1) From impairments (8.0) (33.3) (9.5) (482.3) Net realized
investment gains (losses) 6.9 (63.5) 110.9 6.3 (486.4) 101.3
Consolidated pretax income (loss) (65.9) (188.0) 64.9 (273.6)
(819.2) 66.6 Income taxes (credits) (29.2) (61.5) 52.5 (174.4)
(260.8) 33.1 Net income (loss) $(36.7) $(126.5) 70.9% $(99.1)
$(558.3) 82.2% Consolidated underwriting ratio: Benefits and claim
ratio 73.9% 87.3% 76.7% 81.8% Expense ratio 44.7 39.6 41.8 39.1
Composite ratio 118.6% 126.9% 118.5% 120.9% Components of diluted
earnings per share: Net operating income (loss) $(0.17) $(0.31)
45.2% $(0.67) $(0.81) 17.3% Net realized investment gains (losses)
0.02 (0.23) 0.25 (1.60) Net income (loss) $(0.15) $(0.54) 72.2%
$(0.42) $(2.41) 82.6% Cash dividends paid per share $0.17 $0.17 -%
$0.68 $0.67 1.5% The above table shows both operating and net
income (loss) to highlight the effects of realized investment gain
or loss recognition and any non-recurring items on period-to-period
comparisons. Operating income, however, does not replace net income
computed in accordance with the Financial Accounting Standards
Board's ("FASB") Accounting Standards Codification ("ASC") of
generally accepted accounting principles ("GAAP") as a measure of
total profitability. The recognition of realized investment gains
or losses can be highly discretionary and arbitrary due to such
factors as the timing of individual securities sales, recognition
of estimated losses from write-downs for impaired securities,
tax-planning considerations, and changes in investment management
judgments relative to the direction of securities markets or the
future prospects of individual investees or industry sectors.
Likewise, unusual items which may emerge from time to time can
distort the comparability of the Company's results from period to
period. Accordingly, management uses net operating income, a
non-GAAP financial measure, to evaluate and better explain
operating performance, and believes its use enhances an
understanding of Old Republic's basic business results. General
Insurance Results - Pretax operating earnings for the periods
reported upon were affected mostly by reduced premium volume and
moderately higher claim and expense ratios. The following table
shows these effects: General Insurance Group Quarters Ended
December 31, Years Ended December 31, 2009 2008 Change 2009 2008
Change Net premiums earned $437.6 $481.8 -9.2% $1,782.5 $1,989.3
-10.4% Net investment income 67.1 64.4 4.2 258.9 253.6 2.1 Pretax
operating income (loss) $51.7 $71.1 -27.2% $200.1 $294.3 -32.0%
Claim ratio 77.1% 73.7% 76.3% 73.0% Expense ratio 25.0 24.1 25.8
24.2 Composite ratio 102.1% 97.8% 102.1% 97.2% Earned premiums for
the large majority of insurance coverages continued to trend lower
throughout 2009. As in the recent past, premium growth has been
constrained by the combination of a moderately declining rate
environment during the past three years or so, and by recessionary
economic conditions. These conditions affect such factors as sales
and employment levels, both of which are important elements upon
which premiums are based. General insurance investment income
trends benefited from greater invested asset balances. Overall
claim ratios continued to trend moderately higher in 2009's fourth
quarter and for the year as a whole. 2009 claim experience for the
consumer credit indemnity ("CCI") coverage in particular remained
at high levels, adding approximately 7.9 and 7.3 percentage points
to the above claim ratios for the fourth quarter and year 2009,
respectively. By comparison, CCI claim experience in the same
quarter and year 2008 raised general insurance claim ratios by 4.1
and 6.1 percentage points, respectively. Aggregate claim experience
for other coverages, however, remained relatively consistent.
Production and general operating expenses edged up slightly in 2009
as the expense reduction lagged a larger drop in earned premiums.
Mortgage Guaranty Results - 2009 mortgage guaranty operating
results benefited from the non-recurring captive reinsurance
premiums receipts noted above. Key indicators of this segment's
evolving performance are shown in the following table: Mortgage
Guaranty Group Quarters Ended December 31, Years Ended December 31,
2009 2008 Change 2009 2008 Change Net premiums earned $136.0 $147.2
-7.6% $644.5 $592.5 8.8% Net investment income 23.5 21.8 7.5 92.0
86.8 5.9 Pretax operating income (loss) $(125.9) $(178.3) 29.4%
$(486.4) $(594.3) 18.2% Claim ratio 195.8% 220.5% 176.0% 199.3%
Expense ratio 12.8 15.4 12.6 15.7 Composite ratio 208.6% 235.9%
188.6% 215.0% Absent the aforementioned effect of the reinsurance
commutations, mortgage guaranty earned premiums declined in each of
this year's quarterly periods. The lower premium levels resulted
mostly from the more selective underwriting criteria applied since
late 2007, from an overall decline in the industry's business
penetration, and from higher premium refunds related to claim
rescissions. These factors were attenuated somewhat by relatively
high persistency levels for business produced in prior years, and
by a continuing decline in premiums ceded to lender-owned (captive)
reinsurance companies. During 2009's third quarter, Old Republic's
Mortgage Guaranty Group entered into reinsurance termination
agreements ("commutations") with four lender-owned captive
reinsurers. As part of the transactions, the Company received
reinsurance premiums of $82.5 million to cover losses expected to
occur after the contract termination date. Under GAAP, these
reinsurance commutations have been treated as the termination of
risk transfer reinsurance arrangements rather than transactions in
which the Company takes on new or additional insurance risk. As a
result of this GAAP characterization, the premiums received have
been booked as current income rather than being deferred and
subsequently recognized in the future periods during which the
related risk will exist and expected claims will occur. The Company
estimates that substantially all of these premiums will likely be
absorbed by related claim costs thus negating the current
appearance of a gain from the transactions. In the above table, the
up front recognition of the $82.5 million of premiums also has the
effect of portraying an increase in 2009's net premiums earned of
8.8%, whereas their exclusion through deferral to future at risk
periods would have shown an actual 4.1% decline. As a further
consequence of this GAAP premium recognition methodology the 2009
loss ratio dropped from 199.6% to 176.0%, and the 2009 pretax
operating loss was reduced from $562.7 million to $486.4 million.
Excluding these premium recognition effects, quarterly claim ratios
throughout 2009 averaged 199.7% versus a comparable average of
199.3% for 2008. Greater claim rescissions and a moderate decline
in expected claim severity during 2009 offset to some degree the
impact on claim reserve provisions of a continued uptrend in
reported delinquent loans. The components of incurred mortgage
guaranty claim ratios are shown in the following table. Mortgage
Guaranty Group Quarters Ended Years Ended December 31, December 31,
2009 2008 2009 2008 Incurred claim ratio from: Paid claims 110.7%
99.5% 97.0% 74.8% Claim reserve provisions 76.5 121.0 102.6 124.5
Effect of commutations 8.6 - -23.6 - Total 195.8% 220.5% 176.0%
199.3% Production and operating expense ratios for all periods
reported upon reflect continued success in expense management. Net
investment income trended up throughout 2009 as a result of an
invested asset base enhanced by positive operating cash flow
generated primarily by income tax related asset recoveries and
funds received in the above noted reinsurance commutations. Title
Insurance Results - In 2009 Old Republic's title insurance business
turned slightly profitable for the first time since 2006. Key
operating performance indicators are shown in the following table:
Title Insurance Group Quarters Ended December 31, Years Ended
December 31, 2009 2008 Change 2009 2008 Change Net premiums and
fees earned $267.8 $154.0 73.9% $888.4 $656.1 35.4% Net investment
income 6.9 6.0 14.4 25.2 25.1 0.2 Pretax operating income (loss)
$1.5 $(19.3) 108.1% $2.1 $(46.3) 104.7% Claim ratio 8.6% 7.0% 7.9%
7.0% Expense ratio 92.5 109.1 93.8 103.6 Composite ratio 101.1%
116.1% 101.7% 110.6% Growth in title premiums and fees for 2009
resulted mostly from greater refinance transactions earlier in the
year and from market share gains taken from title industry
dislocations and consolidations. Claim costs rose at a quicker
pace, however, as the Company added moderately to reserve
provisions in consideration of recent claim emergence trends.
Production and general operating expenses, while relatively lower
as a percentage of premium and fees revenues, rose dollar-wise in
reflection of greater personnel and other production costs related
to the higher revenues attained and anticipated. Corporate and
Other Operations - The Company's small life and health insurance
business and the net costs associated with the parent holding
company and internal services subsidiaries produced a much lower
operating gain in 2009. Period-to-period variations in the results
of these relatively minor elements of Old Republic's operations
usually stem from the volatility inherent to the small scale of its
life and health business, fluctuations in the costs of external
debt, and net interest on intra-system financing arrangements.
Cash, Invested Assets, and Shareholders' Equity - The following
table reflects Old Republic's consolidated cash and invested assets
as well as shareholders' equity at the dates shown: December 31,
2009 2008 Change Cash and invested assets: Fair value basis
$9,879.0 $8,855.1 11.6% Original cost basis $9,625.9 $9,210.0 4.5%
Shareholders' equity: Total $3,891.4 $3,740.3 4.0% Per common share
$16.49 $15.91 3.6% Composition of shareholders' equity per share:
Equity before items below $14.99 $16.10 -6.9% Unrealized investment
gains (losses) and other accumulated comprehensive income (loss)
1.50 (0.19) Total $16.49 $15.91 3.6% Consolidated cash flow from
operating activities amounted to $532.9 million for the year ended
2009 versus $565.6 million for 2008. The investment portfolio
reflects a current allocation of approximately 86 percent to
fixed-maturity securities and 5 percent to equities. As has been
the case for many years, Old Republic's invested assets are managed
in consideration of enterprise-wide risk management objectives
intended to assure solid funding of its subsidiaries' long-term
obligations to insurance policyholders and other beneficiaries, and
evaluations of their long-term effect on the stability of capital
accounts. The portfolio contains little or no direct insurance
risk-correlated asset exposures to real estate, mortgage-backed
securities, collateralized debt obligations ("CDO's"), derivatives,
junk bonds, hybrid securities, or illiquid private equity
investments. In a similar vein, the Company does not engage in
hedging or securities lending transactions, nor does it invest in
securities whose values are predicated on non-regulated financial
instruments exhibiting amorphous or unfunded counter-party risk
attributes. Substantially all changes in the shareholders' equity
account reflect the Company's net income or loss, dividend payments
to shareholders, and impairments or changes in market valuations of
invested assets during the periods shown below: Shareholders'
Equity Per Share Years Ended December 31, 2009 2008 2007 Beginning
balance $15.91 $19.71 $18.91 Changes in shareholders' equity: Net
operating income (loss) (.67) (.81) .98 Net realized investment
gains (losses): From sales .04 (.01) .20 From impairments .21
(1.59) - Subtotal .25 (1.60) .20 Net unrealized investment gains
(losses) 1.59 (.33) .05 Total realized and unrealized investment
gains (losses) 1.84 (1.93) .25 Cash dividends (.68) (.67) (.63)
Stock issuance, foreign exchange, and other transactions .09 (.39)
.20 Net change .58 (3.80) .80 Ending balance $16.49 $15.91 $19.71
Old Republic's significant investments in the stocks of two leading
publicly held mortgage guaranty ("MI") businesses (MGIC Investment
Corp. and The PMI Group) account for a substantial portion of the
2008 realized and unrealized investment losses shown in the above
and following tables. Unrealized losses, including losses on
securities categorized as other-than-temporarily impaired ("OTTI"),
represent the net difference between the most recently established
cost and the fair values of the investments at each point in time.
The aggregate original and impaired costs, fair value, and latest
reported underlying equity values of the aforementioned two
mortgage guaranty investments are shown below. December 31, 2009
2008 Total value of the two MI investments: Original cost $416.4
$416.4 Impaired cost 106.8 106.8 Fair value 130.7 82.7 Underlying
equity(*) $303.2 $515.9 (*) Underlying equity based on latest
reports (which may lag by one quarter) issued by investees. The
above-noted mortgage guaranty holdings were acquired as passive
long-term investment additions for a core segment of Old Republic's
business in anticipation of a recovery of the MI industry in 2010.
In management's judgment, the currently depressed market valuations
of companies operating in the housing and mortgage-lending sectors
of the American economy have been impacted significantly by the
cyclical and macroeconomic conditions affecting these sectors, and
by the recent dysfunctionality of the banking and mortgage lending
industries. For external financial reporting purposes, however, Old
Republic uses relatively short time frames in recognizing OTTI
adjustments in its income statement. In this context, absent
issuer-specific circumstances that would result in a contrary
conclusion, all unrealized investment losses pertaining to any
equity security reflecting a 20 percent or greater decline for a
six month period is considered OTTI. Unrealized losses that are
deemed temporary and all unrealized gains are recorded directly as
a separate component of the shareholders' equity account and in the
consolidated statement of comprehensive income. As a result of
accounting idiosyncrasies, however, OTTI losses recorded in the
income statement of one period can not be offset in the income
statement of a subsequent period by fair value gains on the
previously impaired securities unless the gains are realized
through actual sales. Such unrealized fair value gains can only be
recognized through direct credits in the shareholders' equity
account and in the consolidated statement of comprehensive income.
2009 Capital Raise - Early in 2009's second quarter, the Company
obtained gross proceeds of $316.25 million through a public
offering of 8% convertible Senior Notes due in 2012. The funds were
used mostly to enhance the capital base of the general and title
insurance segments, and to repay a portion of commercial paper debt
previously incurred to strengthen the capital of the mortgage
guaranty segment as of year end 2008. Along with the growth
oriented capital additions to businesses with good prospects for
the long term, the new funds enhance the stability and resiliency
of Old Republic's consolidated capitalization. Conference Call
Information Old Republic has scheduled a conference call at 3:00
p.m. EST (2:00 p.m. CST) today, to discuss its fourth quarter and
full year 2009 performance and to review major operating trends and
business developments. To access this call, please log on to
http://www.oldrepublic.com/ 15 minutes before the call to download
the necessary software. Investors may access a replay of the call
by dialing 888-203-1112, passcode 4939212, which will be available
through February 4, 2010. The replay will also be available on Old
Republic International's website through February 28, 2010. About
Old Republic Chicago-based Old Republic International Corporation
is an insurance holding company whose subsidiaries market,
underwrite and provide risk management services for a wide variety
of coverages primarily in the property & liability, mortgage
guaranty, and title insurance fields. One of the nation's 50
largest publicly owned insurance organizations, Old Republic has
assets of approximately $14.19 billion and shareholders' equity of
$3.89 billion or $16.49 per share. Its current stock market
valuation is approximately $2.58 billion, or $10.75 per share. The
nature of Old Republic's business requires that it be managed for
the long run. For the 25 years ended in 2009, the Company's total
market return, with dividends reinvested, has grown at a compounded
annual rate of 9.7 percent per share. For the same period, the
total market return, with dividends reinvested, for the S&P 500
Index has grown at a 10.5 percent annual compound rate. During
those years, Old Republic's shareholders' equity account, inclusive
of cash dividends, has risen at an average annual rate of 11.6
percent per share, and the regular cash dividend has grown at a
10.3 percent annual compound rate. According to the most recent
edition of Mergent's Dividend Achievers, Old Republic is one of
just 120 companies, out of 10,000-plus publicly held corporations,
that have posted at least 25 consecutive years of annual dividend
growth. Accompanying Financial Data: -- Summary Financial
Statements and Common Stock Statistics -- Segmented Operating
Summary -- Segmented Operating Statistics -- Notes and Safe Harbor
Statement Old Republic International Corporation Financial Summary
(Unaudited) December 31, SUMMARY BALANCE SHEETS: 2009 2008 Assets:
Cash and fixed maturity securities $9,230.9 $8,358.9 Equity
securities 502.9 350.3 Other invested assets 145.2 145.8 Cash and
invested assets 9,879.0 8,855.1 Accounts and premiums receivable
788.6 806.7 Federal income tax recoverable: Current 7.3 41.0
Reinsurance balances recoverable 2,558.0 2,448.0 Prepaid federal
income taxes 221.4 463.4 Sundry assets 735.4 651.7 Total $14,190.0
$13,266.0 Liabilities and Shareholders' Equity: Policy liabilities
$1,223.4 $1,293.0 Benefit and claim reserves 7,915.0 7,241.3
Federal income tax payable: Deferred 47.5 77.3 Debt 346.7 233.0
Sundry liabilities 765.8 680.9 Shareholders' equity 3,891.4 3,740.3
Total $14,190.0 $13,266.0 Quarters Ended Years Ended SUMMARY INCOME
STATEMENTS: December 31, December 31, 2009 2008 2009 2008 Net
premiums and fees earned $860.9 $800.6 $3,388.9 $3,318.1 Net
investment income 99.5 95.0 383.5 377.3 Other income 4.7 4.0 24.8
28.7 Net realized investment gains (losses) 6.9 (63.5) 6.3 (486.4)
Total revenues 972.2 836.1 3,803.6 3,237.7 Benefits and claims
636.0 698.5 2,598.9 2,715.7 Sales and other expenses 402.1 325.5
1,478.3 1,341.2 Total expenses 1,038.2 1,024.1 4,077.2 4,056.9
Pretax income (loss) (65.9) (188.0) (273.6) (819.2) Income taxes
(credits) (29.2) (61.5) (174.4) (260.8) Net income (loss) $(36.7)
$(126.5) $(99.1) $(558.3) COMMON STOCK STATISTICS (a): Net income
(loss): Basic $(.15) $(.54) $(.42) $(2.41) Diluted $(.15) $(.54)
$(.42) $(2.41) Components of earnings per share: Basic, net
operating income (loss) $(.17) $(.31) $(.67) $(.81) Realized
investment gains (losses) .02 (.23) .25 (1.60) Basic net income
(loss) $(.15) $(.54) $(.42) $(2.41) Diluted, net operating income
(loss) $(.17) $(.31) $(.67) $(.81) Realized investment gains
(losses) .02 (.23) .25 (1.60) Diluted net income (loss) $(.15)
$(.54) $(.42) $(2.41) Cash dividends on common stock $.17 $.17 $.68
$.67 Book value per share $16.49 $15.91 Common shares outstanding:
Average basic 235,913,036 233,763,723 235,657,425 231,484,083
Average diluted 235,913,036 233,763,723 235,657,425 231,484,083
Actual, end of period 235,995,121 235,031,776 SUMMARY STATEMENTS OF
COMPREHENSIVE INCOME (LOSS): Net income (loss) as reported $(36.7)
$(126.5) $(99.1) $(558.3) Post-tax net unrealized gains (losses)
8.3 7.1 376.1 (78.1) Other adjustments 2.0 (49.6) 19.3 (56.9) Net
adjustments 10.3 (42.5) 395.4 (135.1) Comprehensive income (loss)
$(26.3) $(169.0) $296.3 $(693.4) Old Republic International
Corporation Segmented Operating Summary (Unaudited) Net Premiums
Net & Fees Investment Other Operating Benefits Earned Income
Income Revenues & Claims Quarter Ended December 31, 2009
General $437.6 $67.1 $2.6 $507.4 $337.3 Mortgage 136.0 23.5 1.4
161.0 266.4 Title 267.8 6.9 .2 275.0 22.9 Other 19.3 1.9 .4 21.7
9.2 Consolidated $860.9 $99.5 $4.7 $965.2 $636.0 Quarter Ended
December 31, 2008 General $481.8 $64.4 $0.9 $547.2 $355.3 Mortgage
147.2 21.8 1.9 171.1 324.8 Title 154.0 6.0 - 160.1 10.7 Other 17.3
2.6 1.1 21.1 7.6 Consolidated $800.6 $95.0 $4.0 $899.7 $698.5 Year
Ended December 31, 2009 General $1,782.5 $258.9 $11.1 $2,052.7
$1,360.3 Mortgage 644.5 92.0 9.5 746.1 1,134.1 Title 888.4 25.2 .4
914.1 70.3 Other 73.3 7.2 3.6 84.3 34.1 Consolidated $3,388.9
$383.5 $24.8 $3,797.2 $2,598.9 Year Ended December 31, 2008 General
$1,989.3 $253.6 $13.0 $2,255.9 $1,452.3 Mortgage 592.5 86.8 10.6
690.0 1,180.7 Title 656.1 25.1 - 681.3 45.6 Other 80.1 11.6 4.9
96.8 36.8 Consolidated $3,318.1 $377.3 $28.7 $3,724.2 $2,715.7
Pretax Composite Sales & Operating Under- Other Total Income
writing Expenses Expenses (Loss) Ratios Quarter Ended December 31,
2009 General $118.3 $455.6 $51.7 102.1% Mortgage 20.6 287.0 (125.9)
208.6 Title 250.5 273.4 1.5 101.1 Other 12.7 22.0 (.2) -
Consolidated $402.1 $1,038.2 $(72.9) 118.6% Quarter Ended December
31, 2008 General $120.7 $476.1 $71.1 97.8% Mortgage 24.6 349.5
(178.3) 235.9 Title 168.6 179.4 (19.3) 116.1 Other 11.4 19.0 2.1 -
Consolidated $325.5 $1,024.1 $(124.4) 126.9% Year Ended December
31, 2009 General $492.1 $1,852.5 $200.1 102.1% Mortgage 98.3
1,232.5 (486.4) 188.6 Title 841.6 911.9 2.1 101.7 Other 46.1 80.2
4.0 - Consolidated $1,478.3 $4,077.2 $(279.9) 118.5% Year Ended
December 31, 2008 General $509.2 $1,961.5 $294.3 97.2% Mortgage
103.6 1,284.4 (594.3) 215.0 Title 681.9 727.6 (46.3) 110.6 Other
46.3 83.2 13.5 - Consolidated $1,341.2 $4,056.9 $(332.7) 120.9% Old
Republic International Corporation Segmented Operating Statistics
Quarters Ended Years Ended December 31, December 31, 2009 2008 2009
2008 General Insurance: Benefits and claim ratio 77.1% 73.7% 76.3%
73.0% Expense ratio 25.0 24.1 25.8 24.2 Composite ratio 102.1%
97.8% 102.1% 97.2% Paid loss ratio 77.0% 74.8% 75.5% 69.9% Mortgage
Guaranty: (see additional Segmented Supplemental Operating
Statistics) Balance Sheet Leverage Ratios (b): Risk to Capital
Ratio - Performing risk basis 23.1:1 18.8:1 Total Financial
Resources to Risk Ratio 13.0% 11.2% Earned premiums: Direct $152.5
$172.4 $648.6 $698.4 Net $136.0 $147.2 $644.5 $592.5 Claim ratio
195.8% 220.5% 176.0% 199.3% Expense ratio 12.8 15.4 12.6 15.7
Composite ratio 208.6% 235.9% 188.6% 215.0% Paid loss ratio 115.7%
99.5% 85.5% 74.8% Title Insurance: Direct orders opened 87,855
61,094 358,935 257,743 Direct orders closed 69,780 41,794 274,189
183,117 Reserves to paid losses ratio (b) 4.7:1 5.4:1 Claim ratio
8.6% 7.0% 7.9% 7.0% Expense ratio 92.5 109.1 93.8 103.6 Composite
ratio 101.1% 116.1% 101.7% 110.6% Paid loss ratio 10.0% 14.7% 8.5%
9.2% Consolidated: Benefits and claim ratio 73.9% 87.3% 76.7% 81.8%
Expense ratio 44.7 39.6 41.8 39.1 Composite ratio 118.6% 126.9%
118.5% 120.9% Paid loss ratio 61.1% 67.6% 59.2% 58.4% Old Republic
International Corporation Supplemental Segmented Operating
Statistics Year-to-Date 2004 2005 2006 2007 2008 Mortgage Guaranty:
New insurance written: Traditional Primary $24,749.4 $20,554.5
$17,187.0 $31,841.7 $20,861.9 Bulk 4,487.8 9,944.3 13,716.7
10,800.3 3.5 Other 7,324.7 498.2 583.7 901.6 1,123.5 Total
$36,562.0 $30,997.1 $31,487.5 $43,543.7 $21,989.0 New Risk Written:
Traditional Primary $6,100.2 $5,112.4 $4,246.8 $7,844.5 $4,815.0
Bulk 112.4 1,053.1 1,146.6 724.5 0.6 Other 89.9 11.7 12.2 15.2 11.8
Total $6,302.5 $6,177.4 $5,405.7 $8,584.4 $4,827.5 New Risk Written
- Traditional Primary By FICO Score: FICO less than 620 9.4% 7.9%
9.1% 8.6% 1.4% FICO 620 to 680 34.7 34.4 33.5 34.4 17.2 FICO
greater than 680 54.6 56.8 56.9 56.8 81.4 Unscored/ Unavailable 1.3
0.9 0.5 0.2 0.0 Total 100.0% 100.0% 100.0% 100.0% 100.0% By Loan to
Value: LTV 85.0 and below 5.8% 5.7% 5.1% 5.6% 8.9% LTV 85.01 to
90.0 37.2 41.8 38.9 30.4 41.4 LTV 90.01 to 95.0 37.0 31.2 25.6 24.9
30.2 LTV greater than 95.0 20.0 21.3 30.4 39.1 19.5 Total 100.0%
100.0% 100.0% 100.0% 100.0% Full Documentation 88.6% 80.7% 81.9%
84.1% 95.8% ARMS with resets < 5 years 13.0% 13.8% 8.9% 4.0%
1.2% Net Risk in Force: Traditional Primary $15,452.2 $14,711.2
$14,582.1 $18,808.5 $20,463.0 Bulk 834.8 1,758.8 2,471.1 2,539.9
2,055.0 Other 580.9 586.1 578.9 511.1 457.0 Total $16,868.0
$17,056.2 $17,632.2 $21,859.5 $22,975.1 Persistency: Traditional
Primary 64.5% 65.5% 73.1% 77.6% 83.9% Bulk 55.7% 59.5% 70.5% 73.7%
88.4% Risk to Capital Ratio - Performing Risk Basis (b) 8.9:1 9.3:1
9.3:1 12.0:1 18.8:1 Total Financial Resources to Risk Ratio (b)
12.2% 11.8% 12.0% 11.1% 11.2% 2009 Year-to- Q1 Q2 Q3 Q4 Date
Mortgage Guaranty: New insurance written: Traditional Primary
$2,212.0 $2,573.2 $1,993.6 $1,120.3 $7,899.2 Bulk - - - - - Other
0.5 - - - 0.5 Total $2,212.6 $2,573.2 $1,993.6 $1,120.3 $7,899.8
New Risk Written: Traditional Primary $468.4 $542.8 $428.1 $242.3
$1,681.7 Bulk - - - - - Other - - - - - Total $468.4 $542.8 $428.1
$242.3 $1,681.7 New Risk Written - Traditional Primary By FICO
Score: FICO less than 620 0.0% 0.0% 0.0% 0.0% 0.0% FICO 620 to 680
4.0 1.1 0.3 0.2 1.5 FICO greater than 680 96.0 98.9 99.7 99.8 98.5
Unscored/ Unavailable 0.0 0.0 0.0 0.0 0.0 Total 100.0% 100.0%
100.0% 100.0% 100.0% By Loan to Value: LTV 85.0 and below 11.2%
11.5% 9.5% 7.7% 10.4% LTV 85.01 to 90.0 50.2 51.1 53.4 53.4 51.7
LTV 90.01 to 95.0 36.8 36.4 36.1 37.3 36.6 LTV greater than 95.0
1.8 1.0 1.0 1.6 1.3 Total 100.0% 100.0% 100.0% 100.0% 100.0% Full
Documentation 99.9% 100.0% 100.0% 100.0% 100.0% ARMS with resets
< 5 years 0.4% 0.3% 0.5% 0.9% 0.5% Net Risk in Force:
Traditional Primary $19,809.1 $19,202.8 $19,279.6 $18,727.9 Bulk
2,006.8 1,941.5 1,849.1 1,776.7 Other 386.7 330.3 297.5 297.2 Total
$22,202.7 $21,474.6 $21,426.4 $20,801.9 Persistency: Traditional
Primary 83.3% 83.3% 83.4% 82.8% Bulk 89.7% 90.8% 89.3% 88.3% Risk
to Capital Ratio - Performing Risk Basis (b) 18.6:1 20.1:1 20.9:1
23.1:1 Total Financial Resources to Risk Ratio (b) 11.8% 12.0%
12.7% 13.0% Old Republic International Corporation Supplemental
Segmented Operating Statistics Year-to-Date 2004 2005 2006 2007
2008 Mortgage Guaranty: Risk in Force by FICO Scores: Traditional
Primary: FICO less than 620 8.6% 8.3% 8.5% 8.5% 7.0% FICO 620 to
680 31.1 31.8 32.6 33.6 30.5 FICO greater than 680 51.4 53.1 54.6
55.1 60.5 Unscored/ Unavailable 8.9 6.8 4.3 2.8 2.0 Total 100.0%
100.0% 100.0% 100.0% 100.0% Bulk (c): FICO less than 620 11.5%
21.2% 24.1% 19.4% 18.2% FICO 620 to 680 45.4 38.7 35.7 34.9 33.7
FICO greater than 680 40.9 38.7 39.8 45.4 47.9 Unscored/
Unavailable 2.2 1.4 0.4 0.3 0.2 Total 100.0% 100.0% 100.0% 100.0%
100.0% Risk in Force by Original LTV Ratio: Traditional Primary:
LTV 85.0 and below 5.7% 5.4% 5.0% 4.7% 5.1% LTV 85.01 to 90.0 36.8
37.7 37.4 34.4 35.5 LTV 90.01 to 95.0 42.0 39.1 36.0 32.0 31.6 LTV
greater than 95.0 15.5 17.8 21.6 28.9 27.8 Total 100.0% 100.0%
100.0% 100.0% 100.0% Bulk (c): LTV 85.0 and below 66.4% 57.3% 63.4%
62.0% 63.5% LTV 85.01 to 90.0 16.9 27.4 23.1 20.9 20.1 LTV 90.01 to
95.0 12.9 11.6 9.0 9.3 8.6 LTV greater than 95.0 3.8 3.7 4.5 7.8
7.8 Total 100.0% 100.0% 100.0% 100.0% 100.0% Risk in Force by: Type
of Loan Documentation: Traditional Primary: Full Documentation
93.2% 90.6% 89.4% 88.0% 90.0% Reduced Documentation 6.8% 9.4% 10.6%
12.0% 10.0% Bulk (c): Full Documentation 34.0% 51.9% 51.9% 49.6%
49.1% Reduced Documentation 66.0% 48.1% 48.1% 50.4% 50.9% 2009 Q1
Q2 Q3 Q4 Mortgage Guaranty: Risk in Force by FICO Scores:
Traditional Primary: FICO less than 620 6.8% 6.7% 6.6% 6.5% FICO
620 to 680 30.2 29.7 29.1 28.8 FICO greater than 680 61.2 61.9 62.7
63.1 Unscored/Unavailable 1.8 1.7 1.6 1.6 Total 100.0% 100.0%
100.0% 100.0% Bulk (c): FICO less than 620 18.0% 17.8% 17.7% 17.6%
FICO 620 to 680 33.7 33.3 33.2 33.1 FICO greater than 680 48.1 48.7
48.9 49.2 Unscored/Unavailable 0.2 0.2 0.2 0.1 Total 100.0% 100.0%
100.0% 100.0% Risk in Force by Original LTV Ratio: Traditional
Primary: LTV 85.0 and below 5.2% 5.3% 5.3% 5.3% LTV 85.01 to 90.0
35.8 36.1 36.4 36.4 LTV 90.01 to 95.0 31.4 31.4 31.5 31.6 LTV
greater than 95.0 27.6 27.2 26.8 26.7 Total 100.0% 100.0% 100.0%
100.0% Bulk (c): LTV 85.0 and below 64.0% 65.6% 65.5% 65.9% LTV
85.01 to 90.0 19.8 18.6 18.6 18.4 LTV 90.01 to 95.0 8.4 7.8 7.9 7.8
LTV greater than 95.0 7.8 8.0 8.0 7.9 Total 100.0% 100.0% 100.0%
100.0% Risk in Force by: Type of Loan Documentation: Traditional
Primary: Full Documentation 90.1% 90.4% 90.8% 91.1% Reduced
Documentation 9.9% 9.6% 9.2% 8.9% Bulk (c): Full Documentation
49.0% 49.2% 49.5% 49.4% Reduced Documentation 51.0% 50.8% 50.5%
50.6% Old Republic International Corporation Supplemental Segmented
Operating Statistics Year-to-Date 2004 2005 2006 2007 2008 Mortgage
Guaranty: Risk in Force by Loan Type: Traditional Primary: Fixed
Rate & ARMS with resets >= 5 years 91.4% 90.9% 92.3% 94.4%
95.8% ARMS with resets < 5 years 8.6% 9.1% 7.7% 5.6% 4.2% Bulk
(c): Fixed Rate & ARMS with resets >= 5 years 82.5% 64.6%
65.7% 70.9% 74.4% ARMS with resets < 5 years 17.5% 35.4% 34.3%
29.1% 25.6% Risk in Force by Policy Year: Traditional Primary: 2003
and prior 67.0% 46.3% 33.9% 20.9% 15.6% 2004 33.0 25.3 18.6 11.3
8.8 2005 28.4 23.4 15.1 11.9 2006 24.1 16.4 13.0 2007 36.3 30.1
2008 20.6 2009 Total 100.0% 100.0% 100.0% 100.0% 100.0% Bulk (c):
2003 and prior 87.8% 37.1% 22.5% 12.1% 7.4% 2004 12.2 9.9 6.4 6.1
7.4 2005 53.0 31.1 23.4 23.5 2006 40.0 40.7 43.3 2007 17.7 18.4
2008 0.0 Total 100.0% 100.0% 100.0% 100.0% 100.0% 2009 Q1 Q2 Q3 Q4
Mortgage Guaranty: Risk in Force by Loan Type: Traditional Primary:
Fixed Rate & ARMS with resets >= 5 years 95.8% 95.9% 96.1%
96.3% ARMS with resets < 5 years 4.2% 4.1% 3.9% 3.7% Bulk (c):
Fixed Rate & ARMS with resets >= 5 years 74.8% 75.3% 75.4%
75.4% ARMS with resets < 5 years 25.2% 24.7% 24.6% 24.6% Risk in
Force by Policy Year: Traditional Primary: 2003 and prior 14.1%
13.6% 13.2% 12.9% 2004 8.3 8.1 7.8 7.7 2005 11.6 11.4 11.1 11.0
2006 12.8 12.4 12.1 11.9 2007 30.1 29.4 28.7 28.3 2008 20.8 20.4
20.1 19.8 2009 2.3 4.7 7.0 8.4 Total 100.0% 100.0% 100.0% 100.0%
Bulk (c): 2003 and prior 7.3% 7.2% 5.9% 5.0% 2004 7.5 7.7 8.0 8.2
2005 23.6 23.6 23.9 23.9 2006 43.1 42.8 43.3 43.6 2007 18.5 18.7
18.9 19.3 2008 0.0 0.0 0.0 0.0 Total 100.0% 100.0% 100.0% 100.0%
Old Republic International Corporation Supplemental Segmented
Operating Statistics Year-to-Date 2004 2005 2006 2007 2008 Mortgage
Guaranty: Risk in Force by State (Top 10 States ranked by risk in
force as of most recent quarter): Traditional Primary: Texas 6.6%
7.1% 7.5% 7.7% 8.1% Florida 9.1% 9.0% 9.0% 8.9% 8.3% California
3.9% 3.6% 3.1% 4.5% 5.5% Georgia 6.6% 6.3% 5.8% 5.3% 5.2% Illinois
5.5% 5.4% 5.4% 5.2% 5.2% North Carolina 4.7% 4.7% 4.8% 4.5% 4.4%
Pennsylvania 3.6% 3.8% 4.0% 3.8% 3.8% Ohio 3.7% 3.7% 3.7% 3.4% 3.2%
New Jersey 3.1% 3.1% 3.1% 3.1% 3.1% Virginia 3.0% 2.8% 2.8% 2.8%
2.9% Bulk (c): California 18.9% 19.0% 17.7% 17.5% 18.2% Florida
8.7% 8.3% 9.4% 9.3% 10.0% Texas 4.8% 4.5% 4.8% 4.8% 4.6% New York
12.5% 6.3% 4.6% 5.5% 5.4% Illinois 3.1% 4.9% 4.5% 4.1% 3.9% Arizona
3.0% 4.0% 4.4% 4.2% 4.3% Georgia 3.3% 3.3% 3.6% 4.2% 4.0% Ohio 2.1%
3.6% 3.4% 3.1% 3.1% Colorado 2.3% 2.7% 2.8% 3.0% 2.9% New Jersey
6.3% 3.8% 3.2% 3.4% 3.4% Delinquent Loan Counts: Traditional
Primary 21,737 22,852 20,729 29,749 57,879 Bulk 2,951 3,441 4,496
10,572 23,574 Other 513 816 603 567 769 Total 25,201 27,109 25,828
40,888 82,222 Delinquency Rates: Traditional Primary 4.1% 4.7% 4.4%
5.5% 10.3% Bulk 4.6% 3.7% 3.3% 6.9% 17.2% Other 0.3% 0.5% 0.4% 0.7%
1.0% Total 3.2% 3.6% 3.4% 5.2% 10.6% 2009 Q1 Q2 Q3 Q4 Mortgage
Guaranty: Risk in Force by State (Top 10 States ranked by risk in
force as of most recent quarter): Traditional Primary: Texas 8.1%
8.3% 8.4% 8.5% Florida 8.3% 8.2% 8.1% 8.1% California 5.7% 5.7%
5.6% 5.5% Georgia 5.2% 5.2% 5.2% 5.2% Illinois 5.1% 5.1% 5.1% 5.1%
North Carolina 4.3% 4.4% 4.5% 4.5% Pennsylvania 3.9% 3.9% 3.9% 4.0%
Ohio 3.1% 3.1% 3.1% 3.2% New Jersey 3.1% 3.1% 3.1% 3.1% Virginia
2.9% 2.9% 2.9% 2.9% Bulk (c): California 18.2% 17.8% 17.8% 17.8%
Florida 10.1% 10.1% 10.3% 10.4% Texas 4.6% 4.7% 4.7% 4.6% New York
5.4% 5.5% 5.3% 5.4% Illinois 3.9% 3.9% 4.0% 4.0% Arizona 4.3% 4.2%
4.2% 4.1% Georgia 4.0% 4.0% 4.0% 4.0% Ohio 3.1% 3.2% 3.2% 3.2%
Colorado 3.0% 3.0% 3.0% 3.0% New Jersey 3.5% 3.4% 3.4% 3.5%
Delinquent Loan Counts: Traditional Primary 62,905 69,390 79,289
86,422 Bulk 28,832 31,744 34,648 37,518 Other 912 937 1,156 1,388
Total 92,649 102,071 115,093 125,328 Delinquency Rates: Traditional
Primary 11.5% 12.9% 15.0% 16.8% Bulk 21.7% 24.6% 27.6% 30.8% Other
1.4% 1.8% 3.0% 3.9% Total 12.4% 14.2% 16.7% 18.7% Old Republic
International Corporation Supplemental Segmented Operating
Statistics Year-to-Date 2004 2005 2006 2007 2008 Mortgage Guaranty:
Delinquency Rates by State (Top 10 States ranked by risk in force
as of most recent quarter): Traditional Primary: Texas 5.0% 5.7%
4.5% 4.5% 7.1% Florida 3.2% 3.1% 2.7% 7.7% 21.9% California 2.1%
1.8% 2.9% 6.7% 19.8% Georgia 5.6% 5.9% 6.1% 7.2% 11.1% Illinois
3.8% 4.2% 4.5% 5.4% 10.8% North Carolina 4.9% 4.9% 4.6% 4.8% 7.6%
Pennsylvania 4.4% 4.7% 4.8% 5.2% 7.7% Ohio 7.6% 8.3% 7.8% 8.1%
11.0% New Jersey 4.2% 4.1% 4.1% 5.4% 11.4% Virginia 2.1% 2.2% 2.6%
4.1% 8.1% Bulk: California 1.3% 0.9% 1.6% 7.0% 22.4% Florida 2.5%
1.9% 1.6% 7.8% 27.0% Texas 6.1% 5.5% 4.0% 5.4% 10.2% New York 4.9%
4.3% 4.4% 6.6% 13.8% Illinois 5.2% 3.0% 4.2% 8.6% 19.1% Arizona
3.6% 0.9% 1.0% 5.1% 18.2% Georgia 7.0% 5.8% 4.4% 7.3% 16.3% Ohio
13.3% 8.4% 9.3% 10.6% 17.1% Colorado 7.1% 3.0% 3.3% 5.8% 9.8% New
Jersey 3.3% 3.7% 3.5% 6.6% 16.0% Average Paid Claim Amount (in
whole $): Traditional Primary $23,920 $24,255 $25,989 $32,214
$43,532 Bulk $19,885 $20,639 $21,846 $34,951 $56,481 2009 Year-to-
Q1 Q2 Q3 Q4 Date Mortgage Guaranty: Delinquency Rates by State (Top
10 States ranked by risk in force as of most recent quarter):
Traditional Primary: Texas 6.9% 7.7% 9.2% 10.6% Florida 25.4% 27.9%
31.2% 34.1% California 23.7% 25.3% 28.5% 30.5% Georgia 12.1% 13.7%
16.2% 18.8% Illinois 12.2% 14.2% 17.1% 19.5% North Carolina 8.0%
9.0% 10.8% 12.3% Pennsylvania 8.2% 9.1% 10.6% 11.6% Ohio 11.4%
12.5% 14.7% 16.4% New Jersey 13.9% 15.8% 18.9% 21.1% Virginia 9.3%
10.7% 12.5% 13.9% Bulk: California 30.0% 34.2% 37.5% 41.3% Florida
34.3% 38.5% 42.5% 46.5% Texas 12.2% 13.0% 14.5% 16.3% New York
18.0% 20.6% 23.7% 26.8% Illinois 22.8% 27.0% 31.3% 35.7% Arizona
25.1% 29.8% 34.0% 37.5% Georgia 19.5% 20.8% 23.6% 27.6% Ohio 19.1%
19.9% 21.1% 23.4% Colorado 11.6% 13.1% 15.2% 17.0% New Jersey 22.0%
25.8% 30.0% 33.3% Average Paid Claim Amount (in whole $):
Traditional Primary $48,968 $50,212 $45,919 $48,779 $48,492 Bulk
$61,806 $61,270 $59,640 $55,728 $59,386 Notes to Accompanying
Financial Summaries ($in Millions, Except Share Data) (a) All per
share statistics herein have been adjusted to reflect all stock
dividends or splits declared through December 31, 2009. In
calculating book value and earnings per share, accounting rules
require that common shares owned by the Company's Employee Savings
and Stock Ownership Plan that are as yet unallocated to
participants in the plan be excluded from the calculation. Such
shares are issued and outstanding, have the same voting and other
rights applicable to all other common shares, and may be sold at
any time by the plan. (b) Old Republic monitors certain balance
sheet leverage and trends therein through these ratios with respect
to its mortgage guaranty (b - 1 & 2) and title (b - 3)
segments: 1 - Risk to Capital Ratio - Performing risk basis: This
ratio measures the Company's outstanding net risk in force only on
those mortgage loans that are current as to principal and interest
in relation to total statutory capital. This ratio therefore
excludes non-performing risk exposures (i.e. the outstanding risk
on reported loans in default) for which the expected ultimate loss
cost has been recognized through the establishment of claim
reserves. The Company believes this ratio better matches available
statutory capital with the portion of the risk in force for which
no claim reserves are required. 2 - Total Financial Resources to
Risk Ratio: This ratio measures all of the claim resources
available to the Company, including statutory capital, and claim
and unearned premium reserves in relation to total net risk in
force. The Company believes this ratio is conceptually similar to a
banking institution's capital to assets leverage ratio, whereby the
non-balance sheet value of a mortgage guaranty insurer's net risk
in force is related to total balance sheet resources available to
meet estimated losses from outstanding risk exposures. 3 - The
Title Reserves to Paid Losses Ratio represents average paid losses
for the most recent five years divided into claim reserves at the
end of any one year or interim period. The higher this ratio, the
greater is a title insurer's expected ability to meet obligations
to its assureds. (c) Bulk pool risk in-force, which represented
46.8% of total bulk risk in-force at December 31, 2009, has been
allocated pro-rata based on insurance in-force. Safe Harbor
Statement Historical data pertaining to the operating results,
liquidity, and other performance indicators applicable to an
insurance enterprise such as Old Republic are not necessarily
indicative of results to be achieved in succeeding years. In
addition to the factors cited below, the long-term nature of the
insurance business, seasonal and annual patterns in premium
production and incidence of claims, changes in yields obtained on
invested assets, changes in government policies and free markets
affecting inflation rates and general economic conditions, and
changes in legal precedents or the application of law affecting the
settlement of disputed and other claims can have a bearing on
period-to-period comparisons and future operating results. Some of
the oral or written statements made in the Company's reports, press
releases, and conference calls following earnings releases, can
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Of necessity, any
such forward-looking statements involve assumptions, uncertainties,
and risks that may affect the Company's future performance. With
regard to Old Republic's General Insurance segment, its results can
be affected, in particular, by the level of market competition,
which is typically a function of available capital and expected
returns on such capital among competitors, the levels of interest
and inflation rates, and periodic changes in claim frequency and
severity patterns caused by natural disasters, weather conditions,
accidents, illnesses, work-related injuries, and unanticipated
external events. Mortgage Guaranty and Title Insurance results can
be affected by similar factors, and by changes in national and
regional housing demand and values, the availability and cost of
mortgage loans, employment trends, and default rates on mortgage
loans. Mortgage Guaranty results, in particular, may also be
affected by various risk-sharing arrangements with business
producers, as well as the risk management and pricing policies of
government sponsored enterprises. Life and health insurance
earnings can be affected by the levels of employment and consumer
spending, variations in mortality and health trends, and changes in
policy lapsation rates. At the parent holding company level,
operating earnings or losses are generally reflective of the amount
of debt outstanding and its cost, interest income on temporary
holdings of short-term investments, and period-to-period variations
in the costs of administering the Company's widespread operations.
A more detailed listing and discussion of the risks and other
factors which affect the Company's risk-taking insurance business
are included in Part I, Item 1A - Risk Factors, of the Company's
2008 Form 10-K annual report to the Securities and Exchange
Commission, which Item is specifically incorporated herein by
reference. Any forward-looking statements or commentaries speak
only as of their dates. Old Republic undertakes no obligation to
publicly update or revise any and all such comments, whether as a
result of new information, future events or otherwise, and
accordingly they may not be unduly relied upon. For the latest news
releases and other corporate documents on Old Republic: Please
write to: Investor Relations Old Republic International Corporation
307 North Michigan Avenue Chicago, IL 60601 312-346-8100 or visit
us at http://www.oldrepublic.com/ DATASOURCE: Old Republic
International Corporation CONTACT: A.C. Zucaro, Chairman & CEO
of Old Republic International Corporation, +1-312-346-8100; or
Analysts/Investors, Leslie Loyet of Financial Relations Board,
+1-312-640-6672, , for Old Republic International Corporation Web
Site: http://www.oldrepublic.com/
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