MANAGING FOR THE LONG RUN
|
2022 ANNUAL REVIEW
ii
ABOUT OLD REPUBLIC
Our MISSION is to provide quality insurance security and related services to
businesses, individuals, and public institutions, and be a dependable long-term
steward of the trust that policyholders, shareholders, and other important
stakeholders place in us.
Old Republic traces its beginnings to 1923, although several acquired subsidiaries
began operations much earlier. We are primarily a commercial lines underwriter
serving the insurance needs of a large number of organizations, including many of
North America’s leading industrial and financial services institutions.
Our subsidiaries actively market, underwrite, and provide risk management
services for a wide variety of coverages, mostly in the general and title insurance
fields. The breadth of coverages ensures wide diversification and dispersion of
risks. Additionally, Old Republic’s companies focus only on carefully selected
major sectors of the North American economy that are not uniformly exposed to
the same business cycles. Old Republic operates in a decentralized manner that
emphasizes specialization by type of insurance coverage, industry, and economic
sector. Old Republic’s general insurance business ranks among the nation’s 50
largest, while our title insurance business is the third largest in its industry.
Old Republic is one of the nation’s 50 largest shareholder-owned insurance
businesses. We are a member of the Fortune 500 listing of America’s largest
companies. ORI’s performance reflects an entrepreneurial spirit, a necessary long-
term orientation in the management of our business, and a corporate culture that
promotes accountability and encourages the taking of prudent business risks.
A summary below shows our Book Value Annual Compound Total Return and Market
Value Annual Compound Total Return alongside two market indices. We favor
10-year trends, as these likely encompass one or two economic and/or insurance
underwriting cycles.
ORI Book Value
Annual
Compound
Total Return (1)
ORI Market Value
Annual
Compound
Total Return (2)
S&P 500
Index Annual
Compound
Total Return
S&P P&C
Insurance Index
Annual Compound
Total Return
Ten Years 2013 – 2022 11.5% 16.0% 12.5% 16.0%
(1) Calculated as the sum of the annual change in book value per share, plus cash dividends.
(2) Calculated as the sum of the annual change in market value per share, assuming cash dividends are reinvested
on a pretax basis in shares when paid.
According to the most recent edition of Mergent’s Dividend Achievers, Old Republic
is 58th among 111 publicly held companies, out of thousands considered, that
have posted at least 25 consecutive years of annual dividend growth. Moreover,
Old Republic has paid a cash dividend without interruption since 1942 (82 years),
and it has raised the annual cash dividend pay-out for each of the past 42 years.
CONTENTS
2 ORI’s Long Run Focus
Creates Value
3 2022 Annual Report Letter
13 General Insurance Group
21 Title Insurance Group
24 Republic Financial
Indemnity Group
24 Corporate & Other Operations
25 Investment Management
30 Capitalization and Financial
Ratings
31 Ten-Year Financial Summary
32 Ten-Year Operating and
Balance Sheet Statistics
33 Common Share Statistics
34 Consolidated Balance Sheets
35 Consolidated Statements
of Income
35 Consolidated Statements
of Comprehensive Income
36 Consolidated Statements of
Preferred Stock and Common
Shareholders’ Equity
37 Consolidated Statements
of Cash Flows
38 Key Operating Subsidiaries
39 Board of Directors and
Senior Executive Groups
41 The Most Recent Decade
43 Historical and Forward
Looking Statements
11
FINANCIAL HIGHLIGHTS
($ in Millions, Except Per Share Data)
Consolidated Data
2022 2021 % Change
Total Revenues $ 8,083.7 $ 9,341.6 (13.5)%
Pretax Income: Excluding Investment Gains (Losses) 1,058.6 1,164.0 (9.1)
Investment Gains (Losses) (201.1) 758.0 (126.5)
Total Including Investment Gains (Losses) 857.4 1,922.1 (55.4)
Net Income: Excluding Investment Gains (Losses) 845.1 935.9 (9.7)
Net of Tax Investment Gains (Losses) (158.6) 598.4 (126.5)
Total Including Investment Gains (Losses) 686.4 1,534.3 (55.3)
Net Income Per Share-Diluted: Excluding Investment Gains (Losses) 2.79 3.08 (9.4)
Net of Tax Investment Gains (Losses) (0.53) 1.97 (126.9)
Total Including Investment Gains (Losses) 2.26 5.05 (55.2)
Operating Cash Flow 1,170.6 1,311.7 (10.8)
Assets 25,159.4 24,981.8 0.7
Common Shareholders’ Equity: Total 6,166.2 6,893.2 (10.5)
Per Share 21.05 22.76 (7.5)
Cash and Invested Assets Per Share 54.77 55.54 (1.4)
Cash Dividends Per Share* $ 1.92 $ 2.38 (19.3)%
* In addition to the regular quarterly dividend payment of $0.23 per share, a special cash dividend of $1.00 per share was declared in August 2022.
In addition to the regular quarterly dividend payment of $0.22 per share, a special cash dividend of $1.50 per share was declared in August 2021.
Segments of Business
Revenues Pretax Income
2022 2021 % Change 2022 2021 % Change
General Insurance $ 4,315.6 $ 4,042.5 6.8% $ 689.8 $ 589.6 17.0%
Title Insurance 3,882.7 4,449.3 (12.7) 308.8 515.7 (40.1)
RFIG Run-off 30.0 44.1 (32.1) 35.2 32.8 7.3
Corporate & Other 56.5 47.5 19.0 24.6 25.7 (4.3)
Total Operating 8,284.9 8,583.5 (3.5) 1,058.6 1,164.0 (9.1)
Investment Gains (Losses):
Realized From Actual Transactions
and Impairments 62.2 6.9 N/M 62.2 6.9 N/M
Unrealized From Changes
in Fair Value of Equity Securities (263.4) 751.1 (135.1) (263.4) 751.1 (135.1)
Subtotal (201.1) 758.0 (126.5) (201.1) 758.0 (126.5)
Consolidated $ 8,083.7 $ 9,341.6 (13.5)% $ 8 57.4 $ 1,922.1 (55.4)%
FINANCIAL HIGHLIGHTS | 2022 ANNUAL REVIEW
22
ORI’S LONG RUN FOCUS CREATES VALUE
WE MANAGE FOR THE LONG RUN
The insurance business is distinguished from most others in that the prices (premiums) charged
for most products are set without knowing what the ultimate loss costs will be. There also is
no way to know exactly when claims will be paid, which may be many years after a policy was
issued or expired.
OUR SUCCESS COMES FROM FOCUS AND STAYING POWER
Our primary focus is to achieve favorable underwriting results over cycles, and on maintaining a sound financial
condition to support our underwriting subsidiaries’ long-term obligations to policyholders and their beneficiaries. To
achieve both requires adhering to insurance and risk management principles, and emphasizing asset diversification
and quality.
Effectively managing for the long run means we operate with little regard for quarterly or even annual reporting
periods. These time frames are too short. We favor 10-year trends as these likely provide enough time for economic
and/or underwriting cycles to run their course, for premium rate changes and subsequent underwriting results to be
reflected in financial statements, and for reserved loss costs to be quantified with greater certainty.
OUR LONG-TERM PERSPECTIVE CREATES VALUE FOR ALL STAKEHOLDERS
Our performance reflects the success of our long-term strategy for our diversified, specialty insurance businesses.
The General Insurance and Title Insurance segments both focus on providing specialized coverages, products and
related services. This combination allows us to mitigate the effects of cycles while producing sustainable earnings
growth with lower levels of volatility over time.
By applying a long-term perspective, Old Republic has proven itself a reliable insurer and very good investment over
time. Our record stacks up well against other insurers—as well as other successful corporations.
Our commitment to creating long-term shareholder value has created fairly consistent growth in four areas:
1) our quality invested asset base, 2) bottom-line earnings, 3) book value, and 4) cash dividends.
All of these achievements stem from our values, our culture, our strategy of taking prudent business risks, and our
conservative approach to asset and capital management.
2022 ANNUAL REVIEW | ORI'S LONG RUN FOCUS CREATES VALUE
33
2022 ANNUAL REPORT LETTER
Dear shareholders and other important stakeholders:
In 2022, our valued associates, most of whom are also shareholders, continued to diligently
serve the needs of our businesses, our customers, and other important stakeholders. We
are grateful for their dedication to delivering our products and services with excellence and
discipline, which led to Old Republic’s strong operating performance in 2022.
ANOTHER YEAR OF STRONG OPERATING PERFORMANCE
Consolidated pretax income, excluding investment gains (losses), was nearly $1.1 billion compared to
the record $1.2 billion in 2021. Our General Insurance business achieved a new record of $690 million in
pretax income, up from the record $590 million last year. Our Title Insurance business produced $309
million of pretax income, less than the record $516 million in 2021, reflecting the expected effect of higher
interest rates on the real estate market.
Underwriting profit remains strong, as evidenced by the consolidated 91.0% combined ratio in 2022 and
89.9% in 2021.
Operating return on shareholders’ equity (beginning of year) was 12.3% in 2022 and 15.1% in 2021.
Shareholders’ equity ended the year at $6.2 billion, after we returned $862 million to shareholders
through ordinary dividends of 92 cents per share, a special dividend of one dollar per share, and share
repurchases that enabled us to retire 12.6 million shares.
2022 PER SHARE PERFORMANCE
★ Net income per diluted share, excluding investment gains (losses), was $2.79 compared to $3.08 in 2021.
★ Shareholders’ equity per share finished the year at $21.05 compared to $22.76 at year-end 2021.
★ Total market return per share, with dividends reinvested, was 6.7% in 2022 and 45.2% in 2021.
★ Total book value return per share, with the addition of dividends, was 0.9% in 2022 and 21.2% in 2021.
2022 ANNUAL REPORT LETTER | 2022 ANNUAL REVIEW
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2022 ANNUAL REVIEW | 2022 ANNUAL REPORT LETTER
The table at the end of this letter shows these returns alongside two market indices, tracked back to 1968
when ORI first reported financial results as a publicly traded insurance holding company. We favor 10-year
trends, as these likely include one or two economic and/or insurance underwriting cycles. As can be seen,
our long-term trends outperform these indices. Our performance reflects the success of our long-term
strategy for our diversified, specialty insurance businesses. We remain confident that ORI will continue
creating long-term value for our shareholders and other important stakeholders well into the future.
CONSOLIDATED OPERATIONS SHOW CONTINUED STRENGTH
We focus on pretax income, excluding investment gains (losses) because, in our opinion, this measure
provides a better way to analyze, evaluate, and establish accountability for results. The inclusion of realized
investment gains (losses) in net income can mask trends in operating results, because such realizations are
often highly discretionary. Similarly, the inclusion of unrealized investment gains (losses) in equity securities
can further distort such operating results.
21
2013 14 15 16 17 18 19
Net Income
Net Operating Income
ML5
$ IN MILLIONS
0
200
400
600
800
1,000
1,200
1,400
1,600
22
Consolidated Net Income Trends
Consolidated Net Operating Income Trends
20 2113 14 15 16 17 18 19
ML4
$ IN MILLIONS
-200
0
200
400
600
800
1,000
1,200
1,400
22
Consolidated Net Operating Cash Flow Trends
0.72
0.88
0.73
0.74
0.75
0.76
0.78
0.84
0.92
0.80
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
21
2013 14 15 16 17 18 19
2.24
IN DOLLARS
1.25
1.28
1.46
1.11
ML3
Regular Cash Dividends
Net Operating Income Diluted
Special Cash Dividends
1.84
0.84
1.86
3.08
2.79
22
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1.50
1.00
1.00
1.00
1.00
Net Operating Income Per Share-Diluted Trends
Cash Dividends Per Share Trends
0
5
10
15
20
25
212013 14 15 16 17 18 19
IN DOLLARS
LR3
Year - End Book Value
Year - End Market Closing Price
22
Book Value Per Share Trends
Market Value Per Share Trends
5
2022 ANNUAL REPORT LETTER | 2022 ANNUAL REVIEW
Sources of Consolidated Income ($ in millions, except share data)
2022 2021 2020 2019 2018 2017
Net premiums and fees earned:
General insurance $ 3,808.6 $ 3,555.5 $ 3,394.2 $ 3,432.4 $ 3,277.1 $ 3,110.8
Title insurance 3,833.8 4,404.3 3,286.3 2,736.0 2,573.1 2,516.5
RFIG run-off 23.2 32.6 45.1 59.2 75.9 122.9
Corporate & other 9.6 11.0 12.0 13.4 14.6 18.8
Consolidated $ 7,675.3 $ 8,003.6 $ 6,737.8 $ 6,241.1 $ 5,940.9 $ 5,769.1
Underwriting and related services income (loss):
General insurance $ 400.9 $ 311.4 $ 151.8 $ 84.9 $ 91.2 $ 84.3
Title insurance 261.3 474.0 305.8 193.4 185.1 206.7
RFIG run-off 28.4 21.3 (5.3) 12.7 29.7 (95.2)
Corporate & other (24.9) (20.9) (17.0) (15.5) (21.9) (28.4)
Consolidated $ 665.8 $ 785.9 $ 435.2 $ 275.6 $ 284.0 $ 167.3
Consolidated underwriting ratio:
Loss ratio:
Current year 35.5% 32.9% 38.2% 41.7% 42.7% 45.7%
Prior years (3.7) (2.7) (1.2) (0.5) (1.3) (2.7)
Total 31.8 30.2 37.0 41.2 41.4 43.0
Expense ratio 59.2 59.7 56.3 54.1 53.5 53.9
Combined ratio 91.0% 89.9% 93.3% 95.3% 94.9% 96.9%
Net investment income:
General insurance $ 358.0 $ 342.4 $ 352.2 $ 356.4 $ 341.0 $ 318.9
Title insurance 47.9 43.8 42.0 41.4 38.8 37.3
RFIG run-off 6.7 11.4 15.2 17.6 20.1 21.7
Corporate & other 46.8 36.5 29.4 35.1 31.7 31.4
Consolidated $ 459.5 $ 434.3 $ 438.9 $ 450.7 $ 431.8 $ 409.4
Interest and other charges (credits):
General insurance $ 69.1 $ 64.2 $ 64.2 $ 71.1 $ 68.3 $ 62.9
Title insurance 0.4 2.1 3.8 4.1 4.6 6.9
RFIG run-off – – – – – –
Corporate & other (a) (2.8) (10.1) (24.3) (35.2) (30.6) (6.9)
Consolidated $ 66.7 $ 56.2 $ 43.7 $ 40.0 $ 42.2 $ 63.0
Segmented and consolidated pretax income (loss)
excluding investment gains (losses):
General insurance $ 689.8 $ 589.6 $ 439.8 $ 370.2 $ 363.9 $ 340.3
Title insurance 308.8 515.7 344.0 230.8 219.3 237.1
RFIG run-off 35.2 32.8 9.8 30.3 49.9 (73.5)
Corporate & other 24.6 25.7 36.7 54.8 40.4 9.9
Consolidated 1,058.6 1,164.0 830.4 686.2 673.7 513.8
Income taxes on above 213.4 228.1 159.6 132.0 117.2 195.7
Net income excluding investment gains (losses): 845.1 935.9 670.8 554.2 556.4 318.0
Consolidated pretax investment gains (losses):
Realized from actual transactions
and impairments 62.2 6.9 14.2 36.6 58.2 211.6
Unrealized from changes in
fair value of equity securities (263.4) 751.1 (156.2) 599.5 (293.8) –
Total (201.1) 758.0 (142.0) 636.1 (235.6) 211.6
Income taxes (credits) on above (42.5) 159.6 (29.8) 133.8 (49.6) (30.8)
Net of tax investment gains (losses) (158.6) 598.4 (112.1) 502.2 (185.9) 242.4
Net income $ 686.4 $ 1,534.3 $ 558.6 $ 1,056.4 $ 370.5 $ 560.5
Consolidated operating cash flow $ 1,170.6 $ 1,311.7 $ 1,185.0 $ 936.2 $ 760.5 $ 452.8
Net income per diluted share
Net income excluding investment gains (losses) $ 2.79 $ 3.08 $ 2.24 $ 1.84 $ 1.8 6 $ 1.11
Realized investment gains 0.16 0.02 0.04 0.10 0.15 0.81
Unrealized investment gains (losses) (0.69) 1.95 (0.41) 1.57 (0.77) –
Net income $ 2.26 $ 5.05 $ 1.87 $ 3.51 $ 1.24 $ 1.92
Cash dividends per share (b) $ 1.92 $ 2.38 $ 1.84 $ 1.80 $ 0.78 $ 1.76
Ending book value per share $ 21.05 $ 22.76 $ 20.75 $ 19.98 $ 17.23 $ 17.72
Closing stock market price per share $ 24.15 $ 24.58 $ 19.71 $ 22.37 $ 20.57 $ 21.38
(a) Includes consolidation/elimination entries.
(b) 2022 includes a special cash dividend of $1.00 per share, 2021 includes a special cash dividend of $1.50 per share, and 2020, 2019 and 2017
include special cash dividends of $1.00 per share.
6
We believe the information presented in the preceeding table highlights the most meaningful indicators of
ORI’s segmented and consolidated financial performance. The information underscores the performance of
our underwriting subsidiaries, as well as our sound investment of their capital and underwriting cash flows.
General Insurance net premiums and fees earned rose 7%, driven by premium rate increases for most
lines of coverage, strong renewal retention, and healthy new business production.
The table below shows the General Insurance combined ratios for the past several years. Our expense ratio
was higher in 2022, generally reflecting a shift in the line of coverage mix toward lines with higher expense
ratios and lower loss ratios. We target combined ratios between 90% and 95% over a full underwriting cycle,
recognizing that quarterly and annual ratios and trends may deviate from this range, particularly given the
long claim payment patterns associated with the business.
General Insurance combined ratios:
2022 2021 2020 2019 2018 2017
Loss ratio 62.1% 64.8% 69.9% 71.8% 72.2% 71.8%
Expense ratio 27.4 26.5 25.6 25.7 25.0 25.5
Combined ratio 89.5% 91.3% 95.5% 97.5% 97.2% 97.3%
During 2022, we launched our newest underwriting subsidiary, Old Republic Excess & Surplus. The start-up
of new ventures by experienced industry experts remains core to our strategy and follows recent launches
of Old Republic Inland Marine in 2021 and Old Republic Residual Market Services in 2018.
We remain optimistic about the continued progress of our General Insurance business. Our long-term
strategy aims to drive profitable growth with a focus on 1) organic growth, 2) new ventures, 3) selective
acquisitions, 4) new product offerings, and 5) new distribution channels; all while continuing our pursuit of
underwriting excellence.
Title Insurance net premiums and fees earned declined 13% due to a significant decline in residential real
estate market activity. Commercial activity was a bright spot, producing record commercial premiums in 2022.
Our Title Insurance business model is based on mitigating and preventing losses rather than assuming
significant underwriting risk. Loss prevention is driven at the front-end of a transaction, and is led by
professionals trained in real estate law who do extensive searches of historical real estate transfers before
policies are issued. As a result, operating expenses are much higher for title insurance when compared with
other types of insurance. However, that also means loss costs are much lower.
The table below shows several years of Title Insurance combined ratios. The higher expense ratio in 2022
generally reflects lower revenues, and the 93.2% combined ratio demonstrates the resiliency of our Title
Insurance business model. We target combined ratios between 90% and 95%, recognizing that quarterly and
annual ratios and trends may deviate from this range, given the cyclicality of real estate markets.
Title Insurance combined ratios:
2022 2021 2020 2019 2018 2017
Loss ratio 2.3% 2.6% 2.3% 2.5% 1.9% 0.8%
Expense ratio 90.9 86.7 88.4 90.5 90.9 91.0
Combined ratio 93.2% 89.3% 90.7% 93.0% 92.8% 91.8%
2022 ANNUAL REVIEW | 2022 ANNUAL REPORT LETTER
7
In 2022, we acquired two independent title agents based on their strong cultural fit and dedication to
customer service in their respective markets.
Our long-term strategy to grow revenues remains focused on 1) organic growth, 2) selective acquisitions, 3)
expansion of our commercial title business, and 4) leading, innovative technology solutions for our independent
agents and customers. We are well positioned for a recovery in the real estate market with an outstanding
team, deep industry relationships, and technological capabilities that differentiate us from competitors.
General Insurance and Title Insurance complement each other exceptionally well. Consistent with ORI’s
long-term strategy, both focus on providing specialized insurance coverages, products and related services.
The customer base for each requires strong financial ratings that are predicated on a strong balance sheet.
General Insurance and Title Insurance share critical complementary enterprise risk management attributes
that enhance the balance and stability of ORI’s business model.
TITLE INSURANCE GENERAL INSURANCE
Capital Light
Low Loss - High Expense
Concentrated Competitors
Real Estate Market Cycle Influenced
Capital Heavy
High Loss - Low Expense
Diverse Competitors
P&C Market Cycle Influenced
RFIG Run-Off is now entirely represented by RMIC’s mortgage guaranty coverages. In 2022, RMIC
produced $35 million of pretax income, excluding investment gains (losses), compared to $33 million in
2021. At the end of 2022, the business had shareholders’ equity of $264 million after paying $140 million
in dividends to the parent company in 2022. Over the next several years, we expect profitability to decline
as premium revenues drop in tandem with insurance risk in-force. We continue to evaluate options to either
continue to run off the business through extinction or to sell the business.
2022 ANNUAL REPORT LETTER | 2022 ANNUAL REVIEW
2013 14 15 16 17 18 19 21
$ IN MILLIONS
ML2
-200
0
200
400
600
800
1,000
1,200
22
RFIG Run-off
Consolidated
General
Title
2013 14 15 16 17 18 19 21 22
$ IN MILLIONS
ML1
RFIG Run-off
Consolidated
General
Title
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Segmented Pretax Operating Income Trends Segmented Operating Revenue Trends
8
Consolidated Investment Income increased 6% for the year, due primarily to higher fixed income
investment yields. During 2022, we re-allocated part of the investment portfolio from equity securities
(common stocks) to fixed income securities (bonds and notes) to reduce overall risk and in recognition of
the higher investment yields available on fixed income investments. At year-end 2022, approximately 80% of
the fair-valued investment portfolio of $15.9 billion was allocated to fixed income securities and short-term
investments, up from 68% at year-end 2021. The remaining 20% was invested in equity securities, down from
32% the prior year. The rebalancing in 2022, along with ongoing reinvestment into fixed income securities,
increased the ending fixed income portfolio yield from 2.5% at year-end 2021 to 3.3% at the end of 2022.
Our investment management process remains focused on retaining quality investments that produce
consistent streams of investment income. The fixed income portfolio continues to be the anchor for
the underwriting subsidiaries’ obligations. The maturities of our fixed income assets are matched to the
expected liabilities for claim payment obligations to policyholders and their beneficiaries. Our equity
portfolio consists of high-quality common stocks of U.S. companies with long-term records of reasonable
earnings growth and steadily increasing dividends. Dividends from common stocks have been an important
source of investment income, contributing 29% of our total investment income in 2022.
In 2022, we realized $375 million of gains from equity securities, and we offset those gains for tax purposes
with losses from fixed income securities, giving us net realized investment gains of $62 million. At the end
of 2022, net unrealized gains in our equity portfolio were $1.27 billion, while net unrealized losses in our
fixed income portfolio from mark-to-market adjustments were $590 million, which negatively affected book
value return per share.
Old Republic’s investment portfolio is directed in consideration of enterprise-wide risk management
objectives, intended to ensure solid funding of our underwriting subsidiaries’ long-term claim payment
obligations to policyholders and their beneficiaries, as well as the long-term stability of the subsidiaries’
capital base. For these reasons, the investment portfolio does not contain high risk or illiquid asset classes
and has zero or extremely limited exposure to, collateralized debt obligations (CDO’s), credit default and
interest rate swaps, hybrid securities, asset-backed securities (ABS), guaranteed investment contracts
(GIC), structured investment vehicles (SIV), auction rate variable short-term securities, limited partnerships,
derivatives, hedge funds or private equity investments. Moreover, the Company does not engage in hedging
or securities lending transactions, nor does it invest in securities whose values are predicated on non-
regulated financial instruments exhibiting amorphous or unfunded counter-party risk attributes. Pursuant to
our enterprise risk management guidelines and controls, we perform regular stress tests of our investment
portfolio to gain reasonable assurance that periodic downdrafts in market prices do not seriously undermine
our financial strength and the long-term continuity and prospects of our underwriting subsidiaries.
EVALUATING 2022’S PERFORMANCE
IN VIEW OF OUR LONG-TERM BUSINESS STRATEGY
Our long-term strategy is designed to create value for all stakeholders through our focus on providing
specialized insurance coverages, products and related services. Much of our long-term underwriting
success is due to our history of specializing within the P&C and Title insurance markets.
2022 ANNUAL REVIEW | 2022 ANNUAL REPORT LETTER
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2022 ANNUAL REPORT LETTER | 2022 ANNUAL REVIEW
One important way we support this strategy is through the conservative, long-term management of our
balance sheet. Maintaining a strong financial position gives us the ability to achieve these goals:
★
Support our underwriting subsidiaries’ ability to take on insurance risk and cover the resulting obligations to
policyholders and their beneficiaries
★
Enable our underwriting subsidiaries to remain resilient in the face of recurring marketplace challenges,
adhere to pricing integrity and underwriting standards, and stay away from existing or new business with
poor prospects of sustainable profitability
★
Moderate debt leverage to better ensure control of our destiny
★
Retain enough liquidity to address unforeseen contingencies
★
Pay shareholders a sustainable
and increasing dividend
In 2023, we are celebrating Old Republic’s 100 year anniversary under the banner of 100 Years of
Excellence, which recognizes our rich history and the next chapter of serving specialty niches within the
P&C and Title insurance markets.
We enter 2023 in a strong position:
★
Our associates have significant intellectual capital and are dedicated to our mission
★
We have high retention rates with a loyal and growing customer base
★
We have a strong, high-quality capital base
★
Our balance sheet is solid
Looking forward, we will continue to seek out opportunities to grow our market share through organic
growth, new ventures, select acquisitions, and new product offerings. Our focus on providing specialized
underwriting and risk management expertise to our specialty customers will continue to include investments
in people and technology, and an unrelenting focus on excellence.
Respectfully submitted on behalf of the
Company and its Board of Directors,
Chicago, Illinois Craig R. Smiddy
March 31, 2023 President and Chief Executive Officer
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2022 ANNUAL REVIEW | 2022 ANNUAL REPORT LETTER
OLD REPUBLIC’S PURPOSE IS INCLUDED IN OUR MISSION STATEMENT:
To provide quality insurance security and related services to businesses, individuals, and public
institutions, and be a dependable long-term steward of the trust that policyholders, shareholders,
and other important stakeholders place in us.
Our Lodestar embodies the Company’s mission by binding organization, purpose, and long-term strategy
into a coordinated whole.
Our Community:
The Public Interest
We’re an insurance business vested
with the public interest. All is done
right, within the law, and with integrity.
Our Customers:
Policyholders & Buyers
of Services
Good things happen when
customers’ legitimate needs
are fulfilled by our people.
Our People: Intellectual
Capital Providers
Our people’s intellectual
talent, know-how, and
honorable work put
capital to efficient use.
Our Capital Providers:
Shareholders & Debt Holders
Capital is the lifeblood of a
financial institution. It is the source
and continuity of the enterprise.
Our MISSION is to Provide Quality Insurance Security and Related Services to
Businesses, Individuals, and Public Institutions and Be a Dependable Long-Term Steward
of the Trust that Policyholders and Other Important Stakeholders Place in Us.
ORI’s Lodestar: Strategic Governance
on Behalf of All Important Stakeholders
Putting It All Together For The Long Run
Old
Republic’s
Lodestar
Our
Customers
Our
Community
Our Capital
Providers
Our
People
Our Community:
The Public Interest
We’re an insurance business vested
with the public interest. All is done
right, within the law, and with integrity.
Our Customers:
Policyholders & Buyers
of Services
Good things happen when
customers’ legitimate needs
are fulfilled by our people.
Our People: Intellectual
Capital Providers
Our people’s intellectual
talent, know-how, and
honorable work put
capital to efficient use.
Our Capital Providers:
Shareholders & Debt Holders
Capital is the lifeblood of a
financial institution. It is the source
and continuity of the enterprise.
Our MISSION is to Provide Quality Insurance Security and Related Services to
Businesses, Individuals, and Public Institutions and Be a Dependable Long-Term Steward
of the Trust that Policyholders and Other Important Stakeholders Place in Us.
ORI’s Lodestar: Strategic Governance
on Behalf of All Important Stakeholders
Putting It All Together For The Long Run
Old
Republic’s
Lodestar
Our
Customers
Our
Community
Our Capital
Providers
Our
People
Our Community:
The Public Interest
We’re an insurance business vested
with the public interest. All is done
right, within the law, and with integrity.
Our Customers:
Policyholders & Buyers
of Services
Good things happen when
customers’ legitimate needs
are fulfilled by our people.
Our People: Intellectual
Capital Providers
Our people’s intellectual
talent, know-how, and
honorable work put
capital to efficient use.
Our Capital Providers:
Shareholders & Debt Holders
Capital is the lifeblood of a
financial institution. It is the source
and continuity of the enterprise.
Our MISSION is to Provide Quality Insurance Security and Related Services to
Businesses, Individuals, and Public Institutions and Be a Dependable Long-Term Steward
of the Trust that Policyholders and Other Important Stakeholders Place in Us.
ORI’s Lodestar: Strategic Governance
on Behalf of All Important Stakeholders
Putting It All Together For The Long Run
Old
Republic’s
Lodestar
Our
Customers
Our
Community
Our Capital
Providers
Our
People
Our Community:
The Public Interest
We’re an insurance business vested
with the public interest. All is done
right, within the law, and with integrity.
Our Customers:
Policyholders & Buyers
of Services
Good things happen when
customers’ legitimate needs
are fulfilled by our people.
Our People: Intellectual
Capital Providers
Our people’s intellectual
talent, know-how, and
honorable work put
capital to efficient use.
Our Capital Providers:
Shareholders & Debt Holders
Capital is the lifeblood of a
financial institution. It is the source
and continuity of the enterprise.
Our MISSION is to Provide Quality Insurance Security and Related Services to
Businesses, Individuals, and Public Institutions and Be a Dependable Long-Term Steward
of the Trust that Policyholders and Other Important Stakeholders Place in Us.
ORI’s Lodestar: Strategic Governance
on Behalf of All Important Stakeholders
Putting It All Together For The Long Run
Old
Republic’s
Lodestar
Our
Customers
Our
Community
Our Capital
Providers
Our
People
Our Community:
The Public Interest
We’re an insurance business vested
with the public interest. All is done
right, within the law, and with integrity.
Our Customers:
Policyholders & Buyers
of Services
Good things happen when
customers’ legitimate needs
are fulfilled by our people.
Our People: Intellectual
Capital Providers
Our people’s intellectual
talent, know-how, and
honorable work put
capital to efficient use.
Our Capital Providers:
Shareholders & Debt Holders
Capital is the lifeblood of a
financial institution. It is the source
and continuity of the enterprise.
Our MISSION is to Provide Quality Insurance Security and Related Services to
Businesses, Individuals, and Public Institutions and Be a Dependable Long-Term Steward
of the Trust that Policyholders and Other Important Stakeholders Place in Us.
ORI’s Lodestar: Strategic Governance
on Behalf of All Important Stakeholders
Putting It All Together For The Long Run
Old
Republic’s
Lodestar
Our
Customers
Our
Community
Our Capital
Providers
Our
People
OLD REPUBLIC INTERNATIONAL CORPORATION
11
2022 ANNUAL REPORT LETTER | 2022 ANNUAL REVIEW
OLD REPUBLIC’S CULTURE, OPERATING PHILOSOPHY, AND INSTITUTIONAL MEMORY:
OLD REPUBLIC INTERNATIONAL CORPORATION
It starts with “we” –
we have each other’s back
We are efficient –
we optimize better and faster
We are humble –
but we are confident
We are patient and
thoughtful
– we don’t
panic or overreact
We are inclusive –
we listen to and respect
others’ points of view
We keep things simple –
we don’t reinvent the wheel or
fix something not broken
We drive out bureaucracy
when we see it
– our
organizational structures are flat
We act with integrity –
we are trustworthy and honest
We do things the right way –
we don’t follow bad competition
We leave politics to politicians –
we are collaborative and collegial
We are creative and
innovative
–
we think outside the box
We drive down decision
making and accountability
–
we are decentralized
We communicate in an open, clear,
consistent, concise manner
–
We are long-term focused –
we don’t let short-term or quarterly
results guide us
w
e tell it like it is
12
OLD REPUBLIC INTERNATIONAL CORPORATION
Total Returns Compared to Selected S&P Indices’ Returns
S&P P&C
S&P 500 Insurance
Old Republic International Corporation
(1)
Index
(2)
Index
(2)
Annual Book Value Market Value
Year End Year End Cash Annual Annual Annual Annual
Book Market Dividend Compound Compound Compound Compound
Year Value Price Declared Total Return(*) Total Return(**) Total Return Total Return
1968 $ 0.280 $ 0.472 $ 0.007 18.2% 41.8% 11.0%
1969 0.312 0.336 0.010 15.1% -26.6% -8.4%
1970 0.360 0.528 0.012 19.2% 60.7% 3.9%
1971 0.472 0.840 0.014 34.9% 61.7% 14.3%
1972 0.480 1.240 0.016 5.1% 49.5% 19.0%
1973 0.472 0.456 0.018 2.2% -61.7% -14.7%
1974 0.376 0.408 0.020 -16.1% -6.1% -26.5%
1975 0.288 0.440 0.020 -18.1% 12.7% 37.2%
1976 0.560 0.624 0.011 98.3% 44.4% 23.9%
1977 0.792 0.792 0.022 45.3% 30.4% -7.2%
1978 0.976 0.976 0.033 27.4% 27.4% 6.6%
1979 1.080 1.112 0.052 16.0% 19.3% 18.6%
1980 1.224 0.888 0.054 18.3% -15.3% 32.5%
1981 1.392 1.144 0.054 18.1% 34.9% -4.9%
1982 1.648 1.456 0.056 22.4% 32.2% 21.6%
10 Year Annual Compound Total Return 17.7% 5.7% 6.7%
1983 1.888 2.353 0.058 18.1% 65.6% 22.6%
1984 2.208 2.039 0.059 20.1% -11.2% 6.3%
1985 2.304 3.014 0.062 7.1% 51.4% 31.7%
1986 2.528 2.316 0.065 12.5% -21.0% 18.7%
1987 2.952 1.861 0.068 19.5% -16.7% 5.3%
1988 3.152 2.345 0.071 9.2% 29.8% 16.6%
1989 3.544 2.604 0.076 14.8% 14.3% 31.7%
1990 3.920 2.465 0.081 12.9% -2.2% -3.2% -2.3%
1991 4.456 4.207 0.086 15.9% 74.2% 30.5% 25.3%
1992 5.072 5.896 0.094 15.9% 42.4% 7.6% 17.2%
10 Year Annual Compound Total Return 14.5% 18.1% 16.2%
1993 5.744 5.363 0.102 15.3% -7.3% 10.1% -1.8%
1994 6.112 5.037 0.111 8.3% -4.0% 1.3% 4.8%
1995 7.248 8.415 0.121 20.6% 70.1% 37.6% 35.4%
1996 7.76 8 9. 511 0.148 9.2% 15.1% 23.0% 21.5%
1997 8.312 13.222 0.178 9.3% 41.2% 33.4% 45.5%
1998 9.216 12.000 0.206 13.4% -7.8% 28.6% -6.6%
1999 9.590 7.267 0.262 6.9% -37.5% 21.0% -25.5%
2000 11.000 17.066 0.294 17.8% 142.1% -9.1% 55.9%
2001 12.480 14.938 0.314 16.3% -10.6% -11.9% -8.1%
2002 13.960 14.934 0.336 14.6% 2.0% -22.1% -11.0%
10 Year Annual Compound Total Return 13.1% 12.1% 9.3% 8.1%
2003 15.650 20.288 0.890*** 18.5% 42.4% 28.7% 26.4%
2004 16.940 20.240 0.403 10.8% 1.9% 10.9% 10.4%
2005 17.5 30 21.008 1.312*** 11.2% 10.5% 4.9% 15.1%
2006 18.910 23.280 0.590 11.2% 13.9% 15.8% 12.8%
2007 19.710 15.410 0.630 7.6% -31.5% 5.6% -14.0%
2008 15.910 11.920 0.670 -15.9% -18.0% -37.0% -29.4%
2009 16.490 10.040 0.680 7.9% -10.1% 26.5% 12.4%
2010 16.160 13.630 0.690 2.2% 43.4% 15.1% 8.9%
2011 14.760 8.920 0.700 -4.3% -27.2% 2.1% -0.3%
2012 14.030 10.650 0.710 -0.1% 23.4% 16.0% 20.1%
10 Year Annual Compound Total Return 4.5% 1.7% 7.1% 4.9%
2013 14.640 17.270 0.720 9.5% 70.7% 32.4% 38.3%
2014 15.150 14.630 0.730 8.5% -11.2% 13.7% 15.7%
2015 14.980 18.630 0.740 3.8% 33.4% 1.4% 9.5%
2016 17.160 19.000 0.750 19.6% 6.2% 11.9% 15.7%
2017 17.720 21.380 1.760*** 13.5% 16.9% 21.8% 22.4%
2018 17.230 20.570 0.780 1.6% 4.8% -4.4% -4.7%
2019 19.980 22.370 1.800*** 26.4% 17.8% 31.5% 25.9%
2020 20.750 19.710 1.840*** 13.1% -7.7% 18.4% 6.3%
2021 22.760 24.580 2.380*** 21.2% 45.2% 28.7% 17.5%
2022 $21.050 $24.150 $1.920*** 0.9% 6.7% -18.1% 18.9%
10 Year Annual Compound Total Return 11.5% 16.0% 12.5% 16.0%
55 Year Annual Compound Total Return 12.7% 12.4% 10.1% 10.0%
Sources: (1) Old Republic Database; (2) Standard & Poor’s Indices from S&P Global Market Intelligence LLC. Data for years 1989 and prior is not available for the S&P
P&C Insurance Index.
Notes: (*) Calculated as the sum of the annual change in book value per share, plus cash dividends. (**) Calculated as the sum of the annual change in market value
per share, assuming cash dividends are reinvested on a pretax basis in shares when paid. (***) Includes special cash dividends declared of $1.000, $1.500,
$1.000, $1.000, $1.000, $0.800, and $0.534 per share in 2022, 2021, 2020, 2019, 2017, 2005, and 2003, respectively.
13
GENERAL INSURANCE GROUP | 2022 ANNUAL REVIEW
GENERAL INSURANCE GROUP
Old Republic General Insurance
Group (ORGIG) serves customers in
the U.S. and Canada through a
network of 95 offices in 65 cities.
Each ORGIG underwriting subsidiary specializes in a
property/casualty market niche, offering customized risk
management and insurance solutions. Within our industry
and product specializations, we provide 1) alternative risk
financing solutions (captives, large deductibles, and retro
programs) for large corporations, affinity groups, and
public institutions with complex risks that choose to
retain a significant level of their own risk; 2) traditional risk
transfer and related services for mid-sized companies;
3) specialty insurance products for small companies on
an admitted and non-admitted basis; and 4) home
warranty, auto warranty, and travel insurance products
for individuals. Our brand reflects a tradition of delivering
on promises of financial indemnity and service. This
earned us a reputation for reliability and stability through
insurance market cycles, giving our underwriting
subsidiaries a durable competitive advantage.
60
70
80
90
100
110
120
212013 14 15 16
17 18
19
Old Republic General Insurance Group
Insurance Industry
PERCENT
G3
22
60
70
80
90
100
110
120
Combined Ratio Trends
$ IN MILLIONS
Pretax Income
Net Investment Income
Income (Loss)
21
G2
Underwriting/Service
-100
0
100
200
300
400
500
600
700
2013 14 15 16 17 18 19 22
Sources of Pretax Income Trends
The Group’s underwriting results have outperformed the industry
average in 8 of the past 10 years and 21 of the past 25 years.
14
($ in Millions) 2022 2021 2020 2019 2018
Financial Cash, Fixed Income Securities $ 9,973.1 $ 9,553.4 $ 9,495.9 $ 8,888.5 $ 8,293.6
Position Equity Securities 2,411.4 3,257.3 2,690.4 2,646.7 2,133.0
Other Invested Assets 114.0 100.1 99.8 99.8 107.1
Reinsurance Recoverable 5,574.9 4,928.6 4,345.8 3,804.7 3,488.1
Sundry Assets 3,154.4 2,821.3 2,594.1 2,430.2 2,389.4
$ 21,227.9 $ 20,660.9 $ 19,226.1 $ 17,870.0 $ 16,411.4
Loss Reserves $ 11,521.4 $ 10,709.0 $ 9,974.9 $ 9,267.0 $ 8,756.8
Unearned Premiums 2 ,787.7 2,559.2 2,396.7 2,223.5 2,102.3
Other Liabilities 3,341.8 3,272.9 3,022.5 2,744.3 2,527.5
Equity 3,576.9 4,119.8 3,832.2 3,635.1 3,024.6
$ 21,227.9 $ 20,660.9 $ 19,226.1 $ 17,870.0 $ 16,411.4
Operating Net Premiums Written $ 3,978.2 $ 3,680.9 $ 3,431.3 $ 3,469.0 $ 3,380.4
Results
Net Premiums Earned $ 3,808.6 $ 3,555.5 $ 3,394.2 $ 3,432.4 $ 3,277.1
Net Investment Income 358.0 342.4 352.2 356.4 341.0
Other Income 148.9 144.5 130.3 131.9 121.3
4,315.6 4,042.5 3,876.8 3,920.8 3,739.4
Loss and Loss Adjustment Expenses 2,352.0 2,280.3 2,353.0 2,437.2 2,346.0
Policyholders’ Dividends 12.5 22.7 18.9 27.3 19.8
Sales and General Expenses 1,192.0 1,085.4 1,000.7 1,014.7 941.3
Interest and Other Costs 69.1 64.2 64.2 71.1 68.3
3,625.8 3,452.8 3,436.9 3,550.5 3,375.5
Pretax Operating Income $ 689.8 $ 589.6 $ 439.8 $ 370.2 $ 363.9
Operating Cash Flow $ 898.9 $ 771.8 $ 755.3 $ 654.2 $ 654.7
Underwriting All Coverages Combined:
Statistics Paid Loss Ratio 55.5% 56.8% 60.3% 63.3% 62.6%
Incurred Loss Ratio 61.8% 64.2% 69.3% 71.0% 71.6%
Dividend Ratio .3% .6% .6% .8% .6%
Expense Ratio 27.4% 26.5% 25.6% 25.7% 25.0%
Combined Ratio 89.5% 91.3% 95.5% 97.5% 97.2%
Liability Coverages:
Earned Premiums $ 2,351.3 $ 2,203.8 $ 2,140.2 $ 2,217.5 $ 2,120.9
Loss Ratio 63.3% 68.0% 73.9% 75.5% 75.9%
Dividend Ratio .3% .7% .6% .9% .6%
Other Coverages:
Earned Premiums $ 1,457.3 $ 1,347.6 $ 1,260.3 $ 1,217.2 $ 1,154.8
Loss Ratio 59.3% 57.3% 61.1% 63.0% 63.5%
Dividend Ratio .3% .1% .1% .1% .2%
Composition of Underwriting/Service Income $ 400.9 $ 311.4 $ 151.8 $ 84.9 $ 91.2
Pretax Operating Net Investment Income 358.0 342.4 352.2 356.4 341.0
Income Interest and Other Costs (69.1) (64.2) (64.3) (71.1) (68.3)
Pretax Operating Income $ 689.8 $ 589.6 $ 439.7 $ 370.2 $ 363.9
Key Ratios Net Premiums Written to Equity 1.1x .9x .9x 1.0x 1.1x
Net Loss Reserves to Equity 191% 160% 165% 166% 189%
Cash and Invested Assets to Liabilities 102% 110% 111% 111% 106%
The above summary has been prepared on the basis of generally accepted accounting principles and excludes investment gains and losses.
Old Republic General Insurance Group, Inc.
CONSOLIDATED PROPERTY/CASUALTY INSURANCE BUSINESS
2022 ANNUAL REVIEW | GENERAL INSURANCE GROUP
15
ORGIG delivered another record performance in
2022. It increased net premiums and fees written
by 8% to $4.2 billion, producing $690 million
of pretax operating income. Premium growth
stemmed from healthy customer retention, organic
new business success, and premium rate increases.
Higher profits came from an improved underlying
combined ratio, together with favorable loss reserve
development. Underwriting excellence initiatives
in recent years also positioned our portfolio for
profitable growth in 2023 and beyond.
Our product diversification efforts continued in 2022. Commercial Auto and Workers’ Compensation
comprised 61% of net premiums written in 2022, down from 67% in 2017. We remain bullish on our ability to
expand core lines of coverage while growing at a faster rate in other lines.
While continuing to invest in current operations, we also are launching new ones. Each of our 14
underwriting subsidiaries offers differentiated solutions within specialty product and distribution niches. The
rest of this section outlines each underwriting subsidiary’s contribution to ORGIG’s financial performance,
strength, and growth prospects.
BITCO Insurance Companies (BITCO) has protected industries at the core of the American economy
for over 100 years. We provide specialized insurance programs and related services to these sectors: 1)
commercial construction, 2) forest products, 3) onshore oil and gas, 4) light manufacturing, 5) wholesale/
distribution, and 6) public entities. In addition to traditional risk transfer products, we offer loss sensitive
programs, large deductibles, and construction wrap-up programs. A foundation of our value proposition is to
place our underwriting, claims, risk control, and premium audit teams near the customers we serve.
We also partner with a select group of specialized agents and brokers that share our commitment to
the industries we protect and serve. In 2022, BITCO offered all of its programs coast-to-coast, providing
solutions for middle market, large, and complex customers.
Great West Casualty Company (GWCC) has built an organization with the goal of becoming the premier
provider of insurance products and services for truckers for 65 years. This led it to become one of America’s
largest insurers of trucking companies. We offer comprehensive coverage packages designed to meet the needs
of motor carriers of all sizes.
Our long-term stability is reflected in the deep relationships with the motor carriers we insure. They stay with
us because we understand their industry and how insurance can support it. Trucking clients also appreciate
the expertise of our long-time agency partners, whose commitment to The Difference is Service
®
means
they also deliver on what we promise, every day.
Our long history of profitable growth is enhanced through strategic use of data and technology, along with
segmenting our business. This allows us to be more responsive and to allocate resources where they have
the greatest impact. Continued focus on risk selection and appropriate pricing allowed GWCC to increase
written premiums in 2022 while producing solid profit margins.
GENERAL INSURANCE GROUP | 2022 ANNUAL REVIEW
UNITED STATES
Northeast
9.9% 11.3% 10.9%
Mid-Atlantic 10.0 6.7 6.6
Southeast 15.0 17.0 18.0
Southwest 13.3 13.1 12.9
East North Central 13.8 11.8 11.7
West North Central 13.2 11.3 11.2
Mountain 6.6 7.0 7.2
Western 16.2 18.3 17.8
FOREIGN (Principally Canada) 2.0 3.5 3.7
100.0% 100.0% 100.0%
Geographic Distribution of Direct Premiums Written
2013 2021 2022
16
Old Republic Aerospace, Inc. (ORAE) specializes in insurance products for the North American
aviation industry. We focus on 1) corporate flight departments, 2) public entities, 3) airlines, 4) commercial
operators, and 5) individual owners and operators of light aircraft. Our offering also includes workers’
compensation and aviation products liability coverages.
Integrated claims and risk control services support our dynamic and disciplined approach to underwriting.
Over 30 years of aviation experience gives us the foundation to deliver unique solutions. In 2022, new
products and an expanded geographic footprint brought record new business and a higher market share.
Investments in technology and talent development will allow us to continue to deliver best in class service.
Old Republic Excess & Surplus (ORES) offers non-admitted products distributed through wholesalers
with experienced, service-oriented people and an advanced technology platform. Our teams focus on
out-of-the-box solutions for hard to place small to medium-sized businesses. Throughout 2022, the ORES
team set up the operational infrastructure for a successful launch in early 2023.
Old Republic Home Protection Company (ORHP) offers home service contracts for major systems and
appliances to home sellers and buyers. Our brand is built on almost 50 years of providing comprehensive
coverage, with competent and caring service, at competitive rates. We primarily distribute our products
through a nationwide network of real estate agents and brokers, and serve customers through our
Independent Service Provider Network.
In 2022, increased claim frequency, inflation, and a decline in existing home sales negatively affected
our growth and profitability. Looking ahead, ORHP is well positioned for new business success and has
several new initiatives to improve our renewals of existing contracts. Expected improvements in supply
management, productivity, and market share should help curtail claim trends and generate growth.
Old Republic Insurance Company of Canada (ORICAN) is a federally licensed property/casualty
insurance company based in Ontario. Our principal business concentrates on two areas: underwriting long-
haul trucking and travel insurance programs. We also provide insurance and related services to customers
with cross-border operations in concert with our U.S. affiliates: Great West Casualty Company, Old Republic
Aerospace, Old Republic Insured Automotive Services, and Old Republic Risk Management.
In 2022, the long-haul trucking unit continued to deliver favorable underwriting performance. This resulted
from consistent risk selection and a focused distribution strategy. In addition, our travel insurance premiums
were fueled by a return of international visitors to Canada.
2022 ANNUAL REVIEW | GENERAL INSURANCE GROUP
17
Old Republic Inland Marine (ORIM) offers specialty products and services to a wide range of inland marine
customers. ORIM’s team features industry-leading underwriters with the experience, expertise, and authority
to provide thoughtful and timely underwriting decisions. Our focus is on providing insured and broker partners
with a seamless and efficient user experience: from submission through the full policy lifecycle.
In early 2022, we successfully launched ORIM with a select group of distribution partners. Capitalizing on the
momentum from its proprietary builders’ risk product, ORIM will continue to expand its product offering in 2023.
Old Republic Insured Automotive Services, Inc. (ORIAS) specializes in automobile service contracts,
mechanical breakdown insurance, and other automobile-related products for new and used vehicles.
ORIAS enjoys decades-long partnerships with some of the nation’s largest automotive, financial
intermediary, and related service companies. We provide insured automotive products for more than
5,000 automobile dealers.
In 2022, the automobile market began emerging from pandemic-related supply chain challenges. The
improving market conditions, along with our reputation for providing superior customer service, has us
positioned well in the near term.
Old Republic Professional Liability, Inc. (ORPRO) is a premier underwriter of management and
professional liability insurance. ORPRO writes 1) directors and officers liability, 2) employment practices
liability, 3) fiduciary liability, 4) financial institutions professional liability, 5) transactional liability, 6) lawyers’
professional liability, and 7) miscellaneous professional liability. Our customers are public, private, and
nonprofit organizations and law firms.
ORPRO has served many industries for almost 40 years, and it is a market leader in technology,
biotechnology, and life sciences. Our seasoned and respected underwriting professionals provide bespoke,
flexible, and sophisticated specialty insurance solutions through a network of specialist brokers. Thoughtful
underwriting and high service standards, coupled with effective resolution of complex claims, underlie our
many years of underwriting profitability.
Market conditions for some of ORPRO’s products changed in 2022, as new companies drove down pricing
after successive years of large premium rate increases. Our commitment to long-term profitability and core
underwriting principles helped us navigate this changing market. We continue to invest in talent, data, and
innovation to meet our customers’ evolving needs.
GENERAL INSURANCE GROUP | 2022 ANNUAL REVIEW
18
Old Republic Residual Market Services, Inc. (ORMARKS) serves the workers’ compensation residual
markets. As a national servicing carrier, we provide policy management and claim services, on a fee basis,
to assigned risk policyholders throughout the U.S.
Our management team averages 20 years of experience with national servicing carriers. This gives us deep
knowledge of and long relationships with critically important state regulators, rating bureaus, and product
administrators.
Very few insurance companies operate as a servicing carrier to the workers’ compensation residual
markets. This limited competition, the high barrier to entry, and our extensive expertise position ORMARKS
for growth in the next several years.
Old Republic Risk Management, Inc. (ORRM) serves the casualty needs of large corporate and group
clients in many industries that are core to the North American economy. We do this through our unbundled
claims and risk control business model. We pioneered the alternative market approach to insurance risk
management. ORRM has worked with many Fortune 500 companies and other large publicly held and private
enterprises since the early 1950s. This gives us longstanding and industry-leading expertise in providing
innovative solutions and services for sizable insurance buyers. These offerings include the use of large
deductibles, self-insurance, and captive mechanisms.
Our 2022 results reflected 98% account retention, organic growth, and the ability to attract new customers.
The Old Republic brand is well known in this specialized market. Our competitive advantages include best-in-
class service, product stability, responsiveness, and innovative flexibility to meet customer needs. We remain in
a good position to deliver profitable growth by capitalizing on the strength of our core products and services.
Old Republic Specialty Insurance Underwriters, Inc. (ORSIU) focuses on two segments in the
specialty insurance marketplace. The first provides alternative risk insurance and reinsurance risk transfer
products for public entities and nonprofits. The second offers specialty insurance programs, managed by
independent program administrators, using an unbundled service model for claims and risk control.
Formed in 2015, our dedicated underwriting team averages more than 20 years of insurance and
reinsurance experience. This includes most types of property and liability coverages. We collaborate with
specialized producers that are committed to providing high levels of service and products tailored to
customers’ needs.
2022 ANNUAL REVIEW | GENERAL INSURANCE GROUP
19
In 2022, our profitable results reflected strong client retention, pricing integrity, premium rate increases,
and new customers. In the year ahead, we expect these trends to continue to drive growth in our income,
as we remain focused on underwriting multi-line business with partners that have a deep knowledge in their
specialty niches.
Old Republic Surety Company (ORSC) underwrites contract, fidelity and commercial bonds. These are
serviced through a network of more than 4,500 independent insurance agencies. The solutions we provide
include 1) bid bonds; 2) performance and payment bonds; and 3) maintenance bonds for large, middle
market and smaller growing contractors. We consistently offer superior service and creative underwriting
options in all 50 states.
ORSC partners with hard-working contractors and agents, supporting them with innovative and sometimes
out-of-the-ordinary surety solutions. Our partnerships endure because we serve as a reliable surety advisor
that is committed to helping contractors achieve their goals. While surety bonds are a necessity, we are
determined to deliver more. We are our partners’ ultimate support team, sharing our expertise to analyze
risk and recommend solutions that benefit all parties.
In 2022, we continued to expand our geographic footprint and product offering. This represented the
fifth consecutive year of significant, market-leading growth while maintaining our underwriting margin. We
anticipate being able to deliver profitable growth well into the future.
PMA Companies, Inc. (PMA) is a premier provider of workers’ compensation and casualty insurance,
claims administration, and risk management products and services. Our focus is on large and mid-size
organizations. Originally established in 1915 as an insurance company, we subsequently launched PMA
Management Corp., a third-party administrator (TPA), over 30 years ago. This helped us further capitalize
on our claims and risk management expertise in the large account marketplace. We recently expanded
geographically, adding staff and capabilities in the southwestern and western U.S.
PMA partners with customers to protect their employees and reduce their total cost of risk. About 80% of
2022 premium volume came from loss-sensitive policies and captive insurance arrangements, typically with
clients that require sophisticated claims and risk management services. In addition, we provide tailored
insurance solutions for traditional middle market businesses. PMA specializes in several industries, including
healthcare, manufacturing, wholesale/retail trade, service, and education.
GENERAL INSURANCE GROUP | 2022 ANNUAL REVIEW
20
In 2022, PMA's comprehensive service model and industry specialization led to growth across the insurance
and TPA businesses. Our fee-for-service business also continued to expand. We follow a holistic approach
that integrates pre-loss, time-of-loss, and post-loss strategies and services. Many of our fee-for-service and
insurance clients have gained national acclaim for the results they achieved in partnership with us. PMA’s
long-term strategy will deliver stable underwriting and fee-for-service profitability, measured growth, and
strong customer retention across emerging national capabilities in 2023 and beyond.
LOOKING AHEAD
In 2023, ORGIG will continue to diversify our line of coverage mix, adding new specialty products and
services. For all of our underwriting subsidiaries, everything begins and ends with serving customers. This
includes carefully managing each business to ensure we meet our long-term promises of financial indemnity
to policyholders and their beneficiaries. Our specialty companies will continue to remain sharply focused
on underwriting profitability to ensure we continue our decades-long, industry-leading underwriting record.
This combination of service and profitability allows us to serve the long-term interests of policyholders in
harmony with those of our shareholders and other stakeholders.
2022 ANNUAL REVIEW | GENERAL INSURANCE GROUP
21
TITLE INSURANCE GROUP | 2022 ANNUAL REVIEW
TITLE INSURANCE GROUP
Old Republic Title Insurance Group
(ORTIG) has a national network of
more than 285 branch and subsidiary
offices, with roughly 8,000
independent title agents. ORTIG serves mortgage lenders
and the real estate community. We offer a comprehensive
suite of title insurance and related products and services to
individuals, businesses and government entities. Old
Republic National Title Insurance Company has provided
coverage for over 110 years, while American Guaranty Title
Insurance Company has been in business for more than
130 years.
Mortgage interest rates increased in 2022, reducing
mortgage originations, which led to a decline in revenues.
However, higher commercial transaction activity led to a
corresponding increase in those revenues. We remain
committed to our independent title agency network,
which accounted for over 80% of our premium and fee
revenues in 2022.
$ IN MILLIONS
Pretax Income
Net Investment Income
21
T5
Underwriting/Service Income
0
100
200
300
400
500
600
2013 14 15 16 17 18 19 22
Sources of Pretax Income Trends
60
70
80
90
100
110
120
212013 14 15 16
17 18
19
Old Republic Title Insurance Group
PERCENT
T6
22
Combined Ratio Trends
22
Old Republic Title Insurance Group, Inc.
TITLE INSURANCE AND RELATED REAL ESTATE TRANSFER SERVICES
($ in Millions) 2022 2021 2020 2019 2018
Financial Cash, Fixed Income Securities $ 1,238.3 $ 1,280.3 $ 1,091.0 $ 931.5 $ 843.9
Position Equity Securities 375.9 507.4 401.0 380.5 316.8
Other Invested Assets 14.3 11.0 9.4 9.6 9.3
Title Plants and Records 42.1 42.1 42.3 42.4 42.5
Property and Equipment 181.7 171.9 165.0 156.3 72.9
Sundry Assets 225.0 221.2 211.9 174.5 166.6
$ 2,077.6 $2,234.2 $ 1,920.9 $ 1,695.0 $ 1,452.2
Loss Reserves $ 612.8 $ 594.2 $ 556.1 $ 530.9 $ 533.4
Other Liabilities 351.9 440.0 390.3 342.9 245.1
Equity 1,112.8 1,199.9 974.3 821.1 673.6
$ 2,077.6 $2,234.2 $ 1,920.9 $1 ,695.0 $ 1,452.2
Operating Net Premiums Earned $ 3, 50 0.6 $ 3,960.5 $ 2,894.4 $ 2,414.8 $ 2,283.3
Results Service Fees and Other Income 334.1 444.9 392.9 321.9 290.2
Net Investment Income 47.9 43.8 42.0 41.4 38.8
3,882.7 4,449.3 3,329.3 2,778.1 2,612.4
Loss and Loss Adjustment Expenses 89.1 112.9 75.3 67.4 48.3
Sales and General Expenses 3,484.2 3,818.4 2,906.1 2,475.7 2,340.1
Interest and Other Costs .4 2.1 3.8 4.1 4.6
3,573.8 3,933.5 2,985.3 2,547.3 2,393.1
Pretax Operating Income $ 308.8 $ 515.7 $ 344.0 $ 230.8 $ 219.3
Operating Cash Flow $ 253.5 $ 486.7 $ 362.2 $ 214.9 $ 172.9
Underwriting Paid Loss Ratio 1.8% 1.7% 1.5% 2.6% 2.9%
Statistics (a)
Incurred Loss Ratio 2.3% 2.6% 2.3% 2.5% 1.9%
Expense Ratio 90.9% 86.7% 88.4% 90.5% 90.9%
Combined Ratio 93.2% 89.3% 90.7% 93.0% 92.8%
Composition Underwriting/Service Income $ 261.3 $ 474.0 $ 305.8 $ 193.5 $ 185.1
of Pretax Net Investment Income 47.9 43.8 42.0 41.4 38.8
Operating Interest and Other Costs (.4) (2.1) (3.8) (4.1) (4.6)
Income
Pretax Operating Income $ 308.8 $ 515.7 $ 344.0 $ 230.8 $ 219.3
Key Ratios Premiums and Fees to Equity 3.4x 3.7x 3.4x 3.3x 3.8x
Loss Reserves to Equity 55% 50% 57% 65% 79%
Reserves to Paid Losses (b) 9.2x 9.3x 9.2x 8.1x 8.3x
Cash and Invested Assets to Liabilities 169% 174% 159% 151% 150%
The above summary has been prepared on the basis of generally accepted accounting principles and excludes investment gains and losses.
(a) Loss and expense ratios are measured against combined premiums and fees.
(b) Represents average paid losses for the most recent five years divided into loss reserves at the end of each five-year period.
2022 ANNUAL REVIEW | TITLE INSURANCE GROUP
23
ORTIG’s capital base, which supports our
industry-leading financial position, continues to
benefit from profitable operating results. Our
claim reserves-to-average claim payments ratio
remained among the highest for large national
title insurers. Since 1992, no other title
insurance underwriter has had higher overall
financial strength ratings, as reported by
independent ratings agencies. This recognizes
our competitive advantages: 1) strong operating
performance, 2) sound capital management
practices, 3) conservative reserving, 4) quality
underwriting standards, and 5) a commitment to
providing technology-based solutions to our
independent title agents and customers.
ORTIG’s vision is to blend our history of solid
business practices and expertise with cutting-
edge technology. To achieve this, we are
increasing the use of successful automation
technologies, such as robotic process
automation (RPA), while incorporating artificial
intelligence (AI) technologies. We continue to
embrace innovation to provide two key benefits:
1) to deliver a high level of satisfaction and
confidence for customers, and 2) to enhance
our connection with independent title agents and
other stakeholders in real estate transactions.
LOOKING AHEAD
In 2023, ORTIG will continue to face headwinds challenged by higher mortgage interest rates and a limited
supply of housing. However, underlying strength in employment and wages, along with stabilizing housing
prices, may provide some optimism for purchase activity.
TITLE INSURANCE GROUP | 2022 ANNUAL REVIEW
2013 2021 2022
UNITED STATES
Northeast 17.0% 13.8% 13.7%
Mid-Atlantic 9.8 10.6 9.1
Southeast 26.2 29.0 32.3
Southwest 8.0 9.3 11.1
East North Central 8.6 8.2 8.6
West North Central 7.5 6.0 5.3
Mountain 9.1 12.2 11.3
Western 13.8 10.9 8.6
100.0% 100.0% 100.0%
Geographic Distribution of Direct Premiums Written
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
$ IN MILLIONS
$ IN BILLIONS
Refinance Originations
Purchase Originations
Net Premiums & Fees
T4
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
60.2%
39.8%
46.2%
48.7%
35.0%
27.9%
45.6%
63.9%
58.8%
29.7%
41.2%
39.8%
60.2%
53.8%
51.3%
65.0%
72.1%
54.4%
36.1%
20 2113 14 15 16 17 18 19 22
70.3%
1-4 Family Mortgage Origination Trends
Net Premiums & Fees Trends
24
2022 ANNUAL REVIEW | REPUBLIC FINANCIAL INDEMNITY GROUP / CORPORATE & OTHER OPERATIONS
This segment includes Old Republic Life Insurance Company, and Reliable Life Insurance Company in Canada.
Our ongoing life and accident business focuses on occupational accident insurance for independent motor
carriers in the U.S. Both insurers also manage a number of long discontinued products with a naturally declining
premium base, and generally post largely immaterial operating contributions to ORI’s consolidated results.
In addition, this segment also includes
ORI - the parent holding company
and several internal corporate services
subsidiaries that provide enterprise-
wide services, such as investment
management, risk management, and
legal guidance.
RFIG RUN-OFF
Republic Financial Indemnity Group (RFIG) is now entirely represented by Republic Mortgage Insurance Company
(RMIC). Polices issued by RMIC cover losses from defaults on residential mortgages. These policies typically insure
purchase or refinance loans when the borrower has financed more than 80% of the property’s value.
In 2023, RFIG will
continue to see a natural
decline in top-line premium
and bottom-line profit.
In the near term, RMIC
will continue returning
excess capital to the ORI
parent holding company.
Future prospects for the
business include selling
the enterprise or running-
off the business through
extinction.
(a) Results for the CCI coverage are expected to be immaterial in the remaining run-off periods. Effective July 1, 2019,
these results have been reclassified to General Insurance for all future periods.
($ in Millions) 2022 2021 2020 2019 2018
Net Premiums Earned $ 9.6 $11.0 $12.0 $13.4 $14.6
Net Investment Income 46.8 36.5 29.4 35.1 31.7
Other Income – – – – (.1)
56.5 47.5 41.4 48.5 46.3
Loss and Loss Adjustment Expenses 4.0 6.5 7.1 8.8 16.7
General Operating Expenses 27.7 15.1 (2.4) (15.2) (10.7)
31.8 21.7 4.7 (6.3) 5.9
Pretax Operating Income $24.6 $25.7 $36.7 $54.8 $40.4
SUMMARY INCOME STATEMENT
($ in Millions) 2022 2021 2020 2019 2018
Mortgage Insurance (MI)
Net Premiums Earned $ 23.2 $ 32.6 $ 45.1 $ 58.8 $ 74.4
Net Investment Income 6.7 11.4 15.2 17.3 19.2
Loss and Loss Adjustment Expenses (17.5) (1.7) 36.9 32.3 32.1
Pretax Operating Income $ 35.2 $ 32.8 $ 9.8 $ 29.2 $ 46.7
Loss Ratio (75.5)% (5.3)% 81.7% 55.0% 43.2%
Expense Ratio 53.0% 39.9% 30.2% 24.8% 20.0%
Combined Ratio (22.5)% 34.6% 111.9% 79.8% 63.2%
Consumer Credit Indemnity (CCI) Division (a)
Pretax Operating Income $ – $ – $ – $ 1.0 $ 3.2
Total MI and CCI Run-Off Business (a)
Pretax Operating Income $ 35.2 $ 32.8 $ 9.8 $ 30.3 $ 49.9
OPERATING RESULTS
CORPORATE & OTHER OPERATIONS
REPUBLIC FINANCIAL INDEMNITY GROUP
25
INVESTMENT MANAGEMENT | 2022 ANNUAL REVIEW
25
INVESTMENT MANAGEMENT
For decades, we have followed a conservative and disciplined investment strategy.
A TIME-TESTED, LONG-TERM STRATEGY
Our long-term investment strategy helped us consistently meet the goals for investment income while
managing investment risk. Our portfolio features diverse, liquid, and high-quality fixed income and equity
securities. We also match the maturities of our fixed income assets with the expected liabilities for claim
payment obligations to policyholders and their beneficiaries. This combination protects our capital base. It
also gives our subsidiaries a solid foundation for meeting their long-term obligations to policyholders and
their beneficiaries.
We actively manage risk in our portfolio and avoid complexity. That approach has been especially helpful
during challenging market conditions, which can test the integrity of a company’s capital base and its ability
to meet obligations as they come due. Our approach enables us to withstand the difficulties of volatile
financial markets. While changing conditions in domestic and global financial markets occasionally require us
to finetune our investment strategy, we remain true to its basic tenets.
2022 INVESTMENT ACTIVITIES AND PORTFOLIO REVIEW
At year-end 2022, approximately 80% of our $15.8 billion fair-valued investment portfolio was allocated to
fixed income securities and short-term investments. The remaining 20% was invested in equity securities.
This compares to 68% and 32%, respectively, in 2021. The change came from a decision to reduce overall
investment risk by lowering the exposure to equity securities.
Net investment income was $460 million in 2022, up from $434 million in the preceding year. Dividend
income from equity securities decreased 16% to $133 million, reflecting the lower allocation to this area.
However, interest from fixed income securities rose 18% to $332 million, due to an increase in investment
yields and a higher invested balance. The pretax yield on average invested assets (at cost) grew to 3.07%,
compared to 3.02% a year ago.
Net realized gains from disposing of investments were $63.5 million in 2022 compared with $6.9 million a
year earlier. Net unrealized gains decreased to $683 million at year-end, compared with $1.77 billion at the
close of 2021 due primarily to higher interest rates.
25
26
INVESTMENT MANAGEMENT
Consolidated Investments
($ in Millions) 2022 2021 2020 2019 2018
Fixed Income Securities:
Taxable Bonds and Notes $10,876.9 $ 9,686.4 $ 9,433.2 $ 8,796.5 $ 8,182.8
Tax-Exempt Bonds and Notes 869.7 989.2 1,063.5 1,021.7 1,044.8
Short-Term Investments 860.8 565.7 749.6 484.3 354.9
12,6 07.6 11,241.4 11,246.4 10,302.6 9,582.6
Other Invested Assets:
Equity Securities 3,220.9 5,302.8 4,054.8 4,030.5 3,380.9
Sundry 31.2 32.0 28.8 26.0 31.0
Total Investments $15,859.9 $16,576.3 $15,330.1 $14,359.2 $12,994.6
Sources of Consolidated Investment Income
($ in Millions) 2022 2021 2020 2019 2018
Fixed Income Securities:
Taxable $ 296.2 $ 261.3 $ 269.9 $ 280.0 $ 278.4
Tax-Exempt 18.2 19.2 19.8 20.3 20.7
Short-Term Investments 17.9 .1 2.2 10.1 9.8
332.4 280.7 292.1 310.5 309.0
Other Investment Income:
Equity Securities Dividends 132.5 157.5 149.8 141.3 124.0
Sundry 4.3 2.1 3.5 5.8 4.9
136.8 159.6 153.4 147.1 129.0
Gross Investment Income 469.3 440.4 445.6 457.7 438.1
Less: Investment Expenses 9.7 6.1 6.6 6.9 6.2
Net Investment Income $ 459.5 $ 434.3 $ 438.9 $ 450.7 $ 431.8
Net Yield on Average Investments (At Market) 2.8% 2.7% 3.0% 3.3% 3.3%
Consolidated Fixed Income Securities Portfolio Statistics
General Title RFIG
Insurance Insurance Run-off Consolidated
December 31, 2022 Maturities in:
0-5 Years 57.7% 52.2% 99.1% 59.9%
6-10 Years 41.0 46.3 .9 38.8
11 or More Years 1.3 1.5 – 1.3
100.0% 100.0% 100.0% 100.0%
Average Quality Rating A A AAA A+
Average Life of Portfolio (Years):
December 31, 2022 4.4 4.8 1.9 4.3
December 31, 2021 4.4 5.0 1.7 4.4
December 31, 2020 4.3 4.6 2.0 4.3
December 31, 2019 4.2 4.0 1.8 4.1
December 31, 2018 4.6 4.7 2.8 4.5
2022 ANNUAL REVIEW | INVESTMENT MANAGEMENT
27
FIXED INCOME PORTFOLIO
One of our risk management goals is to protect the fixed income portfolio and limit the adverse effects of
interest rate volatility. We guard against falling interest rates by typically buying non-callable bonds. We also
limit our exposure to rising interest rates by buying bonds with a maturity typically no longer than 10 years.
We do not invest in high risk or illiquid asset classes
Our fixed income portfolio consists of U.S. and Canadian government obligations, and corporate bonds.
Fixed income purchases in 2022 were principally liquid, non-callable corporate bonds of various investment
grade issuers in several industry sectors. Maturities of bond purchases primarily ranged between five and
10 years. We made no new investments in tax-exempt municipal bonds in 2022, as the low corporate tax
rate made these unattractive on an after-tax basis versus other taxable fixed income alternatives.
Net unrealized capital losses were $590 million at year-end 2022 versus $237 million in net unrealized gains
in 2021, attributable to higher interest rates. Sector allocations remain consistent, with a slight increase
in corporate bonds relative to government, agency, and municipal issues. Credit quality remains A+ on
average, with investment-grade bonds representing 98.5% of the portfolio compared to 97.8% last year.
Duration (a measure of bond portfolio price sensitivity to changes in interest rates) has declined slightly to
3.89 years, which we believe will be advantageous in a rising rate environment.
Fixed income dispositions in 2022 totaled $3.07 billion, resulting in net pretax losses of $311 million. These
losses helped offset the gains on equity dispositions. Fixed income purchases for the year totaled $5.01
billion, at an average book yield of 4.37% (105 basis points higher than the year-end portfolio average), and
an average maturity of 6.28 years.
Utilities
18.5%18.8%18.7%18.7%17.1%
18.0%17.1%17.7%18.2%
Consumer Goods
IM2
201820192021
Other
2.2%2.2%2.1%1.9%
Energy
6.6%5.9%5.0%4.0%
Financial
Institutions
7.7%8.1%8.6%10.0%
U.S. & Canadian
Governments
19.2%19.9%20.3% 16.4%
2020
19.4%18.0%17.4%17.3%
Industrials
18.5%
18.3%
2022
1.7%
3.7%
14.8%
18.6%
States and
Municipalities
11.2%10.7%10.6%9.6%7.3%
Diversification of Fixed Income Portfolio
INVESTMENT MANAGEMENT | 2022 ANNUAL REVIEW
2021 20182019
IM3
20202022
All Other
5.7%4.3%2.8%
A
34.1% 31.5%32.6%33.0%
AA
10.0% 12.8%13.1%13.1%
BAA
32.3% 29.1%26.1%26.5%
AAA
22.1%
2.2%1.5%
31.9%
12.3%
28.5%
25.1% 20.9%23.9%24.6%
Quality of Fixed Income Portfolio
28
EQUITY PORTFOLIO
Our equity portfolio is focused on higher yielding blue chip and utility common stocks. These tend to deliver
annual dividend growth with lower volatility. The portfolio has zero or extremely limited exposure to illiquid
securities, such as limited partnerships, derivatives, hedge funds, or private equity investments.
Our equity portfolio exposure tolerances are guided by a variety of factors: 1) the adequacy of the capital
within each of our underwriting subsidiaries, 2) the stability of that capital under various subsidiaries’ stress
scenarios, and 3) our levels of liquidity. The level of this liquidity cushion may influence the amount of
equity securities that we hold in the portfolio at a particular time. Similarly, tax-planning opportunities may
influence the timing and magnitude of our purchase and sale decisions.
At year-end 2022, our equity portfolio had a market value of $3.2 billion. This balance reflected total
disposals for the year to $2.25 billion (versus purchases of $58 million). Full-year net realized gains were
$375 million, and the portfolio ended with an unrealized gain of $1.27 billion, versus $1.54 billion at the
close of 2021. Remaining equity holdings continue to be invested in higher yielding blue chip and utility
common stocks, which at the end of the year had a book yield of 5.13% and a market yield of 3.30%.
ECONOMIC LANDSCAPE AND OUTLOOK
In 2022, we saw rapidly accelerating inflation, higher interest rates led by the Federal Reserve Bank (FRB),
and significant interest rate volatility.
After peaking at 9.1% during 2022, the Consumer Price Index year-over-year growth rate ended the year
at 6.5%. The Real GDP annual growth rate was 2.1% and is expected to slow to 0.8% in 2023. The FRB,
as expected, raised interest rates by 75 basis points and 50 basis points, respectively, in November and
December. It has slowed the pace of rate increases in 2023, but the policy stance is to stay vigilant to fight
inflation. Treasury yield curves continued to flatten, and some spots became inverted or inverted further.
The three-month Treasury Bill ended 2022 at 4.34% versus .03% in 2021, while the two-year Treasury rose
369 basis points to 4.43%. Meanwhile, the 10-year Treasury rose 237 basis points to 3.88%. Corporate
bond yields reflected the higher interest rate environment. However, falling interest rate volatility allowed
corporate bond spreads to tighten at year-end.
Our key objectives for the investment portfolio are capital preservation/safety and investment income. The
current portfolio allocation stands at approximately 80% fixed income and 20% equities. Based on our view
that 1) yields will remain historically attractive and 2) stocks are currently fully valued, we expect to maintain
this allocation. In fixed income, we will stay focused on investment grade corporate bonds. We also will
avoid chasing yield at the expense of quality, given the potential for credit deterioration in the face of slower
economic growth. Purchases will continue to be concentrated in five- to 10-year taxable corporate bonds.
Within the equity portfolio, we will diligently analyze opportunities offering attractive yields and dividend
growth to add to the portfolio.
2022 ANNUAL REVIEW | INVESTMENT MANAGEMENT
29
CONTENTS
30 Capitalization and Financial Ratings
31 Ten-Year Financial Summary
32 Ten-Year Operating and Balance
Sheet Statistics
33 Common Share Statistics
CONSOLIDATED FINANCIAL STATEMENTS
34 Consolidated Balance Sheets
35
Consolidated Statements of Income
35 Consolidated Statements of
Comprehensive Income
36 Consolidated Statements of Preferred
Stock and Common Shareholders’ Equity
37
Consolidated Statements
of Cash Flows
38 Key Operating Subsidiaries
39 Board of Directors and
Senior Executive Groups
41
The
Most Recent Decade
43 Historical and
Forward Looking Statements
30
OLD REPUBLIC SECURITIES CURRENTLY
ISSUED AND OUTSTANDING
Nearly 297 million outstanding Old Republic common
shares could be traded as of year end 2022 on the
New York Stock Exchange (symbol: ORI). Holdings
include shares held by ORI’s intellectual capital
providers who - together and through the ORI 401(k)
Savings and Profit Sharing Plan and other benefit
plans, and the direct holdings of our senior officers
and Board members - represent 8.6% of outstanding
shares. For the group as a whole, these aggregate
holdings of over 25 million shares place them as
the fourth largest shareholder group. This follows
BlackRock, Inc., The Vanguard Group and State
Street Corporation.
Other securities issued and outstanding at December 31, 2022 included $400.0 million of 4.875% Senior
Notes due in 2024, $550.0 million of 3.875% Senior Notes due in 2026, and $650.0 million of 3.850%
Senior Notes due in 2051.
INDEPENDENT FINANCIAL RATINGS OF KEY POLICY-ISSUING
INSURANCE SUBSIDIARIES AND PARENT HOLDING COMPANY
In recognition of Old Republic’s stability and financial strength, its key insurance subsidiaries
are consistently assigned high financial condition or claims-paying ability ratings. The following
table shows the ratings assigned by three leading independent firms:
A.M. Standard
Best Moody’s & Poor’s
BITCO General Insurance Corporation A+ A2 A+
BITCO National Insurance Company A+ A2 A+
Great West Casualty Company A+ A2 A+
Old Republic General Insurance Corporation A+ A2 A+
Old Republic Insurance Company A+ A2 A+
Old Republic Insurance Company of Canada A * *
Old Republic National Title Insurance Company A+ A2 A+
Old Republic Surety Company A+ * A+
Old Republic Union Insurance Company A+ * A+
PMA Insurance Group A+ A2 A+
Old Republic International Corporation:
Long-term Debt * Baa2 BBB+
CURRENT RATINGS ASSIGNED BY:
*No rating sought by Company or provided by the indicated rating agency. Ratings as of March 31, 2023.
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
27,500
13
$ IN MILLIONS
CFR1
Equity
Total Liabilities
Total Assets
2014 15 16 17 18 19 21 22
Total Assets, Liabilities, and Equity Trends
CAPITALIZATION AND FINANCIAL RATINGS
2022 ANNUAL REVIEW | CAPITALIZATION AND FINANCIAL RATINGS
31
($ in Millions, Except Share Data) 2022
2021 2020 2019 2018 2017
2016 2015
2014 2013
Financial Cash and Fixed
Position Income Securities $ 12,688.7 $ 11,399.6 $ 11,365.1 $ 10,381.5 $ 9,683.0 $ 10,145.9 $ 9,973.1 $ 9,366.7 $ 9,163.4 $ 9,990.6
Summary Equity Securities 3,220.9 5,302.8 4,054.8 4,030.5 3,380.9 3,265.5 2,896.1 1,987.8 2,011.7 1,004.2
Other Invested Assets 138.0 116.5 115.3 115.4 123.4 124.9 126.5 120.9 116.4 114.3
Reinsurance Recoverable 5,588.0 4,943.4 4,362.8 3,823.9 3,484.5 3,371.8 3,231.5 3,183.6 3,422.5 3,215.7
Prepaid Federal Income Taxes – – – – 129.8 114.3 82.4 63.3 45.7 –
Sundry Assets 3,523.7 3,219.4 2,917.0 2,724.9 2,525.1 2,380.9 2,281.7 2,379.1 2,216.8 2,201.7
$ 25,159.4 $24,981.8 $ 22,815.2 $ 21,076.3 $ 19,327.1 $ 19,403.5 $ 18,591.6 $ 17,101.6 $ 16,976.9 $ 16,526.7
Policy Liabilities $ 2,978.8 $ 2,752.0 $ 2,593.1 $ 2,419.2 $ 2,303.5 $ 2,176.3 $ 2,035.0 $ 1,945.1 $ 1,832.7 $ 1,695.7
Loss and LAE Reserves 12,221.5 11,425.5 10,671.0 9,929.5 9,471.2 9,237.6 9,206.0 9,120.1 9,122.0 9,433.5
Sundry Liabilities 3,792.7 3,911.0 3,364.3 2,727.3 2,406.0 3,256.3 2,889.9 2,166.3 2,098.0 1,622.4
Preferred Stock – – – – – – – – – –
Common Equity 6,166.2 6,893.2 6,186.6 6,000.1 5,146.2 4,733.3 4,460.6 3,869.8 3,924.0 3,775.0
$ 25,159.4 $24,981.8 $ 22,815.2 $ 21,076.3 $ 19,327.1 $ 19,403.5 $ 18,591.6 $ 17,101.6 $ 16,976.9 $ 16,526.7
Total Capitalization $ 7,763.2 $ 8,481.7 $ 7,153.1 $ 6,974.2 $ 6,127.6 $ 6,182.0 $ 5,989.4 $ 4,822.7 $ 4,877.8 $ 4,336.6
Book Value Per Share $ 21.05 $ 22.76 $ 20.75 $ 19.98 $ 17.23 $ 17.72 $ 17.16 $ 14.98 $ 15.15 $ 14.64
Income
Net Premiums and Fees $ 7,675.3 $ 8,003.6 $ 6,737.8 $ 6,241.1 $ 5,940.9 $ 5,769.1 $ 5,537.5 $ 5,354.9 $ 4,960.0 $ 5,083.4
Statement Net Investment Income 459.5 434.3 438.9 450.7 431.8 409.4 387.0 388.6 345.5 318.7
Summary
Other Income 149.9 145.6 131.2 132.6 121.6 102.2 107.3 106.7 101.6 90.1
Investment Gains (Losses):
Realized From Actual Transactions 62.2 6.9 14.2 36.6 58.2 211.6 72.8 91.3 272.3 148.1
Unrealized from Changes in
Fair Value of Equity Securities (263.4) 751.1 (156.2) 599.5 (293.8) – – – – –
Total Revenues 8,083.7 9,341.6 7,166.0 7,460.5 6,258.8 6,492.4 6,104.7 5,941.7 5,679.6 5,640.4
Loss and LAE Expenses 2,440.2 2,420.9 2,491.4 2,572.7 2,460.7 2,478.8 2,347.9 2,459.3 2,514.5 2,238.3
Sales and General Expenses 4,786.0 4,998.5 3,986.1 3,565.4 3,359.9 3,288.1 3,070.8 2,850.5 2,555.5 2,729.1
Total Expenses 7,226.3 7,419.5 6,477.5 6,138.1 5,820.7 5,767.0 5,418.7 5,309.8 5,070.1 4,967.5
Pretax Income 8 57.4 1,922.1 688.4 1,322.4 438.1 725.4 686.0 631.8 609.4 672.9
Income Taxes 170.6 387.7 129.7 265.9 67.5 164.8 219.0 209.6 199.7 225.0
Net Income $ 686.4 $ 1,534.3 $ 558.6 $ 1,056.4 $ 370.5 $ 560.5 $ 466.9 $ 422.1 $ 409.7 $ 447.8
Operating Cash Flow $ 1,170.6 $ 1,331.7 $ 1,185.0 $ 936.2 $ 760.5 $ 452.8 $ 637.3 $ 688.2 $ (181.2)$ 686.7
Net Income Per Share: (a)
Basic $ 2.28 $ 5.08 $ 1.87 $ 3.52 $ 1.26 $ 2.14 $ 1.80 $ 1.63 $ 1.58 $ 1.74
Diluted $ 2.26 $ 5.05 $ 1.87 $ 3.51 $ 1.24 $ 1.92 $ 1.62 $ 1.48 $ 1.44 $ 1.57
Sources General Insurance $ 4,315.6 $ 4,042.5 $ 3,876.8 $ 3,920.8 $ 3,739.4 $ 3,531.6 $ 3,354.7 $ 3,313.3 $ 3,113.5 $ 2,849.9
of
Title Insurance 3,882.7 4,449.3 3,329.3 2,778.1 2,612.4 2,554.4 2,448.3 2,256.2 1,940.5 2,223.4
Revenues RFIG Run-off 30.0 44.1 60.4 76.8 96.1 144.6 193.2 245.0 282.9 353.4
Corporate & Other (b) (c) 56.5 47.5 41.4 48.5 46.3 50.1 35.4 35.8 70.0 65.6
Subtotal 8,284.9 8,583.5 7,308.0 6,824.4 6,494.4 6,280.8 6,031.8 5,850.3 5,407.2 5,492.3
Investment Gains (Losses):
Realized From Actual Transactions 62.2 6.9 14.2 36.6 58.2 211.6 72.8 91.3 272.3 148.1
Unrealized from Changes in
Fair Value of Equity Securities (263.4) 751.1 (156.2) 599.5 (293.8) – – – – –
Consolidated $ 8,083.7 $ 9,341.6 $ 7,166.0 $ 7,460.5 $ 6,258.8 $ 6,492.4 $ 6,104.7 $ 5,941.7 $ 5,679.6 $ 5,640.4
Sources of General Insurance $ 689.8 $ 589.6 $ 439.8 $ 370.2 $ 363.9 $ 340.3 $ 319.9 $ 336.4 $ 221.3 $ 288.3
Pretax Title Insurance 308.8 515.7 344.0 230.8 219.3 237.1 210.2 166.8 99.5 124.3
Income RFIG Run-off 35.2 32.8 9.8 30.3 49.9 (73.5) 69.8 29.4 10.3 110.0
Corporate & Other (b) 24.6 25.7 36.7 54.8 40.4 9.9 13.0 7.6 5.7 2.1
Subtotal 1,058.6 1,164.0 830.4 686.2 673.7 513.8 613.1 540.4 337.1 524.8
Investment Gains (Losses):
Realized From Actual Transactions 62.2 6.9 14.2 36.6 58.2 211.6 72.8 91.3 272.3 148.1
Unrealized from Changes in
Fair Value of Equity Securities (263.4) 751.1 (156.2) 599.5 (293.8) – – – – –
Consolidated $ 857.4 $ 1,922.1 $ 688.4 $ 1,322.4 $ 438.1 $ 725.4 $ 686.0 $ 631.8 $ 609.4 $ 672.9
(a) Retroactive adjustments have been made for all stock dividends and splits declared through December 31, 2022, and for consistent presentation of annual data.
(b) Includes amounts for a small life and accident insurance business as well as those of the parent holding company and several internal corporate services subsidiaries.
(c) 2015 reflects the transfer of accident insurance business from a life and accident subsidiary to a general insurance affiliate resulting in a $26.4 reduction in premiums.
Old Republic International Corporation
TEN-YEAR FINANCIAL SUMMARY
TEN-YEAR FINANCIAL SUMMARY | 2022 ANNUAL REVIEW
32
($ in Millions) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Underwriting General Insurance:
Service All Lines Combined:
Operating Earned Premiums $3,808.6 $3,555.5 $3,394.2 $3,432.4 $3,277.1 $3,110.8 $2,936.3 $2,894.7 $2,735.6 $2,513.7
Ratios Loss Ratio 61.8% 64.2% 69.3% 71.0% 71.6% 71.2% 72.4% 73.5% 77.4% 73.0%
Dividend Ratio .3 .6 .6 .8 .6 .6 .6 .6 .5 .6
Expense Ratio 27.4 26.5 25.6 25.7 25.0 25.5 24.8 23.5 22.9 23.7
Combined Ratio 89.5% 91.3% 95.5% 97.5% 97.2% 97.3% 97.8% 97.6% 100.8% 97.3%
Liability Lines Only:
Earned Premiums $2,351.3 $2,208.8 $2,140.2 $ 2,217.5 $2,120.9 $2,032.5 $1,963.3 $1,989.0 $1,934.3 $1,779.7
Loss Ratio 63.3% 68.0% 73.9% 75.5% 75.9% 76.2% 78.5% 80.6% 82.6% 77.1%
Dividend Ratio .3% .7% .6% .9% .6% .6% .6% .5% .5% .6%
All Other Lines:
Earned Premiums $1,457.3 $1,347.6 $1,260.3 $ 1,217.2 $1,154.8 $1,077.1 $ 974.1 $ 908.0 $ 801.5 $ 736.7
Loss Ratio 59.3% 57.3% 61.1% 63.0% 63.5% 62.1% 60.5% 57.3% 65.0% 62.8%
Dividend Ratio .3% .1% .1% .1% .2% .2% .3% .4% .4% .3%
Title Insurance: (a)
Earned Premiums and Fees $3,833.8 $4,404.3 $3,286.3 $2,736.0 $2,573.1 $2,516.5 $2,410.9 $2,220.8 $1,908.1 $2,193.9
Loss Ratio 2.3% 2.6% 2.3% 2.5% 1.9% .8% 3.5% 4.5% 4.8% 6.1%
Expense Ratio 90.9 86.7 88.4 90.5 90.9 91.0 89.0 89.2 91.1 89.1
Combined Ratio 93.2% 89.3% 90.7% 93.0% 92.8% 91.8% 92.5% 93.7% 95.9% 95.2%
RFIG Run-off:
Earned Premiums $ 23.2 $ 32.6 $ 45.1 $ 59.2 $ 75.9 $ 122.9 $ 170.0 $ 219.9 $ 255.4 $ 316.5
Loss Ratio (75.5)% (5.3)% 81.7% 53.5% 39.4% 160.9% 60.4% 88.0% 97.2% 68.8%
Expense Ratio 53.0 39.9 30.2 25.0 21.5 16.6 12.2 10.0 9.5 8.1
Combined Ratio (22.5)% 34.6% 111.9% 78.5% 60.9% 177.5% 72.6% 98.0% 106.7% 76.9%
Consolidated:
Earned Premiums and Fees $7,675.3 $8,003.6 $6,737.8 $6,241.1 $5,940.9 $5,769.1 $5,537.5 $5,354.9 $4,960.0 $5,083.4
Loss Ratio 31.8% 30.2% 37.0% 41.2% 41.4% 43.0% 42.4% 45.9% 50.7% 44.0%
Expense Ratio 59.2 59.7 56.3 54.1 53.5 53.9 52.4 50.2 48.7 51.2
Combined Ratio 91.0% 89.9% 93.3% 95.3% 94.9% 96.9% 94.8% 96.1% 99.4% 95.2%
Balance Premium Leverage: (b)
Sheet General Insurance 1.1x .9x .9x 1.0x 1.1x 1.0x 1.0x 1.1x 1.0x .9x
Leverage Title Insurance 3.4 3.7 3.4 3.3 3.8 3.9 4.3 4.7 4.1 4.9
RFIG Run-off .1 .1 .1 .1 .2 .3 .5 .8 1.2 N/M
Consolidated 1.3x 1.2x 1.1x 1.0x 1.2x 1.2x 1.3x 1.4x 1.3x 1.4x
Reserve Leverage: (c)
General Insurance 191% 160% 165% 166% 189% 172% 182% 189% 162% 146%
Title Insurance 55 50 57 65 79 87 108 122 109 106
RFIG Run-off 30 28 29 25 43 66 130 255 388 N/M
Consolidated 123% 107% 114% 112% 126% 134% 145% 166% 157% 176%
Capitalization Debt 20.6% 18.7% 13.5% 14.0% 16.0% 23.4% 25.5% 19.8% 19.6% 13.0%
and Fixed Preferred Stock – – – – – – – – – –
Charges Common Equity 79.4 81.3 86.5 86.0 84.0 76.6 74.5 80.2 80.4 87.0
Coverage Total Capitalization 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Ratios Fixed Charges
Coverage Ratio (d) 16.7x 21.8x 20.5x 16.9x 15.3x 9.0x 13.0x 13.6x 12.9x 23.6x
(a) Title Insurance ratios are a function of combined premiums and fees earned.
(b) Ratio of net premiums written to equity. For the Title Insurance, this ratio incorporates escrow and other fee revenues.
(c) Ratio of loss and loss adjustment expense reserves to equity. Consolidated ratio also incorporates future benefit reserves for the Company’s small life and accident insurance
operations.
(d) Earnings before taxes, investment gains (losses), and interest expense to annual interest expense.
N/M = Not meaningful
Old Republic International Corporation
TEN-YEAR OPERATING AND BALANCE SHEET STATISTICS
2022 ANNUAL REVIEW | TEN-YEAR OPERATING AND BALANCE SHEET STATISTICS
33
(Common Stock Data in Dollars to Nearest Cent) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Company Quoted Stock Market Prices:
Performance High $ 27.19 $26.69 $23.62 $24.10 $23.05 $21.56 $20.00 $ 19.11 $ 17. 26 $ 17.45
on the Low $20.28 $ 17.9 4 $11.88 $19.68 $19.48 $17.92 $16.51 $13.59 $ 13.43 $ 10.74
Stock Market Close $ 24.15 $24.58 $ 19.71 $22.37 $20.57 $21.38 $19.00 $18.63 $ 14.63 $ 17.27
(a) Ratios of Closing Price to:
Book Value 1.1x 1.1x .9x 1.1x 1.2x 1.2x 1.1x 1.2x 1.0x 1.2x
Income Before Other Items:
Basic 8.6x 7.9x 8.8x 12.1x 10.9x 17.7x 11.7x 13.3x 16.3x 12.6x
Diluted 8.7x 8.0x 8.8x 12.2x 11.1x 19.3x 13.0x 14.6x 17.4x 13.8x
Net Income:
Basic 10.6x 4.8x 10.5x 6.4x 16.3x 10.0x 10.6x 11.4x 9.3x 9.9x
Diluted 10.7x 4.9x 10.5x 6.4x 16.6x 11.1x 11.7x 12.6x 10.2x 11.0x
Total Market Return (b) 6.7% 45.2% -7.7% 17.8% 4.8% 16.9% 6.2% 33.4% -11.2% 70.7%
Shares Outstanding (Thousands)
Average: Basic 301,676 301,945 298,407 299,885 294,248 262,114 259,429 259,502 258,553 257,443
Diluted 303,296 303,667 298,898 301,227 301,016 299,387 296,379 296,088 295,073 293,684
End of Period 296,932 307,565 304,122 303,652 302,714 269,238 262,719 261,968 260,946 260,462
Company Composition of Basic Earnings:
Performance Income, before Items Below $ 2.80 $ 3.10 $ 2.24 $ 1.85 $ 1.89 $ 1.21 $ 1.62 $ 1.40 $ .90 $ 1.37
on its Books Net Investment Gains (Losses):
(a) Realized From Actual Transactions .17 .02 .04 .10 .16 .93 .18 .23 .68 .37
Unrealized From Changes
in Fair Value of Equity Securities (.69) 1.96 (.41) 1.57 (.79) – – – – –
Net Income $ 2.28 $ 5.08 $ 1.87 $ 3.52 $ 1.26 $ 2.14 $ 1.80 $ 1.63 $ 1.58 $ 1.74
Composition of Diluted Earnings:
Income, before Items Below $ 2.79 $ 3.08 $ 2.24 $ 1.84 $ 1.86 $ 1.11 $ 1.46 $ 1.28 $ .84 $ 1.25
Net Investment Gains (Losses):
Realized From Actual Transactions .16 .02 .04 .10 .15 .81 .16 .20 .60 .32
Unrealized From Changes
in Fair Value of Equity Securities (.69) 1.95 (.41) 1.57 (.77) – – – – –
Net Income $ 2.26 $ 5.05 $ 1.87 $ 3.51 $ 1.24 $ 1.92 $ 1.62 $ 1.48 $ 1.44 $ 1.57
Dividends on Common Stock:
Amount (c)
$ 1.92 $ 2.38 $ 1.84 $ 1.80 $ .78 $ 1.76 $ .75 $ .74 $ .73 $ .72
Payout Ratio (d) 69% 77% 82% 98% 42% 159% 51% 58% 87% 58%
Stock Dividends – – – – – – – – – –
Book Value:
Amount $21.05 $22.76 $20.75 $19.98 $ 17.23 $ 17.72 $ 17.16 $14.98 $ 15.15 $14.64
% Change -7. 5% 9.7% 3.9% 16.0% -2.8% 3.3% 14.5% -.9% 3.5% 4.3%
Total Book Return (b) .9% 21.2% 13.1% 26.4% 1.6% 13.5% 19.6% 3.8% 8.5% 9.5%
Cash and Invested Assets Per Share:
Amount (e) $54.77 $55.54 $52.12 $48.39 $ 44.14 $50.67 $50.00 $ 4 4.40 $ 43.60 $ 43.07
Ratio to Book Value 2.6x 2.4x 2.5x 2.4x 2.6x 2.9x 2.9x 3.0x 2.9x 2.9x
Ratio to Closing Price 2.3x 2.3x 2.6x 2.2x 2.1x 2.4x 2.6x 2.4x 3.0x 2.5x
Operating Return on Equity (f) 12.3% 15.1% 11.2% 10.8% 11.8% 7.1% 10.8% 9.2% 6.2% 9.8%
(a) Retroactive adjustments have been made for all stock dividends and splits declared through December 31, 2022.
(b) Total market return has been calculated as the sum of the annual change in market value per share, assuming cash dividends are reinvested on a pretax basis in shares when paid.
Total book return has been calculated as the sum of the annual change in book value per share, plus cash dividend.
(c) In addition to regular quarterly cash dividends, the Company’s Board of Directors declared special cash dividends of $1.00 per share in August 2022 (paid in September 2022),
$1.50 per share in August 2021 (paid in October 2021), $1.00 per share in December 2020 (paid in January 2021), $1.00 per share in August 2019 (paid in September 2019) and
$1.00 per share in December 2017 (paid in January 2018).
(d) Cash dividends as a percentage of diluted earnings per share, before investment gains or losses.
(e) Based on total shares outstanding at end of year.
(f) Calculated as net income excluding realized and unrealized investment gains (losses) as a percentage of common shareholders’ equity at the beginning of the year.
Old Republic International Corporation
COMMON SHARE STATISTICS
COMMON SHARE STATISTICS | 2022 ANNUAL REVIEW
34
($ in Millions)
December 31,
2022 2021 2020 2019 2018
Assets
Investments:
Available for Sale:
Fixed Income Securities (at Fair Value) $11,746.7 $10,675.7 $10,496.8 $ 8,796.5 $ 8,182.8
Short-Term Investments (at Fair Value, which Approximates Cost) 860.8 565.7 749.6 484.3 354.9
Total 12,607.6 11,241.4 11,246.4 9,280.9 8,537.8
Held to Maturity:
Fixed Income Securities (at Amortized Cost) – – – 1,021.7 1,044.8
Equity Securities (at Fair Value) 3,220.9 5,302.8 4,054.8 4,030.5 3,380.9
Other Investments 31.2 32.0 28.8 26.0 31.0
Total Investments 15,859.9 16,576.3 15,330.1 14,359.2 12,994.6
Other Assets:
Cash 81.0 158.1 118.7 78.8 100.3
Accrued Investment Income 106.7 84.4 86.4 89.3 92.4
Accounts and Notes Receivable 1,927.5 1,768.7 1,593.9 1,466.7 1,499.4
Federal Income Tax Recoverable: Current 15.7 11.8 – 5.7 16.8
Prepaid Federal Income Taxes – – – – 129.8
Reinsurance Balances and Funds Held 323.0 258.1 205.0 178.4 166.2
Reinsurance Recoverable: Paid Losses 119.4 118.2 67.6 68.5 55.9
Policy and Loss Reserves 5,468.5 4,825.1 4,295.1 3,755.3 3,428.6
Deferred Policy Acquisition Costs 382.5 350.4 328.0 325.4 316.3
Sundry Assets 874.8 830.3 790.0 748.5 526.3
Total Other Assets 9,299.5 8,405.5 7,485.0 6,717.1 6,332.4
Total Assets $25,159.4 $24,981.8 $22,815.2 $21,076.3 $ 19,327.1
Liabilities, Preferred Stock, and
Common Shareholders’ Equity Liabilities:
Loss and Loss Adjustment Reserves $12,221.5 $11,425.5 $10,671.0 $ 9,929.5 $ 9,471.2
Unearned Premiums 2,787.8 2,559.4 2,397.1 2,224.7 2,104.9
Other Policyholders’ Benefits and Funds 191.0 192.6 195.9 194.4 198.6
Total Policy Liabilities and Accruals 15,200.4 14,177.5 13,264.2 12,348.7 11,774.8
Commissions, Expenses, Fees, and Taxes 514.8 573.5 663.5 550.9 525.4
Reinsurance Balances and Funds 1,079.4 866.0 725.4 616.0 600.4
Federal Income Tax Payable: Current – – 4.2 – –
Federal Income Tax: Deferred 40.9 249.5 137.3 112.2 10.3
Debt 1,597.0 1,588.5 966.4 974.0 981.4
Sundry Liabilities 560.5 633.3 867.3 474.1 288.3
Total Liabilities 18,993.2 18,088.6 16,628.5 15,076.1 14,180.8
Preferred Stock: – – – – –
Common Shareholders’ Equity:
Common Stock 296.9 307.5 304.1 303.6 302.7
Additional Paid-In Capital 1,141.8 1,376.1 1,306.9 1,297.5 1,277.6
Retained Earnings 5,319.7 5,214.0 4,394.8 4,386.0 3,849.8
Accumulated Other Comprehensive Income (Loss) (522.7) 78.0 284.0 77.7 (210.0)
Unallocated 401(k) Plan Shares (at Cost) (69.5) (82.5) (103.2) (64.8) (73.9)
Total Common Shareholders’ Equity 6,166.2 6,893.2 6,186.6 6,000.1 5,146.2
Total Liabilities, Preferred Stock, and
Common Shareholders’ Equity $25,159.4 $24,981.8 $22,815.2 $21,076.3 $ 19,327.1
Old Republic International Corporation
CONSOLIDATED BALANCE SHEETS
2022 ANNUAL REVIEW | CONSOLIDATED FINANCIAL STATEMENTS
35
Old Republic International Corporation
CONSOLIDATED STATEMENTS OF INCOME
($ in Millions, Except Share Data)
Years Ended December 31,
2022 2021 2020 2019 2018
Revenues:
Net Premiums Earned $7,3 42.1 $7,559.8 $6,345.8 $5,919.9 $5,651.1
Title, Escrow, and Other Fees 333.2 443.8 391.9 321.1 289.8
Total Premiums and Fees 7,675.3 8,003.6 6,737.8 6.241.1 5,940.9
Net Investment Income 459.5 434.3 438.9 450.7 431.8
Other Income 149.9 145.6 131.2 132.6 121.6
Total Operating Revenues 8,284.9 8,583.5 7,308.0 6,824.4 6,494.4
Net Investment Gains (Losses):
Realized From Actual Transactions and Impairments 62.2 6.9 14.2 36.6 58.2
Unrealized From Changes in Fair Value of Equity Securities (263.4) 751.1 (156.2) 599.5 (293.8)
Total Realized and Unrealized Investment Gains (Losses) (201.1) 758.0 (142.0) 636.1 (235.6)
Total Revenues 8,083.7 9,341.6 7,166.0 7,460.5 6,258.8
Expenses:
Loss and Loss Adjustment Expenses 2,427.7 2,398.2 2,472.5 2,545.3 2,440.9
Dividends to Policyholders 12.5 22.7 18.9 27.3 19.8
Underwriting, Acquisition, and Other Expenses 4,719.2 4,942.3 3,942.4 3,525.4 3,317.7
Interest and Other Charges 66.7 56.2 43.7 40.0 42.2
Total Expenses 7, 22 6.3 7,419.5 6,477.5 6,138.1 5,820.7
Income Before Income Taxes 857.4 1,922.1 688.4 1,322.4 438.1
Income Taxes (Credits):
Current 226.0 221.7 156.9 238.4 114.1
Deferred (55.1) 165.9 (27.1) 27.4 (46.5)
Total 170.9 387.7 129.7 265.9 67.5
Net Income $ 686.4 $1,534.3 $ 558.6 $1,056.4 $ 370.5
Net Income Per Share:
Basic $ 2.28 $ 5.08 $ 1.87 $ 3.52 $ 1.26
Diluted $ 2.26 $ 5.05 $ 1.87 $ 3.51 $ 1.24
Average Shares Outstanding: Basic 301,676,941 301,945,319 298,407,921 299,885,468 294,248,871
Diluted 303,296,612 303,667,669 298,898,673 301,227,715 301,016,076
($ in Millions)
Years Ended December 31,
2022 2021 2020 2019 2018
Net Income as Reported $ 686.4 $1,534.3 $ 558.6 $1,056.4 $ 370.5
Other Comprehensive Income (Loss):
Net Unrealized Gains (Losses) on Securities Not Included
in the Statement of Income, Net of Tax (657.3) (287.0) 270.3 287.2 (176.3)
Net Adjustment Related to Defined Benefit Pension Plans, Net of Tax 68.4 80.5 (67.0) (5.4) 5.4
Foreign Currency Translation Adjustment (11.8) .4 2.9 5.9 (11.1)
Total Other Comprehensive Income (Loss) (600.7) (206.0) 206.3 287.7 (182.0)
Comprehensive Income $ 85.7 $1,328.3 $ 765.0 $1,344.2 $ 188.5
Old Republic International Corporation
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
CONSOLIDATED FINANCIAL STATEMENTS | 2022 ANNUAL REVIEW
36
Old Republic International Corporation
CONSOLIDATED STATEMENTS OF
PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY
($ in Millions, Except Share)
Years Ended December 31,
2022 2021 2020 2019 2018
Preferred Stock:
Balance, Beginning and End of Year $ – $ – $ – $ – $ –
Common Stock:
Balance, Beginning of Year $ 307.5 $ 304.1 $ 303.6 $ 302.7 $ 269.2
Dividend Reinvestment Plan .1 .1 – – –
Stock Based Compensation 1.9 3.2 .4 .8 1.1
Treasury Stock Restored to Unissued Status (12.6) – – – –
Conversion of Senior Debentures – – – – 32.2
Balance, End of Year $ 296.9 $ 307.5 $ 304.1 $ 303.6 $ 302.7
Additional Paid-In Capital:
Balance, Beginning of Year $ 1,376.1 $ 1,306.9 $ 1,297.5 $ 1,277.6 $ 815.2
Dividend Reinvestment Plan 2.2 3.5 .9 1.7 1.7
Stock Based Compensation 31.1 56.5 7.7 15.0 19.9
Treasury Stock Restored to Unissued Status (268.6) – – – –
Conversion of Senior Debentures – – – – 438.1
401(k) Plan Shares Released 6.1 9.1 .9 3.0 2.6
Other - Net (5.1) – (.2) – –
Balance, End of Year $ 1,141.8 $ 1,376.1 $ 1,306.9 $ 1,297.5 $ 1,277.6
Retained Earnings:
Balance, Beginning of Year $ 5,214.0 $ 4,394.8 $ 4,386.0 $ 3,849.8 $ 3,206.9
Adoption of New Accounting Principle – – (2.3) 18.4 502.1
Balance, Beginning of Year, as Adjusted 5,214.0 4,394.8 4,383.6 3,868.3 3,708.9
Net Income 686.4 1,534.3 558.6 1,056.4 370.5
Dividends on Common Shares
($1.92, $2.38, $1.84, $1.80, and $.78 per common share) (580.7) (715.1) (547.5) (538.7) (229.6)
Balance, End of Year $ 5,319.7 $ 5,214.0 $ 4,394.8 $ 4,386.0 $3,849.8
Accumulated Other Comprehensive Income (Loss):
Balance, Beginning of Year $ 78.0 $ 284.0 $ 77.7 $ (210.0) $ 474.2
Adoption of New Accounting Principle – – – – (502.1)
Balance, Beginning of Year, as Adjusted 78.0 284.0 77.7 (210.0) (27.9)
Net Unrealized Gains (Losses) on Securities Not Included
in the Statement of Income, Net of Tax (657.3) (287.0) 270.3 287.2 (176.3)
Net Adjustment Related to Defined Benefit Pension Plans, Net of Tax 68.4 80.5 (67.0) (5.4) 5.4
Foreign Currency Translation (11.8) .4 2.9 5.9 (11.1)
Balance, End of Year $ (522.7) $ 78.0 $ 284.0 $ 77.7 $ (210.0)
Unallocated 401(k) Plan Shares:
Balance, Beginning of Year $ (82.5) $ (103.2) $ (64.8) $ (73.9) $ (32.4)
401(k) Plan Shares Released 13.0 20.6 11.5 9.1 8.4
Purchase of Unallocated 401(k) Plan Shares – – (50.0) – (50.0)
Balance, End of Year $ (69.5) $ (82.5) $ (103.2) $ (64.8) $ (73.9)
Treasury Stock:
Balance, Beginning of Year $ – $ – $ – $ – $ –
Aquired during Year (281.2) – – – –
Restored to Unissued Status 281.2 – – – –
Balance, End of Year $ – $ – $ – $ – $ –
2022 ANNUAL REVIEW | CONSOLIDATED FINANCIAL STATEMENTS
37
Old Republic International Corporation
CONSOLIDATED STATEMENTS OF CASH FLOWS
2022 2021 2020 2019 2018
Cash Flows from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Deferred Policy Acquisition Costs
Premiums and Other Receivables
Loss and Loss Adjustment Expense Reserve
Unearned Premiums and Other Policyholders’ Liabilities
Income Taxes
Prepaid Federal Income Taxes
Reinsurance Balances and Funds
Realized Investment Gains From Actual
Transactions and Impairments
Unrealized Investment (Gains) Losses From
Changes in Fair Value of Equity Securities
Accounts Payable, Accrued Expenses and Other
$ 686.4
(32.0)
(158.6)
221.5
157.6
(54.7)
–
147. 2
(62.2)
263.4
1.9
$1,534.3
(22.3)
(174.8)
279.8
103.4
151.4
–
36.9
(6.9)
(751.1)
160.9
$ 558.6
(2.5)
(123.4)
340.7
34.6
(18.3)
–
77.0
(14.2)
156.2
176.2
$1,056.4
(8.9)
32.5
214.6
32.2
37.2
129.8
(9.7)
(36.6)
(599.5)
88.0
$ 370.5
(18.4)
(29.3)
148.4
95.1
(69.5)
(15.5)
13.5
(58.2)
293.8
30.0
Total 1,170.6 1,311.7 1,185.0 936.2 760.5
Cash Flows from Investing Activities:
Fixed Income Securities:
Available for Sale:
Maturities and Early Calls
Sales
Sales of:
Equity Securities
Other Investments
Purchases of:
Fixed Income Securities
Equity Securities
Other Investments
Purchase of a Business
Net Decrease (Increase) in Short-Term Investments
Other–Net
1,356.1
1,403.3
2,249.4
11.4
(5,009.5)
(58.0)
(59.7)
–
(295.7)
(12.3)
1,410.9
338.0
540.7
8.3
(2,330.7)
(1,032.2)
(55.5)
–
183.9
–
1,280.1
399.5
162.3
8.8
(2,059.3)
(321.0)
(50.2)
–
(265.0)
(.3)
779.0
663.1
809.9
33.0
(1,702.1)
(815.6)
(60.9)
(1.2)
(129.7)
–
964.0
299.1
402.6
19.4
(1,421.9)
(752.5)
(51.6)
(13.1)
314.2
.1
Total (415.0) (936.5) (845.2) (424.6) (239.5)
Cash Flows from Financing Activities:
Issuance of Debentures and Notes
Issuance of Common Shares
Redemption of Debentures and Notes
Purchase of Unallocated 401(k) Plan Shares
Dividends on Common Shares (a)
Treasury Stock Aquired
Other–Net
–
26.6
–
–
(579.7)
(281.2)
1.5
642.5
60.0
(21.7)
–
(1,019.2)
–
2.5
–
6.7
(8.6)
(50.0)
(250.1)
–
2.0
–
13.8
(8.4)
–
(538.7)
–
.2
–
13.1
(4.7)
(50.0)
(498.8)
–
(6.0)
Total (832.7) (335.7) (300.0) (533.1) (546.5)
Increase (Decrease) in Cash:
Cash, Beginning of Year
(77.1)
158.1
39.4
118.7
39.8
78.8
(21.4)
100.3
(25.6)
125.9
Cash, End of Year $ 81.0 $ 158.1 $ 118.7 $ 78.8 $ 100.3
Supplemental Cash Flow Information:
Cash Paid (Received) During the Year for: Interest $ 65.8 $ 53.4 $ 41.4 $ 42.1 $ 50.8
Income Taxes $ 226.5 $ 236.5 $ 149.3 $ 229.4 $ 137.2
($ in Millions)
Years Ended December 31,
(a) Including special dividends paid of $308.4 in 2022, $764.5 in 2021, $303.4 in 2019 and $269.2 in 2018.
CONSOLIDATED FINANCIAL STATEMENTS | 2022 ANNUAL REVIEW
38
Old Republic International Corporation
KEY OPERATING SUBSIDIARIES
(As of December 31, 2022)
Currently, Old Republic manages its business through some 130 corporate entities, of which 30 are insurance subsidiaries covering
all 50 states and Canada. The following list shows the Corporation’s most significant subsidiaries within each operating segment. The
underwritten title and managing insurance agencies listed function principally as specialized marketing or underwriting divisions of one
or more Old Republic insurance company subsidiaries.
General
Insurance
Group
Title Insurance
Group
Republic
Financial
Indemnity
Group
Life & Accident
Group
Corporate
and Other
Operations
(a) Managing insurance or underwriting agencies and related service companies.
(b) Joint underwriting venture and/or partially owned subsidiaries and affiliates.
Insurance Companies
American Guaranty Title Insurance Company
Mississippi Valley Title Insurance Company
Old Republic National Title Insurance Company
Agencies & Service Companies
Attorneys’ Title Fund Services, LLC (b)
Compass Abstract, Inc.
eRecording Partners Network, LLC (b)
Genesis Abstract, LLC (b)
iMarc, Inc.
Lenders’ Inspection Company
Lex Terrae, Ltd.
Lex Terrae National Title Services, Inc.
Mara Escrow Company
Old Republic Diversified Services, Inc.
Old Republic Exchange Company
Old Republic Title Company
Old Republic Title Company of Conroe (b)
Old Republic Title Company of Indiana
Old Republic Title Company of Nevada
Old Republic Title Company of Oklahoma
Old Republic Title Company of Oregon
Old Republic Title Company of St. Louis, Inc.
Old Republic Title Company of Tennessee
Old Republic Title and Escrow of Hawaii, Ltd.
Old Republic Title Insurance Agency, Inc.
Old Republic Title, Ltd.
RQ Holdings, Inc.
Sentry Abstract Company
The Title Company of North Carolina, Inc.
Troon Management Corporation
Insurance Companies
BITCO General Insurance Corporation
BITCO National Insurance Company
BITCO Security Assurance Company, IC
Great West Casualty Company
Inter West Assurance, Ltd.
Manufacturers Alliance Insurance Company
Old Republic General Insurance Corporation
Old Republic Home Protection Company
Old Republic Inland Marine Company, IC
Old Republic Insurance Company
Old Republic Insurance Company of Canada
Old Republic Lloyds of Texas
Old Republic Residual Market Insurance Company
Old Republic Security Assurance Company
Old Republic Specialty Insurance Company, IC
Old Republic Surety Company
Old Republic Union Insurance Company
Pennsylvania Manufacturers Association Insurance Company
Pennsylvania Manufacturers Indemnity Company
Pennsylvania Manufacturers International Insurance, Ltd.
PMA Insurance SPC
Republic Credit Indemnity Company
Agencies & Service Companies (a)
BITCO Construction Group, Inc.
Brummel Brothers, Inc.
DISCC Enterprise, Ltd.
Employers General Insurance Group, Inc.
Great West Services, Inc.
Joe Morten & Son, Inc.
Old Republic Aerospace, Inc.
Old Republic Excess & Surplus, Inc.
Old Republic Home Protection Services, Inc.
Old Republic Inland Marine Company, Inc.
Old Republic Insured Automotive Services, Inc.
Old Republic Professional Liability, Inc.
Old Republic Residual Market Services, Inc.
Old Republic Risk Management, Inc.
Old Republic Specialty Insurance Underwriters, Inc. (b)
PMA Management Corporation
PMA Management Corporation of New England
Republic Equity Credit Services, Inc.
Republic Insured Credit Services, Inc.
Insurance Companies
Republic Mortgage Assurance Company
Republic Mortgage Guaranty Insurance Corporation
Republic Mortgage Insurance Company
Old Republic Life Insurance Company Reliable Life Insurance Company (Canada)
Old Republic Asset Management Corporation
Old Republic General Services, Inc.
Old Republic Capital Corporation
Old Republic International Corporation
Old Republic Financial Acceptance Corporation
2022 ANNUAL REVIEW | KEY OPERATING SUBSIDIARIES
39
BOARD OF DIRECTORS AND SENIOR EXECUTIVE GROUPS | 2022 ANNUAL REVIEW
39
Barbara A. Adachi
Chief Executive and
National Managing Partner (Retired)
Deloitte Consulting’s Human Capital
Consulting Practice
Steven J. Bateman
Partner (Retired)
PricewaterhouseCoopers, LLP
Accountants
Lisa J. Caldwell
Executive Vice President and
Chief Human Resources Officer (Retired)
Reynolds American, Inc.
John M. Dixon
Partner (Retired)
Chapman and Cutler Attorneys
Chicago, IL
Michael D. Kennedy
Senior Client Partner
Korn Ferry
Charles J. Kovaleski
Executive Vice President (Retired)
Old Republic Title Insurance
Companies; President (Retired)
Attorney’s Title Division
Spencer LeRoy III
Chairman of the Board
Senior Vice President,
Secretary, and General Counsel (Retired)
Old Republic International Corporation
Peter B. McNitt
Vice Chairman (Retired)
BMO Harris Bank
Glenn W. Reed
Managing Director - Strategy Division
(Retired)
The Vanguard Group, Inc.
Craig R. Smiddy
President and
Chief Executive Officer
J. Eric Smith
President and Chief Executive (Retired)
Swiss Re Americas
Arnold L. Steiner
President (Retired)
Steiner Bank, Birmingham, AL
Fredricka Taubitz
Executive Vice President
and Chief Financial Officer (Retired)
Zenith National Insurance Corporation
Partner, Coopers & Lybrand Prior Thereto
Steven R. Walker
Partner (Retired)
Leland, Parachini, Steinberg,
Matzger and Melnick, LLP
Attorneys, San Francisco, CA
*As of March 17, 2023
OLD REPUBLIC INTERNATIONAL CORPORATION
BOARD OF DIRECTORS*
Old Republic’s major operating subsidiaries and segments are headed by teams of senior
executives formally organized as the Office of the Chief Executive Officer. These executive
teams provide an inter-disciplinary approach tailored to the specific management needs of
the Company’s multi-faceted business. Members of Old Republic’s Board of Directors bring
diversity of expertise, experience, and insurance industry knowledge to corporate governance.
BOARD OF DIRECTORS AND SENIOR EXECUTIVE GROUPS
40
OLD REPUBLIC TITLE INSURANCE GROUP
OFFICE OF THE CHIEF EXECUTIVE OFFICER
Ivy L. Anderson
Executive Vice President;
President - Old Republic
Western Title, Inc.
Mark M. Budzinski
Executive Vice President and
Chief Legal Officer
Curtis J. Hoffman
Executive Vice President;
President - Old Republic
Central Title, Inc.
Chris G. Lieser
Executive Vice President
and Chief Financial Officer
Carolyn J. Monroe
President and
Chief Executive Officer
Jesse N. Oman
Executive Vice President and
Chief Information Officer
Dana C. Solms
Executive Vice President;
President - Old Republic
Eastern Title, Inc.
Rande K. Yeager
Executive Chairman
OLD REPUBLIC GENERAL INSURANCE GROUP
CHIEF EXECUTIVE OFFICERS AND/OR PRESIDENTS
Matthew R. Bisig
Old Republic Inland Marine, Inc.
Michael L. Cescon
Old Republic Insured
Automotive Services, Inc.
Scott L. Dahlager
Old Republic Residual
Market Services, Inc.
William P. Franchi
Old Republic Specialty
Insurance Underwriters, Inc.
Derek R. Hopper
PMA Companies
Frank J. Kastelic
Old Republic Professional
Liability, Inc.
Vincent C. Lamb
BITCO Insurance Companies
BITCO Construction Group, Inc.
Terri E. Minik
Old Republic Risk
Management, Inc.
Marisol Natera
Old Republic Home
Protection Company
Steve J. Olson
Great West Casualty Company
Alan P. Pavlic
Old Republic Surety Company
Ralph Sabbagh
Old Republic Excess &
Surplus, Inc.
Ralph H. Sohl
Old Republic Aerospace, Inc.
Jason R. Smith
Old Republic Insurance
Company of Canada
Thomas A. Dare
ORI Senior Vice President,
Secretary, and General Counsel
W. Todd Gray
ORI Executive Vice President
and Treasurer
Jeffrey P. Lange
Senior Vice President and
Chief Operating Officer
Stephen J. Oberst
ORI Executive Vice President;
Executive Vice President
Craig R. Smiddy
ORI President and Chief Executive Officer;
President and Chief Executive Officer
Frank J. Sodaro
ORI Senior Vice President and
Chief Financial Officer
OLD REPUBLIC GENERAL INSURANCE GROUP
OFFICE OF THE CHIEF EXECUTIVE OFFICER
Thomas A. Dare
ORI Senior Vice President,
Secretary, and General Counsel
W. Todd Gray
ORI Executive Vice President
and Treasurer
Stephen J. Oberst
ORI Executive Vice President;
Executive Vice President -
Old Republic General Insurance Group
Craig R. Smiddy
ORI President and Chief Executive Officer;
President and Chief Executive Officer -
Old Republic General Insurance Group
Frank J. Sodaro
ORI Senior Vice President and
Chief Financial Officer
Rande K. Yeager
Executive Chairman -
Old Republic Title Insurance Group
OLD REPUBLIC INTERNATIONAL CORPORATION
OFFICE OF THE CHIEF EXECUTIVE OFFICER
2022 ANNUAL REVIEW | BOARD OF DIRECTORS AND SENIOR EXECUTIVE GROUPS
41
THE MOST RECENT DECADE | 2022 ANNUAL REVIEW
THE MOST RECENT DECADE
2022 ★ Old Republic’s valued associates continued to diligently serve the
needs of our business, our customers, and other important stakeholders. Their
dedication to delivering our products and services with excellence and discipline
led to Old Republic’s strong operating performance in 2022. Consolidated pretax
operating income was nearly $1.1 billion, down slightly from last year’s record.
General Insurance reached a new high for premiums and profitability. Premium
rate increases for most lines of coverage, high renewal retention ratios, and new
business production all contributed. Greater profits came from a lower underlying
combined ratio, with favorable loss reserve development from prior periods.
Together, these factors helped General Insurance produce a record $690 million
in pretax operating income.
Title Insurance revenues and operating income declined. This reflected increased
mortgage interest rates, which reduced refinance and purchase activity. As a
result, Title Insurance revenues decreased to $3.9 billion, while pretax operating
income fell to $309 million.
Old Republic has paid a cash dividend without interruption since 1942 (81 years),
and it has raised the cash dividend for each of the past 41 years. In addition, a
special cash dividend of $1.00 per share was declared in August 2022. At the
same time, Old Republic’s Board of Directors authorized a $450 million share
repurchase program, enabling us to retire 12.6 million shares in 2022.
2021 ★ Old Republic’s strong performance resulted from the dedication of our
valued associates. They continued their commitment to excellence in delivering products and
services to meet the ongoing needs of our businesses, our customers, and other important
stakeholders. Consolidated pretax operating income reached an all-time high of nearly $1.2
billion, up 40% from the previous record of $830 million in 2020. Shareholders’ equity also
achieved new heights, to $6.9 billion, lifted by strong operating earnings and gains in our
investment portfolio.
General Insurance delivered record premiums and profitability. This came from high
renewal retention ratios, new business production, and strong rate increases for most lines of
coverage. Favorable claim reserve development from prior periods and lower current period
claim provisions led to improved claim ratios. Together, these factors helped General Insurance
produce a new high of $590 million in pretax operating income.
Title Insurance revenues and operating income experienced record growth. Historically low
mortgage interest rates and a robust real estate market fueled strong refinance and purchase
activity. Title Insurance revenues increased for the seventh-consecutive year, reaching a record
of more than $4.4 billion. Pretax operating income hit a new high of $516 million.
For the 40th-consecutive year, Old Republic’s Board of Directors increased the cash
dividend. The Company has paid a cash dividend, without interruption, for 80 years.
Additionally, a special cash dividend of $1.50 per share was declared in August 2021.
2020 ★ The COVID-19 pandemic caused devastating human and economic harm.
Thanks to our investment in technology, most of Old Republic’s more than 9,400 employees
could work remotely. Our associates rose above the personal and professional obstacles to
meet the ongoing needs of our business, our customers, and other important stakeholders.
Despite this adversity, Old Republic’s consolidated pretax operating income reached an
all-time high of $830.5 million, up 21% from the prior record in 2019.
General Insurance underwriting and related services profitability significantly improved in
2020. Worker’s Compensation premiums declined, reflecting the pandemic’s impact on payroll
exposures. Other coverages helped offset this, supported by strong premium rate increases
and continued new business production. Excellent underwriting results enabled General
Insurance to produce a new high in pretax operating income of $440 million.
Title Insurance revenues and operating income experienced exceptional growth. A robust
real estate market and low interest rates facilitated strong refinance and purchase activity. Title
Insurance revenues set a record of more than $3.3 billion, while pretax operating income was
a record $344 million. These impressive results were generated from both agency and direct
production channels.
Cash dividends on Old Republic’s common stock rose for the 39th consecutive year. The
Company has now paid a cash dividend, without interruption, for 79 years. In addition, a special
cash dividend of $1.00 per share was declared in December 2020.
2019 ★
O
ld Republic’s consolidated pretax operating earnings, excluding its RFIG run-
off segment, reached an all-time high of $659.9 million. Including the run-off business, pretax
operating earnings grew to $686.2, edging above the prior 2005 record.
The Company announced changes in its senior executive ranks. Craig R. Smiddy was
appointed Chief Executive Officer becoming the fifth CEO in its 96-year history. He succeeds
A.C. Zucaro, who held that post for the 29 preceding years. Additionally, Stephen J. Oberst was
named Executive Vice President.
General Insurance underwriting/service profitability declined slightly in 2019. Earned
premiums edged up as premiums grew for most types of coverages and markets served. This
was reflective of the cumulative effects of ongoing premium rate increases, along with new
business production. Claim ratios remained basically level.
The continuation of a lower interest rate environment in a favorable real estate market,
coupled with a stable market share position has led Title Insurance revenues to exceed $2
billion for the fifth consecutive year, with 2019 setting an all-time high at more than $2.5 billion.
Pretax operating earnings were in excess of $200 million for the fourth straight year. This
success came from our direct and independent agency operations, along with continued growth
in ORTIG’s commercial division.
The RFIG Run-Off business is now largely represented by mortgage guaranty coverages.
In 2019, it once again showed profitable underwriting performance, though we still expect its
profitability to decline as premiums drop in tandem with the anticipated reduction of insurance
risk in-force.
Old Republic has paid a cash dividend without interruption since 1942 (78 years), and
it has raised the annual cash dividend pay-out for each of the past 38 years. Additionally, a
special cash dividend of $1.00 per share was declared and paid in Sept. 2019.
MANAGING OLD REPUBLIC FOR THE LONG RUN
Annual
Review
2020
Annual Review
MANAGING OLD REPUBLIC FOR THE LONG RUN
Managing for the Long Run
2021
Annual Review
MANAGING FOR THE LONG RUN
|
2022 ANNUAL REVIEW
42
2022 ANNUAL REVIEW | THE MOST RECENT DECADE
2018 ★ Old Republic celebrated its 95th anniversary
in 2018. The Company reached new highs in consolidated
premiums and fees earned ($5.7 billion), net investment
income ($431.8 million), pretax operating income ($673.7
million), and net operating income ($556.4 million).
General Insurance underwriting/service profitability
rebounded. Earned premiums edged up while claim ratios
remained essentially unchanged. 2018 brought another year
of record net premiums earned and net investment income,
leading to another record in pretax operating profit.
Title Insurance premium and fees revenues rose to more
than $2 billion for the fourth consecutive year. In addition,
pretax operating earnings exceeded $200 million for the third
year in a row. Market share gains came from several places.
These included investments in both our agency and direct
revenue operations, growth in the commercial division, and
doing business the “right way” by offering exceptional service
and support to our title agents and customers. In 2018,
Standard and Poor’s raised our financial strength rating to A+:
unsurpassed by any other title insurance underwriter.
The RFIG Run-Off business returned to “normal”
in 2018. The mortgage guaranty business is expected to
generate profitable operating results through the end of
its term in 2022-2023. We foresee an economically sound
future for the operation. The CCI part of the RFIG run-off
book of business posted operating profits for the first
time since 2007. This should lead CCI operations to handle
the remaining book of insurance in-force in an efficiently
economical and potentially profitable manner through the
end of policy terms.
Old Republic’s Board of Directors approved an increase in
the cash dividend for the 37th consecutive year. The Company
has now paid a cash dividend for 77 straight years: a testament
to managing a well-capitalized business for the long run.
2017 ★ Old Republic put the lasting effects of the
Great Recession and the run-off of its financial indemnity
business behind it. This allowed us to plan for greater
outcomes for all stakeholders in the coming years.
General Insurance benefited from a rebounding economy
and the repairs we made to our under-writing protocols in
prior years. Record net premiums earned and net investment
income led to a new high in pretax operating profit. We
worked to further improve our underwriting and total
operating margins.
Title Insurance posted its third consecutive years of
$2+ billion in revenue and set a new record. Low mortgage
interest rates and active housing and commercial markets
led to higher premiums and fees. In addition, both our direct
and independent agency operations contributed to growth.
Consumer confidence and positive economic conditions
support a continued healthy environment.
RFIG’s mortgage guaranty companies were freed from
regulatory supervision near year-end 2017. This business
is likely to remain profitable through the end of its term,
and we are planning an economically sound future for the
operation. The CCI part of the RFIG run-off book of business
settled long-standing litigation with a major bank and its
acquired mortgage banking subsidiary. This should lead CCI
operations to handle the remaining book of insurance in-force
in an efficiently economical and potentially profitable manner
through the end of policy terms.
New highs were reached in pretax operating income
from actively managed businesses ($587.3 million), total
net income ($560.5 million), and total capitalization ($6.18
billion). For the 76th consecutive year, we returned value
to shareholders by paying a regular cash dividend which
was increased for the 36th consecutive year. In addition,
a special cash dividend of $1.00 per share was declared in
December 2017.
2016 ★ Old Republic reported much higher operating
income for the year. Consolidated net income, however, grew
at a slower pace as realized investment gains were lower
than 2015 levels.
General Insurance pretax operating earnings were
marked by reasonably stable underwriting and investment
income contributions. Earned premiums were basically level
with last year’s production with trends unevenly distributed
among various insurance coverages.
For the second straight year, record-setting Title
Insurance earnings were achieved due to the strong
performance in this segment’s underwriting and related
services functions. The continuation of a favorable mortgage
rate environment and generally improving housing and
commercial property markets led to higher revenues from
title premiums and fees.
RFIG’s mortgage guaranty business exhibited better
underwriting results from continued declines in reported
delinquencies and the higher rates at which reported
mortgage loan defaults are cured or otherwise resolved
without payment. Operating results for the much smaller
CCI run-off line have been particularly impacted by ongoing
litigation costs of a near-eight-year long commercial dispute.
Old Republic increased its cash dividend for the 35th
consecutive year, and has paid a cash dividend, without
interruption, for 75 years.
2015 ★ Consolidated operating earnings were
enhanced by greater General Insurance underwriting and
investment income, and record Title Insurance earnings.
Earned premium revenues rose for most general insurance
coverages. Production was spurred by new business and
continued strong renewal rates. The record-setting Title
Insurance operating results were driven by the very good
performance in this segment’s underwriting and related
services functions. Significant title premiums and fees
growth resulted from stronger housing and commercial
property transactions and this segment’s expanded market
share.
The improvement in RFIG’s mortgage guaranty business
stemmed from continued declines in reported delinquencies
and higher rates at which reported defaults are cured or
resolved without payment. The consumer credit indemnity
portion of RFIG’s run-off operations reflected a lot of
volatility and was adversely affected by continued litigation
expense provisions.
Consolidated net investment income increased benefiting
from a rising invested asset base, and the higher yields from
an increasingly greater commitment to high quality, dividend-
paying common stocks. Consolidated net income was affected
by lower realized gains from the sale of investments in 2015.
Consolidated assets reached a new high of $17.1 billion.
Cash dividends on Old Republic’s common stock rose for
the 34th consecutive year. Old Republic has now paid a cash
dividend for 74 straight years, since 1942. The steady growth
of the Company’s cash dividend payments over the decades
has been a significant factor in the total market return
provided by its common stock.
2014 ★Earnings decreased as Old Republic’s General
Insurance operating income contribution was much lower
in 2014. Greater premium revenues benefited from rate
improvements, higher policy retentions and new business
production, but were not enough to offset more costly claim
settlements and an increase in reserve levels. Title Insurance
operating income was eroded by transitory weaknesses in
housing-related markets. Premium and fee revenues declined
due to a significant drop in refinance transactions. Claim
costs were lower as claim frequency and severity continued
to abate. The continued profitability of RFIG’s mortgage
guaranty business was eclipsed by significantly higher
consumer credit indemnity claim costs. Net investment
income gained from a greater invested asset base and
the higher yields realized from an increasingly greater
commitment to high quality dividend-paying common stocks.
Consolidated assets rose to nearly $17.0 billion, while
total capitalization reached a high of $4.8 billion. The cash
dividend was raised for the 33rd consecutive year. Old
Republic has now paid a cash dividend for 73 straight years.
The steady growth of our cash dividends over decades has
been a significant part of the total market return registered
by our common stock.
2013 ★ On its 90th anniversary, Old Republic posted
a substantial operating profit after six lean and challenging
Great Recession years. The turnaround in consolidated
operating results largely reflected our run-off Mortgage
Guaranty line’s return to profitability. The line posted much
lower claim costs. This resulted from further drops in newly
reported defaults, and a rising rate at which previously
reported defaults were cured or otherwise resolved without
payment. Ongoing improvements in our Title business also
helped to boost Old Republic’s earnings. This operation has
nearly tripled in size since 2007. Title’s market share grew for
the seventh-straight year and now accounts for about 15%
of total industry volume. General Insurance also contributed,
with a moderate earnings gain.
Consolidated assets grew to over $16.5 billion. The
Board of Directors approved an increase in the cash dividend
for the 32nd consecutive year. Old Republic has now paid a
cash dividend for 72 straight years, a testament to managing
a well-capitalized business for the long run.
OLD RE PUBLIC IN TER NATIONAL CORP ORATION
Managing Old Republic For The Long Run
43
HISTORICAL AND FORWARD LOOKING STATEMENTS | 2022 ANNUAL REVIEW
HISTORICAL AND FORWARD LOOKING STATEMENTS
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. 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
particularly affected 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 investment yields and inflation rates, and periodic changes
in claim frequency and severity patterns caused by natural disasters, weather conditions, accidents, illnesses, work-
related injuries, and unanticipated external events. Title Insurance and RFIG Run-off results can be affected by similar
factors, and by changes in national and regional housing demand and values, the availability and cost of mortgage
loans, employment trends, and default rates on mortgage loans. Life and accident insurance earnings can be affected
by the levels of employment and consumer spending, changes in mortality and health trends, and alterations 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.
General Insurance, Title Insurance, Corporate & Other, and RFIG Run-off maintain customer information and rely upon
technology platforms to conduct their business. As a result, each of them and the Company are exposed to cyber
risk. Many of the Company’s operating subsidiaries maintain separate IT systems which are deemed to reduce the
enterprise-wide risks of potential cybersecurity incidents. However, given the potential magnitude of a significant
breach, the Company continually evaluates on an enterprise-wide basis its IT hardware, security infrastructure and
business practices to respond to these risks and to detect and remediate in a timely manner significant cybersecurity
incidents or business process interruptions.
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 1, Item 1A-Risk Factors, of the Company’s 2022 Form 10-K Annual Report to the
Securities and Exchange Commission, which Item is specifically included 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.
This 2022 Annual Review is published to inform policyholders, stockholders,
clients, employees, and the investment community of Old Republic’s business
operations and philosophy. More detailed financial information appears in the
Company’s Annual Report sent to shareholders of record. The contents of
this Annual Review are consistent with data in the Annual Report. Readers
of the Annual Report or Annual Review who wish to obtain Old Republic
information following the March 31, 2023 effective issuance date of these
documents, should refer to the Company’s subsequently issued reports to its
shareholders and the Securities and Exchange Commission.
Old Republic International Corporation’s Annual Report to Shareholders,
which includes its Annual Report to the Securities and Exchange Commission
(Form 10-K and Proxy Statement), can be accessed through our website,
www.oldrepublic.com, or obtained upon request to: Investor Relations, Old
Republic International Corporation, 307 North Michigan Avenue, Chicago,
Illinois 60601.
Neither the Annual Review nor the Annual Report is intended to represent
solicitations or offers to buy or sell the Corporation’s securities.
